business strategy game tips

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. Select +2% for the Percent Change in Competitive Impact of All Other Factors from Previous Year. Take advantage of my highly-guarded distribution decision strategy that Ive used to reap the benefits of the complex tariff rules and exchange rates. This decision page is mainly a waste of money and we will not spend a lot of time with this page. This will enable you to tap into the different unique abilities of each of the members thus strengthening your team. It is usually best to repurchase stock at the beginning, when your stock prices are relatively low. I took first in the world seven out of ten decision rounds and won the BSI again when my MBA program used the McGraw Hill Business Strategy Game simulation as a learning tool also. Embedded in the magic numbers is a reinforced long-term money-saving strategy that will save you money every year forever! We got our act together and began to study the game. Order now. Furthermore, I spent all my cash on hand for dividends and stock repurchase to increase my ROE and EPS as much as possible. While +2% might now always be spot on, I have made the best experience with it so far. Dave Mar Tips for Lowering Cost and Other Recommendations For Winning the Business Simulation Game Toggle the advertising spending to see the lowest cost at which the company can achieve the desired market share. I feel you. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. Repurchasing stock will boost both your EPS and ROE. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. If you have more cash available, go ahead and spend it for either one of the other options. Any questions you have or any problems you encounter,you can get my expert advice asa BSG Grand Champion. My question is what if I decreased the pay dividends to $0.15 from $1.00? How to solves this situation ,have you given us any suggestion. . The worst thing that could happenis you follow one of these guides to save a few bucks, to implement the strategiesThe Whole World Seesand end up LOSING the Business Strategy Game which may result in a low grade and possibly re-taking the class! For your company to stand out, it should ideally have an image rating of 70 and above. How and when to buy celebrity endorsements at the BSG-Online. It's customized for you to run the company in direct competition with other class members. After you have done this, you repeat the same procedure for Europe-Africa and Asia-Pacific with the A-P plant because it is cheapest to ship shoes from A-P to E-A. Looking at the North America column, you now have to plug in your values for Wholesale Price, S/Q Rating, Models Available, etc. Here is a chart again tho show you the process: If your regular production capacity is not sufficient, use overtime. These are some of the tips you can use to win the business strategy game. It typically keeps increasing until a certain price point and then starts to drop. Thank you very much for your kind words! In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. 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? I see this every semester, and you dont want it to be you. Is your strategy also works for my situation? Let me walk you through the various decision pages and explain you how to optimize each entry. I am having trouble getting my company back into the positive ending cash after taking out a loan. So I run into problem again! Ive turned dead-last severely bankrupt companies into Industry Champions with just two years left in the game. More than often they drone on and on about BSG, to the point, its barely relevant toimpress you with abunch of words. With remaining the cash on hand, try to buy back stock, pay off your loans from the beginning of the game, pay back dividends, and upgrade your plants. Exactly. A celebrity endorsing your product offers a big boost to product awareness, helps a brand penetrate new regions thus acquiring new market shares, and can drive up sales. After clicking on the green Go to Decisions/Reports-button in the corporate lobby, you can see your profits in the lower left-hand corner. However, I would recommend not taking out any loan if possible. Some students even let it ride without making ANY decisions for years! im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. Strategy and Execution is your shield and sword for Conquering the Industry. For only $35, get instant access to the Business Strategy Game Guide. My group and I are about to complete year 17 for the game. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. Hi. Promise I wont have tons of question haha. For further explanation, please read my blog post. In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). The Models Offered estimate seems pretty fair and you do not have to worry about it. And you said I should only add capacity onto existing ones instead of building a new one in LA right? After you have found the right price, click the Save Decisions button. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! In addition, you have the option to repurchase your stock. One time, I was able to increase my net profit by lowering TQM / Six Sigma Quality Program to $0.20 and increasing Percentage of Superior Materials to maintain my S/Q Rating. Turn delivery time to four weeks because it has no noticeable effect on sales but significantly affects EPS and Net Profit. Having an increased S/Q rating and lower prices boosts the image of the company positively. You cannot afford to followsimple techniques and fail! Helped me get to the second place! I prioritize building additional capacity and purchasing plant upgrades. So the question is: would you recommend for my team to still increase capacity despite this fact? Important: Your Sales volume, not the production volume that includes the rejected pairs! You can do this by paying off your loans at the earliest possible time. Is it too late to reduce that to 50 as you suggested in your recommendation? 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%. Strategies, decision screens, reports and tests. After you read the free Business Strategy Game Tips Guide, I recommend checking our Twitter, Facebook, and YouTube channels. Business simulation games allow you to experience certain aspects of running a business in a completely virtual, consequence-free environment. Finished top 3 the first time and we are currently in 2nd place through 5 weeks for our current simulation. This can be a very tricky decision and you need to analyze your competitors prices. I started with 250 models and S/Q rating of 5. Instantly Jump Your Business Strategy Game Score 10 Points for FREE! Beat the Business Strategy Game. Optimizing your values is the essence of the game, even though it might be very time-consuming. If I have cash available after doing all my decisions, I like to alternate between building additional capacity, purchasing plant upgrades, paying off loans and repurchasing stock in the following years. On this page, you will set your values for your branded production. For this blog post, I will concentrate on the high-quality + low model strategy. Any advice? While being in every market is a goal of a successful multinational company. The first time I played, I did exactly what you are doing: researching the internet. I cannot make any money there. You will also receive a copy of Currency Made Simple. Business Strategy Game Tips - . Dont blindly waste recourses on a celebrity tag; be strategic to make sure you will get the return on investment. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. Now, I am worried about the future rounds. Avg. values have changed. Hello, thanks for the great strategy, it is working (1st place) ! Go ahead and try out which combination yields the highest profits. The Business strategy game offers a unique hands-on experience for participants grouped in teams, to run a virtual footwear company and go head to head with other competitors to see whose business strategies win. But if i decrease my model, I dont think I will be competitive enough to compete with him if he stays with his strategy, what do you think? However, my net profit is still negative even after i have adjusted the private-label. However, it will also decrease your ending cash. I will explain soon, how to increase plant capacity and why we need the capacity for private label. Is there a strategy that will always win? Hence, you will only focus on the two following decisions that are worth their money as they increase your image rating the most. 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. As a company wants to be in every market, it will be important to . However, you can successfully apply most of the following tips to either strategy. Hence, keep track of the industrys internet price and how it changes. I am getting my butt kicked! Here are a few things to give you confidence in us: Our guide & coaching took every customer to 1st or 2nd place utilizing the guide. if you have left over inventory, you should either work on your numbers as I described in my post or put the left-over shoes into private-label. Always keep that in mind when formulating your strategies and leave room for adjustment where necessary. After you have plugged in your numbers for both plants and your Branded Pairs Available for Shipment matches your Total Branded Pairs Shipped from each Plant, go ahead, click the Save Decisions button, and move to the Private-Label Operations page. I would recommend purchasing the upgrade for both of your plants within the first four years. After you have done this, you might notice that your Your Estimate of the Ind. Theres everything explained in detail. Contact the Grand Championand Learn more about the BSG. Business Strategy Game - Capitalism Lab. The business level strategy used can be replicated by anyone and is so brain-dead simple that you are destined to win if you apply these techniques. It is important to toggle your values and find the best combination to maximize your net profit. So I have plant in NA, EA and AP, but right now I am only using 70% of the capacity because the demand is quite small for me. 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. Do you know why is that? Chances are it would be a piece of cake right? Your numbers might be a little bit off due to the reject rates. 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). If not, I dont see the need to purchase equipment in order to make more shoes until the demand begins to encroach upon my shoe making capacity. I never really watched my EPS or credit rating (ofc credit rating should be a B at least). Set your price to whatever maximizes your profits. And profit is what the game is all about. After you read the free Business Strategy Game Tips Guide, I recommend checking our Twitter, Facebook, and YouTube channels. Hi! However, if you happen to use overtime at either of the two plants, plan on increasing the plants capacity in this decision round. Help, hints, tips, and strategy for The Business Strategy Game (Thompson & Stappenbeck) which will greatly improve your game performance. 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. 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. R.O.E is the measure of the ability of a company to generate profit. Play with your numbers around and tweak them to generate maximum net profit. I was thinking about building a LA plant because I took the majority of private label there last year. Again, trying out different combinations and optimizing net profits is key for these values. You are playing the BSG but do not want to read the 35-page Players Manual? I guarantee or your money back (with a 100% success rate so far) you'll win the game with the purchase of the guide. If you have your AP price set to e.g. You now have an estimate of how many shoes you are going to sell in each region. It makes sense to do the upgrade before adding capacity. 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. that helped me become Business Strategy Game Grand Champion. As I played the game, I discovered that I could use some fairly simple math to massively increase my game score. If you have any questions, feel free to come back and ask them. This is very helpful. I have experienced different behavior with bidding on celebrities. But the plant page did say not recommend to build the plant so I was hesitating. Make year 11 EASY on yourself and learn how the game is played. Pay attention to the plant upgrade options as well. I now have another question about capacity. So I doubt on his strategy. There are tons of possibilities in the Business Strategy Game, and the wrong strategy in the wrong circumstance willCOST you the game. Entering year 15 I am still doing 8 star but the demand forecast is super low. Those that are already playing the BSG Online and are going bankrupt and/or are dead last. That summer, I played in the Business Strategy Game Best Strategy Invitational (BSI) and won that as well. In my opinion, I believe the other teams are thinking on exploit the private label. Definitely helps! From the desk of: a Business Strategy Game Grand Champion. Concerning changing others values, I recommend reading my initial post where I have explained everything in detail. You now need the forecasted Regional Sales Volume for both the Internet Segments and Wholesale Segments in all four regions that you wrote down earlier. 5. So, play around and find the best combination for your given S/Q rating that yields the highest net profit. Hi, thanks for the great strategy! The same accounts for your Change in Annual Base Wages and Incentive Pay values. Weve solved EVERYTHING for you. Its not too bad, no worries. Complement each other. (meaning I decreases it from $1.00 to $0.15). The information is these guides is laid out, and displayed, in such a way . Thank you so much for the good recommendations. Here, you have the opportunity to sell your existing capacity. It didnt matter how competitive they were, how motivated they were, or whether they were Industry Champions. Again, this can be trial and error for a couple of decisions but you should get a feeling for what multiplier is best for your company. For only $35, get instant access to the Business Strategy Game Guide. Also do you know the cost of building additional capacity. (In Y11, I did the 5-year loan with 12,000k (7% interest). Do not sit on it. If not, see what positive percentage yields the highest profit for you. 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. construction cost to be financed with debt. After you have done this for both the N.A. The BSG Ultimate Solution isTHE ONLYGUARANTEEDone-way ticket to winning the BSG. This is actually typical of almost every single Business Strategy Game Industry, as it takes only 1 greedy person to get the ball rolling. I mainly looked at what they were doing in the private label sector. 4. Learn how to set your prices right by orchestrating your branded market efforts with my intense market advertising and a retail support campaigns that will ensure company stability for years to come. While those two values do not change your S/Q rating, they will change your net profits. Thank you so much for your suggestion! 2. Explanation of the Four Main Strategies of Business Strategy Game with their strengths and weaknesses based upon the Strategic Map, Detailed execution processes for each of the decision screens to produce enlightened results which answer questions, Discover how to become efficient in branded production, the best way to market your shoes, and which upgrades are absolutely ESSENTIAL for your given strategy, Three Year Plan rules simplified to attain the highest score your company can achieve, Business Strategy Invitational Insights for those who want to become Business Strategy Game Grand Champions, Academically proven for positively influencing new Business Strategy Game students to overcome the challenges of starting their company off on the right foot. And should I do stock repurchase this year? $50.66 but $50.67 gives you higher profits, go for the higher prices. Business Strategy Game player with a career stretching back to 2006 and throughmultiple versions of BSG. Like should I add up all my wholesale prices from the 4 regions and then divide by 4 to get an average wholesale price and multiply by 1.40 to get the internet price or should I base it off the lowest wholesale and then multiply by 1.40 to get the internet price? Over the course of many years, I have seen a plethora of situations, companies with a BILLION dollars in debt, people making strategic mistakes that willruinthem in the LATE GAME. Set Models Offered to 50 and Free Shipping to No. I suggest to go for maximum profits. Yes, I would definitely do plant upgrade option C! The end result counts. This enhances the marketing efforts for the brand. I did not forget it, but we will take a look at it later. I highly recommend starting below with my free tips guide. Which is better, cost leadership, integration, or differentiation? We will now look at all the decisions you have to make to actually play the game and be successful with your strategy. This like a trial and error process and does not necessarily have to make sense. While your regional sales volume for the internet segment is a good estimate, the estimates for the wholesale segments are not. I am a Business Strategy Game Grand Champion. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. The styling/quality (S/Q) ratio of the business venture in the different geographic locations they operate in. Order today and you will beprivyto every secret, technique, tip, support, and help I can provide you with thatwill surely secure your SUCCESS and VICTORYas a Business Strategy Game Player. The Business Strategy Game or BSG is a simulation game used by, different colleges for their Business capstone. This will lead to greater visibility for your company and thus a boost in the image rating. After you have calculated the manufacturing volume for each region, add up your N.A. The demand depends on your retails, price and quality. I would look at the Margin Over Direct Costs value at the very bottom of the page to see where it is most profitable to ship your shoes to. It is definitely around 1.2 though and I recommend starting off with this value. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. If your results in the first year are not too good, its not a big deal. Same with all the other values, like I described in my blog post And then use all your remaining shoes for the private label market. My friend and I walk through the simulation on how it works. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Those that are already playing the BSG Online and perhaps want an edge over the competition. Choosing the correct financial approach, among other things, made a huge difference. It is a show to the investors whether their investment is performing well. It has two components. I let the rest remain the same in the entry. Period. What should I do in this case? "In terms of scope and comprehensiveness, it has no equal in the world of business . Sorry for the late reply.. Been starting my new job and working a lot lately. Im glad I was able to help and good luck to you! Dont be fooled by Cheap imitation Business Strategy Game guides you might see online. If you really need money, I would rather advise you to issue some of your stock. If it is lower than 40%, your wholesale price will be in competition with your internet price. As already mentioned earlier, not every decision has to make sense. So, should I decrease pay dividends here to $0.15? These games often involve managing resources, making . First, click on the Adjust Competitive Intensity button that can be found on the top middle of the page. So your costs will be relatively low as well and the private label will be a very important factor of yours. Otherwise, their endorsement effect declines. Since there are many decision making elements in a simulation game, for example in Global Challenge the business management simulation, there are demand, production, HR, R&D, marketing, logistics, transfer pricing and taxation, and finance decisions, instructors should decide "which . Any thoughts? On this decision page, you can bid on celebrities. Once you have enough capacity then switch to low SQ approach. 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. Try out each and every value and note down the highest net profit values. The guide features my original model that provides explanation on strategic positioning in BSG which was developed specifically to expose competitors strengths weaknesses at a glance.

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