If you have more cash available, go ahead and spend it for either one of the other options. How to solves this situation ,have you given us any suggestion. Business Strategy Game Also, make decisions about the number of models, then the price. On the other hand, other players gamble for the private market with a high price, a large volume to lead. We will keep the largest market shares in Internet Sales. I mainly looked at what they were doing in the private label sector. I started with paying $0.05 dividends and increased it by $0.05 every year. Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. Thank you so much for the good recommendations. Do not worry about the Plant Capacity / Upgrades page. At the end, I increased dividends to boost my ROE. We can keep and sell NA after year 16 if we have good and large LA factory. To this point, you are set to dominate your industry and win the Business Strategy game. You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. Even so, how can you apply the business strategy knowledge and skills in the game? Increase S/Q ratings? And then I would just follow my tips and adjust all other values to maximize profits. Otherwise you will not sell any shoe either. I recommend increasing capacity and keep focusing on your profits. We will keep going with this rate in next five years with expansion strategy, based on large volume, higher S/Q and reasonable Prices. By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. 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. If it is 0%, that is fine as well, do not worry about it. In this section, you can upgrade your plants. Try and set it to Yes. As such, you can play the game frequently, any time you get it interesting. More capacity also brings down your costs. Here, you have to tie materials, styles, or features and TQM until you attain the desired S/Q. However, do not rely on those values. and L.A. in North America to reduce costs because ofNAFTA. Okay. I still think its a waste to build a plant there, unless youre selling tons of shoes (high models, mid SQ). 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. It typically keeps increasing until a certain price point and then starts to drop. Hence, you will only focus on the two following decisions that are worth their money as they increase your image rating the most. Do that by answering the following questions? as I described in my post, Id go with the low models, maximum profit strategy as it is easy to follow and you determine the market. After that, loot to the left of screen to check if we have high Net Profit. Free shipping will most likely not increase your profits. Hello, Worst case, all the demand is already satisfied in your region before your shoes at a certain price is being considered. This can have a positive impact on energy levels and your overall health. in years 13-14-15. 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. Again, maximizing net profit is all you care about with our strategy determined at the beginning. Largest network of retailers around the world. 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). The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. 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. Here is a chart again tho show you the process: If your regular production capacity is not sufficient, use overtime. For instance, you can change the Industry Average to +2% or +4% to attain the optimal. Hi! Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. We need to look at bottom line to see Cost of Pairs available for Sales. 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! So your costs will be relatively low as well and the private label will be a very important factor of yours. With that, you can do the same over and over again, for every decision round. BSG Guide - How to Win the Business Strategy Game If you see little action on the celebrity market, go ahead and get your celebrities for the lowest price possible ($500). 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. Here, you have the opportunity to sell your existing capacity. When I played the game, I barely looked at what my competitors were doing. Even though this game is said to be a business simulation, get rid of the thought that all decisions have to make sense and be logical. You might have the highest profits with 0 advertising budget. Business Strategy Game - Phdessay On this screen, you can handle your financial decisions for your company. Looking at the North America column, you now have to plug in your values for Wholesale Price, S/Q Rating, Models Available, etc. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. Set your price to whatever maximizes your profits. The Business Strategy Game or BSG is a simulation game used by, different colleges for their Business capstone. We can check that before making decisions. The Models Offered estimate seems pretty fair and you do not have to worry about it. We have never looked in very details of business management like sales margins or even a few percent of market shares. The demand depends on your retails, price and quality. (In Y11, I did the 5-year loan with 12,000k (7% interest). Your interest rates depend on your credit rating and the duration of your loan. After you are done, move on the left side and do the same for your internet sales. How can the company lead the market in 10 years? 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. Your Delivery Time should be set to 3 weeks. You will not have any complaints about the quality of the assignments we deliver. But keep in mind the risk of jumping up or going down with the high bid price. We have good Cash in hand over 100 million each years. I just have a quick question. Yeah I had that in the first weeks as well. However, traditional warehouse management systems are not designed with the flexibility or technology capacities to address ongoing challenges in the . 14. Q&A. . 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. Let me know if you have any more questions. Should I decrease the pay dividends and do stock repurchase in Y13? You said that the internet price should be 40% above wholesale. 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. Repurchasing stock will boost both your EPS and ROE. Hello, thanks for the great strategy, it is working (1st place) ! However, my net profit is still negative even after i have adjusted the private-label. However, it is not necessary and Option C is definitely more effective. However, if you happen to use overtime at either of the two plants, plan on increasing the plants capacity in this decision round. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. These include; Lowering the costs come with lots of benefits. In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. 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. Sometimes, clearing your beginning inventory at a discount will boost your profits. BSG Guide - How to Win the Business Strategy Game.pdf. Also, we are doing better than in the past so interest rate is lower. I like to have around $8-10 million ending cash available after all my decisions are made. 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. im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. Do the same for your E-A and A-P volumes and plug them into the A-P manufacturing slot. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. PS: I do the 5-year-loan 12,000k in Y11 (7% interest); In year 12, I paid #1 Long-Term (early payment) 12k at 8.2% AND borrow 70,000k 5-year-loan at 4.5%. Logistics strategy as an enabler of new business models. So I doubt on his strategy. My guide follows the rule highest net profit is key to success. I hope that helps and good luck! The company that offers the lowest price will sell all its supply first, followed by the company with the second lowest price offered, and so on. For the next five years from Year 18, we will continue: To provide highest quality branded athletic shoes to the global market at a competitive price. Plant Capacity - BeatBSG Yeah I will hold on to that for now. Any thoughts? 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. The end result counts. I dont know why the game suddenly changed your numbers but I recommend using every last bit of your capacity. It is best to build only as much capacity as you can afford without taking any loans. However, there are still some other voluntary decision that will prepare you for future decisions. This can make Net profit quite simple, if we produce 12.000.000 pair of shoes, we will get about 144 million Net Profit. When we do so, look at estimations to keep control of ROE and EPS. Okay! In the first years, the estimate of the industry average might be a little off the +2%. I followed your recommendations, and I have a good rank. 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. How can the company jump over other competitors? Its not too late to do that yet. Then, just like you did before, plug in different values for your internet price and see, which price yields the highest net profit. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. Also, G-Brand believes that every organization has a social responsibility to promote harmony within the community it exists. This would leave you with a bunch of shoes unsold. While those two values do not change your S/Q rating, they will change your net profits. We do not focus on rebate, time of delivery. You possible might decrease your net profits with this, but it is definitely worth it and will pay off in the long-run. From round 2, there is a risk that other groups can set the same strategy with the winner can be you. ROE indicates how much profit is generated with the investments that shareholders made. However, do not price your shoes too high, so that your competitors have a lower price than you and will sell their shoes first. Strategic warehousing impacts all warehouse operations, from inventory management to order fulfillment. 24 Pros & Cons Of Starting A Distribution Warehouse Business (2023) Use the remaining 30% capacity to sell shows in private-label! Also do you know the cost of building additional capacity. As already mentioned, it is important that you ship all your shoes for the North American warehouses and the Latin American warehouses from the North American plant. Increase models? If you have any questions, suggestions, or comments feel free to comment and I will do my best to help you out. 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. If you have your AP price set to e.g. Business Strategy Game (BSG) Helpful Tips!!! - YouTube Now you begin to understand why I earlier said, that if you use overtime for branded production, you should expand your plant capacity for the next year. 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 decision page deals with your plants. Okay! My friend and I walk through the simulation on how it works. I will talk about the Celebrity Endorsements page later. I feel you. NEVER do this. You can win the game if you follow the High quality and the Low number of models. They do their best to ensure that you get the best grades on your assignment. Otherwise, their endorsement effect declines. This is the case of iPhone or any other high end products are bringing values to customers such as cars and fashions. And Im so thankful for your post!!!!!!!! We need to adjust the number of productions to optimal these decisions. Business Strategy Game - Week 5 (Year 14) Commissar BRO 9.95K subscribers 10K views 6 years ago And so we creep into Year 14. If I have further questions do you mind I ask you for help? We note to see Return on Equity, so keep Total Equity lower than increase Ratio of Net Profit. 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. I started with 250 models and S/Q rating of 5. 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 need your capacity and it is never a good idea to sell your existing capacity. Never give up, we can always find a good way to improve a company, despite its position in a market. Like I explained in my blog post, do everything that is necessary to increase and maximize your net profits. For only $35, get instant access to the Business Strategy Game Guide. 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. havr the highest stock price, image rating at 90, A+ still, and double digit EPS. Theres not right amount of capacity you should purchase. I am so thankful for your post!!!!!!!!!!!! Total Admin Expenses is very low, just 1.49 per pair of shoes. 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 . Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. Should you consider selling a factory, dont upgrade it because you will lose that investment. (meaning I decreases it from $1.00 to $0.15). Business Strategy Game Simulation I cant seem to find it. 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. In next five years, G-Brand will be more competitive with production capacity at the top and also high quality with largest collection. Do this for all four regions. 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. I did not forget it, but we will take a look at it later. The positive impact that such a strategy has on the company's image rating, provided the company spends a meaningful amount on socially responsible activities and such spending is sustained over a multi-year period Set Models Offered to 50 and Free Shipping to No. My question is what if I decreased the pay dividends to $0.15 from $1.00? Promise I wont have tons of question haha. I was thinking about building a LA plant because I took the majority of private label there last year. Nonetheless, learning from your and other groups failures is also necessary. I guess because i grew too fast last week, this weeks net profit is negative (I didnt make any adjustment yet). I wish you the best of luck for your game. congrats on your success! No worries, this is logical and you did nothing wrong.
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