You then want to select 0% as the Portion of the $XX mil. Again, maximizing net profit is all you care about with our strategy determined at the beginning. 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. Thank you! You and your co-managers are taking over the operation of an athletic footwear company that is in a neck-and-neck race for global market leadership, competing against rival athletic footwear companies run by other class members. While competing with the other teams in BSG, you need to make informed decisions that can create a difference and take your team ahead of all. So, should I decrease pay dividends here to $0.15? So for the last year I didnt stick to the rule that the internet price has to be 40% higher than the wholesale price. For only $35, get instant access to the Business Strategy Game Guide. With remaining the cash on hand, try to buy back stock, pay off your loans from the beginning of the game, pay back dividends, and upgrade your plants. So I doubt on his strategy. Im playing the new version of the game, and your guide has worked perfectly for the first two years! Yes, I would definitely do plant upgrade option C! But this year the shipping is too high from AP to LA so I cannot make any money from LA. And I would not build another plant, rather increase capacity in the plants that you already built. These strategies are easy to see in the real world of business. Logistics strategy as an enabler of new business models. From experience Id say tho that it is already too late to adjust to my strategy presented. It is good to expand or build on the existing plants. Even so, how can you apply the business strategy knowledge and skills in the game? However, some values, such as the Wholesale Price have decreased instead of increased. The same accounts for your Change in Annual Base Wages and Incentive Pay values. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! 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. What should I do for year 12 and 13? Paying dividends will increase your stock price and your ROE. Keep focus, year 17, we over sleep in Victory, and ignore competitors. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. 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. construction cost to be financed with debt. Our company will provide its customers provide multiple choices in footwear that will satisfy any of their footwear needs. I guess because i grew too fast last week, this weeks net profit is negative (I didnt make any adjustment yet). Net Profit must over 110 million every year to keep ROE higher than 25% or more. This way, it becomes a living guide for decision-making for the entire company. 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. Total Wholesale Marketing is 12.92 is good now, we will keep maintaining strong marketing to get higher sales volume. You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. 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. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. You can lower the costs by increasing training and upgrading facilities. 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. Do not sit on it. Important: Your Sales volume, not the production volume that includes the rejected pairs! This is the key to affect our strategy in the next five years. We are doing very well, even up and down from 1st and 2nd position but we have a strong and clear visions for future strategy to lead the company at top of market and meet Investor Expectations. In the first year (Year 11), you only have two factories, and you need to distribute to four markets. This way, you get a clue on the actual standing of the company entering into year 11. The Strategic Role of Warehouse Management in the Supply Chain In todays education system, developing students with a high level of competencies and capabilities is a challenging task for every instructor. On initial input of the change there was a big boost to my numbers, but when I left the page the game suddenly dropped my numbers below my original ones. So, play around and find the best combination for your given S/Q rating that yields the highest net profit. Do not worry about the Plant Capacity / Upgrades page. We will keep the largest market shares in Internet Sales. After you have done this, you might notice that your Your Estimate of the Ind. Here, you have the opportunity to sell your existing capacity. Concerning changing others values, I recommend reading my initial post where I have explained everything in detail. So, after expansion of new factory in LA with 120 million, we reduce the number of shares to increase EPS. However, it will also decrease your ending cash. Learn how your comment data is processed. Right now I am doing the second year decision, Im doing star 8 and 100 models, did 7 stars and 100 models in first round and the result was not very good. 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. my advice would be to read my guide and follow the steps. How can you apply the ancient wise in the Arts of War of Sun Tzu? G-Brand will continue to make all efforts to use good materials which environment friendly. I personally would not bid higher than $5,000 $6,000. Helped me get to the second place! Hence, try to keep your internet price at least 40% higher than your wholesale price. Please delete one if there is an extra comment. Okay! While +2% might now always be spot on, I have made the best experience with it so far. Like I already said in my previous post, the most important thing is to toggle each and every value and pay close attention to your net profits. Besides, you can lower the cost per pair of shoes. 11/4/2016 1/2 I . Just plug in numbers and note down your net profit values. Students use the BSG to cultivate managerial skills for decision-making purposes. Quiz 2 Chapters 1 an 2.docx. Entering year 15 I am still doing 8 star but the demand forecast is super low. Does it affect any other factors? How can the company jump over other competitors? 7.39 to 12.81 over last three years, much higher than Investor Expectation of 4.3. Most players play hard from the first round, thus increasing S/Q, the number of models, reduce the price, putting for advertisement three times higher than average, and bidding for celebrities. No worries, it will be easier after the first few years. 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. To this point, you are set to dominate your industry and win the Business Strategy game. My group and I are also playing the new version of the game and were little bit lost. Keep control of Private Label market with upgraded factories that can produce most of quality at lower cost than any competitors. 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. Whenever you change and sharpen any decisions, you should keep track of your net profits. However, there are still some other voluntary decision that will prepare you for future decisions. I will walk you through each page chronologically. Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. This site uses Akismet to reduce spam. Business Strategy Game (BSG) Helpful Tips!!! - YouTube Unused capacity kills your numbers and profits! You can win the game if you follow the High quality and the Low number of models. According to the change, you can estimate the next years average industry internet price and plug it in. so idk what i may have done LOL, Hello, may I ask my is not that great at the moment and we are onto year 13 which is like 2nd year maybe of the game and i try my best to like follow your tips though not as fully cause I still dont understand much especially the calculation one a bit confusing cause I am bad at that, so far I have 7 s/q rating though I am unsure should I do lower models or not cause I am afraid it might not be enough for profit and all because most I see at average of rating and high models , I was wondering what can I do to make it better? 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. Repurchasing stock will boost both your EPS and ROE. 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. Again, trying out different combinations and optimizing net profits is key for these values. The Business Strategy Game: A Reflection Check the Competitive Intelligent Report. if you have left over inventory, you should either work on your numbers as I described in my post or put the left-over shoes into private-label. 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. A warehouse management system (WMS) is a software solution that aims to simplify the complexity of managing a warehouse. An ingenious business strategy for your team will help your team members to appreciate the significance of the strategy, identify the kinds of trade-offs needed, and demonstrating that with limited resources, not every project can be pursued. You are now all set to dominate your industry and win the BSG! Our G-Brand Company will continue to pursue its existing High Quality Average Price Large Collection strategy; However, to increase its market share and thereby increase revenue, our company, focus on Net Profit to increase ROE. The world economic trends are changing fast creating more necessities for the students to develop the ability to be flexible, expert, and adaptable. I would like to ask about the Pay Dividends. My stupidness did not know that I should not pay dividends while Im in LOAN mode. You will need those numbers later on. Like I said before, you should be building capacity, yes. The most crucial thing is the find out what prices your competitors have. 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. What is Warehouse Management? Benefits, Processes, & Strategies We will work tirelessly to ensure that our shoes are within reach of purchasing and get the high quality shoes with very large selection. While your regional sales volume for the internet segment is a good estimate, the estimates for the wholesale segments are not. View Adopters Arthur A. Thompson, Jr. John R. Miller Professor Emeritus Even more important is, to stick to it! If it increases your profits, leave it at Yes, otherwise set it to No. In the upper right box, you can spend your excessive cash. BSG Guide - How to Win the Business Strategy Game And should I do stock repurchase this year? We can keep and sell NA after year 16 if we have good and large LA factory. I like to have around $8-10 million ending cash available after all my decisions are made. Thanks a lot! 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? Hence, it should be your goal to price your shoes lower than everyone else and take their market share so that other companies will not sell any private-label shoe in this region. In the above example, we ship from NA factories to NA and LA. Moreover, the key is a rational debate with a compromise for everyone to understand why the decision is taken and commit to make it a success. BSG Report, Part 3 I let the rest remain the same in the entry. I would like to ask you about the Dividends. Let us take a look at the Plant Capacity / Upgrades page first. Never give up, we can always find a good way to improve a company, despite its position in a market. If your results in the first year are not too good, its not a big deal. It will be, trust me. Besides, your team of managers will develop the critical thinking they need to move beyond the functional management of the company as a whole. Which wholesale are you referring to? Best-Strategy Invitational High-performing companies worldwide face off in a 2-week competition hosted 3 times a year by the BSG author team. 5 Ways Strategic Warehousing Can Increase Profits 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. You basically determine and run the market. Hi Dennis. Learn tips & tricks, from a BSG Grand Master! 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. However, keep track of profit since you are cutting from the profit for PR products. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. Were at the middle of the pack and wanted the best strategy to move up the ranks. at least one of the two teams has an S/Q of 8* and low prices so far (yes, they are in first place for now) what do you think we should do?. You will get the hang of it after the first few decision rounds as it is always the same procedure. From this highest whole dollar amount, I plug in every possible value around it and find the price that yields the highest net profit. If not, see what positive percentage yields the highest profit for you. The BSG generates the complete outcome of each years operations roughly 20 minutes after each decision made around the deadline. If you add capacity it will show you the price. However, try your best. Hi, Im glad to hear that it helped! We also ship from AP to EA, AP and some to LA. 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 Hi, thanks for the great strategy! What are the core competitive advantages? 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. in years 13-14-15. For only $35, get instant access to the Business Strategy Game Guide. Higher Net Profit is a key to win the BSG Online Game. Q&A. After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. sales volume estimate. But you need to identify your strategy first in the following three aspects: How can you identify your strategy? It is important to toggle your values and find the best combination to maximize your net profit. Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. Do that by answering the following questions? The S/Q upgrade is the best option if you choose high-quality strategies, while setup cost reduction is ideal if you decide to have several models. I have encountered two successful strategies so far: medium-quality shoes (S/Q rating of 5-6 stars) paired with high number of models (250-350 models) and high-quality shoes (S/Q rating of 8-10 stars) paired with low number of models (50 models). If this is still not enough, add the missing shoes to the other plants Branded Pairs to be Manufactured in Year XX number. How can the company lead the market in 10 years? BSG Guide - How to Win the Business Strategy Game.pdf. Does it hurt any other factors? And you said I should only add capacity onto existing ones instead of building a new one in LA right? im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. Branded Distribution As the CEO, you need the support of the other company managers. Otherwise you will not sell any shoe either. Exactly. In the last section of the Plant Capacity / Upgrades decision page, you can construct a new plant in either of the two regions where you do not have a plant yet or you can build additional capacity to your N.A. When contracting a celebrity, your advertising efforts in the Sales Forecast section should not be low. Currently, were selling 150 models. G-Brand will invest more in the Use of "Green" Footwear Materials, Energy Efficiency Initiatives and Charitable Contributions to build a bigger Image of societal Brands. like should I just follow your tips through all because I kind of get on a bad start. By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. On this screen, you can handle your financial decisions for your company. With respect to our employees well-being, our G-Brand Company intends is to continue its practices of investing in employee-development and utilize a compensation model that encourages our employees to work hard, while simultaneously striving to be more productive and efficient. Fin. At the lower half of the page, you also determine how many branded pairs you want to manufacture in each region you have a plant. Results in a one-time productivity increase of 100 pairs per year at each facility. Set Models Offered to 50 and Free Shipping to No. Thats a relief. However, if you experience difficulty winning your game, type Help with My BSG. You will get professional from BSG game help. Select +2% for the Percent Change in Competitive Impact of All Other Factors from Previous Year. Therefore, the first set of decisions your team of managers makes is for year 11. Recommendations for Improving the Image Rating in The Business Strategy Game BSG Comprehensive Exam (Fall 2019) Flashcards | Quizlet I am on my second year and I have negative income right now, any tips on how to get in the positive? After you have successfully plugged in your branded pairs that need to be manufactured for both plants, click the Save Decisions button and move on to the Branded Distribution page. However, you can successfully apply most of the following tips to either strategy. I dont understand why it did this as this capacity was unused and there was upside to having it as my production was max out for the demand. The ROE in Year 18 is good back to 24,3% compared with Investor Expectation of 15%. Hey!! This is why building additional capacity is so important. While those two values do not change your S/Q rating, they will change your net profits. 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 sometimes works. 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. Hi! Sorry for the late reply.. Been starting my new job and working a lot lately. Before you even start plugging in any numbers, it is important that you decide for a strategy to pursue for the game. Then, just like you did before, plug in different values for your internet price and see, which price yields the highest net profit. Should I continue expanding NA or AP and by how much? Can GameStop Win (In The Long-Term)? Lessons For Digital - Forbes Thank you so much for your reply! For this reason, you and your team members need to start the BSG by spending more time analyzing the results of each year to figure out the best effective strategies to lay for the next round of the game. You can ignore the Internet Marketing and Wholesale Marketing pages because they will just reflect your internet and wholesale decisions that you already plugged in on the previous pages. It depends on how much private label you sell and whether you want and can sell more depending on the market, whether its satisfied or not. Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. This decision page is mainly a waste of money and we will not spend a lot of time with this page. Hence, find the combination that gives you the highest profit. Okay. This way, you will save more money while getting a high S/Q. Should you have excess capacity, consider this market and manufacture at full capacity. Winning the BSG game is essential. Be careful: Sometimes, especially for advertising, numbers that are way off (for example $100 and $8,000) can yield about the same net profit with only a little difference. This is quite good at the year 19 and later. Thats one of the things you should never do because you can always use capacity. This is your new, more precise regional wholesale sales volume. However, my net profit is still negative even after i have adjusted the private-label. This can be a very tricky decision and you need to analyze your competitors prices. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Moreover, consider the best margin for this market and ensure you can have the contract. Examples, Strategy and Warehousing - Supply Chain Brief In my opinion, I believe the other teams are thinking on exploit the private label. Ideally, you can cut your employees wages and will increase profit. How can the company overcome tough competitors who seem to know most of the things you know? Do this for all four regions. However, do not forget to calculate your possible additional expenses for your celebrities. 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. Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. On the other hand, other players gamble for the private market with a high price, a large volume to lead. While they might boost your image rating, they will decrease your profit. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. I cant seem to find it. Sometimes thats cutting expenses, sometimes thats increasing expenses (even though it might not make sense at first). This requires an overhaul of teaching practices and learning techniques that cater to the changing economic trends. Should you win, it would mean your tips are more favorable, and your competitors may learn from you. My direct competitor is now selling 8 stars with more than 400 models in wholesale so I think i will be at a even better position selling 50 models. You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales.
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