Your Business strategy game performance has a significant impact on your overall grades as a student. However, although it is an online exercise, Business Strategy Game (BSG) is not straightforward.
In the Business Strategy Game, students are divided into groups and then assigned to run an athletic footwear company on four continents, including Europe Africa, Asia Pacific, and Latin America. The game aims to help students understand the essential strategies for running a successful business. As the students compete against each other, they familiarize themselves with real-world business issues and develop critical thinking skills.
You must have an in-depth knowledge of the game, and master specific skills and tricks to win BSG online game. To help you navigate the exercise successfully, we have put together a few Business strategy game tips and tricks.
However, in case you are feeling stuck or have any questions about the game, do not hesitate to contact our BSG Online Game Help. We have a team of expert players, who are highly knowledgeable and know the ins and outs of the game. They can help improve your skills to enable you to win BSG and stay ahead of other class members.
All you need to do is reach out to us. We are happy to help you improve your scores at an affordable rate.
Business Strategy Game Tips on Winning
The best way to increase your chances of winning BSG is to start the game right. We can help you achieve this. With our best practices training and expert advice, you can be sure to start BSG right while gaining a competitive advantage over other players in every decision round. Read on for more tips on how to win the Business Strategy Game.
1. Choose a Winning Strategy
To up your chances of winning BSG, begin by choosing a strategy and stick to it. There are various strategies you could follow, including Strong Advertising, Low Price, High Models, High Quality, and Large Capacity, to mention a few. Let’s look at the most popular winning strategies:
i) The mid-quality/high-model strategy game. This BSG online game strategy prioritizes mid-quality branded shoes, those with an S/Q rating of five to six stars, and pairs them with a high number of models, mostly 250-350 shoes.
ii) The high quality/low model. This popular strategy requires your team to combine branded shoes with an S/Q rating of eight to ten stars with a low number of models, often 50 pairs.
2. Watch Out for Price Elasticity
Once your team creates an accurate sales forecast, check to establish whether or not changing the internet market share prices and wholesale image rating impacts consumer demand. Note that the Business Strategy Online Simulation game does not base its consumer demand on individual values. Instead, consumer demand is influenced by price ranges.
3. Bid a Random Amount on Private Label and Celebrity Endorsements Bids
Did you know that BSG online game awards bids for private labels and celebrities up to the penny? For this reason, consider bidding random values to up your chances of winning a bid. For instance, bid $9.95 instead of $10.00 in a celebrity endorsement bid to win the bid.
4. Invest in More Stock in the Early Stages
The initial stages of the BSG online game simulation are the most critical, so you must maximize their use fully. One way to achieve this is by buying back stock to expand your financial benchmarks.
With that being said, ensure you buy back the stock during the early stages. Why? The stock prices are often pretty cheap at the beginning stages. You could even sign up for lender financing to enable you to buy more stock in the early stages.
5. Open Space in Latin America
An excellent long-term investment when playing BSG online is building space in Latin America. This is because Latin America is extremely cheap when it comes to labor costs. You could also save up to $10 in tariff expenses in LA. To gain economies of scale, consider opening up to 3000 new plants in Latin America.
6. Do Not Skip 3-Year Financial Projections
You will likely get penalized if you miss your 3-year financial projections in the Business Strategy Simulation Game. However, if you maintain your credit rating, your team will reap long-term benefits.
7. Invest in Celebrity and Wholesale Advertising
Get massive strides against your competition by leveraging celebrity and wholesale advertising. However, ensure you have enough branded footwear to supply to meet the increased consumer demand.
When bidding on celebrity advertising efforts, be careful not to overspend. The last thing you want is to spend more than your company can afford as this will lower your earnings per share and consequently, the net profit.
Be sure to further lock long-term celebrity contracts in the beginning stages of the game. The reason? Celebrity competition often intensifies in BSG online game simulation in the middle stage. This means buying celebrity contracts early instead of in the later stages of the game provides your company with a financial cushion.
8. Prioritize Teamwork
To win the business strategy simulation game, you and your team must be collaborative. You must learn how you and other members complement each other to build a high-quality strategy.
When choosing a BSG online strategy, be sure to consider the points of view of each team member and the company co-managers. You should also encourage diverse opinions backed by extensive research.
9. Invest in Long-term Initiatives
Help your team gain a competitive advantage by leveraging our Best practices and ethics training. Our BSG gamers have decades of experience with the game, so they can help you master the knowledge and skills required to win BSG.
With us, you are assured of not only improving your score. You will also take the lead in BSG and increase your net profit when you max out our Total Quality Management and Best Practices Training. Contact us today. We are ready to help you stay ahead of the competition.
How Company Performance Is Scored
While BSG is played online, winning the game is not easy. There are various factors that must be considered simultaneously to get the highest profits and take the lead against other class members. These factors include image rating, return on average equity investment, earnings per share, stock price, and credit rating, to mention a few.
Here are the five performance targets the board has set for management teams.
- Get an image rating of 70 and above
- Achieve a credit rating of B+ and above
- Maintain a 15% and above return on average equity investment (ROE) annually
- Grow your earnings per share by at least 7% through year 15 and at least 5% in the following years
- Get an average stock price gain of 7% through year 15 and at least 5% in the following years
How To Raise Your Image Rating in BSG Game
As mentioned earlier, companies must achieve an image rating of 70 or higher to win BSG. With that being said, various factors influence the image rating of your industry in the business strategy simulation game. They include the private label market share, patented styling/quality (SQ) rating in the four geographic regions, and corporate citizenship.
So, how can you raise your image rating in a BSG simulation online game? The following are three practical tips for increasing image rating in a business strategy simulation game.
a) Build the Best Cost Strategy
Be sure to also focus on building the best direct costs strategy as you work on the image rating of your industry. This is because a suitable cost strategy improves your company’s image. Lower cost pricing and increased styling/quality (S/Q) rating are directly linked to improved image rating.
b) Achieve at least 20% Market Share
If you and other class members have been grouped into five teams, each group should aim at achieving at least 20% market share in the four geographic regions. This ensures that business is evenly distributed across the four segments, which enhances the overall image of your company.
Bonus tip: Ensure your team is the first to get ten stars, especially when other teams have also devised the best cost strategy to stay ahead of the competition.
c) Be Careful with Your Spending
Ensure you and the company co-managers are strategic on how much you intend to invest. Avoid underspending or overspending.
Contact us for more tips and tricks on how to improve your image rating in BSG.
Business Strategy Game Tips for Raising Your Return On Equity (ROE)
ROE is a company’s net income or profit and is divided by the total shareholder’s equity in the industry. A company is said to have a high return on equity ratio when it is earning more profit than the company co-managers equity capital. To be safe, your company must maintain a 15% and above return on average equity investment (ROE) annually.
Let’s look at some recommendations for increasing your return on equity in a BSG simulation game.
a) Determine Ways to Increase Net Profit
Consider taking strategic actions to raise your company’s net profit and revenue. For instance, if your company operates at an 80% plant capacity, you could consider expanding its operations to get the highest profits.
When determining an industry’s average return on equity, the Net profit is often the numerator.
b) Repurchase Stock
An excellent strategy to increase earnings per share and raise the average return on equity is by repurchasing stock. When you repurchase shares of stock, you lower the stakeholder’s equity investment in the company. The shareholder’s equity investment is the denominator in return on equity calculation formulae.
How to Increase Credit Rating in BSG Online Game
One of the quickest ways to improve your overall score in the BSG simulation game is to improve your credit score. This can be achieved when you focus your company’s cash flow on lowering the debt-to-asset ratio on your balance sheets.
The credit rating is determined by three distinct metrics: Risk of default ratio, interest coverage ratio, and debt-to-asset ratio. Be sure to pay off debts or refinancing loans to reduce interest rates.
Decision Entries for the BSG
To play and be successful in the BSG game, company co-managers have to make specific decisions. Be sure to analyze the competition before optimizing values in all decision rounds to win BSG. Although optimizing values in each decision round is time-consuming, it is vital to winning the game. If done right, you will realize success in your industry and yield maximum profit.
Below are some decision entries in BSG and how you can optimize each round to improve your score and increase your chances of staying ahead of the competition. Let’s get started.
1. Corporate Citizenship
Although most people associate this decision round with a waste of money, it is critical to improving your industry’s image rating. There are various decisions you need to make on this page, including Ethics training/Enforcement, Workforce Diversity Program, energy efficient initiatives, and charitable contributions, to mention a few.
Pick strategies like Ethics training/enforcement to reduce the wastage of money. This is because such a strategy will likely improve image rating. For this decision round, optimize ethics training/enforcement to “all employees,” and click “yes” for the workforce diversity program then leave everything else as is. Lastly, click on “save changes”.
2. Sales Forecast
The sales forecast is one of the most critical decision screens for BSG simulation games and you will likely spend most of your time on this page. For this decision round, you are required to toggle the values and optimize each entry to get the highest possible profit margins.
On the company sales forecast decision entry, do not pay attention to any other values including market share percentage. Instead, prioritize net profit as it is crucial to your success in the business simulation game.
3. Plant Capacity
This decision entry deals with your company’s plants. Be sure to be strategic when setting up your industry’s plant capacity. To be safe, consider opening space onto existing plants. This allows you to improve your learning curve while the cost of high-quality shoes is significantly low.
With that being said, do not sell your plant as you may need it in the future. This is especially true if you plan on upgrading styling/quality for a high-quality strategy.
4. Branded Production
This decision report page requires you to set values for branded production capacity. This involves deciding the styling/quality rating for branded pairs manufactured and the compensation and training of your workers.
Be sure to prioritize maxing out your net profit in this decision entry. You should also establish how many branded pairs you intend to produce in every geographic region you have plants. Consider playing with numbers to determine a specific quantity. However, in case you manufacture a surplus number of pairs, reduce the quantity in the subsequent years.
You should also consider reducing employees’ wages to increase profits. Toggling the superior materials, TQM, and features can also enable you to arrive at the right S/Q rating. Sign up for our best practices and training to get the necessary skills and knowledge to arrive at the best S/Q rating.
5. Branded Distribution
On the branded distribution page, you are required to plug in the product’s allocation across each geographic region. Be sure to enter the sales volume across the regions and not your production volume on this page.
To boost efficiency, distribute all branded footwear to your Latin American warehouse and North America warehouse from your North American production plant. All other shoes to the Asia-Pacific warehouse and Europe-Africa warehouse should be shipped from the Asia-Pacific production plant.
With that being said, watch out for the rejected shoe rates to ensure the total pairs available and the shipped shoes add up correctly. You should also label and type the number of shoes you want to distribute accurately to ship them to and from the right plant.
6. Wholesale Sales
For the wholesale marketing decision page, you are required to optimize values for the wholesale prices, advertising budget, rebate offer, the number of models available, and the styling/quality rating, to mention a few.
To optimize this page, begin with the values you are certain of. For instance, if you intend to employ the high-quality, low-model strategy, you could begin with the branded footwear with an S/Q rating of 7 and 50 available models. Next, set a delivery time of three weeks.
Once you have plugged in the values you are sure of, play around with retailer support, rebate offer, wholesale price, celebrity appeal, and advertising values to optimize your net profit.
7. Internet Sales
This decision page requires you to plug in the values for the number of models offered and the retail prices. You should also establish whether to offer free shipping on this decision round.
In most cases, free shipping does not raise your net profit, so you should always leave it at “NO.” However, if upon playing around with numbers you notice an increase in the profit margins, especially when you set free shipping to “YES,” consider leaving it at ” YES.”
8. Private Label Market
The Private label is one of the most significant decision entries, especially when employing the high-quality, low-model BSG strategy. This is because it enables you to offer the most affordable footwear with minimal investment into new networks.
Be sure to incorporate excess production capacity into your private label market. Next, determine the regions you want to ship your private label footwear. To do this, check the profit margin over direct costs.
Once you choose the geographic regions you want to distribute your footwear, plug in the values for enhanced S/Q features and superior materials usage. Again, play around with numbers to determine a combination that offers the highest profits and the least average production cost value.
Other decision screens in BSG include:
- Celebrity endorsements
- Finance and cashflow
Get in Touch With Us Today!
Taking the lead in the BSG simulation exercise requires in-depth knowledge of the game. You also have to hone your skills to maximize profits. Take the first step to improve your score by familiarizing yourself with the above tricks and tips.
However, if you still feel stuck, seek our BSG Online Game Help. Our team of experts will provide you with BSG online tutoring and ethics training at an affordable price to enable you to navigate the game on your own. We can also play the game on your behalf to allow you to focus on your other academic commitments.
You only need to contact us today. We are happy to help!
Frequently Asked Questions
1. How do you win the business strategy game?
An excellent way to take the lead, especially when playing against five teams is ensuring you have a 20% market share in the four geographic regions specified by BSG. This enables your company to be evenly represented across the segments, boosting its overall image. You should also pursue the best cost strategy and ensure your company gets the first ten stars to win BSG
Other effective ways to win the BSG simulation online game include picking a high-quality strategy, building space in Latin America, retaining your retailer support, keeping an eye on price elasticity, and bidding for long-term contract celebrities in the early stage.
2. How to do well in the business simulation game?
To succeed in the BSG simulation game, be sure to familiarize yourself with the impact of marketing and advertising, logistics and coordination, finance, and research and development.
3. What does the business strategy game teach you?
Through BSG simulation, you acquire new business management skills and knowledge, learn by doing, enhance competency for planning for business operations, and improve problem-solving, decision-making, and critical thinking skills.
4. How can I improve my BSG Credit Rating?
An effective strategy to improve your overall score and maximize profit in a BSG simulation game is by boosting your credit score. This can be done by focusing your company’s cash flow on lowering the debt-to-asset ratio on your balance sheets.
5. How do you increase earnings per share in the business strategy game?
Raise the earnings per share in your industry by repurchasing shares of stock. Repurchasing stock is directly linked to lowering the shareholder’s equity in the company. When the net income or net profit is divided by a reduced number of shareholders’ equity in the company, it translates into a higher earning per share.
6. What is a private label in BSG?
Private labeling in BSG involves applying your brand to products made by other companies. This enables your company to outsource its various aspects of the supply chain to other industries. Such aspects include manufacturing, shipping, importing, and sourcing of materials.
Through building your own private label market, you get access to the entire supply chain without investing additional cash into creating your new networks
7. What are the skills in the BSG simulation game?
One of the most significant reasons to engage in the BSG online simulation game is that it offers learners a risk-free learning environment, experimentation, immersive learning, and real-world business experiences. This equips relevant business skills, including decision-making skills, knowledge retention and transfer, communication and collaboration, problem-solving skills, and critical thinking skills, to mention a few.