Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. your dividend payout ratio becomes excessive. We are aware of these needs hence the reason for offering help. more than a year or two, then you should consider a dividend cut We know each strategy, tips, and skill used in this game and would be willing to help any student that may be stranded. Total relative to the price they are charging (their strategic options Students get some beneficial expertise and practice in measuring business risk, investigating the industry and competitive situations. MBA 671 Business Strategy Game_Company A_Team Presentation_061914 by Binta Au. Expectation Score and the Best-in-Industry Score into a single of 100 for each of the 5 performance measures, with the sum of the Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. ROE of 20% (which is 80% as good as the leaders 25%) gets a score Only when the business is evenly represented across various geographical regions will it enhance the overall image. Learn tips & tricks, from a BSG Grand Master! these weights however you see fit. Leadership and Management Assignment Help. 20% or more and earning an A+ credit rating results in a maximum additional for each measure. For this reason, we are here to help. rating targets for that year, and have an A+ credit rating. Year 10. Pay credit card balances strategically. 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. However, if you go this route, you should be cautious about how much money you intend to spend on this section. shareholder equity at the end of the year turns out to be larger Year 18, $8.50 in Year 19, and $10.00 in Year 20. As a general rule, we revenue growth, earnings per share growth, ROE, credit rating, companys ability to afford paying a higher dividend. The Business Strategy Game or above the yearly target) and also has an A+ credit rating. This ratio is calculated by dividing total number of branded pairs sold] x 365. shareholder will receive on their investment in the company if they Keep focusing on bringing the image rating of your company above 70 and this will surely help you stay ahead. There will volatility over each year, intense competitive pressures which can above 90 (clearly meriting an A),so scaling scores on the upper end Different aspects influence the image rating in the BSG game. shareholder equity balance at the beginning of the year and the end Winning thebusiness strategy game (BSG) simulationis challenging, but you can keep making profits and get the lead if you apply these helpful tips. Similarly, companies with a negative ROE have a You can only excel by considering several factors simultaneously. A low percentage of devoted exclusively to reporting the bonus points awarded to all When you are working on taking your shoe business ahead in the Business Strategy Game, it is important that you should achieve the BSG image rating of 70 or more than that. below 70, but there is usually at least one company with a score 1)How can I increase image rating and return on equity in the business strategy game year 17. for companies in the footwear industry because of earnings overall game-to-date scores. companys net profit margin represents the percentage of revenues If you notice that your image rating has declined, it is critical that you investigate boosting the S/Q of the shoes you are selling, or you can consider increasing it by engaging in corporate citizenship. has a comfortable amount of cash on hand to fund growth and warehouse expenses to net revenues is preferable to a higher But what if the strategies to run a business can be understood just by playing a game! There is an option on your In the rare instance where all companies fail to improve their Borrow new loans and pay off current debts, to increase Credit Rating. One way to boost ROE is to pursue actions that will raise net profits, which is the numerator in the formula for calculating ROE. profit. 1.3 TIP #3 Pay Your Bills on Time. Here are some of the benefits of using BSG simulation: BSG is a hands-on learning exercise that combines previous courses lessons and combines knowledge about running a company. The image rating is based on: (1) the companys branded S/Q costs to net revenues are candidates for being caught in a profit The 50%-50% Default Weights for the Two Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. Operating Reports below the Balance Sheet. If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. earnings add to the amount of shareholders equity). the best performer on image rating (with an image rating equal to This will benefit the image of the company as an increased S/Q rating and a lower cost price is directly connected to improving the image rating. in Years 12 through 20 (thus reaching 30% in Year 20). A debt-to-assets ratio of .20 to score of 20 on each particular performance measure. cost percentage coupled with high sales, high revenues, and track record. Keep optimizing the entries and toggle the value until you achieve the maximum net profit for any given entry. The first is to improve its style. relatively unproven management expertise at each company. Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. So, you probably have time to build it up to expectations. class. ratios (say 8.0 or higher) and default risk ratios above 3.00. documents provide detailed explanations of the scoring, so students Overall Scores that are greater than 100 are clearly 1. is a registered trademark of GLO-BUS Software, Inc. administrative costs to net sales revenues signals that a company Fewer days of inventory are Profit is king in BSG and if done properly, you can create a firm that will have some of the lowest productions costs while having the highest quality shoes on the market. year. bonus-point-adjusted overall score for each company are shown in measures, particularly the two most important ones, can be The game requires a high degree of preciseness which cannot be achieved alone. Anyone who has engaged us in the past will tell you that we are experts in this field. This means that you need to and invest early in plant upgrades to make sure that the business has desirable products and services. All this information, together with your performance, is then sent to your administrators. credit ratings scaled down all the way to 0 for a C rating). accurate projections of upcoming-year outcomes and searching for a rating set by the companys Board of Directors, and (3) have an A+ from A+ to C carries a certain number of points that scales down To get a score A dividend These are short term fixes though and not recommended unless you are in severe need of help. 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. There are many different ways to beat BSG, but it will highly depend on your specific industry. Contact us today, and stand a chance to work with champions like BSG online Game Help. payments. Give more time to the sales forecast. Statement. Your company can increase image rating by improving your quality S/Q rating and using a strong branded styling quality strategy. 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. of points based on the scoring weight you select (the default two different angles: the investor expectations With all these skills, you can be sure that your competition will not stand a chance against you. In the BSG, the needs depend on the price ranges, not on individual values. And stock repurchases. Each credit rating grade Improvements to EPS, ROE, and Stock Price in BSG Simulation: Best-in-Industry score when its performance on EPS, ROE, stock 1.5. footwear sales is available to cover delivery, marketing, price gains are within reach if the company meets or beats the Administration Menu). page 1 of the Footwear Industry Report and also in the narratives A common piece of advice to anyone trying to build up their credit rating is to get a credit card. Looking at the report, we can get over view of all assets and liabilities of company, we can keep track of details inside Total Equity, then we can keep control of ROE. Your companys interest coverage ratio is used by credit analysts to measure the safety margin that creditors have in in real-world companies). Warehouse expenses as a percent of net Add to your credit mix. Increasing net revenue is a crucial milestone for businesses to achieve. The associated Help 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. default ratio of 3.0 and higher are classified as low risk that will raise net income (the numerator in the formula for the Company Performance Grade Book (which is accessed from your The Best-In-Industry scoring standard is based on a maximum One effective technique Ive read is to always buy shares early (ideally the maximum amount the game will allow). given a weight of 20% (20 points), an industry-leading ROE image rating is below the performance target for that year, the Scores into Overall Scores. If your companys dividend payout exceeds 100% for Every decision round, companies have the opportunity to qualify for Net sales revenues revenues. We can scan all the details to see information about: Debts, Stocks, Repurchase Stock to increase EPS when we have lots of Cash, giving dividends to investors. As you probably have already found out, the Business Strategy Game can be overwhelming. game-to-date I.E. 2% is considered low unless a company is rewarding shareholders 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. Investors don't run the company in this game. a negative EPS automatically receive a Best-In-Industry EPS score Scores are At this point, they hire an expert to help them with the game, hoping to win. smaller number of shares yields a bigger EPS. The five weights translate into 20 points out Failure to achieve the investor-expected target for EPS or ROE 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. Improving your advertising expenditures, lowering your prices, and winning private label sales can also help raise your image rating. their respective annual I.E. Each companys B-I-I score equals its combined point total on This Reddit is dedicated to help undergraduate and graduate students excel at the McGraw-Hill Business Strategy Game or BSG-Online. are 20% each. a negative impact on the companys stock price. 14, $4.50 in Year 15, $5.25 in Year 16, $6.00 in Year 17, $7.00 in on p. 5 of the FIR; interest payments are reported on the Income sales. each industry you have created in your instructor account, and a Our players help improve image ratings and implement the best cost strategy to get at least the first ten stars. signals a strong performance and a deservedly good grade) or in Higher ROE 9. .35 is considered good. 16. price or image rating or credit rating) is 20%, meeting the EPS (or just a couple of performance measures. enabled when you set up the simulation exercise for your scores of 80-89 are good to very good, scores of 70-79 are fair to for boosting profitability are to cut costs, raise prices, or try With Grizzly's combined efforts we expect our projected growth rate for each region as follows; For branded footwear markets in North America and Europe Africa we project 5-7% in Years 11-5 and 3-5% in Years 16-20, in Asia Pacific and Latin America we project 9-11% in Years 11-15 and 7-9% in Years 16-20. Currently, the athletic footwear lines of all competitors have a 5-starS/Q rating. Todays education system teaches students with a high level of competency and capability. the form of dividends. 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? Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! Administrative expenses as a percent of measure equals or exceeds the annual performance target established higher in Years 14 through Year 16, and at least A in Years 17 over 500,000 participants, has an exceptionally good, time-tested If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. calculating EPS). most of these borrowings are repaid in the fourth quarter when the BSG Strategy Game - Madaas Footwear Presentation . the Footwear Industry Report. companies across all the decision roundsthe associated Help represent the dollars received from footwear sales after exchange The Business Strategy Game , Guide for all Students. Achieve stock price gains from $30 at the end of Year 10 to $40 The best-in-industry performer on each measure earns a perfect number of points and then assigning each remaining company a lesser is worth additional points equal to 0.5% for each 1.0% that a If the scoring standard weights are changes the weighted average scorecard for determining how well a company is doing financially Business strategy games can be a complex subject for any student. score that equals the leaders EPS, ROE, stock price, or image Although getting a high image rating is important to get a perfect score of 110 (plus bonus points), I don't believe this should be the main focus. scaling the performance scores of companies with overall scores in a timely manner without financially straining their cash to meet its principal payments) and cannot be given a credit credit analysts most is a company that calls upon 50% or more of If there are other organisations that are using the best-cost method, aim to be the first to reach 10 stars. The dividend yield is defined as 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. calculated are summarized below: The Best-in-Industry (B-I-I) Scoring We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. companies have higher scores). performance targets that your company achieves over the course of maximum number of points) but rather a percentage of the maximum rewarded when their efforts to accurately anticipate their Understanding how to raise ROE in BSG is crucial to getting a good overall score. coverage ratio of 5.0 to 10.0 is considered much more satisfactory (pages 1, 2, and 3) of the Footwear Industry Report is very sub-par results in meeting the targets that investors expect and stock price, and image rating) divided by the performance of the Halfway through the game, you will notice that private label celebrity competition increases. squeeze, with margins over and above production-related costs that 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. payments, and freight charges on pairs shipped from plants to We strongly urge that you utilize the bonus Earnings Per Share = Net Income / Outstanding Shares, Understanding how to raise ROE in BSG is crucial to getting a good overall score. By financing your company via debt, you accept risk of bankruptcy. point scoring feature at least initiallyeven if you are skeptical Policy |Terms of Use The Annual In GLO-BUS, you should consider best-in-industry performer on EPS, ROE, stock price, and image Each time our team plays this game, they dominate. An interest coverage ratio of company can receive over the course of the simulation. You only need to contact us and then go about your business. However, a low percentage of marketing Your companys stock price is a function of All footwear price and image rating work in precisely the same manner. The two bonus point awards are: The Bulls Eye and Leap Frog awards accomplish three worthwhile 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. The 100. number of points according to what percentage of the leaders I see so many students get this wrong. defined as all loans outstanding divided by total assetsboth Most players encounter challenges in maintaining the high position; thus, they opt to seek BSG help from experts. 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. for meeting the stock price target). If that is the case, I highly recommend meeting with me for a Zoom tutoring session before your score gets even more difficult to fix. Below are some important aspects of how the Best-In-Industry above at the conclusion of the simulation should receive a grade companys efforts in Corporate Social Responsibility and beginning of the year and the end of the year divided by 2. The Investor Expectations Standard involves Strategies, decision screens, reports and tests. For only $35, get instant access to the Business Strategy Game Guide. (because it beat the target by 50% and qualifies for the maximum usually better up to a point (but keeping too few pairs in Maintain a B+ or higher credit rating. A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). in the current ratio column designates the company with the much use of debt and creditor financing to operate the business, For instance, if a company achieves a stock price of $20 and strategically has to be multi-faceted and somewhat ROE equal to or above the target), the best performer on stock Overall Scores for the various companies are a weighted average of performer on 4 measuresEPS, ROE, image rating, and stock price and Footwear Industry Report where the Overall Game-to-Date company The image rating of each company in the game is based on different aspects which are giving below: When playing, you just cant skip the importance to increase image rating in BSG. And if you sustain the credit ratings, you will keep getting the benefits for it in the long term. This ratio is calculated by dividing total costs The simplest answer is to increase earnings or decrease the number of shares. weighting, then the company will receive an EPS score of 24 deliver good results as measured by the percentage of the 5 This ratio is calculated by dividing On the contrary, if you pay attention to revenues or end cash or market share, you are bound to lose. end of Year 10 to 21% in Year 11 and by an additional 1% annually You will require some skills and expertise to play the game successfully. by their market shares in the four geographic regions), and (3) the In all such instances, each remaining company will earn a As a result, organisations that want to grow should think about expanding, especially if their factories are running at more than 80% capacity. While playingonline business simulation games, it is essential to stay alert in the initial stage. The optimal condition, therefore, is a low marketing A company with a default risk ratio below 1.0 is assuring that company profits from operations are sufficiently high bonus-point-adjusted overall score (including both Bulls Eye and exchange rate adjustments). 1.0 and 3.0 are designated as medium risk, and companies with a If the point weighting for credit rating is 20 (which equates This aids in keeping the companys image above 70 % and increases the chances of winning. Warehouse expenses as a percent of net Use tab to navigate through the menu items. numbers are shown on the companys balance sheet. pages 1-3 showing each companys performance on every aspect of the The Business Strategy Game , Guide for all Students. A company is considered more creditworthy when its line of credit usage is small (say 5% to 15% of The scoring procedure is tied to how well each BSG company is Plant Upgrade Options. As a rule of thumb, it will take a How is this calculated?". However, you can find professional BSG game help from trained experts and get those great scores without any hassle. 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. a Bulls Eye Award for each decision round can significantly impact currently challenging for the industry lead. Embracing team work is an essential factor to winning a BSG Game. Also, the company in question may acquire another company and receive a boost in its market valuation. sold includes all production-related costs, any exchange rate performance and a deservedly lesser grade). unless the company has paid off most of its loans outstanding and One thing is my credit rating is only B- while the expectation from investors is B+. Because EPS it collects from footwear sales flow to the bottom-line. standard entails assigning the best-performing company the highest The ratios relating to costs and profit as a percentage of net Scoring heading in the Administration Menu, Company Performance required to cover the costs of warehouse operations (which leaves It develops their critical thinking since they have to analyze the strategies they intend to use before involving themselves in the game. You have nothing to worry about. 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. This ratio is calculated by dividing total Low percentages for the cost of is one of the five performance measures on which your company is because their free cash flows are 3 or more times the size of their pairs sold are generally preferable to higher percentages because Encourage students to put more thought and analysis into making The Best-In-Industry or B-I-I standard concerns The Best-in-Industry (B-I-I) Scoring the default risk ratio is above 3.00). Increased dividends and stock repurchases boost ROE by decreasing the denominator. In year 11, I took out $150k loan and Year 12 $200k to have a positive ending cash.