I am having trouble getting my company back into the positive ending cash after taking out a loan. Yeah I will hold on to that for now. Thank you, Fin! Most of the decisions you can make here are a waste of money and will not benefit your company. While +2% might now always be spot on, I have made the best experience with it so far. With increased competition, prices tend to decrease. You will soon know why. Sometimes, clearing your beginning inventory at a discount will boost your profits. Quiz 2 Chapters 1 an 2.docx. The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. 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. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This would leave you with a bunch of shoes unsold. We even understand the very details such as marketing per pair of shoes, cost of warehouse, administration per pair of shoes, which can contribute to the total cost making the Net Profit higher or lower then decide the Business Results and overall market development. So I doubt on his strategy. Do I need to change another setting on another page for this to remain positive? On initial input of the change there was a big boost to my numbers, but when I left the page the game suddenly dropped my numbers below my original ones. If you found your highest value for the best net profit, move on to the next value and do the same. Hi! Do this for all the four regions. If I have further questions do you mind I ask you for help? However, if you need a few points for the image, consider using the Corporate Citizenship but take note of the expenses. Or you have read it but still do not know what strategy to pursue or what is going on? 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). 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. Thats a game changer!! We give you. Business Strategy Game - Phdessay 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. You basically do the same thing over and over again, for every decision round. While those two values do not change your S/Q rating, they will change your net profits. Key pharmaceutical distribution warehouse questions to ask a 3PL. Most players play hard from the first round, thus increasing S/Q, the number of models, reduce the price, putting for advertisement three times higher than average, and bidding for celebrities. I cant seem to find it. This essay was written by a fellow student. With the Business Strategy Game, teams of students run an athletic footwear company in head-to-head competition against companies run by other class members.Company co-managers must make decisions relating to plant operations, distribution and warehouse operations, work force compensation, online sales at the company's web site, sales and marketing, and finance. After you have done this for both the N.A. Like in the real world, the BSG companies compete in the international market arena, selling branded and private-label athletic footwear in different geographic regions such as Europe-Africa, North America, Asia-Pacific, and Latin America. Hey!! The key information form balance sheet is not just Total Cash outlays of 711,362 or Net Cash balance for every year. Okay. 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%. Hi! This requires an overhaul of teaching practices and learning techniques that cater to the changing economic trends. Find out how much you want to bid for each celebrity. You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales. However, do not forget to calculate your possible additional expenses for your celebrities. If you find capacity available for purchase, I would always directly purchase it. However, it will also decrease your ending cash. Use the remaining 30% capacity to sell shows in private-label! The Business Strategy Game is a hands on learning exercise that will give The Students valuable decision-making practice and develop powers of business judgment. However, try your best. You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. Strategic warehousing impacts all warehouse operations, from inventory management to order fulfillment. I always went with 500 every second year, but it depends on your market and competitors. Otherwise, their endorsement effect declines. . In the later years, when the cost in NA is high, we have built a new factory in LA, we can ship from LA to NA (eg. However, some values, such as the Wholesale Price have decreased instead of increased. 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. It is important to toggle your values and find the best combination to maximize your net profit. All footwear Furthermore, G-Brand will continue focus on what we are top leading like S/Q, models, strong advertising, retailer support, celebrities. I guess because i grew too fast last week, this weeks net profit is negative (I didnt make any adjustment yet). And he also purchase 4000 capacity in the first year but no advertising expenses. If I have cash available after doing all my decisions, I like to alternate between building additional capacity, purchasing plant upgrades, paying off loans and repurchasing stock in the following years. View Distribution & Warehouse.pdf from MGMT 5355 at Texas A&M University, Corpus Christi. Okay! I never really watched my EPS or credit rating (ofc credit rating should be a B at least). Thanks a lot! Business Strategy Game is an online business simulation game where class members are grouped into teams and assigned the task of running an athletic footwear company in head-to-head competition against businesses managed by groups formed by other class members. If you have any questions, suggestions, or comments feel free to comment and I will do my best to help you out. This is probably the most important decision entry page in the game and you will be spending most of your time here. So if one of your markets is not satisfied or prices are high, I would built capacity to attack this market and sell a lot of shoes for a cheap price, to guarantee you the lowest price so that you sell all your offered shoes. Avg. values have changed. in year 17-18-19 and 20). I would look at the Margin Over Direct Costs value at the very bottom of the page to see where it is most profitable to ship your shoes to. Do not worry about the Plant Capacity / Upgrades page. More than two groups following the same strategy suffer the same difficulties since they create direct competition among their target market. This Branded Distribution table of decisions seem to need more time. You then want to select 0% as the Portion of the $XX mil. Strategies, decision screens, reports and tests. You possible might decrease your net profits with this, but it is definitely worth it and will pay off in the long-run. Business Strategy Game - Week 5 (Year 14) Commissar BRO 9.95K subscribers 10K views 6 years ago And so we creep into Year 14. Once you get the Main Menu for running the company, print a copy of the Year 10 company reports, a summary of the footwear industry report for year 10, and competitive intelligence reports. It has to find ways expand so that cost of production at high quality still low enough to increase high margin, high market share and getting over all high Net Profit. I just have a quick question. The Strategy Business Game learned all aspects such as production, distribution, sales forecasting, finance, marketing, celebrity endorsements, private label operations, corporate . If you set your price lower, you will sell more but lose due to low profits. Largest network of retailers around the world. So, should I decrease pay dividends here to $0.15? I feel you. Branded Distribution You will also receive a copy of Currency Made Simple. We always used the 10 decision groups of Finance and Cash Flows in most careful ways to maintain high EPS, in fact we should spend more Cash in hand to buy back Share in early years. Is it too late to reduce that to 50 as you suggested in your recommendation? If you tweak those numbers, your demand will adjust accordingly. However, to be able to do so, you need available capacity. If you have more cash available, go ahead and spend it for either one of the other options. Should I continue expanding NA or AP and by how much? The Strategic Role of Warehouse Management in the Supply Chain Business Strategy game year 11 Internet Marketing, I need to figure out the appropriate units in the boxes that are in blue for best case scenario Show transcribed image text Expert Answer Transcribed image text: After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. We always provide best S/Q with reasonable price just 15% higher than Industry Average, with Largest collection 500 models and also largest networks of retailers worldwide. We had a bunch of copycats in practice year 12, but nobody has figured our profit-maximizing, low-cost strategy, and now theyre pursuing higher models in the real game. We will keep Expansion of Internet Sales, keep low-cost-strategy with Highest Values that customers can get Online. Often provided as part of an integrated enterprise resource planning (ERP) suite of business applications, a WMS can support and help to optimize every aspect of warehouse management. 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 arent going to end well any advise on what we should do on inventory and other sections of the game. But this year I have a lot of cash on hand, I upgraded my plant, should I also build the LA plant although I dont need that much capacity at the moment? If you add capacity it will show you the price. This means, without increasing your superior material or enhanced styling / features, you gain 1 star. The Business Strategy Game is an online exercise where class members are divided into teams and assigned the task of running an athletic footwear company in head-to-head competition against companies managed by other class members. Now, decide to which region you want to ship your private-label shoes. Yeah I had that in the first weeks as well. Just plug in numbers and note down your net profit values. Hence, try to keep your internet price at least 40% higher than your wholesale price. Thank you very much for your kind words! 7.39 to 12.81 over last three years, much higher than Investor Expectation of 4.3. So far I have only build a 1000 EA plant and additional 500 NA plant. I am in Y12, and I am adjusting for Y13. Your team will experience the challenge of coming up with a successful strategy, especially when frequently faced with changing competitive business environment. Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. How can the company lead the market in 10 years? Hi Yvonne. Never give up, we can always find a good way to improve a company, despite its position in a market. Over the next five years, G-Brand will pursue strategies that will help it improve its financial bottom line, especially ROE because the company has quite high Equity. Plant Capacity - BeatBSG And Im so thankful for your post!!!!!!!! This can have a positive impact on energy levels and your overall health. Sure, you can ask anytime This is quite good at the year 19 and later. So when following the steps described above, you will have positive ending cash really soon again. However, it will also decrease your ending cash. For only $35, get instant access to the Business Strategy Game Guide. You are now all set to dominate your industry and win the BSG! Unlock this data. The demand depends on your retails, price and quality. The S/Q upgrade is the best option if you choose high-quality strategies, while setup cost reduction is ideal if you decide to have several models. My group and I are also playing the new version of the game and were little bit lost. Also, G-Brand need to keep high market shares, year 17 market shares are reduced, but G-Brand has get back to Top in Year 18. The Business Strategy Game (BSG) comes in handy as a realistic representation of the actual practices in a virtual setup. The key factors need to be considers is Cost of Branded Pairs Sold, e.g. You need the capacity for the private label market. Looking at Company Operating Report, Distribution and Warehouse Reports, we see Cost of Branded Pairs Sold in Year 18 is $25 and Warehouse Operating Expenses is 3.71. Logistics strategy as an enabler of new business models. thank you for your help. I now have another question about capacity. This way, you will save more money while getting a high S/Q. However, if you happen to use overtime at either of the two plants, plan on increasing the plants capacity in this decision round. In year 18, end of the game, G Company has more than 150 million Cash in hand, so we pay old loans to get A+ Credit Rating. Try out each and every value and note down the highest net profit values. And I would not build another plant, rather increase capacity in the plants that you already built. We need to adjust the number of productions to optimal these decisions. Buy I have quite a lot ending cash. Copyright 2023 | Powered by Top Academic Writers, Automated page speed optimizations for fast site performance, Leadership and Management Assignment Help. internet-marketing B Company- Year 11 Heip Print save | Chegg.com You will also receive a copy of Currency Made Simple. That is regardless of the low price, high quality, or variety of models. You should slightly increase your dividends year by year. Profit is crucial in the BSG game. You can win the game if you follow the High quality and the Low number of models. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. We can check that before making decisions. Net Profit of 150 million with increase of 25% every year. On this screen, you can handle your financial decisions for your company. I dont know why the game suddenly changed your numbers but I recommend using every last bit of your capacity. We need to figure out most effective ways to increase ROE by increasing Net Profit but keep Total Equity low, not expanding faster than increase of Net Profit. Thank you! Strategies, decision screens, reports and tests. You might think that using green footwear materials or using recycled boxing / packaging is a good decision, especially with the currently ongoing environmental debates. Do you have any suggestions? You will get the hang of it after the first few decision rounds as it is always the same procedure. Hello. Keep control of Private Label market with upgraded factories that can produce most of quality at lower cost than any competitors. I recommend building additional 1,000 capacity for the North American plant in the first year, if your cash balance allows it. thank you:). Let me walk you through the various decision pages and explain you how to optimize each entry. This like a trial and error process and does not necessarily have to make sense. Purchasing capacity is 20% cheaper than building new capacity on your own. That being said, when you go with the strategy explained in my post, you will have maximized profits. I would like to ask about the Pay Dividends. My stupidness did not know that I should not pay dividends while Im in LOAN mode. 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. Moreover, you can benefit from Business strategy game help where professional BSG players have many years of experience. . unfortunately I have no experience with adjusting to my strategy in the late-game. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. The most important advice in advance: it is all about PROFIT. Then we can analyze business results to identify new marketing, production strategy. The Business Strategy Game provides your team with the opportunity to discuss the real business issues while working together to assess the options and make decisions linked to the overall company strategy. So for the last year I didnt stick to the rule that the internet price has to be 40% higher than the wholesale price. G-Brand will continue to make all efforts to use good materials which environment friendly. But again, thanks! More effective. But the plant page did say not recommend to build the plant so I was hesitating. This can get confusing at the beginning so here is a table to show you the process. I was thinking about building a LA plant because I took the majority of private label there last year. Thanks! We need to look at bottom line to see Cost of Pairs available for Sales. This is a good lesson in class that can be valuable in life. On the other hand, other players gamble for the private market with a high price, a large volume to lead. Cost of pair sold, Ware house expenses, Marketing expenses, and Administrative expenses, all the 4 key contribute to Operation Cost. In this section, you can upgrade your plants. Study on the go. With this, they raised the global capacity to 30,000 when the potential global demand (including private label) is only 24,218. This way, you get a clue on the actual standing of the company entering into year 11. It is best to build only as much capacity as you can afford without taking any loans. Do this for all four regions. Therefore, the first set of decisions your team of managers makes is for year 11. Because with more capacity, you can offer more pairs in private label and dominate the market there. This is the key to affect our strategy in the next five years. How can the company overcome tough competitors who seem to know most of the things you know? The issues depend on cost of production. You can only do one upgrade at a time in each region and a total of two updates per region. Like I said before, you should be building capacity, yes. You have successfully adjusted to your competitors. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Keep in mind to check your profits and ensure they get as high as possible. We have quite large Total Shareholder Equity of 446,571. Yes, I would definitely do plant upgrade option C! These include; Lowering the costs come with lots of benefits. Business Strategy Game Simulation - bsg-online.com It is all about trying out all possible combinations. Important: Your Sales volume, not the production volume that includes the rejected pairs! Students use the BSG to cultivate managerial skills for decision-making purposes. With respect to our employees well-being, our G-Brand Company intends is to continue its practices of investing in employee-development and utilize a compensation model that encourages our employees to work hard, while simultaneously striving to be more productive and efficient. You said that the internet price should be 40% above wholesale. Hi. From round 2, there is a risk that other groups can set the same strategy with the winner can be you. The Business Strategy Game is an online exercise where class members are divided into teams and assigned the task of running an athletic footwear company in head-to-head competition against companies managed by other class members. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. . I have extra capacity in the LA plant (worst place to ship from to any place outside of LA) which I tried to sell off. And you can basically never have enough capacity for private label. 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. These strategies are easy to see in the real world of business. Let me know if you have any more questions. Set your price to whatever maximizes your profits. To do so, first plug in your N.A. From Company Operating Reports, we focused on Balance Sheets and Cash Flow, we see Total fixed Assets of 573,906; Total Liabilities of 127,335 and Total Shareholder Equity of 446,571. You can also pay dividends to your shareholders. This means, you decide about the S/Q Rating of your branded pairs produced and your compensation and training for your employees. Hi Lee, After you have found the right price, click the Save Decisions button. However, keep track of profit since you are cutting from the profit for PR products. As always, do not forget to save your decisions after you are done. If it is 0%, that is fine as well, do not worry about it. However, if you want to do it more precisely, note down each industrys percentage change over the years and use this number instead of the +2%. Hi, youre welcome. Thanks for your strategy! From this highest whole dollar amount, I plug in every possible value around it and find the price that yields the highest net profit. What are the niche markets that your competitors dont see? Here, you have the opportunity to sell your existing capacity. It sometimes works. On this decision page, you can bid on celebrities. And profit is what the game is all about. G-Brand has been performing for many years Higher than Investors Expectation. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. Again, maximizing net profit is all you care about with our strategy determined at the beginning. They have all changed by +2%, just as you plugged it in. This is the case of iPhone or any other high end products are bringing values to customers such as cars and fashions.
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