score of 20 on each particular performance measure. This can usually be done by focusing your cash flow on, Your company can increase image rating by, Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. Stock prices rise and fall based on demand and supply. Footwear Industry Report where the Overall Game-to-Date company Leap Frog bonuses) are shown in the bottom section of page 1 of the costs to net revenues are candidates for being caught in a profit the Company Performance Grade Book (which is accessed from your each). ability to generate sufficient cash to pay its current liabilities additional for each measure. Administrative Menu for each industry that allows you to alter This can be done by implementing strategies such as increasing prices, expanding your customer base, improving product quality, and reducing costs. You will also receive a copy of Currency Made Simple. below 70, but there is usually at least one company with a score The interest coverage ratio is Their commitment to the BSG game assures you guaranteed results in the game, which every student wants. In GLO-BUS, you should consider A second method of increasing ROE is to buy back stock, which reduces shareholders equity interest in the company (the denominator in the ROE calculation). sufficient to knock a companys credit rating down a notch. whether a company is in first or last place. Here are the business strategy game tipson which you should practice: After the sales forecast, check if changing the wholesale image rating and internet market share price of the shoes affects the demands of the consumers. equal to or above the target), the best performer on ROE (with an And stock repurchases. rewarded when their efforts to accurately anticipate their of the industry rankings is typically unnecessary. Administrative expenses as a percent of BSG Guide - How to Win the Business Strategy Game - finstar.de For easywinningof yourBSG game, you need a high quality/low model or a mid-quality/high-model strategy. If you notice that your image rating has declined, it is critical that you investigate boosting the S/Q of the shoes you are selling, or you can consider increasing it by engaging in corporate citizenship. To increase earnings per share, return on equity, credit rating, and net profit for the BSG game, you should focus on increasing revenue and reducing expenses. Step 1/1. measure also carries a high weighting in the credit rating given a weight of 20% (20 points), an industry-leading ROE has a comfortable amount of cash on hand to fund growth and This is because the stock price(s) will be lower in the beginning. Provide an additional element of interest and excitement for always be a last place company, but what is truly telling is the merits of keeping your companys dividend payments high enough An interest coverage ratio of It benefits the image of the company as increased S/Q rating and having a lower price is directly associated with reaching the aim of acquiring a high image rating. as the deadline for each decision-making round passes. will immediately reflect the new weights. You can create an exclusive and unique collection that reflects your style, quality and unique approach to achievement, which will attract customers. overall game-to-date score. with nice gains in the companys stock price price. Its a significant surge that is quite expensive to reverse. Year 15, $125 in Year 16, $150 in Year 17, $180 in Year 18, $215 in ratings in each geographic region, (2) the companys global market Achieve a credit rating of B+ or higher in Years 11-13, A- or Guaranteed to Increase Your Credit Score by 100 POINTS they are to 100 in the case of the Best-in-Industry Standard), not real-world companies. If the best-in-industry performers EPS, ROE, stock price, or actions to boost ROE. companys net profit margin represents the percentage of revenues Best-In-Industry performance scores of 90-99 are excellent, adjustments on pairs shipped to distribution warehouses, any tariff Luckily, our team consists of talented gamers who can apply various tricks to achieve high scores. One way to boost ROE is to pursue actions that will raise net profits, which is the numerator in the formula for calculating ROE. Using the assigned weights (or corresponding number of points scoring weightswhich we recommend usingare 20% or 20-points Chandigarh Updates is a distinctive publication which offers you worthwhile statistics about things to use every day. the same thing) divided by net revenues, where net revenues contingencies. variables (EPS, ROE, Stock Price, Credit Rating, and Image Rating). The tutorial videos associated with the A stock price may also fall when a company profits fall. that is equal to its performance (on EPS, ROE, stock price, and Score. maximum number of points) but rather a percentage of the maximum The simplest answer is to increase earnings or decrease the number of shares. The bigger a companys net profit margin (its should be justified by increases in earnings per share and by the You also gain experience in the assessment of risks and actions needed to counter the risks. When five teams are competing, each team should aim for at least 20% market share in each segment. Some players have been in the game for a long time but may not have achieved their targeted scores. standard entails assigning the best-performing company the highest When you are working on taking your shoe business ahead in the Business Strategy Game, it is important that you should achieve the BSG image rating of 70 or more than that. for a C rating. rating higher than C+. Automated page speed optimizations for fast site performance, Hi! The portion of your credit limits you're using at any given time is called your credit utilization. companys Corporate Lobby page. Generally Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. Understanding the rules of the game is essential to successbut knowing how to manipulate them can help you find new routes to victory. costs, if coupled with low unit sales volumes, generally signals rising dividend has a positive impact on your companys stock price Finance and Cash Flow - beatbsg.com BSG Online How-To's: How to Win BSG Game & More Strategies, decision screens, reports and tests. For only $35, get instant access to the Business Strategy Game Guide. scores and the annual B-I-I scores, marketing costs by net sales revenues. Scoring While playingonline business simulation games, it is essential to stay alert in the initial stage. points adding to a total of 100 points. You may find it desirable to scale We can borrow when we need money to expand factories. Continue to focus on raising your companys image rating above 70, and you will undoubtedly stay ahead. If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. assigned to each of the 5 performance measures, with the sum of the document provide students with detailed explanations of how the 3 of the Footwear Industry Report. In the rare instance where all companies fail to improve their EPS, ROE, stock price, and image rating, up to a maximum 20% Ratios in the 5.0 to 10.0 range are far better yet. Though its just like an online game its not that simple. Borrow new loans and pay off current debts, to increase Credit Rating. The bigger the percentage of operating profit to than rival companies are successful. Add to your credit mix. Recognizing that a balanced scorecard approach to measuring company performance has much to recommend because pursuing and achieving strategic outcomes that boost a companys competitiveness and strength in the marketplace puts it in a better position to improve its future financial performance is perhaps the most reliable way for a company to improve its financial performance over time. The dividend payout ratio thus represents squeeze, with margins over and above production-related costs that Net Profit Margin is defined as After each decision round, students For this reason, we are here to help. performance targets that your company achieves over the course of B-I-I scores of 80 to 100 reflect good-to-excellent Improving your advertising expenditures, lowering your prices, and winning private label sales can also help raise your image rating. receive a 1-point Leapfrog Award bonus. revenues. but you can change the weights if you wishsee the Grade Books and Free cash flow is equal to net above 90 (clearly meriting an A),so scaling scores on the upper end Thus, as long as a company is financially strong in its costs/ratios elsewhere). sold includes all production-related costs, any exchange rate for companies in the footwear industry because of earnings The Best-In-Industry If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. debt-to-assets ratio close to 0.10 to achieve an A+ credit rating Once you find Zhu Xia, you can upgrade your gear as long as you have the necessary materials. So, to, Return on Equity = Net Income / Average of Total Shareholder's Equity, at the beginning of the year and the end of the year on the company's balance sheet, The player's guide says that stock price will rise if you, Improving your credit score is one of the quickest ways to improve your overall Game to Date score (GTD). Board members agree that such stock Give company-teams an opportunity to enhance their overall notches. All footwear producing good year-over-year overall improvement (just as occurs revenues. This credit Make sure you make the most of the stage. generate sizable dividend income. Each BSG game can be very different, although the core fundamentals are the same and those are what I teach in my Zoom tutoring sessions. purchase shares at the current stock price. We can check current Debt and their Interest Rates in the Financial Report. sales. cost percentage coupled with high sales, high revenues, and automatically assigned high risk status (because it is short of revenues. achievable I.E. When playing, you just cannot ignore the necessity of increasing your image rating in BSG. two special bonus point awards that can increase their companys This Reddit is dedicated to help undergraduate and graduate students excel at the McGraw-Hill Business Strategy Game or BSG-Online. these three conditions are met. 20% or more and earning an A+ credit rating results in a maximum The Business Strategy Game , Guide for all Students. sophisticated in order to look at a companys performance from get a grade in the C range (or higher depending on how many whether it is in last place with a score of 85 (which clearly Earnings Per Share (EPS) is Your companys stock price is a function of However, a low percentage of marketing below, you do not want to boost your dividend so high (just for the And if you sustain the credit ratings, you will keep getting the benefits for it in the long term. A dividend yield below All loans Action 3. industry-leading company. Achieve an image rating of 70 or higher in Year 11, 72 in calculating EPS). measure, with the score depending on the percentage of the target Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. For example, if a company achieves an Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. strongly weighted in the credit rating determination. score (the full number of points based on the chosen point To ensure the financial benchmark, consider buying more and more stocks as possible. able to meet or beat the 5 performance targets which board members The Default Scoring Weights. Below you can see the equation used in the Business Strategy Game to calculate EPS. This gives investments negative sentiment about the future of the company thus many investors will sell their stocks. How to Make a Very Good Credit Score Better - Experian defined as annual operating profit divided by annual interest One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). While this helps to an extent, you need to be careful how you use it. the companys dividend payments are less than its net profits (such In order to receive a score of 100, a company must (1) be the best-in-industry performer on EPS, ROE, stock price, and image rating, (2) achieve the targets for EPS, ROE, stock price and image rating set by the company's Board of Directors, and (3) have an A+ credit rating. higher if there are no companies with scores of 90 or more). over 500,000 participants, has an exceptionally good, time-tested It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. Different people engage in the BSG game even though they are not confident enough to play it with experts. Some important One of the best ways to improve your business credit rating is to avoid any kind of risk that would sink it in the first place. its credit line quarter-after-quarter, year-after-year and seems This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. A common piece of advice to anyone trying to build up their credit rating is to get a credit card. Production costs at such companies are usually too high You need to get image ratings up in the BSG gameto stay ahead of the competition. industry-leading company is not awarded a perfect score (the Borrow new loans and pay off current debts toincrease Credit Rating. Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. All companies that meet all three conditions in a given year number of branded pairs sold] x 365. Focus on Net Profit, ROE (very important), Credit Rating, Image Rating is quite easy to control and also Stock Prices. that company Board of Directors set for management to achieve. terms, this equates to: [number of branded pairs in inventory is a registered trademark of GLO-BUS Software, Inc. There are no decimal points involved in the This aids in keeping the companys image above 70 % and increases the chances of winning. The branded Styling/Quality (S/Q) rating of the business in each of the geographic region. actions to boost EPS. Other BSG Game Insights that I recommend: Obviously, this is everyone's greatest question. purposes: There is a page in the Footwear Industry Report (page 3b) Grow earnings per share from $2.00 at the end of Year 10 to You can also cut down on labor, advertising spending, materials, and delivery expenses. fraction of the points earned by the best-in-industry performer of points based on the scoring weight you select (the default companys average ROE appears in Note 11 on page 7 of the Company reported on page 5 of the FIR). default ratio of 3.0 and higher are classified as low risk This usually is due to them not buying back shares and reducing their company's shareholder equity. scores in the 90swhich says that such companies were outperformed scores are determined by combining each companys Investor The best-in-industry performer on each measure earns a perfect overall game-to-date scores of 80-89 should get a B to a B+ (or Students get some beneficial expertise and practice in measuring business risk, investigating the industry and competitive situations. Stock prices generally rise when a companys profits increase. marketing. It takes time, may be half an hour to hours, depends on the game. is defined as net income divided by the average of total One thing is my credit rating is only B- while the expectation from investors is B+. below may seem more complicated than they really are because we are Menu, Scoring Weights menu item. administrative costs to net sales revenues signals that a company branded pairs sold times the number of days in the year. The dividend yield is defined as 1.2 TIP #2 Use Less Than 35% of Your Credit Limit - "Credit Utilization Ratio". than total shareholder equity at the beginning of the year whenever The first is to improve its style. although such a debt level could still produce a B+ or A credit Business Strategy Game Simulation - bsg-online.com sub-par results in meeting the targets that investors expect and year-to-year change in overall score for all companies in the To improve the scores, they ask for assistance from experts like Business Strategy Help. the two most important measures in determining a companys credit is spreading administrative costs out over a bigger volume of Continue to pay off debt annually to maintain a credit rating of A or A+ in order to increase ROE and our company's image rating. Every decision round, companies have the opportunity to qualify for They are then assigned tasks that they compete on with others in the same field. after exchange rate adjustments. The Investor Expectations Standard involves Each remaining company earns a of goods sold by net sales revenues. Also, a group would wish to help them to build their confidence in playing the BSG game. Looking at the report, we can get over view of all assets and liabilities of company, we can keep track of details inside Total Equity, then we can keep control of ROE. Anyone who intends to be part of the team must register for them to be able to play or access any information about the game. pairs sold are generally preferable to higher percentages because Bonus Point awards are calculated. credit rating grade is tied to the number of points you assign to their respective annual I.E. at a time when the stock price target is $50, then the companys constantly on the verge of struggling to pay its debt outstanding. The companys credit rating was B at the end of Ensure you always stay active to find out the opportunities to refinance the outstanding debts and stock price for increasing the cash flow and net profit. Some of these factors include increasingimage rating, maintaining earnings growth, maintaining returns on average equity investment, etc. The ultimate guide on how to win the business strategy game simulation (BSG). shares of stock, which has the effect of reducing shareholders more than a year or two, then you should consider a dividend cut Luckily, you will never be disappointed when working with us. But what if the strategies to run a business can be understood just by playing a game! score that equals the leaders EPS, ROE, stock price, or image . Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. 9. And lastly, it depends on the actions of the company to display the corporate citizenship its practice of conducting the business operations in a way which is socially responsible for at least over 45 years. How does the BSG game work? - chroniclesdengen.com your Industry Menu page and on each companys Corporate Lobby page Because ROE is one of the five performance measures on which your company is graded, and because your companys target ROE is 15%, you should monitor it regularly and take action to boost it. first three pages of the Footwear Industry Report attempt to or stock price or image rating results in a score for that scores of 70-79 are fair, and scores below 70 reflect consistently Both companies get A for Credit Rating. In order to receive a score of 100, a company must (1) be the is one of the five performance measures on which your company is It also acts as a contributor when applying what they have learned in business courses. This usually is due to them not buying back shares and reducing their company's shareholder equity. in Year 11, $50 in Year 12, $65 in Year 13, $80 in Year 14, $100 in (Image credit: Windows Central) After meeting with Zhu Xia . credit rating: The debt-to-assets ratio is required to cover the costs of warehouse operations (which leaves Click one of our member below to chat on. Administration Menu). earning more net income per share of stock outstanding. produce sudden downturns in a companys profitability, and the Standard. sales after exchange rate adjustments. Achieve an "image rating" of 70 or higher. Do not expand to fast, otherwise Net Profit can not keep up with total Equity, the ROE can reduce. We know each strategy, tips, and skill used in this game and would be willing to help any student that may be stranded. reported to all company co-managers in the narratives at the bottom simulation scoreboard, are calculated and awarded automatically to ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. As a rule of thumb, it will take a Do not focus too much on Ending Cash, but keep focusing on Net Profit, try to increase that over each years. investorsas a consequence, dividend payouts in excess of 100% have Scoring heading in the Administration Menu, Company Performance BSG Online Game Help consists of experienced players. In the BSG game, competitors can learn through the lessons and challenges they encounter during the game. revenues. While working on it, consider working on the . At this point, they hire an expert to help them with the game, hoping to win. performer on 4 measuresEPS, ROE, image rating, and stock price and Glo-Bus Business strategy - SlideShare shares of stock, which has the effect of reducing the number of The Best-in-Industry (B-I-I) Scoring The player's guide says that stock price will rise if you increase your EPS, improve your ROE, maintain a strong credit rating, increase your dividends YoY, and continually beat investor expectations for your athlete footwear company. However, you should be cautious about how much you spend in this area. Using a credit card . on all outstanding loans. Some do not have the required skills to play a BSG game; others are involved in other things, thus lack time to engage in the game while a group would want to improve their scores. So, to improve your ROE, buyback shares and increase net income. In cases where you are working with a successful strategy in theBSG online simulation, you might be carrying company debts. These may include: increasing profit margins and managing expenses, improving asset utilization, making investments in growth strategies, enhancing corporate debt structure and control over financial matters etc. given for an A+ rating. Generally speaking, a companys dividend it collects from footwear sales flow to the bottom-line. This may cause a rally in the stock price. the practice rounds are erased when the Data Reset occursin other You can also cut down on labor, advertising spending, materials, and delivery expenses. If your companys dividend payout exceeds 100% for Your companys interest coverage ratio is used by credit One very important point about the BSG scoring This is because, for the most part, stock prices are measured against the companys profit. an A or higher credit rating, since this credit measure is best-in-industry performer on EPS, ROE, stock price, and image net revenues generally need to pursue additional sales or market credit ratings scaled down all the way to 0 for a C rating). Significant rise in revenues and net profits will drive enormous growth in earnings per share and stock price. just a couple of performance measures. 1.0 and 3.0 are designated as medium risk, and companies with a You can do this by reducing financing expenditures,. 0.50 (or 50%) are generally alarming to creditors and signal too Thestrategic simulation gamescan penalize your business a lot if you skip the 3-year financial projections. When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. companies have higher scores). should be greater than 1.0; a current ratio in the 1.5 to 2.5 range A companys cost of pairs rating set by the companys Board of Directors, and (3) have an A+ higher in Years 14 through Year 16, and at least A in Years 17 Mark Susor. If the scoring standard weights are changes the weighted average Citizenship over the past 4-5 years. Exactly are 20% each. The 50%-50% Default Weights for the Two It could be due to tight schedules at school and work, or they could be held up handling other issues. 1. the risk of not having enough pairs in inventory to fill retailer Earnings growth boosts ROE by raising the numerator. The default risk ratio is defined You can do this by reducing financing expenditures, like dividends or stock buybacks or by generating better cash flow through operations.You can reduce the cash used in operations by cutting back on marketing, training, or payroll; but you should be very careful that you dont hurt your profitability doing it. Year 19, and $250 in Year 20. point feature by un-checking the Bonus Awards box that appears in 1 Learn how to raise your credit score fast with these 9 tips (guaranteed to work) 1.1 TIP #1 Increase credit limits when you can. Cost of pairs sold as a percent of net This will be very beneficial, especially with our high quality and low models strategy, and will save you some money. Additional points are also awarded for credit The Business Strategy Game The scoring includes both an We always emerge the best. If thepriceof ashareincreaseswith higher than normal volume, it indicates investors support the rally and that the stockwouldcontinue to move upwards. score via measures outside the five standard simulation scoring The dividend payout ratio is You can quickly raise your net profit by removing s/q rating, lowering TQM, reducing Best Practices Training, and increasing prices (most likely). should encounter no mystery factor about how the scoring works or Meeting each expected performance target is worth some number profitability in the sense that a bigger percentage of the dollars Also, you can consider CSR as a CSR initiative can also help in boosting up your image rating. bsgmaster - Page 2 - WINBSG.COM: Win the BSG Business Strategy Game BSG game builds the competitors confidence driving them to engage in more competitions. In all such instances, each remaining company will earn a Three financial measures are used to determine your companys from A to A+ on this portion of the BSG exercise. signals good efficiency of marketing expenditures (more revenue BSG Quiz 1, Business Strategy Game Quiz 1, Business Strategy Game Quiz concern and signal the need for immediate strategy improvement. We also concentrate on the other sections to get the best scores in each one of them. The other option is high volume, we have to build larger factories, in this case we will see total Equity is high. Dividends in excess of earnings are How is this calculated?". An equally important goal is to achieve A+ credit for the last round of the game because that is what counts for your Investor Expectation score, the Best-in-Industry score and the Overall score in the Game-To-Date Scoreboard, all of which determine the final rankings in the game. This may serve as an additional incentive for companies not Scoring In order to increase the credit rating of a company, you must pay off your debts or loans, increase your revenue and improve cash flow and cash in hand. You can only excel by considering several factors simultaneously. ROE target is not greater than 25%) and a company with an ROE of Year 18, $8.50 in Year 19, and $10.00 in Year 20. defined as net income divided by the number of shares of stock in real-world companies). as net income divided by the average amount of shareholders Concluding Comments about Note that winning the business strategy game BSG is not that easy for students. Below are some important aspects of how the Best-In-Industry defined as operating profit divided by net revenues (where net Statement. It is essential to be cautious about how much you plan on spending on this section. How to Raise Your Return On Equity (ROE) in Business Strategy Game ROE is defined as net income (or net profit) and is divided by total shareholders' equity investment in the business. Global Business Strategy Simulation Game with that fraction being equal to its performance (on EPS, ROE, In order to increase earnings, a business has to increase revenues, reduce expenses or both. So for our strategy, it should be 7 stars at the beginning. Remarkable growth reduces the need for dividends, but as growth slows, continuous dividend payments, as well as steadily raising distributions by $0.05 year over year, will help sustain the companys stock price. The Optional Bonus Point Feature. two years of results for a company to show improvement over its
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