Pay off your outstanding debt, issue stock, repurchase stock and give bonuses to shareholders. This way, you increase your net income, therefore increasing the ROE, EPS and stock prices. No matter how small it starts, always give a dividend and increase the rate as the game moves on.
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How to increase the chances of winning BSG?
Apr 06, 2021 · How To Increase Stock Price In Bsg Game Essaybots. Effective education is strongly connected to human how to increase stock price in bsg game interactions and there are no uncertainties that it is significantly greater when they are warm and supporting. 181 Likes. Types map: Web site. Evaluation Creating.
How to increase image rating in the BSG game?
Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. Such stock price gains are within easy reach if the company meets or beats the annual EPS targets and pays a rising dividend to shareholders. All companies had a stock price of $30 per share at the end of Year 10.
How important is market share in the BSG?
Increasing earnings raises ROE by increasing the numerator. Increasing dividends and stock repurchase increase ROE by reducing the denominator. Check the Help screen for Financials to see how much dividend payouts can be helpful versus how much can have negative effects. Note: the ROE score is a two year running average.
How to win BSG game simulation?
Jun 27, 2020 · Pay off your outstanding debt, issue stock, repurchase stock and give bonuses to shareholders. This way, you increase your net income, therefore increasing the ROE, EPS and stock prices. No matter how small it starts, always give a dividend and increase the rate as the game moves on.
What increases stock price in BSG?
How is stock price determined BSG?
How do you increase ending cash in Battlestar Galactica?
How do you do the 3-year strategic plan BSG?
- 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.
What is a good image rating in BSG?
How do you increase ending cash?
How can net profit be improved?
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.
How many years should a strategic plan cover?
What is a strategic vision statement?
How much does a stock gain in a year?
Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. Such stock price gains are within easy reach if the company meets or beats the annual EPS targets and pays a rising dividend to shareholders. All companies had a stock price of $30 per share at the end of Year 10. Stock price is a function of EPS growth, ROE, credit rating, dividend per share growth, and management’s ability to consistently deliver good results (as measured by how many of the 5 performance targets are achieved over all completed decision rounds).
When was BSG scoring introduced?
The BSG scoring methodology, introduced in 2004 and now used for thousands of participants, has an exceptionally good, time-tested track record. The scoring synopsis provided on the scoreboard pages (pages 1, 2, and 3) of the Footwear Industry Report is straightforward and easily grasped— we get few questions about how the scoring works. Company co-managers can discern exactly why their scores are high or low relative to the other companies, and it is always indisputably clear which companies are the industry leaders and which companies are being outperformed.
What is the bonus for a company's EPS?
Beating the EPS, ROE, stock price, and/or image rating targets are worth point bonuses of 0.5% for each 1.0% that a company’s actual performance exceeds the expected performance for EPS, ROE, stock price, and image rating, up to a maximum 20% bonus for each measure. For example, if a company achieves an EPS of $6.00 when the target is $4.00 and if EPS carries a 20-point weighting, then the company will receive an EPS score of 24 (because it beat the target by 50% and qualifies for the maximum 20% bonus over the 20-points awarded for just matching the EPS target). Bonus points are also awarded for credit ratings above B+, with a full 20% point bonus being given for an A+ rating.
What is failure to achieve the investor-expected target for EPS or ROE?
Failure to achieve the investor-expected target for EPS or ROE or stock price or image rating results in a score for that performance measure between 0 and the point maximum for that measure, with the score depending on the percentage of the target achieved. For instance, if a company achieves a stock price of $20 at a time when the stock price target is $50, then the company’s score on the stock price target (assuming a 20% weight and thus 20 possible points) would be 8 points (40% of the 20 points awarded for meeting the stock price target).
How many points are expected performance targets?
Meeting each expected performance target is worth some number of points based on the scoring weight you select (the default scoring weights—which we recommend using—are 20% or 20-points each). For instance, if the scoring weight for EPS (or ROE or stock price or image rating or credit rating) is 20%, meeting the EPS (or ROE or stock price or image rating or credit rating) target earns a score of 20 on the EPS (or ROE or stock price or image rating or credit rating) performance measure.
How are company performance scores calculated?
Using the assigned weights (or corresponding number of points out of 100), each company’s performance on the 5 measures is tracked annually and company performance scores are calculated from two different angles: the “investor expectations” standard and the “best-in-industry” standard.
What is the Investor Expectation Score?
The Investor Expectations Standard involves calculating an annual “Investor Expectation Score” based on a company’s success in meeting or beating the five investor-expected performance targets each year. There is also a Game-to-Date or “all-years” Investor Expectation Score that shows a company’s success in achieving or exceeding the expected performance targets over all years of the exercise completed so far. Some important aspects of how the Investor Expectation (I.E.) Scores are calculated are summarized below:
How much does the BSG underestimate?
The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. The closer your actual numbers are to your estimates, the more likely it will be that you earn bonus points from the Bull’s Eye Award (be within a 5% range of the estimates).
How long can you pay off a BSG loan?
In the upper right box, you can spend your excessive cash. 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.
What is the most important thing to do in a game?
Two of the most important things to do here are analyzing your competition and optimizing your values . Optimizing your values is the essence of the game, even though it might be very time-consuming. However, if done right, it is worth the time as it will yield the maximum profit possible and success in your industry.
Why is the industry average off the +2%?
This is because your competitors are adjusting and trying to find their strategy. However, after 3-4 years, your competitors will settle and changes will be more predictable. The two most important values you want to have as precisely estimated as possible are the industry’s average wholesale price and S/Q rating. While +2% might now always be spot on, I have made the best experience with it so far. However, if you want to do it more precisely, note down each industry’s percentage change over the years and use this number instead of the +2%.
How much should I bid on celebrities?
I would always encourage you to bid on available celebrities. However, with a reasonable price. I personally would not bid higher than $5,000 – $6,000. If you see little action on the celebrity market, go ahead and get your celebrities for the lowest price possible ($500). 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. As always, do not forget to save your decisions after you are done.
How to adjust competitive intensity?
First, click on the “Adjust Competitive Intensity” button that can be found on the top middle of the page. A window should pop up where you can select each of the four regions and change the industry average S/Q rating and competitive impact. Select +2% for the “Percent Change in Competitive Impact of All Other Factors from Previous Year”. Do this for all four regions.
Is market share important in BSG?
Do not worry about your market share percentage or any other value than your net profit. 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.
Why is it important to win the BSG game?
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.
How to improve your chances of winning a 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.
How long does it take for a BSG to generate?
The BSG generates the complete outcome of each year’s operations roughly 20 minutes after each decision made around the deadline. 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.
What should you have in a BSG game?
In the BSG game, you should have objectives, becoming the top, the leading group, and the other improving the outcomes of each game you play. The least make more profits after every game and not getting into bankruptcy after few rounds of play.
What happens to the same strategy in round 2?
From round 2, there is a risk that other groups can set the same strategy with the winner – can be you. More than two groups following the same strategy suffer the same difficulties since they create direct competition among their target market. That is regardless of the low price, high quality, or variety of models.
Why do students use the BSG?
Students use the BSG to cultivate managerial skills for decision-making purposes. Several colleges and universities use the Business Strategy Game in teaching and learning strategic management at their schools of Business Management.
What is business strategy game?
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. Besides, your team of managers will develop the critical thinking they need to move beyond the functional management of the company as a whole.
How to win BSG?
For easy winning of your BSG game, you need a high quality/low model or a mid-quality/high-model strategy. With this strategy, you will be sure to make profits, which is the key to this online game. Contrary, if you pay attention to revenues or ending either cash or market share, you are bound to lose. Therefore, pick your winning strategy – profits and stick to it.
What is a BSG game?
Well, this is possible through the Business Strategy Game (BSG). The Business Strategy Game (BSG) is online games in which students form teams that are assigned tasks and compete in running the business of an athlete footwear company. The rule of the game is to compete with the other students’ teams to stay ahead to gain a competitive advantage ...
How to increase ROE in BSG?
Pay off your outstanding debt, issue stock, repurchase stock and give bonuses to shareholders. This way, you increase your net income, therefore increasing the ROE, EPS and stock prices. No matter how small it starts, always give a dividend and increase the rate as the game moves on. This way is how you increase ROE in BSG, even with a small margin. Should the need to buy capacity arise, always consider issuing stock as opposed to taking loans. If you have a low stock price, repurchasing stock is a better option for increasing ROE and EPS.
What are the main aims of BSG?
However, in the BSG game, the main aims are to increase image rating and staying ahead in the competition, maintaining the growth of the earnings, return on average equity investment, among other things. These are the factors that need working to increase image rating in the BSG game.
What is the rule of BSG?
The rule of the game is to compete with the other students’ teams to stay ahead to gain a competitive advantage over other teams. Acquiring success is the primary objective in business, and it requires working on all the vital factors to achieve it. However, in the BSG game, the main aims are to increase image rating and staying ahead in ...
How to increase wages in a company?
When it comes to wages, try reducing their pay first so that you may increase the profits. Contrary, you can increase the employees’ wages in percentages at a time. Toggle between 6% and 8% or up to 14% to maximize profits across the regions.
How to increase corporate image rating?
Even though corporate citizenship is associated with wastage of money, you can still increase your image rating if you pick some of the options therein. Go for the strategies that best optimize your image ratings, and the best would be the Ethics Training. Put on “All Employees” as well as workforce Diversity program. These are the ideal options to increase your image rating. Going further can lead to more spending and consequently putting pressure on your revenue while decreasing your profits. This scenario will eventually lead to a loss.
How to boost EPS?
One way to boost EPS is to pursue actions that will raise net income (the numerator in the formula for calculating EPS). A second means of boosting EPS is to repurchase shares of stock, which has the effect of reducing the number of shares in the possession of shareholders—net income divided by a smaller number of shares yields a bigger EPS.
How to calculate cost of pairs sold?
Cost of pairs sold as a percent of net revenues. This ratio is calculated by dividing total costs of goods sold by net sales revenues. A company’s cost of pairs sold includes all production-related costs, any exchange rate adjustments on pairs shipped to distribution warehouses, any tariff payments, and freight charges on pairs shipped from plants to distribution warehouses. Net sales revenues represent the dollars received from both branded and private-label footwear sales after exchange rate adjustments. Low percentages for the cost of pairs sold are generally preferable to higher percentages because they signal that a bigger percentage of the revenue received from footwear sales is available to cover delivery, marketing, administrative, and interest costs, with any remainder representing pre-tax profit. Companies having the highest ratios of production costs to net revenues are candidates for being caught in a profit squeeze, with margins over and above production-related costs that are too small to cover delivery, marketing, and administrative costs and interest costs and still have a comfortable margin for profit. Production costs at such companies are usually too high relative to the price they are charging (their strategic options for boosting profitability are to cut costs, raise prices, or try to make up for thin margins by somehow selling additional units).
What does higher EPS mean?
Higher EPS values indicate the company is earning more net income per share of stock outstanding. Because EPS is one of the five performance measures on which your company is graded (see p. 2 of the FIR) and because your company has a higher EPS target each year, you should monitor EPS regularly and take actions to boost EPS.
Why are low percentages for the cost of pairs sold generally preferable to higher percentages?
Low percentages for the cost of pairs sold are generally preferable to higher percentages because they signal that a bigger percentage of the revenue received from footwear sales is available to cover delivery, marketing, administrative, and interest costs, with any remainder representing pre-tax profit.
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...