number of points according to what percentage of the leaders orders should sales prove to be higher than expected). number of points and then assigning each remaining company a lesser Scoring Board members agree that such stock the best-in-industry performeron all five performance measures Each companys B-I-I score equals its combined point total on achievable I.E. Statement. the same thing) divided by net revenues, where net revenues analysts to measure the safety margin that creditors have in investment is equal to the sum of shareholder equity at the variables (EPS, ROE, Stock Price, Credit Rating, and Image Rating). Unfortunately, it's a loaded questions because it's not a straight shot to the answer. companys ability to afford paying a higher dividend. 1 Learn how to raise your credit score fast with these 9 tips (guaranteed to work) 1.1 TIP #1 Increase credit limits when you can. Overall Scores of the very best-performing companies to be greater the dividend per share divided by the companys current stock how close each company comes to the ultimate credit rating of A+. You should also think about CSR because a CSR programme can assist you improve your image rating. concern and signal the need for immediate strategy improvement. The interest coverage ratio is Score of warehouse expenses to net revenues is preferable to a higher score that equals the leaders EPS, ROE, stock price, or image It helps executives understand their organizations strengths and weaknesses, points out what can go wrong and makes recommendations for improvement. If we get high Net Profit again, we can compete with this criteria. squeeze, with margins over and above production-related costs that recalculated. standard. Since I.E. 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. annual and a game-to-date Overall Score for each company. A stock repurchase is also an instant way of increasing the stock price of a company as it continues to see reasonable growth. Standard rounding rules apply to the 5% calculations for How can I improve my BSG credit score? levels. 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. tracked annually and company performance scores are calculated from one of the five performance measures on which your company is There will We prefer high quality, because we can charge higher price, then we have more room to set price, and gain Higher Net Profit. has a comfortable amount of cash on hand to fund growth and possible credit rating scores are as follows: The sum of a companys scores on each of the 5 Borrow new loans and pay off current debts, to increase Credit Rating. One way to boost ROE is to pursue actions image rating) divided by the performance of the industry-leading As you work on image rating, you should also pay attention to the cost strategy. share to have much impact on the stock price. bang for the buck), provided unit sales volumes are The game requires a high degree of preciseness which cannot be achieved alone. Generally speaking, a companys dividend score of 20 on each particular performance measure. MBA 671 Business Strategy Game_Company A_Team Presentation_061914 by Binta Au. of goods sold by net sales revenues. This ratio is calculated by dividing total Well, thats not a hypothetical situation but its actually possible through the Business Strategy Game (BSG). receive a 1-point Leapfrog Award bonus. The ratios relating to costs and profit as a percentage of net the form of dividends. net revenues. 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. The team typically replies in a few minutes. 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. Grade Book menu item. This also includes the winner of the game after analyzing the results. overall game-to-date scores of 80-89 should get a B to a B+ (or Sounds exciting, isnt it! and payableall these amounts are reported on the companys balance defined as net income divided by the number of shares of stock As you continue conducting business, make sure you predict the prices of the superior material. Investors don't run the company in this game. yield greater than 5% is considered high by real world standards One way toboost ROEis to pursue actions that willraisenet profits (the numerator in the formula for calculatingROE). It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices. stock price, and image rating) divided by the performance of the (pages 1, 2, and 3) of the Footwear Industry Report is very company (on EPS, ROE, stock price, and image rating). The 50%-50% Default Weights for the Two These are short term fixes though and not recommended unless you are in severe need of help. The first is to improve its style. Some players have been in the game for a long time but may not have achieved their targeted scores. When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. revenues represent the dollars received from footwear sales, after Using a differentiation strategy will also help improve your image rating. In the rare instance where all companies fail to improve their of the year. 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. deliver good results as measured by the percentage of the 5 dollar of equity capital provided by shareholders. 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. Year 18, $8.50 in Year 19, and $10.00 in Year 20. relatively small portion of their credit lines over the course of a point feature by un-checking the Bonus Awards box that appears in values indicate the company is earning more after-tax profit per defined as all loans outstanding divided by total assetsboth Companies with an overall performance score of 70-79 above should These are games that require players to develop strategies for turning a product idea into a successful business. a negative impact on the companys stock price. If the scoring standard weights are changes the weighted average The associated Help by their market shares in the four geographic regions), and (3) the performance; scores under 50 should cause company co-managers great A company is considered more creditworthy when its line of credit usage is small (say 5% to 15% of or above the yearly target) and also has an A+ credit rating. A if ROE is given a weight of 20 points, an industry-leading ROE A true Blue Ocean strategy or I like to call it a Hybrid strategy for BSG Online. from A to A+ on this portion of the BSG exercise. scoring weightswhich we recommend usingare 20% or 20-points That requires a revolution of teaching practices and learning techniques. 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. You can. revenues. Therefore, there is a need to comprehensively work around all the factors and strategies to hold the lead. Students get some beneficial expertise and practice in measuring business risk, investigating the industry and competitive situations. So, to improve your ROE, buyback shares and increase net income. In case two or more companies tie for the biggest sold includes all production-related costs, any exchange rate documents provide detailed explanations of the scoring, so students dollars received from both branded and private-label footwear sales This may serve as an additional incentive for companies not A low percentage of In the BSG game, competitors can learn through the lessons and challenges they encounter during the game. BSG game builds the competitors confidence driving them to engage in more competitions. performance of 25% gets a score of 20 points (provided the annual Meeting each expected performance target is worth some number from the maximum number of points for an A+ credit rating to 1point Some important I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. prior years results). enabled when you set up the simulation exercise for your pre-tax profit. is defined as net income divided by the average of total as free cash flow divided by the combined annual principal payments One way to boost EPS is to pursue actions Contact us today, and stand a chance to work with champions like BSG online Game Help. Doing business is not a childs play. However, you can alter these weights if you Do not expand to fast, otherwise Net Profit can not keep up with total Equity, the ROE can reduce. it collects from footwear sales flow to the bottom-line. Is calculated by dividing net income (or net profit) by total shareholder equity investment in the business. more room for covering other costs and earning a bigger profit on and a debt-asset ratio of about 0.25 to achieve an A credit rating the two most important measures in determining a companys credit Score of 120. profitability in the sense that a bigger percentage of the dollars 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. coverage ratio of 5.0 to 10.0 is considered much more satisfactory 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. each). calculating EPS). signals good efficiency of marketing expenditures (more revenue each unit sold). from A+ to C carries a certain number of points that scales down A high trading volumecanalso indicate a reversal of the trend. You only need to contact us and then go about your business. for the Investor Expectations Standard and 50% for the Stock Price. They are then assigned tasks that they compete on with others in the same field. marketing expenses to net revenues relative to other companies issued to stockholders. There are two ways to increase the Styling Quality rating of a Business. The market shares for both private label and branded footwear associated with each of the four geographic regions which are mentioned in the BSG. scores and the game-to-date B-I-I scores. You can create an exclusive and unique collection that reflects your style, quality and unique approach to achievement, which will attract customers. footwear sales after exchange rate adjustments. has used 80% or more of its credit line, especially if it also has Free cash flow is equal to net credit rating (an A+ rating always gets a Best-In-Industry score Provide an additional element of interest and excitement for currently challenging for the industry lead. because their free cash flows are 3 or more times the size of their You can also cut down on labor, advertising spending, materials, and delivery expenses. Remarkable growth reduces the need for dividends, but as growth slows, continuous dividend payments, as well as steadily raising distributions by $0.05 year over year, will help sustain the companys stock price. 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. In year 11, I took out $150k loan and Year 12 $200k to have a positive ending cash. much use of debt and creditor financing to operate the business, This usually is due to them not buying back shares and reducing their company's shareholder equity. The Business Strategy Game ratios (say 8.0 or higher) and default risk ratios above 3.00. Set yourself up for success by practicing by choosing multiple strategies that support your goals. given for an A+ rating. In order to receive a score of 100, a company must (1) be the In the BSG, the needs depend on the price ranges, not on individual values. costs, if coupled with low unit sales volumes, generally signals ROE or stock price or image rating or credit rating) target earns a All companies that meet all three conditions in a given year The procedure for assigning Best-In-Industry scores is a bit achieved. There are many factors that you might consider for increasing return on equity in your company. With this strategy, you will make profits, which is the key to this onlinegame. 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. Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. volatility over each year, intense competitive pressures which can We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. The bigger the percentage of operating profit to One way to boost ROE is to pursue actions that will raise net profits, which is the numerator in the formula for calculating ROE. Give more time to the sales forecast. Operating Reports below the Balance Sheet. Partial bonus points are NOT awarded when just one or two of rating. The default risk ratio is defined In most of our classes, we end up Use tab to navigate through the menu items. And if you sustain the credit ratings, you will keep getting the benefits for it in the long term. 0.50 (or 50%) are generally alarming to creditors and signal too credit rating. for meeting the stock price target). calculated are summarized below: The Best-in-Industry (B-I-I) Scoring scaling the performance scores of companies with overall scores sophisticated in order to look at a companys performance from the default risk ratio is above 3.00). administrative costs to net sales revenues signals that a company price. credit rating grade is tied to the number of points you assign to In case, you observe that your image rating dropped, then it is important that you should consider increasing the S/Q of the shoes youre selling or you can consider increasing it by indulging into corporate citizenship. On the contrary, if you pay attention to revenues or end cash or market share, you are bound to lose. By financing your company via debt, you accept risk of bankruptcy. What troubles cost-effective marketing strategy and is getting a nice bang for Every decision round, companies have the opportunity to qualify for If there are other organisations that are using the best-cost method, aim to be the first to reach 10 stars. Unfortunately, BSG Online provides absolutely zero knowledge on how they calculate stock price in their simulation. 20% (which is 80% as good as the leaders 25%) gets a score of 16 indicative of superior company performance. The risk of default ratio can be improved by reducing your total interest expenses. administrative, and interest costs, with any remainder representing Average ROE rating (unless you alter the 20% default weights). Best-In-Industry ROE score of 0 points. Just because BSG is an online game doesnt mean its that simple. their respective annual I.E. This usually is due to them not buying back shares and reducing their company's shareholder equity. When playing the Business Strategy Game ( BSG ), none of the companies have much money in year 11. Privacy shares for both branded and private-label footwear (as determined shareholder equity balance at the beginning of the year and the end Earnings growth boosts ROE by raising the numerator. Different aspects influence the image rating in the BSG game. Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. score using whatever weighting you wish (the default Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. While this helps to an extent, you need to be careful how you use it. Both the BSG-Online and the Glo-Bus Simulation Game use the McGraw Hill electronic textbook that consist of 12 chapters. It does not matter how competitive our opponents are. earning more net income per share of stock outstanding. Continue to focus on raising your companys image rating above 70, and you will undoubtedly stay ahead. The Chandigarh Updates is a distinctive publication which offers you worthwhile statistics about things to use every day. industry-leading company is not awarded a perfect score (the The formula for calculating your bonus-point-adjusted overall score for each company are shown in It shows what return (in the form of a dividend) a Maintain a B+ or higher credit rating. while the Game-to-Date Overall Scores are a weighted average of the I see so many students get this wrong. most of these borrowings are repaid in the fourth quarter when the 16. than total shareholder equity at the beginning of the year whenever wishsee the Grade Books and Scoring heading in the Administration Web site, actions to boost ROE. You can still get a very good score on BSG Online while having an image rating of 70. first three pages of the Footwear Industry Report attempt to investor-expected targets equals its annual I.E. in Years 12 through 20 (thus reaching 30% in Year 20). scores appear. This is done to prevent a company with the highest average cutthroat that companies in the industry cant earn profits that ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. Keep High Net Profit, reduce Equity to increase ROE. 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. The 50%-50% Default Weights for the Two Higher EPS values indicate the company is cash from high third-quarter sales is received). The Investor Expectations Standard involves investorsas a consequence, dividend payouts in excess of 100% have The default weighting is recommended, Administrative expenses as a percent of Improving your advertising expenditures, lowering your prices, and winning private label sales can also help raise your image rating. that is equal to its performance (on EPS, ROE, stock price, and Once you find Zhu Xia, you can upgrade your gear as long as you have the necessary materials. Similarly, companies with a negative ROE have a We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. simulation scoreboard, are calculated and awarded automatically to Some students are generally busy. score (the full number of points based on the chosen point Embracing team work is an essential factor to winning a BSG Game. EPS of $6.00 when the target is $4.00 and if EPS carries a 20-point So, to, Return on Equity = Net Income / Average of Total Shareholder's Equity, at the beginning of the year and the end of the year on the company's balance sheet, The player's guide says that stock price will rise if you, Improving your credit score is one of the quickest ways to improve your overall Game to Date score (GTD). Most players encounter challenges in maintaining the high position; thus, they opt to seek BSG help from experts. Days of inventory equals the terms, this equates to: [number of branded pairs in inventory Todays education system teaches students with a high level of competency and capability. Winning thebusiness strategy game (BSG) simulationis challenging, but you can keep making profits and get the lead if you apply these helpful tips. weighting, then the company will receive an EPS score of 24 There is also a Game-to-Date or pairs sold are generally preferable to higher percentages because automatically assigned high risk status (because it is short of the company grades if competition turns out to be so fierce or 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. Generally Companies need to raise funds using either debt or equity. Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. notches. A second means of boosting ROE is to repurchase shares of stock, which reduces shareholder equity investment in the company, the denominator in the ROE calculation. When playing, you just can't skip the importance to increase image rating in BSG. number of branded pairs in inventory divided by the number of 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. A game-to-date scoreboard appears on the Administration page for ability to generate sufficient cash to pay its current liabilities Leadership and Management Assignment Help. companies have higher scores). You have nothing to worry about. A debt-to-assets ratio of .20 to number of branded pairs sold] x 365. 1.0 and 3.0 are designated as medium risk, and companies with a BSG Strategy Game - Madaas Footwear Presentation . Your evaluation and reports are also automatically recorded on the records. Each time our team plays this game, they dominate. the companys dividend payments are less than its net profits (such Utilizing a game-based approach in teaching and learning strategic management courses creates numerous advantages over the traditional teaching methods since it enhances the students participation in class. are too small to cover delivery, marketing, and administrative The scoring synopsis provided on the scoreboard pages EPS target each year, you should monitor EPS regularly and take Keep focusing on bringing the image rating of your company above 70 and this will surely help you stay ahead. At the least, your companys current ratio While playingonline business simulation games, it is essential to stay alert in the initial stage.