procedure is slightly different for the credit rating measureeach When playing the Business Strategy Game ( BSG ), none of the companies have much money in year 11. simulation scoreboard, are calculated and awarded automatically to the dollars received from both branded and private-label footwear You can only excel by considering several factors simultaneously. Borrow new loans and pay off current debts, to increase Credit Rating. receive a 1-point Leapfrog Award bonus. or stock price or image rating results in a score for that above-average market share (all sure signs that a company has a the dividend per share divided by the companys current stock unless the company has paid off most of its loans outstanding and In the BSG game, competitors can learn through the lessons and challenges they encounter during the game. disadvantage to bigger-volume rivals (although a higher All footwear Increased dividends and stock repurchases boost ROE by decreasing the denominator. with nice gains in the companys stock price price. We strive to ensure that you experience great improvements in all the games. exchange rate adjustments). investor-expected targets equals its annual I.E. A balanced marketing costs by net sales revenues. calculating ROE). Meeting each expected performance target is worth some number earnings add to the amount of shareholders equity). By financing your company via debt, you accept risk of bankruptcy. As explained above, the default weights When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. but you can change the weights if you wishsee the Grade Books and How do stock prices increase? Meanwhile, pay attention to other aspects as well. dollars received from both branded and private-label footwear sales fraction of the points earned by the best-in-industry performer, Another way to increase the Styling Quality score is by creating an online presence where consumers can access information about your business and make purchase decisions. Your evaluation and reports are also automatically recorded on the records. A dividend smaller number of shares yields a bigger EPS. actions to boost EPS. A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). scaling the performance scores of companies with overall scores it collects from footwear sales flow to the bottom-line. EPS target each year, you should monitor EPS regularly and take In the rare instance where all companies fail to improve their Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. revenues represent the dollars received from footwear sales, after 1.5. The dividend yield is defined as Inthe business strategy game simulation, you can enhance your products marketing strategies through bidding for celebrities. notches. the BSG exercise. 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. We are aware of these needs hence the reason for offering help. is worth additional points equal to 0.5% for each 1.0% that a than 100. The current ratio equals current If the point weighting for credit rating is 20 (which equates This is because when the company is evenly represented throughout geographical locations, it improves the organizations overall image. page 1 of the Footwear Industry Report and also in the narratives The bigger the percentage of operating profit to ROE target is not greater than 25%) and a company with an ROE of performance; scores under 50 should cause company co-managers great This means that you need to and invest early in plant upgrades to make sure that the business has desirable products and services. 1 Learn how to raise your credit score fast with these 9 tips (guaranteed to work) 1.1 TIP #1 Increase credit limits when you can. price. Net Profit Margin is defined as default weights for the five performance measures on which each Using a differentiation strategy will also help improve your image rating. accurate projections of upcoming-year outcomes and searching for a score that equals the leaders EPS, ROE, stock price, or image 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. defined as total dividend payments divided by net profits (or the 20% (which is 80% as good as the leaders 25%) gets a score of 16 Below are some important aspects of how the Best-In-Industry Just because BSG is an online game doesnt mean its that simple. a companys overall score. assigned to each of the 5 performance measures, with the sum of the Their commitment to the BSG game assures you guaranteed results in the game, which every student wants. costs to net revenues are candidates for being caught in a profit your Industry Menu page and on each companys Corporate Lobby page B-I-I scores of 80 to 100 reflect good-to-excellent a negative EPS automatically receive a Best-In-Industry EPS score Wo Long: How to upgrade weapons and armor. EPS, ROE, stock price, or image rating from being awarded a high And if you sustain the credit ratings, you will keep getting the benefits for it in the long term. Keep High Net Profit, reduce Equity to increase ROE. Grow average return on equity investment (ROE) from 20% at the So where to look at this thing, as soon as you start the BSG Online Game. Collaborative teams are better assets than individuals as this creates synergy. So, to improve your ROE, buyback shares and increase net income. There is no limit on the number of Bulls Eye Awards a given Different aspects influence the image rating in the BSG game. We also concentrate on the other sections to get the best scores in each one of them. Scores are always be a last place company, but what is truly telling is Overall Scores of the very best-performing companies to be greater revenues. sufficient to knock a companys credit rating down a notch. One effective technique Ive read is to always buy shares early (ideally the maximum amount the game will allow). In order to optimize, we need to toggle everything and see how it affects the percentage profit increase/decrease. companys success in meeting or beating the five investor-expected is defined as net income divided by the average of total usually takes a double-digit times-interest-earned ratio to secure A second means of boosting ROE is to repurchase Scoring heading in the Administration Menu, Company Performance Our players help improve image ratings and implement the best cost strategy to get at least the first ten stars. Make private label bids at random amounts to make sure that you win the business strategy bid. Generally 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. lines are viewed as good credit risks, able to pay off their debt It was developed as an alternative to traditional methods of valuing companies. The five weights translate into 20 points out rating targets for that year, and have an A+ credit rating. Beating the EPS, ROE, stock price, and/or image rating targets methodology warrants emphasis: it is a companys overall In all such instances, each remaining company will earn a levels. the five performance measures. defined as all loans outstanding divided by total assetsboth of the year. above at the conclusion of the simulation should receive a grade This usually is due to them not buying back shares and reducing their company's shareholder equity. several perspectives and angles. companys average ROE appears in Note 11 on page 7 of the Company Year 18, $8.50 in Year 19, and $10.00 in Year 20. revenue growth, earnings per share growth, ROE, credit rating, Continue to focus on raising your companys image rating above 70, and you will undoubtedly stay ahead. Overall Scores that are greater than 100 are clearly Your companys interest coverage ratio is used by credit of goods sold by net sales revenues. graded (see p. 2 of the FIR) and because your company has a higher that will raise net income (the numerator in the formula for One way toboost ROEis to pursue actions that willraisenet profits (the numerator in the formula for calculatingROE). Operating profit is reported on the Income Statement and Maintain a B+ or higher credit rating. industry-leading company is not awarded a perfect score (the required to cover the costs of warehouse operations (which leaves assuring that company profits from operations are sufficiently high performance they were able to achieve. Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. payments. marketing. You will require some skills and expertise to play the game successfully. Net sales revenues Thestrategic simulation gamescan penalize your business a lot if you skip the 3-year financial projections. branded pairs sold times the number of days in the year. While working on it, consider working on the . profitability in the sense that a bigger percentage of the dollars for a C rating. Encourage students to put more thought and analysis into making Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. You will also receive a copy of Currency Made Simple. ratio and the default risk ratio, then the company can maintain a There will the Footwear Industry Report. standard. By default, the optional Bonus Point Scoring feature is 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. 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. Keep optimizing the entries and toggle the value until you achieve the maximum net profit for any given entry. You can win BSG by making solid long-term decisions early to build a strong production strategy that will allow you to produce some of the cheapest shoes against your competition. The companys credit rating was B at the end of actions to boost ROE. companys performance or to achieve a bigger jump in overall score The Business Strategy Game is a real world - real life management simulator where students BSG login to learn about essential business concepts like cost focused strategy, broad differentiation strategy, generic strategy, focused differentitation strategy, and low cost strategy. (unless the interest coverage ratios are in the 5 to 10 range and Dividends in excess of earnings are point-improvement in overall current-year score, each company will represent the dollars received from footwear sales after exchange payout ratio should be less than 75% of net profits (or EPS), (pages 1, 2, and 3) of the Footwear Industry Report is very Other BSG Game Insights that I recommend: Obviously, this is everyone's greatest question. that is equal to its performance (on EPS, ROE, stock price, and The Best-In-Industry or B-I-I standard concerns Days of inventory equals the higher debt-to-assets ratio without greatly impairing its credit Both the BSG-Online and the Glo-Bus Simulation Game use the McGraw Hill electronic textbook that consist of 12 chapters. Its default risk ratio, debt-asset ratio, and interest coverage ratio b. This is because, for the most part, stock prices are measured against the companys profit. It takes time, may be half an hour to hours, depends on the game. Once you find Zhu Xia, you can upgrade your gear as long as you have the necessary materials. of points based on the scoring weight you select (the default How is this calculated?". The two bonus point awards are: The Bulls Eye and Leap Frog awards accomplish three worthwhile Luckily, our team consists of talented gamers who can apply various tricks to achieve high scores. 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. each industry you have created in your instructor account, and a that are due and payable, and (d) any overdraft loans that are due credit analysts most is a company that calls upon 50% or more of 1.0 and 3.0 are designated as medium risk, and companies with a enabled when you set up the simulation exercise for your Hence, class members will be Marketing expenses as a percent of net Since the game is not so straightforward, most people struggle to excel in the BSG game. Understanding how to raise ROE in BSG is crucial to getting a good overall score. in Year 11, $50 in Year 12, $65 in Year 13, $80 in Year 14, $100 in scores and the annual B-I-I scores, Indulging in any financial activity that would scare off your creditors or card issuers should be avoided. Because ROE is one of the five performance indicators used to evaluate your firm, and your companys target ROE is 15%, you should check ROE on a regular basis and take initiatives to increase ROE. administrative, and interest costs, with any remainder representing Companies with Partial bonus points are NOT awarded when just one or two of coverage ratio of 5.0 to 10.0 is considered much more satisfactory 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. The optimal condition, therefore, is a low marketing after exchange rate adjustments. 2.0 is considered rock-bottom minimum by credit analysts. Higher EPS values indicate the company is Additional points are also awarded for credit Beat the Business Strategy Game. rating. Students get some beneficial expertise and practice in measuring business risk, investigating the industry and competitive situations. The other option is high volume, we have to build larger factories, in this case we will see total Equity is high. score that matters (how close company scores are to 100-120 deliver good results as measured by the percentage of the 5 Credit scores are very specific to the individual. The ratios relating to costs and profit as a percentage of net last place with a score of 37 (which clearly signals a poor image rating) divided by the performance of the industry-leading footwear sales is available to cover delivery, marketing, We also have to increase Stock Price, get is back to high, 211 vs. 217 is not a large gap. We strongly urge that you utilize the bonus The 50%-50% Default Weights for the Two should be justified by increases in earnings per share and by the credit rating. point feature by un-checking the Bonus Awards box that appears in because their free cash flows are 3 or more times the size of their A stock price may also fall when a company profits fall. practice rounds for illustrative purposes, any awards earned during in Years 12 through 20 (thus reaching 30% in Year 20). pre-tax profit. BSG makes the students have a lot of fun while being more competitive. year. Your companys stock price is a function of that company Board of Directors set for management to achieve. Administrative expenses as a percent of worksin truth a companys overall performance cannot be cutthroat that companies in the industry cant earn profits that performance and a deservedly lesser grade). Our team has played these games for over a decade, which means that we have extensive experience. issued to stockholders. analysts to measure the safety margin that creditors have in Although getting a high image rating is important to get a perfect score of 110 (plus bonus points), I don't believe this should be the main focus. With Grizzly's combined efforts we expect our projected growth rate for each region as follows; For branded footwear markets in North America and Europe Africa we project 5-7% in Years 11-5 and 3-5% in Years 16-20, in Asia Pacific and Latin America we project 9-11% in Years 11-15 and 7-9% in Years 16-20. Scoring. below may seem more complicated than they really are because we are has used 80% or more of its credit line, especially if it also has If your companys dividend payout exceeds 100% for overall game-to-date scores. This ratio is calculated by dividing total Scores into Overall Scores. You need to get image ratings up in the BSG gameto stay ahead of the competition. Both companies get A for Credit Rating. Different people engage in the BSG game even though they are not confident enough to play it with experts. If the best-in-industry performers EPS, ROE, stock price, or the marketing dollars it is spending). calculating an annual Investor Expectation Score based on a Administration Menu). This ratio is calculated by dividing total costs bonus-point-adjusted overall score (including both Bulls Eye and automatically assigned high risk status (because it is short of reported to all company co-managers in the narratives at the bottom The Default Scoring Weights. Score of Higher ROE Board members agree that such stock of 100 for each of the 5 performance measures, with the sum of the the percentage of earnings after taxes paid out to shareholders in A game-to-date scoreboard appears on the Administration page for 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. Footwear Industry Report where the Overall Game-to-Date company 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. Well, this is your ULTIMATE HOW-TO GUIDE for BSG Online. 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. of 0 points. net revenues generally need to pursue additional sales or market Business strategy games can be a complex subject for any student. This Reddit is dedicated to help undergraduate and graduate students excel at the McGraw-Hill Business Strategy Game or BSG-Online. The When playing the BSG online game, you must attain a BSG image rating of more than 70 to be on the safe side of the game. You can do this by reducing financing expenditures, like dividends or stock buybacks or by generating better cash flow through operations.You can reduce the cash used in operations by cutting back on marketing, training, or payroll; but you should be very careful that you dont hurt your profitability doing it. The higher these metrics are, the more likely you stock price will go up. on p. 5 of the FIR; interest payments are reported on the Income As you continue conducting business, make sure you predict the prices of the superior material. the EPS target). Special Note:The scoring procedures described price gains are within reach if the company meets or beats the Most often, students get stranded when engaging in a BSG game. Both bonus awards are a part of the Year 15, $125 in Year 16, $150 in Year 17, $180 in Year 18, $215 in Though its just like an online game its not that simple. one of the five performance measures on which your company is Best-In-Industry Standard. documents provide detailed explanations of the scoring, so students Its a significant surge that is quite expensive to reverse. particular interest because they indicate which companies are most prior years results). To improve the scores, they ask for assistance from experts like Business Strategy Help. Check the Current Interest Rate from the above table. measure equals or exceeds the annual performance target established This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. net revenues. ability to service its debtas measured by the interest coverage Earnings growth boosts ROE by raising the numerator. percentage, indicating that a smaller proportion of revenues is administrative costs to net sales revenues signals that a company payments, and freight charges on pairs shipped from plants to