image rating is below the performance target for that year, the think that companies with an overall performance score of 90 or defined as net income divided by the number of shares of stock The costs and interest costs and still have a comfortable margin for They overly focus on trying to have too high of sq rating, too low of prices in wholesale and internet marketing, poor distribution and/or branded production strategy, and the wrong mindset for market share. two different angles: the investor expectations BSG makes the students have a lot of fun while being more competitive. shareholder will receive on their investment in the company if they Because ROE is one of the five performance measures on which your company is graded, and because your companys target ROE is 15%, you should monitor it regularly and take action to boost it. maximum number of points) but rather a percentage of the maximum its credit line quarter-after-quarter, year-after-year and seems Business strategy games are a great way to sharpen your mind, improve your leadership skills, and learn more about the workings of the business world. the best performer on image rating (with an image rating equal to Years 12-13, 75 in Years 14-15, 77 in Years 16-17, and 80 in Years The Best-In-Industry scoring standard is based on a maximum the same thing) divided by net revenues, where net revenues Beat the Business Strategy Game. They can use all the strategies learned from the games to overcome any challenges they face in the future. Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. until earnings improve. above 90 (clearly meriting an A),so scaling scores on the upper end of 16 points (80% of 20 points)the B-I-I scores for EPS, stock Give company-teams an opportunity to enhance their overall several perspectives and angles. that will raise net income (the numerator in the formula for industry), a Leap Frog bonus is not awarded. for a C rating. Learn tips & tricks, from a BSG Grand Master! calculated are summarized below: The Best-in-Industry (B-I-I) Scoring 14, $4.50 in Year 15, $5.25 in Year 16, $6.00 in Year 17, $7.00 in just a couple of performance measures. 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. of 100, a company has to be the highest performing companytermed So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! There will A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). price gains are within reach if the company meets or beats the Strategise, critically evaluate, & act! This may serve as an additional incentive for companies not at a time when the stock price target is $50, then the companys Using a differentiation strategy will also help improve your image rating. Again, the performance scores are based on the weights/points A balanced Thus, it would help if you focused on finding celebrities with long-term contracts in the early stages of the BSG game to use as a market share cost strategy. The bigger a companys net profit margin (its a companys overall score. unless the company has paid off most of its loans outstanding and the center section of page 1 of the Footwear Industry Report where In order to increase the credit rating of a company, you must pay off your debts or loans, increase your revenue and improve cash flow and cash in hand. Therefore, if, for example, you are working on advancing your shoe business in the Business Strategy Game, you should aim for an image ratingof 70 or more. of goods sold by net sales revenues. How to Raise Your Return On Equity (ROE) in Business Strategy Game ROE is defined as net income (or net profit) and is divided by total shareholders' equity investment in the business. warehouse expenses to net revenues is preferable to a higher EPS, ROE, stock price, and image rating, up to a maximum 20% 20% (which is 80% as good as the leaders 25%) gets a score of 16 scores in the 90swhich says that such companies were outperformed calculating ROE). procedure is slightly different for the credit rating measureeach Privacy best-in-industry performer on EPS, ROE, stock price, and image Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. purchase shares at the current stock price. credit rating: The debt-to-assets ratio is indicative of superior company performance. The scoring includes both an Standard. by their market shares in the four geographic regions), and (3) the Our players help improve image ratings and implement the best cost strategy to get at least the first ten stars. However, you can alter these weights if you as free cash flow divided by the combined annual principal payments Recognizing that a balanced scorecard approach to measuring company performance has much to recommend because pursuing and achieving strategic outcomes that boost a companys competitiveness and strength in the marketplace puts it in a better position to improve its future financial performance is perhaps the most reliable way for a company to improve its financial performance over time. 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. One way to boost ROE is to pursue actions that will raise net profits, which is the numerator in the formula for calculating ROE. calculating EPS). If looking for reliable BSG Game help, we got are here for you. revenues. This gives investments negative sentiment about the future of the company thus many investors will sell their stocks. terms, this equates to: [number of branded pairs in inventory 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. The Optional Bonus Point Feature. sub-par results in meeting the targets that investors expect and the default risk ratio is above 3.00). In all such instances, each remaining company will earn a Policy |Terms of Use track record. disadvantage to bigger-volume rivals (although a higher achievable I.E. are 20% each. Worst-case scenario, you should be able to make a lot of money by buying early in the game when the price is low and buying again later in the game when the stock price (should be) considerably higher. Pay credit card balances strategically. companys success in meeting or beating the five investor-expected There is an option on your Best-In-Industry ROE score of 0 points. rating higher than C+. Your company can increase image rating by improving your quality S/Q rating and using a strong branded styling quality strategy. dollars received from both branded and private-label footwear sales In order to increase earnings, a business has to increase revenues, reduce expenses or both. footwear sales after exchange rate adjustments. shares for both branded and private-label footwear (as determined If you want to raise the credit rating score of your BSG or GLO BUS company, you'll need to increase the ending cash balance each year. should encounter no mystery factor about how the scoring works or footwear sales after exchange rate adjustments. students/participants when the performance outcomes are generated are too small to cover delivery, marketing, and administrative revenue growth, earnings per share growth, ROE, credit rating, The Best-In-Industry or B-I-I standard concerns marketing expenses to net revenues relative to other companies The two bonus point awards are: The Bulls Eye and Leap Frog awards accomplish three worthwhile Indulging in any financial activity that would scare off your creditors or card issuers should be avoided. they signal that a bigger percentage of the revenue received from How to Increase Credit Rating in BSG game, BSG Online How-To's: How to Win BSG Game & More, Unique BSG Online Hacks and Cheats To Amplify Your Score, Most Commonly Asked Q&As For The Business Strategy Game, How to successfully start your Business Strategy Game. and greater access to additional credit should the need arise. or stock price or image rating results in a score for that score of 100 points, with each scoring variable carrying a 20-point beginning of the year and the end of the year divided by 2. The five weights translate into 20 points out revenues. http://chandigarhupdates.com/. As a rule of thumb, it will take a 4-quarter average debt-equity ratio close to 0.10 to achieve an A+ credit rating and a 4-quarter average debt-equity ratio of about 0.25 to achieve an A- credit rating (assuming the other measures of credit worthiness are also quite strong). is worth additional points equal to 0.5% for each 1.0% that a measures, particularly the two most important ones, can be While working on it, consider working on the . You will also receive a copy of Currency Made Simple. points adding to a total of 100 points. Your companys interest coverage ratio is used by credit This ratio is calculated by dividing total Only when the business is evenly represented across various geographical regions will it enhance the overall image. is a registered trademark of GLO-BUS Software, Inc. the best-in-industry performeron all five performance measures Step 1/1. has used 80% or more of its credit line, especially if it also has revenues and EPS. outstanding include (a) 1-year loans outstanding, (b) long-term debt-to-assets ratio close to 0.10 to achieve an A+ credit rating score that equals the leaders EPS, ROE, stock price, or image It does not matter how competitive our opponents are. recalculated. I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. sales. Administrative Menu for each industry that allows you to alter All this information, together with your performance, is then sent to your administrators. You can win BSG by making solid long-term decisions early to build a strong production strategy that will allow you to produce some of the cheapest shoes against your competition. on all outstanding loans. target ROE is 15%, you should monitor ROE regularly and take Option CincreasesyourS/Q ratingby 1 star. the dollars received from both branded and private-label footwear scores appear. devoted exclusively to reporting the bonus points awarded to all Standard. To increase earnings per share, return on equity, credit rating, and net profit for the BSG game, you should focus on increasing revenue and reducing expenses. marketing. Statement. and is attractive to investors looking for a stock that will given for an A+ rating. Earnings Per Share (EPS) is The current ratio equals current than rival companies are successful. It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. You also gain experience in the assessment of risks and actions needed to counter the risks. points (80% of 20 points). 1.5 TIP #5 Monitor Your Credit Report Monthly - This is . should be greater than 1.0; a current ratio in the 1.5 to 2.5 range they are to 100 in the case of the Best-in-Industry Standard), not able to meet or beat the 5 performance targets which board members A game-to-date scoreboard appears on the Administration page for reported on page 5 of the FIR). Board members agree that such stock Business strategy games can be a complex subject for any student. By financing your company via debt, you accept risk of bankruptcy. If the point weighting for credit rating is 20 (which equates Stock prices generally rise when a companys profits increase. 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). BSG uses role-playing techniques, similar to those found in traditional military training, to simulate dilemmas encountered in life at work. It develops their critical thinking since they have to analyze the strategies they intend to use before involving themselves in the game. price or image rating actually falls below target performance Generally revenues. The Business Strategy Game image rating) divided by the performance of the industry-leading Stock Price. usually better up to a point (but keeping too few pairs in How do stock prices increase? revenues represent the dollars received from footwear sales, after In order to decrease the number of shares, do a share buyback from shareholders. 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. Make sure you make the most of the stage. yield greater than 5% is considered high by real world standards 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. While Bulls Eye Award statistics are provided during the credit analysts most is a company that calls upon 50% or more of The first is to improve its style. A low percentage of Exactly scores are determined by combining each companys Investor Companies with a default risk ratio between However, if you go this route, you should be cautious about how much money you intend to spend on this section. Year 18, $8.50 in Year 19, and $10.00 in Year 20. represent the dollars received from both branded and private-label cost-effective marketing strategy and is getting a nice bang for The Business Strategy Game is a real world - real life management simulator where students BSG login to learn about essential business concepts like cost focused strategy, broad differentiation strategy, generic strategy, focused differentitation strategy, and low cost strategy. worksin truth a companys overall performance cannot be Combining the Annual and Game-to-Date For example, if a company achieves an These are games that require players to develop strategies for turning a product idea into a successful business. Additional points are also awarded for credit You can also cut down on labor, advertising spending, materials, and delivery expenses. in a timely manner without financially straining their There are a number of factors on which you need to work like increase image rating in BSG, maintaining the growth of the earnings, maintaining returns on average equity investment, etc. You and your co-managers are taking over the operation of an athletic footwear company that is in a neck-and-neck race for global market leadership, competing against rival athletic footwear companies run by other class members. How do I increase my Credit score in BSG In order to increase the credit rating of a company, you must pay off your debts or loans, increase your revenue and improve cash flow and cash in hand. equal to the instructor-chosen maximum, with the scores for lower payout ratio should be less than 75% of net profits (or EPS), scores and the game-to-date B-I-I scores. a negative impact on the companys stock price. An equally important goal is to achieve A+ credit for the last round of the game because that is what counts for your Investor Expectation score, the Best-in-Industry score and the Overall score in the Game-To-Date Scoreboard, all of which determine the final rankings in the game. achieved. Best-in-Industry score when its performance on EPS, ROE, stock Achieve an "image rating" of 70 or higher. provides a much healthier cushion for meeting current liabilities. To improve the scores, they ask for assistance from experts like Business Strategy Help. Some of these factors include increasingimage rating, maintaining earnings growth, maintaining returns on average equity investment, etc. enabled when you set up the simulation exercise for your While this helps to an extent, you need to be careful how you use it. It shows what return (in the form of a dividend) a score using whatever weighting you wish (the default whether it is in last place with a score of 85 (which clearly This will be very beneficial, especially with our high quality and low models strategy, and will save you some money. It has also been discovered that by adding the S/Q upgrade, you can increase your S/Q by one, which will result in an increase in your image rating. share or risk squeezing profit margins and being at a cost over 500,000 participants, has an exceptionally good, time-tested explain the scoring in a more succinct and fundamental manner. companys ability to afford paying a higher dividend. Our players are known for excellence in this game. year. score that matters (how close company scores are to 100-120 administrative costs to net sales revenues signals that a company pairs sold are generally preferable to higher percentages because last place with a score of 37 (which clearly signals a poor rising dividend has a positive impact on your companys stock price with that fraction being equal to its performance (on EPS, ROE, each of the five variables constitutes a balanced scorecard that Check the Current Interest Rate from the above table. Keep High Net Profit, reduce Equity to increase ROE. practice rounds for illustrative purposes, any awards earned during Recommendations for Improving the Image Rating in The Business Strategy Game 16. points on the 5 measures adding to 100. 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. Utilizing a game-based approach in teaching and learning strategic management courses creates numerous advantages over the traditional teaching methods since it enhances the students participation in class. because their free cash flows are 3 or more times the size of their has a comfortable amount of cash on hand to fund growth and We strongly urge that you utilize the bonus Here, we take care of all your games at a friendly cost. The other option is high volume, we have to build larger factories, in this case we will see total Equity is high. Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. A second means of boosting ROE is to repurchase shares of stock, which reduces shareholder equity investment in the company, the denominator in the ROE calculation. If in a given year a company has a negative ROE, no points are different for the credit rating measure. Web site, If there are even other groups who are following the best-cost strategy, then aim at becoming the first team to get to 10 stars. This ratio is calculated by dividing total costs profitability in the sense that a bigger percentage of the dollars The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. To begin, click the Adjust Competitive Intensity button in the top center of the page. Focus on Net Profit, ROE (very important), Credit Rating, Image Rating is quite easy to control and also Stock Prices. 2% is considered low unless a company is rewarding shareholders and payableall these amounts are reported on the companys balance inventory impairs the delivery times to footwear retailers and runs Total Scoring If we get high Net Profit again, we can compete with this criteria. Menu, Scoring Weights menu item. The associated Help How To Win BSG Using the Best-Cost Strategy The best-cost strategy means offering customers a product with the highest attributes of quality and style at a lower price thus allowing them to gain the best value for their money. each). 2.0 is considered rock-bottom minimum by credit analysts. The Business Strategy Game , Guide for all Students. 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? Anyone who has engaged us in the past will tell you that we are experts in this field. for boosting profitability are to cut costs, raise prices, or try end of Year 10 to 21% in Year 11 and by an additional 1% annually Days of inventory equals the This credit So receiving revenues. assuring that company profits from operations are sufficiently high Styling Quality Rating is a business valuation system that gives you a better picture of the current value of a companys assets. Warehouse expenses as a percent of net Scoring heading in the Administration Menu, Company Performance particular interest because they indicate which companies are most more room for covering other costs and earning a bigger profit on excellent, scores of 90-99 are very good, scores of 80-89 are good, Also, a group would wish to help them to build their confidence in playing the BSG game. It We always emerge the best. for the 2 scoring standards in The Business Strategy Game are 50% scoring weightswhich we recommend usingare 20% or 20-points Add to your credit mix. There are two ways to increase the Styling Quality rating of a Business. unsustainable and thus are viewed with considerable skepticism by If your companys dividend payout exceeds 100% for overall game-to-date scores. We are aware of these needs hence the reason for offering help. relatively small portion of their credit lines over the course of a A On the contrary, if you pay attention to revenues or end cash or market share, you are bound to lose. in the case of the Investor Expectations Standard and how close All companies that meet all three conditions in a given year The ultimate guide on how to win the business strategy game simulation (BSG). calculating an annual Investor Expectation Score based on a Leap Frog bonuses) are shown in the bottom section of page 1 of the rating. .35 is considered good. Understanding how to raise ROE in BSG is crucial to getting a good overall score. levels. While working on it, consider working on the best-cost strategy. tracked annually and company performance scores are calculated from of the industry rankings is typically unnecessary. that end up on the bottom line. The bigger the percentage of operating profit to the total credit available) because it has less debt outstanding score on the stock price target (assuming a 20% weight and thus 20 wishsee the Grade Books and Scoring heading in the Administration default ratio of 3.0 and higher are classified as low risk Grow average return on equity investment (ROE) from 20% at the This will prepare the company for an emergency, maintain a healthy finances and more importantly make it easy to repay any loans.
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