Do not worry about those numbers, they will just show you whether your investment is profitable or not. After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. I let the rest remain the same in the entry. When contracting a celebrity, your advertising efforts in the Sales Forecast section should not be low. This is why building additional capacity is so important. Therefore, the first set of decisions your team of managers makes is for year 11. Like I explained in my blog post, do everything that is necessary to increase and maximize your net profits. Even so, how can you apply the business strategy knowledge and skills in the game? However, try your best. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. is it because I need to add capacity? The Business Strategy Game - Competing in a Global Marketplace If you demand for branded production is met, put everything else into private label to make sure you dont have unused capacity. BSG Guide - How to Win the Business Strategy Game Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. Do this for all four regions. From Company Operating Reports, we focused on Balance Sheets and Cash Flow, we see Total fixed Assets of 573,906; Total Liabilities of 127,335 and Total Shareholder Equity of 446,571. I will talk about the Celebrity Endorsements page later. Winning your Business Strategy Game is not easy as it involves wide-ranging decisions on various aspects of the companys operations. You can lower the costs by increasing training and upgrading facilities. And I would not build another plant, rather increase capacity in the plants that you already built. How can you apply the knowledge from the textbooks? Beat the Business Strategy Game. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. Increase from 3 to 6 activities to support society and environment. 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. Business Strategy Game Simulation In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). 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. Is it too late to reduce that to 50 as you suggested in your recommendation? We can check that before making decisions. We need to look at bottom line to see Cost of Pairs available for Sales. Here, you will decide for how much your shoe is going to sell. Our G-Brand Company will continue to pursue its existing High Quality Average Price Large Collection strategy; However, to increase its market share and thereby increase revenue, our company, focus on Net Profit to increase ROE. Higher Net Profit is a key to win the BSG Online Game. BSG Game Tips | Business Strategy Game Tips | BSG Game Help Wow, you are done! 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. However, if you want to do it more precisely, note down each industrys percentage change over the years and use this number instead of the +2%. If so, we need to start building a new factory in LA, eg. After you have done this for both the N.A. Almost done, the last decision page. Each decision period in the BSG represents a year, and the company you will run began its operations 10 years ago. After you have found the right price, click the Save Decisions button. Besides, you can lower the cost per pair of shoes. Learn tips & tricks, from a BSG Grand Master! This is very helpful. (meaning I decreases it from $1.00 to $0.15). When doing so, you have to plug in numbers for the assumptions section in the new window. Thank you! We note to see Return on Equity, so keep Total Equity lower than increase Ratio of Net Profit. in years 13-14-15. I am in a box where every move I make to lower cost or shift production lowers my EPS or credit rating. Buy I have quite a lot ending cash. Even more important is, to stick to it! However, if you loose and the share price will go down. This means, without increasing your superior material or enhanced styling / features, you gain 1 star. However, some values, such as the Wholesale Price have decreased instead of increased. You can also ensure the S/Q since it is the first decision. As the CEO, you need the support of the other company managers. If you have any questions, suggestions, or comments feel free to comment and I will do my best to help you out. If you add capacity it will show you the price. We need to keep track of cost in more details in next years. The ROE in Year 18 is good back to 24,3% compared with Investor Expectation of 15%. Business Strategy Game is an online business simulation game where class members are grouped into teams and assigned the task of running an athletic footwear company in head-to-head competition against businesses managed by groups formed by other class members. Profit is the key to success in this game! Again, maximizing net profit is all you care about with our strategy determined at the beginning. Okay! and A-P plant, focus on your Total Branded Production Needed to Achieve Year XX Sales Forecast section on the lower half of the page. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. With our strategy, you might want to think about getting Option A as well. However, I would recommend not taking out any loan if possible. You can either take out a 1-year, 5-year, or 10-year bank loan. Here, you will plug in your previously calculated regional total sales volume for each region. 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. unfortunately I have no experience with adjusting to my strategy in the late-game. For this blog post, I will concentrate on the high-quality + low model strategy. The Business Strategy Game: A Reflection So your costs will be relatively low as well and the private label will be a very important factor of yours. So for the last year I didnt stick to the rule that the internet price has to be 40% higher than the wholesale price. G Brand has a Vision to establish a worldwide brand dedicated to innovative design and best provider in quality at reasonable prices, allow becoming a global leader in the athletic branded shoe market. For only $35, get instant access to the Business Strategy Game Guide. Here is a chart again tho show you the process: If your regular production capacity is not sufficient, use overtime. 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. How can the company defend the position if you are leading? Because with more capacity, you can offer more pairs in private label and dominate the market there. In the upper left box, you have available sources of additional cash. You can do this by checking the bid prices for the previous year. Hi Yvonne. If not, see what positive percentage yields the highest profit for you. We will work tirelessly to ensure that our shoes are within reach of purchasing and get the high quality shoes with very large selection. Your team members will realize that the final decision usually involves compromising between what is needed for the overall company and personal preferences. What are the core competitive advantages? But you need to identify your strategy first in the following three aspects: How can you identify your strategy? Results in a one-time productivity increase of 100 pairs per year at each facility. Before you even start plugging in any numbers, it is important that you decide for a strategy to pursue for the game. Look at the demand for each market, then divide each plant supply for each regional market. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. How to solves this situation ,have you given us any suggestion. 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?. Regardless of what the other competitors do in Year 11, your focus should be winning. Sorry for the late reply.. Been starting my new job and working a lot lately. However, traditional warehouse management systems are not designed with the flexibility or technology capacities to address ongoing challenges in the . We are doing well, so Stock Price is high too, over 120, we will buy back some with extra money, cash in hand of G-Brand will be over 150 million every years. You are playing the BSG but do not want to read the 35-page Players Manual? These three strategies can help. Thank you so much! Besides, you can set best practice training high, maybe at 5.000. Graduates are expected to possess broad competencies like problem-solving, critical thinking, and cognitive skills when entering the job market. Also do you know the cost of building additional capacity. Your team will experience the challenge of coming up with a successful strategy, especially when frequently faced with changing competitive business environment. Worst case, all the demand is already satisfied in your region before your shoes at a certain price is being considered. It almost worked TOO WELL. Q&A. However, do not forget to calculate your possible additional expenses for your celebrities. I cant seem to find it. We always provide best S/Q with reasonable price just 15% higher than Industry Average, with Largest collection 500 models and also largest networks of retailers worldwide. 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. 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. We aim to increase market share through factories in three continents, NA, AP and LA. The key factors need to be considers is Cost of Branded Pairs Sold, e.g. You can still ship pairs from LA to somewhere else if needed. Private label will help you dominate your competition. Besides, you dont have to spend more on high-quality materials. NEVER do this. This essay was written by a fellow student. You will not have any complaints about the quality of the assignments we deliver. Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. On this decision page, you can bid on celebrities. Thank you in advance! Moreover, consider the best margin for this market and ensure you can have the contract. Do you know why is that? Do not worry about your market share percentage or any other value than your net profit. What is the companys differentiation strategy? While competing with the other teams in BSG, you need to make informed decisions that can create a difference and take your team ahead of all. Hey!! And profit is what the game is all about. So, after expansion of new factory in LA with 120 million, we reduce the number of shares to increase EPS. It can also be crippling if leaders . You almost can never have enough capacity because what you dont sell in branded, you can sell in private label and dumb prices there and take away your competitors market share. So, multiply your sales volume for the wholesale segment for each region by 1.2. I feel you. 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. A warehouse management system (WMS) is a software solution that aims to simplify the complexity of managing a warehouse. Plant Capacity - BeatBSG The higher your celebrity endorsement value for a specific region, the more your advantage in attracting buyers to purchase your branded footwear. 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. G-Brand will continue to build on its existing strategy (Globa Differentiation Strategy) of attempting to gain a competitive advantage primarily by differentiating the Value and Quality for Price, customers pays for Real High Quality Value and Fashionable athletic shoes with much higher Quality what our competitors would charge for similar products. That being said, when you go with the strategy explained in my post, you will have maximized profits. What should I do for year 12 and 13? This way, you get a clue on the actual standing of the company entering into year 11. 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. To this point, you are set to dominate your industry and win the Business Strategy game. Okay! It was set Pay Dividends $1.00, which turned out 20,000k in total. If this is still not enough, add the missing shoes to the other plants Branded Pairs to be Manufactured in Year XX number. Hello, 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 will be very helpful for us and will be very grateful Do you still have your upload reports of all your years ? Dont forget to upgrade your plants as a strategy. Do the same for your E-A and A-P volumes and plug them into the A-P manufacturing slot. This can get confusing at the beginning so here is a table to show you the process. It is best to build only as much capacity as you can afford without taking any loans. A window should pop up where you can select each of the four regions and change the industry average S/Q rating and competitive impact. But again, thanks! The issues depend on cost of production. Purchasing capacity is 20% cheaper than building new capacity on your own. I cannot make any money there. You will soon know why. Ideally, you can cut your employees wages and will increase profit. When we do so, look at estimations to keep control of ROE and EPS. My friend and I walk through the simulation on how it works. Business Strategy Game is an online business simulation game where class members are grouped into teams and assigned the task of running an athletic footwear company in head-to-head competition against businesses managed by groups formed by other class members. However, with effective BSG simulation tips, you can keep your company ahead of the competition. Through the games, we learn more in-depth knowledge and skills in making decision in big business fields, from Corporate Social Responsibility, to Sales Forecast, which is very important. 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. 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. When I played the game, I barely looked at what my competitors were doing. This way, you end up buying the share at a lower price. You can know your strategy in several ways. After you have done this, you might notice that your Your Estimate of the Ind. Yes, despite your competitors building capacity as well, I recommend increasing capacity in a reasonable amount. You can also win if you settle for Mid quality and a High number of models. Economic Impact of Hurricane Harvey and Hurricane Irma, Temporary Oil Price Changes Hold Back Consumer Spending. Should you consider selling a factory, dont upgrade it because you will lose that investment. At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. 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. To do so, first plug in your N.A. They do their best to ensure that you get the best grades on your assignment.

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