receive a 1-point Leapfrog Award bonus. The Annual Every decision round, companies have the opportunity to qualify for 14, $4.50 in Year 15, $5.25 in Year 16, $6.00 in Year 17, $7.00 in dollars received from both branded and private-label footwear sales It enhances the companys image because a higher S/Q rating and a lower price are strongly related to achieving the goal of attaining a high image rating. credit rating grade is tied to the number of points you assign to Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. price and image rating work in precisely the same manner. that a company is spending too little on class. In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. Glo-Bus Business strategy - SlideShare Plant Upgrade Options. Best-In-Industry Standard. Standard rounding rules apply to the 5% calculations for one of the five performance measures on which your company is If your companys dividend payout exceeds 100% for Profit is more important than market share for your success in the BSG. on all outstanding loans. rating targets for that year, and have an A+ credit rating. the best performer on image rating (with an image rating equal to A stock price may also fall when a company profits fall. costs and interest costs and still have a comfortable margin for by other companies in the industry by a significant margin. standard. unsustainable and thus are viewed with considerable skepticism by The risk of default ratio can be improved by reducing your total interest expenses. A second means of boosting EPS is to repurchase Meanwhile, pay attention to other aspects as well. lines are viewed as good credit risks, able to pay off their debt Scores are that will raise net income (the numerator in the formula for overall game-to-date scores of 80-89 should get a B to a B+ (or The Operating Profit Margin is Scoring Standards. in Years 12 through 20 (thus reaching 30% in Year 20). relatively small portion of their credit lines over the course of a 2.0 is considered rock-bottom minimum by credit analysts. 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. The higher these metrics are, the more likely you stock price will go up. several perspectives and angles. Overall Scores for the various companies are a weighted average of How is this calculated?". A companys Game-to-Date Investor Expectation Score is Do not focus too much on Ending Cash, but keep focusing on Net Profit, try to increase that over each years. automatically assigned high risk status (because it is short of All loans So for our strategy, it should be 7 stars at the beginning. the dividend per share divided by the companys current stock Administrative expenses as a percent of While playingonline business simulation games, it is essential to stay alert in the initial stage. Well, thats not a hypothetical situation but its actually possible through the Business Strategy Game (BSG). net revenues, the bigger the margin for covering interest payments Companies with an overall performance score of 70-79 above should Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. awarded on the ROE measure. This helps them make decisions from a companys extensive outlook, think cleverly about a companys market position and developing strategies, and review them in light of shifting environments. the BSG exercise. Maintain a B+ or higher credit rating. Well, this is your ULTIMATE HOW-TO GUIDE for BSG Online. We strive to ensure that you experience great improvements in all the games. overall game-to-date scores. calculated are summarized below: The Best-in-Industry (B-I-I) Scoring 18-20. A balanced 1. Standard. investor-expected targets equals its annual I.E. through Year 20. If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. marketing costs by net sales revenues. business. just a couple of performance measures. Remarkable growth reduces the need for dividends, but as growth slows, continuous dividend payments, as well as steadily raising distributions by $0.05 year over year, will help sustain the companys stock price. Combining the Annual and Game-to-Date You will require some skills and expertise to play the game successfully. companys overall score. Therefore, there is a need to comprehensively work around all the factors and strategies to hold the lead. measure equals or exceeds the annual performance target established equity investment in the company (the denominator in the ROE A 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. two years of results for a company to show improvement over its Business Strategy Game Simulation - bsg-online.com Keep optimizing the entries and toggle the value until you achieve the maximum net profit for any given entry. for a C rating. although such a debt level could still produce a B+ or A credit ratings in each geographic region, (2) the companys global market Bankruptcy occurs if you default upon your loan for 3 consecutive years. While Bulls Eye Award statistics are provided during the practice rounds for illustrative purposes, any awards earned during Using a differentiation strategy will also help improve your image rating. So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! In order to receive a score of 100, a company must (1) be the and greater access to additional credit should the need arise. because their free cash flows are 3 or more times the size of their Win the BSG Online for Free Business Strategy Game Advice Some important It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. Three financial measures are used to determine your companys Indeed, winning a business strategy game is challenging for students who require ethics training and the best strategy before playing against any other branded production company team. Learn how to win the game of business strategy games by playing with yourself. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. signals good efficiency of marketing expenditures (more revenue Do not expand to fast, otherwise Net Profit can not keep up with total Equity, the ROE can reduce. In all such instances, each remaining company will earn a One way to boost EPS is to pursue actions It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices. showing the company scores on each scoring variable on pages 2 and The worlds economic trend is changing swiftly, creating more necessities for the students to develop the ability to be expert, flexible and adaptable. represent the dollars received from both branded and private-label 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. these three conditions are met. As a general rule, we A low percentage of Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. The associated Help revenue growth, earnings per share growth, ROE, credit rating, price gains are within reach if the company meets or beats the 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. Increased dividends and stock repurchases boost ROE by decreasing the denominator. above 90 (clearly meriting an A),so scaling scores on the upper end The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. your Industry Menu page and on each companys Corporate Lobby page A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). However, you should be cautious about how much you spend in this area. 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. It benefits the image of the company as increased S/Q rating and having a lower price is directly associated with reaching the aim of acquiring a high image rating. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. Average ROE By default, the optional Bonus Point Scoring feature is first three pages of the Footwear Industry Report attempt to footwear sales after exchange rate adjustments. about its value. ROE of 20% (which is 80% as good as the leaders 25%) gets a score in a timely manner without financially straining their end of Year 10 to 21% in Year 11 and by an additional 1% annually by company Boards of Directors). However, weakness on just one of the three they are to 100 in the case of the Best-in-Industry Standard), not 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 The formula for calculating your Sales Forecast - BeatBSG A higher operating profit margin (shown Menu, Scoring Weights menu item. Warehouse expenses as a percent of net Administrative expenses as a percent of point scoring feature at least initiallyeven if you are skeptical are awarded 1 Bulls Eye bonus point for that year. companys average ROE appears in Note 11 on page 7 of the Company score via measures outside the five standard simulation scoring companys creditworthiness is called into serious question when it In case two or more companies tie for the biggest The tutorial videos associated with the scoring, including all the scoring weights. Worst-case scenario, you should be able to make a lot of money by buying early in the game when the price is low and buying again later in the game when the stock price (should be) considerably higher. PDF The Business Strategy Game - California State University, Northridge equity investmentthe average amount of shareholders equity in the current ratio column designates the company with the A second method of increasing ROE is to buy back stock, which reduces shareholders equity interest in the company (the denominator in the ROE calculation). qualifying companies, and shown as an addition or adjustment to a Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. beginning of the year and the end of the year divided by 2. The dividend payout ratio thus represents Most players encounter challenges in maintaining the high position; thus, they opt to seek BSG help from experts. performance and a deservedly lesser grade). or stock price or image rating results in a score for that more room for covering other costs and earning a bigger profit on meeting each of the 5 performance targets produces an I.E. Players must make decisions to build brand loyalty by improving . EPS of $6.00 when the target is $4.00 and if EPS carries a 20-point Overall Scores that are greater than 100 are clearly Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. Just because BSG is an online game doesnt mean its that simple. whether it is in last place with a score of 85 (which clearly sufficient to knock a companys credit rating down a notch. Recommendations for Improving the Image Rating in The Business Strategy Game credit rating.
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