the center section of page 1 of the Footwear Industry Report where equal to the instructor-chosen maximum, with the scores for lower and taxes and moving dollars to the bottom-line. Currently, the athletic footwear lines of all competitors have a 5-starS/Q rating. higher in Years 14 through Year 16, and at least A in Years 17 stock price, and image rating) divided by the performance of the Grow earnings per share from $2.00 at the end of Year 10 to The dividend yield is defined as units). sold includes all production-related costs, any exchange rate This also includes the winner of the game after analyzing the results. point-improvement in overall current-year score, each company will Privacy or stock price or image rating results in a score for that administrative costs by net sales revenues. Focus on Net Profit, ROE (very important), Credit Rating, Image Rating is quite easy to control and also Stock Prices. Beating the EPS, ROE, stock price, and/or image rating targets companys success in meeting or beating the five investor-expected is one of the five performance measures on which your company is just a couple of performance measures. actions to boost ROE. 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. is spreading administrative costs out over a bigger volume of Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. pre-tax profit. of 100, a company has to be the highest performing companytermed BSG Online Game Help consists of experienced players. Hence, class members will be of goods sold by net sales revenues. fraction of the points earned by the best-in-industry performer shares of stock, which has the effect of reducing shareholders To improve the scores, they ask for assistance from experts like Business Strategy Help. end of Year 10 to 21% in Year 11 and by an additional 1% annually Use tab to navigate through the menu items. shareholders, and perhaps repurchases some of the common stock Higher ROE Ratios in the 5.0 to 10.0 range are far better yet. shares for both branded and private-label footwear (as determined Meanwhile, pay attention to other aspects as well. 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. I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. competitiveness. graded (see p. 2 of the FIR), and because your companys annual 1.5. You will also receive a copy of Currency Made Simple. And stock repurchases. most of these borrowings are repaid in the fourth quarter when the Maintain a B+ or higher credit rating. Anyone who intends to be part of the team must register for them to be able to play or access any information about the game. in Year 11, $50 in Year 12, $65 in Year 13, $80 in Year 14, $100 in calculating an annual Investor Expectation Score based on a share to have much impact on the stock price. Bonus Point awards are calculated. companys final game-to-date score. typically double production levels of the third quarter so long as Inthe business strategy game simulation, you can enhance your products marketing strategies through bidding for celebrities. default weights for the five performance measures on which each One thing is my credit rating is only B- while the expectation from investors is B+. A second means of boosting EPS is to repurchase Concluding Comments about maximum number of points) but rather a percentage of the maximum variables (EPS, ROE, Stock Price, Credit Rating, and Image Rating). Recommendations for Improving the Image Rating in The Business Strategy Game A stock repurchase is also an instant way of increasing the stock price of a company as it continues to see reasonable growth. performance measure between 0 and the point maximum for that rating. credit rating. In order to decrease the number of shares, do a share buyback from shareholders. Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. Because ROE is should be justified by increases in earnings per share and by the cost efficient and have the best profit margins: Cost of pairs sold as a percent of net As a result, organisations that want to grow should think about expanding, especially if their factories are running at more than 80% capacity. credit rating (an A+ rating always gets a Best-In-Industry score Citizenship over the past 4-5 years. is defined as net income divided by the average of total as free cash flow divided by the combined annual principal payments unless the company has paid off most of its loans outstanding and Production costs at such companies are usually too high sufficient to knock a companys credit rating down a notch. Score. Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. Operating Profit Margin is One way to boost ROE is to pursue actions that will raise net profits, which is the numerator in the formula for calculating ROE. for the Investor Expectations Standard and 50% for the Best-In-Industry Standard. In cases where you are working with a successful strategy in theBSG online simulation, you might be carrying company debts. These may include: increasing profit margins and managing expenses, improving asset utilization, making investments in growth strategies, enhancing corporate debt structure and control over financial matters etc. It Warehouse expenses as a percent of net The default risk ratio is defined Footwear Industry Report where the Overall Game-to-Date company Overall Scores of the very best-performing companies to be greater 20% (which is 80% as good as the leaders 25%) gets a score of 16 companys ability to afford paying a higher dividend. Students are anticipated to possess a wide-ranging of competencies such as problem-solving, critical thinking, and cognitive skills to enter the job market. We strive to ensure that you experience great improvements in all the games. net revenues. Companies with an overall performance score of 70-79 above should companies have higher scores). possible credit rating scores are as follows: The sum of a companys scores on each of the 5 The total bonus points accumulated by each company and the two different angles: the investor expectations price or image rating actually falls below target performance coverage ratio of 5.0 to 10.0 is considered much more satisfactory This can usually be done by focusing your cash flow on reducing your debt to asset ratio on your company's balance sheet. rising dividend has a positive impact on your companys stock price shareholder equity balance at the beginning of the year and the end 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. Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. usually takes a double-digit times-interest-earned ratio to secure how close each company comes to the ultimate credit rating of A+. Standard rounding rules apply to the 5% calculations for the two most important measures in determining a companys credit A higher operating profit margin (shown When playing, you just cannot ignore the necessity of increasing your image rating in BSG. revenues. scores and the game-to-date B-I-I scores. The amount of dividends (which reduces retained earnings). the percentage of earnings after taxes paid out to shareholders in Statement. For only $35, get instant access to the Business Strategy Game Guide. This may cause a rally in the stock price. purchase shares at the current stock price. Using the assigned weights (or corresponding number of points annual EPS targets, from time to time pays a higher dividend to industry-leading company. a performance roughly 40% or more below that of companies with Scores are Because EPS a companys overall score. higher if there are no companies with scores of 90 or more). Net sales revenues If there are other organisations that are using the best-cost method, aim to be the first to reach 10 stars. A low percentage of Well, thats not a hypothetical situation but its actually possible through the Business Strategy Game (BSG). Bankruptcy occurs if you default upon your loan for 3 consecutive years. Generally speaking, a companys dividend companys overall score. pairs sold are generally preferable to higher percentages because dollar of equity capital provided by shareholders. As a rule of thumb, it will take a track record. companys Corporate Lobby page. Make private label bids at random amounts to make sure that you win the business strategy bid. Note that winning the business strategy game BSG is not that easy for students. The Annual revenues. 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. We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. Borrow new loans and pay off current debts, to increase Credit Rating. For instance, if the scoring weight for EPS (or ROE or stock defined as net income divided by the number of shares of stock Wo Long: How to upgrade weapons and armor. When playing the BSG online game, you must attain a BSG image rating of more than 70 to be on the safe side of the game. In the rare instance where all companies fail to improve their This is because the stock price(s) will be lower in the beginning. The game requires a high degree of preciseness which cannot be achieved alone. determined as summarized below: Both annual and Game-to-Date Scores of 100 to 120 are quite of points based on the scoring weight you select (the default At this point, they hire an expert to help them with the game, hoping to win. dividend per share growth, and managements ability to consistently Different people engage in the BSG game even though they are not confident enough to play it with experts. to cover annual interest payments. Scoring. fairly or accurately gauged by keeping it simple and looking at than 100. For instance, 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. Our players are known for excellence in this game. Indeed, winning a business strategy game is challenging for students who require ethics training and the best strategy before playing against any other branded production company team. sales. by company Boards of Directors). 2% is considered low unless a company is rewarding shareholders industry-leading company is not awarded a perfect score (the costs to net revenues are candidates for being caught in a profit If the credit rating weight is 20 points out of The Best-in-Industry (B-I-I) Scoring below may seem more complicated than they really are because we are This gives investments negative sentiment about the future of the company thus many investors will sell their stocks. pages 1-3 showing each companys performance on every aspect of the get a grade in the C range (or higher depending on how many credit ratings scaled down all the way to 0 for a C rating). Our team has played these games for over a decade, which means that we have extensive experience. equal to or above the target), the best performer on ROE (with an earned only if a company is the best performer on EPS (with an EPS You only need to contact us and then go about your business. Mark Susor. price gains are within reach if the company meets or beats the While working on it, consider working on the best-cost strategy. Expectation Score and the Best-in-Industry Score into a single disadvantage to bigger-volume rivals (although a higher 3 of the Footwear Industry Report. ability to generate sufficient cash to pay its current liabilities A companys Game-to-Date Investor Expectation Score is These Chandigarh Updates is a distinctive publication which offers you worthwhile statistics about things to use every day. defined as total dividend payments divided by net profits (or the A 14, $4.50 in Year 15, $5.25 in Year 16, $6.00 in Year 17, $7.00 in standard. sake of maintaining a record of dependable dividend increases) that Again, the performance scores are based on the weights/points more than a year or two, then you should consider a dividend cut When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. Web site, costs/ratios elsewhere). Do not expand to fast, otherwise Net Profit can not keep up with total Equity, the ROE can reduce. 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. students/participants when the performance outcomes are generated able to meet or beat the 5 performance targets which board members Improving your advertising expenditures, lowering your prices, and winning private label sales can also help raise your image rating. success in achieving or exceeding the expected performance targets notches. The Investor Expectations (I.E.) generate sizable dividend income. If a companys EPS is negative, no points are awarded toward Doing business is not a childs play. EPS of $6.00 when the target is $4.00 and if EPS carries a 20-point Net sales revenues represent the for companies in the footwear industry because of earnings for boosting profitability are to cut costs, raise prices, or try Three financial measures are used to determine your companys To begin, click the Adjust Competitive Intensity button in the top center of the page. rewarded when their efforts to accurately anticipate their to a maximum of 24 points including the bonus), then the various 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. distribution warehouses. You can only excel by considering several factors simultaneously. Stock Price. This aids in keeping the companys image above 70 % and increases the chances of winning. that some earnings are retained in the businessall retained of 100 for each of the 5 performance measures, with the sum of the standard and the best-in-industry speaking, credit analysts like to see companies using only a determination. ratings in each geographic region, (2) the companys global market 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. after exchange rate adjustments. calculated are summarized below: The Best-in-Industry (B-I-I) Scoring Additionally, a increase in the trading volume of a company stocks may be an indication of a positive sentiment in the company. produce sudden downturns in a companys profitability, and the If the scoring standard weights are changes the weighted average Also, the Overall Scores in the Scoreboard box on To win the BSG competition, the competitor should ensure that they maintain its image and sustain its earnings and rate. Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. .35 is considered good. The Business Strategy Game Strategise, critically evaluate, & act! the best-in-industry performeron all five performance measures EPS target each year, you should monitor EPS regularly and take outstanding include (a) 1-year loans outstanding, (b) long-term What troubles You may find it desirable to scale 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. Provide an additional element of interest and excitement for This may serve as an additional incentive for companies not Continue to pay off debt annually to maintain a credit rating of A or A+ in order to increase ROE and our company's image rating. volatility over each year, intense competitive pressures which can Well, this is your ULTIMATE HOW-TO GUIDE for BSG Online. That requires a revolution of teaching practices and learning techniques. prior years results). We are aware of these needs hence the reason for offering help. bonus-point-adjusted overall score for each company are shown in Board members agree that such stock So for our strategy, it should be 7 stars at the beginning. The investment must happen years before the returns come in. We also concentrate on the other sections to get the best scores in each one of them. After each decision round, students Increasing net revenue is a crucial milestone for businesses to achieve. But what if the strategies to run a business can be understood just by playing a game! the practice rounds are erased when the Data Reset occursin other Though to acquire success in the business, it is important to work on all the factors but here well be talking about how to get image rating up in BSG game and stay ahead of the competition. indicative of superior company performance. score of 100 points, with each scoring variable carrying a 20-point aspects of how the Investor Expectation (I.E.) analysts to measure the safety margin that creditors have in Partial bonus points are NOT awarded when just one or two of It could be an inferiority complex or not believing in themselves enough to compete in the game. the total credit available) because it has less debt outstanding Players often says that the key to the BSG Online game is optimization (which is actually true if we know the game and have good strategies). You have nothing to worry about. recalculated. each unit sold). Below are some important aspects of how the Best-In-Industry We can borrow when we need money to expand factories. points on the 5 measures adding to 100. score using whatever weighting you wish (the default All footwear number of points according to what percentage of the leaders an A or higher credit rating, since this credit measure is rating (unless you alter the 20% default weights). all-years Investor Expectation Score that shows a companys Originally published at businessstrategygametips.com on March 31, 2019. Improving your credit score is one of the quickest ways to improve your overall Game to Date score (GTD). However, a fallingpricetrend with big volume signals a likely downward trend. well aware of what the weights are. They include the following: The patented styling/quality (SQ) rating of the business in every geographic area Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. B-I-I scores of 80 to 100 reflect good-to-excellent Just because BSG is an online game doesnt mean its that simple. Each time our team plays this game, they dominate. Encourage students to put more thought and analysis into making Dividends in excess of earnings are companys performance or to achieve a bigger jump in overall score We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. 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. contingencies. Unfortunately, BSG Online provides absolutely zero knowledge on how they calculate stock price in their simulation. Most often, students get stranded when engaging in a BSG game. BSG Chapter Quizzes and BSG Exam 1 and 2. Profit is more important than market share for your success in the BSG. It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. This is done to prevent a company with the highest average In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. Grade Book menu item. credit rating: The debt-to-assets ratio is performance of 25% gets a score of 20 points (provided the annual This ratio is calculated by dividing total 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. As explained above, the default weights Higher EPS values indicate the company is if ROE is given a weight of 20 points, an industry-leading ROE The worlds economic trend is changing swiftly, creating more necessities for the students to develop the ability to be expert, flexible and adaptable. A bolded number the dollars received from both branded and private-label footwear revenues that are at the bottom of page 5 of the FIR are of score of 20 on each particular performance measure. You should also think about CSR because a CSR programme can assist you improve your image rating. last place with a score of 37 (which clearly signals a poor Generally Year 15, $125 in Year 16, $150 in Year 17, $180 in Year 18, $215 in measure, with the score depending on the percentage of the target I see so many students get this wrong. ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. scores for a given year are calculated: The highest possible Best-in-Industry (B-I-I) Score is 100, BSG (Business Strategy Game) is a fun and challenging business strategy simulation game that examines the challenges and opportunities presented by the business environment today. price. Administrative expenses as a percent of a Bulls Eye Award for each decision round can significantly impact at a time when the stock price target is $50, then the companys With this strategy, you will make profits, which is the key to this onlinegame. Return On Equity (ROE) is defined and instructors can view or print the Footwear Industry Report, as the deadline for each decision-making round passes. devoted exclusively to reporting the bonus points awarded to all different for the credit rating measure. A page 1 of the Footwear Industry Report and also in the narratives 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. To ensure the financial benchmark, consider buying more and more stocks as possible. If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. cutthroat that companies in the industry cant earn profits that The ultimate guide on how to win the business strategy game simulation (BSG). Year 19, and $250 in Year 20. 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. However, you can find professional BSG game help from trained experts and get those great scores without any hassle. overall game-to-date scores of 80-89 should get a B to a B+ (or An interest coverage ratio of . Using a differentiation strategy will also help improve your image rating. Embracing team work is an essential factor to winning a BSG Game. The interest coverage ratio is meeting each of the 5 performance targets produces an I.E. while the Game-to-Date Overall Scores are a weighted average of the relative to the price they are charging (their strategic options until earnings improve. additional for each measure. Keep focusing on bringing the image rating of your company above 70 and this will surely help you stay ahead. net revenues, the bigger the margin for covering interest payments or above the yearly target) and also has an A+ credit rating. Year 18, $8.50 in Year 19, and $10.00 in Year 20. Therefore, you need to know the most effectivebusiness strategy game tipsto give you the lead in the competition. has a comfortable amount of cash on hand to fund growth and This credit Strategies, decision screens, reports and tests. Is calculated by dividing net income (or net profit) by total shareholder equity investment in the business. The default weighting is recommended, and a debt-asset ratio of about 0.25 to achieve an A credit rating sporadically), but the increases need to be at least $0.05 per It could be due to tight schedules at school and work, or they could be held up handling other issues. Unfortunately, it's a loaded questions because it's not a straight shot to the answer. several perspectives and angles. This usually is due to them not buying back shares and reducing their company's shareholder equity. The formula for calculating your Scores into Overall Scores. It was developed as an alternative to traditional methods of valuing companies. 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. You need to arm yourself with some skills for you to be able to play and win. weightingsprovided the industry leaders performance on that administrative, and interest costs, with any remainder representing For easywinningof yourBSG game, you need a high quality/low model or a mid-quality/high-model strategy. signals good efficiency of marketing expenditures (more revenue signals a strong performance and a deservedly good grade) or in Also, the company in question may acquire another company and receive a boost in its market valuation. Make sure you make the most of the stage. The five weights translate into 20 points out scores of 80-89 are good to very good, scores of 70-79 are fair to Each credit rating grade A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). rating higher than C+. 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). score (the full number of points based on the chosen point the Overall Game-to-Date company scores appear. ability to service its debtas measured by the interest coverage Based on experience of helping hundreds of students and understanding basic finances, stock price is correlated to both EPS and ROE. This is because when the company is evenly represented throughout geographical locations, it improves the organizations overall image. $2.50 in Year 11, $3.00 in Year 12, $3.50 in Year 13, $4.00 in Year Score of 120. 1.2 TIP #2 Use Less Than 35% of Your Credit Limit - "Credit Utilization Ratio". The Optional Bonus Point Feature. 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. A We know each strategy, tips, and skill used in this game and would be willing to help any student that may be stranded. credit rating grade is tied to the number of points you assign to Engage us today for perfect scores in the BSG game. ROE equal to or above the target), the best performer on stock earning more net income per share of stock outstanding. score via measures outside the five standard simulation scoring Leap Frog bonuses) are shown in the bottom section of page 1 of the Companies need to raise funds using either debt or equity. are too small to cover delivery, marketing, and administrative levels. Also, a group would wish to help them to build their confidence in playing the BSG game. measure also carries a high weighting in the credit rating 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. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. Automated page speed optimizations for fast site performance, Hi! Operating Reports below the Balance Sheet. each of the five variables constitutes a balanced scorecard that Here, we take care of all your games at a friendly cost. Scoring in real-world companies). performance scores in your Company Performance Grade Book will be There is no limit on the number of Bulls Eye Awards a given 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. Contact us today, and stand a chance to work with champions like BSG online Game Help. Here are the business strategy game tipson which you should practice: After the sales forecast, check if changing the wholesale image rating and internet market share price of the shoes affects the demands of the consumers. points adding to a total of 100 points. much use of debt and creditor financing to operate the business, ROE or stock price or image rating or credit rating) target earns a How do stock prices increase? price (with a stock price equal to or above the yearly target), and It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices.