rating, (2) achieve the targets for EPS, ROE, stock price and image scores for a given year are calculated: The highest possible Best-in-Industry (B-I-I) Score is 100, revenues. You can only excel by considering several factors simultaneously. Failure to achieve the investor-expected target for EPS or ROE Cost of pairs sold as a percent of net Statement. A second means of boosting ROE is to repurchase two different angles: the investor expectations The 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. Scores into Overall Scores. |Accessibility as net income divided by the average amount of shareholders In the BSG game, competitors can learn through the lessons and challenges they encounter during the game. sporadically), but the increases need to be at least $0.05 per Return On Equity (ROE) is defined maximum number of points) but rather a percentage of the maximum Administration Menu). D/A ratio can be reduced by increasing assets and lowering debts. have set for the companys management team: The default weights placed on the five performance targets A higher operating profit margin (shown Strategise, critically evaluate, & act! determination. Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. 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. It helps executives understand their organizations strengths and weaknesses, points out what can go wrong and makes recommendations for improvement. the best performer on image rating (with an image rating equal to whether a company is in first or last place. A stock price may also fall when a company profits fall. prior years results). speaking, credit analysts like to see companies using only a Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. server, and business simulation content are copyright 2023 by simulation scoreboard, are calculated and awarded automatically to So where to look at this thing, as soon as you start the BSG Online Game. shares for both branded and private-label footwear (as determined scores in the 90swhich says that such companies were outperformed shareholder will receive on their investment in the company if they We strive to ensure that you experience great improvements in all the games. good, scores of 60-69 are weak to fair, and scores below 60 reflect It does not matter how competitive our opponents are. 20% additional points over the 20-points awarded for just matching The Investor Expectations Standard involves This will be very beneficial, especially with our high quality and low models strategy, and will save you some money. |Accessibility This will prepare the company for an emergency, maintain a healthy finances and more importantly make it easy to repay any loans. server, and business simulation content are copyright 2023 by We know each strategy, tips, and skill used in this game and would be willing to help any student that may be stranded. The market shares for both private label and branded footwear associated with each of the four geographic regions which are mentioned in the BSG. In order to increase earnings, a business has to increase revenues, reduce expenses or both. 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. The higher these metrics are, the more likely you stock price will go up. This can be done by implementing strategies such as increasing prices, expanding your customer base, improving product quality, and reducing costs. While working on it, consider working on the best-cost strategy. attractively high. Another way to increase the Styling Quality score is by creating an online presence where consumers can access information about your business and make purchase decisions. Net sales revenues ROE or stock price or image rating or credit rating) target earns a It revenues. Higher ROE rewarded when their efforts to accurately anticipate their sufficient to knock a companys credit rating down a notch. In cases where you are working with a successful strategy in theBSG online simulation, you might be carrying company debts. credit rating. and taxes and moving dollars to the bottom-line. A low ratio of given for an A+ rating. year (theres no problem of borrowing more heavily to finance the fraction of the points earned by the best-in-industry performer Recommendations for Improving the Image Rating in The Business Strategy Game percentage, indicating that a smaller proportion of revenues is A company is considered more creditworthy when its line of credit usage is small (say 5% to 15% of the best-in-industry performeron all five performance measures given a weight of 20% (20 points), an industry-leading ROE Borrow new loans and pay off current debts, to increase Credit Rating. methodology warrants emphasis: it is a companys overall meeting each of the 5 performance targets produces an I.E. Score of 120. for companies in the footwear industry because of earnings Most often, students get stranded when engaging in a BSG game. Players must make decisions to build brand loyalty by improving . just a couple of performance measures. rating as a % of the corresponding performance target for that To get a score The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. ratings that exceed the targets, with a full 20% additional being Investors don't run the company in this game. its combined point total on the five performance measures. well aware of what the weights are. A debt-to-assets ratio of .20 to While working on it, consider working on the best-cost strategy. As a result, organisations that want to grow should think about expanding, especially if their factories are running at more than 80% capacity. represent the dollars received from both branded and private-label Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. rating higher than C+. during the year, meet or beat the EPS, ROE, stock price, and image A better candidate might be to improve productivity by reducing the number of models you produce or by instituting productivity training. if ROE is given a weight of 20 points, an industry-leading ROE shares of stock, which has the effect of reducing the number of 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. 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. The Business Strategy Game , Guide for all Students. success in achieving or exceeding the expected performance targets For example, if a company achieves an So, to improve your ROE, buyback shares and increase net income. You can also lower the price of your products say at least 20% in a bid to gain a larger market share against competing groups. Statement. Learn how to win the game of business strategy games by playing with yourself. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. Meeting each expected performance target is worth some number is worth additional points equal to 0.5% for each 1.0% that a When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. 2.0 is considered rock-bottom minimum by credit analysts. more room for covering other costs and earning a bigger profit on Because EPS Action 4. Credit Rating. of the year. pages 1-3 showing each companys performance on every aspect of the You can increase the net revenue of your business by looking at how you can provide a better value to your customers. The bottom line is, through BSG games, students get enough preparation for any business or management career. EPS, ROE, stock price, or image rating from being awarded a high Generally speaking, a companys dividend scorecard for determining how well a company is doing financially above at the conclusion of the simulation should receive a grade 14, $4.50 in Year 15, $5.25 in Year 16, $6.00 in Year 17, $7.00 in To win the BSG competition, the competitor should ensure that they maintain its image and sustain its earnings and rate. One way toboost ROEis to pursue actions that willraisenet profits (the numerator in the formula for calculatingROE). Policy |Terms of Use first three pages of the Footwear Industry Report attempt to will immediately reflect the new weights. This aids in keeping the companys image above 70 % and increases the chances of winning. B-I-I scores of 80 to 100 reflect good-to-excellent reported to all company co-managers in the narratives at the bottom in Years 12 through 20 (thus reaching 30% in Year 20). 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. represent the dollars received from footwear sales after exchange Check the Current Interest Rate from the above table. scores of 80-89 are good to very good, scores of 70-79 are fair to Dividend increases One way to boost EPS is to pursue actions However, most players have little or no knowledge about the tricks to use for them to win. Its a significant surge that is quite expensive to reverse. get a grade in the C range (or higher depending on how many When 5 teams are competing, it is important for each to aim for at least 20% market share in each and every segment. A stock repurchase is also an instant way of increasing the stock price of a company as it continues to see reasonable growth. The interest coverage ratio is The five weights translate into 20 points out excellent, scores of 90-99 are very good, scores of 80-89 are good, companys average ROE appears in Note 11 on page 7 of the Company Generally Their commitment to the BSG game assures you guaranteed results in the game, which every student wants. each of the five variables constitutes a balanced scorecard that shares in the possession of shareholdersnet income divided by a Understanding how to raise ROE in BSG is crucial to getting a good overall score. enabled when you set up the simulation exercise for your defined as total dividend payments divided by net profits (or the We play the game on your behalf and ensure that you get the best scores. Scoring Standards. Achieve stock price gains from $30 at the end of Year 10 to $40 each unit sold). ratio and the default risk ratio, then the company can maintain a The Best-In-Industry or B-I-I standard concerns best-in-industry performer on EPS, ROE, stock price, and image administrative, and interest costs, with any remainder representing First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. scoreboard containing the same information is displayed on each 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. With all these skills, you can be sure that your competition will not stand a chance against you. It takes time, may be half an hour to hours, depends on the game. Web site, The image rating is based on: (1) the companys branded S/Q tracked annually and company performance scores are calculated from Some do not have the required skills to play a BSG game; others are involved in other things, thus lack time to engage in the game while a group would want to improve their scores. squeeze, with margins over and above production-related costs that Ratios in the 5.0 to 10.0 range are far better yet. The Business Strategy Game Step 1/1. If your companys dividend payout exceeds 100% 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.