Your team members will realize that the final decision usually involves compromising between what is needed for the overall company and personal preferences. Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. And I would not build another plant, rather increase capacity in the plants that you already built. In year 18, end of the game, G Company has more than 150 million Cash in hand, so we pay old loans to get A+ Credit Rating. Thank you so much for your suggestion! Do not worry about the Plant Capacity / Upgrades page. This can have a positive impact on energy levels and your overall health. This is probably the most important decision entry page in the game and you will be spending most of your time here. Strategies, decision screens, reports and tests. The same accounts for your Change in Annual Base Wages and Incentive Pay values. Your numbers might be a little bit off due to the reject rates. This is the key to affect our strategy in the next five years. 1. We can check that before making decisions. So, play around and find the best combination for your given S/Q rating that yields the highest net profit. 24 Pros & Cons Of Starting A Distribution Warehouse Business (2023) In the Private-Label Production field, use all your remaining available capacity, even overtime. But it is definitely worth it. When I played the game, I barely looked at what my competitors were doing. Id also like to point out that it appears the developers threw out NAFTA in the new version, so tariffs hurt pretty bad in Latin America. Business Strategy game year 11 Internet Marketing, I need to figure out the appropriate units in the boxes that are in blue for best case scenario Show transcribed image text Expert Answer Transcribed image text: Otherwise you will not sell any shoe either. Thank you so much for your reply! Optimizing your values is the essence of the game, even though it might be very time-consuming. I have experienced different behavior with bidding on celebrities. Right now I am doing the second year decision, Im doing star 8 and 100 models, did 7 stars and 100 models in first round and the result was not very good. NEVER do this. If your team faces these kinds of challenges, seeking BSG help online could be the best option. Go ahead and try out which combination yields the highest profits. Is your strategy also works for my situation? So I run into problem again! After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. It is usually best to repurchase stock at the beginning, when your stock prices are relatively low. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. I am having trouble getting my company back into the positive ending cash after taking out a loan. Again, trying out different combinations and optimizing net profits is key for these values. Thats a relief. This game can be overwhelming, so anything to help other players! my advice would be to read my guide and follow the steps. If it increases your profits, leave it at Yes, otherwise set it to No. G-Brand will continue to make all efforts to use good materials which environment friendly. By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. In the upper left box, you have available sources of additional cash. I was thinking about building a LA plant because I took the majority of private label there last year. Like should I add up all my wholesale prices from the 4 regions and then divide by 4 to get an average wholesale price and multiply by 1.40 to get the internet price or should I base it off the lowest wholesale and then multiply by 1.40 to get the internet price? Here, you will determine the Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, Change in Annual Base Wages, Incentive Pay, and Best Practices Training. You will also receive a copy of Currency Made Simple. Your team will experience the challenge of coming up with a successful strategy, especially when frequently faced with changing competitive business environment. You are now all set to dominate your industry and win the BSG! Entering year 15 I am still doing 8 star but the demand forecast is super low. I would like to ask you about the Dividends. And you can basically never have enough capacity for private label. After you have plugged in your numbers for both plants and your Branded Pairs Available for Shipment matches your Total Branded Pairs Shipped from each Plant, go ahead, click the Save Decisions button, and move to the Private-Label Operations page. G-Brand will invest more in the Use of "Green" Footwear Materials, Energy Efficiency Initiatives and Charitable Contributions to build a bigger Image of societal Brands. Your Delivery Time should be set to 3 weeks. The Business Strategy Game is a hands on learning exercise that will give The Students valuable decision-making practice and develop powers of business judgment. Tips: We ship from NA to LA because no import tax or tariffs due to NAFTA (North American Free Trade Agreements) - The North American Free Trade Agreement, or NAFTA, is a three-country accord negotiated by . The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. The BSG company co-managers must make decisions relating to plant operations, distribution and warehouse operations, workforce compensation, marketing, online sales at the companys website, sales, and finance. You basically determine and run the market. Yes, I would only add capacity onto existing plants and not build new plants. Select +2% for the Percent Change in Competitive Impact of All Other Factors from Previous Year. This means, without increasing your superior material or enhanced styling / features, you gain 1 star. However, if you loose and the share price will go down. Like I explained in my blog post, do everything that is necessary to increase and maximize your net profits. When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. I am currently dominating my industry, and closing in on the top 100 list! Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. Strategic warehousing impacts all warehouse operations, from inventory management to order fulfillment. Total Wholesale Marketing is 12.92 is good now, we will keep maintaining strong marketing to get higher sales volume. We will work tirelessly to ensure that our shoes are within reach of purchasing and get the high quality shoes with very large selection. Celebrities will enhance your marketing efforts and help you sell more shoes. With our strategy in mind, I would recommend addition capacity to already existing plants rather than constructing a plant in a new region. In my opinion, I believe the other teams are thinking on exploit the private label. Once you get the Main Menu for running the company, print a copy of the Year 10 company reports, a summary of the footwear industry report for year 10, and competitive intelligence reports. If you reach the last decision round, comment down below and I will give you some hints on how to boost your net profits for the last year and gain some extra points. I will explain soon, how to increase plant capacity and why we need the capacity for private label. Any advice? These strategies are easy to see in the real world of business. Everything else like earnings per share (EPS), return on equity (REO), and image rating (IR) will automatically follow. BSG Guide - How to Win the Business Strategy Game And profit is what the game is all about. Let us move on to the tricky part of this decision page. Hence, find the combination that gives you the highest profit. Moreover, your strategy needs to be actively communicated to each level of management regularly. It depends on how much private label you sell and whether you want and can sell more depending on the market, whether its satisfied or not. Although we are still ranked 8th in the world and 1st in the. So for the last year I didnt stick to the rule that the internet price has to be 40% higher than the wholesale price. Yes, despite your competitors building capacity as well, I recommend increasing capacity in a reasonable amount. In 2020 digital game sales outpaced physical sales for the first time. Hey!! However, to be able to do so, you need available capacity. We get out of Year 17 with bad results in ROE because we expand too fast in that year. My question is what if I decreased the pay dividends to $0.15 from $1.00? Again, it is important that you keep in mind to optimize your profits. If you have your AP price set to e.g. I would definitely increase your S/Q rating to 8* and lower your models to 50 (this should be the lowest you can go if I remember correctly). I would then adjust the Percentage of Superior Materials to whatever is needed to match my S/Q Rating with the value plugged in on the Sales Forecast page. Here, you will plug in your previously calculated regional total sales volume for each region. So, should I decrease pay dividends here to $0.15? Does it affect any other factors? On this screen, you can handle your financial decisions for your company. Try out different combinations that keep you at 8* and the highest possible net profit. Now we learn from the game and be more knowledgeable in making business decision. Like I already said in my previous post, the most important thing is to toggle each and every value and pay close attention to your net profits.