If numbers do not add up correctly and your total pairs shipped do not match your total pairs available, go back to the Branded Distribution page and adjust your numbers accordingly. How can the company lead the market in 10 years? Your numbers might be a little bit off due to the reject rates. G-Brand will continue to make all efforts to use good materials which environment friendly. However, you must tie your values and settle for the best combination to optimize your net profit. Economic Impact of Hurricane Harvey and Hurricane Irma, Temporary Oil Price Changes Hold Back Consumer Spending. construction cost to be financed with debt. This can be a very tricky decision and you need to analyze your competitors prices. So for the last year I didnt stick to the rule that the internet price has to be 40% higher than the wholesale price. When doing so, you have to plug in numbers for the assumptions section in the new window. Hi Lee, To do so, first plug in your N.A. For this blog post, I will concentrate on the high-quality + low model strategy. My group and I are about to complete year 17 for the game. It can also be crippling if leaders . Profit is crucial in the BSG game. I prioritize building additional capacity and purchasing plant upgrades. Set Models Offered to 50 and Free Shipping to No. And Im so thankful for your post!!!!!!!! Hello. Key pharmaceutical distribution warehouse questions to ask a 3PL. It was set Pay Dividends $1.00, which turned out 20,000k in total. Advantage of this is, that you dont have to pay too much attention to your competitors. While those two values do not change your S/Q rating, they will change your net profits. Look at the demand for each market, then divide each plant supply for each regional market. However, my net profit is still negative even after i have adjusted the private-label. As such, your views and analysis of the information in the latest Company Reports, in Footwear Industry Report, and the Competitive Intelligence Reports will serve as the basis for agreeing upon any strategy changes or making a revised set of decisions for the following year. If you tweak those numbers, your demand will adjust accordingly. How can the company overcome tough competitors who seem to know most of the things you know? If Im wrong, Ill post another comment. 3/29/2021 BSG Decisions & Reports Projected Year 12 Performance Scoring Measures EPS (earnings per . I guess because i grew too fast last week, this weeks net profit is negative (I didnt make any adjustment yet). Exactly. Its not too late to do that yet. Sounds good, congrats! Branded Distribution Build new factory in LA and upgrade to C and one more, may be D. Keep NA and LA for controlling Private Label, this year will also requires high S/Q so we have good advantages. For only $35, get instant access to the Business Strategy Game Guide. Even though this game is said to be a business simulation, get rid of the thought that all decisions have to make sense and be logical. In the first years, the estimate of the industry average might be a little off the +2%. As already mentioned earlier, not every decision has to make sense. Hi Dennis. PS: I do the 5-year-loan 12,000k in Y11 (7% interest); In year 12, I paid #1 Long-Term (early payment) 12k at 8.2% AND borrow 70,000k 5-year-loan at 4.5%. I always went with 500 every second year, but it depends on your market and competitors. Paying dividends will increase your stock price and your ROE. More than two groups following the same strategy suffer the same difficulties since they create direct competition among their target market. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. Each decision period in the BSG represents a year, and the company you will run began its operations 10 years ago. However, do not price your shoes too high, so that your competitors have a lower price than you and will sell their shoes first. This is the key to affect our strategy in the next five years. Keeping track of the closest competitor you would like to get ahead of, check their price, S/Q, and other things like celebrities, advertising, plant capacities, and bidding price. I would recommend purchasing the upgrade for both of your plants within the first four years. is it because I need to add capacity? G-Brand will continue to build on its existing strategy (Globa Differentiation Strategy) of attempting to gain a competitive advantage primarily by differentiating the Value and Quality for Price, customers pays for Real High Quality Value and Fashionable athletic shoes with much higher Quality what our competitors would charge for similar products. I have experienced different behavior with bidding on celebrities. (0 for both stock issues and stock repurchase). After clicking on the green Go to Decisions/Reports-button in the corporate lobby, you can see your profits in the lower left-hand corner. If you have more cash available, go ahead and spend it for either one of the other options. You almost can never have enough capacity because what you dont sell in branded, you can sell in private label and dumb prices there and take away your competitors market share. This is your new, more precise regional wholesale sales volume. Yes, despite your competitors building capacity as well, I recommend increasing capacity in a reasonable amount. We can check that before making decisions. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. Try out different combinations that keep you at 8* and the highest possible net profit. The demand depends on your retails, price and quality. While this was driven . Your team will experience the challenge of coming up with a successful strategy, especially when frequently faced with changing competitive business environment. Regardless of what the other competitors do in Year 11, your focus should be winning. This is probably the most important decision entry page in the game and you will be spending most of your time here. Especially with our high quality and low models strategy, this will be very beneficial and will safe you some money. If not, I dont see the need to purchase equipment in order to make more shoes until the demand begins to encroach upon my shoe making capacity. This can get confusing at the beginning so here is a table to show you the process. Hi there! Warehouse management plays a strategic role in the supply chain by enabling inventory distribution, sorting, or cross-docking processes that strive to meet the growing demand of the market. We will now look at all the decisions you have to make to actually play the game and be successful with your strategy. Hence, find the combination that gives you the highest profit. The Strategy Business Game learned all aspects such as production, distribution, sales forecasting, finance, marketing, celebrity endorsements, private label operations, corporate . This means, you have a channel conflict, meaning that your Retail Outlets number will decrease in the next year and less retailers are willing to sell your shoes. Company operations parallel those of actual athletic footwear companies. If I have further questions do you mind I ask you for help? If it increases your profits, leave it at Yes, otherwise set it to No. The company that offers the lowest price will sell all its supply first, followed by the company with the second lowest price offered, and so on. In order to be continue higher competitive and perform to the higher levels, there are still some areas in which the company can focus to operate better. Okay! However, the private-label market is set up the way that only a limited demand is given each year. The cost of the game varies depending on the version and the number of players, but typically ranges from $50 to $100. Keep track of total Net Profit to have enough money to build new factory, or we can always borrow to do so. As such, you can play the game frequently, any time you get it interesting. Increase from 3 to 6 activities to support society and environment. Check the Competitive Intelligent Report. Keep the price expand from Average to higher, but Maintain Highest quality of our shoe will continue to exceed the quality of shoes within offered by our competitors and which are with the same price-range. We also thank the Professor and creators of BSG Online to give us a good environment to learn, to practice with full of knowledge, competitions and emotion close to business life. 14. Set your price to whatever maximizes your profits. This decision page deals with your plants. We need to keep track of cost in more details in next years. Keep control of Private Label market with upgraded factories that can produce most of quality at lower cost than any competitors. The company operations run parallel to those of actual athletic footwear companies. Yes, its not too late yet to follow through with my tips. However, it will also decrease your ending cash. Hi, thanks for the great strategy! Please delete one if there is an extra comment. Here, you will determine the Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, Change in Annual Base Wages, Incentive Pay, and Best Practices Training. But do whatever is necessary to maximize your profits. Use the remaining 30% capacity to sell shows in private-label! Strategies, decision screens, reports and tests. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. Toward that end, it put in place responsible environmental policy that ensures more decisions for community. If you have beginning inventory from last year (you did not sell all your shoes), try and use the Inventory Clearance option in the lower half of the page. If not, see what positive percentage yields the highest profit for you. Again, trying out different combinations and optimizing net profits is key for these values. It typically keeps increasing until a certain price point and then starts to drop. However, keep in mind that your regional endorsement value should not be higher than 400 in any region. We note to see Return on Equity, so keep Total Equity lower than increase Ratio of Net Profit. In the Private-Label Production field, use all your remaining available capacity, even overtime. In my opinion, I believe the other teams are thinking on exploit the private label. On this decision page, you can bid on celebrities. Sometimes, clearing your beginning inventory at a discount will boost your profits. Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. We have two plants in year 11, and growth rate of market is about 5-7%, during 10 years from year 11 to year 20 we will need to double may be triple production capacity. Let me walk you through the various decision pages and explain you how to optimize each entry. You can still ship pairs from LA to somewhere else if needed. So for our strategy, it should be 7 stars at the beginning. 11/4/2016 1/2 I . I would like to ask you about the Dividends. If you are completely new and your projected performance box is not showing yet, you have to click the Save Decisions button on the upper right-hand corner for the projected performance box to appear. Hi You have to base it off the HIGHEST wholesale price, just to be safe Like that, all 4 regions are guaranteed to be 40% above wholesale price. Theres everything explained in detail. Leave everything else unchanged. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. These are the three most crucial decisions to make in the game. The private-label market is a very nice opportunity to gain an advantage off your competitors and take their market share. Best-Strategy Invitational High-performing companies worldwide face off in a 2-week competition hosted 3 times a year by the BSG author team. Even more important is, to stick to it! 24.51 is low, we can reduce with good factory in AP so increase the margin to much higher. Also, make decisions about the number of models, then the price. Business Strategy Game Simulation We are doing well, so Stock Price is high too, over 120, we will buy back some with extra money, cash in hand of G-Brand will be over 150 million every years. Be cautious though: Do not only look at the percentage change in net profits, but also at the total value as the total value might change sometimes but the percentage change remains the same. If you happen to end up with a large surplus of shoes the next year, lower your 1.2 multiplier a little bit to 1.18. It is not. I still think its a waste to build a plant there, unless youre selling tons of shoes (high models, mid SQ). Try and set it to Yes. However, it is not necessary and Option C is definitely more effective. However, if you experience difficulty winning your game, type Help with My BSG. You will get professional from BSG game help. Our EPS increase fast from 7.36. Tips on How to Win the Business Strategy Game (BSG) The same accounts for your Change in Annual Base Wages and Incentive Pay values. It is all about trying out all possible combinations. After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. From experience Id say tho that it is already too late to adjust to my strategy presented. Again, it is important that you keep in mind to optimize your profits. Over the next five years, G-Brand will pursue strategies that will help it improve its financial bottom line, especially ROE because the company has quite high Equity. They do their best to ensure that you get the best grades on your assignment. Yes, I would only add capacity onto existing plants and not build new plants. I would look at the Margin Over Direct Costs value at the very bottom of the page to see where it is most profitable to ship your shoes to. I cant seem to find it. We do not focus on rebate, time of delivery. From Company Operating Reports, we focused on Balance Sheets and Cash Flow, we see Total fixed Assets of 573,906; Total Liabilities of 127,335 and Total Shareholder Equity of 446,571. The most important advice in advance: it is all about PROFIT. Thank you so much for your reply! On this screen, you can handle your financial decisions for your company. This has been very useful. We even understand the very details such as marketing per pair of shoes, cost of warehouse, administration per pair of shoes, which can contribute to the total cost making the Net Profit higher or lower then decide the Business Results and overall market development. However, if you need a few points for the image, consider using the Corporate Citizenship but take note of the expenses. Another important indicator of profitability is the return on equity (ROE). Team members run the simulation company efficiently while competing successfully. After you have decided to which region to ship your shoes to, go ahead and set your Superior Materials Usage value and your Enhanced Styling / Features value. If I have cash available after doing all my decisions, I like to alternate between building additional capacity, purchasing plant upgrades, paying off loans and repurchasing stock in the following years. Furthermore, I spent all my cash on hand for dividends and stock repurchase to increase my ROE and EPS as much as possible. One time, I was able to increase my net profit by lowering TQM / Six Sigma Quality Program to $0.20 and increasing Percentage of Superior Materials to maintain my S/Q Rating. In year 18, end of the game, G Company has more than 150 million Cash in hand, so we pay old loans to get A+ Credit Rating. Moreover, you can benefit from Business strategy game help where professional BSG players have many years of experience. However, with a reasonable price. We need to look at bottom line to see Cost of Pairs available for Sales. I did not stock issues or issue purchase in the those years. Plant Capacity / Upgrades. You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales. Hi. Should you consider selling a factory, dont upgrade it because you will lose that investment. (Darius White) The business strategy was a very practical and real-world experience of what it is like to run a major corporation and the rigor it takes to increase earnings per share, return on equity, credit and image rating. You are now all set to dominate your industry and win the BSG! It is quite simple. Should you win, it would mean your tips are more favorable, and your competitors may learn from you. Even so, how can you apply the business strategy knowledge and skills in the game? We always used the 10 decision groups of Finance and Cash Flows in most careful ways to maintain high EPS, in fact we should spend more Cash in hand to buy back Share in early years. I am having trouble getting my company back into the positive ending cash after taking out a loan. Our company will provide its customers provide multiple choices in footwear that will satisfy any of their footwear needs. We also ship from AP to EA, AP and some to LA. Should I decrease the pay dividends and do stock repurchase in Y13? Warehouse and Distribution Plan Strategies It can be very beneficial for you. You can also ensure the S/Q since it is the first decision. Moreover, your strategy needs to be actively communicated to each level of management regularly. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. Students use the BSG to cultivate managerial skills for decision-making purposes. Never give up, we can always find a good way to improve a company, despite its position in a market. If you have your AP price set to e.g. 7.39 to 12.81 over last three years, much higher than Investor Expectation of 4.3. Your Delivery Time should be set to 3 weeks. I usually go ahead and plug in whole dollar amounts for the wholesale price and see how net profit changes. The company operations run parallel to those of actual athletic footwear companies.
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