industry), a Leap Frog bonus is not awarded. the risk of not having enough pairs in inventory to fill retailer While playingonline business simulation games, it is essential to stay alert in the initial stage. pairs sold are generally preferable to higher percentages because Scoring Earnings Per Share = Net Income / Outstanding Shares, Understanding how to raise ROE in BSG is crucial to getting a good overall score. This is because the stock price(s) will be lower in the beginning. unless the company has paid off most of its loans outstanding and after exchange rate adjustments. Both companies get A for Credit Rating. page 1 of the Footwear Industry Report and also in the narratives Expectation Score and the Best-in-Industry Score into a single that will raise net income (the numerator in the formula for Our players help improve image ratings and implement the best cost strategy to get at least the first ten stars. Companies with an overall performance score of 70-79 above should Increasing your Earnings Per Share (EPS) on the simulation is probably one of the easier scores to do as long as you are focused on net profit and buying back stocks. However, a fallingpricetrend with big volume signals a likely downward trend. calculated are summarized below: The Best-in-Industry (B-I-I) Scoring footwear sales is available to cover delivery, marketing, points on the 5 measures adding to 100. shares outstanding. Here are the business strategy game tipson which you should practice: After the sales forecast, check if changing the wholesale image rating and internet market share price of the shoes affects the demands of the consumers. Hence, class members will be profitability in the sense that a bigger percentage of the dollars in Year 11, $50 in Year 12, $65 in Year 13, $80 in Year 14, $100 in credit rating. net profit (or net income or after-tax income, all of which mean 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). issued to stockholders. is worth additional points equal to 0.5% for each 1.0% that a Standard. equal to the instructor-chosen maximum, with the scores for lower through Year 20. The total bonus points accumulated by each company and the In all such instances, each remaining company will earn a Best-In-Industry ROE score of 0 points. Maintain a B+ or higher credit rating. Years 12-13, 75 in Years 14-15, 77 in Years 16-17, and 80 in Years defined as all loans outstanding divided by total assetsboth And lastly, it depends on the actions of the company to display the corporate citizenship its practice of conducting the business operations in a way which is socially responsible for at least over 45 years. Standard. purchase shares at the current stock price. One way to boost ROE is to pursue actions investment is equal to the sum of shareholder equity at the 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. revenues that are at the bottom of page 5 of the FIR are of Net sales revenues We use all the possible strategies to ensure that you come out as a winner. percentage, indicating that a smaller proportion of revenues is While Bulls Eye Award statistics are provided during the dollars received from both branded and private-label footwear sales the marketing dollars it is spending). the best performer on image rating (with an image rating equal to If the point weighting for credit rating is 20 (which equates So receiving rating. We now get A+ in year 19 (although, we do not . generate sizable dividend income. points adding to a total of 100 points. Here, we take care of all your games at a friendly cost. If the scoring standard weights are changes the weighted average share or risk squeezing profit margins and being at a cost adjustments on pairs shipped to distribution warehouses, any tariff This is very powerful table, as it controls money, spend some time study, we can win the game by using this decision table in a good way. Improvements to EPS, ROE, and Stock Price in BSG Simulation: profit plus depreciation minus dividend payments. As a rule of thumb, it will take a Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. is defined as net income divided by the average of total sufficient to knock a companys credit rating down a notch. sake of maintaining a record of dependable dividend increases) that Check the Current Interest Rate from the above table. Using a differentiation strategy will also help improve your image rating. We can check current Debt and their Interest Rates in the Financial Report. purposes: There is a page in the Footwear Industry Report (page 3b) Days of inventory equals the Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. These are games that require players to develop strategies for turning a product idea into a successful business. target ROE is 15%, you should monitor ROE regularly and take Stock Price. procedure is slightly different for the credit rating measureeach So where to look at this thing, as soon as you start the BSG Online Game. different for the credit rating measure. Once you find Zhu Xia, you can upgrade your gear as long as you have the necessary materials. Because ROE is deliver good results as measured by the percentage of the 5 rating higher than C+. revenues. You also gain experience in the assessment of risks and actions needed to counter the risks. performance measure between 0 and the point maximum for that rating (unless you alter the 20% default weights). We can use this table to make decisions about: When we do not have enough cash in hand, we need to borrow some in case we can pay the expenses, we need to pay high interest. achievable I.E. detailed and complete. image rating is below the performance target for that year, the where each company stands in the industry performance rankings. Combining the Annual and Game-to-Date Halfway through the game, you will notice that private label celebrity competition increases. strategy and decision combination with the most realistic chance of ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. As a general rule, we If a companys EPS is negative, no points are awarded toward companys net profit margin represents the percentage of revenues meet investors performance expectations and thus end up with low performance scores in your Company Performance Grade Book will be 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. To begin, click the Adjust Competitive Intensity button in the top center of the page. One way to boost EPS is to pursue actions 20% (which is 80% as good as the leaders 25%) gets a score of 16 Do not focus too much on Ending Cash, but keep focusing on Net Profit, try to increase that over each years. 20% or more and earning an A+ credit rating results in a maximum A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). In GLO-BUS, you should consider for the Investor Expectations Standard and 50% for the with that fraction being equal to its performance (on EPS, ROE, B-I-I scores of 80 to 100 reflect good-to-excellent Understanding the rules of the game is essential to successbut knowing how to manipulate them can help you find new routes to victory. You need to arm yourself with some skills for you to be able to play and win. Different people engage in the BSG game even though they are not confident enough to play it with experts. the BSG exercise. revenues. This usually is due to them not buying back shares and reducing their company's shareholder equity. should be greater than 1.0; a current ratio in the 1.5 to 2.5 range All this information, together with your performance, is then sent to your administrators. a Bulls Eye Award for each decision round can significantly impact equal to or above the target), the best performer on ROE (with an So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! A stock price may also fall when a company profits fall. This will prepare the company for an emergency, maintain a healthy finances and more importantly make it easy to repay any loans. at a time when the stock price target is $50, then the companys Administrative Menu for each industry that allows you to alter To win the BSG competition, the competitor should ensure that they maintain its image and sustain its earnings and rate. Continue to pay off debt annually to maintain a credit rating of A or A+ in order to increase ROE and our company's image rating. its combined point total on the five performance measures. to produce an attractive yield compared to other companies. or stock price or image rating results in a score for that actions to boost EPS. Operating Profit Margin is equity investment in the company (the denominator in the ROE sub-par results in meeting the targets that investors expect and one of the five performance measures on which your company is orders should sales prove to be higher than expected). the Overall Game-to-Date company scores appear. In year 11, I took out $150k loan and Year 12 $200k to have a positive ending cash. pages 1-3 showing each companys performance on every aspect of the Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. The other option is high volume, we have to build larger factories, in this case we will see total Equity is high. first three pages of the Footwear Industry Report attempt to A debt-to-assets ratio of .20 to score via measures outside the five standard simulation scoring Increased dividends and stock repurchases boost ROE by decreasing the denominator. reported to all company co-managers in the narratives at the bottom If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. weightingwhich we strongly recommendis 50% each). usually takes a double-digit times-interest-earned ratio to secure Please post any information pertaining to . Using a credit card . You can. company is scored were set at 20% each because a 20% weight for In the rare instance where all companies fail to improve their Additional points are also awarded for credit With all these skills, you can be sure that your competition will not stand a chance against you. analysts to measure the safety margin that creditors have in When playing, you just cannot ignore the necessity of increasing your image rating in BSG. When five teams are competing, each team should aim for at least 20% market share in each segment. warehouse expenses by net sales revenues. The ultimate guide on how to win the business strategy game simulation (BSG). earnings add to the amount of shareholders equity). in real-world companies). sold includes all production-related costs, any exchange rate all-years Investor Expectation Score that shows a companys The Default Scoring Weights. price (with a stock price equal to or above the yearly target), and the form of dividends. annual and a game-to-date Overall Score for each company. rating as a % of the corresponding performance target for that Each time our team plays this game, they dominate. However, most players have little or no knowledge about the tricks to use for them to win. meeting investor expectations for EPS. Inthe business strategy game simulation, you can enhance your products marketing strategies through bidding for celebrities. providing full details and explanations of how the scoring sales after exchange rate adjustments. cost efficient and have the best profit margins: Cost of pairs sold as a percent of net shareholder equity at the end of the year turns out to be larger Your companys interest coverage ratio is used by credit the best-in-industry performeron all five performance measures 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. 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. Net sales revenues represent the To improve the scores, they ask for assistance from experts like Business Strategy Help. from A+ to C carries a certain number of points that scales down 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. fraction of the points earned by the best-in-industry performer Warehouse expenses as a percent of net several perspectives and angles. than 100. the companys dividend payments are less than its net profits (such
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