business strategy game tips

If not, see what positive percentage yields the highest profit for you. If you demand for branded production is met, put everything else into private label to make sure you dont have unused capacity. To be an Industry Champion, you just have to beat your classmates but to be a Business Strategy Game Grand Champion you have to BEAT every single Industry Champion that's won the Business Strategy Game. The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. If you bid on multiple celebrities, it is good to set a ranking priority and a spending cap so that you do not spend more money than you want or have available. As a Business Strategy Game Grand Champion, I have been responsible for burying many Industry Champion competitors and I have to say, its not hard. Make year 11 EASY on yourself and learn how the game is played. In this section, you can upgrade your plants. 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. The closer your actual numbers are to your estimates, the more likely it will be that you earn bonus points from the Bulls Eye Award (be within a 5% range of the estimates). I suggest to go for maximum profits. Its not too late to do that yet. If it is 0%, that is fine as well, do not worry about it. Hence, find the combination that gives you the highest profit. Finished top 3 the first time and we are currently in 2nd place through 5 weeks for our current simulation. This also means that players have a limited number of options which creates a glass ceiling and sets the tone for the rest of the game.The first years of a Business Strategy Game is fairly fragile and any major mistakes will leave permanent scars. You might agree to disagree in the process but each member should always be given a clear avenue to express their thoughts that are based on their research. At the lower half of the page, you also determine how many branded pairs you want to manufacture in each region you have a plant. When there is a change in any aspect of operations it should be implemented upon approval of all the members. Based on the kind of approach you will use, you might find it useful to keep some of the costs low. So for our strategy, it should be 7 stars at the beginning. 39K views 1 year ago #businessstrategygame Here is my ultimate guide to help you ace the Business Strategy Game. unfortunately I have no experience with adjusting to my strategy in the late-game. Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. This can be a very tricky decision and you need to analyze your competitors prices. My direct competitor is now selling 8 stars with more than 400 models in wholesale so I think i will be at a even better position selling 50 models. Let us move on to the tricky part of this decision page. Its not too bad, no worries. Ive created this website as a final project for an online marketing class (and to help me pick up an extra bar tab a month.) Thanks! Im an excel and math geek and started to break the game down and understand it on a deep level. So I doubt on his strategy. If for whatever reason you arent satisfied with the guide, return it anytime for a full refund. I recommend building additional 1,000 capacity for the North American plant in the first year, if your cash balance allows it. The private-label sector is something you do not want to miss out on, especially with our high quality, low models strategy. It is a show to the investors whether their investment is performing well. Business Strategy Game Tips - . We were actually thinking on building capacity in LA for next year, however, two of the other teams already built capacity for 6,000 pairs in total (we are only 4 teams in total). Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. It's customized for you to run the company in direct competition with other class members. This is extremely easy and if thats all you want, then grab The Ultimate BSG Solution right now and guarantee your success. However, it will also decrease your ending cash. How to solves this situation ,have you given us any suggestion. The Models Offered estimate seems pretty fair and you do not have to worry about it. When you are deciding whether to upgrade your plant capacity, time is an essential factor. Let us take a look at the Plant Capacity / Upgrades page first. The most important advice in advance: it is all about PROFIT. Good communication skills. Also do you know the cost of building additional capacity. Hi, thanks for the great strategy! I still think its a waste to build a plant there, unless youre selling tons of shoes (high models, mid SQ). Do the same for your E-A and A-P volumes and plug them into the A-P manufacturing slot. But this year the shipping is too high from AP to LA so I cannot make any money from LA. No worries, this is logical and you did nothing wrong. Instantly Jump Your Business Strategy Game Score 10 Points for FREE! you should repurchase stock whenever you can. You Get ALL This For The Extremely Low Price, I understand that it only takes 10-15 minutes to put theMagicYear 11. numbers in the right spot to make me Industry leader Instantly! Strategies, decision screens, reports and tests. Waiting to buy them later will lead to an increase in their prices. Hi You have to base it off the HIGHEST wholesale price, just to be safe Like that, all 4 regions are guaranteed to be 40% above wholesale price. Beating the Business Strategy Game About the Guide. The same accounts for your Change in Annual Base Wages and Incentive Pay values. 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. 5. The first time I played, I did exactly what you are doing: researching the internet. We are reaching the last decision round and would like some hints on how to boost net profits for the last year and gain some extra points. Yeah I will hold on to that for now. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. Hi. Your competitors are most likely looking for this information too. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales. Most Industry competitorsarentable to replicate high results when they face tougher opponentsand have asimpleunderstanding of the Business Strategy Game. From experience Id say tho that it is already too late to adjust to my strategy presented. Learn how to set your prices right by orchestrating your branded market efforts with my intense market advertising and a retail support campaigns that will ensure company stability for years to come. I would recommend purchasing the upgrade for both of your plants within the first four years. Like I explained in my blog post, do everything that is necessary to increase and maximize your net profits. Those are LEARNING REFERENCES written bycommonplace Industry Champions, which teach you how toplay. The accumulated knowledge I have over the Business Strategy Game is on an unrivaled scale. I took first in the world seven out of ten decision rounds and won the BSI again when my MBA program used the McGraw Hill Business Strategy Game simulation as a learning tool also. To boost earnings per share (E.P.S) you can use the cash at hand to retire and repurchase any outstanding shares. 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. Regardless of your scenario,having BSG Tips in your corner is like having an 800 lb. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. or A-P plant. Strategies, decision screens, reports and tests. Learn tips & tricks, from a BSG Grand Master! 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. Let me know if you have any more questions. Even more important is, to stick to it! This isthe lazy wayof winning the Business Strategy Game and requires very little knowledge and effort on your part. In the upper right box, you can spend your excessive cash. You basically do the same thing over and over again, for every decision round. I hope that helps and good luck! This is actually typical of almost every single Business Strategy Game Industry, as it takes only 1 greedy person to get the ball rolling. It will be very helpful for us and will be very grateful Do you still have your upload reports of all your years ? You are now done with all your decisions for the Corporate Citizenship decision page and should hit the Save Decisions button on the upper right-hand corner. Always keep that in mind when formulating your strategies and leave room for adjustment where necessary. So I run into problem again! Yes, despite your competitors building capacity as well, I recommend increasing capacity in a reasonable amount. For only $35, get instant access to the Business Strategy Game Guide. Personally, I would do a higher SQ to start things out while you are building capacity to match the low quality-high model approach. "In terms of scope and comprehensiveness, it has no equal in the world of business . Please post any information pertaining to: strategies, tips, final presentations, case studies, quizzes, etc. In any Business Strategy Game, including BizMAP, you will not get it 'right' in the first attempt. Were at the middle of the pack and wanted the best strategy to move up the ranks. Other teams in your industry wont stand a chance when you unleash the tactics we teach. However, there are still some other voluntary decision that will prepare you for future decisions. Try out each and every value and note down the highest net profit values. The only thing you wont get is Magic Year 11 Secrets Revealed.Dont Wait! The accumulated knowledge I have over the Business Strategy Game is on an unrivaled scale. The Business Strategy Game BSG is a PC-based exercise designed to mirror the real-world features of the competitive athletic footwear industry. I usually have the highest net profit when setting Enhanced Styling / Features to $50k, TQM / Six Sigma Quality Program at around $0.70, and Best Practices Training at $5,000. I know every strategy, secret, and tip you can possibly imagine about the Business Strategy Game, and Im willing to share them with you. A business strategy game is an exercise that requires critical thinking and problem-solving skills, similar to what an entrepreneur may use while running their daily operations. I like to have around $8-10 million ending cash available after all my decisions are made. The worst thing that could happenis you follow one of these guides to save a few bucks, to implement the strategiesThe Whole World Seesand end up LOSING the Business Strategy Game which may result in a low grade and possibly re-taking the class! Do not worry about the Plant Capacity / Upgrades page. as I described in my post, Id go with the low models, maximum profit strategy as it is easy to follow and you determine the market. Order now. Embedded in the magic numbers is a reinforced long-term money-saving strategy that will save you money every year forever! You said that the internet price should be 40% above wholesale. You should slightly increase your dividends year by year. Steal my conservative private label strategy that and immunize your company from bankruptcy. 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. I suggest you upgrade your browser. Hello, While you already have a good estimate of how many shoes you are going to sell in each region, you still need to consider your rejected pairs during production. Once you have enough capacity then switch to low SQ approach. Members of the team should have skills and strengths that serve to complement each other for a perfect working synergy. This is your new, more precise regional wholesale sales volume. Help, hints, tips, and strategy for The Business Strategy Game (Thompson & Stappenbeck) which will greatly improve your game performance. In the case where other competitors are employing this strategy; strive to be the first team to get the most points. You need the capacity for the private label market. Thanks a lot! However, some values, such as the Wholesale Price have decreased instead of increased. Thank you so much! Your estimate of the industry average for the internet retail price does not change with your adjusted competitive that you set to +2% before. You have successfully adjusted to your competitors. In conclusion, while the BSG simulation requires tact and strategy, employing the above tips will help you get a better sense of how the game works and incorporating them into your strategies will boost your overall performance. In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. At the same time, youll generate significant amounts of income from the hardest market to extract revenues from. Here, you are treated like a star. I dont understand why it did this as this capacity was unused and there was upside to having it as my production was max out for the demand. Free shipping will most likely not increase your profits. I include tons of free information to give you a leg up on your classmates on my blogroll. But if i decrease my model, I dont think I will be competitive enough to compete with him if he stays with his strategy, what do you think? Okay! We will now look at all the decisions you have to make to actually play the game and be successful with your strategy. If it increases your profits, leave it at Yes, otherwise set it to No. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. Advantage of this is, that you dont have to pay too much attention to your competitors. Sometimes, clearing your beginning inventory at a discount will boost your profits. Thank you, Fin! Hello, thanks for the great strategy, it is working (1st place) ! 2. Paying off these loans in advance has the advantage that you will pay less interest over the coming years. This is where consumers get the best quality of footwear at the lowest possible price, therefore ensuring value for their money. This is very helpful. However, I would recommend not taking out any loan if possible. With this, they raised the global capacity to 30,000 when the potential global demand (including private label) is only 24,218. Currently, were selling 150 models. One week they might increase, the other they might increase by just a little or even decrease. Deciding whether to buy an already functioning plant or build one from the ground up will depend on; whether the geographical region you want to set up has a plant you can buy as well as the time that is available for you to set up a new plant. Helped me get to the second place! Stick in your e-mail address, and the tips guide will be in your inbox instantly. After you have calculated the manufacturing volume for each region, add up your N.A. Buy Now with PayPal. Here, you will determine the Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, Change in Annual Base Wages, Incentive Pay, and Best Practices Training. And should I do stock repurchase this year? I personally would not bid higher than $5,000 $6,000. You will need those numbers later on. No worries, it will be easier after the first few years. Like I already said in my previous post, the most important thing is to toggle each and every value and pay close attention to your net profits. Hi, Thank you so much for your reply! I would then adjust the Percentage of Superior Materials to whatever is needed to match my S/Q Rating with the value plugged in on the Sales Forecast page. The Business Strategy Game or BSG is a simulation game used by, different colleges for their Business capstone. I include tons of free information to give you a leg up on your classmates on my blogroll. Hi! In the first few years, this will be pretty difficult to determine. ? We have good market share in NA and, last year, we needed to ship the rest of the shoes from AP (incurring in shipping and tariffs costs, hence, the thought of adding capacity in LA). Having an increased S/Q rating and lower prices boosts the image of the company positively. Private label will help you dominate your competition. I have also included a Special 30 minuteAudio Companion for the Magic Numbers that is great for Year 11 starters! Entering year 15 I am still doing 8 star but the demand forecast is super low. Theguide will show you how to make your company lean and agile to cope with the industrys marketplace. You then want to select 0% as the Portion of the $XX mil. Hi Yvonne. Choosing the correct financial approach, among other things, made a huge difference. And you can basically never have enough capacity for private label. Almost done, the last decision page. I adjusted a little bit and the forecast is now close to previous years. . The image rating of a company is the way it is viewed as a brand, The image rating of a company is usually based on. R.O.E is the measure of the ability of a company to generate profit. The Capitalism series is widely regarded as the best business strategy game series ever created. thank you:). You can either take out a 1-year, 5-year, or 10-year bank loan. It is all about trying out all possible combinations. Weve solved EVERYTHING for you. sales volume estimate. The styling/quality (S/Q) ratio of the business venture in the different geographic locations they operate in. Sounds good, congrats! I was thinking about building a LA plant because I took the majority of private label there last year. In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). This will save you money in the long run and at the same time boost your credit rating positively. Obviously, the other teams and their decisions will play the biggest role in how you play the game, but this is a good starting point for how the game works and . Hi. Copyright 2018 BGSTips.com | All rights reserved. Is your strategy also works for my situation? is it because I need to add capacity? As much as expansion is important to the lifeblood of a company, if you are faced with a situation of people rapidly building a lot of capacity. You can do this by paying off your loans at the earliest possible time. If it is lower than 40%, your wholesale price will be in competition with your internet price. Well some Industry Champions have such an easy time winning because the people theyre going up against simply didnt care about the BSG. (0 for both stock issues and stock repurchase). For long term celebrity contracts and endorsement, bid for them in the early stages of the simulation. Develop a fictional startup in a choice of industries, playing in modes including entrepreneur, business war or Virtonomics tycoon. Virtonomics. 4. After you have done this, you repeat the same procedure for Europe-Africa and Asia-Pacific with the A-P plant because it is cheapest to ship shoes from A-P to E-A. Do not sit on it. This enhances the marketing efforts for the brand. (In Y11, I did the 5-year loan with 12,000k (7% interest). If this scares you, it should. Learn a little more about the theoretical concepts behind the game in our Free MBA course. If you have any questions, suggestions, or comments feel free to comment and I will do my best to help you out. For further explanation, please read my blog post. Automated page speed optimizations for fast site performance, Capsim Winning Strategies and Simulation Tips, Leadership and Management Assignment Help. Now, decide to which region you want to ship your private-label shoes. Or you have read it but still do not know what strategy to pursue or what is going on? You will also receive a copy of Currency Made Simple. So I have plant in NA, EA and AP, but right now I am only using 70% of the capacity because the demand is quite small for me. Apply the following tips to reduce some of the costs. Start off with the values that you know for sure: For the high quality, low models strategy, I recommend starting off with a S/Q rating of 7 stars and 50 models available. . It only takes 10-15 minutes to put the numbers in the right spotsto make yourself an Industry leader. When contracting a celebrity, your advertising efforts in the Sales Forecast section should not be low. I was wondering how much more additional capacity that I should purchase after Ive bought the first 1000 for NA. From this highest whole dollar amount, I plug in every possible value around it and find the price that yields the highest net profit. Purchasing capacity is 20% cheaper than building new capacity on your own. and L.A. in North America to reduce costs because ofNAFTA. I did not stock issues or issue purchase in the those years. In addition, you have the option to repurchase your stock. Promise I wont have tons of question haha. The private-label market is a very nice opportunity to gain an advantage off your competitors and take their market share. However, you can successfully apply most of the following tips to either strategy. It makes sense to do the upgrade before adding capacity. The strategy utilized is broad and will allow your company to decide in what direction you want to take your company after to win Business Strategy Game. Unused capacity kills your numbers and profits! Hey!! It is definitely around 1.2 though and I recommend starting off with this value. but out industry there is a direct competitor for me, he is also star 8 and 50 models, and he prices so low for wholesale, only 47! The celebrity endorsement will work well only if it is boosted by aggressive advertising. Try out different combinations that keep you at 8* and the highest possible net profit. But again, thanks! Hi, Im glad to hear that it helped! When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. After you have found the right price, click the Save Decisions button. And he also purchase 4000 capacity in the first year but no advertising expenses. A free section gives the casual reader some tips and tricks in class and a paid guide for people who are behind and need to catch up or students who want to save themselves the headache and win. And you said I should only add capacity onto existing ones instead of building a new one in LA right? I promise you my techniques and tips are fully replicable and have kept me theundefeatedall theseYears! The importance of buying back stock early and how buying back stock gives you an edge in the game. Hi, youre welcome. When coming up with a CSR initiative, ensure that the budget can be sustained over time without burdening the company. If you see little action on the celebrity market, go ahead and get your celebrities for the lowest price possible ($500). I wish you the best of luck for your game. Like I said before, you should be building capacity, yes. if you have left over inventory, you should either work on your numbers as I described in my post or put the left-over shoes into private-label. I recommend increasing capacity and keep focusing on your profits. During the entire simulation process, it is important to keep tabs on the company intelligence reports (C.I.R) and the company operating report (C.O.R) The C.O.R will give you insights into plant investments, labour statistics as well as data on plant capacity. My undergraduate business strategy teacher made us play the BSG-Online simulation for 40% of our grade. You will soon know why. Any questions you have or any problems you encounter,you can get my expert advice asa BSG Grand Champion.

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