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Settings for Home Rename Delete Move to Rich Text Content. Do you want to learn more essential tips that will help you win BSG? Let's take an inside look. BSG Game Tips 1. Teamwork Collaboration is core to winning the Business Strategy Game.
Here are two objectives that will help you rise Aim to become the lead Improve the results after every game 3. Improving Image Rating The best-cost strategy can help you improve the image.
A Strategy That Always Wins You may hear some of your colleagues' talk of different strategies that keep winning. Is there a strategy that always wins? Conclusion Although BSG seems challenging to get through, you can get enviable grades.
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Update ePortfolio Cancel. I did not forget it, but we will take a look at it later. On this page, you will set your values for your branded production. Again, maximizing net profit is all you care about with our strategy determined at the beginning. At the lower half of the page, you also determine how many branded pairs you want to manufacture in each region you have a plant. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. So for our strategy, it should be 7 stars at the beginning.
Again, trying out different combinations and optimizing net profits is key for these values. However, do not rely on those values. Go ahead and try out which combination yields the highest profits. It is all about trying out all possible combinations. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. Hence, find the combination that gives you the highest profit. It sometimes works.
If not, see what positive percentage yields the highest profit for you. After you have done this for both the N. 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. While your regional sales volume for the internet segment is a good estimate, the estimates for the wholesale segments are not. So, multiply your sales volume for the wholesale segment for each region by 1. This is your new, more precise regional wholesale sales volume.
If you happen to end up with a large surplus of shoes the next year, lower your 1. 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.
It is definitely around 1. After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. You now have an estimate of how many shoes you are going to sell in each region. This can get confusing at the beginning so here is a table to show you the process. While you already have a good estimate of how many shoes you are going to sell in each region, you still need to consider your rejected pairs during production.
To do so, first plug in your N. Then, you want to plug in your L. You always want to make sure that you produce your sales volume for N. After you have calculated the manufacturing volume for each region, add up your N.
Here is a chart again tho show you the process:. If your regular production capacity is not sufficient, use overtime. You need the capacity for the private label market.
I will explain soon, how to increase plant capacity and why we need the capacity for private label. Here, you will plug in your previously calculated regional total sales volume for each region. Important: Your Sales volume, not the production volume that includes the rejected pairs!
As already mentioned, it is important that you ship all your shoes for the North American warehouses and the Latin American warehouses from the North American plant. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. If numbers do not add up correctly and your total pairs shipped do not match your total pairs available, go back to the Branded Distribution page and adjust your numbers accordingly.
Your numbers might be a little bit off due to the reject rates. 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. I will talk about the Celebrity Endorsements page later. The private-label sector is something you do not want to miss out on, especially with our high quality, low models strategy.
It can be very beneficial for you. However, the private-label market is set up the way that only a limited demand is given each year. The company that offers the lowest price will sell all its supply first, followed by the company with the second lowest price offered, and so on. In the Private-Label Production field, use all your remaining available capacity, even overtime. 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.
You need this capacity for the private-label market. Now, decide to which region you want to ship your private-label shoes. 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. Similar to the branded production, try out the different values to see which combination will give you the lowest Average Production Cost value for your plant and hence, the highest profits.
Here, you will decide for how much your shoe is going to sell. No worries, it will be easier after the first few years. Do not price your shoes too low, so that you will not make any profits with your sales. However, do not price your shoes too high, so that your competitors have a lower price than you and will sell their shoes first.
Worst case, all the demand is already satisfied in your region before your shoes at a certain price is being considered. This would leave you with a bunch of shoes unsold. Otherwise you will not sell any shoe either.
The private-label market is a very nice opportunity to gain an advantage off your competitors and take their market share. Hence, it should be your goal to price your shoes lower than everyone else and take their market share so that other companies will not sell any private-label shoe in this region. However, to be able to do so, you need available capacity.
This is why building additional capacity is so important. You are now done with your private-label decisions and all significant decisions that affect your net profits. This decision page deals with your plants. You can decide to sell or purchase available capacity, upgrade your plants, build new plants in other regions, or add capacity to already existing plants.
Here, you have the opportunity to sell your existing capacity. NEVER do this. You need your capacity and it is never a good idea to sell your existing capacity. If you find capacity available for purchase, I would always directly purchase it. In this section, you can upgrade your plants. One option that you definitely want to purchase is Option C.
Especially with our high quality and low models strategy, this will be very beneficial and will safe you some money. I would recommend purchasing the upgrade for both of your plants within the first four years. With our strategy, you might want to think about getting Option A as well. However, it is not necessary and Option C is definitely more effective. You can only do one upgrade at a time in each region and a total of two updates per region.
With our strategy in mind, I would recommend addition capacity to already existing plants rather than constructing a plant in a new region. I recommend building additional 1, capacity for the North American plant in the first year, if your cash balance allows it. When doing so, you have to plug in numbers for the assumptions section in the new window. Do not worry about those numbers, they will just show you whether your investment is profitable or not. It will be, trust me.
It is best to build only as much capacity as you can afford without taking any loans. Authorize your construction and you save your decisions. On this decision page, you can bid on celebrities. Celebrities will enhance your marketing efforts and help you sell more shoes. When contracting a celebrity, your advertising efforts in the Sales Forecast section should not be low.
It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. The higher your celebrity endorsement value for a specific region, the more your advantage in attracting buyers to purchase your branded footwear.
However, keep in mind that your regional endorsement value should not be higher than in any region. Otherwise, their endorsement effect declines. I have experienced different behavior with bidding on celebrities.
I would always encourage you to bid on available celebrities. However, with a reasonable price. If you bid on multiple celebrities, it is good to set a ranking priority and a spending cap so that you do not spend more money than you want or have available. As always, do not forget to save your decisions after you are done. Almost done, the last decision page. On this screen, you can handle your financial decisions for your company.
In the upper left box, you have available sources of additional cash. You can either take out a 1-year, 5-year, or year bank loan. Your interest rates depend on your credit rating and the duration of your loan. However, I would recommend not taking out any loan if possible. If you really need money, I would rather advise you to issue some of your stock. In the upper right box, you can spend your excessive cash. When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years.
Paying off these loans in advance has the advantage that you will pay less interest over the coming years. You can also pay dividends to your shareholders. Paying dividends will increase your stock price and your ROE. However, it will also decrease your ending cash. At the end, I increased dividends to boost my ROE. In addition, you have the option to repurchase your stock. It is usually best to repurchase stock at the beginning, when your stock prices are relatively low.
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. I prioritize building additional capacity and purchasing plant upgrades.
If you have more cash available, go ahead and spend it for either one of the other options. Do not sit on it. However, do not forget to calculate your possible additional expenses for your celebrities.
Wow, you are done! Optimize your advertising dollars by finding the balance between trimming excess spending, growing your market share and fetching the highest possible price for your products. Anticipate your competitors' strengths and weaknesses. Exploit areas where they are weak to gain market share or to increase profit margin. An underserved market will pay what you charge especially if you're the only player or if your product is significantly better than other offerings.
Answer: This should be heavily dependent on market intelligence. Work with the forecast, as well as historical data; locate the markets that are underserved, focus on your strengths by maintaining dominance in markets where you do well, expand your footprint to markets where your rivals show weakness. Answer: Understanding your competitors' strategy will help you to beat them. You will need to do a detailed analysis of the intelligence reports each time the simulation runs, in order to assume correctly what offensive and defensive strategies are most suitable.
The timing of these assumptions are also important for example in the later years of the simulation is will just make more sense to invest in paying down debt, stock buy-back and dividend increase rather than new factories, training, and technology because there isn't sufficient time to achieve an ROI. How can we fix this?
Answer: Quality best affects online sales, however wholesale is price sensitive. The actions of your competitors are likely hurting your scores, for example, if they have tweaked their production to create the same quality product at a lower cost then they will gain an advantage in several ways including higher ROI, more savings available for plant investments, debt servicing, advertising, stock repurchase, etc.
React to your competitor's strategy, anticipate their next moves. Question: My class will be limited to only playing through week 15, how do I need to alternate my strategy? Answer: I would recommend initiating stock buyback right away. Focus on dominating the US, Europe, and Asia markets. Secure the best celebrity endorsements to help you achieve this goal, celebrity endorsements are a great boost for online sales.
I hope this helps. People will wait for their favorite kicks, phone, games, gadget as long as it appeals to them. Question: My team has placed at the bottom for the last 2 years, how do we improve our figures? I've tried most of what you suggested. Answer: Competitive and market intelligence will affect the nuance of your strategy. If your competitors are 'besting' you at applying their strategy then they will continue to dominate.
Two competitors could apply a very similar strategy but one has the benefit of several celebrity endorsements whom they've locked into multi-year deals at low bids, therefore, they will enjoy a competitive advantage in internet sales in the regions where these celebrities appeals are most potent. Answer: Early investments in upgrades to plants and training can pay big dividends in the following years by lowering the cost per pair.
However, you must ensure that prior to investing in any upgrades that there is adequate time remaining in the simulation for ROI. Workers' productivity is sensitive to your rivals' compensation package you will have to outdo them in this area as well to keep your people happy, your rejection rate lower and hence your cost per pair.
Answer: Warehouse cost is a fixed cost. I believe what your're looking at lowering is the cost of having excess inventory on hand, and because some inventory is necessary in order to fill orders quickly Question: Is there any negative impact this year or in the following ones if a take a loan as high as neccesary to repurchase as much stock as possible? EPS and ROE will increase and the following year I can sell stock to pay the loan and keep the earning due to stock price increase.
If your speculation turns out to be correct then there are only a few drawbacks 1 Your credit rating will likely be impacted 2 When you sell shares it will dilute your stock value. Answer: Significant stock repurchase will help to push up your stock price. Spending on employee ethics training, and green initiatives will improve your corporate image.
In a dead heat race - all other things equal having the best Corporate image will give you the will with socially conscious investors.
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