Now you begin to understand why I earlier said, that if you use overtime for branded production, you should expand your plant capacity for the next year. Download the iOS What should I do for year 12 and 13? These are the three most crucial decisions to make in the game. Besides, you can lower the cost per pair of shoes. The issues depend on cost of production. If this is still not enough, add the missing shoes to the other plants Branded Pairs to be Manufactured in Year XX number. If you have any questions, feel free to come back and ask them. Strategic warehousing impacts all warehouse operations, from inventory management to order fulfillment. . And should I do stock repurchase this year? However, some values, such as the Wholesale Price have decreased instead of increased. like should I just follow your tips through all because I kind of get on a bad start. However, after 3-4 years, your competitors will settle and changes will be more predictable. On the other hand, other players gamble for the private market with a high price, a large volume to lead. Same with all the other values, like I described in my blog post And then use all your remaining shoes for the private label market. With respect to our employees well-being, our G-Brand Company intends is to continue its practices of investing in employee-development and utilize a compensation model that encourages our employees to work hard, while simultaneously striving to be more productive and efficient. You are now done with your private-label decisions and all significant decisions that affect your net profits. One of the most useful skills we learnt from BSG in Financial Analysis, we have had the chance to read Income Statement and Financial Reports every years, for last 8 years, many time, which we understand more about cost and revenues, details of cost, details of revenue, we notice the importance of loans, interest rate, credit ratings. You will soon know why. Here, you have to tie materials, styles, or features and TQM until you attain the desired S/Q. I followed your recommendations, and I have a good rank. I would then adjust the Percentage of Superior Materials to whatever is needed to match my S/Q Rating with the value plugged in on the Sales Forecast page. I usually have the highest net profit when setting Enhanced Styling / Features to $50k, TQM / Six Sigma Quality Program at around $0.70, and Best Practices Training at $5,000. Keep control of Private Label market with upgraded factories that can produce most of quality at lower cost than any competitors. After you have calculated the manufacturing volume for each region, add up your N.A. You might think that using green footwear materials or using recycled boxing / packaging is a good decision, especially with the currently ongoing environmental debates. Again, this can be trial and error for a couple of decisions but you should get a feeling for what multiplier is best for your company. And I would not build another plant, rather increase capacity in the plants that you already built. We have never looked in very details of business management like sales margins or even a few percent of market shares. By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. Profit is crucial in the BSG game. In 2020 digital game sales outpaced physical sales for the first time. We need to keep track of cost in more details in next years. Hi Lee, So if one of your markets is not satisfied or prices are high, I would built capacity to attack this market and sell a lot of shoes for a cheap price, to guarantee you the lowest price so that you sell all your offered shoes. Thanks for your strategy! I hope that helps and good luck! Same for your superior material. With this, they raised the global capacity to 30,000 when the potential global demand (including private label) is only 24,218. Do not worry about your market share percentage or any other value than your net profit. On initial input of the change there was a big boost to my numbers, but when I left the page the game suddenly dropped my numbers below my original ones. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. Here, you will plug in your previously calculated regional total sales volume for each region. Okay! Looking at Company Operating Report, Distribution and Warehouse Reports, we see Cost of Branded Pairs Sold in Year 18 is $25 and Warehouse Operating Expenses is 3.71. Moreover, the key is a rational debate with a compromise for everyone to understand why the decision is taken and commit to make it a success. Q&A. The key factors need to be considers is Cost of Branded Pairs Sold, e.g. Then, you want to plug in your L.A. total sales volume estimate into theproductionslot for North America as well and add up your reject rates. So I have plant in NA, EA and AP, but right now I am only using 70% of the capacity because the demand is quite small for me. The company that offers the lowest price will sell all its supply first, followed by the company with the second lowest price offered, and so on. Does it affect any other factors? unfortunately I have no experience with adjusting to my strategy in the late-game. However, I would recommend not taking out any loan if possible. You want to setEthics Training / Enforcement to All Employees and Workforce Diversity Program to Yes. So the question is: would you recommend for my team to still increase capacity despite this fact? Also, make decisions about the number of models, then the price. This way, it becomes a living guide for decision-making for the entire company. We also learn a lot from the BSG itself and from our class mates, other teams, even we compete in the games, but in order to run effectively, we have to look at our competitors to learn their strategies and we see what they did well or not very well, we learn by doing this. From this highest whole dollar amount, I plug in every possible value around it and find the price that yields the highest net profit. This way, you end up buying the share at a lower price. Now, I am worried about the future rounds. As always, do not forget to save your decisions after you are done. (Which affects all 5 factors: EPS, ROE, Image Rating, Credit Rating and Stock Prices). And profit is what the game is all about. No matter the location, our goal is to satisfy our customers foot fashion desires and provide them with the best style and quality in footwear. If you tweak those numbers, your demand will adjust accordingly. Texas A&M University, Corpus Christi. Best-Strategy Invitational High-performing companies worldwide face off in a 2-week competition hosted 3 times a year by the BSG author team. You are now all set to dominate your industry and win the BSG! After you have found the right price, click the Save Decisions button. I mainly looked at what they were doing in the private label sector. This is very helpful. And you can basically never have enough capacity for private label. Let me walk you through the various decision pages and explain you how to optimize each entry. Over the next five years, G-Brand will pursue strategies that will help it improve its financial bottom line, especially ROE because the company has quite high Equity. In the Private-Label Production field, use all your remaining available capacity, even overtime. Toward that end, it put in place responsible environmental policy that ensures more decisions for community. If you demand for branded production is met, put everything else into private label to make sure you dont have unused capacity. Theres everything explained in detail. I would still go for the 50 models and make sure to buy or build capacity so you have enough for your private label. Hi You have to base it off the HIGHEST wholesale price, just to be safe Like that, all 4 regions are guaranteed to be 40% above wholesale price. It is usually best to repurchase stock at the beginning, when your stock prices are relatively low. The end result counts. Set Models Offered to 50 and Free Shipping to No. No worries, it will be easier after the first few years. I would always encourage you to bid on available celebrities. Two of the most important things to do here are analyzing your competition and optimizing your values. I never really watched my EPS or credit rating (ofc credit rating should be a B at least). So far I have only build a 1000 EA plant and additional 500 NA plant. I cant seem to find it. The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. While +2% might now always be spot on, I have made the best experience with it so far. We need to adjust the number of productions to optimal these decisions. How to solves this situation ,have you given us any suggestion. We have quite large Total Shareholder Equity of 446,571. Let us take a look at the Plant Capacity / Upgrades page first. This means, you have a channel conflict, meaning that your Retail Outlets number will decrease in the next year and less retailers are willing to sell your shoes. You can decide to sell or purchase available capacity, upgrade your plants, build new plants in other regions, or add capacity to already existing plants. Keep the price expand from Average to higher, but Maintain Highest quality of our shoe will continue to exceed the quality of shoes within offered by our competitors and which are with the same price-range. You need this capacity for the private-label market. This can get confusing at the beginning so here is a table to show you the process. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. From experience Id say tho that it is already too late to adjust to my strategy presented. If you have your AP price set to e.g. I put $1.00 pay dividends, which turned out 20,000k in total. and A-P plant, focus on your Total Branded Production Needed to Achieve Year XX Sales Forecast section on the lower half of the page. . Team members run the simulation company efficiently while competing successfully. Yeah I had that in the first weeks as well. Hello. $50.66 but $50.67 gives you higher profits, go for the higher prices. I am having trouble getting my company back into the positive ending cash after taking out a loan. Similar to the branded production, try out the different values to see which combination will give you the lowest Average Production Cost value for your plant and hence, the highest profits. Five ways that warehouse strategy can benefit your business include: Inventory Management Accuracy Price Stabilizing Tools Technology for Packing & Processing Locations that Meet Your Needs Outsourcing to Fulfillment Services However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. But keep in mind the risk of jumping up or going down with the high bid price. Then we can analyze business results to identify new marketing, production strategy. In addition, your Retail Outlets values should always be the highest number possible that you are allowed to enter. so idk what i may have done LOL, Hello, may I ask my is not that great at the moment and we are onto year 13 which is like 2nd year maybe of the game and i try my best to like follow your tips though not as fully cause I still dont understand much especially the calculation one a bit confusing cause I am bad at that, so far I have 7 s/q rating though I am unsure should I do lower models or not cause I am afraid it might not be enough for profit and all because most I see at average of rating and high models , I was wondering what can I do to make it better? This means, without increasing your superior material or enhanced styling / features, you gain 1 star. Or you have read it but still do not know what strategy to pursue or what is going on? How can the company defend the position if you are leading? we are having a horrible time of having left over inventory .. we are in year 13 and our numbers are ok we were 1st place last on year 11 and second place on year 12 but i having a feeling we have been focusing so much on our current numbers we arent going to end well any advise on what we should do on inventory and other sections of the game. Several colleges and universities use the Business Strategy Game in teaching and learning strategic management at their schools of Business Management. Your estimate of the industry average for the internet retail price does not change with your adjusted competitive that you set to +2% before. Hi Yvonne. Moreover, you can benefit from Business strategy game help where professional BSG players have many years of experience. If not, I dont see the need to purchase equipment in order to make more shoes until the demand begins to encroach upon my shoe making capacity. We will upgrade new factory in LA to produce top high quality shoes with C options an B for large quantity. I personally find it easier to pursue and had more success with it in the past. (Im adjusting for Y13 now). as I described in my post, Id go with the low models, maximum profit strategy as it is easy to follow and you determine the market. If you are looking for your teams strategy to be a success, then creation is the first step. You need the capacity for the private label market. For only $35, get instant access to the Business Strategy Game Guide. I suggest to go for maximum profits. While they might boost your image rating, they will decrease your profit. I just have a quick question. Hence, find the combination that gives you the highest profit. However, it is not necessary and Option C is definitely more effective. We get out of Year 17 with bad results in ROE because we expand too fast in that year. You should slightly increase your dividends year by year. Do this for all four regions. G-Brand will invest more in the Use of "Green" Footwear Materials, Energy Efficiency Initiatives and Charitable Contributions to build a bigger Image of societal Brands. Beat the Business Strategy Game. You can know your strategy in several ways. NEVER do this. G-Brand will continue to make all efforts to use good materials which environment friendly. Decades of experience in warehousing and distribution can be an incredible advantage. In my opinion, I believe the other teams are thinking on exploit the private label. This is your new, more precise regional wholesale sales volume. . Currently, were selling 150 models. After clicking on the green Go to Decisions/Reports-button in the corporate lobby, you can see your profits in the lower left-hand corner. If you have more cash available, go ahead and spend it for either one of the other options. Yes, despite your competitors building capacity as well, I recommend increasing capacity in a reasonable amount. Im glad I was able to help and good luck to you! . and L.A. in North America to reduce costs because ofNAFTA. Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. More than two groups following the same strategy suffer the same difficulties since they create direct competition among their target market. I was wondering how much more additional capacity that I should purchase after Ive bought the first 1000 for NA. We give you. Over Year from 15 to 18, ROE changes up and down 22.5, 18.2 then 20.0 then in year 17 down to 16.8 then up to 24.3 in Year 18. Largest network of retailers around the world. Increase from 3 to 6 activities to support society and environment. is it because I need to add capacity? I would like to ask you about the Dividends. Which wholesale are you referring to? If you really need money, I would rather advise you to issue some of your stock. G-Brand continue to be a good steward of the environment and social responsibility. Optimizing your values is the essence of the game, even though it might be very time-consuming. Plant Capacity / Upgrades. After you have done this for both the N.A. The positive impact that such a strategy has on the company's image rating, provided the company spends a meaningful amount on socially responsible activities and such spending is sustained over a multi-year period The BSG tends to underestimate those values by about 20% and hence, you need to correct them for a more precise estimate. Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. Sometimes thats cutting expenses, sometimes thats increasing expenses (even though it might not make sense at first). However, it will also decrease your ending cash. With the Business Strategy Game, teams of students run an athletic footwear company in head-to-head competition against companies run by other class members.Company co-managers must make decisions relating to plant operations, distribution and warehouse operations, work force compensation, online sales at the company's web site, sales and marketing, and finance. What I like about my strategy is that you do not necessarily have to keep an eye on your competitors. Hi! Hence, try to keep your internet price at least 40% higher than your wholesale price. In the later years, when the cost in NA is high, we have built a new factory in LA, we can ship from LA to NA (eg. The Business Strategy Game (BSG) comes in handy as a realistic representation of the actual practices in a virtual setup. 3/29/2021 BSG Decisions & Reports Projected Year 12 Performance Scoring Measures EPS (earnings per . While competing with the other teams in BSG, you need to make informed decisions that can create a difference and take your team ahead of all. The world's most streamed artist Bad Bunny, a Puerto Rican rapper, alone claims 8.3 billion streams. View full document. That combined will give you a good boost for the last year.
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