After you have done this for both the N.A. The decision is due tonight I am so nervous but the performance score so far looks good. Warehouse and Distribution Plan Strategies Winning the BSG game is essential. The key factors need to be considers is Cost of Branded Pairs Sold, e.g. 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. With the Business Strategy Game, teams of students run an athletic footwear company in head-to-head competition against companies run by other class members.Company co-managers must make decisions relating to plant operations, distribution and warehouse operations, work force compensation, online sales at the company's web site, sales and marketing, and finance. Warehouse management plays a strategic role in the supply chain by enabling inventory distribution, sorting, or cross-docking processes that strive to meet the growing demand of the market. It was set Pay Dividends $1.00, which turned out 20,000k in total. I have experienced different behavior with bidding on celebrities. You will need those numbers later on. Should you win, it would mean your tips are more favorable, and your competitors may learn from you. PS: I left a comment, but I did not see it and thus retyped. In the above example, we ship from NA factories to NA and LA. Hello. So I doubt on his strategy. BSG Comprehensive Exam (Fall 2019) Flashcards | Quizlet Do this for all four regions. According to the change, you can estimate the next years average industry internet price and plug it in. 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. Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. 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. I am in need of help with the Business Strategy Game. | Chegg.com Market share is not crucial for your success in the BSG, but profit is. If so, we need to start building a new factory in LA, eg. Your team will experience the challenge of coming up with a successful strategy, especially when frequently faced with changing competitive business environment. (Which affects all 5 factors: EPS, ROE, Image Rating, Credit Rating and Stock Prices). Then, just like you did before, plug in different values for your internet price and see, which price yields the highest net profit. Set your price to whatever maximizes your profits. internet-marketing B Company- Year 11 Heip Print save | Chegg.com Please delete one if there is an extra comment. So, should I decrease pay dividends here to $0.15? I recommend building additional 1,000 capacity for the North American plant in the first year, if your cash balance allows it. Company operations parallel those of actual athletic footwear companies. Here, you will determine the Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, Change in Annual Base Wages, Incentive Pay, and Best Practices Training. Moreover, we will invest on advertising and make use of celebrity appeal to gain brand consciousness. Although we are still ranked 8th in the world and 1st in the. Each decision period in the BSG represents a year, and the company you will run began its operations 10 years ago. We give you. Same for your superior material. You are almost done for the Sales Forecast decision page. However, do not forget to calculate your possible additional expenses for your celebrities. Leave everything else unchanged. You can still ship pairs from LA to somewhere else if needed. Results in a one-time productivity increase of 100 pairs per year at each facility. It is best to build only as much capacity as you can afford without taking any loans. so idk what i may have done LOL, Hello, may I ask my is not that great at the moment and we are onto year 13 which is like 2nd year maybe of the game and i try my best to like follow your tips though not as fully cause I still dont understand much especially the calculation one a bit confusing cause I am bad at that, so far I have 7 s/q rating though I am unsure should I do lower models or not cause I am afraid it might not be enough for profit and all because most I see at average of rating and high models , I was wondering what can I do to make it better? 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. However, keep track of profit since you are cutting from the profit for PR products. If you have any questions, suggestions, or comments feel free to comment and I will do my best to help you out. unfortunately I have no experience with adjusting to my strategy in the late-game. This decision page is mainly a waste of money and we will not spend a lot of time with this page. Often provided as part of an integrated enterprise resource planning (ERP) suite of business applications, a WMS can support and help to optimize every aspect of warehouse management. My team and I are going to the second round of decisions, so I think were still on time to switch towards another area in the market. Beat the Business Strategy Game. It can also be crippling if leaders . After you have calculated the manufacturing volume for each region, add up your N.A. PDF The Business Strategy Game Im glad I was able to help and good luck to you! As such, your views and analysis of the information in the latest Company Reports, in Footwear Industry Report, and the Competitive Intelligence Reports will serve as the basis for agreeing upon any strategy changes or making a revised set of decisions for the following year. And I would not build another plant, rather increase capacity in the plants that you already built. This is the key to affect our strategy in the next five years. Hi Dennis. The issues depend on cost of production. In the Private-Label Production field, use all your remaining available capacity, even overtime. But you need to identify your strategy first in the following three aspects: How can you identify your strategy? After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. Also do you know the cost of building additional capacity. We even understand the very details such as marketing per pair of shoes, cost of warehouse, administration per pair of shoes, which can contribute to the total cost making the Net Profit higher or lower then decide the Business Results and overall market development. In this section, you can upgrade your plants. Again, trying out different combinations and optimizing net profits is key for these values. You can do this by checking the bid prices for the previous year. You will also receive a copy of Currency Made Simple. The Business Strategy Game provides your team with the opportunity to discuss the real business issues while working together to assess the options and make decisions linked to the overall company strategy. However, it will also decrease your ending cash. Sometimes, clearing your beginning inventory at a discount will boost your profits. 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. To win BSG game simulation, you need to follow some ingenious tips that are essential business strategy game tips that your team should focus on: Business Strategy Game simulation isnt easy to win, but if you work with these ingenious tips, you can make profits and win your BSG game without a hassle. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. The cost of the game varies depending on the version and the number of players, but typically ranges from $50 to $100. like should I just follow your tips through all because I kind of get on a bad start. havr the highest stock price, image rating at 90, A+ still, and double digit EPS. Free shipping will most likely not increase your profits. More capacity also brings down your costs. Play with your numbers around and tweak them to generate maximum net profit. 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. If it is 0%, that is fine as well, do not worry about it. This way, it becomes a living guide for decision-making for the entire company. Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. While +2% might now always be spot on, I have made the best experience with it so far. From experience Id say tho that it is already too late to adjust to my strategy presented. On this page, you will set your values for your branded production. However, if you loose and the share price will go down. Most of the decisions you can make here are a waste of money and will not benefit your company. How can you apply the ancient wise in the Arts of War of Sun Tzu? Dont forget to upgrade your plants as a strategy. Most players play hard from the first round, thus increasing S/Q, the number of models, reduce the price, putting for advertisement three times higher than average, and bidding for celebrities. However, I would recommend not taking out any loan if possible. 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. Try out each and every value and note down the highest net profit values. But it is definitely worth it. Moreover, your strategy needs to be actively communicated to each level of management regularly. What I like about my strategy is that you do not necessarily have to keep an eye on your competitors. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Do I need to change another setting on another page for this to remain positive? We will now look at all the decisions you have to make to actually play the game and be successful with your strategy. Be careful: Sometimes, especially for advertising, numbers that are way off (for example $100 and $8,000) can yield about the same net profit with only a little difference. If you have any questions, feel free to come back and ask them. The most crucial thing is the find out what prices your competitors have. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. How can the company overcome tough competitors who seem to know most of the things you know? Always check the market snapshot and the private-label segment. And should I do stock repurchase this year? Business Strategy game year 11 Internet Marketing, I need to figure out the appropriate units in the boxes that are in blue for best case scenario Show transcribed image text Expert Answer Transcribed image text: So, how can you win the BSG game? Avg. values have changed. With revised strategy, G-Brand will focus on offering higher quality products, more models, more fashion, to be industry leader in cost for value. Check the Competitive Intelligent Report. Toward that end, it put in place responsible environmental policy that ensures more decisions for community. Im 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 cant decrease more and this year other company in the industry have a high SQ star and low cost (price war) that we cant fight them because our cost is too high. All footwear But the plant page did say not recommend to build the plant so I was hesitating. The Business Strategy Game: A Reflection sales volume estimate. You always want to make sure that you produce your sales volume for N.A. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. Q&A. But again, thanks! In order to be continue higher competitive and perform to the higher levels, there are still some areas in which the company can focus to operate better. . Like I explained in my blog post, do everything that is necessary to increase and maximize your net profits. Do not focus too much on the market share but focus more on profits. You can also win if you settle for Mid quality and a High number of models. It can be very beneficial for you. After you are done, move on the left side and do the same for your internet sales. $50.66 but $50.67 gives you higher profits, go for the higher prices. Here, you have the opportunity to sell your existing capacity. BSG Guide - How to Win the Business Strategy Game.pdf. my advice would be to read my guide and follow the steps. 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. You will soon know why. When we do so, look at estimations to keep control of ROE and EPS. Thank you! Hi, thanks for the great strategy! You will get the hang of it after the first few decision rounds as it is always the same procedure. While those two values do not change your S/Q rating, they will change your net profits. But strategy wise I always sticked to my maximum net profit strategy which you can do no matter your competitors strategy. You can win the game if you follow the High quality and the Low number of models. A warehouse management system (WMS) is a software solution that aims to simplify the complexity of managing a warehouse. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. I started with paying $0.05 dividends and increased it by $0.05 every year. And Im so thankful for your post!!!!!!!! The world's most streamed artist Bad Bunny, a Puerto Rican rapper, alone claims 8.3 billion streams. However, do not price your shoes too high, so that your competitors have a lower price than you and will sell their shoes first. And profit is what the game is all about. After you have decided to which region to ship your shoes to, go ahead and set your Superior Materials Usage value and your Enhanced Styling / Features value. Thanks a lot! I dont know why the game suddenly changed your numbers but I recommend using every last bit of your capacity. I am in a box where every move I make to lower cost or shift production lowers my EPS or credit rating. NEVER do this. It is not. This way, you end up buying the share at a lower price. So the question is: would you recommend for my team to still increase capacity despite this fact? Almost done, the last decision page. At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. Any thoughts? Do not price your shoes too low, so that you will not make any profits with your sales. Otherwise, their endorsement effect declines. Business Strategy Game (BSG) Helpful Tips!!! - YouTube If you found your highest value for the best net profit, move on to the next value and do the same. I only ever paid attention to my profits and I never ever sold capacity. Thats one of the things you should never do because you can always use capacity. For further explanation, please read my blog post. I was wondering how much more additional capacity that I should purchase after Ive bought the first 1000 for NA. In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. I am so thankful for your post!!!!!!!!!!!! I am on my second year and I have negative income right now, any tips on how to get in the positive? We have quite large Total Shareholder Equity of 446,571. Private label will help you dominate your competition. From Year 19, if any, we have over 100 million cash in hand and Net Profit every year, it will be better financial status for us to expand or invest in upgrading new factories, or even produce at higher stars 8, 9 or 10 stars. Yeah I had that in the first weeks as well. As such, you can play the game frequently, any time you get it interesting. We have two plants in year 11, and growth rate of market is about 5-7%, during 10 years from year 11 to year 20 we will need to double may be triple production capacity. Also, we can upgrade NA in C and one other option. Tips: We ship from NA to LA because no import tax or tariffs due to NAFTA (North American Free Trade Agreements) - The North American Free Trade Agreement, or NAFTA, is a three-country accord negotiated by . 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. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. If it is lower than 40%, your wholesale price will be in competition with your internet price. With increased competition, prices tend to decrease. Sure, you can ask anytime Winning your Business Strategy Game is not easy as it involves wide-ranging decisions on various aspects of the companys operations. The styles or features can be at 50, while the TQM can be set at 2.50. With our strategy, you might want to think about getting Option A as well. Business Strategy Game - Week 5 (Year 14) - YouTube thank you for your help. Yeah I will hold on to that for now. Go up and down each decision a couple of times to get the optimal profits. Like I said before, you should be building capacity, yes. Besides, you can lower the cost per pair of shoes. That is regardless of the low price, high quality, or variety of models. We will upgrade AP in C and one other option. You should slightly increase your dividends year by year. 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. 24 Pros & Cons Of Starting A Distribution Warehouse Business (2023) You need the capacity for the private label market. Once you get the Main Menu for running the company, print a copy of the Year 10 company reports, a summary of the footwear industry report for year 10, and competitive intelligence reports. That is overall good. If you add capacity it will show you the price. You said that the internet price should be 40% above wholesale. This means, without increasing your superior material or enhanced styling / features, you gain 1 star. Also, G-Brand believes that every organization has a social responsibility to promote harmony within the community it exists. I was thinking about building a LA plant because I took the majority of private label there last year. So for our strategy, it should be 7 stars at the beginning. Can you tell us more about the strategy you had ? . (In Y11, I did the 5-year loan with 12,000k (7% interest). Find out how much you want to bid for each celebrity. As already mentioned earlier, not every decision has to make sense. 14. However, to be able to do so, you need available capacity. But do whatever is necessary to maximize your profits. Increase S/Q ratings? After you have found the right price, click the Save Decisions button. Build new factory in LA and upgrade to C and one more, may be D. Keep NA and LA for controlling Private Label, this year will also requires high S/Q so we have good advantages. We also ship from AP to EA, AP and some to LA. Net Revenue of 52.76, but cost of 25.43; 3.16 for warehouse; 10.50 for marketing; 1.16 for Admin, make the Net profit of 12.53. 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. The private-label sector is something you do not want to miss out on, especially with our high quality, low models strategy. Here, you have to tie materials, styles, or features and TQM until you attain the desired S/Q. This has been very useful. You need this capacity for the private-label market. Quiz 2 Chapters 1 an 2.docx. We have never looked in very details of business management like sales margins or even a few percent of market shares. construction cost to be financed with debt. Try and set it to Yes. I would recommend purchasing the upgrade for both of your plants within the first four years. If your team faces these kinds of challenges, seeking BSG help online could be the best option. In the first year (Year 11), you only have two factories, and you need to distribute to four markets. And then I would just follow my tips and adjust all other values to maximize profits. If Im wrong, Ill post another comment. Total Wholesale Marketing is 12.92 is good now, we will keep maintaining strong marketing to get higher sales volume. ROE indicates how much profit is generated with the investments that shareholders made. 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%. BSG Report, Part 3 Distribution Warehouse Business's typically involve a much greater degree of movement than other lines of work. 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. Keep focus, year 17, we over sleep in Victory, and ignore competitors. However, the private-label market is set up the way that only a limited demand is given each year. Is there anyway to increase the demand for my shoes in the internet/wholesale markets? For the next five years from Year 18, we will continue: To provide highest quality branded athletic shoes to the global market at a competitive price. Thank you, Fin! Therefore, ensure your profit increases after every round to make the game better and for real business. Another important indicator of profitability is the return on equity (ROE). You are now done with your private-label decisions and all significant decisions that affect your net profits. As always, do not forget to save your decisions after you are done. The following tips can help you get around the BSG and possibly be the winner. Hence, keep track of the industrys internet price and how it changes. Besides, you can set best practice training high, maybe at 5.000. Logistics strategy as an enabler of new business models. 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 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. When doing so, you have to plug in numbers for the assumptions section in the new window. Moreover, you can benefit from Business strategy game help where professional BSG players have many years of experience. I will talk about the Celebrity Endorsements page later. Plant Capacity - BeatBSG I always went with 500 every second year, but it depends on your market and competitors. We will work tirelessly to ensure that our shoes are within reach of purchasing and get the high quality shoes with very large selection. Hence, find the combination that gives you the highest profit. However, traditional warehouse management systems are not designed with the flexibility or technology capacities to address ongoing challenges in the . You will not have any complaints about the quality of the assignments we deliver. Learn tips & tricks, from a BSG Grand Master! I wish you the best of luck for your game. The company operations run parallel to those of actual athletic footwear companies. Yes, I would only add capacity onto existing plants and not build new plants. Entering year 15 I am still doing 8 star but the demand forecast is super low. 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. Do you know why is that? Download the iOS My friend and I walk through the simulation on how it works. 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. . Here, you will plug in your previously calculated regional total sales volume for each region. but out industry there is a direct competitor for me, he is also star 8 and 50 models, and he prices so low for wholesale, only 47! Helped me get to the second place! This way, you will save more money while getting a high S/Q. How can we apply the wisdom of strategies like Cao Cao to Professors Peter Drunker, Igor Ansoff, Philip Selznick, James Collins, Bruce Handerson, Michael Porter, and Alfred Chandler, among others? Keep in mind to check your profits and ensure they get as high as possible. You can only do one upgrade at a time in each region and a total of two updates per region. Hi! Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. I usually go ahead and plug in whole dollar amounts for the wholesale price and see how net profit changes. Its not too late to do that yet. You have successfully adjusted to your competitors. Also, make decisions about the number of models, then the price. The Business Strategy Game is a hands on learning exercise that will give The Students valuable decision-making practice and develop powers of business judgment. For instance, you can change the Industry Average to +2% or +4% to attain the optimal. Do not worry about your market share percentage or any other value than your net profit. These are the three most crucial decisions to make in the game. Team members run the simulation company efficiently while competing successfully. Look at the demand for each market, then divide each plant supply for each regional market. I am currently dominating my industry, and closing in on the top 100 list! Hence, make sure to plug in every possible value to reach the highest net profit possible. As the CEO, you need the support of the other company managers. The Strategic Role of Warehouse Management in the Supply Chain Business Strategy Game Simulation - bsg-online.com
