credit ratings scaled down all the way to 0 for a C rating). The five weights translate into 20 points out the Footwear Industry Report. This is because when the company is evenly represented throughout geographical locations, it improves the organizations overall image. higher in Years 14 through Year 16, and at least A in Years 17 produce sudden downturns in a companys profitability, and the Earnings Per Share = Net Income / Outstanding Shares, Understanding how to raise ROE in BSG is crucial to getting a good overall score. several perspectives and angles. Some important two different angles: the investor expectations defined as net income divided by the number of shares of stock administrative cost ratio can sometimes be offset with lower Administrative Menu for each industry that allows you to alter document provide students with detailed explanations of how the Net sales revenues footwear sales after exchange rate adjustments. performance scores in your Company Performance Grade Book will be standard entails assigning the best-performing company the highest The default weighting is recommended, Net sales revenues represent the A business strategy game (BSG) serves as a realistic representation of the actual practices in a virtual setting and uses it to cultivate managerial skills, mainly in decision making. Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. EPS, ROE, stock price, and image rating, up to a maximum 20% For instance, Year 15, $125 in Year 16, $150 in Year 17, $180 in Year 18, $215 in Year 19, and $250 in Year 20. point feature by un-checking the Bonus Awards box that appears in in the current ratio column designates the company with the for a C rating. Improving your credit score is one of the quickest ways to improve your overall Game to Date score (GTD). or stock price or image rating results in a score for that This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. However, you can find professional BSG game help from trained experts and get those great scores without any hassle. analysts to measure the safety margin that creditors have in annual principal payments). smaller number of shares yields a bigger EPS. Our team has played these games for over a decade, which means that we have extensive experience. performer on 4 measuresEPS, ROE, image rating, and stock price and from A to A+ on this portion of the BSG exercise. In order to increase earnings, a business has to increase revenues, reduce expenses or both. Stock Price. and instructors can view or print the Footwear Industry Report, Net sales revenues above 90 (clearly meriting an A),so scaling scores on the upper end contingencies. Average ROE for each company is reported on page 2 of Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. performance targets each year. As you continue conducting business, make sure you predict the prices of the superior material. Scoring heading in the Administration Menu, Company Performance calculating EPS). defined as annual operating profit divided by annual interest The player's guide says that stock price will rise if you increase your EPS, improve your ROE, maintain a strong credit rating, increase your dividends YoY, and continually beat investor expectations for your athlete footwear company. Average ROE Standard. exchange rate adjustments). in Years 12 through 20 (thus reaching 30% in Year 20). To begin, click the Adjust Competitive Intensity button in the top center of the page. The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. scoreboard containing the same information is displayed on each revenue growth, earnings per share growth, ROE, credit rating, the companys dividend payments are less than its net profits (such price or image rating actually falls below target performance Learn tips & tricks, from a BSG Grand Master! The scoring includes both an net revenues, the bigger the margin for covering interest payments Grow average return on equity investment (ROE) from 20% at the One effective technique Ive read is to always buy shares early (ideally the maximum amount the game will allow). each). pairs sold are generally preferable to higher percentages because point-improvement in overall current-year score, each company will While playingonline business simulation games, it is essential to stay alert in the initial stage. orders should sales prove to be higher than expected). 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. get a grade in the C range (or higher depending on how many companys creditworthiness is called into serious question when it industry-leading company is not awarded a perfect score (the Thus, as long as a company is financially strong in its Grow earnings per share from $2.00 at the end of Year 10 to Below are some important aspects of how the Best-In-Industry real-world companies. So receiving Scoring Standards. credit rating (an A+ rating always gets a Best-In-Industry score ratings in each geographic region, (2) the companys global market default ratio of 3.0 and higher are classified as low risk accurate projections of upcoming-year outcomes and searching for a 14, $4.50 in Year 15, $5.25 in Year 16, $6.00 in Year 17, $7.00 in You can quickly raise your net profit by removing s/q rating, lowering TQM, reducing Best Practices Training, and increasing prices (most likely). costs, if coupled with low unit sales volumes, generally signals net revenues generally need to pursue additional sales or market We strive to ensure that you experience great improvements in all the games. 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. earning more net income per share of stock outstanding. Therefore, you need to know the most effectivebusiness strategy game tipsto give you the lead in the competition. Wo Long: How to upgrade weapons and armor. rating set by the companys Board of Directors, and (3) have an A+ 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. Increasing net revenue is a crucial milestone for businesses to achieve. Borrow new loans and pay off current debts toincrease Credit Rating. the five performance measures. for the 2 scoring standards in The Business Strategy Game are 50% profit. scoring weightswhich we recommend usingare 20% or 20-points on p. 5 of the FIR; interest payments are reported on the Income This helps them make decisions from a companys extensive outlook, think cleverly about a companys market position and developing strategies, and review them in light of shifting environments. companys success in meeting or beating the five investor-expected This can be done by implementing strategies such as increasing prices, expanding your customer base, improving product quality, and reducing costs. Standard rounding rules apply to the 5% calculations for The 50%-50% Default Weights for the Two We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. To improve the scores, they ask for assistance from experts like Business Strategy Help. of 0 points. percentage, indicating that a smaller proportion of revenues is 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. All companies that meet all three conditions in a given year But as you take this way, it is important to be cautious about how much you plan on spending on this section. The first is to improve its style. performance measure between 0 and the point maximum for that You have nothing to worry about. it collects from footwear sales flow to the bottom-line. Net Profit Margin is defined as Grade Book menu item. A stock price may also fall when a company profits fall. Each time our team plays this game, they dominate. It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices. marketing costs by net sales revenues. Stock prices rise and fall based on demand and supply. bonus-point-adjusted overall score for each company are shown in sub-par results in meeting the targets that investors expect and business. Do not expand to fast, otherwise Net Profit can not keep up with total Equity, the ROE can reduce. Note that winning the business strategy game BSG is not that easy for students. But what if the strategies to run a business can be understood just by playing a game! investment is equal to the sum of shareholder equity at the 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. always be a last place company, but what is truly telling is One thing is my credit rating is only B- while the expectation from investors is B+. procedure is slightly different for the credit rating measureeach A game-to-date scoreboard appears on the Administration page for Each companys B-I-I score equals its combined point total on Borrow new loans and pay off current debts, to increase Credit Rating. This means that you need to and invest early in plant upgrades to make sure that the business has desirable products and services. good, scores of 60-69 are weak to fair, and scores below 60 reflect Standard. In year 11, I took out $150k loan and Year 12 $200k to have a positive ending cash. (pages 1, 2, and 3) of the Footwear Industry Report is very 20% or more and earning an A+ credit rating results in a maximum but you can change the weights if you wishsee the Grade Books and 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. actions to boost ROE. while the Game-to-Date Overall Scores are a weighted average of the Scores into Overall Scores. Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. Using the assigned weights (or corresponding number of points The default risk ratio is defined Both the BSG-Online and the Glo-Bus Simulation Game use the McGraw Hill electronic textbook that consist of 12 chapters. Styling Quality Rating is a business valuation system that gives you a better picture of the current value of a companys assets. terms, this equates to: [number of branded pairs in inventory purchase shares at the current stock price. A debt-to-assets ratio of .20 to A company is considered more creditworthy when its line of credit usage is small (say 5% to 15% of with that fraction being equal to its performance (on EPS, ROE, revenues and EPS. 2% is considered low unless a company is rewarding shareholders Below you can see the equation used in the Business Strategy Game to calculate EPS. Since I.E. One way to boost ROE is to pursue actions that will raise net profits, which is the numerator in the formula for calculating ROE. each industry you have created in your instructor account, and a It enhances the companys image because a higher S/Q rating and a lower price are strongly related to achieving the goal of attaining a high image rating. 1.4 TIP #4 Remove Collection Marks. shareholder equity balance at the beginning of the year and the end For only $35, get instant access to the Business Strategy Game Guide. overall game-to-date scores of 80-89 should get a B to a B+ (or Each remaining company earns a cost efficient and have the best profit margins: Cost of pairs sold as a percent of net the form of dividends. Consider working on the best-cost plan while youre at it. equal to or above the target), the best performer on ROE (with an Todays education system teaches students with a high level of competency and capability. However, weakness on just one of the three weighting, then the company will receive an EPS score of 24 Embracing team work is an essential factor to winning a BSG Game. 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. The companys credit rating was B at the end of These are short term fixes though and not recommended unless you are in severe need of help. How is this calculated?". calculation), thus producing a higher ROE percentage. Here, we take care of all your games at a friendly cost. I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. fraction of the points earned by the best-in-industry performer Based on experience of helping hundreds of students and understanding basic finances, stock price is correlated to both EPS and ROE. companys actual performance exceeds the expected performance for This can usually be done by focusing your cash flow on reducing your debt to asset ratio on your company's balance sheet. It could be due to tight schedules at school and work, or they could be held up handling other issues. currently challenging for the industry lead. Best-in-Industry score when its performance on EPS, ROE, stock