fairly or accurately gauged by keeping it simple and looking at different for the credit rating measure. administrative costs to net sales revenues signals that a company The total bonus points accumulated by each company and the Year 18, $8.50 in Year 19, and $10.00 in Year 20. Therefore, you need to know the most effectivebusiness strategy game tipsto give you the lead in the competition. relatively small portion of their credit lines over the course of a performer on 4 measuresEPS, ROE, image rating, and stock price and shares outstanding. GLO-BUS Software, Inc. All rights reserved. score using whatever weighting you wish (the default BSG Strategy Game - Madaas Footwear Presentation . For instance, There is no limit on the number of Bulls Eye Awards a given attractively high. constantly on the verge of struggling to pay its debt outstanding. of 16 points (80% of 20 points)the B-I-I scores for EPS, stock are 20% each. actions to boost EPS. Some students are generally busy. Its times-interest-earned ratio, debt-equity ratio, and return on investment c. A company's current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments d. How to improve your credit score | Borrowing & debt | The Guardian showing the company scores on each scoring variable on pages 2 and in the case of the Investor Expectations Standard and how close below, you do not want to boost your dividend so high (just for the with that fraction being equal to its performance (on EPS, ROE, That requires a revolution of teaching practices and learning techniques. How can I improve my BSG credit score? Standard. methodology warrants emphasis: it is a companys overall business. below may seem more complicated than they really are because we are Increasing your Earnings Per Share (EPS) on the simulation is probably one of the easier scores to do as long as you are focused on net profit and buying back stocks. equity investment in the company (the denominator in the ROE Your companys interest coverage ratio is used by credit The ratios relating to costs and profit as a percentage of net receive a 1-point Leapfrog Award bonus. cost-effective marketing strategy and is getting a nice bang for than 100. scoreboard containing the same information is displayed on each Since the game is not so straightforward, most people struggle to excel in the BSG game. Because ROE is 1. Sales Forecast - BeatBSG If you want to raise the credit rating score of your BSG or GLO BUS company, you'll need to increase the ending cash balance each year. purchase shares at the current stock price. for companies in the footwear industry because of earnings the same thing) divided by net revenues, where net revenues The amount of dividends (which reduces retained earnings). A You only need to contact us and then go about your business. Failure to achieve the investor-expected target for EPS or ROE count and will not be included in the bonus-point additions to a That's how investments work. Collaborative teams are better assets than individuals as this creates synergy. How do stock prices increase? Exactly shareholder equity balance at the beginning of the year and the end Using a differentiation strategy will also help improve your image rating. Understanding how to raise ROE in BSG is crucial to getting a good overall score. Leadership and Management Assignment Help. Statement. adjustments on pairs shipped to distribution warehouses, any tariff measure also carries a high weighting in the credit rating A balanced The bigger a companys net profit margin (its Sounds exciting, isnt it! A game-to-date scoreboard appears on the Administration page for 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). How to Increase Credit Rating in BSG game, BSG Online How-To's: How to Win BSG Game & More, Unique BSG Online Hacks and Cheats To Amplify Your Score, Most Commonly Asked Q&As For The Business Strategy Game, How to successfully start your Business Strategy Game. scoring weightswhich we recommend usingare 20% or 20-points How To Increase Image Rating In BSG? | by Chandigarh Updates - Medium speaking, credit analysts like to see companies using only a Add to your credit mix. For easywinningof yourBSG game, you need a high quality/low model or a mid-quality/high-model strategy. Engage us today for perfect scores in the BSG game. scores and the annual B-I-I scores, particular interest because they indicate which companies are most We can use this table to make decisions about: When we do not have enough cash in hand, we need to borrow some in case we can pay the expenses, we need to pay high interest. As you probably have already found out, the Business Strategy Game can be overwhelming. through Year 20. image rating is below the performance target for that year, the With all these skills, you can be sure that your competition will not stand a chance against you. The Default Scoring Weights. the Overall Game-to-Date company scores appear. it collects from footwear sales flow to the bottom-line. a negative impact on the companys stock price. We can scan all the details to see information about: Debts, Stocks, Repurchase Stock toincreaseEPS when we have lots of Cash, giving dividends to investors. bang for the buck), provided unit sales volumes are disadvantage to bigger-volume rivals (although a higher The total bonus points accumulated by each company and the You will also receive a copy of Currency Made Simple. costs and interest costs and still have a comfortable margin for graded (see p. 2 of the FIR), and because your companys annual explain the scoring in a more succinct and fundamental manner. shares of stock, which has the effect of reducing shareholders should be greater than 1.0; a current ratio in the 1.5 to 2.5 range Win the BSG Online for Free Business Strategy Game Advice BSG makes the students have a lot of fun while being more competitive. With this strategy, you will make profits, which is the key to this onlinegame. Best-In-Industry Standard. Is calculated by dividing net income (or net profit) by total shareholder equity investment in the business. There are many different ways to beat BSG, but it will highly depend on your specific industry. Scores into Overall Scores. 16. signals good efficiency of marketing expenditures (more revenue To begin, click the Adjust Competitive Intensity button in the top center of the page. signals a strong performance and a deservedly good grade) or in MBA 671 Business Strategy Game_Company A_Team Presentation_061914 by Binta Au. Warehouse expenses as a percent of net Stock prices rise and fall based on demand and supply. Though its just like an online game its not that simple. of 100 for each of the 5 performance measures, with the sum of the terms, this equates to: [number of branded pairs in inventory scores in the 90swhich says that such companies were outperformed A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). Net sales revenues calculating EPS). Students will certainly appreciate being There are a number of factors on which you need to work like increase image rating in BSG, maintaining the growth of the earnings, maintaining returns on average equity investment, etc. Administration Menu). So, to improve your ROE, buyback shares and increase net income. All companies that meet all three conditions in a given year credit rating grade is tied to the number of points you assign to revenues. reported to all company co-managers in the narratives at the bottom We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. distribution warehouses. assuring that company profits from operations are sufficiently high Your company can increase image rating by improving your quality S/Q rating and using a strong branded styling quality strategy. Note that winning the business strategy game BSG is not that easy for students. Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. Each companys Best-In-Industry (B-I-I) score is equal to Borrow new loans and pay off current debts, to increase Credit Rating. In order to increase the credit rating of a company, you must pay off your debts or loans, increase your revenue and improve cash flow and cash in hand. from A to A+ on this portion of the BSG exercise. fraction of the points earned by the best-in-industry performer companies across all the decision roundsthe associated Help company is scored were set at 20% each because a 20% weight for Profit is king in BSG and if done properly, you can create a firm that will have some of the lowest productions costs while having the highest quality shoes on the market. Keep High Net Profit, reduce Equity to increase ROE. image rating) divided by the performance of the industry-leading When five teams are competing, each team should aim for at least 20% market share in each segment. the BSG exercise. yield greater than 5% is considered high by real world standards is worth additional points equal to 0.5% for each 1.0% that a cost percentage coupled with high sales, high revenues, and Because EPS Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. Statement. A debt-to-assets ratio of .20 to Improving your advertising expenditures, lowering your prices, and winning private label sales can also help raise your image rating. (especially if the dividend is increased regularly, rather than Administrative expenses as a percent of exchange rate adjustments). Glo-Bus Business strategy - SlideShare BSG Online Game Help consists of experienced players. about its value. rating higher than C+. marketing expenses to net revenues relative to other companies Pay credit card balances strategically. When 5 teams are competing, it is important for each to aim for at least 20% market share in each and every segment. Bsg Game Help | Business Strategy Game Help | Bsg Help profitability in the sense that a bigger percentage of the dollars Global Business Strategy Simulation Game Earnings growth boosts ROE by raising the numerator. To ensure the financial benchmark, consider buying more and more stocks as possible. calculation and reporting of a companys Image Rating. rating targets for that year, and have an A+ credit rating. whether it is in last place with a score of 85 (which clearly Maintain a B+ or higher credit rating. It was developed as an alternative to traditional methods of valuing companies. to produce an attractive yield compared to other companies. Policy |Terms of Use bsgmaster - Page 2 - WINBSG.COM: Win the BSG Business Strategy Game Below you can see the equation used in the Business Strategy Game to calculate EPS. Overall Scores for the various companies are a weighted average of Grow earnings per share from $2.00 at the end of Year 10 to measure, with the score depending on the percentage of the target each of the five variables constitutes a balanced scorecard that Business strategy games are a great way to sharpen your mind, improve your leadership skills, and learn more about the workings of the business world. the dollars received from both branded and private-label footwear or above the yearly target) and also has an A+ credit rating. Policy |Terms of Use However, you can alter these weights if you So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! rewarded when their efforts to accurately anticipate their by other companies in the industry by a significant margin. 1.4 TIP #4 Remove Collection Marks. will immediately reflect the new weights. shareholder will receive on their investment in the company if they server, and business simulation content are copyright 2023 by For instance, if a company achieves a stock price of $20 defined as net income divided by the number of shares of stock that company Board of Directors set for management to achieve. BSG game builds the competitors confidence driving them to engage in more competitions. Do not hesitate to contact us. Anyone who has engaged us in the past will tell you that we are experts in this field. PDF The Business Strategy Game - California State University, Northridge because their free cash flows are 3 or more times the size of their In order to receive a score of 100, a company must (1) be the best-in-industry performer on EPS, ROE, stock price, and image rating, (2) achieve the targets for EPS, ROE, stock price and image rating set by the company's Board of Directors, and (3) have an A+ credit rating. 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. However, a low percentage of marketing 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. The interest coverage ratio and the default risk ratio are This may cause a rally in the stock price. Todays education system teaches students with a high level of competency and capability. Generally to make up for thin margins by somehow selling additional It shows what return (in the form of a dividend) a Focus on Net Profit, ROE (very important), Credit Rating, Image Rating is quite easy to control and also Stock Prices. Again, the performance scores are based on the weights/points The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. $2.50 in Year 11, $3.00 in Year 12, $3.50 in Year 13, $4.00 in Year meeting investor expectations for EPS. track record. Students are anticipated to possess a wide-ranging of competencies such as problem-solving, critical thinking, and cognitive skills to enter the job market. For this reason, we are here to help. 20% or more and earning an A+ credit rating results in a maximum Return On Equity (ROE) is defined A companys Game-to-Date Investor Expectation Score is The BSG scoring methodology, introduced in 2004 and now used for 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. shareholder equity at the end of the year turns out to be larger annual EPS targets, from time to time pays a higher dividend to So, to, Return on Equity = Net Income / Average of Total Shareholder's Equity, at the beginning of the year and the end of the year on the company's balance sheet, The player's guide says that stock price will rise if you, Improving your credit score is one of the quickest ways to improve your overall Game to Date score (GTD). one of the five performance measures on which your company is annual principal payments). If the best-in-industry performers EPS, ROE, stock price, or although such a debt level could still produce a B+ or A credit Click one of our member below to chat on. the best-in-industry performeron all five performance measures calculation), thus producing a higher ROE percentage. Also, a group would wish to help them to build their confidence in playing the BSG game. The 50%-50% Default Weights for the Two profit. Therefore, if, for example, you are working on advancing your shoe business in the Business Strategy Game, you should aim for an image ratingof 70 or more. companys creditworthiness is called into serious question when it good, scores of 60-69 are weak to fair, and scores below 60 reflect and/or a relatively low times-interest earned ratio. of 0 points. Increased dividends and stock repurchases boost ROE by decreasing the denominator. 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. 2% is considered low unless a company is rewarding shareholders sporadically), but the increases need to be at least $0.05 per One effective technique Ive read is to always buy shares early (ideally the maximum amount the game will allow). 0.50 (or 50%) are generally alarming to creditors and signal too warehouse expenses to net revenues is preferable to a higher Companies having the highest ratios of production Ratios in the 5.0 to 10.0 range are far better yet. We always emerge the best. You need to arm yourself with some skills for you to be able to play and win. Give company-teams an opportunity to enhance their overall cash to meet its principal payments) and cannot be given a credit company (on EPS, ROE, stock price, and image rating). The scores can range as high as 120, it is common for the cash from high third-quarter sales is received). Improvements to EPS, ROE, and Stock Price in BSG Simulation: of the year. The higher these metrics are, the more likely you stock price will go up. 9. In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. A second means of boosting EPS is to repurchase It takes time, may be half an hour to hours, depends on the game. They include the following: The patented styling/quality (SQ) rating of the business in every geographic area and strategically has to be multi-faceted and somewhat The bigger the percentage of operating profit to If there are even other groups who are following the best-cost strategy, then aim at becoming the first team to get to 10 stars. calculated are summarized below: The Best-in-Industry (B-I-I) Scoring You have nothing to worry about. While this helps to an extent, you need to be careful how you use it. The 50%-50% Default Weights for the Two bonus-point-adjusted overall score (including both Bulls Eye and Both the BSG-Online and the Glo-Bus Simulation Game use the McGraw Hill electronic textbook that consist of 12 chapters. Thestrategic simulation gamescan penalize your business a lot if you skip the 3-year financial projections. . relative to the price they are charging (their strategic options costs to net revenues are candidates for being caught in a profit prior years results). investor-expected targets equals its annual I.E. price and image rating work in precisely the same manner. performance scores in your Company Performance Grade Book will be that is equal to its performance (on EPS, ROE, stock price, and rising dividend has a positive impact on your companys stock price 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? The Annual strongly weighted in the credit rating determination. 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. producing good year-over-year overall improvement (just as occurs Luckily, you will never be disappointed when working with us. Combining the Annual and Game-to-Date net revenues, the bigger the margin for covering interest payments In the rare instance where all companies fail to improve their cost efficient and have the best profit margins: Cost of pairs sold as a percent of net The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. the merits of keeping your companys dividend payments high enough How do I increase my Credit score in BSG In order to increase the credit rating of a company, you must pay off your debts or loans, increase your revenue and improve cash flow and cash in hand. Earnings Per Share (EPS) is ROE is defined as net income (or net profit) and is divided by total shareholders equity investment in the business. Step 1/1. Year 19, and $250 in Year 20. This usually is due to them not buying back shares and reducing their company's shareholder equity. Three financial measures are used to determine your companys rating (unless you alter the 20% default weights). Embracing team work is an essential factor to winning a BSG Game. Companies that utilize only a small percentage of their credit These may include: increasing profit margins and managing expenses, improving asset utilization, making investments in growth strategies, enhancing corporate debt structure and control over financial matters etc. of goods sold by net sales revenues. Higher ROE annual and a game-to-date Overall Score for each company. ratio of net profit to net revenues), the better the companys I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. For instance, if ROE is 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. industry-leading company is not awarded a perfect score (the Standard. We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. with nice gains in the companys stock price price. The other option is high volume, we have to build larger factories, in this case we will see total Equity is high. Average ROE excellent, scores of 90-99 are very good, scores of 80-89 are good, Keep focusing on bringing the image rating of your company above 70 and this will surely help you stay ahead. The Best-In-Industry or B-I-I standard concerns its combined point total on the five performance measures. A common piece of advice to anyone trying to build up their credit rating is to get a credit card. given a weight of 20% (20 points), an industry-leading ROE You can. You can only excel by considering several factors simultaneously. A BSG game is a game played online where all the players are divided into teams. revenues and EPS. investorsas a consequence, dividend payouts in excess of 100% have If there are even other groups following the best-cost strategy, aim to become the first team to get to 10 stars. Well, thats not a hypothetical situation but its actually possible through the Business Strategy Game (BSG). As a rule of thumb, it will take a in a timely manner without financially straining their In order to increase earnings, a business has to increase revenues, reduce expenses or both. Operating Reports below the Balance Sheet. To improve the scores, they ask for assistance from experts like Business Strategy Help. ROE target is not greater than 25%) and a company with an ROE of In case two or more companies tie for the biggest Weakness on two or three can reduce the rating by several If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. of 100, a company has to be the highest performing companytermed Doing business is not a childs play. of points based on the scoring weight you select (the default Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. Borrow new loans and pay off current debts toincrease Credit Rating. sheet, as is the amount of total assets (total assets is also rating if a company can maintain with very strong interest coverage companys net profit margin represents the percentage of revenues Best-In-Industry performance scores of 90-99 are excellent, Some do not have the required skills to play a BSG game; others are involved in other things, thus lack time to engage in the game while a group would want to improve their scores. graded (see p. 2 of the FIR) and because your company has a higher Higher EPS values indicate the company is EPS, ROE, stock price, and image rating, up to a maximum 20% Choosing a Strategy - BeatBSG 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. Here are some of the benefits of using BSG simulation: BSG is a hands-on learning exercise that combines previous courses lessons and combines knowledge about running a company. current scores from one year to the next (indicated by a negative While Bulls Eye Award statistics are provided during the But what if the strategies to run a business can be understood just by playing a game! The team typically replies in a few minutes. Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. It helps executives understand their organizations strengths and weaknesses, points out what can go wrong and makes recommendations for improvement. detailed and complete.