As always, do not forget to save your decisions after you are done. 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. I started with 250 models and S/Q rating of 5. This is quite good at the year 19 and later. I suggest to go for maximum profits. Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. For further explanation, please read my blog post. Any thoughts? If you find capacity available for purchase, I would always directly purchase it. Keep focus, year 17, we over sleep in Victory, and ignore competitors. With that, you can do the same over and over again, for every decision round. Plant Capacity / Upgrades. In my opinion, I believe the other teams are thinking on exploit the private label. 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. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. And profit is what the game is all about. We will keep going with this rate in next five years with expansion strategy, based on large volume, higher S/Q and reasonable Prices. 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. 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. More capacity also brings down your costs. Look at the demand for each market, then divide each plant supply for each regional market. If you have any questions, feel free to come back and ask them. 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. At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. Decades of experience in warehousing and distribution can be an incredible advantage. You basically determine and run the market. You should slightly increase your dividends year by year. Go ahead and try out which combination yields the highest profits. Recommendations for Improving the Image Rating in The Business Strategy Game If you bid on multiple celebrities, it is good to set a ranking priority and a spending cap so that you do not spend more money than you want or have available. So I run into problem again! For only $35, get instant access to the Business Strategy Game Guide. Copyright 2023 | Powered by Top Academic Writers, Automated page speed optimizations for fast site performance, Leadership and Management Assignment Help. I personally find it easier to pursue and had more success with it in the past. 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. Winning the BSG game is essential. Its not too late to do that yet. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. My team and I are going to the second round of decisions, so I think were still on time to switch towards another area in the market. G-Brand will continue to make all efforts to use good materials which environment friendly. Thank you very much for your kind words! We need to control this better in next five years. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. On this decision page, you can bid on celebrities. As already mentioned earlier, not every decision has to make sense. Do not focus too much on the market share but focus more on profits. You will get the hang of it after the first few decision rounds as it is always the same procedure. I cant seem to find it. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. While your regional sales volume for the internet segment is a good estimate, the estimates for the wholesale segments are not. Therefore, the first set of decisions your team of managers makes is for year 11. We will adjust collection online lower to 400 compared with 500 in stores. On this screen, you can handle your financial decisions for your company. Also, consider workforce diversity and ethics training. 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. Hence, you will only focus on the two following decisions that are worth their money as they increase your image rating the most. Q&A. To this point, you are set to dominate your industry and win the Business Strategy game. In order to be continue higher competitive and perform to the higher levels, there are still some areas in which the company can focus to operate better. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. 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. 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. However, traditional warehouse management systems are not designed with the flexibility or technology capacities to address ongoing challenges in the . 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. However, it will also decrease your ending cash. Wow, you are done! I would always encourage you to bid on available celebrities. Purchasing capacity is 20% cheaper than building new capacity on your own. However, try your best. 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. 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? However, do not rely on those values. When doing so, you have to plug in numbers for the assumptions section in the new window. You said that the internet price should be 40% above wholesale. Set your price to whatever maximizes your profits. While this was driven . I am on my second year and I have negative income right now, any tips on how to get in the positive? unfortunately I have no experience with adjusting to my strategy in the late-game. Please delete one if there is an extra comment. 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. The ROE in Year 18 is good back to 24,3% compared with Investor Expectation of 15%. After you have done this for both the N.A. 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? 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. We have good Cash in hand over 100 million each years. Strategies, decision screens, reports and tests. ? 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). From this highest whole dollar amount, I plug in every possible value around it and find the price that yields the highest net profit. Hi, From round 2, there is a risk that other groups can set the same strategy with the winner can be you. Toward that end, it put in place responsible environmental policy that ensures more decisions for community. This has been very useful. Okay! Besides, you dont have to spend more on high-quality materials. Key Term business strategy game year 11 decisions; This preview shows page 1 - 2 out of 2 pages. However, if you experience difficulty winning your game, type Help with My BSG. You will get professional from BSG game help. This essay was written by a fellow student. The Business Strategy Game or BSG is a simulation game used by, different colleges for their Business capstone. Hi there! The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. The Models Offered estimate seems pretty fair and you do not have to worry about it. This Branded Distribution table of decisions seem to need more time. You can only do one upgrade at a time in each region and a total of two updates per region. Im playing the new version of the game, and your guide has worked perfectly for the first two years! Texas A&M University, Corpus Christi. Even more important is, to stick to it! Let us move on to the tricky part of this decision page. 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. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. Here, you have the opportunity to sell your existing capacity. Should you have excess capacity, consider this market and manufacture at full capacity. How can you apply the knowledge from the textbooks? Now, I am worried about the future rounds. 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. Keep control of Private Label market with upgraded factories that can produce most of quality at lower cost than any competitors. The issues depend on cost of production. Helped me get to the second place! 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. Before you even start plugging in any numbers, it is important that you decide for a strategy to pursue for the game. I will walk you through each page chronologically. This is very helpful. If numbers do not add up correctly and your total pairs shipped do not match your total pairs available, go back to the Branded Distribution page and adjust your numbers accordingly. We get out of Year 17 with bad results in ROE because we expand too fast in that year. From experience Id say tho that it is already too late to adjust to my strategy presented. When contracting a celebrity, your advertising efforts in the Sales Forecast section should not be low. Exactly. If your results in the first year are not too good, its not a big deal. Is there anyway to increase the demand for my shoes in the internet/wholesale markets? 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. To do so, G-Brand has to improve on the effectiveness of its operation, especially increasing Net Profit higher than ratio of expanding its Factories. Or you have read it but still do not know what strategy to pursue or what is going on? Paying dividends will increase your stock price and your ROE. (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. But again, thanks! 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. If you tweak those numbers, your demand will adjust accordingly. Optimizing your values is the essence of the game, even though it might be very time-consuming. 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. Strategic warehousing impacts all warehouse operations, from inventory management to order fulfillment. You will need those numbers later on. . However, do not forget to calculate your possible additional expenses for your celebrities. Hi, Im glad to hear that it helped! 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. Also, make decisions about the number of models, then the price. Private label will help you dominate your competition. If you are looking for your teams strategy to be a success, then creation is the first step. you should repurchase stock whenever you can. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. 1. Increase from 3 to 6 activities to support society and environment. We need to adjust the number of productions to optimal these decisions. 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. We will upgrade new factory in LA to produce top high quality shoes with C options an B for large quantity. In the upper left box, you have available sources of additional cash. 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! That is overall good. 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. And I would not build another plant, rather increase capacity in the plants that you already built. Nonetheless, learning from your and other groups failures is also necessary. or A-P plant. like should I just follow your tips through all because I kind of get on a bad start. G-Brand will continue to build on its existing strategy (Globa Differentiation Strategy) of attempting to gain a competitive advantage primarily by differentiating the Value and Quality for Price, customers pays for Real High Quality Value and Fashionable athletic shoes with much higher Quality what our competitors would charge for similar products. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. When we do so, look at estimations to keep control of ROE and EPS. Hi Dennis. However, keep track of profit since you are cutting from the profit for PR products. is it because I need to add capacity? Net Profit must over 110 million every year to keep ROE higher than 25% or more. So, how can you win the BSG game? Thank you so much for the good recommendations. That is regardless of the low price, high quality, or variety of models. These three strategies can help. thank you:). 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. Is it too late to reduce that to 50 as you suggested in your recommendation? However, if you happen to use overtime at either of the two plants, plan on increasing the plants capacity in this decision round. Results in a one-time productivity increase of 100 pairs per year at each facility. You are playing the BSG but do not want to read the 35-page Players Manual? 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). One week they might increase, the other they might increase by just a little or even decrease. In next five years, G-Brand will be more competitive with production capacity at the top and also high quality with largest collection. However, it is not necessary and Option C is definitely more effective. Net Profit of 150 million with increase of 25% every year. This like a trial and error process and does not necessarily have to make sense. 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. Were at the middle of the pack and wanted the best strategy to move up the ranks. 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. I personally would not bid higher than $5,000 $6,000. In Year 18, we have increased ROE to 26.3% vs. IE of 15%. I am so thankful for your post!!!!!!!!!!!! However, the private-label market is set up the way that only a limited demand is given each year. 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. Keep track of close competitors, H and others. First, click on the Adjust Competitive Intensity button that can be found on the top middle of the page. We had a bunch of copycats in practice year 12, but nobody has figured our profit-maximizing, low-cost strategy, and now theyre pursuing higher models in the real game. BSG Guide - How to Win the Business Strategy Game.pdf. Thanks! Your interest rates depend on your credit rating and the duration of your loan. This site uses Akismet to reduce spam. 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. Hi Yvonne. This is a good lesson in class that can be valuable in life. Again, maximizing net profit is all you care about with our strategy determined at the beginning. You will soon know why. With this, they raised the global capacity to 30,000 when the potential global demand (including private label) is only 24,218. Decide right time to upgrade factories or expand or build a new factory is a key to success. All footwear However, to be able to do so, you need available capacity. 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. To do so, first plug in your N.A. Profit is crucial in the BSG game. In todays education system, developing students with a high level of competencies and capabilities is a challenging task for every instructor. 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. View Distribution & Warehouse.pdf from MGMT 5355 at Texas A&M University, Corpus Christi. Free shipping will most likely not increase your profits. Hence, find the combination that gives you the highest profit. You want to setEthics Training / Enforcement to All Employees and Workforce Diversity Program to Yes. As such, you can play the game frequently, any time you get it interesting. However, with effective BSG simulation tips, you can keep your company ahead of the competition. This way, you end up buying the share at a lower price. You can still ship pairs from LA to somewhere else if needed. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. I have experienced different behavior with bidding on celebrities. Let me know if you have any more questions. We will get ROE higher soon, and faster than other competitors. We give you. It will be, trust me. Thank you, Fin! This can have a positive impact on energy levels and your overall health. Yes, I would definitely do plant upgrade option C! When I played the game, I barely looked at what my competitors were doing. We are in shoes industry, so we can provide the differentiation with larger Collections. So I doubt on his strategy. Now, decide to which region you want to ship your private-label shoes. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. 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%. Should I continue expanding NA or AP and by how much? Our EPS increase fast from 7.36. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. You can also pay dividends to your shareholders. In this section, you can upgrade your plants. 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. Which wholesale are you referring to? Each decision period in the BSG represents a year, and the company you will run began its operations 10 years ago. 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. Id also like to point out that it appears the developers threw out NAFTA in the new version, so tariffs hurt pretty bad in Latin America. I recommend building additional 1,000 capacity for the North American plant in the first year, if your cash balance allows it. Okay! We have quite large Total Shareholder Equity of 446,571. The higher your celebrity endorsement value for a specific region, the more your advantage in attracting buyers to purchase your branded footwear. With our strategy in mind, I would recommend addition capacity to already existing plants rather than constructing a plant in a new region. Furthermore, G-Brand will continue focus on what we are top leading like S/Q, models, strong advertising, retailer support, celebrities. Economic Impact of Hurricane Harvey and Hurricane Irma, Temporary Oil Price Changes Hold Back Consumer Spending. This way, it becomes a living guide for decision-making for the entire company. If not, see what positive percentage yields the highest profit for you. ROE indicates how much profit is generated with the investments that shareholders made. I always went with 500 every second year, but it depends on your market and competitors.

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