Yeah I will hold on to that for now. Even more important is, to stick to it! 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 governments of Canada, Mexico, and the United States that entered into force in January 1994. I worried that another team would have stumbled onto your blog, but few people Google tips it seems! However, if done right, it is worth the time as it will yield the maximum profit possible and success in your industry. 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. We even understand the very details such as marketing per pair of shoes, cost of warehouse, administration per pair of shoes, which can contribute to the total cost making the Net Profit higher or lower then decide the Business Results and overall market development. However, you can successfully apply most of the following tips to either strategy. The following tips can help you get around the BSG and possibly be the winner. If not, I dont see the need to purchase equipment in order to make more shoes until the demand begins to encroach upon my shoe making capacity. In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). BSG Comprehensive Exam (Fall 2019) Flashcards | Quizlet It was set Pay Dividends $1.00, which turned out 20,000k in total. With our strategy in mind, I would recommend addition capacity to already existing plants rather than constructing a plant in a new region. Try out each and every value and note down the highest net profit values. No matter the location, our goal is to satisfy our customers foot fashion desires and provide them with the best style and quality in footwear. We will build new Plants in LA, keep focus on different segments, high and very high quality. However, it will also decrease your ending cash. After you have calculated the manufacturing volume for each region, add up your N.A. Try out different combinations that keep you at 8* and the highest possible net profit. We always used the 10 decision groups of Finance and Cash Flows in most careful ways to maintain high EPS, in fact we should spend more Cash in hand to buy back Share in early years. Hence, make sure to plug in every possible value to reach the highest net profit possible. This can get confusing at the beginning so here is a table to show you the process. This like a trial and error process and does not necessarily have to make sense. Toward that end, it put in place responsible environmental policy that ensures more decisions for community. Now, decide to which region you want to ship your private-label shoes. Never give up, we can always find a good way to improve a company, despite its position in a market. View Invitational Current Adopters of BSG Schools (campuses), institutions, and companies using BSG during the last 12 months. Here, you will decide for how much your shoe is going to sell. I am in Y12, and I am adjusting for Y13. However, if you want to do it more precisely, note down each industrys percentage change over the years and use this number instead of the +2%. Strategies, decision screens, reports and tests. Therefore, ensure your profit increases after every round to make the game better and for real business. Do not worry about your market share percentage or any other value than your net profit. In the later years, when the cost in NA is high, we have built a new factory in LA, we can ship from LA to NA (eg. But my profit is still a little bit low for a second place, guess my price is too low and I need to cut some of my expenses, right? How can we apply the wisdom of strategies like Cao Cao to Professors Peter Drunker, Igor Ansoff, Philip Selznick, James Collins, Bruce Handerson, Michael Porter, and Alfred Chandler, among others? If it increases your profits, leave it at Yes, otherwise set it to No. With that, you can do the same over and over again, for every decision round. Furthermore, I spent all my cash on hand for dividends and stock repurchase to increase my ROE and EPS as much as possible. But you need to identify your strategy first in the following three aspects: How can you identify your strategy? However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. Warehouse and Distribution Plan Strategies Buy I have quite a lot ending cash. I am in need of help with the Business Strategy Game. | Chegg.com I let the rest remain the same in the entry. According to the change, you can estimate the next years average industry internet price and plug it in. Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. This decision page is mainly a waste of money and we will not spend a lot of time with this page. Sometimes, clearing your beginning inventory at a discount will boost your profits. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. They do their best to ensure that you get the best grades on your assignment. Hi, construction cost to be financed with debt. Theres everything explained in detail. Over Year from 15 to 18, ROE changes up and down 22.5, 18.2 then 20.0 then in year 17 down to 16.8 then up to 24.3 in Year 18. Here, you will plug in your previously calculated regional total sales volume for each region. At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. No worries, it will be easier after the first few years. If your results in the first year are not too good, its not a big deal. We even understand the very details such as marketing per pair of shoes, cost of warehouse, administration per pair of shoes, which can contribute to the total cost making the Net Profit higher or lower then decide the Business Results and overall market development. Do not worry about those numbers, they will just show you whether your investment is profitable or not. Similar to the branded production, try out the different values to see which combination will give you the lowest Average Production Cost value for your plant and hence, the highest profits. Let me know if you have any more questions. In the first years, the estimate of the industry average might be a little off the +2%. It has to find ways expand so that cost of production at high quality still low enough to increase high margin, high market share and getting over all high Net Profit. Yes, its not too late yet to follow through with my tips. The S/Q upgrade is the best option if you choose high-quality strategies, while setup cost reduction is ideal if you decide to have several models. We need to control this better in next five years. Let us take a look at the Plant Capacity / Upgrades page first. Cost of pair sold, Ware house expenses, Marketing expenses, and Administrative expenses, all the 4 key contribute to Operation Cost. We need to keep track of cost in more details in next years. If you demand for branded production is met, put everything else into private label to make sure you dont have unused capacity. Purchasing capacity is 20% cheaper than building new capacity on your own. Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. Students use the BSG to cultivate managerial skills for decision-making purposes. Distribution & Warehouse.pdf - 3/29/2021 BSG Decisions - Course Hero I have extra capacity in the LA plant (worst place to ship from to any place outside of LA) which I tried to sell off. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. We were actually thinking on building capacity in LA for next year, however, two of the other teams already built capacity for 6,000 pairs in total (we are only 4 teams in total). The styles or features can be at 50, while the TQM can be set at 2.50. It sometimes works. Like I said before, you should be building capacity, yes. On initial input of the change there was a big boost to my numbers, but when I left the page the game suddenly dropped my numbers below my original ones. Is your strategy also works for my situation? Our G-Brand Company will continue to pursue its existing High Quality Average Price Large Collection strategy; However, to increase its market share and thereby increase revenue, our company, focus on Net Profit to increase ROE. So, play around and find the best combination for your given S/Q rating that yields the highest net profit. Use the remaining 30% capacity to sell shows in private-label! I dont know why the game suddenly changed your numbers but I recommend using every last bit of your capacity. 14. Select +2% for the Percent Change in Competitive Impact of All Other Factors from Previous Year. You dont have to care about your retail outlets anymore so adjust the price so maximize your net profit, without the 40% rule. Even though this game is said to be a business simulation, get rid of the thought that all decisions have to make sense and be logical. . Repurchasing stock will boost both your EPS and ROE. Distribution Warehouse Business's typically involve a much greater degree of movement than other lines of work. Can you tell us more about the strategy you had ? If you are looking for your teams strategy to be a success, then creation is the first step. So, multiply your sales volume for the wholesale segment for each region by 1.2. One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. But strategy wise I always sticked to my maximum net profit strategy which you can do no matter your competitors strategy. I cannot make any money there. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. Sounds good, congrats! I wish you the best of luck for your game. It will be very helpful for us and will be very grateful Do you still have your upload reports of all your years ? When starting the BSG, you have two long-term loans; one for 5 years, the other one for 10 years. This Branded Distribution table of decisions seem to need more time. Celebrities will enhance your marketing efforts and help you sell more shoes. but out industry there is a direct competitor for me, he is also star 8 and 50 models, and he prices so low for wholesale, only 47! Texas A&M University, Corpus Christi. How can you apply the ancient wise in the Arts of War of Sun Tzu? Otherwise, their endorsement effect declines. Beat the Business Strategy Game. Year 11 BSG Decisions - 11/4/2016 INDUSTRY18 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.
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