If you have any questions, feel free to come back and ask them. However, do not price your shoes too high, so that your competitors have a lower price than you and will sell their shoes first. It has two components. Oh, how I wish I had known all this before I began playing. In the upper left box, you have available sources of additional cash. I cannot make any money there. Private label will help you dominate your competition. I am currently dominating my industry, and closing in on the top 100 list! In the Private-Label Production field, use all your remaining available capacity, even overtime. You can ignore the Internet Marketing and Wholesale Marketing pages because they will just reflect your internet and wholesale decisions that you already plugged in on the previous pages. A quick e-mail to your inbox. It only takes 10-15 minutes to put the numbers in the right spotsto make yourself an Industry leader. If I have cash available after doing all my decisions, I like to alternate between building additional capacity, purchasing plant upgrades, paying off loans and repurchasing stock in the following years. And you can basically never have enough capacity for private label. Wow, you are done! If you have any questions, suggestions, or comments feel free to comment and I will do my best to help you out. As already mentioned earlier, not every decision has to make sense. Okay. But if i decrease my model, I dont think I will be competitive enough to compete with him if he stays with his strategy, what do you think? Let us take a look at the Plant Capacity / Upgrades page first. You then want to select 0% as the Portion of the $XX mil. I never really watched my EPS or credit rating (ofc credit rating should be a B at least). Yes, I would only add capacity onto existing plants and not build new plants. You will need those numbers later on. 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. However, it will also decrease your ending cash. Dont be fooled by cheap imitations by common Industry Champions thatgloss over the obvious. I want to thank you for visiting my Business Strategy Game (BSG Online) website. It will be very helpful for us and will be very grateful Do you still have your upload reports of all your years ? By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. Learn tips & tricks, from a BSG Grand Master! This like a trial and error process and does not necessarily have to make sense. 4. Dont be fooled by Cheap imitation Business Strategy Game guides you might see online. The information is these . In the first few years, this will be pretty difficult to determine. Hi. And Im so thankful for your post!!!!!!!! No spam. PS: I left a comment, but I did not see it and thus retyped. if you have left over inventory, you should either work on your numbers as I described in my post or put the left-over shoes into private-label. Let us move on to the tricky part of this decision page. Deciding whether to buy an already functioning plant or build one from the ground up will depend on; whether the geographical region you want to set up has a plant you can buy as well as the time that is available for you to set up a new plant. 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. By employing the best cost strategy. Max OUTyour production with the high quality shoes at the lowest possible cost. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. The image rating of a company is the way it is viewed as a brand, The image rating of a company is usually based on. Be in it for the long haul Your estimate of the industry average for the internet retail price does not change with your adjusted competitive that you set to +2% before. I recommend increasing capacity and keep focusing on your profits. When you sign up for BSG Tips, youre not alone. Using a game strategy to push a business forward is a different approach, but it has been proven successful for many. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. If after putting the above measures in place and your image rating lowers, consider increasing the S/Q of the shoes and indulging more in corporate citizenship behaviour. Authorize your construction and you save your decisions. However, my net profit is still negative even after i have adjusted the private-label. Should I decrease the pay dividends and do stock repurchase in Y13? Learn how to set your prices right by orchestrating your branded market efforts with my intense market advertising and a retail support campaigns that will ensure company stability for years to come. Your Delivery Time should be set to 3 weeks. I shut them down fast and knocked them out of the running. Well some Industry Champions have such an easy time winning because the people theyre going up against simply didnt care about the BSG. Learn how your comment data is processed. Your competitors are most likely looking for this information too. If you add capacity it will show you the price. but out industry there is a direct competitor for me, he is also star 8 and 50 models, and he prices so low for wholesale, only 47! I was a poor undergraduate college student, too, at one point, and I understand your unwillingness to pay for an additional book. Hi, Im glad to hear that it helped! Hello, thanks for the great strategy, it is working (1st place) ! My undergraduate business strategy teacher made us play the BSG-Online simulation for 40% of our grade. At the lower half of the page, you also determine how many branded pairs you want to manufacture in each region you have a plant. Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, and Best Practices Training all affect the S/Q Rating. thank you:). I put $1.00 pay dividends, which turned out 20,000k in total. Do this for all the four regions. If you reach the last decision round, comment down below and I will give you some hints on how to boost your net profits for the last year and gain some extra points. It typically keeps increasing until a certain price point and then starts to drop. This can be a very tricky decision and you need to analyze your competitors prices. The Models Offered estimate seems pretty fair and you do not have to worry about it. For only $35, get instant access to the Business Strategy Game Guide. If youre like most students though, you just want to win the Business Strategy Game, be crowned Industry Champion, get the grade, and move on with your life. We offer free, unlimited fast support to answer any questions. The market share, which can be increased by: increased advertising, extensive market research, checking out the competition, and most importantly understanding the needs of your customers. Thank you in advance! . BSGTips.com is a proven guide (written by a Business Strategy Game Grand Champion) on how to win, not just how to play. But strategy wise I always sticked to my maximum net profit strategy which you can do no matter your competitors strategy. This is very helpful. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. I am in a box where every move I make to lower cost or shift production lowers my EPS or credit rating. my advice would be to read my guide and follow the steps. When I played the game, I barely looked at what my competitors were doing. 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. On this page, you will set your values for your branded production. You dont have to care about your retail outlets anymore so adjust the price so maximize your net profit, without the 40% rule. As already mentioned, it is important that you ship all your shoes for the North American warehouses and the Latin American warehouses from the North American plant. I daily (thank you, Hootsuite, for making it so easy!) Thank you so much for your reply! Global Top Performers Unused capacity kills your numbers and profits! Order today and you will beprivyto every secret, technique, tip, support, and help I can provide you with thatwill surely secure your SUCCESS and VICTORYas a Business Strategy Game Player. With my help, tips, techniques, and strategies, your competition doesnt stand a chance! You will soon know why. The BSG Game went through a major revision in the beginning of 2019. While being in every market is a goal of a successful multinational company. Taking up stock offering is a cheaper alternative to loans in case of an expansion, but caution should be practised as this move might lead to a drop in the cost of the EPS. To boost earnings per share (E.P.S) you can use the cash at hand to retire and repurchase any outstanding shares. We had a bunch of copycats in practice year 12, but nobody has figured our profit-maximizing, low-cost strategy, and now theyre pursuing higher models in the real game. Again, trying out different combinations and optimizing net profits is key for these values. Written by an Undefeated Business Strategy Game Grand Champion. My stupidness did not know that I should not pay dividends when I am in 5-year-loan, so I did not adjust any part in Finance Cash Flow except for borrowing. As I keep reading online about different strategies to win, there are some postings that are aligned with the strategy of low quantity of models offered at a high quality and keep increasing capacity. update them with tips and food for thought from the paid guide. You want to setEthics Training / Enforcement to All Employees and Workforce Diversity Program to Yes. The demand depends on your retails, price and quality. I now have another question about capacity. This will lead to greater visibility for your company and thus a boost in the image rating. However, keep in mind that your regional endorsement value should not be higher than 400 in any region. I daily (thank you, Hootsuite, for making it so easy!) you should repurchase stock whenever you can. The importance of buying back stock early and how buying back stock gives you an edge in the game. Aim for a higher credit rating of B+ or above. construction cost to be financed with debt. One way you can maximize the R.O.E is to purchase stock at the earliest possible time. Do not focus too much on Ending Cash, but keep focusing on Net Profit, try to increase that over each years. If it is lower than 40%, your wholesale price will be in competition with your internet price. You are now done with your private-label decisions and all significant decisions that affect your net profits. Just plug in numbers and note down your net profit values. Hi! I am having trouble getting my company back into the positive ending cash after taking out a loan. The FREE BLOGcovers topics like. Yeah I had that in the first weeks as well. Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. This enhances the marketing efforts for the brand. Some students even let it ride without making ANY decisions for years! Your interest rates depend on your credit rating and the duration of your loan. Exactly. Please delete one if there is an extra comment. Like should I add up all my wholesale prices from the 4 regions and then divide by 4 to get an average wholesale price and multiply by 1.40 to get the internet price or should I base it off the lowest wholesale and then multiply by 1.40 to get the internet price? My direct competitor is now selling 8 stars with more than 400 models in wholesale so I think i will be at a even better position selling 50 models. So your costs will be relatively low as well and the private label will be a very important factor of yours. NEVER do this. I suggest to go for maximum profits. Use the remaining 30% capacity to sell shows in private-label! of what decision year youre in, how bankrupt you are, or if your company is dead last right now . Please post any information pertaining to: strategies, tips, final presentations, case studies, quizzes, etc. If you see little action on the celebrity market, go ahead and get your celebrities for the lowest price possible ($500). you can SUCCEED in the Business Strategy Game by following my SIMPLE tips, advice, and strategies. With increased competition, prices tend to decrease. The celebrity should also be compatible with the product, for instance, a football player would be ideal for a sports shoe endorsement. Having an increased S/Q rating and lower prices boosts the image of the company positively. In this package you get TheUltimate BSG Solution Guidealong with theIndustry Champion video. One week they might increase, the other they might increase by just a little or even decrease. This free website and paid guide are a collection of the strategies I have used myself while winning the Business Strategy Invitational multiple times, seen work by my competitors at the highest level of play, and implemented on dozens of teams Ive personally coached. Using this as a base strategy has yielded good results in my experiences. And should I do stock repurchase this year? . After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. Five years ago, I was sitting in a similar situation as you. that helped me become Business Strategy Game Grand Champion. Sorry for the late reply.. Been starting my new job and working a lot lately. If it is 0%, that is fine as well, do not worry about it. Those that are already playing the BSG Online and perhaps want an edge over the competition. Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. On BSGTips, we have an email service and forum to handle any support issues you may have. I am on my second year and I have negative income right now, any tips on how to get in the positive? During the entire simulation process, it is important to keep tabs on the company intelligence reports (C.I.R) and the company operating report (C.O.R) The C.O.R will give you insights into plant investments, labour statistics as well as data on plant capacity. The value that yields the highest profit value is the one you want to go with for this decision round. Does it hurt any other factors? You will also receive a copy of Currency Made Simple. Otherwise you will not sell any shoe either. Automated page speed optimizations for fast site performance, Capsim Winning Strategies and Simulation Tips, Leadership and Management Assignment Help. Hence, try to keep your internet price at least 40% higher than your wholesale price. Always keep that in mind when formulating your strategies and leave room for adjustment where necessary. The Business strategy game offers a unique hands-on experience for participants grouped in teams, to run a virtual footwear company and go head to head with other competitors to see whose business strategies win. Avg. values have changed. If you're like most students though, you just want to win the Business Strategy Game, be crowned Industry Champion, get the grade, and move . Buy Now with PayPal. Pay attention to the plant upgrade options as well. If you are completely new and your projected performance box is not showing yet, you have to click the Save Decisions button on the upper right-hand corner for the projected performance box to appear. That its always wise to start out on the right foot rather than try to pull yourself out of a financial nosedive. Fin. Everyone has the same advantage as the team next to them. On this decision page, you can bid on celebrities. Theguide will show you how to make your company lean and agile to cope with the industrys marketplace. Im glad I was able to help and good luck to you! When you found the best combination to produce your shoes at the lowest cost possible while meeting the S/Q rating requirement, move to the Private-Label Bids section. I promise you my techniques and tips are fully replicable and have kept me theundefeatedall theseYears! Thank you very much for your kind words! Hi, Select from a pool of diverse individuals who will bring in different opinions and perspectives to the team. 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.