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. Emerging on top of this simulation can be quite a challenge.
In this article, you will explore some of the strategies and tips that should be employed to boost your winning chances.
Selecting the members that will form your team is very crucial as you will be working together to ensure the success of your company. So what are some of the qualifications you should be on the lookout for when picking your team?
- Select from a pool of diverse individuals who will bring in different opinions and perspectives to the team. This will enable you to tap into the different unique abilities of each of the members thus strengthening your team.
- Good communication skills. Whether a member is suggesting a different business strategy or opposing an approach, it should be communicated to the members clearly and orderly. Members should be encouraged to voice their disagreements and have divergent opinions accommodated and debated.
Every single member should be given the venue to express their thoughts clearly. You might agree to disagree in the process but each member should always be given a clear avenue to express their thoughts that are based on their research. When there is a change in any aspect of operations it should be implemented upon approval of all the members.
- Complement each other. Members of the team should have skills and strengths that serve to complement each other for a perfect working synergy.
- Be objective in your approaches from the beginning of the simulation right to the end. Make all the decisions tactfully and base them all on research and not emotion.
- Improve the Image Rating of the Company
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
- The styling/quality (S/Q) ratio of the business venture in the different geographic locations they operate in
- 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.
- Displaying corporate citizenship in a responsible and socially acceptable manner for not less than 4 years.
So having understood what the image rating of a company is based upon, how can you improve it?
- By employing the best cost strategy. This is where consumers get the best quality of footwear at the lowest possible price, therefore ensuring value for their money. Having an increased S/Q rating and lower prices boosts the image of the company positively.
- Aim to dominate at least a quarter of the market share in every geographical area of your company’s operations. This will lead to greater visibility for your company and thus a boost in the image rating.
In the case where other competitors are employing this strategy; strive to be the first team to get the most points. 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.
For your company to stand out, it should ideally have an image rating of 70 and above. Always keep that in mind when formulating your strategies and leave room for adjustment where necessary.
- Boost The EPS, the Price of the Stock and the Return on Equity( ROE)
R.O.E is the measure of the ability of a company to generate profit. It is a show to the investors whether their investment is performing well. For your company to be on the right track the R.O.E should be at least 15% annually. One way you can maximize the R.O.E is to purchase stock at the earliest possible time. Waiting to buy them later will lead to an increase in their prices.
To boost earnings per share (E.P.S) you can use the cash at hand to retire and repurchase any outstanding shares.
To improve the financial standing of the company it is a wise idea to employ the balanced scorecard to determine the strategies that will boost the company’s competitiveness.
- Lower Operation Costs
Based on the kind of approach you will use, you might find it useful to keep some of the costs low.
Apply the following tips to reduce some of the costs.
- When coming up with a CSR initiative, ensure that the budget can be sustained over time without burdening the company. There should be a balance.
- Pay loans faster. This will save you money in the long run and at the same time boost your credit rating positively
- 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.
- Switch between different advertising budgets to see which strategy will be the most cost-effective to capture the target market at the best price.
- Plant Operations Capacity.
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. In the instance where a plant is available for purchase, buying one would be the ideal option because you will be able to save time and up to 20% of the money that would have otherwise been used to build one.
When you are deciding whether to upgrade your plant capacity, time is an essential factor. If you will not be able to get a return on your investment over the remaining period, it might be a good idea to forego the upgrading process.
- Celebrity Endorsement Decisions.
A celebrity endorsing your product offers a big boost to product awareness, helps a brand penetrate new regions thus acquiring new market shares, and can drive up sales. Here are factors to be considered before picking a celebrity.
- Make sure the celebrity is suitable in the geographical region you want them to endorse your shoes. The celebrity should also be compatible with the product, for instance, a football player would be ideal for a sports shoe endorsement.
- The celebrity endorsement will work well only if it is boosted by aggressive advertising. This enhances the marketing efforts for the brand
- For long term celebrity contracts and endorsement, bid for them in the early stages of the simulation.
- Don’t blindly waste recourses on a celebrity tag; be strategic to make sure you will get the return on investment.
- Analyze the Industry Reports
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 C.I.R on the other hand will give you a deeper look into market share, S/Q ratings as well as price.
Understanding all these reports will help you stay ahead of your competition as well as come up with the strategies that will enable you to perform better in the simulation.
In conclusion, while the BSG simulation requires tact and strategy, employing the above tips will help you get a better sense of how the game works and incorporating them into your strategies will boost your overall performance.
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