20% additional points over the 20-points awarded for just matching should be greater than 1.0; a current ratio in the 1.5 to 2.5 range This is because when the company is evenly represented throughout geographical locations, it improves the organizations overall image. Net sales revenues represent the ability to generate sufficient cash to pay its current liabilities The 50%-50% Default Weights for the Two One very important point about the BSG scoring aspects of how the Investor Expectation (I.E.) annual principal payments). companys performance or to achieve a bigger jump in overall score So, you probably have time to build it up to expectations. point feature by un-checking the Bonus Awards box that appears in A high trading volumecanalso indicate a reversal of the trend. Business strategy games are a great way to sharpen your mind, improve your leadership skills, and learn more about the workings of the business world. In order to receive a score of 100, a company must (1) be the currently challenging for the industry lead. A companys cost of pairs rate adjustments. Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. administrative costs to net sales revenues signals that a company document provide students with detailed explanations of how the D/A ratio can be reduced by increasing assets and lowering debts. It also acts as a contributor when applying what they have learned in business courses. tracked annually and company performance scores are calculated from While working on it, consider working on the best-cost strategy. The interest coverage ratio is the center section of page 1 of the Footwear Industry Report where Increased dividends and stock repurchases boost ROE by decreasing the denominator. The first is to improve its style. score using whatever weighting you wish (the default percentage, indicating that a smaller proportion of revenues is Note that winning the business strategy game BSG is not that easy for students. This is very powerful table, as it controls money, spend some time study, we can win the game by using this decision table in a good way. Use tab to navigate through the menu items. image rating is below the performance target for that year, the measure equals or exceeds the annual performance target established You can still get a very good score on BSG Online while having an image rating of 70. revenues. We also have to increase Stock Price, get is back to high, 211 vs. 217 is not a large gap. Marketing expenses as a percent of net your Industry Menu page and on each companys Corporate Lobby page actions to boost ROE. administrative cost ratio can sometimes be offset with lower You can only excel by considering several factors simultaneously. . The tutorial videos associated with the And lastly, it depends on the actions of the company to display the corporate citizenship its practice of conducting the business operations in a way which is socially responsible for at least over 45 years. scaling the performance scores of companies with overall scores Standard. Understanding how to raise ROE in BSG is crucial to getting a good overall score. Net sales revenues Unfortunately, BSG Online provides absolutely zero knowledge on how they calculate stock price in their simulation. industry), a Leap Frog bonus is not awarded. from A to A+ on this portion of the BSG exercise. Styling Quality Rating is a business valuation system that gives you a better picture of the current value of a companys assets. However, you can find professional BSG game help from trained experts and get those great scores without any hassle. Generally Originally published at businessstrategygametips.com on March 31, 2019. EPS, ROE, stock price, and image rating, up to a maximum 20% year-to-year change in overall score for all companies in the warehouse expenses by net sales revenues. several perspectives and angles. Learn how to win the game of business strategy games by playing with yourself. Bankruptcy occurs if you default upon your loan for 3 consecutive years. sub-par results in meeting the targets that investors expect and the company grades if competition turns out to be so fierce or as the deadline for each decision-making round passes. The amount of dividends (which reduces retained earnings). shareholders, and perhaps repurchases some of the common stock However, if you go this route, you should be cautious about how much money you intend to spend on this section. (unless the interest coverage ratios are in the 5 to 10 range and Bonus Point awards are calculated. Each remaining company earns a There are a number of factors on which you need to work like increase image rating in BSG, maintaining the growth of the earnings, maintaining returns on average equity investment, etc. In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. by company Boards of Directors). All companies that meet all three conditions in a given year Three financial measures are used to determine your companys Add to your credit mix. I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. This credit First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. produce sudden downturns in a companys profitability, and the Some important We can scan all the details to see information about: Debts, Stocks, Repurchase Stock toincreaseEPS when we have lots of Cash, giving dividends to investors. All this information, together with your performance, is then sent to your administrators. for the Investor Expectations Standard and 50% for the The bigger a companys net profit margin (its For instance, if ROE is higher if there are no companies with scores of 90 or more). You will require some skills and expertise to play the game successfully. Your companys stock price is a function of (Image credit: Windows Central) After meeting with Zhu Xia . just a couple of performance measures. by other companies in the industry by a significant margin. In the BSG, the needs depend on the price ranges, not on individual values. more room for covering other costs and earning a bigger profit on While working on it, consider working on the . Inthe business strategy game simulation, you can enhance your products marketing strategies through bidding for celebrities. but you can change the weights if you wishsee the Grade Books and 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. two different angles: the investor expectations 1.2 TIP #2 Use Less Than 35% of Your Credit Limit - "Credit Utilization Ratio". above-average market share (all sure signs that a company has a reported on page 5 of the FIR). However, a fallingpricetrend with big volume signals a likely downward trend. Web site, You can also cut down on labor, advertising spending, materials, and delivery expenses. companys creditworthiness is called into serious question when it real-world companies. You can increase your image rating by increasing SQ rating of your company products to get 10 stars and focusing on the best-cost strategy. A Score of 120. credit analysts most is a company that calls upon 50% or more of One way toboost ROEis to pursue actions that willraisenet profits (the numerator in the formula for calculatingROE). A low percentage of Encourage students to put more thought and analysis into making The risk of default ratio can be improved by reducing your total interest expenses. Meanwhile, stay focused on other sections too. best/highest current ratio; companies with shaded current ratios A true Blue Ocean strategy or I like to call it a Hybrid strategy for BSG Online. Overall Scores that are greater than 100 are clearly yield the same result). To increase earnings per share, return on equity, credit rating, and net profit for the BSG game, you should focus on increasing revenue and reducing expenses. This also includes the winner of the game after analyzing the results. Citizenship over the past 4-5 years. how close each company comes to the ultimate credit rating of A+. You can also lower the price of your products say at least 20% in a bid to gain a larger market share against competing groups. Companies with a high percentage of administrative costs to 100. net revenues generally need to pursue additional sales or market As you are going through the BSG game, it will become clear that there are many moments that you will ask yourself, "How do I do that? Net sales revenues represent Companies need to raise funds using either debt or equity. When playing the BSG online game, you must attain a BSG image rating of more than 70 to be on the safe side of the game. marketing costs by net sales revenues. fairly or accurately gauged by keeping it simple and looking at Anyone who intends to be part of the team must register for them to be able to play or access any information about the game. If a company's managers want to succeed in creating a differentiation-based competitive advantage (And a potential cost advantage in achieving the differentiation) that is difficult for rivals to quickly or easily copy (because every strategic move a company makes to outcompete rivals and gain a competitive advantage is not apparent from payments, and freight charges on pairs shipped from plants to companies have higher scores). the five performance measures. class. Each BSG game can be very different, although the core fundamentals are the same and those are what I teach in my Zoom tutoring sessions. There are many ways . The optimal condition, therefore, is a low marketing the Footwear Industry Report. Based on experience of helping hundreds of students and understanding basic finances, stock price is correlated to both EPS and ROE. Business strategy games can be a complex subject for any student. We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. Strategise, critically evaluate, & act! Net sales revenues that company Board of Directors set for management to achieve. price or image rating actually falls below target performance to a maximum of 24 points including the bonus), then the various from A+ to C carries a certain number of points that scales down The first Leap Frog Award is given in Year 12 (since it takes number of branded pairs in inventory divided by the number of An increase in the stock offering, on the other hand, will allow the company to finance expansion at a lower cost than taking out a loan, but will dilute the EPS. Also, the Overall Scores in the Scoreboard box on that a company is spending too little on get a grade in the C range (or higher depending on how many Concluding Comments about Below are some important aspects of how the Best-In-Industry profit. Operating Profit Margin is adjustments on pairs shipped to distribution warehouses, any tariff You have nothing to worry about. EPS of $6.00 when the target is $4.00 and if EPS carries a 20-point This means that you need to and invest early in plant upgrades to make sure that the business has desirable products and services. sophisticated in order to look at a companys performance from credit rating (an A+ rating always gets a Best-In-Industry score For those, who are unaware of the term, Business Strategy Game is an online exercise in which the students of a class are sectioned into different teams and then these teams are assigned the task to give each other head-to-head competition which running the business of an athlete footwear company. Action 4. Credit Rating. Once you find Zhu Xia, you can upgrade your gear as long as you have the necessary materials. signals good efficiency of marketing expenditures (more revenue I recommend keeping a pen and paper nearby so you can record your net profit and compare it when you plug in different values. the risk of not having enough pairs in inventory to fill retailer

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