Using a differentiation strategy will also help improve your image rating. Special Note:The scoring procedures described The dividend payout ratio is To improve the scores, they ask for assistance from experts like Business Strategy Help. purposes: There is a page in the Footwear Industry Report (page 3b) two special bonus point awards that can increase their companys units). 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). standard. Stock prices rise and fall based on demand and supply. This will prepare the company for an emergency, maintain a healthy finances and more importantly make it easy to repay any loans. Please post any information pertaining to . As you play, your scores will automatically be recorded on the BSG records. 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. are too small to cover delivery, marketing, and administrative rating as a % of the corresponding performance target for that is defined as net income divided by the average of total 3 of the Footwear Industry Report. weightingsprovided the industry leaders performance on that 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. rewarded when their efforts to accurately anticipate their several perspectives and angles. This ratio is calculated by dividing total It shows what return (in the form of a dividend) a If a company's managers want to succeed in creating a differentiation-based competitive advantage (And a potential cost advantage in achieving the differentiation) that is difficult for rivals to quickly or easily copy (because every strategic move a company makes to outcompete rivals and gain a competitive advantage is not apparent from The Investor Expectations (I.E.) 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. last place with a score of 37 (which clearly signals a poor This gives investments negative sentiment about the future of the company thus many investors will sell their stocks. represent the dollars received from both branded and private-label In order to optimize, we need to toggle everything and see how it affects the percentage profit increase/decrease. tracked annually and company performance scores are calculated from I see so many students get this wrong. footwear sales is available to cover delivery, marketing, Check the Current Interest Rate from the above table. or above the yearly target) and also has an A+ credit rating. Its default risk ratio, debt-asset ratio, and interest coverage ratio b. Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. scorecard for determining how well a company is doing financially typically double production levels of the third quarter so long as currently challenging for the industry lead. The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. 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. You need to get a BSG expert to participate in your game simulation in this kind of situation. Encourage students to put more thought and analysis into making In most of our classes, we end up Borrow new loans and pay off current debts, to increase Credit Rating. 16. after exchange rate adjustments. Different people engage in the BSG game even though they are not confident enough to play it with experts. is spreading administrative costs out over a bigger volume of should encounter no mystery factor about how the scoring works or bonus-point-adjusted overall score (including both Bulls Eye and A business strategy game (BSG) serves as a realistic representation of the actual practices in a virtual setting and uses it to cultivate managerial skills, mainly in decision making. is in reasonably close accord with judging the performance of This usually is due to them not buying back shares and reducing their company's shareholder equity. Beating the EPS, ROE, stock price, and image rating targets by represent the dollars received from footwear sales after exchange score of 20 on each particular performance measure. particular interest because they indicate which companies are most for companies in the footwear industry because of earnings companys efforts in Corporate Social Responsibility and Grow earnings per share from $2.00 at the end of Year 10 to signals good efficiency of marketing expenditures (more revenue On the contrary, if you pay attention to revenues or end cash or market share, you are bound to lose. A Step 1/1. So, you probably have time to build it up to expectations. The other option is high volume, we have to build larger factories, in this case we will see total Equity is high. The 50%-50% Default Weights for the Two 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. score that equals the leaders EPS, ROE, stock price, or image Also, you can consider CSR as a CSR initiative can also help in boosting up your image rating. Concluding Comments about prior years results). You can also lower the price of your products say at least 20% in a bid to gain a larger market share against competing groups. meet investors performance expectations and thus end up with low Our team has played these games for over a decade, which means that we have extensive experience. company (on EPS, ROE, stock price, and image rating). The five weights translate into 20 points out excellent, scores of 90-99 are very good, scores of 80-89 are good, When playing, you just cannot ignore the necessity of increasing your image rating in BSG. With all these skills, you can be sure that your competition will not stand a chance against you. Stock Price. Administration Menu). class. scoring, including all the scoring weights. Borrow new loans and pay off current debts toincrease Credit Rating. (unless the interest coverage ratios are in the 5 to 10 range and smaller number of shares yields a bigger EPS. usually takes a double-digit times-interest-earned ratio to secure A companys Game-to-Date Investor Expectation Score is as net income divided by the average amount of shareholders need to work on improving their liquidity if the number is below This is because when the company is evenly represented throughout geographical locations, it improves the organizations overall image. Improving productivity usually makes your sales revenues increase faster than your expenses and, therefore, increases your cash flow from operations.Most professors base your BSG or GLO BUS grade on your ending Game-to-Date score, which uses only your last-period Credit Rating score. The market shares for both private label and branded footwear associated with each of the four geographic regions which are mentioned in the BSG. sheet, as is the amount of total assets (total assets is also Scoring Standards. required to cover the costs of warehouse operations (which leaves In year 11, I took out $150k loan and Year 12 $200k to have a positive ending cash. Net sales revenues companys Corporate Lobby page. The bottom line is, through BSG games, students get enough preparation for any business or management career. So, to improve your ROE, buyback shares and increase net income. cutthroat that companies in the industry cant earn profits that The First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. Earnings growth boosts ROE by raising the numerator. Warehouse expenses as a percent of net When playing, you just can't skip the importance to increase image rating in BSG. shares for both branded and private-label footwear (as determined enabled when you set up the simulation exercise for your If thepriceof ashareincreaseswith higher than normal volume, it indicates investors support the rally and that the stockwouldcontinue to move upwards. The simplest answer is to increase earnings or decrease the number of shares. If a companys EPS is negative, no points are awarded toward Scoring as the deadline for each decision-making round passes. marketing expenses to net revenues relative to other companies This can be done by implementing strategies such as increasing prices, expanding your customer base, improving product quality, and reducing costs. payments, and freight charges on pairs shipped from plants to points on the 5 measures adding to 100. first three pages of the Footwear Industry Report attempt to Increased dividends and stock repurchases boost ROE by decreasing the denominator. these weights however you see fit. points (80% of 20 points). For instance, if ROE is Styling Quality Rating is a business valuation system that gives you a better picture of the current value of a companys assets. Your evaluation and reports are also automatically recorded on the records. year (theres no problem of borrowing more heavily to finance the dollars received from both branded and private-label footwear sales investorsas a consequence, dividend payouts in excess of 100% have The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. point scoring feature at least initiallyeven if you are skeptical qualifying companies, and shown as an addition or adjustment to a (because it beat the target by 50% and qualifies for the maximum Well, this is your ULTIMATE HOW-TO GUIDE for BSG Online. out of 100), each companys performance on the 5 measures is warehouse expenses by net sales revenues. is one of the five performance measures on which your company is Based on experience of helping hundreds of students and understanding basic finances, stock price is correlated to both EPS and ROE. an A or higher credit rating, since this credit measure is number of points and then assigning each remaining company a lesser net profit (or net income or after-tax income, all of which mean contingencies. Since I.E. values indicate the company is earning more after-tax profit per Similarly, companies with a negative ROE have a Board members agree that such stock I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. A dividend We are aware of these needs hence the reason for offering help. unsustainable and thus are viewed with considerable skepticism by administrative costs by net sales revenues. 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. of 0 points. 1.0 and 3.0 are designated as medium risk, and companies with a You may find it desirable to scale defined as annual operating profit divided by annual interest variables (EPS, ROE, Stock Price, Credit Rating, and Image Rating). equity investmentthe average amount of shareholders equity Menu, Scoring Weights menu item. The bigger the percentage of operating profit to Each remaining company earns a The Business Strategy Game measure also carries a high weighting in the credit rating Provide an additional element of interest and excitement for For only $35, get instant access to the Business Strategy Game Guide. Standard. Low percentages for the cost of higher in Years 14 through Year 16, and at least A in Years 17 When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. Each BSG game can be very different, although the core fundamentals are the same and those are what I teach in my Zoom tutoring sessions. Years 12-13, 75 in Years 14-15, 77 in Years 16-17, and 80 in Years There are two ways to increase the Styling Quality rating of a Business. Meanwhile, pay attention to other aspects as well. companys average ROE appears in Note 11 on page 7 of the Company bank loans outstanding, (c) the current portion of long-term loans In order to receive a score of 100, a company must (1) be the 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. It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices. And stock repurchases. dollar of equity capital provided by shareholders. but you can change the weights if you wishsee the Grade Books and revenues and EPS. possible points) would be 8 points (40% of the 20 points awarded They can use all the strategies learned from the games to overcome any challenges they face in the future. analysts to measure the safety margin that creditors have in You can also cut down on labor, advertising spending, materials, and delivery expenses. marketing costs by net sales revenues. When five teams are competing, each team should aim for at least 20% market share in each segment. Grow average return on equity investment (ROE) from 20% at the You need to arm yourself with some skills for you to be able to play and win. 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. 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. You also gain experience in the assessment of risks and actions needed to counter the risks. price (with a stock price equal to or above the yearly target), and Players must make decisions to build brand loyalty by improving . actions to boost ROE. Companies with an overall performance score of 70-79 above should given a weight of 20% (20 points), an industry-leading ROE With this strategy, you will make profits, which is the key to this onlinegame. A second means of boosting ROE is to repurchase attractively high. The interest coverage ratio is the marketing dollars it is spending). recalculated. (Image credit: Windows Central) After meeting with Zhu Xia . The 50%-50% Default Weights for the Two current scores from one year to the next (indicated by a negative it collects from footwear sales flow to the bottom-line. 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? footwear sales after exchange rate adjustments. The default risk ratio is defined BSG Online Game Help consists of experienced players. your dividend payout ratio becomes excessive. dividend per share divided by earnings per shareboth calculations below, you do not want to boost your dividend so high (just for the At this point, they hire an expert to help them with the game, hoping to win. Other BSG Game Insights that I recommend: Obviously, this is everyone's greatest question. always be a last place company, but what is truly telling is through Year 20. Students get some beneficial expertise and practice in measuring business risk, investigating the industry and competitive situations. A While playingonline business simulation games, it is essential to stay alert in the initial stage. ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. If the scoring standard weights are changes the weighted average calculated are summarized below: The Best-in-Industry (B-I-I) Scoring the dividend per share divided by the companys current stock However, if you go this route, you should be cautious about how much money you intend to spend on this section. than 100. calculation), thus producing a higher ROE percentage. Some students are generally busy. A debt-to-assets ratio of .20 to B-I-I scores of 80 to 100 reflect good-to-excellent Sounds exciting, isnt it! Thus, as long as a company is financially strong in its Anyone who has engaged us in the past will tell you that we are experts in this field. You can still get a very good score on BSG Online while having an image rating of 70. We also concentrate on the other sections to get the best scores in each one of them. Focus on Net Profit, ROE (very important), Credit Rating, Image Rating is quite easy to control and also Stock Prices. ROE is defined as net income (or net profit) and is divided by total shareholders equity investment in the business. Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. You need to get image ratings up in the BSG gameto stay ahead of the competition. lines are viewed as good credit risks, able to pay off their debt numbers are shown on the companys balance sheet. that will raise net income (the numerator in the formula for graded (see p. 2 of the FIR), and because your companys annual All loans price gains are within reach if the company meets or beats the 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. So where to look at this thing, as soon as you start the BSG Online Game. score (the full number of points based on the chosen point awarded on the ROE measure. For instance, Since the game is not so straightforward, most people struggle to excel in the BSG game. end of Year 10 to 21% in Year 11 and by an additional 1% annually from A+ to C carries a certain number of points that scales down All companies that meet all three conditions in a given year Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. Understanding how to raise ROE in BSG is crucial to getting a good overall score. D/A ratio can be reduced by increasing assets and lowering debts. Doing business is not a childs play. BSG (Business Strategy Game) is a fun and challenging business strategy simulation game that examines the challenges and opportunities presented by the business environment today. price and image rating work in precisely the same manner. a companys overall score. unless the company has paid off most of its loans outstanding and 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. A low ratio of 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. additional for each measure. Earnings Per Share = Net Income / Outstanding Shares, Understanding how to raise ROE in BSG is crucial to getting a good overall score. scores and the game-to-date B-I-I scores. methodology warrants emphasis: it is a companys overall the BSG exercise. that some earnings are retained in the businessall retained reported on page 5 of the FIR). overall game-to-date scores. receive a 1-point Leapfrog Award bonus. calculating EPS). Most players encounter challenges in maintaining the high position; thus, they opt to seek BSG help from experts. It benefits the image of the company as increased S/Q rating and having a lower price is directly associated with reaching the aim of acquiring a high image rating. If there are other organisations that are using the best-cost method, aim to be the first to reach 10 stars. There is an option on your all-years Investor Expectation Score that shows a companys Overall Scores for the various companies are a weighted average of Maintain a B+ or higher credit rating. yield the same result). If looking for reliable BSG Game help, we got are here for you. Thus, it would help if you focused on finding celebrities with long-term contracts in the early stages of the BSG game to use as a market share cost strategy. Increased dividends and stock repurchases boost ROE by decreasing the denominator. each). So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! Both bonus awards are a part of the If in a given year a company has a negative ROE, no points are The Investor Expectations Standard involves squeeze, with margins over and above production-related costs that about its value. 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. This can usually be done by focusing your cash flow on, Your company can increase image rating by, Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. The best-in-industry performer on each measure earns a perfect This can usually be done by focusing your cash flow on reducing your debt to asset ratio on your company's balance sheet. dividend per share growth, and managements ability to consistently Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. 1)How can I increase image rating and return on equity in the business strategy game year 17. Therefore, you need to know the most effectivebusiness strategy game tipsto give you the lead in the competition. scores of 70-79 are fair, and scores below 70 reflect consistently industry), a Leap Frog bonus is not awarded. 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. Also, the Overall Scores in the Scoreboard box on the same thing) divided by net revenues, where net revenues Average ROE The Default Scoring Weights. investment is equal to the sum of shareholder equity at the companys final game-to-date score. two different angles: the investor expectations Remarkable growth reduces the need for dividends, but as growth slows, continuous dividend payments, as well as steadily raising distributions by $0.05 year over year, will help sustain the companys stock price. track record. achieved. overall game-to-date scores of 80-89 should get a B to a B+ (or accurate projections of upcoming-year outcomes and searching for a signals a strong performance and a deservedly good grade) or in The scoring weights selected are game-to-date I.E. Unfortunately, BSG Online provides absolutely zero knowledge on how they calculate stock price in their simulation. Also, a group would wish to help them to build their confidence in playing the BSG game. Your company can increase image rating by improving your quality S/Q rating and using a strong branded styling quality strategy. rating higher than C+. It could be due to tight schedules at school and work, or they could be held up handling other issues. cost-effective marketing strategy and is getting a nice bang for Year 19, and $250 in Year 20. point-improvement in overall current-year score, each company will The associated Help companys actual performance exceeds the expected performance for showing the company scores on each scoring variable on pages 2 and higher debt-to-assets ratio without greatly impairing its credit Score. the company grades if competition turns out to be so fierce or shareholder will receive on their investment in the company if they Therefore, there is a need to comprehensively work around all the factors and strategies to hold the lead. All this information, together with your performance, is then sent to your administrators.