When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. Paying off these loans in advance has the advantage that you will pay less interest over the coming years. You can also pay dividends to your shareholders. Paying dividends will increase your stock price and your ROE.
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How important is market share in the BSG?
Market share is not crucial for your success in the BSG, but profit is. 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. First, click on the “Adjust Competitive Intensity” button that can be found on the top middle of the page.
How to increase the chances of winning BSG?
Check for celebrity and private label bids: To improve the chances of winning BSG, consider improving your marketing strategies through bidding for celebrities. Making random amounts of bids to increase your chances of winning the bid.
Should you pay dividends to shareholders in the BSG?
When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. Paying off these loans in advance has the advantage that you will pay less interest over the coming years. You can also pay dividends to your shareholders. Paying dividends will increase your stock price and your ROE.
What is a good BSG score for a company?
As a general rule, we think that companies with an overall performance score of 90 or above at the conclusion of the decision rounds should get anywhere from an A– to an A+ on this portion of the BSG exercise. Companies with overall game-to-date scores of 80-89 should get a B– to a B+ (or higher if there are no companies with scores of 90 or more).
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What increases stock price in BSG?
A rising dividend has a positive impact on your company's stock price (especially if the dividend is increased regularly, rather than sporadically), but the increases need to be at least $0.05 per share to have much impact on the stock price.
How do I raise my credit BSG?
Borrow new loans and pay off current debts, to increase Credit Rating. We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. We can scan all the details to see information about: Debts, Stocks, Repurchase Stock to increase EPS when we have lots of Cash, giving dividends to investors.
How do you do the 3 year strategy in BSG?
Doing a 3-year strategic plan involves:Stating a strategic vision for your company.Establishing objectives for EPS, ROE, credit rating, image rating, and stock price appreciation each of the next three years.Declaring what competitive strategy your company intends to pursue.More items...
How do you beat the business strategy game?
1:194:17Business Strategy Game BSG 2020 | Best Way to Win as a GroupYouTubeStart of suggested clipEnd of suggested clipThe next best thing i can think of is first of all do not separate this based on decision entries itMoreThe next best thing i can think of is first of all do not separate this based on decision entries it doesn't work main reason being is because somebody's decisions will affect your decisions.
How does BSG increase net profit?
Answer: To increase your company's net income you should focus on improving your bottom line as well as your top line, try to trim labor, materials, warehouse, and delivery expenses.
What affects image rating in BSG?
The image rating for each company is based on (1) its branded Styling/Quality (S/Q) ratings in each geographic region, (2) its market shares for both branded and private-label footwear in each of the four geographic regions, and (3) company actions to display corporate citizenship and conduct operations in a socially ...
What should be in a 3 year plan?
Think about your goal to achieve in 3 years, what the goal is for this year, and what the goal is next year to help you get there. You can't manage what you can't measure. Other examples of Targets could be Net Profit, EBITDA, # of Locations, Revenue by Product Line, Revenue/Employee, Net Income, etc.
What is a 3 5 year plan?
The 5 Elements of a Strategic Planning Session A 3-5 year business plan should be created, and then revisited, reviewed, and re-worked each year. By the time you've reached 2024, for example, you will have reimagined it three times before your business begins living it.
How many years should a strategic plan cover?
Strategic plans become the budget's descriptive front end, often projecting five years of financials in order to appear “strategic.” But management typically commits only to year one; in the context of years two through five, “strategic” actually means “impressionistic.”
What is S Q rating in BSG?
consumer group, rates the styling and quality of the footwear of all competitors and assigns a styling-quality or S/Q rating of 0 to 10 stars to each company's branded footwear offerings.
What is private label BSG?
A private label product is manufactured by a contract or third-party manufacturer and sold under a retailer's brand name.
Team Work Is The Most Essential Factor of The Business Strategy Game
Corporate Social Responsibility
- The simulation involves CSR as the very first menu option. Thompson (2018) states that a company’s “license to operate,” comes with an obligation to act as a responsible citizen and do its fair share to promote the general well-being of society and has the burden to operate honorably. A balance must be struck between how much a company can afford to spend on CSR before it bec…
Recommendations For Improving The Image Rating in The Business Strategy Game
- The best-cost strategy benefits the company’s image because increasing the S/Q rating while having a lower price is directly related to achieving a high image rating. If there are 5 groups competing in the market aim for at least 20% market share in each segment because being evenly represented across the geographical regions bodes well for the company’s overall image. If ther…
Recommendations For Improving eps, Roe, and Stock Price in BSG Simulation
- Substantial growth in revenues and net profits will fuel tremendous growth in EPS and Stock Price. Therefore, growth-minded companies should consider expanding especially if plants are operating at over 80% capacity. The stock repurchase is also an almost instant way of increasing the stock price and EPS given the company continues to see reasonabl...
Employing A Blue Ocean Type of Offensive Strategy
- Involves abandoning efforts to beat out competitors in the existing markets and, instead, inventing a new industry or distinctive market segment that render existing competitors largely irrelevant and allows a company to create and capture altogether new demand. Focus on making your product distinctive in terms of quality or style and pay less attention to out promoting your …
Pitfalls to Avoid in The Business Simulation Game
- Do not neglect the information in the market snapshot but pay more attention to the footwear industry report rather than the portion that provides you with strength and weakness analysis, for example, advertising may be identified as a weakness, however, spending less on advertising while yielding better results than your competitors is actually an advantage. Investing in upgrade…
Questions & Answers
- Question:How can I increase market shares on internet and wholesales marketing? Answer:The simple answer is to increase advertising spending but a comprehensive approach is needed to get the best results. Research your market, look at market intelligence reports to see what competitors are offering in terms of style and quality, how much are they spending on ads as we…
Questions, Comments, and Other Tips Are Welcomed
- Angelo (author)from College Park, MD on July 17, 2020: Early investments in training, machinery, trim cost, bolster revenue, stock buyback, maintain a good image. SUSANAon July 14, 2020: how to increase the ROE in the BSG? Angeloon April 14, 2020: The image rating is particularly easy to influence by spending on ethics training, eco-friendly packaging etc. Nieseon April 14, 2020: It st…
Corporate Citizenship
- This decision page is mainly a waste of money and we will not spend a lot of time with this page. As already mentioned earlier, not every decision has to make sense. You might think that using green footwear materials or using recycled boxing / packaging is a good decision, especially with the currently ongoing environmental debates. It is not. Mos...
Sales Forecast
- This is probably the most important decision entry page in the game and you will be spending most of your time here. On this page, you will optimize your entries and toggle each value until your reach the maximum profit possible for each entry. Do not worry about your market share percentage or any other value than your net profit. Market share is not crucial for your success i…
Branded Production
- Do not worry about the Plant Capacity / Upgrades page. I did not forget it, but we will take a look at it later. On this page, you will set your values for your branded production. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. Again, maximizing net profit is all you care about with our strategy determined at th…
Branded Distribution
- Here, you will plug in your previously calculated regional total sales volume for each region. Important: Your Sales volume, not the production volume that includes the rejected pairs! 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. Ship all the other shoes for t…
Private-Label Operations
- Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. You can ignore the Internet Marketing andWholesale Marketing pages because they will just reflect your internet and wholesale decisions that you already plugged in on the previous pages. I will talk about the Celebrity Endorsements page later. The private-label sec…
Plant Capacity / Upgrades
- This decision page deals with your plants. 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.
Celebrity Endorsements
- On this decision page, you can bid on celebrities. Celebrities will enhance your marketing efforts and help you sell more shoes. When contracting a celebrity, your advertising efforts in the Sales Forecastsection should not be low. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. The higher your celebrity endorsement val…
Finance & Cash Flow
- Almost done, the last decision page. On this screen, you can handle your financial decisions for your company.
Begin The Game as A Professional
- As the CEO, you need the support of the other company managers. Team members run the simulation company efficiently while competing successfully. 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.
Apply The Theory Inside You
- Winning the BSG game is essential. Should you win, it would mean your tips are more favorable, and your competitors may learn from you. Nonetheless, learning from your and other groups’ failures is also necessary. As such, you can play the game frequently, any time you get it interesting. Even so, how can you apply the business strategy knowledge and skills in the game…
Know The Game, Your Competitors, and Know You
- The following tips can help you get around the BSG and possibly be the winner. 1. Know your strategy You can know your strategy in several ways. These include; 1. Check the Competitive Intelligent Report. 2. Keeping track of the closest competitor you would like to get ahead of, check their price, S/Q, and other things like celebrities, advertising...