I was thinking about building a LA plant because I took the majority of private label there last year. Team members run the simulation company efficiently while competing successfully. Thats a relief. This is your new, more precise regional wholesale sales volume. Texas A&M University, Corpus Christi. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. If you really need money, I would rather advise you to issue some of your stock. Then we can analyze business results to identify new marketing, production strategy. Also, we are doing better than in the past so interest rate is lower. NEVER do this. This decision page is mainly a waste of money and we will not spend a lot of time with this page. I am currently dominating my industry, and closing in on the top 100 list! After you have found the right price, click the Save Decisions button. This can get confusing at the beginning so here is a table to show you the process. We also learn that Loans from previous years may have higher interest rate, we can borrow new loans to pay off old debts, and get higher Credit Rating because we can pay loans. This is the key to affect our strategy in the next five years. This has been very useful. Moreover, consider the best margin for this market and ensure you can have the contract. What I like about my strategy is that you do not necessarily have to keep an eye on your competitors. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. I personally would not bid higher than $5,000 $6,000. Any advice? The S/Q upgrade is the best option if you choose high-quality strategies, while setup cost reduction is ideal if you decide to have several models. On this page, you will set your values for your branded production. These strategies are easy to see in the real world of business. Yeah I will hold on to that for now. So, after expansion of new factory in LA with 120 million, we reduce the number of shares to increase EPS. Hi, Im glad to hear that it helped! However, do not price your shoes too high, so that your competitors have a lower price than you and will sell their shoes first. BSG Guide - How to Win the Business Strategy Game.pdf. The most important advice in advance: it is all about PROFIT. If you have your AP price set to e.g. Company operations parallel those of actual athletic footwear companies. However, some values, such as the Wholesale Price have decreased instead of increased. in years 13-14-15. Leave everything else unchanged. 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. Your numbers might be a little bit off due to the reject rates. We note to see Return on Equity, so keep Total Equity lower than increase Ratio of Net Profit. Hi! Like I said before, you should be building capacity, yes. After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. thank you for your help. We keep the Mission which we built from last 8 years. Toward that end, it put in place responsible environmental policy that ensures more decisions for community. Two of the most important things to do here are analyzing your competition and optimizing your values. You need your capacity and it is never a good idea to sell your existing capacity. In the above example, we ship from NA factories to NA and LA. I will just adjust it first and see what happens, thanks a lot:). Does it hurt any other factors? Almost done, the last decision page. However, traditional warehouse management systems are not designed with the flexibility or technology capacities to address ongoing challenges in the . From experience Id say tho that it is already too late to adjust to my strategy presented. If not, see what positive percentage yields the highest profit for you. Unlock this data. These include; Lowering the costs come with lots of benefits. and L.A. in North America to reduce costs because ofNAFTA. When we do so, look at estimations to keep control of ROE and EPS. Concerning changing others values, I recommend reading my initial post where I have explained everything in detail. This can be a very tricky decision and you need to analyze your competitors prices. In Year 18, we have increased ROE to 26.3% vs. IE of 15%. and L.A. volumes and finally plug them into the NA manufacturing slot. This would leave you with a bunch of shoes unsold. Celebrities will enhance your marketing efforts and help you sell more shoes. 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? However, after 3-4 years, your competitors will settle and changes will be more predictable. However, keep in mind that your regional endorsement value should not be higher than 400 in any region. You will get the hang of it after the first few decision rounds as it is always the same procedure. On initial input of the change there was a big boost to my numbers, but when I left the page the game suddenly dropped my numbers below my original ones. Hi, youre welcome. Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. Graduates are expected to possess broad competencies like problem-solving, critical thinking, and cognitive skills when entering the job market. We give you. The private-label sector is something you do not want to miss out on, especially with our high quality, low models strategy. Yes, I would definitely do plant upgrade option C! Plant Capacity / Upgrades. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. If you set your price lower, you will sell more but lose due to low profits. Authorize your construction and you save your decisions. G-Brand continue to be a good steward of the environment and social responsibility. Okay. How can the company jump over other competitors? Now, I am worried about the future rounds. Also, I am concerned about the prices strategy; the group who is in the first place has the plan of highest S/Q rating (7) with 200 models and lowest prices. Exactly. Keeping track of the closest competitor you would like to get ahead of, check their price, S/Q, and other things like celebrities, advertising, plant capacities, and bidding price. For this reason, you and your team members need to start the BSG by spending more time analyzing the results of each year to figure out the best effective strategies to lay for the next round of the game. 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. Again, maximizing net profit is all you care about with our strategy determined at the beginning. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. My group and I are also playing the new version of the game and were little bit lost. Over Year from 15 to 18, ROE changes up and down 22.5, 18.2 then 20.0 then in year 17 down to 16.8 then up to 24.3 in Year 18. Do not focus too much on the market share but focus more on profits. Market share is not crucial for your success in the BSG, but profit is. Entering year 15 I am still doing 8 star but the demand forecast is super low. Therefore, the first set of decisions your team of managers makes is for year 11. 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. Private label will help you dominate your competition. We get out of Year 17 with bad results in ROE because we expand too fast in that year. And you said I should only add capacity onto existing ones instead of building a new one in LA right? Do not worry about those numbers, they will just show you whether your investment is profitable or not. For example, a WMS can: I have experienced different behavior with bidding on celebrities. You can do this by checking the bid prices for the previous year. Hence, keep track of the industrys internet price and how it changes. And he also purchase 4000 capacity in the first year but no advertising expenses. Try out each and every value and note down the highest net profit values. Is there anyway to increase the demand for my shoes in the internet/wholesale markets? You can only do one upgrade at a time in each region and a total of two updates per region. While +2% might now always be spot on, I have made the best experience with it so far. That is overall good. Hello. 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. Do the same for your E-A and A-P volumes and plug them into the A-P manufacturing slot. But again, thanks! Hi. You possible might decrease your net profits with this, but it is definitely worth it and will pay off in the long-run. 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. Especially with our high quality and low models strategy, this will be very beneficial and will safe you some money. View Invitational Current Adopters of BSG Schools (campuses), institutions, and companies using BSG during the last 12 months. Most of the decisions you can make here are a waste of money and will not benefit your company. Currently, were selling 150 models. I will explain soon, how to increase plant capacity and why we need the capacity for private label. 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. 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. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. View Distribution & Warehouse.pdf from MGMT 5355 at Texas A&M University, Corpus Christi. This game can be overwhelming, so anything to help other players! Definitely helps! Wow, you are done! construction cost to be financed with debt. I feel you. Again, trying out different combinations and optimizing net profits is key for these values. Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. Go up and down each decision a couple of times to get the optimal profits. Thanks! An ingenious business strategy for your team will help your team members to appreciate the significance of the strategy, identify the kinds of trade-offs needed, and demonstrating that with limited resources, not every project can be pursued. Then, just like you did before, plug in different values for your internet price and see, which price yields the highest net profit. Here, you will decide for how much your shoe is going to sell. Do this for all four regions. The company operations run parallel to those of actual athletic footwear companies. You can win the game if you follow the High quality and the Low number of models. 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? On this decision page, you can bid on celebrities. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. 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. To do so, first plug in your N.A. This is quite good at the year 19 and later. If you have beginning inventory from last year (you did not sell all your shoes), try and use the Inventory Clearance option in the lower half of the page. And you can basically never have enough capacity for private label. You are now done with your private-label decisions and all significant decisions that affect your net profits. With our strategy, you might want to think about getting Option A as well. They do their best to ensure that you get the best grades on your assignment. These three strategies can help. 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. Thank you so much for your reply! As such, you can play the game frequently, any time you get it interesting. Thank you so much for your suggestion! 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. 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. Should I continue expanding NA or AP and by how much? Hi Lee, However, do not rely on those values. 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). After you are done, move on the left side and do the same for your internet sales. Sorry for the late reply.. Been starting my new job and working a lot lately. I did not forget it, but we will take a look at it later. Besides, you can set best practice training high, maybe at 5.000. In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). 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. In the upper left box, you have available sources of additional cash. 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. I wish you the best of luck for your game. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! This support strategy of expansion and getting high Sales, Higher Net Profit and higher market shares. Also, G-Brand need to keep high market shares, year 17 market shares are reduced, but G-Brand has get back to Top in Year 18. In my opinion, I believe the other teams are thinking on exploit the private label. The BSG company co-managers must make decisions relating to plant operations, distribution and warehouse operations, workforce compensation, marketing, online sales at the companys website, sales, and finance. It is not. ROE indicates how much profit is generated with the investments that shareholders made. Your interest rates depend on your credit rating and the duration of your loan. In addition, you have the option to repurchase your stock. However, with a reasonable price. Any thoughts? Beat the Business Strategy Game. I hope that helps and good luck! Business Strategy Game - Week 5 (Year 14) Commissar BRO 9.95K subscribers 10K views 6 years ago And so we creep into Year 14. The world economic trends are changing fast creating more necessities for the students to develop the ability to be flexible, expert, and adaptable. However, if you happen to use overtime at either of the two plants, plan on increasing the plants capacity in this decision round. This is very helpful. We need to control this better in next five years. One of the most useful skills we learnt from BSG in Financial Analysis, we have had the chance to read Income Statement and Financial Reports every years, for last 8 years, many time, which we understand more about cost and revenues, details of cost, details of revenue, we notice the importance of loans, interest rate, credit ratings. Yes, I would only add capacity onto existing plants and not build new plants. This way, it becomes a living guide for decision-making for the entire company. You can also win if you settle for Mid quality and a High number of models. We need to figure out most effective ways to increase ROE by increasing Net Profit but keep Total Equity low, not expanding faster than increase of Net Profit. At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. at least one of the two teams has an S/Q of 8* and low prices so far (yes, they are in first place for now) what do you think we should do?. The demand depends on your retails, price and quality. However, you must tie your values and settle for the best combination to optimize your net profit. We will upgrade AP in C and one other option. What should I do in this case? You are now all set to dominate your industry and win the BSG! If you find capacity available for purchase, I would always directly purchase it. But strategy wise I always sticked to my maximum net profit strategy which you can do no matter your competitors strategy. 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. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. Set your price to whatever maximizes your profits. We need to adjust the number of productions to optimal these decisions. 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. However, do not forget to calculate your possible additional expenses for your celebrities. View Adopters Arthur A. Thompson, Jr. John R. Miller Professor Emeritus We do not focus on rebate, time of delivery. 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. 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. It has to find ways expand so that cost of production at high quality still low enough to increase high margin, high market share and getting over all high Net Profit. This Branded Distribution table of decisions seem to need more time. However, keep track of profit since you are cutting from the profit for PR products. Hence, try to keep your internet price at least 40% higher than your wholesale price. like should I just follow your tips through all because I kind of get on a bad start. With that, you can do the same over and over again, for every decision round. With respect to our employees well-being, our G-Brand Company intends is to continue its practices of investing in employee-development and utilize a compensation model that encourages our employees to work hard, while simultaneously striving to be more productive and efficient. In the first years, the estimate of the industry average might be a little off the +2%. You then want to select 0% as the Portion of the $XX mil. Also, make decisions about the number of models, then the price. We always used the 10 decision groups of Finance and Cash Flows in most careful ways to maintain high EPS, in fact we should spend more Cash in hand to buy back Share in early years. This is a good lesson in class that can be valuable in life. If it is lower than 40%, your wholesale price will be in competition with your internet price. 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. We aim to increase market share through factories in three continents, NA, AP and LA. According to the change, you can estimate the next years average industry internet price and plug it in. You always want to make sure that you produce your sales volume for N.A. More effective. Sometimes, clearing your beginning inventory at a discount will boost your profits. But do whatever is necessary to maximize your profits. Do this for all four regions. To this point, you are set to dominate your industry and win the Business Strategy game. If you found your highest value for the best net profit, move on to the next value and do the same. If you demand for branded production is met, put everything else into private label to make sure you dont have unused capacity. Its not too bad, no worries. Do not price your shoes too low, so that you will not make any profits with your sales. A warehouse management system (WMS) is a software solution that aims to simplify the complexity of managing a warehouse. The Business Strategy Game is an online exercise where class members are divided into teams and assigned the task of running an athletic footwear company in head-to-head competition against companies managed by other class members. Also do you know the cost of building additional capacity. However, if you need a few points for the image, consider using the Corporate Citizenship but take note of the expenses.

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