Like I said before, you should be building capacity, yes. Yes, its not too late yet to follow through with my tips. It almost worked TOO WELL. We always provide best S/Q with reasonable price just 15% higher than Industry Average, with Largest collection 500 models and also largest networks of retailers worldwide. Otherwise, their endorsement effect declines. These three strategies can help. PS: I do the 5-year-loan 12,000k in Y11 (7% interest); In year 12, I paid #1 Long-Term (early payment) 12k at 8.2% AND borrow 70,000k 5-year-loan at 4.5%. Decades of experience in warehousing and distribution can be an incredible advantage. Any thoughts? How can the company defend the position if you are leading? Hence, try to keep your internet price at least 40% higher than your wholesale price. You have successfully adjusted to your competitors. If you add capacity it will show you the price. I am in Y12, and I am adjusting for Y13. Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, and Best Practices Training all affect the S/Q Rating. While this was driven . I cannot make any money there. This is very helpful. Students use the BSG to cultivate managerial skills for decision-making purposes. This would leave you with a bunch of shoes unsold. 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? Same for your superior material. It is not. Try out different combinations that keep you at 8* and the highest possible net profit. For this blog post, I will concentrate on the high-quality + low model strategy. With our strategy, you might want to think about getting Option A as well. Concerning changing others values, I recommend reading my initial post where I have explained everything in detail. No worries, it will be easier after the first few years. My team and I are going to the second round of decisions, so I think were still on time to switch towards another area in the market. total sales volume estimate into the Branded Pairs to be Manufactured in Year XXslot for North America, write down your reject rate and add it to your previous total N.A. This is why building additional capacity is so important. 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. However, if you need a few points for the image, consider using the Corporate Citizenship but take note of the expenses. This like a trial and error process and does not necessarily have to make sense. For only $35, get instant access to the Business Strategy Game Guide. (0 for both stock issues and stock repurchase). 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. I will explain soon, how to increase plant capacity and why we need the capacity for private label. You can also ensure the S/Q since it is the first decision. 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? Hi Lee, Use the remaining 30% capacity to sell shows in private-label! My guide follows the rule highest net profit is key to success. We can check that before making decisions. We note to see Return on Equity, so keep Total Equity lower than increase Ratio of Net Profit. Hi Dennis. This is quite good at the year 19 and later. No worries, this is logical and you did nothing wrong. I like to have around $8-10 million ending cash available after all my decisions are made. The world economic trends are changing fast creating more necessities for the students to develop the ability to be flexible, expert, and adaptable. We will now look at all the decisions you have to make to actually play the game and be successful with your strategy. You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. Sorry for the late reply.. Been starting my new job and working a lot lately. However, the challenge is in crafting and executing a competitive strategy that delivers a respected brand image, keeping the company in contention for an international market leader, produce a good financial performance as that is measured by the earnings per share, return per share, return on investment, stock price appreciation, and credit rating. When evaluating the 3PL provider in charge of your pharmaceutical distribution warehouse, safety is the name of the game. But it is definitely worth it. I usually go ahead and plug in whole dollar amounts for the wholesale price and see how net profit changes. G-Brand will invest more in the Use of "Green" Footwear Materials, Energy Efficiency Initiatives and Charitable Contributions to build a bigger Image of societal Brands. You can know your strategy in several ways. However, do not forget to calculate your possible additional expenses for your celebrities. Even though this game is said to be a business simulation, get rid of the thought that all decisions have to make sense and be logical. (Darius White) The business strategy was a very practical and real-world experience of what it is like to run a major corporation and the rigor it takes to increase earnings per share, return on equity, credit and image rating. What I like about my strategy is that you do not necessarily have to keep an eye on your competitors. Now, I am worried about the future rounds. You need this capacity for the private-label market. We need to look at bottom line to see Cost of Pairs available for Sales. Here, you have the opportunity to sell your existing capacity. In Year 18, we have increased ROE to 26.3% vs. IE of 15%. 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. Hi, Im glad to hear that it helped! Market share is not crucial for your success in the BSG, but profit is. If this is still not enough, add the missing shoes to the other plants Branded Pairs to be Manufactured in Year XX number. I did not forget it, but we will take a look at it later. How to solves this situation ,have you given us any suggestion. For only $35, get instant access to the Business Strategy Game Guide. However, try your best. Fin. sales volume estimate. This can get confusing at the beginning so here is a table to show you the process. For further explanation, please read my blog post. Besides, you can set best practice training high, maybe at 5.000. Study on the go. Moreover, the key is a rational debate with a compromise for everyone to understand why the decision is taken and commit to make it a success. Just plug in numbers and note down your net profit values. Do not focus too much on the market share but focus more on profits. So when following the steps described above, you will have positive ending cash really soon again. If you have beginning inventory from last year (you did not sell all your shoes), try and use the Inventory Clearance option in the lower half of the page. Thank you in advance! This site uses Akismet to reduce spam. Helped me get to the second place! I would then adjust the Percentage of Superior Materials to whatever is needed to match my S/Q Rating with the value plugged in on the Sales Forecast page. Thank you so much for the good recommendations. 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. And profit is what the game is all about. Logistics strategy as an enabler of new business models. With increased competition, prices tend to decrease. Hi! We get out of Year 17 with bad results in ROE because we expand too fast in that year. However, to be able to do so, you need available capacity. Keep track of close competitors, H and others. Sure, you can ask anytime 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? However, there are still some other voluntary decision that will prepare you for future decisions. . The styles or features can be at 50, while the TQM can be set at 2.50. From Company Operating Reports, we focused on Balance Sheets and Cash Flow, we see Total fixed Assets of 573,906; Total Liabilities of 127,335 and Total Shareholder Equity of 446,571. Select +2% for the Percent Change in Competitive Impact of All Other Factors from Previous Year. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. It can also be crippling if leaders . I will just adjust it first and see what happens, thanks a lot:). You want to setEthics Training / Enforcement to All Employees and Workforce Diversity Program to Yes. You will also receive a copy of Currency Made Simple. Should you win, it would mean your tips are more favorable, and your competitors may learn from you. Do this for all the four regions. Do this for all four regions. Hi! We are doing very well, even up and down from 1st and 2nd position but we have a strong and clear visions for future strategy to lead the company at top of market and meet Investor Expectations. 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. You then want to select 0% as the Portion of the $XX mil. If you really need money, I would rather advise you to issue some of your stock. You can do this by checking the bid prices for the previous year. However, I would recommend not taking out any loan if possible. The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. Even though this game is said to be a business simulation, get rid of the thought that all decisions have to make sense and be logical. Entering year 15 I am still doing 8 star but the demand forecast is super low. For all following decision rounds, you do not have to return to this page, as I advise you to always keep those two options and not change anything else on this page. With revised strategy, G-Brand will focus on offering higher quality products, more models, more fashion, to be industry leader in cost for value. The private-label sector is something you do not want to miss out on, especially with our high quality, low models strategy. Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. If you find capacity available for purchase, I would always directly purchase it. We do not leave it in bank or safe. The Business Strategy Game or BSG is a simulation game used by, different colleges for their Business capstone. When contracting a celebrity, your advertising efforts in the Sales Forecast section should not be low. Thanks a lot! Try and set it to Yes. Hi, youre welcome. Worst case, all the demand is already satisfied in your region before your shoes at a certain price is being considered. You can ignore the Internet Marketing and Wholesale Marketing pages because they will just reflect your internet and wholesale decisions that you already plugged in on the previous pages. Higher Net Profit is a key to win the BSG Online Game. Thats one of the things you should never do because you can always use capacity. Warehouse management plays a strategic role in the supply chain by enabling inventory distribution, sorting, or cross-docking processes that strive to meet the growing demand of the market. As such, you can play the game frequently, any time you get it interesting. 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. Now you begin to understand why I earlier said, that if you use overtime for branded production, you should expand your plant capacity for the next year. Optimizations are the last task you can do before finalizing each year. However, some values, such as the Wholesale Price have decreased instead of increased. Free shipping will most likely not increase your profits. If you see little action on the celebrity market, go ahead and get your celebrities for the lowest price possible ($500). I will talk about the Celebrity Endorsements page later. Another important indicator of profitability is the return on equity (ROE). The cost of the game varies depending on the version and the number of players, but typically ranges from $50 to $100. Besides, you can lower the cost per pair of shoes. In year 18, end of the game, G Company has more than 150 million Cash in hand, so we pay old loans to get A+ Credit Rating. In my opinion, I believe the other teams are thinking on exploit the private label. It is best to build only as much capacity as you can afford without taking any loans. Thanks a lot! I adjusted a little bit and the forecast is now close to previous years. However, you must tie your values and settle for the best combination to optimize your net profit. If it is 0%, that is fine as well, do not worry about it. We will keep Expansion of Internet Sales, keep low-cost-strategy with Highest Values that customers can get Online. 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. I am so thankful for your post!!!!!!!!!!!! Should I continue expanding NA or AP and by how much? If Im wrong, Ill post another comment. From experience Id say tho that it is already too late to adjust to my strategy presented. Again, it is important that you keep in mind to optimize your profits. 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. 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. Paying off these loans in advance has the advantage that you will pay less interest over the coming years. Go up and down each decision a couple of times to get the optimal profits. 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. Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. 14. Yes, I would definitely do plant upgrade option C! $50.66 but $50.67 gives you higher profits, go for the higher prices. After you have calculated the manufacturing volume for each region, add up your N.A. 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. For instance, you can change the Industry Average to +2% or +4% to attain the optimal. Most of the decisions you can make here are a waste of money and will not benefit your company. However, if you happen to use overtime at either of the two plants, plan on increasing the plants capacity in this decision round. If so, we need to start building a new factory in LA, eg. More capacity also brings down your costs. Always check the market snapshot and the private-label segment. Hi there! Can you tell us more about the strategy you had ? Your numbers might be a little bit off due to the reject rates. and L.A. volumes and finally plug them into the NA manufacturing slot. Strategies, decision screens, reports and tests. This can make Net profit quite simple, if we produce 12.000.000 pair of shoes, we will get about 144 million Net Profit. My friend and I walk through the simulation on how it works. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. We have never looked in very details of business management like sales margins or even a few percent of market shares. Increase S/Q ratings? Also, I suggest not decreasing your dividends. Hi. Leave everything else unchanged. 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). Net Revenue of 52.76, but cost of 25.43; 3.16 for warehouse; 10.50 for marketing; 1.16 for Admin, make the Net profit of 12.53. G-Brand will continue to make all efforts to use good materials which environment friendly. Unlock this data. You always want to make sure that you produce your sales volume for N.A. Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. 24.51 is low, we can reduce with good factory in AP so increase the margin to much higher. I did not stock issues or issue purchase in the those years. 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. 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. Furthermore, I spent all my cash on hand for dividends and stock repurchase to increase my ROE and EPS as much as possible. If you tweak those numbers, your demand will adjust accordingly. Thank you! Do the same for your E-A and A-P volumes and plug them into the A-P manufacturing slot. These strategies are easy to see in the real world of business. . We were actually thinking on building capacity in LA for next year, however, two of the other teams already built capacity for 6,000 pairs in total (we are only 4 teams in total). The company operations run parallel to those of actual athletic footwear companies. I put $1.00 pay dividends, which turned out 20,000k in total. How can you apply the ancient wise in the Arts of War of Sun Tzu? However, if you experience difficulty winning your game, type Help with My BSG. You will get professional from BSG game help. Keep track of total Net Profit to have enough money to build new factory, or we can always borrow to do so. That combined will give you a good boost for the last year. Let me walk you through the various decision pages and explain you how to optimize each entry. Your team will experience the challenge of coming up with a successful strategy, especially when frequently faced with changing competitive business environment. Your team members will realize that the final decision usually involves compromising between what is needed for the overall company and personal preferences. I would like to ask about the Pay Dividends. My stupidness did not know that I should not pay dividends while Im in LOAN mode. But the plant page did say not recommend to build the plant so I was hesitating. Business Strategy game year 11 Internet Marketing, I need to figure out the appropriate units in the boxes that are in blue for best case scenario Show transcribed image text Expert Answer Transcribed image text: However, you can successfully apply most of the following tips to either strategy. As I keep reading online about different strategies to win, there are some postings that are aligned with the strategy of low quantity of models offered at a high quality and keep increasing capacity. Strategic warehousing impacts all warehouse operations, from inventory management to order fulfillment. We will get ROE higher soon, and faster than other competitors. As the CEO, you need the support of the other company managers. 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. Like I explained in my blog post, do everything that is necessary to increase and maximize your net profits. Total Wholesale Marketing is 12.92 is good now, we will keep maintaining strong marketing to get higher sales volume. Theres everything explained in detail. However, the private-label market is set up the way that only a limited demand is given each year. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. Start off with the values that you know for sure: For the high quality, low models strategy, I recommend starting off with a S/Q rating of 7 stars and 50 models available. However, do not rely on those values. So your costs will be relatively low as well and the private label will be a very important factor of yours. 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. You need the capacity for the private label market. Two of the most important things to do here are analyzing your competition and optimizing your values. I would always encourage you to bid on available celebrities. im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. The most crucial thing is the find out what prices your competitors have. Besides, you dont have to spend more on high-quality materials. Paying dividends will increase your stock price and your ROE.
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