BSG Game Winning Strategies and Expert Tips To Improve Your Score
What business strategy can I apply to win the BSG online game?
There’s no sole BSG game-winning strategy!
BSG simulation entails overseeing and driving initiatives in different departments, including finance, R&D, marketing, production, and human resource. Any time you apply one strategy, your concentration is limited to the few areas it addresses.
As a result, you may experience improved production capacity and poor financial performance or contrariwise. This means you will have disproportioned results on your scoreboard, which is unhealthy for your company. Our piece takes you through different BSG game-winning strategies and expert tips to improve our simulation score.
The BSG Game Winning Strategies
What is a strategy?
A strategy is a process of setting a company’s goals, creating plans, and allocating resources to implement them. For instance, the BSG companies’ goals could be increasing profits or private label earnings. To accomplish these goals, you can decide to apply plans of action like advertising and using superior materials to produce quality footwear.
Here are the BSG game-winning strategies
1. High S/Q or High-Quality Strategy
The high S/Q strategy or high-quality strategy is a profitable plan to execute from round 1 of the BSG simulation. It gives you a competitive advantage since your branded shoes meet the market’s demand.
However, you should implement the strategy accordingly to produce maximum results. This plan also works best when there are no copycats who are just following suit. If you’re the first team do a high-model strategy, your company will be the industry leader.
2. Private Label
The private label is among the top winning strategies that students implement during the online exercise.
Why private label?
Private label allows you to make higher profits and outbid your competitors, taking their earnings. Note that for this strategy to succeed, you must build enough production capacity and sell more or less to the wholesale or internet markets.
3. Long-Term Initiatives
The business strategy game is a long-term exercise that requires planning for the advanced rounds. Hence, it’s important to have a long-term strategy that improves your five performance targets to obtain a good score.
Some of the key long-term plans of action that will help your company perform exceptionally is the Total quality management and best practices training. While they might not yield immediate results, these two will help your company realize massive benefits after a few rounds. For example, increase EPS, revenues, and average equity investment.
When starting the simulation, you will have two centers of production-North America and Asia Pacific. After the first year, you should add other centers in Europe Africa, and Latin America regions. This will allow your company to enjoy cheap labor costs and lower tariff rates.
4. Advertising and Celebrity Endorsements
Marketing is crucial in the BSG online game. It keeps you ahead of the competition and increases your earnings, upsurging your profits. Nevertheless, you should regulate the amount of money you allocate to celebrity endorsement, as this BSG option does not have a clear measurement to show results.
Wholesale advertising can also help you gain more points, beating your rivals. To push the results higher, ensure your company has enough supply to meet the new demand you will attract from the different markets.
Choosing the Best Strategy for Your BSG Online Game
Every team will approach the competition differently. Some will apply the high-quality strategy, and others favor the private label. To ensure you’re not leaving any element behind, you should consider the following factors during the decision-making and implementation processes
1. Cost: Low-Cost Strategy
Does your strategy offer the lowest cost with maximum results?
Does it cut your production and labor costs?
Winning the business strategy game requires minimizing operating costs and maximizing profits. For instance, your team should test the lowest marketing cost combination that produces the highest sales for the company. This will help you cut down on your advertising cost instead of investing a lot of money while yielding low profits.
2. Capacity Building
Whether you decide to implement a High-quality strategy or a long-term initiative plan, you must ensure your production capacity meets your demand. If not, you may face challenges like stock out or less profits.
Suppose you invest a lot of resources towards a strategy leaving you with inadequate funds to expand your capacity; you should think of another plan. Alternatively, you can consider combining two or more strategies that complement each other. This way, your company will realize maximum benefits in all aspects with zero effects on your capacity.
Your sales are vital in measuring your company’s performance since they affect your profit margin and revenues. Now that you know this, it’s tempting to spend a lot of funds on marketing to improve and increase product demand.
However, you should find strategies that do not strain your firm financially. For instance, you can compete using the offensive strategy – implementing what other companies are not applying. This may demand concentrating on elements like the private label when the material’s price is low, diverting the market to you.
4. The 5 Performance Targets
Your BSG win is tied to the five performance targets, including
- Earnings Per Share or EPS
- Return on Equity ratio or ROE
- Image rating
- Credit rating
- Stock price
The board of directors requires you to achieve at least an EPS growth of 7% in the year 15 and 5% after that. The target ROE ratio is 15% or above yearly. You can increase your ROE by boosting your net income or profits.
Credit rating shows your credit risk to investors, shareholders, and financial institutions. You should maintain a B+ credit rating or higher in the business strategy game.
Image rating is a performance target that determines your BSG game score. Typically, it’s influenced by the S/Q rating, the CSR, and the private label and branded shoe market shares. The business strategy game scoring requires you to maintain an image rating of 70 or above.
How do the stock prices affect my performance in the business strategy game?
The default weight on the stock price is 20%, similar to the other four targets. Hence, not reaching the required stock prices may lower your BSG points and ultimately, the score. So, ensure you achieve a 7% stock price in the 15th year and 5% afterward.
Your competitors’ actions can be significant informers to your team. Consider this; if all the teams focus on low-price branded pairs production, the market will experience a shortage of high-quality footwear. As a result, the superior materials demand will decrease, lowering their cost to less than or equal to the average price.
This is an opportunity to produce high-quality and stylish footwear at a minimum cost which your company can leverage to improve its image rating and earnings. At this point, your company will become an industry leader in private-label footwear, reaping massive profits.
If you notice a common move amongst your competitors that may affect your company, don’t hesitate to ask for professional help. Your BSG game experts can help you identify gaps in the competitors’ strategies and provide guidance to win!
Tips To Improve Your Business Strategy Game Score
The business strategy game positions all students to operate in footwear, a highly competitive industry. Here are expert tips to help you win BSG
Tip 1. Produce Cheaper Shoes
Your company can gain a competitive advantage through pricing. To accomplish this, you should minimize your production cost and maximize the number of shoes you manufacture.
This will allow you to sell them below the average price, giving you a pricing advantage. As a result, you will attract a bigger market share in the four regions, selling more.
Tip 2. Teamwork
Choosing BSG game-winning strategies for your simulation without teamwork exposes your company to failure. Reason? Typically, when students develop plans like Total quality management or best practices training without effective implementation, they get poor results.
Fortunately, you can avoid this by collaborating on each round. Allow every member to air their opinions and why they think you should follow a certain action plan. Then ensure their information is backed by reliable research before applying any of the suggestions.
Tips 3. Focus on Latin America
In the first round, all students are limited to two geographical regions; North America and Asia. However, in the next years, they can build production centers in Latin America and Europe Africa.
The Latin American market offers better conditions like lower tariffs and cheap labor costs. Hence, you should take advantage of these and save $10 in tariffs for every pair of shoes. You should also build at least 3000 capacity to enjoy economies of scale.
Tip 4. Avoid this BSG Game Mistakes
BSG game-winning strategies can be effective; however, when you don’t watch out for these mistakes, you may not reach the specific targets
- Heavy Investment in Celebrity Bidding and Endorsements: Celebrity advertising can increase sales. But, BSG does not have a clear measure of its benefits. So, you should be careful not to spend exaggerated funds here.
- Overlooking the Report Page: Once you encounter numerous details in the simulation, you might be tempted to overlook essential instructions, missing out on important information. It’s significant you study the instructional materials, such as the report page, to ensure you start on the right foot.
- Late Upgrades: Want to enjoy great benefits from plant upgrades? Avoid investing in plant upgrades in the advanced rounds. Reason? Upgrading your production plants in the late stages leaves you limited time to break even.
- Lowering Internet Price: Lowering your Internet shoe prices seems like a great way to attract more customers. However, it can lead to wholesale segment cannibalization. Remember, the gap between the internet and wholesale price is directly related to the number of your retail orders.
- Poor Execution: So, you’ve found a winning strategy, but after round 3, you decide to drop it since there are no results. When you compete against your BSG rivals and fail to implement a winning strategy accordingly, you’re bound to fail. Students will often exit the plan. Nevertheless, you should determine the cause of the failure to help you execute better.
BSG Game Winning Strategies Help
It’s never easy for students to identify the right combination of BSG game winning strategies to apply. And if it is your first time, you might be overwhelmed by the numerous choices and advice online. Fortunately, you can turn to expert support centers like the BSG Game team.
Our company allows you to choose from the following service options
1. Expert Guidance/Advice
Not sure whether to implement the high-quality strategy or the low-cost plan? Your BSG experts can provide the necessary guidance to help you develop the right plan of action or a combination of strategies to meet your simulation needs. Moreover, we have a comprehensive BSG guide that allows our student clients to maneuver through the different stages of the game.
2. BSG Tutoring
If it’s your first time encountering the business strategy game simulation, you’re perhaps stuck comprehending all the elements involved. For instance, the scoring system, TQM, and the five performance targets, among other details.
You don’t have to feel out of control even as a novice BSG member; our BSG support team is here to provide professional assistance. We help you master the different requirements of the simulation to engage all the rounds seamlessly.
3. BSG Simulation
So, you want to be in the lead in your BSG competition?
Don’t get stuck choosing or implementing a strategy; your support team is here to get you to the end. All you need to do is contact your friendly Business strategy game expert to provide customized assistance. Whether you need practice or competition round support, we are here to help you.
4. BSG Guide
From the first round to the last, operating companies on a global scale can be a hefty task. However, with the right industry mastery, you can apply different tips to ensure your company keeps realizing its goals. And anytime you experience challenges, you can refer to expert BSG guide materials. They will help you familiarize and prepare yourself for every phase of the game.
What BSG Game Winning Strategies Should You Employ in Your Next Simulation Round?
Not sure which BSG strategy will produce great results in the next simulation round? Your BSG support can help you find the right plan of action. All you need to do is connect with the expert of your choice and collaborate with them to head the competition.