- 7. Mai 2023
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- Category: Allgemein
How can you apply the knowledge from the textbooks? View full document. 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. On this page, you will set your values for your branded production. Go ahead and try out which combination yields the highest profits. However, if you happen to use overtime at either of the two plants, plan on increasing the plants capacity in this decision round. 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. Please delete one if there is an extra comment. The company operations run parallel to those of actual athletic footwear companies. Also, we are doing better than in the past so interest rate is lower. Hi You have to base it off the HIGHEST wholesale price, just to be safe Like that, all 4 regions are guaranteed to be 40% above wholesale price. This can have a positive impact on energy levels and your overall health. Should I decrease the pay dividends and do stock repurchase in Y13? I feel you. I suggest to go for maximum profits. Thank you in advance! The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. Study on the go. Thats a relief. I let the rest remain the same in the entry. Whenever you change and sharpen any decisions, you should keep track of your net profits. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. Hi! For example, a WMS can: Try to move away from your competitors if they are applying the same strategy. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. 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. . On this decision page, you can bid on celebrities. Hi. After you have done this for both the N.A. Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. So I run into problem again! You basically do the same thing over and over again, for every decision round. (In Y11, I did the 5-year loan with 12,000k (7% interest). You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. I would definitely increase your S/Q rating to 8* and lower your models to 50 (this should be the lowest you can go if I remember correctly). Learn tips & tricks, from a BSG Grand Master! 14. 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 The Strategy Business Game learned all aspects such as production, distribution, sales forecasting, finance, marketing, celebrity endorsements, private label operations, corporate . I always went with 500 every second year, but it depends on your market and competitors. The end result counts. And he also purchase 4000 capacity in the first year but no advertising expenses. is it because I need to add capacity? While your regional sales volume for the internet segment is a good estimate, the estimates for the wholesale segments are not. Here, you will plug in your previously calculated regional total sales volume for each region. 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. We will upgrade new factory in LA to produce top high quality shoes with C options an B for large quantity. Always check the market snapshot and the private-label segment. I would recommend purchasing the upgrade for both of your plants within the first four years. These three strategies can help. So I would recommend you to decrease your models to 50 and remain at 8* for most of the time, if not even for all the remaining game. If you have more cash available, go ahead and spend it for either one of the other options. Let us move on to the tricky part of this decision page. Entering year 15 I am still doing 8 star but the demand forecast is super low. 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. 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. While those two values do not change your S/Q rating, they will change your net profits. We can keep and sell NA after year 16 if we have good and large LA factory. Keep focus, year 17, we over sleep in Victory, and ignore competitors. 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. (Im adjusting for Y13 now). Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. at least one of the two teams has an S/Q of 8* and low prices so far (yes, they are in first place for now) what do you think we should do?. 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. In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). However, if you want to do it more precisely, note down each industrys percentage change over the years and use this number instead of the +2%. You will also receive a copy of Currency Made Simple. I will just adjust it first and see what happens, thanks a lot:). Otherwise you will not sell any shoe either. With our strategy, you might want to think about getting Option A as well. These are the three most crucial decisions to make in the game. This would leave you with a bunch of shoes unsold. We get out of Year 17 with bad results in ROE because we expand too fast in that year. Plant Capacity / Upgrades. You will soon know why. I wish you the best of luck for your game. These strategies are easy to see in the real world of business. Once you get the Main Menu for running the company, print a copy of the Year 10 company reports, a summary of the footwear industry report for year 10, and competitive intelligence reports. And then I would just follow my tips and adjust all other values to maximize profits. How can we apply the wisdom of strategies like Cao Cao to Professors Peter Drunker, Igor Ansoff, Philip Selznick, James Collins, Bruce Handerson, Michael Porter, and Alfred Chandler, among others? This can make Net profit quite simple, if we produce 12.000.000 pair of shoes, we will get about 144 million Net Profit. Decades of experience in warehousing and distribution can be an incredible advantage. We note to see Return on Equity, so keep Total Equity lower than increase Ratio of Net Profit. We were actually thinking on building capacity in LA for next year, however, two of the other teams already built capacity for 6,000 pairs in total (we are only 4 teams in total). Write down each regions reject rates and add them up to the regions estimates sales volume. However, keep in mind that your regional endorsement value should not be higher than 400 in any region. Ideally, you can cut your employees wages and will increase profit. 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. Net Profit of 150 million with increase of 25% every year. It is best to build only as much capacity as you can afford without taking any loans. Besides, you can set best practice training high, maybe at 5.000. I personally would not bid higher than $5,000 $6,000. Total Wholesale Marketing is 12.92 is good now, we will keep maintaining strong marketing to get higher sales volume. The following tips can help you get around the BSG and possibly be the winner. Keep track of close competitors, H and others. Should you consider selling a factory, dont upgrade it because you will lose that investment. Also, make decisions about the number of models, then the price. We do not leave it in bank or safe. However, try your best. Here, you have the opportunity to sell your existing capacity. It is important to toggle your values and find the best combination to maximize your net profit. Im glad I was able to help and good luck to you! That combined will give you a good boost for the last year. I would look at the Margin Over Direct Costs value at the very bottom of the page to see where it is most profitable to ship your shoes to. Especially with our high quality and low models strategy, this will be very beneficial and will safe you some money. It was set Pay Dividends $1.00, which turned out 20,000k in total. I never really watched my EPS or credit rating (ofc credit rating should be a B at least). 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. 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. If you have any questions, suggestions, or comments feel free to comment and I will do my best to help you out. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. Here is a chart again tho show you the process: If your regular production capacity is not sufficient, use overtime. In the first years, the estimate of the industry average might be a little off the +2%. Okay! Furthermore, I spent all my cash on hand for dividends and stock repurchase to increase my ROE and EPS as much as possible. You will not have any complaints about the quality of the assignments we deliver. In the first year (Year 11), you only have two factories, and you need to distribute to four markets. Do not worry about your market share percentage or any other value than your net profit. Therefore, ensure your profit increases after every round to make the game better and for real business. 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. Then we can analyze business results to identify new marketing, production strategy. Hi, So, multiply your sales volume for the wholesale segment for each region by 1.2. In the upper left box, you have available sources of additional cash. 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. In this section, you can upgrade your plants. View Adopters Arthur A. Thompson, Jr. John R. Miller Professor Emeritus You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales. In the above example, we ship from NA factories to NA and LA. For further explanation, please read my blog post. Thank you! Your team will experience the challenge of coming up with a successful strategy, especially when frequently faced with changing competitive business environment. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. It can also be crippling if leaders . Do this for all four regions. If you have your AP price set to e.g. You can win the game if you follow the High quality and the Low number of models. Play with your numbers around and tweak them to generate maximum net profit. Most of the decisions you can make here are a waste of money and will not benefit your company. Is your strategy also works for my situation? Learn tips & tricks, from a BSG Grand Master! 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. 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). Decide right time to upgrade factories or expand or build a new factory is a key to success. If I have further questions do you mind I ask you for help? The cost of the game varies depending on the version and the number of players, but typically ranges from $50 to $100. we are having a horrible time of having left over inventory .. we are in year 13 and our numbers are ok we were 1st place last on year 11 and second place on year 12 but i having a feeling we have been focusing so much on our current numbers we arent going to end well any advise on what we should do on inventory and other sections of the game. 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. The most crucial thing is the find out what prices your competitors have. We will adjust collection online lower to 400 compared with 500 in stores. And should I do stock repurchase this year? You can only do one upgrade at a time in each region and a total of two updates per region. You can still ship pairs from LA to somewhere else if needed. This can get confusing at the beginning so here is a table to show you the process. You need the capacity for the private label market. Thank you, Fin! Avg. values have changed. Market share is not crucial for your success in the BSG, but profit is. Do you have any suggestions? However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. I have experienced different behavior with bidding on celebrities. unfortunately I have no experience with adjusting to my strategy in the late-game. Thanks a lot! Unused capacity kills your numbers and profits! More capacity also brings down your costs. 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. Distribution Warehouse Business's typically involve a much greater degree of movement than other lines of work. This is because your competitors are adjusting and trying to find their strategy. Again, trying out different combinations and optimizing net profits is key for these values. Try out each and every value and note down the highest net profit values. thank you for your help. We will differentiate prices to allow our shoes to be reasonable priced to the average personal. However, with effective BSG simulation tips, you can keep your company ahead of the competition. Hello, Now we learn from the game and be more knowledgeable in making business decision. When we do so, look at estimations to keep control of ROE and EPS. If you set your price lower, you will sell more but lose due to low profits. 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. 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. This decision page deals with your plants. I started with 250 models and S/Q rating of 5. Should you have excess capacity, consider this market and manufacture at full capacity. 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. What is the companys differentiation strategy? 7.39 to 12.81 over last three years, much higher than Investor Expectation of 4.3. According to the change, you can estimate the next years average industry internet price and plug it in. I was wondering how much more additional capacity that I should purchase after Ive bought the first 1000 for NA. Hi Lee, Profit is the key to success in this game! Advantage of this is, that you dont have to pay too much attention to your competitors. You can know your strategy in several ways. And you said I should only add capacity onto existing ones instead of building a new one in LA right? Do not sit on it. I personally find it easier to pursue and had more success with it in the past. Like should I add up all my wholesale prices from the 4 regions and then divide by 4 to get an average wholesale price and multiply by 1.40 to get the internet price or should I base it off the lowest wholesale and then multiply by 1.40 to get the internet price? 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. Beat the Business Strategy Game. Hence, try to keep your internet price at least 40% higher than your wholesale price. Hi, Im glad to hear that it helped! In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. Paying off these loans in advance has the advantage that you will pay less interest over the coming years. This decision page is mainly a waste of money and we will not spend a lot of time with this page. 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. Do not price your shoes too low, so that you will not make any profits with your sales. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. or A-P plant. With revised strategy, G-Brand will focus on offering higher quality products, more models, more fashion, to be industry leader in cost for value. 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. From round 2, there is a risk that other groups can set the same strategy with the winner can be you. You want to setEthics Training / Enforcement to All Employees and Workforce Diversity Program to Yes. Therefore, the first set of decisions your team of managers makes is for year 11. Never give up, we can always find a good way to improve a company, despite its position in a market. We will keep the largest market shares in Internet Sales. Promise I wont have tons of question haha. Here, you have to tie materials, styles, or features and TQM until you attain the desired S/Q. You are almost done for the Sales Forecast decision page. An ingenious business strategy for your team will help your team members to appreciate the significance of the strategy, identify the kinds of trade-offs needed, and demonstrating that with limited resources, not every project can be pursued.
