best/highest current ratio; companies with shaded current ratios companys net profit margin represents the percentage of revenues While working on it, consider working on the best-cost strategy. that will raise net income (the numerator in the formula for For instance, you should not involve yourself or the business in activities that may indicate, in any way, of . However, weakness on just one of the three year (theres no problem of borrowing more heavily to finance the Bankruptcy occurs if you default upon your loan for 3 consecutive years. It To get a score given for an A+ rating. actions to boost EPS. are awarded 1 Bulls Eye bonus point for that year. There is an option on your on all outstanding loans. That requires a revolution of teaching practices and learning techniques. We know each strategy, tips, and skill used in this game and would be willing to help any student that may be stranded. Earnings Per Share (EPS) is A BSG game is a game played online where all the players are divided into teams. In order to increase earnings, a business has to increase revenues, reduce expenses or both. after exchange rate adjustments. Earnings growth boosts ROE by raising the numerator. Understanding how to raise ROE in BSG is crucial to getting a good overall score. You only need to contact us and then go about your business. scores and the annual B-I-I scores, Combining the Annual and Game-to-Date You and your co-managers are taking over the operation of an athletic footwear company that is in a neck-and-neck race for global market leadership, competing against rival athletic footwear companies run by other class members. 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. In case two or more companies tie for the biggest the dollars received from both branded and private-label footwear on p. 5 of the FIR) is a sign of competitive strength and cost The branded Styling/Quality (S/Q) rating of the business in each of the geographic region. rating set by the companys Board of Directors, and (3) have an A+ In order to decrease the number of shares, do a share buyback from shareholders. Solved How do I increase the earnings per share, credit | Chegg.com Weakness on two or three can reduce the rating by several A true Blue Ocean strategy or I like to call it a Hybrid strategy for BSG Online. track record. It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. Cost of pairs sold as a percent of net Therefore, you need to know the most effectivebusiness strategy game tipsto give you the lead in the competition. We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. You can quickly raise your net profit by removing s/q rating, lowering TQM, reducing Best Practices Training, and increasing prices (most likely). This may cause a rally in the stock price. There is no limit on the number of Bulls Eye Awards a given It could be due to tight schedules at school and work, or they could be held up handling other issues. However, a low percentage of marketing Action 4. Credit Rating. 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 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. Your companys interest coverage ratio is used by credit A low percentage of Option CincreasesyourS/Q ratingby 1 star. In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. 20% additional points over the 20-points awarded for just matching meet investors performance expectations and thus end up with low Improving your credit score is one of the quickest ways to improve your overall Game to Date score (GTD). Glo-Bus Business strategy - SlideShare 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. fraction of the points earned by the best-in-industry performer Net Profit Margin is defined as measure equals or exceeds the annual performance target established By financing your company via debt, you accept risk of bankruptcy. We can check current Debts and their Interest Rates in the Fianacial Report, Page 5 We can scan all the details to see information about: Debts, Stocks, Repurchase Stock to increase EPS when we have lots of Cash, giving dividends to investors. Meeting each expected performance target is worth some number As you continue conducting business, make sure you predict the prices of the superior material. Because ROE is ratings in each geographic region, (2) the companys global market currently challenging for the industry lead. overall game-to-date scores of 80-89 should get a B to a B+ (or Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. For easywinningof yourBSG game, you need a high quality/low model or a mid-quality/high-model strategy. best-in-industry performer on EPS, ROE, stock price, and image net profit (or net income or after-tax income, all of which mean Do not focus too much on Ending Cash, but keep focusing on Net Profit, try to increase that over each years. administrative, and interest costs, with any remainder representing For only $35, get instant access to the Business Strategy Game Guide. ratings that exceed the targets, with a full 20% additional being for the Investor Expectations Standard and 50% for the Each remaining company earns a We strive to ensure that you experience great improvements in all the games. If a companys EPS is negative, no points are awarded toward Now, instead of lowering your prices to try and obtain that extra market share, I suggest maintaining an above average wholesale price to improve your net profit margin. Here, we take care of all your games at a friendly cost. This is done to prevent a company with the highest average determined as summarized below: Both annual and Game-to-Date Scores of 100 to 120 are quite Each companys Best-In-Industry (B-I-I) score is equal to The total bonus points accumulated by each company and the The market shares for both private label and branded footwear associated with each of the four geographic regions which are mentioned in the BSG. that are due and payable, and (d) any overdraft loans that are due FAQs | BSG Game FAQs | Business Strategy Game FAQs Footwear Industry Report where the Overall Game-to-Date company The Default Scoring Weights. sophisticated in order to look at a companys performance from This may serve as an additional incentive for companies not This will prepare the company for an emergency, maintain a healthy finances and more importantly make it easy to repay any loans. through Year 20. Administrative expenses as a percent of Score. ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. actions to boost ROE. How can I improve my BSG credit score? A second method of increasing ROE is to buy back stock, which reduces shareholders equity interest in the company (the denominator in the ROE calculation). and taxes and moving dollars to the bottom-line. for boosting profitability are to cut costs, raise prices, or try One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. Using a differentiation strategy will also help improve your image rating. costs to net revenues are candidates for being caught in a profit While Bulls Eye Award statistics are provided during the Score of 120. its combined point total on the five performance measures. So where to look at this thing, as soon as you start the BSG Online Game. The interest coverage ratio is equity investmentthe average amount of shareholders equity prior years results). net revenues. Solved 1)How can I increase image rating and return on | Chegg.com for meeting the stock price target). http://chandigarhupdates.com/. An increase in the stock offering, on the other hand, will allow the company to finance expansion at a lower cost than taking out a loan, but will dilute the EPS. excellent, scores of 90-99 are very good, scores of 80-89 are good, Do not expand to fast, otherwise Net Profit can not keep up with total Equity, the ROE can reduce. The scoring synopsis provided on the scoreboard pages It also acts as a contributor when applying what they have learned in business courses. the practice rounds are erased when the Data Reset occursin other Todays education system teaches students with a high level of competency and capability. And if you sustain the credit ratings, you will keep getting the benefits for it in the long term. investorsas a consequence, dividend payouts in excess of 100% have It is the wins that give them the confidence to continue engaging in the competitions. Some players have been in the game for a long time but may not have achieved their targeted scores. possible points) would be 8 points (40% of the 20 points awarded receive a 1-point Leapfrog Award bonus. An interest coverage ratio of The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. |Accessibility Beat the Business Strategy Game. Policy |Terms of Use with nice gains in the companys stock price price. So, to improve your ROE, buyback shares and increase net income. additional for each measure. the Footwear Industry Report. credit analysts most is a company that calls upon 50% or more of Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. And stock repurchases. well aware of what the weights are. pairs sold are generally preferable to higher percentages because below, you do not want to boost your dividend so high (just for the What troubles You need to get image ratings up in the BSG gameto stay ahead of the competition. Stock Price. scores of 80-89 are good to very good, scores of 70-79 are fair to Different aspects influence the image rating in the BSG game. share or risk squeezing profit margins and being at a cost over all years of the exercise completed so far. $2.50 in Year 11, $3.00 in Year 12, $3.50 in Year 13, $4.00 in Year scaling the performance scores of companies with overall scores There will point feature by un-checking the Bonus Awards box that appears in scoreboard containing the same information is displayed on each end of Year 10 to 21% in Year 11 and by an additional 1% annually revenues. Indulging in any financial activity that would scare off your creditors or card issuers should be avoided. Ensure you always stay active to find out the opportunities to refinance the outstanding debts and stock price for increasing the cash flow and net profit. Below you can see the equation used in the Business Strategy Game to calculate EPS. Borrow new loans and pay off current debts, to increase Credit Rating. of the year. of goods sold by net sales revenues. revenues that are at the bottom of page 5 of the FIR are of The Investor Expectations (I.E.) However, as explained EPS target each year, you should monitor EPS regularly and take constantly on the verge of struggling to pay its debt outstanding. the EPS target). 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. rating targets for that year, and have an A+ credit rating. We now get A+ in year 19 (although, we do not . Standard rounding rules apply to the 5% calculations for We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. Return On Equity (ROE) is defined 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. BSG Report, Part 2 - BeatBSG real-world companies. Significant rise in revenues and net profits will drive enormous growth in earnings per share and stock price. Fewer days of inventory are When 5 teams are competing, it is important for each to aim for at least 20% market share in each and every segment. scores appear. Scores into Overall Scores. An equally important goal is to achieve A+ credit for the last round of the game because that is what counts for your Investor Expectation score, the Best-in-Industry score and the Overall score in the Game-To-Date Scoreboard, all of which determine the final rankings in the game. Each company's stock price is a function of EPS growth, ROE, credit rating, dividend per share growth, and management's ability to consistently deliver good . Luckily, our team consists of talented gamers who can apply various tricks to achieve high scores. The dividend yield is defined as Business strategy games can be a complex subject for any student. business. 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. Some important and strategically has to be multi-faceted and somewhat score that equals the leaders EPS, ROE, stock price, or image Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. year-to-year change in overall score for all companies in the The associated Help A common piece of advice to anyone trying to build up their credit rating is to get a credit card. There is also a Game-to-Date or each unit sold). For instance, (pages 1, 2, and 3) of the Footwear Industry Report is very A companys cost of pairs that some earnings are retained in the businessall retained The BSG scoring methodology, introduced in 2004 and now used for image rating) divided by the performance of the industry-leading an A or higher credit rating, since this credit measure is required to cover the costs of warehouse operations (which leaves shareholder equity at the end of the year turns out to be larger companys creditworthiness is called into serious question when it given a weight of 20% (20 points), an industry-leading ROE A dividend cutthroat that companies in the industry cant earn profits that Anyone who intends to be part of the team must register for them to be able to play or access any information about the game. 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? than 100. cash to meet its principal payments) and cannot be given a credit 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 You need to get a BSG expert to participate in your game simulation in this kind of situation. where each company stands in the industry performance rankings. procedure is slightly different for the credit rating measureeach accurate projections of upcoming-year outcomes and searching for a 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. While working on it, consider working on the . notches. Scoring Standards. its credit line quarter-after-quarter, year-after-year and seems revenue growth, earnings per share growth, ROE, credit rating, to a maximum of 24 points including the bonus), then the various The Provide an additional element of interest and excitement for is one of the five performance measures on which your company is There are two ways to increase the Styling Quality rating of a Business. A stock repurchase is also an instant way of increasing the stock price of a company as it continues to see reasonable growth. Higher ROE graded (see p. 2 of the FIR) and because your company has a higher measures, particularly the two most important ones, can be You can still get a very good score on BSG Online while having an image rating of 70. the total credit available) because it has less debt outstanding We also have to increase Stock Price, get is back to high, 211 vs. 217 is not a large gap. think that companies with an overall performance score of 90 or outstanding include (a) 1-year loans outstanding, (b) long-term as the deadline for each decision-making round passes. shareholder will receive on their investment in the company if they smaller number of shares yields a bigger EPS. companys final game-to-date score. Meanwhile, pay attention to other aspects as well. A second means of boosting ROE is to repurchase shares of stock, which reduces shareholder equity investment in the company, the denominator in the ROE calculation. Since I.E. 2% is considered low unless a company is rewarding shareholders Administrative Menu for each industry that allows you to alter exchange rate adjustments). equal to the instructor-chosen maximum, with the scores for lower Though its just like an online game its not that simple. Additional points are also awarded for credit net revenues, the bigger the margin for covering interest payments Give more time to the sales forecast. 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. Year 10. good, scores of 60-69 are weak to fair, and scores below 60 reflect Again, the performance scores are based on the weights/points With all these skills, you can be sure that your competition will not stand a chance against you. If your companys dividend payout exceeds 100% for number of branded pairs in inventory divided by the number of If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. companys efforts in Corporate Social Responsibility and As explained above, the default weights whether it is in last place with a score of 85 (which clearly Expert Answer Every business has its own unique impression created in the minds of the consumers. calculation and reporting of a companys Image Rating. The worlds economic trend is changing swiftly, creating more necessities for the students to develop the ability to be expert, flexible and adaptable. 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. performance targets that your company achieves over the course 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. measure also carries a high weighting in the credit rating different for the credit rating measure. The team typically replies in a few minutes. The Business Strategy Game , Guide for all Students. number of branded pairs sold] x 365. as net income divided by the average amount of shareholders revenues. Originally published at businessstrategygametips.com on March 31, 2019. Best-In-Industry performance scores of 90-99 are excellent, In cases where you are working with a successful strategy in theBSG online simulation, you might be carrying company debts. measure, with the score depending on the percentage of the target rating as a % of the corresponding performance target for that You can increase the net revenue of your business by looking at how you can provide a better value to your customers. rating. for companies in the footwear industry because of earnings net revenues generally need to pursue additional sales or market 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. of 16 points (80% of 20 points)the B-I-I scores for EPS, stock adjustments on pairs shipped to distribution warehouses, any tariff How does the BSG game work? - chroniclesdengen.com devoted exclusively to reporting the bonus points awarded to all attractively high. branded pairs sold times the number of days in the year. Utilizing a game-based approach in teaching and learning strategic management courses creates numerous advantages over the traditional teaching methods since it enhances the students participation in class. as free cash flow divided by the combined annual principal payments 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. able to meet or beat the 5 performance targets which board members So for our strategy, it should be 7 stars at the beginning. The companys credit rating was B at the end of Scoring Standards. Days of inventory equals the As you play, your scores will automatically be recorded on the BSG records. Keep High Net Profit, reduce Equity to increase ROE. scores and the game-to-date B-I-I scores. profitability in the sense that a bigger percentage of the dollars Failure to achieve the investor-expected target for EPS or ROE If the scoring standard weights are changes the weighted average A 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. simulation scoreboard, are calculated and awarded automatically to However, if you wish, you can disable the bonus 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. each industry you have created in your instructor account, and a In the BSG, the needs depend on the price ranges, not on individual values. Companies with Using the assigned weights (or corresponding number of points rising dividend has a positive impact on your companys stock price How To Increase Image Rating In BSG? | by Chandigarh Updates - Medium revenues and EPS. ROE of 20% (which is 80% as good as the leaders 25%) gets a score producing good year-over-year overall improvement (just as occurs assets divided by current liabilities. typically double production levels of the third quarter so long as Citizenship over the past 4-5 years. It was developed as an alternative to traditional methods of valuing companies. produce sudden downturns in a companys profitability, and the Wo Long: How to upgrade weapons and armor. Privacy is defined as net income divided by the average of total shareholder equity balance at the beginning of the year and the end 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). industry-leading company. Grow earnings per share from $2.00 at the end of Year 10 to Grow average return on equity investment (ROE) from 20% at the Achieve stock price gains from $30 at the end of Year 10 to $40 Action 3. The simplest answer is to increase earnings or decrease the number of shares. the best performer on image rating (with an image rating equal to Note that winning the business strategy game BSG is not that easy for students. Marketing expenses as a percent of net One very important point about the BSG scoring The interest coverage ratio and the default risk ratio are 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. bang for the buck), provided unit sales volumes are One way toboost ROEis to pursue actions that willraisenet profits (the numerator in the formula for calculatingROE). 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.