Increase Image rating ROE And Share Price In BSG Game
Image Rating:
Improving Image Rating:
When playing, you just cannot ignore the necessity of increasing your image rating in BSG. Consider working on the best-cost plan while you’re at it. It enhances the company’s image because a higher S/Q rating and a lower price are strongly related to achieving the goal of attaining a high image rating.
When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. This is because when the company is evenly represented throughout geographical locations, it improves the organization’s overall image. If there are other organisations that are using the best-cost method, aim to be the first to reach 10 stars.
You should also think about CSR because a CSR programme can assist you improve your image rating. However, if you go this route, you should be cautious about how much money you intend to spend on this section.
What if Image Rating went down!
If you notice that your image rating has declined, it is critical that you investigate boosting the S/Q of the shoes you are selling, or you can consider increasing it by engaging in corporate citizenship. It has also been discovered that by adding the S/Q upgrade, you can increase your S/Q by one, which will result in an increase in your image rating. Continue to focus on raising your company’s image rating above 70, and you will undoubtedly stay ahead. Meanwhile, pay attention to other aspects as well.
Share Price:
Profit is more important than market share for your success in the BSG. I recommend keeping a pen and paper nearby so you can record your net profit and compare it when you plug in different values. To begin, click the “Adjust Competitive Intensity” button in the top center of the page.
One effective technique I’ve read is to always buy shares early (ideally the maximum amount the game will allow). It’s a significant surge that is quite expensive to reverse. Worst-case scenario, you should be able to make a lot of money by buying early in the game when the price is low and buying again later in the game when the stock price (should be) considerably higher.
Return on equity:
Is calculated by dividing net income (or net profit) by total shareholder equity investment in the business. Higher ratios show that the corporation earns more profit per dollar of shareholder equity capital. Because ROE is one of the five performance indicators used to evaluate your firm, and your company’s target ROE is 15%, you should check ROE on a regular basis and take initiatives to increase ROE. One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). A second method of increasing ROE is to buy back stock, which reduces shareholders’ equity interest in the company (the denominator in the ROE calculation).
ROE is determined by three factors:
- The quantity of Return (earnings)
- The amount of dividends (which reduces retained earnings),
- And stock repurchases. Earnings growth boosts ROE by raising the numerator. Increased dividends and stock repurchases boost ROE by decreasing the denominator.
Improvements to EPS, ROE, and Stock Price in BSG Simulation:
Significant rise in revenues and net profits will drive enormous growth in earnings per share and stock price. As a result, organisations that want to grow should think about expanding, especially if their factories are running at more than 80% capacity. Given the company’s continued reasonable growth, stock repurchases are also a virtually quick technique of improving the stock price and EPS. Remarkable growth reduces the need for dividends, but as growth slows, continuous dividend payments, as well as steadily raising distributions by $0.05 year over year, will help sustain the company’s stock price. An increase in the stock offering, on the other hand, will allow the company to finance expansion at a lower cost than taking out a loan, but will dilute the EPS. Recognizing that a balanced scorecard approach to measuring company performance has much to recommend because pursuing and achieving strategic outcomes that boost a company’s competitiveness and strength in the marketplace puts it in a better position to improve its future financial performance is perhaps the most reliable way for a company to improve its financial performance over time.