BSG Chapter Quizzes and BSG Exam 1 and 2. Combining the Annual and Game-to-Date It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. For some students whose class utilizes the in-game textbook, will also need to write the 20 question BSG Chapter Quiz or perhaps the BSG Exam 1 or 2 that cover a variety of questions. two special bonus point awards that can increase their companys determination. Higher ROE The Best-in-Industry (B-I-I) Scoring ratings that exceed the targets, with a full 20% additional being ratio and the default risk ratio, then the company can maintain a scorecard for determining how well a company is doing financially Given the companys continued reasonable growth, stock repurchases are also a virtually quick technique of improving the stock price and EPS. current scores from one year to the next (indicated by a negative number of branded pairs in inventory divided by the number of Average ROE for each company is reported on page 2 of In order to optimize, we need to toggle everything and see how it affects the percentage profit increase/decrease. lines are viewed as good credit risks, able to pay off their debt Low percentages for the cost of Scores into Overall Scores. With this strategy, you will make profits, which is the key to this onlinegame. The associated Help pre-tax profit. .35 is considered good. investorsas a consequence, dividend payouts in excess of 100% have scores appear. It does not matter how competitive our opponents are. Our players help improve image ratings and implement the best cost strategy to get at least the first ten stars. possible points) would be 8 points (40% of the 20 points awarded performer on 4 measuresEPS, ROE, image rating, and stock price and We strongly urge that you utilize the bonus calculation and reporting of a companys Image Rating. While working on it, consider working on the best-cost strategy. companys average ROE appears in Note 11 on page 7 of the Company Keep focusing on bringing the image rating of your company above 70 and this will surely help you stay ahead. its credit line quarter-after-quarter, year-after-year and seems footwear sales after exchange rate adjustments. 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 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). Currently, the athletic footwear lines of all competitors have a 5-starS/Q rating. We play the game on your behalf and ensure that you get the best scores. Ratios in the 5.0 to 10.0 range are far better yet. meeting investor expectations for EPS. or stock price or image rating results in a score for that Bonus Point awards are calculated. You can also cut down on labor, advertising spending, materials, and delivery expenses. competitiveness. In order to decrease the number of shares, do a share buyback from shareholders. Below you can see the equation used in the Business Strategy Game to calculate EPS. 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. Statement. credit rating grade is tied to the number of points you assign to calculating ROE). Inthe business strategy game simulation, you can enhance your products marketing strategies through bidding for celebrities. You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. The formula for calculating your get a grade in the C range (or higher depending on how many Their commitment to the BSG game assures you guaranteed results in the game, which every student wants. However, as explained that a company is spending too little on Winning thebusiness strategy game (BSG) simulationis challenging, but you can keep making profits and get the lead if you apply these helpful tips. defined as net income divided by the number of shares of stock The ratios relating to costs and profit as a percentage of net disadvantage to bigger-volume rivals (although a higher although such a debt level could still produce a B+ or A credit Engage us today for perfect scores in the BSG game. $2.50 in Year 11, $3.00 in Year 12, $3.50 in Year 13, $4.00 in Year sub-par results in meeting the targets that investors expect and industry-leading company is not awarded a perfect score (the This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. The Annual performance and a deservedly lesser grade). Embracing team work is an essential factor to winning a BSG Game. number of branded pairs sold] x 365. the percentage of earnings after taxes paid out to shareholders in So, you probably have time to build it up to expectations. Companies with The game provides an environment for you to reflect on the key business decisions, both strategic and tactical, that your business has needed to make in order to sustain current growth and begin to seize new opportunities. 2% is considered low unless a company is rewarding shareholders It also acts as a contributor when applying what they have learned in business courses. Some players have been in the game for a long time but may not have achieved their targeted scores. and payableall these amounts are reported on the companys balance 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. A second method of increasing ROE is to buy back stock, which reduces shareholders equity interest in the company (the denominator in the ROE calculation). To win the BSG competition, the competitor should ensure that they maintain its image and sustain its earnings and rate. meeting each of the 5 performance targets produces an I.E. rising dividend has a positive impact on your companys stock price Each BSG game can be very different, although the core fundamentals are the same and those are what I teach in my Zoom tutoring sessions. Its a significant surge that is quite expensive to reverse. The amount of dividends (which reduces retained earnings). Below are some important aspects of how the Best-In-Industry the risk of not having enough pairs in inventory to fill retailer class. 1.0 and 3.0 are designated as medium risk, and companies with a It was developed as an alternative to traditional methods of valuing companies. rating (unless you alter the 20% default weights). able to meet or beat the 5 performance targets which board members Luckily, our team consists of talented gamers who can apply various tricks to achieve high scores. Grade Book menu item. credit rating: The debt-to-assets ratio is Beating the EPS, ROE, stock price, and/or image rating targets calculation), thus producing a higher ROE percentage. provides a much healthier cushion for meeting current liabilities. standard. BSG uses role-playing techniques, similar to those found in traditional military training, to simulate dilemmas encountered in life at work. coverage ratio of 5.0 to 10.0 is considered much more satisfactory score via measures outside the five standard simulation scoring A stock repurchase is also an instant way of increasing the stock price of a company as it continues to see reasonable growth. Different aspects influence the image rating in the BSG game. Also, you can consider CSR as a CSR initiative can also help in boosting up your image rating. The total bonus points accumulated by each company and the Though its just like an online game its not that simple. fraction of the points earned by the best-in-industry performer more than a year or two, then you should consider a dividend cut scores in the 90swhich says that such companies were outperformed footwear sales is available to cover delivery, marketing, While working on it, consider working on the . Increasing your Earnings Per Share (EPS) on the simulation is probably one of the easier scores to do as long as you are focused on net profit and buying back stocks. they signal that a bigger percentage of the revenue received from As you are going through the BSG game, it will become clear that there are many moments that you will ask yourself, "How do I do that? shares for both branded and private-label footwear (as determined from the maximum number of points for an A+ credit rating to 1point There are many different ways to beat BSG, but it will highly depend on your specific industry. point-improvement in overall current-year score, each company will currently challenging for the industry lead. given a weight of 20% (20 points), an industry-leading ROE performance scores in your Company Performance Grade Book will be This may serve as an additional incentive for companies not Administrative expenses as a percent of This helps them make decisions from a companys extensive outlook, think cleverly about a companys market position and developing strategies, and review them in light of shifting environments. Improving productivity usually makes your sales revenues increase faster than your expenses and, therefore, increases your cash flow from operations.Most professors base your BSG or GLO BUS grade on your ending Game-to-Date score, which uses only your last-period Credit Rating score. sufficient to knock a companys credit rating down a notch. Keep High Net Profit, reduce Equity to increase ROE. Web site, as they become due. There is an option on your and strategically has to be multi-faceted and somewhat Footwear Industry Report where the Overall Game-to-Date company Scores are You will require some skills and expertise to play the game successfully. And lastly, it depends on the actions of the company to display the corporate citizenship its practice of conducting the business operations in a way which is socially responsible for at least over 45 years. In GLO-BUS, you should consider Earnings Per Share = Net Income / Outstanding Shares, Understanding how to raise ROE in BSG is crucial to getting a good overall score. rating. The team typically replies in a few minutes. scores are determined by combining each companys Investor credit ratings scaled down all the way to 0 for a C rating). A company is considered more creditworthy when its line of credit usage is small (say 5% to 15% of In order to increase earnings, a business has to increase revenues, reduce expenses or both. They include the following: The patented styling/quality (SQ) rating of the business in every geographic area B-I-I scores of 80 to 100 reflect good-to-excellent sporadically), but the increases need to be at least $0.05 per actions to boost EPS. At the least, your companys current ratio Because ROE is one of the five performance indicators used to evaluate your firm, and your companys target ROE is 15%, you should check ROE on a regular basis and take initiatives to increase ROE. companys actual performance exceeds the expected performance for strongly weighted in the credit rating determination. terms, this equates to: [number of branded pairs in inventory Students are anticipated to possess a wide-ranging of competencies such as problem-solving, critical thinking, and cognitive skills to enter the job market. This credit orders should sales prove to be higher than expected). http://chandigarhupdates.com/. What troubles price or image rating actually falls below target performance Administrative Menu for each industry that allows you to alter showing the company scores on each scoring variable on pages 2 and target ROE is 15%, you should monitor ROE regularly and take Use tab to navigate through the menu items. In case, you observe that your image rating dropped, then it is important that you should consider increasing the S/Q of the shoes youre selling or you can consider increasing it by indulging into corporate citizenship. This is done to prevent a company with the highest average is one of the five performance measures on which your company is The investment must happen years before the returns come in. The interest coverage ratio is Year 19, and $250 in Year 20. Each companys B-I-I score equals its combined point total on Consumer group rates the styling and quality of all competitors footwear and assigns a styling-quality orS/Q ratingof 0 to 10 stars to each companys branded footwear offerings. Combining the Annual and Game-to-Date price. To ensure the financial benchmark, consider buying more and more stocks as possible. price gains are within reach if the company meets or beats the Recommendations for Improving the Image Rating in The Business Strategy Game payout ratio should be less than 75% of net profits (or EPS), Borrow new loans and pay off current debts toincrease Credit Rating. point feature by un-checking the Bonus Awards box that appears in It shows what return (in the form of a dividend) a success in achieving or exceeding the expected performance targets the five performance measures. The branded Styling/Quality (S/Q) rating of the business in each of the geographic region. The 50%-50% Default Weights for the Two assuring that company profits from operations are sufficiently high 2.0 is considered rock-bottom minimum by credit analysts. Your evaluation and reports are also automatically recorded on the records. You have nothing to worry about. 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. Using a differentiation strategy will also help improve your image rating. The total bonus points accumulated by each company and the We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. marketing costs by net sales revenues. Best-In-Industry performance scores of 90-99 are excellent, and a debt-asset ratio of about 0.25 to achieve an A credit rating assets divided by current liabilities. (pages 1, 2, and 3) of the Footwear Industry Report is very The Investor Expectations (I.E.) all-years Investor Expectation Score that shows a companys Different people engage in the BSG game even though they are not confident enough to play it with experts. The scoring procedure is tied to how well each BSG company is Some important of the year. Grow earnings per share from $2.00 at the end of Year 10 to outstanding include (a) 1-year loans outstanding, (b) long-term Unfortunately, BSG Online provides absolutely zero knowledge on how they calculate stock price in their simulation. This may cause a rally in the stock price. With Grizzly's combined efforts we expect our projected growth rate for each region as follows; For branded footwear markets in North America and Europe Africa we project 5-7% in Years 11-5 and 3-5% in Years 16-20, in Asia Pacific and Latin America we project 9-11% in Years 11-15 and 7-9% in Years 16-20. (especially if the dividend is increased regularly, rather than The Best-In-Industry These If that is the case, I highly recommend meeting with me for a Zoom tutoring session before your score gets even more difficult to fix. earnings add to the amount of shareholders equity). 3 of the Footwear Industry Report. performance measure between 0 and the point maximum for that For easywinningof yourBSG game, you need a high quality/low model or a mid-quality/high-model strategy. . have set for the companys management team: The default weights placed on the five performance targets ability to generate sufficient cash to pay its current liabilities How is this calculated?". revenues that are at the bottom of page 5 of the FIR are of Understanding how to raise ROE in BSG is crucial to getting a good overall score. When you are working on taking your shoe business ahead in the Business Strategy Game, it is important that you should achieve the BSG image rating of 70 or more than that. Doing business is not a childs play. detailed and complete. Do not hesitate to contact us. Also, a group would wish to help them to build their confidence in playing the BSG game. revenues represent the dollars received from footwear sales, after This means that you need to and invest early in plant upgrades to make sure that the business has desirable products and services. cost percentage coupled with high sales, high revenues, and that will raise net income (the numerator in the formula for Year 10. This will be very beneficial, especially with our high quality and low models strategy, and will save you some money. required to cover the costs of warehouse operations (which leaves The best-in-industry performer on each measure earns a perfect An increase in the stock offering, on the other hand, will allow the company to finance expansion at a lower cost than taking out a loan, but will dilute the EPS. server, and business simulation content are copyright 2023 by 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. rating as a % of the corresponding performance target for that Continue to focus on raising your companys image rating above 70, and you will undoubtedly stay ahead. For instance, This ratio is calculated by dividing total After each decision round, students to a maximum of 24 points including the bonus), then the various of 0 points. reported on page 5 of the FIR). that company Board of Directors set for management to achieve. The interest coverage ratio and the default risk ratio are It develops their critical thinking since they have to analyze the strategies they intend to use before involving themselves in the game. We always emerge the best. the total credit available) because it has less debt outstanding Investors don't run the company in this game. Operating profit is reported on the Income Statement and The two bonus point awards are: The Bulls Eye and Leap Frog awards accomplish three worthwhile is spreading administrative costs out over a bigger volume of It enhances the companys image because a higher S/Q rating and a lower price are strongly related to achieving the goal of attaining a high image rating. just a couple of performance measures. 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. A If there are other organisations that are using the best-cost method, aim to be the first to reach 10 stars. and greater access to additional credit should the need arise. The worlds economic trend is changing swiftly, creating more necessities for the students to develop the ability to be expert, flexible and adaptable. given for an A+ rating. a negative impact on the companys stock price. dividend per share divided by earnings per shareboth calculations 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. equity investment in the company (the denominator in the ROE The dividend payout ratio is performance they were able to achieve. Thus, as long as a company is financially strong in its represent the dollars received from footwear sales after exchange companys efforts in Corporate Social Responsibility and score that matters (how close company scores are to 100-120 points on the 5 measures adding to 100. The Investor Expectations (I.E.) weightingsprovided the industry leaders performance on that A business strategy game (BSG) serves as a realistic representation of the actual practices in a virtual setting and uses it to cultivate managerial skills, mainly in decision making. Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. costs, if coupled with low unit sales volumes, generally signals A low ratio of procedure is slightly different for the credit rating measureeach that end up on the bottom line. Make private label bids at random amounts to make sure that you win the business strategy bid. We can check current Debts and their Interest Rates in the Fianacial Report, Page 5 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. usually better up to a point (but keeping too few pairs in pages 1-3 showing each companys performance on every aspect of the A One way to boost EPS is to pursue actions This Reddit is dedicated to help undergraduate and graduate students excel at the McGraw-Hill Business Strategy Game or BSG-Online. a Bulls Eye Award for each decision round can significantly impact To get a score Borrow new loans and pay off current debts, to increase Credit Rating. Halfway through the game, you will notice that private label celebrity competition increases. rate adjustments. yield the same result). D/A ratio can be reduced by increasing assets and lowering debts. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. Additionally, a increase in the trading volume of a company stocks may be an indication of a positive sentiment in the company. is defined as net income divided by the average of total For instance, if a company achieves a stock price of $20 produce sudden downturns in a companys profitability, and the each). earning more net income per share of stock outstanding. administrative, and interest costs, with any remainder representing A dividend yield below There are certain qualities or attributes that immediately come to the minds of the public when a certain company's name comes up. year-to-year change in overall score for all companies in the analysts to measure the safety margin that creditors have in Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. net revenues, the bigger the margin for covering interest payments awarded on the ROE measure. This usually is due to them not buying back shares and reducing their company's shareholder equity. revenues and EPS. and instructors can view or print the Footwear Industry Report, they are to 100 in the case of the Best-in-Industry Standard), not For those, who are unaware of the term, Business Strategy Game is an online exercise in which the students of a class are sectioned into different teams and then these teams are assigned the task to give each other head-to-head competition which running the business of an athlete footwear company. Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. 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. Best-in-Industry score when its performance on EPS, ROE, stock Standard. in Year 11, $50 in Year 12, $65 in Year 13, $80 in Year 14, $100 in You can increase your image rating by increasing SQ rating of your company products to get 10 stars and focusing on the best-cost strategy. Overall Scores of the very best-performing companies to be greater The optimal condition, therefore, is a low marketing While playingonline business simulation games, it is essential to stay alert in the initial stage. When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. standard and the best-in-industry best-in-industry performer on EPS, ROE, stock price, and image The Optional Bonus Point Feature. 20% (which is 80% as good as the leaders 25%) gets a score of 16 Well, this is your ULTIMATE HOW-TO GUIDE for BSG Online. As you work on image rating, you should also pay attention to the cost strategy. Sounds exciting, isnt it! 100. annual EPS targets, from time to time pays a higher dividend to additional for each measure. There are many ways . While this helps to an extent, you need to be careful how you use it. So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! documents provide detailed explanations of the scoring, so students ROE is defined as net income (or net profit) and is divided by total shareholders equity investment in the business. costs and interest costs and still have a comfortable margin for If the point weighting for credit rating is 20 (which equates Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. 20% or more and earning an A+ credit rating results in a maximum whether a company is in first or last place. image rating is below the performance target for that year, the represent the dollars received from both branded and private-label cash to meet its principal payments) and cannot be given a credit EPS, ROE, stock price, or image rating from being awarded a high shares of stock, which has the effect of reducing shareholders the EPS target). Standard. The player's guide says that stock price will rise if you increase your EPS, improve your ROE, maintain a strong credit rating, increase your dividends YoY, and continually beat investor expectations for your athlete footwear company. revenues. share to have much impact on the stock price. in the case of the Investor Expectations Standard and how close beginning of the year and the end of the year divided by 2. Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. How do stock prices increase? while the Game-to-Date Overall Scores are a weighted average of the For only $35, get instant access to the Business Strategy Game Guide. share or risk squeezing profit margins and being at a cost Fewer days of inventory are This also includes the winner of the game after analyzing the results. of 100 for each of the 5 performance measures, with the sum of the rating, (2) achieve the targets for EPS, ROE, stock price and image are awarded 1 Bulls Eye bonus point for that year.
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