Besides, you can set best practice training high, maybe at 5.000. After you have done this for both the N.A. Yeah I had that in the first weeks as well. I let the rest remain the same in the entry. Leave everything else unchanged. Again, it is important that you keep in mind to optimize your profits. For only $35, get instant access to the Business Strategy Game Guide. Hello, 1. This Branded Distribution table of decisions seem to need more time. . Increase from 3 to 6 activities to support society and environment. To do so, first plug in your N.A. Especially with our high quality and low models strategy, this will be very beneficial and will safe you some money. Hi. Should you win, it would mean your tips are more favorable, and your competitors may learn from you. I cant seem to find it. As always, do not forget to save your decisions after you are done. This means, without increasing your superior material or enhanced styling / features, you gain 1 star. This Branded Distribution table of decisions seem to need more time. You can know your strategy in several ways. We have good Cash in hand over 100 million each years. We will get ROE higher soon, and faster than other competitors. Here, you have the opportunity to sell your existing capacity. However, try your best. Winning the BSG game is essential. 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 keep the largest market shares in Internet Sales. However, if you loose and the share price will go down. In addition, you have the option to repurchase your stock. The closer your actual numbers are to your estimates, the more likely it will be that you earn bonus points from the Bulls Eye Award (be within a 5% range of the estimates). 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. 3/29/2021 BSG Decisions & Reports Projected Year 12 Performance Scoring Measures EPS (earnings per . Advantage of this is, that you dont have to pay too much attention to your competitors. Okay! In the upper left box, you have available sources of additional cash. The Business Strategy Game is a hands on learning exercise that will give The Students valuable decision-making practice and develop powers of business judgment. We will work tirelessly to ensure that our shoes are within reach of purchasing and get the high quality shoes with very large selection. I usually go ahead and plug in whole dollar amounts for the wholesale price and see how net profit changes. 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. 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. However, to be able to do so, you need available capacity. From experience Id say tho that it is already too late to adjust to my strategy presented. A window should pop up where you can select each of the four regions and change the industry average S/Q rating and competitive impact. I would still go for the 50 models and make sure to buy or build capacity so you have enough for your private label. 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. The BSG company co-managers must make decisions relating to plant operations, distribution and warehouse operations, workforce compensation, marketing, online sales at the companys website, sales, and finance. construction cost to be financed with debt. This can be a very tricky decision and you need to analyze your competitors prices. It almost worked TOO WELL. thank you for your help. While those two values do not change your S/Q rating, they will change your net profits. Ideally, you can cut your employees wages and will increase profit. How can you apply the knowledge from the textbooks? 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. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. 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. You need this capacity for the private-label market. Beat the Business Strategy Game. I did not forget it, but we will take a look at it later. We do not leave it in bank or safe. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. If you have any questions, feel free to come back and ask them. Thank you so much for your suggestion! 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? However, if you happen to use overtime at either of the two plants, plan on increasing the plants capacity in this decision round. Do not sit on it. We also regularly pay old loans to get higher Credit Rating. They have all changed by +2%, just as you plugged it in. My guide follows the rule highest net profit is key to success. I will explain soon, how to increase plant capacity and why we need the capacity for private label. More capacity also brings down your costs. I personally would not bid higher than $5,000 $6,000. Do this for all the four regions. The Business Strategy Game (BSG) comes in handy as a realistic representation of the actual practices in a virtual setup. Like I said before, you should be building capacity, yes. Thanks a lot! I cannot make any money there. The most important advice in advance: it is all about PROFIT. With our strategy, you might want to think about getting Option A as well. You then want to select 0% as the Portion of the $XX mil. We need to control this better in next five years. It is important to toggle your values and find the best combination to maximize your net profit. Go ahead and try out which combination yields the highest profits. Recommendations for Improving the Image Rating in The Business Strategy Game Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. A warehouse management system (WMS) is a software solution that aims to simplify the complexity of managing a warehouse. When doing so, you have to plug in numbers for the assumptions section in the new window. You will get the hang of it after the first few decision rounds as it is always the same procedure. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. Here, you will decide for how much your shoe is going to sell. However, after 3-4 years, your competitors will settle and changes will be more predictable. In the above example, we ship from NA factories to NA and LA. I followed your recommendations, and I have a good rank. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. I now have another question about capacity. We get out of Year 17 with bad results in ROE because we expand too fast in that year. In Year 18, we have increased ROE to 26.3% vs. IE of 15%. However, if done right, it is worth the time as it will yield the maximum profit possible and success in your industry. Students use the BSG to cultivate managerial skills for decision-making purposes. G-Brand has been performing for many years Higher than Investors Expectation. My group and I are about to complete year 17 for the game. Sometimes, clearing your beginning inventory at a discount will boost your profits. Hi, youre welcome. Another important indicator of profitability is the return on equity (ROE). Decades of experience in warehousing and distribution can be an incredible advantage. Find ways to break the inertia. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. How can the company jump over other competitors? However, keep in mind that your regional endorsement value should not be higher than 400 in any region. This can get confusing at the beginning so here is a table to show you the process. Similar to the branded production, try out the different values to see which combination will give you the lowest Average Production Cost value for your plant and hence, the highest profits. After you have done this, you repeat the same procedure for Europe-Africa and Asia-Pacific with the A-P plant because it is cheapest to ship shoes from A-P to E-A. You can win the game if you follow the High quality and the Low number of models. Concerning changing others values, I recommend reading my initial post where I have explained everything in detail. You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. If you are looking for your teams strategy to be a success, then creation is the first step. Although we are still ranked 8th in the world and 1st in the. It can also be crippling if leaders . Even so, how can you apply the business strategy knowledge and skills in the game? Also, consider workforce diversity and ethics training. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Okay. However, you can successfully apply most of the following tips to either strategy. So I would recommend you to decrease your models to 50 and remain at 8* for most of the time, if not even for all the remaining game. 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. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! In this section, you can upgrade your plants. Theres everything explained in detail. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. Let me walk you through the various decision pages and explain you how to optimize each entry. (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. So I doubt on his strategy. sales volume estimate. Is there anyway to increase the demand for my shoes in the internet/wholesale markets? I would like to ask you about the Dividends. It typically keeps increasing until a certain price point and then starts to drop. Try out different combinations that keep you at 8* and the highest possible net profit. And he also purchase 4000 capacity in the first year but no advertising expenses. Any advice? Keep track of total Net Profit to have enough money to build new factory, or we can always borrow to do so. 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. You possible might decrease your net profits with this, but it is definitely worth it and will pay off in the long-run. I never really watched my EPS or credit rating (ofc credit rating should be a B at least). 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. This decision page is mainly a waste of money and we will not spend a lot of time with this page. So for the last year I didnt stick to the rule that the internet price has to be 40% higher than the wholesale price. The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. For this blog post, I will concentrate on the high-quality + low model strategy. From this highest whole dollar amount, I plug in every possible value around it and find the price that yields the highest net profit. Strategies, decision screens, reports and tests. I will just adjust it first and see what happens, thanks a lot:). Best-Strategy Invitational High-performing companies worldwide face off in a 2-week competition hosted 3 times a year by the BSG author team. Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. Business Strategy Game is an online business simulation game where class members are grouped into teams and assigned the task of running an athletic footwear company in head-to-head competition against businesses managed by groups formed by other class members. If you found your highest value for the best net profit, move on to the next value and do the same. Please delete one if there is an extra comment. Market share is not crucial for your success in the BSG, but profit is. Download the iOS At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. From Year 19, if any, we have over 100 million cash in hand and Net Profit every year, it will be better financial status for us to expand or invest in upgrading new factories, or even produce at higher stars 8, 9 or 10 stars. So, after expansion of new factory in LA with 120 million, we reduce the number of shares to increase EPS. Thank you! 14. Definitely helps! $50.66 but $50.67 gives you higher profits, go for the higher prices. This essay was written by a fellow student. So, should I decrease pay dividends here to $0.15? By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. Higher Net Profit is a key to win the BSG Online Game. 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. Hence, try to keep your internet price at least 40% higher than your wholesale price. 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). Here is a chart again tho show you the process: If your regular production capacity is not sufficient, use overtime. When you found the best combination to produce your shoes at the lowest cost possible while meeting the S/Q rating requirement, move to the Private-Label Bids section. The private-label market is a very nice opportunity to gain an advantage off your competitors and take their market share. I personally find it easier to pursue and had more success with it in the past. Start off with the values that you know for sure: For the high quality, low models strategy, I recommend starting off with a S/Q rating of 7 stars and 50 models available. The demand depends on your retails, price and quality. Sometimes thats cutting expenses, sometimes thats increasing expenses (even though it might not make sense at first). After you have found the right price, click the Save Decisions button. I would then adjust the Percentage of Superior Materials to whatever is needed to match my S/Q Rating with the value plugged in on the Sales Forecast page. If you find capacity available for purchase, I would always directly purchase it. On this decision page, you can bid on celebrities. Entering year 15 I am still doing 8 star but the demand forecast is super low. Hence, you will only focus on the two following decisions that are worth their money as they increase your image rating the most. I will walk you through each page chronologically. You can also ensure the S/Q since it is the first decision. On the other hand, other players gamble for the private market with a high price, a large volume to lead. After you have plugged in your numbers for both plants and your Branded Pairs Available for Shipment matches your Total Branded Pairs Shipped from each Plant, go ahead, click the Save Decisions button, and move to the Private-Label Operations page. The issues depend on cost of production. While your regional sales volume for the internet segment is a good estimate, the estimates for the wholesale segments are not. 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. Thank you so much for the good recommendations. We keep the Mission which we built from last 8 years. you should repurchase stock whenever you can. If it is 0%, that is fine as well, do not worry about it. Find out how much you want to bid for each celebrity. In the first years, the estimate of the industry average might be a little off the +2%. Let me know if you have any more questions. The Strategy Business Game learned all aspects such as production, distribution, sales forecasting, finance, marketing, celebrity endorsements, private label operations, corporate . This has been very useful. . But it is definitely worth it. Texas A&M University, Corpus Christi. Looking at Company Operating Report, Marketing and Admin, Private Label, we also need to focus on reading and understanding Business and Financial Statement. The styles or features can be at 50, while the TQM can be set at 2.50. But the plant page did say not recommend to build the plant so I was hesitating. Play with your numbers around and tweak them to generate maximum net profit. It has to find ways expand so that cost of production at high quality still low enough to increase high margin, high market share and getting over all high Net Profit. This site uses Akismet to reduce spam. Strategies, decision screens, reports and tests. You need the capacity for the private label market. For example, a WMS can: Otherwise, their endorsement effect declines. Moreover, you can benefit from Business strategy game help where professional BSG players have many years of experience. You want to setEthics Training / Enforcement to All Employees and Workforce Diversity Program to Yes. Im glad I was able to help and good luck to you! Hi. Your interest rates depend on your credit rating and the duration of your loan. Tips: We ship from NA to LA because no import tax or tariffs due to NAFTA (North American Free Trade Agreements) - The North American Free Trade Agreement, or NAFTA, is a three-country accord negotiated by the governments of Canada, Mexico, and the United States that entered into force in January 1994. I still think its a waste to build a plant there, unless youre selling tons of shoes (high models, mid SQ). Thanks for your strategy! G Brand has a Vision to establish a worldwide brand dedicated to innovative design and best provider in quality at reasonable prices, allow becoming a global leader in the athletic branded shoe market. Also, make decisions about the number of models, then the price. 11/4/2016 1/2 I . While this was driven . As the CEO, you need the support of the other company managers. G-Brand will continue to make all efforts to use good materials which environment friendly. This is quite good at the year 19 and later. You will need those numbers later on. We will upgrade new factory in LA to produce top high quality shoes with C options an B for large quantity. Can you tell us more about the strategy you had ? We need to keep track of cost in more details in next years. This requires an overhaul of teaching practices and learning techniques that cater to the changing economic trends. I have experienced different behavior with bidding on celebrities. Keep track of close competitors, H and others. You can also pay dividends to your shareholders. You can decide to sell or purchase available capacity, upgrade your plants, build new plants in other regions, or add capacity to already existing plants. It can be very beneficial for you. Also, I suggest not decreasing your dividends. Hi Yvonne. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. but out industry there is a direct competitor for me, he is also star 8 and 50 models, and he prices so low for wholesale, only 47! Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. Team members run the simulation company efficiently while competing successfully. We will keep going with this rate in next five years with expansion strategy, based on large volume, higher S/Q and reasonable Prices. Besides, you can lower the cost per pair of shoes. Results in a one-time productivity increase of 100 pairs per year at each facility. While you already have a good estimate of how many shoes you are going to sell in each region, you still need to consider your rejected pairs during production. 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. With increased competition, prices tend to decrease. Thanks a lot! I always went with 500 every second year, but it depends on your market and competitors. Wow, you are done! Hi, Study on the go. It sometimes works. 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? I guess because i grew too fast last week, this weeks net profit is negative (I didnt make any adjustment yet). Looking at the North America column, you now have to plug in your values for Wholesale Price, S/Q Rating, Models Available, etc. I recommend increasing capacity and keep focusing on your profits. Our company will provide its customers provide multiple choices in footwear that will satisfy any of their footwear needs. 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. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. Select +2% for the Percent Change in Competitive Impact of All Other Factors from Previous Year. Key pharmaceutical distribution warehouse questions to ask a 3PL. The private-label sector is something you do not want to miss out on, especially with our high quality, low models strategy. My stupidness did not know that I should not pay dividends when I am in 5-year-loan, so I did not adjust any part in Finance Cash Flow except for borrowing. Avg. values have changed. (Im adjusting for Y13 now). Nonetheless, learning from your and other groups failures is also necessary. This is the case of iPhone or any other high end products are bringing values to customers such as cars and fashions. To this point, you are set to dominate your industry and win the Business Strategy game. You always want to make sure that you produce your sales volume for N.A. It is best to build only as much capacity as you can afford without taking any loans. 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. In the first few years, this will be pretty difficult to determine. When contracting a celebrity, your advertising efforts in the Sales Forecast section should not be low. We will differentiate prices to allow our shoes to be reasonable priced to the average personal. Hence, find the combination that gives you the highest profit. While +2% might now always be spot on, I have made the best experience with it so far. While they might boost your image rating, they will decrease your profit. 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. These strategies are easy to see in the real world of business. What are the core competitive advantages? If I have further questions do you mind I ask you for help? Sure, you can ask anytime . The company operations run parallel to those of actual athletic footwear companies. congrats on your success! How can we apply the wisdom of strategies like Cao Cao to Professors Peter Drunker, Igor Ansoff, Philip Selznick, James Collins, Bruce Handerson, Michael Porter, and Alfred Chandler, among others? 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. Moreover, your strategy needs to be actively communicated to each level of management regularly. After you have calculated the manufacturing volume for each region, add up your N.A. So, play around and find the best combination for your given S/Q rating that yields the highest net profit. Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, and Best Practices Training all affect the S/Q Rating. 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. This game can be overwhelming, so anything to help other players! Several colleges and universities use the Business Strategy Game in teaching and learning strategic management at their schools of Business Management. Beat the Business Strategy Game. The world's most streamed artist Bad Bunny, a Puerto Rican rapper, alone claims 8.3 billion streams.

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