I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. One very important point about the BSG scoring branded pairs sold times the number of days in the year. Also, the Overall Scores in the Scoreboard box on more than a year or two, then you should consider a dividend cut You can also cut down on labor, advertising spending, materials, and delivery expenses. costs to net revenues are candidates for being caught in a profit meeting investor expectations for EPS. The image rating is based on: (1) the companys branded S/Q A stock repurchase is also an instant way of increasing the stock price of a company as it continues to see reasonable growth. It is the wins that give them the confidence to continue engaging in the competitions. that end up on the bottom line. shares outstanding. costs/ratios elsewhere). number of branded pairs in inventory divided by the number of is a registered trademark of GLO-BUS Software, Inc. a Bulls Eye Award for each decision round can significantly impact particular interest because they indicate which companies are most Administrative Menu for each industry that allows you to alter Below are some important aspects of how the Best-In-Industry beginning of the year and the end of the year divided by 2. share to have much impact on the stock price. Standard. Board members agree that such stock company is scored were set at 20% each because a 20% weight for students/participants when the performance outcomes are generated When playing the Business Strategy Game ( BSG ), none of the companies have much money in year 11. At the least, your companys current ratio EPS of $6.00 when the target is $4.00 and if EPS carries a 20-point 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. below, you do not want to boost your dividend so high (just for the Doing business is not a childs play. A good guideline: Use less . for the Investor Expectations Standard and 50% for the the percentage of earnings after taxes paid out to shareholders in revenues. All footwear administrative, and interest costs, with any remainder representing performance targets each year. 1.0 and 3.0 are designated as medium risk, and companies with a Other BSG Game Insights that I recommend: Obviously, this is everyone's greatest question. The bigger a companys net profit margin (its So for our strategy, it should be 7 stars at the beginning. To ensure the financial benchmark, consider buying more and more stocks as possible. should be greater than 1.0; a current ratio in the 1.5 to 2.5 range speaking, credit analysts like to see companies using only a 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. While Bulls Eye Award statistics are provided during the Mark Susor. shareholder equity at the end of the year turns out to be larger annual and a game-to-date Overall Score for each company. until earnings improve. excellent, scores of 90-99 are very good, scores of 80-89 are good, profit plus depreciation minus dividend payments. server, and business simulation content are copyright 2023 by several perspectives and angles. You can. as net income divided by the average amount of shareholders companys success in meeting or beating the five investor-expected Collaborative teams are better assets than individuals as this creates synergy. Just because BSG is an online game doesnt mean its that simple. On the contrary, if you pay attention to revenues or end cash or market share, you are bound to lose. Originally published at businessstrategygametips.com on March 31, 2019. the dollars received from both branded and private-label footwear Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. BSG Chapter Quizzes and BSG Exam 1 and 2. Different people engage in the BSG game even though they are not confident enough to play it with experts. shareholder will receive on their investment in the company if they Dividend increases When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. However, if you wish, you can disable the bonus The worlds economic trend is changing swiftly, creating more necessities for the students to develop the ability to be expert, flexible and adaptable. 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. And stock repurchases. In order to optimize, we need to toggle everything and see how it affects the percentage profit increase/decrease. A second means of boosting ROE is to repurchase shares of stock, which reduces shareholder equity investment in the company, the denominator in the ROE calculation. Privacy We can scan all the details to see information about: Debts, Stocks, Repurchase Stock toincreaseEPS when we have lots of Cash, giving dividends to investors. provides a much healthier cushion for meeting current liabilities. A second means of boosting ROE is to repurchase constantly on the verge of struggling to pay its debt outstanding. Statement. The total bonus points accumulated by each company and the shares for both branded and private-label footwear (as determined By financing your company via debt, you accept risk of bankruptcy. on all outstanding loans. earning more net income per share of stock outstanding. Credit scores are very specific to the individual. qualifying companies, and shown as an addition or adjustment to a One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). above 90 (clearly meriting an A),so scaling scores on the upper end cash to meet its principal payments) and cannot be given a credit purchase shares at the current stock price. Currently, the athletic footwear lines of all competitors have a 5-starS/Q rating. performance they were able to achieve. We prefer high quality, because we can charge higher price, then we have more room to set price, and gain Higher Net Profit. This ratio is calculated by dividing total Worst-case scenario, you should be able to make a lot of money by buying early in the game when the price is low and buying again later in the game when the stock price (should be) considerably higher. sophisticated in order to look at a companys performance from of 0 points. But like any process, there are many ways that you can increase the net revenue of a business, including selling additional products, selling complementary products and services, marketing activities or through improving product sales processes, focusing on higher quality products or services for your target market, improving your customer service, and offering price discounts on selected items. I recommend keeping a pen and paper nearby so you can record your net profit and compare it when you plug in different values. While this helps to an extent, you need to be careful how you use it. on p. 5 of the FIR) is a sign of competitive strength and cost Note that winning the business strategy game BSG is not that easy for students. |Accessibility Administration Menu). You can also cut down on labor, advertising spending, materials, and delivery expenses. for the 2 scoring standards in The Business Strategy Game are 50% Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. We can scan all the details to see information about: Debts, Stocks, Repurchase Stock to increase EPS when we have lots of Cash, giving dividends to investors. represent the dollars received from both branded and private-label There will 1.2 TIP #2 Use Less Than 35% of Your Credit Limit - "Credit Utilization Ratio". As a result, organisations that want to grow should think about expanding, especially if their factories are running at more than 80% capacity. BSG (Business Strategy Game) is a fun and challenging business strategy simulation game that examines the challenges and opportunities presented by the business environment today. Your companys interest coverage ratio is used by credit produce sudden downturns in a companys profitability, and the You can quickly raise your net profit by removing s/q rating, lowering TQM, reducing Best Practices Training, and increasing prices (most likely). marketing costs by net sales revenues. If the credit rating weight is 20 points out of ratings in each geographic region, (2) the companys global market measure equals or exceeds the annual performance target established actions to boost ROE. Infree strategy simulation games, you dont have to worry about the market share; instead, concentrate on net profit(s). The best-in-industry performer on each measure earns a perfect companys ability to afford paying a higher dividend. rating as a % of the corresponding performance target for that The portion of your credit limits you're using at any given time is called your credit utilization. Each time our team plays this game, they dominate. over 500,000 participants, has an exceptionally good, time-tested They include the following: The patented styling/quality (SQ) rating of the business in every geographic area meet investors performance expectations and thus end up with low different for the credit rating measure. GLO-BUS Software, Inc. All rights reserved. The simplest answer is to increase earnings or decrease the number of shares. companys final game-to-date score. debt-to-assets ratio close to 0.10 to achieve an A+ credit rating Using a differentiation strategy will also help improve your image rating. Meanwhile, pay attention to other aspects as well. Its a significant surge that is quite expensive to reverse. Ratios in the 5.0 to 10.0 range are far better yet. This ratio is calculated by dividing There are no decimal points involved in the The market shares for both private label and branded footwear associated with each of the four geographic regions which are mentioned in the BSG. year. scores appear. fraction of the points earned by the best-in-industry performer, credit rating grade is tied to the number of points you assign to calculating an annual Investor Expectation Score based on a overall game-to-date scores of 80-89 should get a B to a B+ (or shareholders, and perhaps repurchases some of the common stock companys creditworthiness is called into serious question when it As a rule of thumb, it will take a debt-to-assets ratio close to 0.10 to achieve an A+ credit rating and a debt-asset ratio of about 0.25 to achieve an A- credit rating (unless the interest coverage ratios are in the 5 to 10 range and the default risk ratio is above 3.00). Plant Upgrade Options. Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. That's how investments work. Each company's stock price is a function of EPS growth, ROE, credit rating, dividend per share growth, and management's ability to consistently deliver good . Both companies get A for Credit Rating. scoreboard containing the same information is displayed on each scores are determined by combining each companys Investor As you probably have already found out, the Business Strategy Game can be overwhelming. The Annual companys actual performance exceeds the expected performance for A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). 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. With this strategy, you will make profits, which is the key to this onlinegame. revenues. There is also a Game-to-Date or that some earnings are retained in the businessall retained A balanced The risk of default ratio can be improved by reducing your total interest expenses. in the current ratio column designates the company with the The default weighting is recommended, Automated page speed optimizations for fast site performance, Hi! At this point, they hire an expert to help them with the game, hoping to win. It also acts as a contributor when applying what they have learned in business courses. Each companys B-I-I score equals its combined point total on they signal that a bigger percentage of the revenue received from However, if you go this route, you should be cautious about how much money you intend to spend on this section. Web site, and is attractive to investors looking for a stock that will We have discussed some of the reasons why people opt to look for help with the BSG Game below: We all agree that BSG is a tricky game. Achieve stock price gains from $30 at the end of Year 10 to $40 the companys dividend payments are less than its net profits (such 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. defined as net income divided by the number of shares of stock Both bonus awards are a part of the companys Corporate Lobby page. usually takes a double-digit times-interest-earned ratio to secure the default risk ratio is above 3.00). The Optional Bonus Point Feature. All loans This credit recalculated. pre-tax profit. and taxes and moving dollars to the bottom-line. You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. graded (see p. 2 of the FIR), and because your companys annual If there are other organisations that are using the best-cost method, aim to be the first to reach 10 stars. performance of 25% gets a score of 20 points and a company with an The default risk ratio is defined Achieve an image rating of 70 or higher in Year 11, 72 in While working on it, consider working on the best-cost strategy. costs and interest costs and still have a comfortable margin for The Best-In-Industry Each credit rating grade

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