Running a business isn’t child’s play, but if the strategies to operate a business can best be understood by just playing a game, could it be exciting? Well, this is possible through the Business Strategy Game (BSG).
The Business Strategy Game (BSG) is online games in which students form teams that are assigned tasks and compete in running the business of an athlete footwear company. The rule of the game is to compete with the other students’ teams to stay ahead to gain a competitive advantage over other teams.
Acquiring success is the primary objective in business, and it requires working on all the vital factors to achieve it. However, in the BSG game, the main aims are to increase image rating and staying ahead in the competition, maintaining the growth of the earnings, return on average equity investment, among other things. These are the factors that need working to increase image rating in the BSG game.
What is Image Rating in BSG Game?
When playing the BSG online game, you must attain a BSG image rating of more than 70 to be on the safe side of the game. Different aspects influence the image rating in the BSG game. They include the following:
- The patented styling/quality (SQ) rating of the business in every geographic area
- The market share of the private label and patented footwear associated with each of the four geographic areas stated in the BSG game.
- These actions of the company will show corporate citizenship and its practice of operating the business in a manner that is socially responsible for about 4-5 years.
How to Improve your Image Rating in BSG Game
In the BSG game, you can’t overlook the importance to increase your image rating. Therefore, make sure that you are working on the best-cost strategy as it implicates the image of the company by increasing the S/Q rating. Working with a lower cost price is directly linked with attaining the aim of getting a high image rating.
If you are competing with five teams, it is vital for each of the team at least aims 20% of the market share in every business segment. This way, business is evenly represented in all the regions. The overall image of the company will be positively affected. So, if the other teams are executing the best-cost strategy, make sure your team is the first to reach the 10 stars.
You can also increase your image ratings by considering the CSR initiative. However, it is advisable to restrain on how much you intend to invest in this segment.
Tips on How to Win the Business Strategy Game (BSG)
The following are a few tips and tricks that will deliver you a win in your BSG game. By following these tips, you can be sure to win your upcoming BSG online game.
- Pick a Strategy
For easy winning of your BSG game, you need a high quality/low model or a mid-quality/high-model strategy. With this strategy, you will be sure to make profits, which is the key to this online game. Contrary, if you pay attention to revenues or ending either cash or market share, you are bound to lose. Therefore, pick your winning strategy – profits and stick to it.
- Corporate Citizenship
Even though corporate citizenship is associated with wastage of money, you can still increase your image rating if you pick some of the options therein. Go for the strategies that best optimize your image ratings, and the best would be the Ethics Training. Put on “All Employees” as well as workforce Diversity program. These are the ideal options to increase your image rating. Going further can lead to more spending and consequently putting pressure on your revenue while decreasing your profits. This scenario will eventually lead to a loss.
- Plant Capacity
Thoughtfully, decide your plan for setting up a plant capacity. We recommend to only building onto the existing plants. This way, you will increase your learning curve while the shoes cost less. It will be disastrous to sell your capacity as you will need it at some point. This scenario will be, especially when you will want to upgrade the S/Q if you will need a high-quality strategy or upgrade the Production Setup Reduction if you go with a low-quality strategy.
- Branded Production
When it comes to branded productions, you will have to toggle the materials, features and TQM to get the right S/Q. With the best practices training of about $5000, you will get the best S/Q rating for your lowest. We guarantee it will pay itself and more. When toggling the materials, features and TQM, let the features remain at $50K. As for the TQM, the best will be between $0.70 and $0.80. Just play with the numbers and be sure to get the combination that will deliver you the highest profits.
When it comes to wages, try reducing their pay first so that you may increase the profits. Contrary, you can increase the employees’ wages in percentages at a time. Toggle between 6% and 8% or up to 14% to maximize profits across the regions.
It can be daunting to figure out the branded pairs you need in every region. However, you can play with numbers to arrive at a particular quantity. If you get a high surplus of shoes, be sure to lower the percentage of shoes the following year.
- Branded Distribution
When it comes to the distribution of branded shoes, make sure you have typed or labelled the number of boxes you want to distribute to each region. More importantly, ensure that you are shipping them from the right plant. This way, you will cut operating costs while building capacity where and when necessary.
- Bids for Celebrities
When bidding on celebrities, don’t bid too high. Just put in a low to medium bid of between $3000 and $6000. This range can be worth the price of a celebrity. Nonetheless, you can decide what is best for you.
- Private Label
The private label market can be a good estimator of what each team is up to. It also offers the opportunity to produce the most affordable shoe. This undertaking will, in turn, offer you a great opportunity of being profitable. If you have remaining production capacity, put it in the provable label market. You can allocate the amount to the markets you deem necessary. Evaluate the margin over direct costs to determine whether the market will be profitable based on the amount you are charging.
Once you allocate the shoes to a region, buckle the superior materials and stylish features to make sure the price indicated for production cost is the lowest. Also, ensure that you’re meeting the S/Q rating for the round. Besides, you can price your shoes at least $5 below the average wholesale price in the industry for the region. Above this price, you may not sell one shoe.
Some useful tips on Private Label
- If there is no one else engaged in the private label market, price your shoes high.
- If the private label market is competitive, price your shoes under everyone.
- Take the entire market share in every region or your selected region by simply under-pricing everyone else.
- Financial and Cash Flow
Pay off your outstanding debt, issue stock, repurchase stock and give bonuses to shareholders. This way, you increase your net income, therefore increasing the ROE, EPS and stock prices. No matter how small it starts, always give a dividend and increase the rate as the game moves on. This way is how you increase ROE in BSG, even with a small margin. Should the need to buy capacity arise, always consider issuing stock as opposed to taking loans. If you have a low stock price, repurchasing stock is a better option for increasing ROE and EPS.
Now, you know how to win the BSG online. Opting for the high-quality strategy allows you to charge more per shoes to increase your profit margins, thus winning your game. Equally, you can opt for the low price strategies, but you will have to sell tons of shoes to accrue enough revenues to increase profitability. Whichever way you choose, the end (winning) will justify the means!