After that, loot to the left of screen to check if we have high Net Profit. 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 you see little action on the celebrity market, go ahead and get your celebrities for the lowest price possible ($500). In the first years, the estimate of the industry average might be a little off the +2%. After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. Largest network of retailers around the world. My group and I are also playing the new version of the game and were little bit lost. 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. However, try your best. You will not have any complaints about the quality of the assignments we deliver. I am currently dominating my industry, and closing in on the top 100 list! Total Wholesale Marketing is 12.92 is good now, we will keep maintaining strong marketing to get higher sales volume. The Business Strategy Game (BSG) comes in handy as a realistic representation of the actual practices in a virtual setup. However, do not forget to calculate your possible additional expenses for your celebrities. If you set your price lower, you will sell more but lose due to low profits. To do so, first plug in your N.A. Thank you! But my profit is still a little bit low for a second place, guess my price is too low and I need to cut some of my expenses, right? After you have found the right price, click the Save Decisions button. Hi, If so, we need to start building a new factory in LA, eg. We will build new Plants in LA, keep focus on different segments, high and very high quality. This would leave you with a bunch of shoes unsold. Hello, thanks for the great strategy, it is working (1st place) ! We need to keep continue going up to expand and to create new markets. How can the company lead the market in 10 years? On this decision page, you can bid on celebrities. I put $1.00 pay dividends, which turned out 20,000k in total. I now have another question about capacity. So for the last year I didnt stick to the rule that the internet price has to be 40% higher than the wholesale price. If it is lower than 40%, your wholesale price will be in competition with your internet price. in years 13-14-15. The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. Branded Distribution Again, trying out different combinations and optimizing net profits is key for these values. The key information form balance sheet is not just Total Cash outlays of 711,362 or Net Cash balance for every year. Learn how your comment data is processed. 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 requires an overhaul of teaching practices and learning techniques that cater to the changing economic trends. Moreover, we will invest on advertising and make use of celebrity appeal to gain brand consciousness. You might have the highest profits with 0 advertising budget. 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. 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. You dont have to care about your retail outlets anymore so adjust the price so maximize your net profit, without the 40% rule. We have good Cash in hand over 100 million each years. A warehouse management system (WMS) is a software solution that aims to simplify the complexity of managing a warehouse. For example, a WMS can: Should I continue expanding NA or AP and by how much? This is probably the most important decision entry page in the game and you will be spending most of your time here. 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. Your team will experience the challenge of coming up with a successful strategy, especially when frequently faced with changing competitive business environment. Models Available weighted average Wholesale Wholesale Price to Retailers span Marketing Brand Advertising (5000 Decisions Mail-in Rebate 9 to $15 por part Delivery Time (1 to 4 wek delivery Retailer Support (50 to $10000 Retail Outlets witing to cry your brand Marketing variables de termined by prior year Celebrity Appeal am creeper You have successfully adjusted to your competitors. You can win the game if you follow the High quality and the Low number of models. By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). 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 . or A-P plant. 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 few years, this will be pretty difficult to determine. 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? 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. These three strategies can help. It is good to expand or build on the existing plants. You now need the forecasted Regional Sales Volume for both the Internet Segments and Wholesale Segments in all four regions that you wrote down earlier. If you add capacity it will show you the price. This way, it becomes a living guide for decision-making for the entire company. We need to adjust the number of productions to optimal these decisions. . Again, it is important that you keep in mind to optimize your profits. All footwear This is your new, more precise regional wholesale sales volume. What should I do in this case? From experience Id say tho that it is already too late to adjust to my strategy presented. You are now done with your private-label decisions and all significant decisions that affect your net profits. View Invitational Current Adopters of BSG Schools (campuses), institutions, and companies using BSG during the last 12 months. With our strategy, you might want to think about getting Option A as well. Keep focus, year 17, we over sleep in Victory, and ignore competitors. So I have plant in NA, EA and AP, but right now I am only using 70% of the capacity because the demand is quite small for me. After you have done this for both the N.A. You possible might decrease your net profits with this, but it is definitely worth it and will pay off in the long-run. Do this for all four regions. Business Strategy Game - Phdessay Should you have excess capacity, consider this market and manufacture at full capacity. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. It is all about trying out all possible combinations. . Yeah I had that in the first weeks as well. Purchasing capacity is 20% cheaper than building new capacity on your own. Otherwise you will not sell any shoe either. I would recommend purchasing the upgrade for both of your plants within the first four years. Yes, despite your competitors building capacity as well, I recommend increasing capacity in a reasonable amount. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Play with your numbers around and tweak them to generate maximum net profit. Select +2% for the Percent Change in Competitive Impact of All Other Factors from Previous Year. But this year the shipping is too high from AP to LA so I cannot make any money from LA. 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. Moreover, your strategy needs to be actively communicated to each level of management regularly. Thanks! We will upgrade AP in C and one other option. We will now look at all the decisions you have to make to actually play the game and be successful with your strategy. We will upgrade new factory in LA to produce top high quality shoes with C options an B for large quantity. Hence, you will only focus on the two following decisions that are worth their money as they increase your image rating the most. BSG Comprehensive Exam (Fall 2019) Flashcards | Quizlet . 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. For all following decision rounds, you do not have to return to this page, as I advise you to always keep those two options and not change anything else on this page. You will soon know why. Hi, youre welcome. 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. Do this for all four regions. Try and set it to Yes. 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. However, if you experience difficulty winning your game, type Help with My BSG. You will get professional from BSG game help. We also regularly pay old loans to get higher Credit Rating. 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. 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. This is quite good at the year 19 and later. Before you even start plugging in any numbers, it is important that you decide for a strategy to pursue for the game. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. Looking at Company Operating Report, Distribution and Warehouse Reports, we see Cost of Branded Pairs Sold in Year 18 is $25 and Warehouse Operating Expenses is 3.71. However, if you need a few points for the image, consider using the Corporate Citizenship but take note of the expenses. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. We will differentiate prices to allow our shoes to be reasonable priced to the average personal. Hello. Besides, you dont have to spend more on high-quality materials. You basically determine and run the market. The higher your celebrity endorsement value for a specific region, the more your advantage in attracting buyers to purchase your branded footwear. The end result counts. If you have your AP price set to e.g. I wish you the best of luck for your game. Thats one of the things you should never do because you can always use capacity. Besides, you can lower the cost per pair of shoes. 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. 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. Then, you want to plug in your L.A. total sales volume estimate into theproductionslot for North America as well and add up your reject rates. 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. 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. We can check that before making decisions. Keep in mind to check your profits and ensure they get as high as possible. You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales. I recommend building additional 1,000 capacity for the North American plant in the first year, if your cash balance allows it. Also, consider workforce diversity and ethics training. Key pharmaceutical distribution warehouse questions to ask a 3PL. My group and I are about to complete year 17 for the game. For the upgrade option C is the one to raise 1 star, but the actual cost it can save me every year is not a lot, should I still do that? Business Strategy Game Simulation 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). 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. Business Strategy Game - Group 4.docx - Course Hero We do not focus on rebate, time of delivery. Distribution Warehouse Business's typically involve a much greater degree of movement than other lines of work. Winning your Business Strategy Game is not easy as it involves wide-ranging decisions on various aspects of the companys operations. . So, play around and find the best combination for your given S/Q rating that yields the highest net profit. Currently, were selling 150 models. We keep the Mission which we built from last 8 years. I feel you. Hey!! We can keep and sell NA after year 16 if we have good and large LA factory. The Business Strategy Game or BSG is a simulation game used by, different colleges for their Business capstone. Recommendations for Improving the Image Rating in The Business Strategy Game is it because I need to add capacity? As always, do not forget to save your decisions after you are done. If your team faces these kinds of challenges, seeking BSG help online could be the best option. How can you apply the knowledge from the textbooks? Higher Net Profit is a key to win the BSG Online Game. If it increases your profits, leave it at Yes, otherwise set it to No. Celebrities will enhance your marketing efforts and help you sell more shoes. Profit is the key to success in this game! Set Models Offered to 50 and Free Shipping to No. After you have calculated the manufacturing volume for each region, add up your N.A. Okay! Looking at the North America column, you now have to plug in your values for Wholesale Price, S/Q Rating, Models Available, etc. I will explain soon, how to increase plant capacity and why we need the capacity for private label. How can the company defend the position if you are leading? Hi, Im glad to hear that it helped! Wow, you are done! And then I would just follow my tips and adjust all other values to maximize profits. 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. Team members run the simulation company efficiently while competing successfully. Optimizing your values is the essence of the game, even though it might be very time-consuming. If you really need money, I would rather advise you to issue some of your stock. I only ever paid attention to my profits and I never ever sold capacity. Increase models? I prioritize building additional capacity and purchasing plant upgrades. Moreover, you can benefit from Business strategy game help where professional BSG players have many years of experience. Company operations parallel those of actual athletic footwear companies. Here is a chart again tho show you the process: If your regular production capacity is not sufficient, use overtime. Here, you have to tie materials, styles, or features and TQM until you attain the desired S/Q. It typically keeps increasing until a certain price point and then starts to drop. Yes, its not too late yet to follow through with my tips. My question is what if I decreased the pay dividends to $0.15 from $1.00? What are the niche markets that your competitors dont see? With our strategy in mind, I would recommend addition capacity to already existing plants rather than constructing a plant in a new region. 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. 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. Let me walk you through the various decision pages and explain you how to optimize each entry. We will get ROE higher soon, and faster than other competitors. If it is 0%, that is fine as well, do not worry about it. Thank you so much for your reply! Here, you have the opportunity to sell your existing capacity. Also do you know the cost of building additional capacity. The Strategic Role of Warehouse Management in the Supply Chain How to solves this situation ,have you given us any suggestion. I usually go ahead and plug in whole dollar amounts for the wholesale price and see how net profit changes. Since youre only in the second year, I would honestly decrease your models to 50. 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? Sometimes thats cutting expenses, sometimes thats increasing expenses (even though it might not make sense at first). The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. These include; Lowering the costs come with lots of benefits. my advice would be to read my guide and follow the steps. Im playing the new version of the game, and your guide has worked perfectly for the first two years! G-Brand has been performing for many years Higher than Investors Expectation. Business Strategy Game The two most important values you want to have as precisely estimated as possible are the industrys average wholesale price and S/Q rating. The Business Strategy Game: A Reflection The world economic trends are changing fast creating more necessities for the students to develop the ability to be flexible, expert, and adaptable. Yes, I would only add capacity onto existing plants and not build new plants. 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. 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. With this, they raised the global capacity to 30,000 when the potential global demand (including private label) is only 24,218. 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). When I played the game, I barely looked at what my competitors were doing. total sales volume estimate into the Branded Pairs to be Manufactured in Year XXslot for North America, write down your reject rate and add it to your previous total N.A. Your Delivery Time should be set to 3 weeks. From this highest whole dollar amount, I plug in every possible value around it and find the price that yields the highest net profit. ? We have good market share in NA and, last year, we needed to ship the rest of the shoes from AP (incurring in shipping and tariffs costs, hence, the thought of adding capacity in LA). How can you apply the ancient wise in the Arts of War of Sun Tzu? BSG Guide - How to Win the Business Strategy Game.pdf. Beat the Business Strategy Game. Our company will provide its customers provide multiple choices in footwear that will satisfy any of their footwear needs. Fin. If not, see what positive percentage yields the highest profit for you. However, it will also decrease your ending cash. Hence, try to keep your internet price at least 40% higher than your wholesale price. As the CEO, you need the support of the other company managers. Just plug in numbers and note down your net profit values. This is the case of iPhone or any other high end products are bringing values to customers such as cars and fashions. I did not forget it, but we will take a look at it later. The value that yields the highest profit value is the one you want to go with for this decision round. The Business Strategy Game - Competing in a Global Marketplace This way, you get a clue on the actual standing of the company entering into year 11. This essay was written by a fellow student. For instance, you can change the Industry Average to +2% or +4% to attain the optimal. and L.A. volumes and finally plug them into the NA manufacturing slot. This Branded Distribution table of decisions seem to need more time. We will keep Expansion of Internet Sales, keep low-cost-strategy with Highest Values that customers can get Online. While those two values do not change your S/Q rating, they will change your net profits. 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. 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. Avg. values have changed. Yeah I will hold on to that for now. If you demand for branded production is met, put everything else into private label to make sure you dont have unused capacity. Is it too late to reduce that to 50 as you suggested in your recommendation? (0 for both stock issues and stock repurchase). With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. While your regional sales volume for the internet segment is a good estimate, the estimates for the wholesale segments are not. 7.39 to 12.81 over last three years, much higher than Investor Expectation of 4.3. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. Thank you so much! You will need those numbers later on. When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. In the first year (Year 11), you only have two factories, and you need to distribute to four markets. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. Over Year from 15 to 18, ROE changes up and down 22.5, 18.2 then 20.0 then in year 17 down to 16.8 then up to 24.3 in Year 18. Besides, your team of managers will develop the critical thinking they need to move beyond the functional management of the company as a whole. One of the most useful skills we learnt from BSG in Financial Analysis, we have had the chance to read Income Statement and Financial Reports every years, for last 8 years, many time, which we understand more about cost and revenues, details of cost, details of revenue, we notice the importance of loans, interest rate, credit ratings. Its not too late to do that yet. I am in need of help with the Business Strategy Game. | Chegg.com Hi Dennis. congrats on your success! However, there are still some other voluntary decision that will prepare you for future decisions. Like in the real world, the BSG companies compete in the international market arena, selling branded and private-label athletic footwear in different geographic regions such as Europe-Africa, North America, Asia-Pacific, and Latin America. Each decision period in the BSG represents a year, and the company you will run began its operations 10 years ago. Go ahead and try out which combination yields the highest profits. Same for your superior material. This site uses Akismet to reduce spam. I did not stock issues or issue purchase in the those years. However, if done right, it is worth the time as it will yield the maximum profit possible and success in your industry. 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.