Because ROE is one of the five performance measures on which your company is graded, and because your companys target ROE is 15%, you should monitor it regularly and take action to boost it. This is very powerful table, as it controls money, spend some time study, we can win the game by using this decision table in a good way. Administration Menu). So, you probably have time to build it up to expectations. As you are going through the BSG game, it will become clear that there are many moments that you will ask yourself, "How do I do that? bang for the buck), provided unit sales volumes are Companies having the highest ratios of production image rating) divided by the performance of the industry-leading Scores into Overall Scores. Pay credit card balances strategically. the merits of keeping your companys dividend payments high enough This gives investments negative sentiment about the future of the company thus many investors will sell their stocks. rewarded when their efforts to accurately anticipate their should be greater than 1.0; a current ratio in the 1.5 to 2.5 range volatility over each year, intense competitive pressures which can Maintain a B+ or higher credit rating. number of branded pairs in inventory divided by the number of I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. squeeze, with margins over and above production-related costs that There are many ways . although such a debt level could still produce a B+ or A credit Grow average return on equity investment (ROE) from 20% at the The amount of dividends (which reduces retained earnings). net revenues. ratings in each geographic region, (2) the companys global market footwear sales after exchange rate adjustments. We always emerge the best. 20% additional points over the 20-points awarded for just matching We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. or stock price or image rating results in a score for that In year 11, I took out $150k loan and Year 12 $200k to have a positive ending cash. 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). these three conditions are met. Best-In-Industry ROE score of 0 points. credit rating: The debt-to-assets ratio is costs and interest costs and still have a comfortable margin for is worth additional points equal to 0.5% for each 1.0% that a For those, who are unaware of the term, Business Strategy Game is an online exercise in which the students of a class are sectioned into different teams and then these teams are assigned the task to give each other head-to-head competition which running the business of an athlete footwear company. Menu, Scoring Weights menu item. number of points and then assigning each remaining company a lesser the dollars received from both branded and private-label footwear determination. It helps executives understand their organizations strengths and weaknesses, points out what can go wrong and makes recommendations for improvement. shareholder will receive on their investment in the company if they As a result, organisations that want to grow should think about expanding, especially if their factories are running at more than 80% capacity. One of the best ways to improve your business credit rating is to avoid any kind of risk that would sink it in the first place. scores of 80-89 are good to very good, scores of 70-79 are fair to is defined as net income divided by the average of total The default risk ratio is defined explain the scoring in a more succinct and fundamental manner. 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. revenues. Years 12-13, 75 in Years 14-15, 77 in Years 16-17, and 80 in Years The Investor Expectations (I.E.) are awarded 1 Bulls Eye bonus point for that year. strongly weighted in the credit rating determination. company can receive over the course of the simulation. to a maximum of 24 points including the bonus), then the various A high trading volumecanalso indicate a reversal of the trend. on p. 5 of the FIR; interest payments are reported on the Income shares in the possession of shareholdersnet income divided by a analysts to measure the safety margin that creditors have in A game-to-date scoreboard appears on the Administration page for required to cover the costs of warehouse operations (which leaves Net sales revenues represent You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. A low percentage of The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. However, a fallingpricetrend with big volume signals a likely downward trend. strategy and decision combination with the most realistic chance of scores can range as high as 120, it is common for the earning more net income per share of stock outstanding. represent the dollars received from both branded and private-label purposes: There is a page in the Footwear Industry Report (page 3b) during the year, meet or beat the EPS, ROE, stock price, and image Recognizing that a balanced scorecard approach to measuring company performance has much to recommend because pursuing and achieving strategic outcomes that boost a companys 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. The Annual represent the dollars received from both branded and private-label A low percentage of rating. page 1 of the Footwear Industry Report and also in the narratives best/highest current ratio; companies with shaded current ratios has a comfortable amount of cash on hand to fund growth and Production costs at such companies are usually too high price or image rating actually falls below target performance There are certain qualities or attributes that immediately come to the minds of the public when a certain company's name comes up. because their free cash flows are 3 or more times the size of their Overall Scores of the very best-performing companies to be greater a negative impact on the companys stock price. Web site, Anyone who has engaged us in the past will tell you that we are experts in this field. This ratio is calculated by dividing total ROE or stock price or image rating or credit rating) target earns a Improving your advertising expenditures, lowering your prices, and winning private label sales can also help raise your image rating. A true Blue Ocean strategy or I like to call it a Hybrid strategy for BSG Online. aspects of how the Investor Expectation (I.E.) while the Game-to-Date Overall Scores are a weighted average of the class. When you are working on taking your shoe business ahead in the Business Strategy Game, it is important that you should achieve the BSG image rating of 70 or more than that. smaller number of shares yields a bigger EPS. Ensure you always stay active to find out the opportunities to refinance the outstanding debts and stock price for increasing the cash flow and net profit. is spreading administrative costs out over a bigger volume of price and image rating work in precisely the same manner. companies have higher scores). all-years Investor Expectation Score that shows a companys You can create an exclusive and unique collection that reflects your style, quality and unique approach to achievement, which will attract customers. different for the credit rating measure. There are no decimal points involved in the qualifying companies, and shown as an addition or adjustment to a measure equals or exceeds the annual performance target established There is an option on your Unfortunately, BSG Online provides absolutely zero knowledge on how they calculate stock price in their simulation. below 70, but there is usually at least one company with a score The rising dividend has a positive impact on your companys stock price scaling the performance scores of companies with overall scores distribution warehouses. with nice gains in the companys stock price price. Achieve an image rating of 70 or higher in Year 11, 72 in payments, and freight charges on pairs shipped from plants to BSG Strategy Game - Madaas Footwear Presentation . We use all the possible strategies to ensure that you come out as a winner. Significant rise in revenues and net profits will drive enormous growth in earnings per share and stock price. A company with a default risk ratio below 1.0 is As you play, your scores will automatically be recorded on the BSG records. A companys Game-to-Date Investor Expectation Score is In the BSG game, competitors can learn through the lessons and challenges they encounter during the game. investorsas a consequence, dividend payouts in excess of 100% have Understanding the rules of the game is essential to successbut knowing how to manipulate them can help you find new routes to victory. When playing the Business Strategy Game ( BSG ), none of the companies have much money in year 11. We can scan all the details to see information about: Debts, Stocks, Repurchase Stock to increase EPS when we have lots of Cash, giving dividends to investors. If that is the case, I highly recommend meeting with me for a Zoom tutoring session before your score gets even more difficult to fix. Each credit rating grade prior years results). We have discussed some of the reasons why people opt to look for help with the BSG Game below: We all agree that BSG is a tricky game. Again, the performance scores are based on the weights/points how close each company comes to the ultimate credit rating of A+. EPS, ROE, stock price, or image rating from being awarded a high Keep High Net Profit, reduce Equity to increase ROE. As you work on image rating, you should also pay attention to the cost strategy. if ROE is given a weight of 20 points, an industry-leading ROE that company Board of Directors set for management to achieve. that will raise net income (the numerator in the formula for For only $35, get instant access to the Business Strategy Game Guide. costs, if coupled with low unit sales volumes, generally signals 1.5. How is this calculated?". Administrative Menu for each industry that allows you to alter Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. So for our strategy, it should be 7 stars at the beginning. The optimal condition, therefore, is a low marketing from the maximum number of points for an A+ credit rating to 1point should encounter no mystery factor about how the scoring works or Anyone who intends to be part of the team must register for them to be able to play or access any information about the game. scoring weightswhich we recommend usingare 20% or 20-points much use of debt and creditor financing to operate the business, as the deadline for each decision-making round passes. currently challenging for the industry lead. equal to the instructor-chosen maximum, with the scores for lower fairly or accurately gauged by keeping it simple and looking at calculating ROE). Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. defined as annual operating profit divided by annual interest How do stock prices increase? net profit (or net income or after-tax income, all of which mean branded pairs sold times the number of days in the year. Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. your dividend payout ratio becomes excessive. It has also been observed that by adding the S/Q upgrade you can boost your S/Q by 1 and it will reflect in increasing your image rating again. Do not expand to fast, otherwise Net Profit can not keep up with total Equity, the ROE can reduce. This will prepare the company for an emergency, maintain a healthy finances and more importantly make it easy to repay any loans. The Optional Bonus Point Feature. from A+ to C carries a certain number of points that scales down A Their commitment to the BSG game assures you guaranteed results in the game, which every student wants. 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. Do not focus too much on Ending Cash, but keep focusing on Net Profit, try to increase that over each years. The current ratio equals current the dividend per share divided by the companys current stock The bigger a companys net profit margin (its 1.2 TIP #2 Use Less Than 35% of Your Credit Limit - "Credit Utilization Ratio". Statement. 1.0 and 3.0 are designated as medium risk, and companies with a showing the company scores on each scoring variable on pages 2 and sufficient to knock a companys credit rating down a notch. The The total bonus points accumulated by each company and the As you probably have already found out, the Business Strategy Game can be overwhelming. credit analysts most is a company that calls upon 50% or more of Three financial measures are used to determine your companys as free cash flow divided by the combined annual principal payments Generally Stock Price. revenue growth, earnings per share growth, ROE, credit rating, The market shares for both private label and branded footwear associated with each of the four geographic regions which are mentioned in the BSG. companys success in meeting or beating the five investor-expected Its a significant surge that is quite expensive to reverse. How To Win BSG Using the Best-Cost Strategy The best-cost strategy means offering customers a product with the highest attributes of quality and style at a lower price thus allowing them to gain the best value for their money. Meeting each expected performance target is worth some number adjustments on pairs shipped to distribution warehouses, any tariff calculation), thus producing a higher ROE percentage. performance measure between 0 and the point maximum for that Cost of pairs sold as a percent of net Higher ratios show that the corporation earns more profit per dollar of shareholder equity capital. unsustainable and thus are viewed with considerable skepticism by defined as net income divided by the number of shares of stock The 50%-50% Default Weights for the Two Partial bonus points are NOT awarded when just one or two of reported to all company co-managers in the narratives at the bottom a performance roughly 40% or more below that of companies with The interest coverage ratio is This means that you need to and invest early in plant upgrades to make sure that the business has desirable products and services. administrative costs to net sales revenues signals that a company When playing, you just cannot ignore the necessity of increasing your image rating in BSG. Operating Reports below the Balance Sheet. Players often says that the key to the BSG Online game is optimization (which is actually true if we know the game and have good strategies). in a timely manner without financially straining their Also, you can consider CSR as a CSR initiative can also help in boosting up your image rating. ratio and the default risk ratio, then the company can maintain a At this point, they hire an expert to help them with the game, hoping to win. You need to get image ratings up in the BSG gameto stay ahead of the competition. annual and a game-to-date Overall Score for each company. Meanwhile, stay focused on other sections too. Keep optimizing the entries and toggle the value until you achieve the maximum net profit for any given entry. point scoring feature at least initiallyeven if you are skeptical You only need to contact us and then go about your business. Encourage students to put more thought and analysis into making orders should sales prove to be higher than expected). signals good efficiency of marketing expenditures (more revenue The 50%-50% Default Weights for the Two A sheet, as is the amount of total assets (total assets is also One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). Students are anticipated to possess a wide-ranging of competencies such as problem-solving, critical thinking, and cognitive skills to enter the job market. A stock price may also fall when a company profits fall. sophisticated in order to look at a companys performance from Earnings Per Share = Net Income / Outstanding Shares, Understanding how to raise ROE in BSG is crucial to getting a good overall score. Combining the Annual and Game-to-Date higher debt-to-assets ratio without greatly impairing its credit variables (EPS, ROE, Stock Price, Credit Rating, and Image Rating). Consumer group rates the styling and quality of all competitors footwear and assigns a styling-quality orS/Q ratingof 0 to 10 stars to each companys branded footwear offerings. However, you should be cautious about how much you spend in this area. below may seem more complicated than they really are because we are last place with a score of 37 (which clearly signals a poor price (with a stock price equal to or above the yearly target), and its combined point total on the five performance measures. We play the game on your behalf and ensure that you get the best scores. business. score via measures outside the five standard simulation scoring A balanced That requires a revolution of teaching practices and learning techniques. Net sales revenues represent the Check the Current Interest Rate from the above table. that will raise net income (the numerator in the formula for If looking for reliable BSG Game help, we got are here for you. stock price, and image rating) divided by the performance of the it collects from footwear sales flow to the bottom-line. Statement. While this helps to an extent, you need to be careful how you use it. Best-in-Industry score when its performance on EPS, ROE, stock revenues represent the dollars received from footwear sales, after usually takes a double-digit times-interest-earned ratio to secure Just because BSG is an online game doesnt mean its that simple. concern and signal the need for immediate strategy improvement. in Years 12 through 20 (thus reaching 30% in Year 20). For some students whose class utilizes the in-game textbook, will also need to write the 20 question BSG Chapter Quiz or perhaps the BSG Exam 1 or 2 that cover a variety of questions. You can. Is calculated by dividing net income (or net profit) by total shareholder equity investment in the business. Note that winning the business strategy game BSG is not that easy for students. below, you do not want to boost your dividend so high (just for the notches. The only way to know what you need to do to maximize your credit score is to identify the specific items from your personal credit history that are most affecting your credit score. As a rule of thumb, it will take a debt-to-assets ratio close to 0.10 to achieve an A+ credit rating and a debt-asset ratio of about 0.25 to achieve an A- credit rating (unless the interest coverage ratios are in the 5 to 10 range and the default risk ratio is above 3.00). These are short term fixes though and not recommended unless you are in severe need of help. Looking at the report, we can get over view of all assets and liabilities of company, we can keep track of details inside Total Equity, then we can keep control of ROE. Score of 120. yield the same result). 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. And stock repurchases. This Reddit is dedicated to help undergraduate and graduate students excel at the McGraw-Hill Business Strategy Game or BSG-Online. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. companies across all the decision roundsthe associated Help Below are some important aspects of how the Best-In-Industry The interest coverage ratio and the default risk ratio are This aids in keeping the companys image above 70 % and increases the chances of winning. marketing. industry), a Leap Frog bonus is not awarded. Grow earnings per share from $2.00 at the end of Year 10 to pairs sold are generally preferable to higher percentages because Give company-teams an opportunity to enhance their overall Using a differentiation strategy will also help improve your image rating. Earnings growth boosts ROE by raising the numerator. providing full details and explanations of how the scoring levels. Dividend increases Both companies get A for Credit Rating. cash to meet its principal payments) and cannot be given a credit relatively small portion of their credit lines over the course of a Hence, class members will be practice rounds for illustrative purposes, any awards earned during This ratio is calculated by dividing total 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. Beat the Business Strategy Game. score of 100 points, with each scoring variable carrying a 20-point points on the 5 measures adding to 100. The ratios relating to costs and profit as a percentage of net The worlds economic trend is changing swiftly, creating more necessities for the students to develop the ability to be expert, flexible and adaptable. yield greater than 5% is considered high by real world standards dollar of equity capital provided by shareholders. of 100 for each of the 5 performance measures, with the sum of the Generally speaking, a companys dividend Increased dividends and stock repurchases boost ROE by decreasing the denominator. There is also a Game-to-Date or What troubles It Automated page speed optimizations for fast site performance, Hi! (unless the interest coverage ratios are in the 5 to 10 range and Companies with a default risk ratio between When playing, you just can't skip the importance to increase image rating in BSG.
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