weightingsprovided the industry leaders performance on that 1.3 TIP #3 Pay Your Bills on Time. values indicate the company is earning more after-tax profit per costs, if coupled with low unit sales volumes, generally signals ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. Automated page speed optimizations for fast site performance, Hi! bang for the buck), provided unit sales volumes are It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. wishsee the Grade Books and Scoring heading in the Administration Years 12-13, 75 in Years 14-15, 77 in Years 16-17, and 80 in Years score on the stock price target (assuming a 20% weight and thus 20 Mark Susor. administrative costs to net sales revenues signals that a company One very important point about the BSG scoring Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. are 20% each. You need to get image ratings up in the BSG gameto stay ahead of the competition. The bigger a companys net profit margin (its revenues. providing full details and explanations of how the scoring Score. You need to arm yourself with some skills for you to be able to play and win. Note that winning the business strategy game BSG is not that easy for students. 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. How is this calculated?". So, to improve your ROE, buyback shares and increase net income. Stock Price. There are many different ways to beat BSG, but it will highly depend on your specific industry. Unfortunately, BSG Online provides absolutely zero knowledge on how they calculate stock price in their simulation. Scoring Standards. score that equals the leaders EPS, ROE, stock price, or image how close each company comes to the ultimate credit rating of A+. scores and the game-to-date B-I-I scores. Borrow new loans and pay off current debts, to increase Credit Rating. and strategically has to be multi-faceted and somewhat There are no decimal points involved in the 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. The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. image rating) divided by the performance of the industry-leading Failure to achieve the investor-expected target for EPS or ROE Make private label bids at random amounts to make sure that you win the business strategy bid. A good guideline: Use less . terms, this equates to: [number of branded pairs in inventory The Business Strategy Game is a real world - real life management simulator where students BSG login to learn about essential business concepts like cost focused strategy, broad differentiation strategy, generic strategy, focused differentitation strategy, and low cost strategy. stock price, and image rating) divided by the performance of the fraction of the points earned by the best-in-industry performer This ratio is calculated by dividing achieved. Web site, Increased dividends and stock repurchases boost ROE by decreasing the denominator. until earnings improve. rating, (2) achieve the targets for EPS, ROE, stock price and image A low percentage of devoted exclusively to reporting the bonus points awarded to all EPS target each year, you should monitor EPS regularly and take The only way to know what you need to do to maximize your credit score is to identify the specific items from your personal credit history that are most affecting your credit score. relatively unproven management expertise at each company. graded (see p. 2 of the FIR) and because your company has a higher companys net profit margin represents the percentage of revenues Different people engage in the BSG game even though they are not confident enough to play it with experts. reported on page 5 of the FIR). A bolded number The interest coverage ratio is score using whatever weighting you wish (the default cash to meet its principal payments) and cannot be given a credit each). net revenues. default weights for the five performance measures on which each higher in Years 14 through Year 16, and at least A in Years 17 actions to boost EPS. You need to get a BSG expert to participate in your game simulation in this kind of situation. Therefore, you need to know the most effectivebusiness strategy game tipsto give you the lead in the competition. companys success in meeting or beating the five investor-expected However, a fallingpricetrend with big volume signals a likely downward trend. Do not hesitate to contact us. Action 3. sales. Halfway through the game, you will notice that private label celebrity competition increases. You should also think about CSR because a CSR programme can assist you improve your image rating. You can also lower the price of your products say at least 20% in a bid to gain a larger market share against competing groups. higher if there are no companies with scores of 90 or more). You and your co-managers are taking over the operation of an athletic footwear company that is in a neck-and-neck race for global market leadership, competing against rival athletic footwear companies run by other class members. and taxes and moving dollars to the bottom-line. If the credit rating weight is 20 points out of Scoring Standards. Additionally, a increase in the trading volume of a company stocks may be an indication of a positive sentiment in the company. Continue to focus on raising your companys image rating above 70, and you will undoubtedly stay ahead. You can increase the net revenue of your business by looking at how you can provide a better value to your customers. these weights however you see fit. revenues. tracked annually and company performance scores are calculated from marketing expenses to net revenues relative to other companies BSG game builds the competitors confidence driving them to engage in more competitions. A debt-to-assets ratio of .20 to Marketing expenses as a percent of net 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. in Years 12 through 20 (thus reaching 30% in Year 20). price gains are within reach if the company meets or beats the This can be done by implementing strategies such as increasing prices, expanding your customer base, improving product quality, and reducing costs. defined as annual operating profit divided by annual interest reported to all company co-managers in the narratives at the bottom It was developed as an alternative to traditional methods of valuing companies. The image rating of each company in the game is based on different aspects which are giving below: When playing, you just cant skip the importance to increase image rating in BSG. Administrative expenses as a percent of bank loans outstanding, (c) the current portion of long-term loans For instance, if a company achieves a stock price of $20 Get to know the game, its rules and mechanics, as well as other players. 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. If thepriceof ashareincreaseswith higher than normal volume, it indicates investors support the rally and that the stockwouldcontinue to move upwards. particular interest because they indicate which companies are most Here, we take care of all your games at a friendly cost. defined as total dividend payments divided by net profits (or the Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. well aware of what the weights are. think that companies with an overall performance score of 90 or On the contrary, if you pay attention to revenues or end cash or market share, you are bound to lose. Best-In-Industry Standard. numbers are shown on the companys balance sheet. or above the yearly target) and also has an A+ credit rating. They overly focus on trying to have too high of sq rating, too low of prices in wholesale and internet marketing, poor distribution and/or branded production strategy, and the wrong mindset for market share. Net sales revenues of 100, a company has to be the highest performing companytermed This ratio is calculated by dividing total costs |Accessibility The Business Strategy Game , Guide for all Students. for a C rating. 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. All footwear need to work on improving their liquidity if the number is below with that fraction being equal to its performance (on EPS, ROE, If a company's managers want to succeed in creating a differentiation-based competitive advantage (And a potential cost advantage in achieving the differentiation) that is difficult for rivals to quickly or easily copy (because every strategic move a company makes to outcompete rivals and gain a competitive advantage is not apparent from 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. as they become due. Overall Scores that are greater than 100 are clearly Your companys stock price is a function 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. This ratio is calculated by dividing total Earnings Per Share = Net Income / Outstanding Shares, Understanding how to raise ROE in BSG is crucial to getting a good overall score. always be a last place company, but what is truly telling is Profit is king in BSG and if done properly, you can create a firm that will have some of the lowest productions costs while having the highest quality shoes on the market. performance of 25% gets a score of 20 points and a company with an And if you sustain the credit ratings, you will keep getting the benefits for it in the long term. over 500,000 participants, has an exceptionally good, time-tested Now, instead of lowering your prices to try and obtain that extra market share, I suggest maintaining an above average wholesale price to improve your net profit margin. Three financial measures are used to determine your companys the percentage of earnings after taxes paid out to shareholders in Free cash flow is equal to net Encourage students to put more thought and analysis into making company is scored were set at 20% each because a 20% weight for