Then, just like you did before, plug in different values for your internet price and see, which price yields the highest net profit. It also offers the opportunity to produce the most affordable shoe. Sounds good, congrats! PS: I do the 5-year-loan 12,000k in Y11 (7% interest); In year 12, I paid #1 Long-Term (early payment) 12k at 8.2% AND borrow 70,000k 5-year-loan at 4.5%. Play with your numbers around and tweak them to generate maximum net profit. Once people have played the game once, they feel they know everything to win the game … Go ahead and try out which combination yields the highest profits. When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. Concerning changing others values, I recommend reading my initial post where I have explained everything in detail. Again, maximizing net profit is all you care about with our strategy determined at the beginning. But this year I have a lot of cash on hand, I upgraded my plant, should I also build the LA plant although I don’t need that much capacity at the moment? They have all changed by +2%, just as you plugged it in. 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. Please delete one if there is an extra comment. First, have a look at Market Snapshot, 2 strategies can to go Top of the Game is G and H. G Company follows the High Quality strategy with low number of models. The private-label sector is something you do not want to miss out on, especially with our high quality, low models strategy. So, play around and find the best combination for your given S/Q rating that yields the highest net profit. total sales volume estimate into the Branded Pairs to be Manufactured in Year XX slot for North America, write down your reject rate and add it to your previous total N.A. Select +2% for the “Percent Change in Competitive Impact of All Other Factors from Previous Year”. If I’m wrong, I’ll post another comment. thank you for your help. That’s a game changer!! I will explain soon, how to increase plant capacity and why we need the capacity for private label. Paying dividends will increase your stock price and your ROE. However, keep in mind that your regional endorsement value should not be higher than 400 in any region. Ideally, you can cut your employees’ wages and will increase profit. Set Models Offered to “50” and Free Shipping to “No”. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. Or you have read it but still do not know what strategy to pursue or what is going on? Thank you! I wish you the best of luck for your game. Also do you know the cost of building additional capacity. Increase models? It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. I followed your recommendations, and I have a good rank. Even more important is, to stick to it! However, it will also decrease your ending cash. However, it will also decrease your ending cash. On this page, you will set your values for your branded production. This is why building additional capacity is so important. Should I continue expanding NA or AP and by how much? I personally find it easier to pursue and had more success with it in the past. Otherwise, their endorsement effect declines. How to solves this situation ,have you given us any suggestion. Thank you very much for your kind words! Private label will help you dominate your competition. Hi! Almost done, the last decision page. If not, I don’t see the need to purchase equipment in order to make more shoes until the demand begins to encroach upon my shoe making capacity. Do this for all four regions. So I doubt on his strategy. However, if you happen to use overtime at either of the two plants, plan on increasing the plant’s capacity in this decision round. I will talk about the Celebrity Endorsements page later. Do this for all the four regions. This particular Business game strategy is useful when playing against many people who have played the game before, such as summer school or the the Business Strategy Grand Championships. Again, this can be trial and error for a couple of decisions but you should get a feeling for what multiplier is best for your company. as I described in my post, I’d go with the “low models, maximum profit” strategy as it is easy to follow and you determine the market. I would still go for the 50 models and make sure to buy or build capacity so you have enough for your private label. According to the change, you can estimate the next year’s average industry internet price and plug it in. I still think it’s a waste to build a plant there, unless you’re selling tons of shoes (high models, mid SQ). Hi, 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. This is Week 1! Currently, we’re selling 150 models. Once you allocate the shoes to a region, buckle the superior materials and stylish features to make sure the price indicated for production cost is the lowest. like should I just follow your tips through all because I kind of get on a bad start. The following are a few tips and tricks that will deliver you a win in your BSG game. It is usually best to repurchase stock at the beginning, when your stock prices are relatively low. The two most important values you want to have as precisely estimated as possible are the industry’s average wholesale price and S/Q rating. However, my net profit is still negative even after i have adjusted the private-label. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. Evaluate the margin over direct costs to determine whether the market will be profitable based on the amount you are charging. So when following the steps described above, you will have positive ending cash really soon again. When doing so, you have to plug in numbers for the assumptions section in the new window. 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. Hi, you’re welcome. I believe it varies based on your game’s situation. Capitalism II. If you demand for branded production is met, put everything else into private label to make sure you don’t have unused capacity. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. I am so thankful for your post!!!!!!!!!!!! If you have any questions, feel free to come back and ask them. Hence, you will only focus on the two following decisions that are worth their money as they increase your image rating the most. As for the TQM, the best will be between $0.70 and $0.80. Buy I have quite a lot ending cash. If you are competing with five teams, it is vital for each of the team at least aims 20% of the market share in every business segment. This way, you increase your net income, therefore increasing the ROE, EPS and stock prices. I would like to ask about the “Pay Dividends.” My stupidness did not know that I should not pay dividends while I’m in LOAN mode. Is this … I am in Y12, and I am adjusting for Y13. Platform: Windows, macOS X. Today’s corporate world is a cutthroat affair, but we still … Like I said before, you should be building capacity, yes. University. Contrary, you can increase the employees’ wages in percentages at a time. With increased competition, prices tend to decrease. I personally would not bid higher than $5,000 – $6,000. is it because I need to add capacity? It is best to build only as much capacity as you can afford without taking any loans. In the last section of the Plant Capacity / Upgrades decision page, you can construct a new plant in either of the two regions where you do not have a plant yet or you can build additional capacity to your N.A. After you have done this for both the N.A. I cannot make any money there. Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. After you have found the right price, click the “Save Decisions” button. Thanks a lot! However, after 3-4 years, your competitors will settle and changes will be more predictable. How did your 2nd decision go? Therefore, pick your winning strategy – profits and stick to it. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. So, multiply your sales volume for the wholesale segment for each region by 1.2. Decision Entries for the BSG. This range can be worth the price of a celebrity. Do this for all four regions. 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. It will be very helpful for us and will be very grateful Do you still have your upload reports of all your years ? Thanks a lot! I am currently dominating my industry, and closing in on the top 100 list! Set your price to whatever maximizes your profits. Sometimes that’s cutting expenses, sometimes that’s increasing expenses (even though it might not make sense at first). After you have calculated the manufacturing volume for each region, add up your N.A. As already mentioned earlier, not every decision has to make sense. It depends on how much private label you sell and whether you want and can sell more – depending on the market, whether its satisfied or not. Thoughtfully, decide your plan for setting up a plant capacity. There’s not right amount of capacity you should purchase. Entering year 15 I am still doing 8 star but the demand forecast is super low. In the first few years, this will be pretty difficult to determine. I don’t 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. After you have done this, play around with the values for Wholesale Price, Advertising Budget, Rebate Offer, and Retailer Support (increase/decrease by 100s only, as everything else makes no sense). Just plug in numbers and note down your net profit values. I just have a quick question…. So, if the other teams are executing the best-cost strategy, make sure your team is the first to reach the 10 stars. It sometimes works. Beating the Business Strategy Game About the Guide. University of Greenwich . And I’m so thankful for your post!!!!!!!! Worst case, all the demand is already satisfied in your region before your shoes at a certain price is being considered. When you found the best combination to produce your shoes at the lowest cost possible while meeting the S/Q rating requirement, move to the Private-Label Bids section. Besides, you can price your shoes at least $5 below the average wholesale price in the industry for the region. After you have successfully plugged in your branded pairs that need to be manufactured for both plants, click the “Save Decisions” button and move on to the Branded Distribution page. I started with paying $0.05 dividends and increased it by $0.05 every year. In the upper left box, you have available sources of additional cash. Economic Impact of Hurricane Harvey and Hurricane Irma, Temporary Oil Price Changes Hold Back Consumer Spending. message me on instagram if you need more help!!! . However, some values, such as the Wholesale Price have decreased instead of increased. It was set Pay Dividends $1.00, which turned out 20,000k in total. In the upper right box, you can spend your excessive cash. What I like about my strategy is that you do not necessarily have to keep an eye on your competitors. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. Thanks for your strategy! … Hi there! I recommend having a pen and piece of paper next to you so you can write down your net profit and compare when plugging in different values. Unused capacity kills your numbers and profits! In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. Thousands of students playing business simulations have been asking a seemingly simple question from you, their teacher, and peers alike: how do I win the business strategy game? Let me know if you have any more questions. The most important advice in advance: it is all about PROFIT. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. When it comes to branded productions, you will have to toggle the materials, features and TQM to get the right S/Q. 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. just an update from the previous videos. In general though, a high S/Q strategy … 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. my advice would be to read my guide and follow the steps. or A-P plant. I have encountered two successful strategies so far: medium-quality shoes (S/Q rating of 5-6 stars) paired with high number of models (250-350 models) and high-quality shoes (S/Q rating of 8-10 stars) paired with low number of models (50 models). I don’t know why the game suddenly changed your numbers but I recommend using every last bit of your capacity. You are almost done for the Sales Forecast decision page. This has been very useful. Hi Yvonne. Promise I won’t have tons of question haha. It will be disastrous to sell your capacity as you will need it at some point. The private label market can be a good estimator of what each team is up to. Toggle between 6% and 8% or up to 14% to maximize profits across the regions. Since you’re only in the second year, I would honestly decrease your models to 50. I adjusted a little bit and the forecast is now close to previous year’s. unfortunately I have no experience with adjusting to my strategy in the late-game. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. I will walk you through each page chronologically. It is all about trying out all possible combinations. If you find capacity available for purchase, I would always directly purchase it. We guarantee it will pay itself and more. I put $1.00 pay dividends, which turned out 20,000k in total. Yes, it’s not too late yet to follow through with my tips. I now have another question about capacity. Above this price, you may not sell one shoe. We’re at the middle of the pack and wanted the best strategy to move up the ranks. 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! Hi Dennis. I guess because i grew too fast last week, this week’s net profit is negative (I didn’t make any adjustment yet). Okay! It is definitely around 1.2 though and I recommend starting off with this value. If you found your highest value for the best net profit, move on to the next value and do the same. we are having a horrible time of having left over inventory .. we are in year 13 and our numbers are ok we were 1st place last on year 11 and second place on year 12 but i having a feeling we have been focusing so much on our current numbers we aren’t going to end well any advise on what we should do on inventory and other sections of the game. As always, do not forget to save your decisions after you are done. You basically do the same thing over and over again, for every decision round. If there is no one else engaged in the private label market, price your shoes high. Furthermore, I spent all my cash on hand for dividends and stock repurchase to increase my ROE and EPS as much as possible. When bidding on celebrities, don’t bid too high. Authorize your construction and you save your decisions. Thank you so much! This way, business is evenly represented in all the regions. Be cautious though: Do not only look at the percentage change in net profits, but also at the total value as the total value might change sometimes but the percentage change remains the same. Business strategy simulations for educating management and marketing students in global business markets using an intuitive business simulation game. im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. Business Strategy Game tips and tricks While they might boost your image rating, they will decrease your profit. congrats on your success! Yes, I would only add capacity onto existing plants and not build new plants. So, should I decrease pay dividends here to $0.15? That's the reason you beat this other team; your net profit was higher than their net profit. 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. Try out each and every value and note down the highest net profit values. Companies need to raise funds using either debt … I am having trouble getting my company back into the positive ending cash after taking out a loan. Like should I add up all my wholesale prices from the 4 regions and then divide by 4 to get an average wholesale price and multiply by 1.40 to get the internet price or should I base it off the lowest wholesale and then multiply by 1.40 to get the internet price? Leave everything else unchanged. ?… 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). You don’t have to care about your retail outlets anymore so adjust the price so maximize your net profit, without the 40% rule. Your interest rates depend on your credit rating and the duration of your loan. Sorry for the late reply.. Been starting my new job and working a lot lately. Let me walk you through the various decision pages and explain you how to optimize each entry. Sure, you can ask anytime For easy winning of your BSG game, you need a high quality/low model or a mid-quality/high-model strategy. 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. Hence, make sure to plug in every possible value to reach the highest net profit possible. Celebrities will enhance your marketing efforts and help you sell more shoes. You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales. Check for price elasticity: After the sales forecast, check if changing the wholesale and internet … This is very helpful. H Company follows the Medium High Quality strategy … The Models Offered estimate seems pretty fair and you do not have to worry about it. That’s one of the things you should never do because you can always use capacity. Not doing anything (i.e. Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. Otherwise you will not sell any shoe either. I’d also like to point out that it appears the developers threw out NAFTA in the new version, so tariffs hurt pretty bad in Latin America. 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. 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. Do not worry about your market share percentage or any other value than your net profit. Please post any information pertaining to: strategies, tips, final … However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. These actions of the company will show corporate citizenship and its practice of operating the business in a manner that is socially responsible for about 4-5 years. When it comes to wages, try reducing their pay first so that you may increase the profits. We will now look at all the decisions you have to make to actually play the game and be successful with your strategy. I prioritize building additional capacity and purchasing plant upgrades. Here, you will plug in your previously calculated regional total sales volume for each region. So the question is: would you recommend for my team to still increase capacity despite this fact? With this strategy, you will be sure to make profits, which is the key to this online game. By clicking on the “Purchase Capacity” button, you can see whether someone else did the mistake and sold capacity. What should I do for year 12 and 13? However, you can successfully apply most of the following tips to either strategy. We had a bunch of copycats in practice year 12, but nobody has figured our profit-maximizing, low-cost strategy, and now they’re pursuing higher models in the real game. Because with more capacity, you can offer more pairs in private label and dominate the market there. I would definitely increase your S/Q rating to 8* and lower your models to 50 (this should be the lowest you can go if I remember correctly). If you have more cash available, go ahead and spend it for either one of the other options. Same for your superior material. Hey!! Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, and Best Practices Training all affect the S/Q Rating. Most of the decisions you can make here are a waste of money and will not benefit your company. Do not price your shoes too low, so that you will not make any profits with your sales. This way, you will increase your learning curve while the shoes cost less. Repurchasing stock will boost both your EPS and ROE. It will be, trust me. However, try your best. 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. Hello, So I would recommend you to decrease your models to 50 and remain at 8* for most of the time, if not even for all the remaining game. Click below to watch the video. (meaning I decreases it from $1.00 to $0.15). This scenario will be, especially when you will want to upgrade the S/Q if you will need a high-quality strategy or upgrade the Production Setup Reduction if you go with a low-quality strategy. But again, thanks! That means you already have a team (4 employees), some sales and some cash (a million dollars) in hand.– When you start the game, analyze the operational and financial numbers before you take any decisions. 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?. And you can basically never have enough capacity for private label. Here is the real deal ladies and gents! Try and set it to “Yes”. I was wondering how much more additional capacity that I should purchase after I’ve bought the first 1000 for NA. Before you even start plugging in any numbers, it is important that you decide for a strategy to pursue for the game.

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