However, if you experience difficulty winning your game, type Help with My BSG. You will get professional from BSG game help. With the Business Strategy Game, teams of students run an athletic footwear company in head-to-head competition against companies run by other class members.Company co-managers must make decisions relating to plant operations, distribution and warehouse operations, work force compensation, online sales at the company's web site, sales and marketing, and finance. The decision is due tonight I am so nervous but the performance score so far looks good. Several colleges and universities use the Business Strategy Game in teaching and learning strategic management at their schools of Business Management. We give you. Wow, you are done! This requires an overhaul of teaching practices and learning techniques that cater to the changing economic trends. Often provided as part of an integrated enterprise resource planning (ERP) suite of business applications, a WMS can support and help to optimize every aspect of warehouse management. We always provide best S/Q with reasonable price just 15% higher than Industry Average, with Largest collection 500 models and also largest networks of retailers worldwide. Do not worry about the Plant Capacity / Upgrades page. Plant Capacity / Upgrades. Hi Fin, Thanks for the detail post and the screen shots. The ROE in Year 18 is good back to 24,3% compared with Investor Expectation of 15%. That being said, when you go with the strategy explained in my post, you will have maximized profits. We need to adjust the number of productions to optimal these decisions. This is probably the most important decision entry page in the game and you will be spending most of your time here. In the first year (Year 11), you only have two factories, and you need to distribute to four markets. Go up and down each decision a couple of times to get the optimal profits. It sometimes works. Is it too late to reduce that to 50 as you suggested in your recommendation? Once you get the Main Menu for running the company, print a copy of the Year 10 company reports, a summary of the footwear industry report for year 10, and competitive intelligence reports. So your costs will be relatively low as well and the private label will be a very important factor of yours. If you find capacity available for purchase, I would always directly purchase it. Hello, thanks for the great strategy, it is working (1st place) ! . Do not price your shoes too low, so that you will not make any profits with your sales. And should I do stock repurchase this year? You can also win if you settle for Mid quality and a High number of models. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. Hence, keep track of the industrys internet price and how it changes. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. Through the games, we learn more in-depth knowledge and skills in making decision in big business fields, from Corporate Social Responsibility, to Sales Forecast, which is very important. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. my advice would be to read my guide and follow the steps. This is because your competitors are adjusting and trying to find their strategy. But this year I have a lot of cash on hand, I upgraded my plant, should I also build the LA plant although I dont need that much capacity at the moment? I will just adjust it first and see what happens, thanks a lot:). By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. With our strategy, you might want to think about getting Option A as well. 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. I like to have around $8-10 million ending cash available after all my decisions are made. It can be very beneficial for you. Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. We need to keep track of cost in more details in next years. Working Conditions Improved Ventilation, Lighting, and Safety Continue Involves one-time capital investment of $3.0 million and increased administrative costs of $500k annualy per facility. Keep in mind to check your profits and ensure they get as high as possible. Our company will provide its customers provide multiple choices in footwear that will satisfy any of their footwear needs. We can keep and sell NA after year 16 if we have good and large LA factory. Hi! Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. Now, I am worried about the future rounds. 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. To win BSG game simulation, you need to follow some ingenious tips that are essential business strategy game tips that your team should focus on: Business Strategy Game simulation isnt easy to win, but if you work with these ingenious tips, you can make profits and win your BSG game without a hassle. Try out different combinations that keep you at 8* and the highest possible net profit. But strategy wise I always sticked to my maximum net profit strategy which you can do no matter your competitors strategy. So do you mean although we sell exactly same shoes it does not matter even my rivals price is lower than mine so long as i can maximize my profit? Five ways that warehouse strategy can benefit your business include: Inventory Management Accuracy Price Stabilizing Tools Technology for Packing & Processing Locations that Meet Your Needs Outsourcing to Fulfillment Services Sounds good, congrats! Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. If you reach the last decision round, comment down below and I will give you some hints on how to boost your net profits for the last year and gain some extra points. More effective. Check the Competitive Intelligent Report. We aim to increase market share through factories in three continents, NA, AP and LA. Should I decrease the pay dividends and do stock repurchase in Y13? Then we can analyze business results to identify new marketing, production strategy. We will keep Expansion of Internet Sales, keep low-cost-strategy with Highest Values that customers can get Online. We do not leave it in bank or safe. Im play a new version of BSG ,we have already completed year 17 and now our team have a problem with struck in the middle stage that cost cant decrease more and this year other company in the industry have a high SQ star and low cost (price war) that we cant fight them because our cost is too high. Do not focus too much on the market share but focus more on profits. We will keep the largest market shares in Internet Sales. Should I continue expanding NA or AP and by how much? Do the same for your E-A and A-P volumes and plug them into the A-P manufacturing slot. and L.A. volumes and finally plug them into the NA manufacturing slot. With that, you can do the same over and over again, for every decision round. You then want to select 0% as the Portion of the $XX mil. In the Private-Label Production field, use all your remaining available capacity, even overtime. On this decision page, you can bid on celebrities. Increase from 3 to 6 activities to support society and environment. The most crucial thing is the find out what prices your competitors have. In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. I personally would not bid higher than $5,000 $6,000. Also, I am concerned about the prices strategy; the group who is in the first place has the plan of highest S/Q rating (7) with 200 models and lowest prices. Download the iOS So if one of your markets is not satisfied or prices are high, I would built capacity to attack this market and sell a lot of shoes for a cheap price, to guarantee you the lowest price so that you sell all your offered shoes. You should slightly increase your dividends year by year. Does it hurt any other factors? Business Strategy Game - Week 5 (Year 14) Commissar BRO 9.95K subscribers 10K views 6 years ago And so we creep into Year 14. Hi Yvonne. You are now done with all your decisions for the Corporate Citizenship decision page and should hit the Save Decisions button on the upper right-hand corner. Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. Furthermore, I spent all my cash on hand for dividends and stock repurchase to increase my ROE and EPS as much as possible. Hi. Furthermore, G-Brand will continue focus on what we are top leading like S/Q, models, strong advertising, retailer support, celebrities. After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. I started with paying $0.05 dividends and increased it by $0.05 every year. With increased competition, prices tend to decrease. We need to keep continue going up to expand and to create new markets. The private-label sector is something you do not want to miss out on, especially with our high quality, low models strategy. Always check the market snapshot and the private-label segment. Exactly. Again, this can be trial and error for a couple of decisions but you should get a feeling for what multiplier is best for your company. Since youre only in the second year, I would honestly decrease your models to 50. We need to adjust the number of productions to optimal these decisions. 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. Do this for all four regions. Yeah I will hold on to that for now. Okay. These are the three most crucial decisions to make in the game. I usually have the highest net profit when setting Enhanced Styling / Features to $50k, TQM / Six Sigma Quality Program at around $0.70, and Best Practices Training at $5,000. $50.66 but $50.67 gives you higher profits, go for the higher prices. I hope that helps and good luck! How can the company overcome tough competitors who seem to know most of the things you know? Entering year 15 I am still doing 8 star but the demand forecast is super low. If you demand for branded production is met, put everything else into private label to make sure you dont have unused capacity. We can check that before making decisions. In the later years, when the cost in NA is high, we have built a new factory in LA, we can ship from LA to NA (eg. If you found your highest value for the best net profit, move on to the next value and do the same. I recommend having a pen and piece of paper next to you so you can write down your net profit and compare when plugging in different values. I did not stock issues or issue purchase in the those years. This can make Net profit quite simple, if we produce 12.000.000 pair of shoes, we will get about 144 million Net Profit. After you have done this, play around with the values for Wholesale Price, Advertising Budget, Rebate Offer, and Retailer Support (increase/decrease by 100s only, as everything else makes no sense). I only ever paid attention to my profits and I never ever sold capacity. So, multiply your sales volume for the wholesale segment for each region by 1.2. Try to move away from your competitors if they are applying the same strategy. You will need those numbers later on. Any advice? The styles or features can be at 50, while the TQM can be set at 2.50. It almost worked TOO WELL. Should you consider selling a factory, dont upgrade it because you will lose that investment. Cost of pair sold, Ware house expenses, Marketing expenses, and Administrative expenses, all the 4 key contribute to Operation Cost. I was wondering how much more additional capacity that I should purchase after Ive bought the first 1000 for NA. Besides, you can lower the cost per pair of shoes. What should I do in this case? The Business Strategy Game (BSG) comes in handy as a realistic representation of the actual practices in a virtual setup. Like I explained in my blog post, do everything that is necessary to increase and maximize your net profits. But if i decrease my model, I dont think I will be competitive enough to compete with him if he stays with his strategy, what do you think? Write down each regions reject rates and add them up to the regions estimates sales volume. (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. And I would not build another plant, rather increase capacity in the plants that you already built. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. We have good Cash in hand over 100 million each years. Net Revenue of 52.76, but cost of 25.43; 3.16 for warehouse; 10.50 for marketing; 1.16 for Admin, make the Net profit of 12.53. Regardless of what the other competitors do in Year 11, your focus should be winning. I cant seem to find it. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. We need to figure out most effective ways to increase ROE by increasing Net Profit but keep Total Equity low, not expanding faster than increase of Net Profit. How To Win BSG Using the Best-Cost Strategy The best-cost strategy means offering customers a product with the highest attributes of quality and style at a lower price thus allowing them to gain the best value for their money. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. Do you have any suggestions? However, some values, such as the Wholesale Price have decreased instead of increased. Hi. Keep focus, year 17, we over sleep in Victory, and ignore competitors. This is a good lesson in class that can be valuable in life. It is definitely around 1.2 though and I recommend starting off with this value. I mainly looked at what they were doing in the private label sector. Copyright 2023 | Powered by Top Academic Writers, Automated page speed optimizations for fast site performance, Leadership and Management Assignment Help. How did your 2nd decision go? I put $1.00 pay dividends, which turned out 20,000k in total. From experience Id say tho that it is already too late to adjust to my strategy presented. 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. In Year 18, we have increased ROE to 26.3% vs. IE of 15%. However, if you loose and the share price will go down. and A-P plant, focus on your Total Branded Production Needed to Achieve Year XX Sales Forecast section on the lower half of the page. The company operations run parallel to those of actual athletic footwear companies. I started with 250 models and S/Q rating of 5. Do that by answering the following questions? Should you win, it would mean your tips are more favorable, and your competitors may learn from you. Thank you so much for your reply! Hello, Repurchasing stock will boost both your EPS and ROE. Hence, make sure to plug in every possible value to reach the highest net profit possible. Let us take a look at the Plant Capacity / Upgrades page first. With our strategy in mind, I would recommend addition capacity to already existing plants rather than constructing a plant in a new region. The Business Strategy Game provides your team with the opportunity to discuss the real business issues while working together to assess the options and make decisions linked to the overall company strategy. The Business Strategy Game is an online exercise where class members are divided into teams and assigned the task of running an athletic footwear company in head-to-head competition against companies managed by other class members. 1. However, after 3-4 years, your competitors will settle and changes will be more predictable. We are reaching the last decision round and would like some hints on how to boost net profits for the last year and gain some extra points. I would always encourage you to bid on available celebrities. And Im so thankful for your post!!!!!!!! Strategies, decision screens, reports and tests. When evaluating the 3PL provider in charge of your pharmaceutical distribution warehouse, safety is the name of the game. Id also like to point out that it appears the developers threw out NAFTA in the new version, so tariffs hurt pretty bad in Latin America. We get out of Year 17 with bad results in ROE because we expand too fast in that year. And you can basically never have enough capacity for private label. We will keep going with this rate in next five years with expansion strategy, based on large volume, higher S/Q and reasonable Prices. 14. 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. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. It is best to build only as much capacity as you can afford without taking any loans. However, I would recommend not taking out any loan if possible. However, if you want to do it more precisely, note down each industrys percentage change over the years and use this number instead of the +2%. This is the case of iPhone or any other high end products are bringing values to customers such as cars and fashions. We will adjust collection online lower to 400 compared with 500 in stores. Any thoughts? No matter the location, our goal is to satisfy our customers foot fashion desires and provide them with the best style and quality in footwear. We will differentiate prices to allow our shoes to be reasonable priced to the average personal. I suggest to go for maximum profits. or A-P plant.
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