Study on the go. You said that the internet price should be 40% above wholesale. Keep focus, year 17, we over sleep in Victory, and ignore competitors. The world economic trends are changing fast creating more necessities for the students to develop the ability to be flexible, expert, and adaptable. Another important indicator of profitability is the return on equity (ROE). And Im so thankful for your post!!!!!!!! That combined will give you a good boost for the last year. 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. Before you even start plugging in any numbers, it is important that you decide for a strategy to pursue for the game. If it increases your profits, leave it at Yes, otherwise set it to No. I started with paying $0.05 dividends and increased it by $0.05 every year. I will walk you through each page chronologically. However, it will also decrease your ending cash. Do not worry about those numbers, they will just show you whether your investment is profitable or not. BSG Guide - How to Win the Business Strategy Game.pdf. What are the niche markets that your competitors dont see? You now have an estimate of how many shoes you are going to sell in each region. We will now look at all the decisions you have to make to actually play the game and be successful with your strategy. We need to keep continue going up to expand and to create new markets. At the lower half of the page, you also determine how many branded pairs you want to manufacture in each region you have a plant. I always went with 500 every second year, but it depends on your market and competitors. Sometimes, clearing your beginning inventory at a discount will boost your profits. In this section, you can upgrade your plants. Results in a one-time productivity increase of 100 pairs per year at each facility. 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. You can either take out a 1-year, 5-year, or 10-year bank loan. Build new factory in LA and upgrade to C and one more, may be D. Keep NA and LA for controlling Private Label, this year will also requires high S/Q so we have good advantages. Hi, Im glad to hear that it helped! But you need to identify your strategy first in the following three aspects: How can you identify your strategy? When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. But this year the shipping is too high from AP to LA so I cannot make any money from LA. And I would not build another plant, rather increase capacity in the plants that you already built. It can be very beneficial for you. Winning your Business Strategy Game is not easy as it involves wide-ranging decisions on various aspects of the companys operations. Thank you! From experience Id say tho that it is already too late to adjust to my strategy presented. 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. You will soon know why. In the first year (Year 11), you only have two factories, and you need to distribute to four markets. Also, consider workforce diversity and ethics training. Same for your superior material. How can the company defend the position if you are leading? In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. Logistics strategy as an enabler of new business models. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. 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). Unlock this data. I dont understand why it did this as this capacity was unused and there was upside to having it as my production was max out for the demand. If you are looking for your teams strategy to be a success, then creation is the first step. Often provided as part of an integrated enterprise resource planning (ERP) suite of business applications, a WMS can support and help to optimize every aspect of warehouse management. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. You can also ensure the S/Q since it is the first decision. 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. so idk what i may have done LOL, Hello, may I ask my is not that great at the moment and we are onto year 13 which is like 2nd year maybe of the game and i try my best to like follow your tips though not as fully cause I still dont understand much especially the calculation one a bit confusing cause I am bad at that, so far I have 7 s/q rating though I am unsure should I do lower models or not cause I am afraid it might not be enough for profit and all because most I see at average of rating and high models , I was wondering what can I do to make it better? How to solves this situation ,have you given us any suggestion. If you add capacity it will show you the price. or A-P plant. 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. We need to control this better in next five years. Hello, thanks for the great strategy, it is working (1st place) ! Warehouse and Distribution Plan Strategies But do whatever is necessary to maximize your profits. This is probably the most important decision entry page in the game and you will be spending most of your time here. However, you must tie your values and settle for the best combination to optimize your net profit. If you have more cash available, go ahead and spend it for either one of the other options. I put $1.00 pay dividends, which turned out 20,000k in total. So when following the steps described above, you will have positive ending cash really soon again. Strategies, decision screens, reports and tests. When evaluating the 3PL provider in charge of your pharmaceutical distribution warehouse, safety is the name of the game. How can you apply the knowledge from the textbooks? Try and set it to Yes. Most players play hard from the first round, thus increasing S/Q, the number of models, reduce the price, putting for advertisement three times higher than average, and bidding for celebrities. We can keep and sell NA after year 16 if we have good and large LA factory. 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. The company that offers the lowest price will sell all its supply first, followed by the company with the second lowest price offered, and so on. Be careful: Sometimes, especially for advertising, numbers that are way off (for example $100 and $8,000) can yield about the same net profit with only a little difference. We always used the 10 decision groups of Finance and Cash Flows in most careful ways to maintain high EPS, in fact we should spend more Cash in hand to buy back Share in early years. With revised strategy, G-Brand will focus on offering higher quality products, more models, more fashion, to be industry leader in cost for value. We are in shoes industry, so we can provide the differentiation with larger Collections. Do this for all the four regions. Worst case, all the demand is already satisfied in your region before your shoes at a certain price is being considered. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. What is Warehouse Management? Benefits, Processes, & Strategies The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. This way, it becomes a living guide for decision-making for the entire company. I would like to ask you about the Dividends. Toward that end, it put in place responsible environmental policy that ensures more decisions for community. Here, you have to tie materials, styles, or features and TQM until you attain the desired S/Q. 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. congrats on your success! 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. Check the Competitive Intelligent Report. Most of the decisions you can make here are a waste of money and will not benefit your company. and L.A. volumes and finally plug them into the NA manufacturing slot. Do this for all four regions. 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. You can know your strategy in several ways. Increase S/Q ratings? I have experienced different behavior with bidding on celebrities. BSG Report, Part 3 You can do this by checking the bid prices for the previous year. We get out of Year 17 with bad results in ROE because we expand too fast in that year. unfortunately I have no experience with adjusting to my strategy in the late-game. We have good Cash in hand over 100 million each years. 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? 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. This can get confusing at the beginning so here is a table to show you the process. 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. But this year I have a lot of cash on hand, I upgraded my plant, should I also build the LA plant although I dont need that much capacity at the moment? 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. If you happen to end up with a large surplus of shoes the next year, lower your 1.2 multiplier a little bit to 1.18. Hence, try to keep your internet price at least 40% higher than your wholesale price. Business Strategy Game Simulation - bsg-online.com From round 2, there is a risk that other groups can set the same strategy with the winner can be you. However, I would recommend not taking out any loan if possible. This support strategy of expansion and getting high Sales, Higher Net Profit and higher market shares. You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales. Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. . Examples, Strategy and Warehousing - Supply Chain Brief 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. What I like about my strategy is that you do not necessarily have to keep an eye on your competitors.
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