Two of the most important things to do here are analyzing your competition and optimizing your values. 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. I am on my second year and I have negative income right now, any tips on how to get in the positive? G-Brand will continue to make all efforts to use good materials which environment friendly. They have all changed by +2%, just as you plugged it in. How can the company lead the market in 10 years? Thank you very much for your kind words! Keep control of Private Label market with upgraded factories that can produce most of quality at lower cost than any competitors. The most crucial thing is the find out what prices your competitors have. 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. That is overall good. For only $35, get instant access to the Business Strategy Game Guide. This has been very useful. Purchasing capacity is 20% cheaper than building new capacity on your own. You basically do the same thing over and over again, for every decision round. 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. 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. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. The company operations run parallel to those of actual athletic footwear companies. Company operations parallel those of actual athletic footwear companies. The following tips can help you get around the BSG and possibly be the winner. In Year 18, we have increased ROE to 26.3% vs. IE of 15%. This can be a very tricky decision and you need to analyze your competitors prices. You basically determine and run the market. The private-label market is a very nice opportunity to gain an advantage off your competitors and take their market share. And you can basically never have enough capacity for private label. This Branded Distribution table of decisions seem to need more time. 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. Thanks for your strategy! But this year the shipping is too high from AP to LA so I cannot make any money from LA. Just plug in numbers and note down your net profit values. How can the company defend the position if you are leading? It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. View Invitational Current Adopters of BSG Schools (campuses), institutions, and companies using BSG during the last 12 months. You will not have any complaints about the quality of the assignments we deliver. 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. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. 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. I started with paying $0.05 dividends and increased it by $0.05 every year. How to solves this situation ,have you given us any suggestion. 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. Thank you, Fin! We have good Cash in hand over 100 million each years. I am so thankful for your post!!!!!!!!!!!! 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. Do you have any suggestions? Our ROE fluctuated over the years due to expansion of factories, we now have paid all the old loans and have quite good cash in hand, we do not have to increase equity in next five years, at least we do not have to borrow for expansions. 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. Business Strategy game year 11 Internet Marketing, I need to figure out the appropriate units in the boxes that are in blue for best case scenario Show transcribed image text Expert Answer Transcribed image text: Its not too bad, no worries. So if one of your markets is not satisfied or prices are high, I would built capacity to attack this market and sell a lot of shoes for a cheap price, to guarantee you the lowest price so that you sell all your offered shoes. We need to look at bottom line to see Cost of Pairs available for Sales. Wow, you are done! Otherwise you will not sell any shoe either. 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. 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. Your Delivery Time should be set to 3 weeks. While those two values do not change your S/Q rating, they will change your net profits. I still think its a waste to build a plant there, unless youre selling tons of shoes (high models, mid SQ). The Models Offered estimate seems pretty fair and you do not have to worry about it. Therefore, ensure your profit increases after every round to make the game better and for real business. Find ways to break the inertia. 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. Keep in mind to check your profits and ensure they get as high as possible. You can do this by checking the bid prices for the previous year. 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. Here, you have to tie materials, styles, or features and TQM until you attain the desired S/Q. 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. However, you can successfully apply most of the following tips to either strategy. 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. With increased competition, prices tend to decrease. This way, you get a clue on the actual standing of the company entering into year 11. Im playing the new version of the game, and your guide has worked perfectly for the first two years! It is important to toggle your values and find the best combination to maximize your net profit. Net Revenue of 52.76, but cost of 25.43; 3.16 for warehouse; 10.50 for marketing; 1.16 for Admin, make the Net profit of 12.53. But again, thanks! Is there anyway to increase the demand for my shoes in the internet/wholesale markets? 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? So, multiply your sales volume for the wholesale segment for each region by 1.2. After you have decided to which region to ship your shoes to, go ahead and set your Superior Materials Usage value and your Enhanced Styling / Features value. The higher your celebrity endorsement value for a specific region, the more your advantage in attracting buyers to purchase your branded footwear. You will also receive a copy of Currency Made Simple. is it because I need to add capacity? 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. 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. The decision is due tonight I am so nervous but the performance score so far looks good. In the first few years, this will be pretty difficult to determine. You need this capacity for the private-label market. If you found your highest value for the best net profit, move on to the next value and do the same. I believe it varies based on your games situation. We aim to increase market share through factories in three continents, NA, AP and LA. Paying dividends will increase your stock price and your ROE. Keep track of close competitors, H and others. . Thank you so much! You will soon know why. Fin. So, after expansion of new factory in LA with 120 million, we reduce the number of shares to increase EPS. After that, loot to the left of screen to check if we have high Net Profit. 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. However, do not rely on those values. Important: Your Sales volume, not the production volume that includes the rejected pairs! In this section, you can upgrade your plants. 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. In the first years, the estimate of the industry average might be a little off the +2%. On this page, you will set your values for your branded production. Promise I wont have tons of question haha. The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. I will explain soon, how to increase plant capacity and why we need the capacity for private label. Texas A&M University, Corpus Christi. The styles or features can be at 50, while the TQM can be set at 2.50. However, with a reasonable price. As such, you can play the game frequently, any time you get it interesting. Thats a game changer!! The world's most streamed artist Bad Bunny, a Puerto Rican rapper, alone claims 8.3 billion streams. This is the case of iPhone or any other high end products are bringing values to customers such as cars and fashions. I hope that helps and good luck! Nonetheless, learning from your and other groups failures is also necessary. Total Admin Expenses is very low, just 1.49 per pair of shoes. Any thoughts? 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 Thank you in advance! Then we can analyze business results to identify new marketing, production strategy. Business Strategy Game - Week 5 (Year 14) Commissar BRO 9.95K subscribers 10K views 6 years ago And so we creep into Year 14. Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. I have experienced different behavior with bidding on celebrities. In the above example, we ship from NA factories to NA and LA. Hello, thanks for the great strategy, it is working (1st place) ! However, do not price your shoes too high, so that your competitors have a lower price than you and will sell their shoes first. Besides, you dont have to spend more on high-quality materials. We also learn a lot from the BSG itself and from our class mates, other teams, even we compete in the games, but in order to run effectively, we have to look at our competitors to learn their strategies and we see what they did well or not very well, we learn by doing this. We can keep and sell NA after year 16 if we have good and large LA factory. Also, consider workforce diversity and ethics training. What I like about my strategy is that you do not necessarily have to keep an eye on your competitors. However, after 3-4 years, your competitors will settle and changes will be more predictable. But strategy wise I always sticked to my maximum net profit strategy which you can do no matter your competitors strategy. 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. No worries, it will be easier after the first few years. Beat the Business Strategy Game. Logistics strategy as an enabler of new business models. 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. In my opinion, I believe the other teams are thinking on exploit the private label. unfortunately I have no experience with adjusting to my strategy in the late-game. This way, it becomes a living guide for decision-making for the entire company. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. I would like to ask you about the Dividends. As I keep reading online about different strategies to win, there are some postings that are aligned with the strategy of low quantity of models offered at a high quality and keep increasing capacity. Hence, try to keep your internet price at least 40% higher than your wholesale price. (Im adjusting for Y13 now). A warehouse management system (WMS) is a software solution that aims to simplify the complexity of managing a warehouse. 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). or A-P plant. Moreover, you can benefit from Business strategy game help where professional BSG players have many years of experience. From round 2, there is a risk that other groups can set the same strategy with the winner can be you. Okay! Same with all the other values, like I described in my blog post And then use all your remaining shoes for the private label market. 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. We note to see Return on Equity, so keep Total Equity lower than increase Ratio of Net Profit. Should you consider selling a factory, dont upgrade it because you will lose that investment. We need to keep continue going up to expand and to create new markets. So I doubt on his strategy. 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. Most of the decisions you can make here are a waste of money and will not benefit your company. 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. 11/4/2016 1/2 I . 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. Now we learn from the game and be more knowledgeable in making business decision. In the upper left box, you have available sources of additional cash. We keep the Mission which we built from last 8 years. You can lower the costs by increasing training and upgrading facilities. You then want to select 0% as the Portion of the $XX mil. All footwear So, how can you win the BSG game? But do whatever is necessary to maximize your profits. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. Do not sit on it. Winning your Business Strategy Game is not easy as it involves wide-ranging decisions on various aspects of the companys operations. 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. 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. We need to adjust the number of productions to optimal these decisions. You said that the internet price should be 40% above wholesale. 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. If you find capacity available for purchase, I would always directly purchase it. Is it too late to reduce that to 50 as you suggested in your recommendation? This can have a positive impact on energy levels and your overall health. Over the next five years, G-Brand will pursue strategies that will help it improve its financial bottom line, especially ROE because the company has quite high Equity. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. (meaning I decreases it from $1.00 to $0.15). Let me walk you through the various decision pages and explain you how to optimize each entry. And Im so thankful for your post!!!!!!!! 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. Hi there! The value that yields the highest profit value is the one you want to go with for this decision round. Let us move on to the tricky part of this decision page. It almost worked TOO WELL. I personally would not bid higher than $5,000 $6,000. This requires an overhaul of teaching practices and learning techniques that cater to the changing economic trends. Market share is not crucial for your success in the BSG, but profit is. Besides, you can set best practice training high, maybe at 5.000. In the Private-Label Production field, use all your remaining available capacity, even overtime. Keep track of total Net Profit to have enough money to build new factory, or we can always borrow to do so. In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. 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. You are now done with all your decisions for the Corporate Citizenship decision page and should hit the Save Decisions button on the upper right-hand corner. Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. 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. Look at the demand for each market, then divide each plant supply for each regional market. 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. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. BSG Guide - How to Win the Business Strategy Game.pdf. 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. Hello. Regardless of what the other competitors do in Year 11, your focus should be winning. If not, see what positive percentage yields the highest profit for you. 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. ? 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). 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. This is your new, more precise regional wholesale sales volume. 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. 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. One week they might increase, the other they might increase by just a little or even decrease. The demand depends on your retails, price and quality. Theres not right amount of capacity you should purchase. Thank you! I will walk you through each page chronologically. Can you tell us more about the strategy you had ? No worries, this is logical and you did nothing wrong. To this point, you are set to dominate your industry and win the Business Strategy game. So when following the steps described above, you will have positive ending cash really soon again. Then, just like you did before, plug in different values for your internet price and see, which price yields the highest net profit. I will just adjust it first and see what happens, thanks a lot:). That is regardless of the low price, high quality, or variety of models. Because with more capacity, you can offer more pairs in private label and dominate the market there. And profit is what the game is all about. 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.