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. One week they might increase, the other they might increase by just a little or even decrease. They have all changed by +2%, just as you plugged it in. Also, G-Brand need to keep high market shares, year 17 market shares are reduced, but G-Brand has get back to Top in Year 18. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. As already mentioned earlier, not every decision has to make sense. If you have your AP price set to e.g. You can either take out a 1-year, 5-year, or 10-year bank loan. BSG Guide - How to Win the Business Strategy Game.pdf. We have never looked in very details of business management like sales margins or even a few percent of market shares. If you find capacity available for purchase, I would always directly purchase it. So your costs will be relatively low as well and the private label will be a very important factor of yours. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. PDF The Business Strategy Game Total Admin Expenses is very low, just 1.49 per pair of shoes. The demand depends on your retails, price and quality. You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales. What are the core competitive advantages? I feel you. Authorize your construction and you save your decisions. The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. Higher Net Profit is a key to win the BSG Online Game. You have successfully adjusted to your competitors. 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. However, the private-label market is set up the way that only a limited demand is given each year. 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. Your Delivery Time should be set to 3 weeks. That is regardless of the low price, high quality, or variety of models. 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 . So, how can you win the BSG game? In the later years, when the cost in NA is high, we have built a new factory in LA, we can ship from LA to NA (eg. sales volume estimate. It is good to expand or build on the existing plants. As the CEO, you need the support of the other company managers. If you set your price lower, you will sell more but lose due to low profits. Net Profit must over 110 million every year to keep ROE higher than 25% or more. With our strategy in mind, I would recommend addition capacity to already existing plants rather than constructing a plant in a new region. Also, make decisions about the number of models, then the price. It will be, trust me. Do the same for your E-A and A-P volumes and plug them into the A-P manufacturing slot. On the other hand, other players gamble for the private market with a high price, a large volume to lead. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. 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? Beat the Business Strategy Game. 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. We can keep and sell NA after year 16 if we have good and large LA factory. I wish you the best of luck for your game. 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. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. Again, trying out different combinations and optimizing net profits is key for these values. I have experienced different behavior with bidding on celebrities. 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 found the right price, click the Save Decisions button. Definitely helps! My group and I are also playing the new version of the game and were little bit lost. Year 11 BSG Decisions - 11/4/2016 INDUSTRY18 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. I will talk about the Celebrity Endorsements page later. The most important advice in advance: it is all about PROFIT. You said that the internet price should be 40% above wholesale. If Im wrong, Ill post another comment. 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. Even more important is, to stick to it! Warehouse and Distribution Plan Strategies Results in a one-time productivity increase of 100 pairs per year at each facility. 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. Wow, you are done! The key information form balance sheet is not just Total Cash outlays of 711,362 or Net Cash balance for every year. At the end, I increased dividends to boost my ROE. like should I just follow your tips through all because I kind of get on a bad start. While this was driven . 3/29/2021 BSG Decisions & Reports Projected Year 12 Performance Scoring Measures EPS (earnings per . I personally find it easier to pursue and had more success with it in the past. 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. After you have calculated the manufacturing volume for each region, add up your N.A. NEVER do this. Here, you will decide for how much your shoe is going to sell. We need to keep track of cost in more details in next years. We will differentiate prices to allow our shoes to be reasonable priced to the average personal. In this section, you can upgrade your plants. 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. 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. From experience Id say tho that it is already too late to adjust to my strategy presented. Thank you so much for the good recommendations. ROE indicates how much profit is generated with the investments that shareholders made. I started with paying $0.05 dividends and increased it by $0.05 every year. Besides, your team will have the opportunity to translate a high-level conceptual strategy into concrete actions for the company and team while developing their decision-making skills. BSG Comprehensive Exam (Fall 2019) Flashcards | Quizlet This decision page is mainly a waste of money and we will not spend a lot of time with this page. We will adjust collection online lower to 400 compared with 500 in stores. One time, I was able to increase my net profit by lowering TQM / Six Sigma Quality Program to $0.20 and increasing Percentage of Superior Materials to maintain my S/Q Rating. Hi, If it is 0%, that is fine as well, do not worry about it. Thats a game changer!! (0 for both stock issues and stock repurchase). In addition, you have the option to repurchase your stock. All you have to do now, is writing down your forecasted Regional Sales Volume for both the Internet Segments and Wholesale Segments in all four regions. We have two plants in year 11, and growth rate of market is about 5-7%, during 10 years from year 11 to year 20 we will need to double may be triple production capacity. 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 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. I was wondering how much more additional capacity that I should purchase after Ive bought the first 1000 for NA. You will soon know why. 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. No worries, this is logical and you did nothing wrong. Also, consider workforce diversity and ethics training. I let the rest remain the same in the entry. You basically do the same thing over and over again, for every decision round. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! Yes, I would only add capacity onto existing plants and not build new plants. havr the highest stock price, image rating at 90, A+ still, and double digit EPS. This like a trial and error process and does not necessarily have to make sense. Set your price to whatever maximizes your profits. My guide follows the rule highest net profit is key to success. We will work tirelessly to ensure that our shoes are within reach of purchasing and get the high quality shoes with very large selection. And you said I should only add capacity onto existing ones instead of building a new one in LA right? Hi! While they might boost your image rating, they will decrease your profit. Your interest rates depend on your credit rating and the duration of your loan. This can get confusing at the beginning so here is a table to show you the process. Decades of experience in warehousing and distribution can be an incredible advantage. Strategies, decision screens, reports and tests. Two of the most important things to do here are analyzing your competition and optimizing your values. Hello. Select +2% for the Percent Change in Competitive Impact of All Other Factors from Previous Year. Should I continue expanding NA or AP and by how much? You are almost done for the Sales Forecast decision page. Use the remaining 30% capacity to sell shows in private-label! 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). 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 is all about trying out all possible combinations. As such, you can play the game frequently, any time you get it interesting. Keep focus, year 17, we over sleep in Victory, and ignore competitors. You can only do one upgrade at a time in each region and a total of two updates per region. Please delete one if there is an extra comment. We do not leave it in bank or safe. This way, you will save more money while getting a high S/Q. Okay! Do not worry about your market share percentage or any other value than your net profit. Try out each and every value and note down the highest net profit values. What is the companys differentiation strategy? In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. Often provided as part of an integrated enterprise resource planning (ERP) suite of business applications, a WMS can support and help to optimize every aspect of warehouse management. It typically keeps increasing until a certain price point and then starts to drop. Besides, you can lower the cost per pair of shoes. We will keep Expansion of Internet Sales, keep low-cost-strategy with Highest Values that customers can get Online. You need this capacity for the private-label market. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. I did not stock issues or issue purchase in the those years. If you are looking for your teams strategy to be a success, then creation is the first step. 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. Thank you, Fin! 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. For this blog post, I will concentrate on the high-quality + low model strategy. We also learn that Loans from previous years may have higher interest rate, we can borrow new loans to pay off old debts, and get higher Credit Rating because we can pay loans. What is Warehouse Management? Benefits, Processes, & Strategies For further explanation, please read my blog post. Do not worry about those numbers, they will just show you whether your investment is profitable or not. With that, you can do the same over and over again, for every decision round. 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. I will walk you through each page chronologically. As always, do not forget to save your decisions after you are done. If you add capacity it will show you the price. When we do so, look at estimations to keep control of ROE and EPS. On this screen, you can handle your financial decisions for your company. You basically determine and run the market. . 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. BSG Game Tips | Business Strategy Game Tips | BSG Game Help The end result counts. Private label will help you dominate your competition. Besides, your team of managers will develop the critical thinking they need to move beyond the functional management of the company as a whole. To this point, you are set to dominate your industry and win the Business Strategy game. Okay! That combined will give you a good boost for the last year. Download the iOS The value that yields the highest profit value is the one you want to go with for this decision round. 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. Do not price your shoes too low, so that you will not make any profits with your sales. Its not too late to do that yet. After you are done, move on the left side and do the same for your internet sales. Theres not right amount of capacity you should purchase. More than two groups following the same strategy suffer the same difficulties since they create direct competition among their target market. Business Strategy Game Simulation - bsg-online.com Hence, make sure to plug in every possible value to reach the highest net profit possible. Quiz 2 Chapters 1 an 2.docx. Do not focus too much on the market share but focus more on profits. This is very helpful. 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. However, it will also decrease your ending cash. However, you can successfully apply most of the following tips to either strategy. Best-Strategy Invitational High-performing companies worldwide face off in a 2-week competition hosted 3 times a year by the BSG author team. Which wholesale are you referring to? Again, maximizing net profit is all you care about with our strategy determined at the beginning. 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? If I have further questions do you mind I ask you for help? Moreover, consider the best margin for this market and ensure you can have the contract. 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. We also ship from AP to EA, AP and some to LA. 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. Also, I suggest not decreasing your dividends. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. When I played the game, I barely looked at what my competitors were doing. This is your new, more precise regional wholesale sales volume. 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. I will explain soon, how to increase plant capacity and why we need the capacity for private label. Let us move on to the tricky part of this decision page. Hello. 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. While those two values do not change your S/Q rating, they will change your net profits. Does it affect any other factors? Business Strategy Game - Week 5 (Year 14) - YouTube Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. You want to setEthics Training / Enforcement to All Employees and Workforce Diversity Program to Yes. you should repurchase stock whenever you can. For instance, you can change the Industry Average to +2% or +4% to attain the optimal. Increase from 3 to 6 activities to support society and environment. With revised strategy, G-Brand will focus on offering higher quality products, more models, more fashion, to be industry leader in cost for value. If you tweak those numbers, your demand will adjust accordingly. Here, you have to tie materials, styles, or features and TQM until you attain the desired S/Q. If your team faces these kinds of challenges, seeking BSG help online could be the best option. Okay. 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%. Promise I wont have tons of question haha. The Strategy Business Game learned all aspects such as production, distribution, sales forecasting, finance, marketing, celebrity endorsements, private label operations, corporate . 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. If you found your highest value for the best net profit, move on to the next value and do the same. This support strategy of expansion and getting high Sales, Higher Net Profit and higher market shares. 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. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Can GameStop Win (In The Long-Term)? Lessons For Digital - Forbes Thank you so much for your reply! This is a good lesson in class that can be valuable in life. Any advice? However, the challenge is in crafting and executing a competitive strategy that delivers a respected brand image, keeping the company in contention for an international market leader, produce a good financial performance as that is measured by the earnings per share, return per share, return on investment, stock price appreciation, and credit rating. 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. Beat the Business Strategy Game. Yes, despite your competitors building capacity as well, I recommend increasing capacity in a reasonable amount. Almost done, the last decision page. Like I explained in my blog post, do everything that is necessary to increase and maximize your net profits. Key pharmaceutical distribution warehouse questions to ask a 3PL. In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). 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. Key Term business strategy game year 11 decisions; This preview shows page 1 - 2 out of 2 pages. After you have done this, you might notice that your Your Estimate of the Ind. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Examples, Strategy and Warehousing - Supply Chain Brief Also, we are doing better than in the past so interest rate is lower. 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.

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