It can be daunting to figure out the branded pairs you need in every region. Select +2% for the “Percent Change in Competitive Impact of All Other Factors from Previous Year”. However, you can successfully apply most of the following tips to either strategy. So, if the other teams are executing the best-cost strategy, make sure your team is the first to reach the 10 stars. However, to be able to do so, you need available capacity. 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? This is very helpful. (In Y11, I did the 5-year loan with 12,000k (7% interest). As for the TQM, the best will be between $0.70 and $0.80. I was wondering how much more additional capacity that I should purchase after I’ve bought the first 1000 for NA. Do not price your shoes too low, so that you will not make any profits with your sales. If it is lower than 40%, your wholesale price will be in competition with your internet price. Is it too late to reduce that to 50 as you suggested in your recommendation? You can either take out a 1-year, 5-year, or 10-year bank loan. Okay! Like I already said in my previous post, the most important thing is to toggle each and every value and pay close attention to your net profits. The novel coronavirus – COVID-19 pandemic is, [caption id="attachment_12660" align="aligncenter" width="638"] How to Win, How to Develop a DNP Project Using an Evidence-Based Approach, Strategies for Writing a Powerful and Convincing, Leadership and Management Assignment Help, The patented styling/quality (SQ) rating of the business in every geographic area. That’s a game changer!! You now have an estimate of how many shoes you are going to sell in each region. Contrary, you can increase the employees’ wages in percentages at a time. The demand depends on your retails, price and quality. The end result counts. This scenario will eventually lead to a loss. I will explain soon, how to increase plant capacity and why we need the capacity for private label. It is definitely around 1.2 though and I recommend starting off with this value. Sounds good, congrats! Worst case, all the demand is already satisfied in your region before your shoes at a certain price is being considered. If you have your AP price set to e.g. I never really watched my EPS or credit rating (ofc credit rating should be a B at least). However, do not price your shoes too high, so that your competitors have a lower price than you and will sell their shoes first. unfortunately I have no experience with adjusting to my strategy in the late-game. I started with 250 models and S/Q rating of 5. This is your new, more precise regional wholesale sales volume. The Models Offered estimate seems pretty fair and you do not have to worry about it. It is best to build only as much capacity as you can afford without taking any loans. You almost can never have enough capacity because what you don’t sell in branded, you can sell in private label and dumb prices there and take away your competitor’s market share. Even though corporate citizenship is associated with wastage of money, you can still increase your image rating if you pick some of the options therein. So, should I decrease pay dividends here to $0.15? 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. and L.A. in North America to reduce costs because of NAFTA. . Thanks for your strategy! Is this … 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). Going further can lead to more spending and consequently putting pressure on your revenue while decreasing your profits. For the upgrade option C is the one to raise 1 star, but the actual cost it can save me every year is not a lot, should I still do that? No matter how small it starts, always give a dividend and increase the rate as the game moves on. They have all changed by +2%, just as you plugged it in. This is depicted by Steps 1 & 2 in the image above.– You will need to take 5 decisions each quarter (as shown in Step 3 above). Hi, After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. However, if you want to do it more precisely, note down each industry’s percentage change over the years and use this number instead of the +2%. The private-label market is a very nice opportunity to gain an advantage off your competitors and take their market share. So far I have only build a 1000 EA plant and additional 500 NA plant. Hi Yvonne. Hi! After you have done this, play around with the values for Wholesale Price, Advertising Budget, Rebate Offer, and Retailer Support (increase/decrease by 100s only, as everything else makes no sense). In my opinion, I believe the other teams are thinking on exploit the private label. Paying off these loans in advance has the advantage that you will pay less interest over the coming years. Hi You have to base it off the HIGHEST wholesale price, just to be safe Like that, all 4 regions are guaranteed to be 40% above wholesale price. In the upper right box, you can spend your excessive cash. 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. This way, you will increase your learning curve while the shoes cost less. So when following the steps described above, you will have positive ending cash really soon again. To do so, first plug in your N.A. Currently, we’re selling 150 models. The sweet spot for games is some moderate level of uncertainty.1 1.See the descriptions of Level 2 and Level 3 uncertainty in Hugh G. Courtney, Jane Kirkland, and S. Patrick Viguerie, “Strategy under uncertainty,” mckinseyquarterly.com, June 2000. 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. I recommend increasing capacity and keep focusing on your profits. More importantly, ensure that you are shipping them from the right plant. The Business Strategy Game (BSG) is online games in which students form teams that are assigned tasks and compete in running the business of an athlete footwear company. You need the capacity for the private label market. Nonetheless, you can decide what is best for you. Hi, you’re welcome. I’m play a new version of BSG ,we have already completed year 17 and now our team have a problem with struck in the middle stage that cost can’t decrease more and this year other company in the industry have a high SQ star and low cost (price war) that we can’t fight them because our cost is too high. Do you wish to learn how to win the BSG online business strategy game? Okay. The tips are: Check for price elasticity, buy stock early, predicting the prices of materials, re … Then, you want to plug in your L.A. total sales volume estimate into the production slot for North America as well and add up your reject rates. There’s everything explained in detail. Again, trying out different combinations and optimizing net profits is key for these values. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. Do not worry about those numbers, they will just show you whether your investment is profitable or not. It will be, trust me. Does it hurt any other factors? as I described in my post, I’d go with the “low models, maximum profit” strategy as it is easy to follow and you determine the market. This means, you have a channel conflict, meaning that your Retail Outlets number will decrease in the next year and less retailers are willing to sell your shoes. However, it will also decrease your ending cash. like should I just follow your tips through all because I kind of get on a bad start. H Company follows the Medium High Quality strategy … However, the private-label market is set up the way that only a limited demand is given each year. However, do not forget to calculate your possible additional expenses for your celebrities. For this blog post, I will concentrate on the high-quality + low model strategy. Hi, I’m glad to hear that it helped! From this highest whole dollar amount, I plug in every possible value around it and find the price that yields the highest net profit. Hi, thanks for the great strategy! Thousands of students playing business simulations have been asking a seemingly simple question from you, their teacher, and peers alike: how do I win the business strategy game? 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. Always check for price elasticity. This way, business … Above this price, you may not sell one shoe. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. Your numbers might be a little bit off due to the reject rates. Because with more capacity, you can offer more pairs in private label and dominate the market there. These are the factors that need working to increase image rating in the BSG game. 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. If you have any questions, suggestions, or comments feel free to comment and I will do my best to help you out. Sometimes, clearing your beginning inventory at a discount will boost your profits. I mainly looked at what they were doing in the private label sector. I have experienced different behavior with bidding on celebrities. 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. Entering year 15 I am still doing 8 star but the demand forecast is super low. Thank you, Fin! Hence, find the combination that gives you the highest profit. congrats on your success! I adjusted a little bit and the forecast is now close to previous year’s. Buy I have quite a lot ending cash. You can only do one upgrade at a time in each region and a total of two updates per region. Let us move on to the tricky part of this decision page. And profit is what the game is all about. Unused capacity kills your numbers and profits! If not, see what positive percentage yields the highest profit for you. It was set Pay Dividends $1.00, which turned out 20,000k in total. On this screen, you can handle your financial decisions for your company. Pay off your outstanding debt, issue stock, repurchase stock and give bonuses to shareholders. I would recommend purchasing the upgrade for both of your plants within the first four years. My team and I are going to the second round of decisions, so I think we’re still on time to switch towards another area in the market. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! By following these tips, you can be sure to win your upcoming BSG online game. This scenario will be, especially when you will want to upgrade the S/Q if you will need a high-quality strategy or upgrade the Production Setup Reduction if you go with a low-quality strategy. Yes, it’s not too late yet to follow through with my tips. Besides, you can price your shoes at least $5 below the average wholesale price in the industry for the region. 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. If you happen to end up with a large surplus of shoes the next year, lower your 1.2 multiplier a little bit to 1.18. 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. In this section, you can upgrade your plants. It covers in detail all of the strategies, concepts, software features and tricks necessary to win the McGraw-Hill Business Strategy Game. Just put in a low to medium bid of between $3000 and $6000. What should I do for year 12 and 13? Decision Entries for the BSG. you should repurchase stock whenever you can. Do the same for your E-A and A-P volumes and plug them into the A-P manufacturing slot. You are almost done for the Sales Forecast decision page. This decision page is mainly a waste of money and we will not spend a lot of time with this page. If the uncertainty is too great—say, the impact of robotic nanotechnology on manufacturing industries—game planners can’t offer enough guidance for the players to make reasoned decisions. Here, you will decide for how much your shoe is going to sell. thank you for your help. Hi. total sales volume estimate into the Branded Pairs to be Manufactured in Year XX slot for North America, write down your reject rate and add it to your previous total N.A. The two most important values you want to have as precisely estimated as possible are the industry’s average wholesale price and S/Q rating. You are now done with your private-label decisions and all significant decisions that affect your net profits. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. Yes, despite your competitors building capacity as well, I recommend increasing capacity in a reasonable amount. Corporate Citizenship. So if one of your markets is not satisfied or prices are high, I would built capacity to “attack” this market and sell a lot of shoes for a cheap price, to guarantee you the lowest price so that you sell all your offered shoes. You can also pay dividends to your shareholders. 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. 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. Please delete one if there is an extra comment. You will soon know why. Gamers like myself who play BSG or Glo-Bus instinctively think… there’s got to be a hack .. or a cheat to either BSG or Glo-Bus. We had a bunch of copycats in practice year 12, but nobody has figured our profit-maximizing, low-cost strategy, and now they’re pursuing higher models in the real game. When it comes to wages, try reducing their pay first so that you may increase the profits. However, keep in mind that your regional endorsement value should not be higher than 400 in any region. You might have the highest profits with 0 advertising budget. However, with a reasonable price. Authorize your construction and you save your decisions. Celebrities will enhance your marketing efforts and help you sell more shoes. I daily (thank you hootsuite for making it so easy!) First, have a look at Market Snapshot, 2 strategies can to go Top of the Game is G and H. G Company follows the High Quality strategy with low number of models. Hello, thanks for the great strategy, it is working (1st place) ! However, it will also decrease your ending cash. If you really need money, I would rather advise you to issue some of your stock. I usually have the highest net profit when setting Enhanced Styling / Features to $50k, TQM / Six Sigma Quality Program at around $0.70, and Best Practices Training at $5,000. Exactly. This range can be worth the price of a celebrity. We guarantee it will pay itself and more. View Invitational Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. Hello. So for the last year I didn’t stick to the rule that the internet price has to be 40% higher than the wholesale price. Here is the real deal ladies and gents! Can you tell us more about the strategy you had ? It is usually best to repurchase stock at the beginning, when your stock prices are relatively low. From experience I’d say tho that it is already too late to adjust to my strategy presented. Put on “All Employees” as well as workforce Diversity program. While +2% might now always be spot on, I have made the best experience with it so far. update them with tips … Increase S/Q ratings? If you found your highest value for the best net profit, move on to the next value and do the same. Hence, keep track of the industry’s internet price and how it changes. So do you mean although we sell exactly same shoes it does not matter even my rival’s price is lower than mine so long as i can maximize my profit? For easy winning of your BSG game, you need a high quality/low model or a mid-quality/high-model strategy. How to solves this situation ,have you given us any suggestion. However, I would recommend not taking out any loan if possible. 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. Do this for all four regions. . I still think it’s a waste to build a plant there, unless you’re selling tons of shoes (high models, mid SQ). Now, I am worried about the future rounds. 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%. If you are completely new and your projected performance box is not showing yet, you have to click the “Save Decisions” button on the upper right-hand corner for the projected performance box to appear. The first is the paid guide. . The overall image of the company will be positively affected. Sometimes that’s cutting expenses, sometimes that’s increasing expenses (even though it might not make sense at first). It is not. You are now all set to dominate your industry and win the BSG! After you have calculated the manufacturing volume for each region, add up your N.A. I have encountered two successful strategies so far: medium-quality shoes (S/Q rating of 5-6 stars) paired with high number of models (250-350 models) and high-quality shoes (S/Q rating of 8-10 stars) paired with low number of models (50 models). This game can be overwhelming, so anything to help other players! honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. Now, you know how to win the BSG online. With this strategy, you will be sure to make profits, which is the key to this online game. Opting for the high-quality strategy allows you to charge more per shoes to increase your profit margins, thus winning your game. If you have remaining production capacity, put it in the provable label market. If you find capacity available for purchase, I would always directly purchase it. Sure, you can ask anytime BSG 2017 - Business Strategy Game - Guide How To Win - V2 Best strategy. I guess because i grew too fast last week, this week’s net profit is negative (I didn’t make any adjustment yet). This way, business is evenly represented in all the regions. It depends on how much private label you sell and whether you want and can sell more – depending on the market, whether its satisfied or not. However, after 3-4 years, your competitors will settle and changes will be more predictable. Business Strategy Game tips and tricks NEVER do this. Companies need to raise funds using either debt … When it comes to branded productions, you will have to toggle the materials, features and TQM to get the right S/Q. I only ever paid attention to my profits and I never ever sold capacity. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. Get Business Strategy Game Tips from Former Business Strategy Game Grand Champion. However, if you happen to use overtime at either of the two plants, plan on increasing the plant’s capacity in this decision round. Beating the Business Strategy Game About the Guide. Hi, Help, hints, tips, and strategy for The Business Strategy Game (Thompson & Stappenbeck) which will greatly improve your game performance. Therefore, pick your winning strategy – profits and stick to it. It can be very beneficial for you. This undertaking will, in turn, offer you a great opportunity of being profitable. In the last section of the Plant Capacity / Upgrades decision page, you can construct a new plant in either of the two regions where you do not have a plant yet or you can build additional capacity to your N.A. Hi Dennis. But this year I have a lot of cash on hand, I upgraded my plant, should I also build the LA plant although I don’t need that much capacity at the moment? 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. im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. Business Strategy Game Tip&Tricks - Free download as Powerpoint Presentation (.ppt / .pptx), PDF File (.pdf), Text File (.txt) or view presentation slides online. The market share of the private label and patented footwear associated with each of the four geographic areas stated in the BSG game. If you demand for branded production is met, put everything else into private label to make sure you don’t have unused capacity. This can be a very tricky decision and you need to analyze your competitors’ prices. So I doubt on his strategy. Do this for all four regions. 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. I’d also like to point out that it appears the developers threw out NAFTA in the new version, so tariffs hurt pretty bad in Latin America.
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