You dont have to care about your retail outlets anymore so adjust the price so maximize your net profit, without the 40% rule. And he also purchase 4000 capacity in the first year but no advertising expenses. Hence, make sure to plug in every possible value to reach the highest net profit possible. We can check that before making decisions. We do not focus on rebate, time of delivery. Study on the go. Yes, I would definitely do plant upgrade option C! While this was driven . It can be very beneficial for you. If so, we need to start building a new factory in LA, eg. 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. You will also receive a copy of Currency Made Simple. We will build new Plants in LA, keep focus on different segments, high and very high quality. The private-label market is a very nice opportunity to gain an advantage off your competitors and take their market share. It can also be crippling if leaders . One of the most useful skills we learnt from BSG in Financial Analysis, we have had the chance to read Income Statement and Financial Reports every years, for last 8 years, many time, which we understand more about cost and revenues, details of cost, details of revenue, we notice the importance of loans, interest rate, credit ratings. 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. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. PS: I left a comment, but I did not see it and thus retyped. We will keep going with this rate in next five years with expansion strategy, based on large volume, higher S/Q and reasonable Prices. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. Let me know if you have any more questions. im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. and L.A. in North America to reduce costs because ofNAFTA. 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). This site uses Akismet to reduce spam. Currently, were selling 150 models. 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. However, there are still some other voluntary decision that will prepare you for future decisions. 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? View Invitational Current Adopters of BSG Schools (campuses), institutions, and companies using BSG during the last 12 months. 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. 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? 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. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. internet-marketing B Company- Year 11 Heip Print save | Chegg.com More capacity also brings down your costs. We will work tirelessly to ensure that our shoes are within reach of purchasing and get the high quality shoes with very large selection. I never really watched my EPS or credit rating (ofc credit rating should be a B at least). Promise I wont have tons of question haha. Branded Distribution 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. Is your strategy also works for my situation? This is probably the most important decision entry page in the game and you will be spending most of your time here. 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. Largest network of retailers around the world. Also, make decisions about the number of models, then the price. The issues depend on cost of production. 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. Should I continue expanding NA or AP and by how much? Then, just like you did before, plug in different values for your internet price and see, which price yields the highest net profit. Besides, you can set best practice training high, maybe at 5.000. Thank you, Fin! What are the core competitive advantages? This game can be overwhelming, so anything to help other players! My guide follows the rule highest net profit is key to success. 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. Total Admin Expenses is very low, just 1.49 per pair of shoes. And then I would just follow my tips and adjust all other values to maximize profits. 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. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. Q&A. However, keep track of profit since you are cutting from the profit for PR products. So far I have only build a 1000 EA plant and additional 500 NA plant. For further explanation, please read my blog post. 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). Besides, you dont have to spend more on high-quality materials. . I just have a quick question. Hi! In the first years, the estimate of the industry average might be a little off the +2%. Hi. 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. I prioritize building additional capacity and purchasing plant upgrades. The world economic trends are changing fast creating more necessities for the students to develop the ability to be flexible, expert, and adaptable. You will need those numbers later on. You can still ship pairs from LA to somewhere else if needed. If you find capacity available for purchase, I would always directly purchase it. You always want to make sure that you produce your sales volume for N.A. Strategic warehousing impacts all warehouse operations, from inventory management to order fulfillment. 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%. Buy I have quite a lot ending cash. 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. thank you:). I started with paying $0.05 dividends and increased it by $0.05 every year. Thanks a lot! 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. More than two groups following the same strategy suffer the same difficulties since they create direct competition among their target market. In the Private-Label Production field, use all your remaining available capacity, even overtime. If you have more cash available, go ahead and spend it for either one of the other options. 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. Unused capacity kills your numbers and profits! Key pharmaceutical distribution warehouse questions to ask a 3PL. 24 Pros & Cons Of Starting A Distribution Warehouse Business (2023) 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. 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. 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. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Go ahead and try out which combination yields the highest profits. 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. 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). Find ways to break the inertia. For instance, you can change the Industry Average to +2% or +4% to attain the optimal. Thanks! Set your price to whatever maximizes your profits. However, do not forget to calculate your possible additional expenses for your celebrities. Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. However, some values, such as the Wholesale Price have decreased instead of increased. However, to be able to do so, you need available capacity. The styles or features can be at 50, while the TQM can be set at 2.50. Ideally, you can cut your employees wages and will increase profit. I will talk about the Celebrity Endorsements page later. These three strategies can help. The following tips can help you get around the BSG and possibly be the winner. My question is what if I decreased the pay dividends to $0.15 from $1.00? This is your new, more precise regional wholesale sales volume. 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. 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). So, how can you win the BSG game? Furthermore, I spent all my cash on hand for dividends and stock repurchase to increase my ROE and EPS as much as possible. Your Delivery Time should be set to 3 weeks. Advantage of this is, that you dont have to pay too much attention to your competitors. 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. This is a good lesson in class that can be valuable in life. 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. 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. But my profit is still a little bit low for a second place, guess my price is too low and I need to cut some of my expenses, right? Market share is not crucial for your success in the BSG, but profit is. The end result counts. In the first few years, this will be pretty difficult to determine. But it is definitely worth it. Keep focus, year 17, we over sleep in Victory, and ignore competitors. This is quite good at the year 19 and later. How can the company defend the position if you are leading? Also, consider workforce diversity and ethics training. Try out different combinations that keep you at 8* and the highest possible net profit. (Which affects all 5 factors: EPS, ROE, Image Rating, Credit Rating and Stock Prices). The Business Strategy Game: A Reflection 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. 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. How did your 2nd decision go? If not, see what positive percentage yields the highest profit for you. Should you consider selling a factory, dont upgrade it because you will lose that investment. On the other hand, other players gamble for the private market with a high price, a large volume to lead. Free shipping will most likely not increase your profits. Nonetheless, learning from your and other groups failures is also necessary. Therefore, the first set of decisions your team of managers makes is for year 11. If you really need money, I would rather advise you to issue some of your stock. I only ever paid attention to my profits and I never ever sold capacity. 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. Best-Strategy Invitational High-performing companies worldwide face off in a 2-week competition hosted 3 times a year by the BSG author team. BSG Comprehensive Exam (Fall 2019) Flashcards | Quizlet Decades of experience in warehousing and distribution can be an incredible advantage. I am so thankful for your post!!!!!!!!!!!! How can the company overcome tough competitors who seem to know most of the things you know? (In Y11, I did the 5-year loan with 12,000k (7% interest). 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. Private label will help you dominate your competition. We aim to increase market share through factories in three continents, NA, AP and LA. However, try your best. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. How can the company lead the market in 10 years? Thank you very much for your kind words! Im playing the new version of the game, and your guide has worked perfectly for the first two years! Do this for all four regions. This decision page is mainly a waste of money and we will not spend a lot of time with this page. Now, decide to which region you want to ship your private-label shoes. 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. This like a trial and error process and does not necessarily have to make sense. Do that by answering the following questions? 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 So, should I decrease pay dividends here to $0.15? Then we can analyze business results to identify new marketing, production strategy. Optimizing your values is the essence of the game, even though it might be very time-consuming. Helped me get to the second place! sales volume estimate. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. Here, you have the opportunity to sell your existing capacity. 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. Yeah I will hold on to that for now. 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. (meaning I decreases it from $1.00 to $0.15). Beat the Business Strategy Game. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. At the end, I increased dividends to boost my ROE. 5 Ways Strategic Warehousing Can Increase Profits We have never looked in very details of business management like sales margins or even a few percent of market shares. So for our strategy, it should be 7 stars at the beginning. 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. With our strategy in mind, I would recommend addition capacity to already existing plants rather than constructing a plant in a new region. In addition, you have the option to repurchase your stock. The Business Strategy Game provides your team with the opportunity to discuss the real business issues while working together to assess the options and make decisions linked to the overall company strategy. I wish you the best of luck for your game. Also, we can upgrade NA in C and one other option. Thanks a lot! 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. That is overall good. We keep the Mission which we built from last 8 years. Winning your Business Strategy Game is not easy as it involves wide-ranging decisions on various aspects of the companys operations. We also ship from AP to EA, AP and some to LA. Thank you so much for your suggestion! You can either take out a 1-year, 5-year, or 10-year bank loan. Dont forget to upgrade your plants as a strategy. As always, do not forget to save your decisions after you are done. 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. Definitely helps! My friend and I walk through the simulation on how it works. Before you even start plugging in any numbers, it is important that you decide for a strategy to pursue for the game. 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. We need to keep track of cost in more details in next years. 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. Hi, Im glad to hear that it helped! The cost of the game varies depending on the version and the number of players, but typically ranges from $50 to $100. This is the key to affect our strategy in the next five years. You will soon know why. Thank you so much for your reply! This can have a positive impact on energy levels and your overall health. You are almost done for the Sales Forecast decision page. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. 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. Most of the decisions you can make here are a waste of money and will not benefit your company. Furthermore, G-Brand will continue focus on what we are top leading like S/Q, models, strong advertising, retailer support, celebrities. 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. However, do not rely on those values. At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. The private-label sector is something you do not want to miss out on, especially with our high quality, low models strategy. In this section, you can upgrade your plants. Wow, you are done! This way, you end up buying the share at a lower price. You can lower the costs by increasing training and upgrading facilities. 7.39 to 12.81 over last three years, much higher than Investor Expectation of 4.3. Its not too bad, no worries. and L.A. volumes and finally plug them into the NA manufacturing slot. Otherwise, their endorsement effect declines. All footwear This support strategy of expansion and getting high Sales, Higher Net Profit and higher market shares. Because with more capacity, you can offer more pairs in private label and dominate the market there. Yes, I would only add capacity onto existing plants and not build new plants. Increase S/Q ratings? Repurchasing stock will boost both your EPS and ROE. Concerning changing others values, I recommend reading my initial post where I have explained everything in detail. Regardless of what the other competitors do in Year 11, your focus should be winning. 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. Sure, you can ask anytime Team members run the simulation company efficiently while competing successfully. With increased competition, prices tend to decrease. Distribution & Warehouse.pdf - 3/29/2021 BSG Decisions - Course Hero

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