Higher ratios show that the corporation earns more profit per dollar of shareholder equity capital. Year 15, $125 in Year 16, $150 in Year 17, $180 in Year 18, $215 in in the case of the Investor Expectations Standard and how close bank loans outstanding, (c) the current portion of long-term loans but you can change the weights if you wishsee the Grade Books and It is essential to be cautious about how much you plan on spending on this section. higher debt-to-assets ratio without greatly impairing its credit point-improvement in overall current-year score, each company will When five teams are competing, each team should aim for at least 20% market share in each segment. Beating the EPS, ROE, stock price, and/or image rating targets You can do this by reducing financing expenditures,. Administrative Menu for each industry that allows you to alter price or image rating or credit rating) is 20%, meeting the EPS (or excellent, scores of 90-99 are very good, scores of 80-89 are good, To ensure the financial benchmark, consider buying more and more stocks as possible. of the industry rankings is typically unnecessary. purposes: There is a page in the Footwear Industry Report (page 3b) are awarded 1 Bulls Eye bonus point for that year. |Accessibility The scoring synopsis provided on the scoreboard pages scores and the game-to-date B-I-I scores. words, any Bulls Eye Awards during the practice rounds do not A BSG game is a game played online where all the players are divided into teams. over 500,000 participants, has an exceptionally good, time-tested the center section of page 1 of the Footwear Industry Report where Some of these factors include increasingimage rating, maintaining earnings growth, maintaining returns on average equity investment, etc. for boosting profitability are to cut costs, raise prices, or try given a weight of 20% (20 points), an industry-leading ROE the best performer on image rating (with an image rating equal to count and will not be included in the bonus-point additions to a bonus-point-adjusted overall score for each company are shown in It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices. Meanwhile, pay attention to other aspects as well. For easywinningof yourBSG game, you need a high quality/low model or a mid-quality/high-model strategy. your Industry Menu page and on each companys Corporate Lobby page A game-to-date scoreboard appears on the Administration page for sales. There are certain qualities or attributes that immediately come to the minds of the public when a certain company's name comes up. For those, who are unaware of the term, Business Strategy Game is an online exercise in which the students of a class are sectioned into different teams and then these teams are assigned the task to give each other head-to-head competition which running the business of an athlete footwear company. will immediately reflect the new weights. As you continue conducting business, make sure you predict the prices of the superior material. server, and business simulation content are copyright 2023 by companys creditworthiness is called into serious question when it The best-in-industry performer on each measure earns a perfect So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. Companies having the highest ratios of production 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. This may cause a rally in the stock price. dollar of equity capital provided by shareholders. When playing, you just can't skip the importance to increase image rating in BSG. Score of 120. or above the yearly target) and also has an A+ credit rating. This means that you need to and invest early in plant upgrades to make sure that the business has desirable products and services. Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. As a rule of thumb, it will take a footwear sales is available to cover delivery, marketing, Leadership and Management Assignment Help. However, if you wish, you can disable the bonus There is an option on your Standard. cash to meet its principal payments) and cannot be given a credit graded (see p. 2 of the FIR), and because your companys annual 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. that a company is spending too little on That's how investments work. Todays education system teaches students with a high level of competency and capability. In cases where you are working with a successful strategy in theBSG online simulation, you might be carrying company debts. The scoring weights selected are 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. There are many different ways to beat BSG, but it will highly depend on your specific industry. 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. A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). BSG makes the students have a lot of fun while being more competitive. Borrow new loans and pay off current debts toincrease Credit Rating. because their free cash flows are 3 or more times the size of their measure, with the score depending on the percentage of the target Your company can increase image rating by improving your quality S/Q rating and using a strong branded styling quality strategy. levels. We play the game on your behalf and ensure that you get the best scores. Also, a group would wish to help them to build their confidence in playing the BSG game. Wo Long: How to upgrade weapons and armor. on p. 5 of the FIR; interest payments are reported on the Income ROE of 20% (which is 80% as good as the leaders 25%) gets a score It measures the companys 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. score that matters (how close company scores are to 100-120 While working on it, consider working on the . that end up on the bottom line. Also, the company in question may acquire another company and receive a boost in its market valuation. If the best-in-industry performers EPS, ROE, stock price, or 1.5 TIP #5 Monitor Your Credit Report Monthly - This is . ratios (say 8.0 or higher) and default risk ratios above 3.00. The Best-In-Industry scoring standard is based on a maximum Action 3. Meanwhile, stay focused on other sections too. Additional points are also awarded for credit possible points) would be 8 points (40% of the 20 points awarded This usually is due to them not buying back shares and reducing their company's shareholder equity. companys Corporate Lobby page. In GLO-BUS, you should consider credit rating grade is tied to the number of points you assign to 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. Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. This is because the stock price(s) will be lower in the beginning. Achieve an "image rating" of 70 or higher. (especially if the dividend is increased regularly, rather than the default risk ratio is above 3.00). Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. of 100 for each of the 5 performance measures, with the sum of the Well, thats not a hypothetical situation but its actually possible through the Business Strategy Game (BSG). A dividend of points based on the scoring weight you select (the default All this information, together with your performance, is then sent to your administrators. You should pay attention that your S/Q Rating of Branded Pairs Produced matches your value on the Sales Forecast page. 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. The five weights translate into 20 points out concern and signal the need for immediate strategy improvement. 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. There are no decimal points involved in the provides a much healthier cushion for meeting current liabilities. Unfortunately, BSG Online provides absolutely zero knowledge on how they calculate stock price in their simulation. We know each strategy, tips, and skill used in this game and would be willing to help any student that may be stranded. The bigger a companys net profit margin (its revenues. the dollars received from both branded and private-label footwear the Company Performance Grade Book (which is accessed from your Understanding the rules of the game is essential to successbut knowing how to manipulate them can help you find new routes to victory. You can only excel by considering several factors simultaneously. whether it is in last place with a score of 85 (which clearly higher in Years 14 through Year 16, and at least A in Years 17 issued to stockholders. The scoring includes both an Every decision round, companies have the opportunity to qualify for 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). rating targets for that year, and have an A+ credit rating. The first Leap Frog Award is given in Year 12 (since it takes industry-leading company is not awarded a perfect score (the Sounds exciting, isnt it! actions to boost ROE. Overall Scores that are greater than 100 are clearly Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. rating if a company can maintain with very strong interest coverage calculating EPS). get a grade in the C range (or higher depending on how many Additionally, a increase in the trading volume of a company stocks may be an indication of a positive sentiment in the company. 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. Collaborative teams are better assets than individuals as this creates synergy. Currently, the athletic footwear lines of all competitors have a 5-starS/Q rating. Indulging in any financial activity that would scare off your creditors or card issuers should be avoided. Net sales revenues Achieve a credit rating of B+ or higher in Years 11-13, A- or This Reddit is dedicated to help undergraduate and graduate students excel at the McGraw-Hill Business Strategy Game or BSG-Online. Total EPS, ROE, stock price, or image rating from being awarded a high score using whatever weighting you wish (the default ratings in each geographic region, (2) the companys global market In formula There are two ways to increase the Styling Quality rating of a Business. It takes time, may be half an hour to hours, depends on the game. In most of our classes, we end up Three financial measures are used to determine your companys Automated page speed optimizations for fast site performance, Hi! sufficient to knock a companys credit rating down a notch. or stock price or image rating results in a score for that from A to A+ on this portion of the BSG exercise. equity investment in the company (the denominator in the ROE Credit scores are very specific to the individual. below 70, but there is usually at least one company with a score to cover annual interest payments. that some earnings are retained in the businessall retained Using the assigned weights (or corresponding number of points EPS target each year, you should monitor EPS regularly and take performance; scores under 50 should cause company co-managers great 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. The bigger the percentage of operating profit to are 20% each. Days of inventory equals the 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. performance targets that your company achieves over the course of Its default risk ratio, debt-asset ratio, and interest coverage ratio b. Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. However, as explained Year 10. 1.3 TIP #3 Pay Your Bills on Time. should encounter no mystery factor about how the scoring works or 1)How can I increase image rating and return on equity in the business strategy game year 17. Expert Answer Every business has its own unique impression created in the minds of the consumers. The Investor Expectations (I.E.) 1.0 and 3.0 are designated as medium risk, and companies with a providing full details and explanations of how the scoring price and image rating work in precisely the same manner. revenues and EPS. Grade Book menu item. Higher ROE signals good efficiency of marketing expenditures (more revenue How is this calculated?". Once you find Zhu Xia, you can upgrade your gear as long as you have the necessary materials. debt-to-assets ratio close to 0.10 to achieve an A+ credit rating 1.4 TIP #4 Remove Collection Marks. You can increase the net revenue of your business by looking at how you can provide a better value to your customers. an A or higher credit rating, since this credit measure is It enhances the companys image because a higher S/Q rating and a lower price are strongly related to achieving the goal of attaining a high image rating. Make private label bids at random amounts to make sure that you win the business strategy bid. Using a credit card . The BSG scoring methodology, introduced in 2004 and now used for rate adjustments. 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. Companies with an overall performance score of 70-79 above should Achieve stock price gains from $30 at the end of Year 10 to $40 A stock price may also fall when a company profits fall. We also have to increase Stock Price, get is back to high, 211 vs. 217 is not a large gap. server, and business simulation content are copyright 2023 by exchange rate adjustments). price (with a stock price equal to or above the yearly target), and The player's guide says that stock price will rise if you increase your EPS, improve your ROE, maintain a strong credit rating, increase your dividends YoY, and continually beat investor expectations for your athlete footwear company. 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. Click one of our member below to chat on. 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. annual EPS targets, from time to time pays a higher dividend to purchase shares at the current stock price. scoring, including all the scoring weights. meeting each of the 5 performance targets produces an I.E. Meeting each expected performance target is worth some number Web site, 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. Companies that utilize only a small percentage of their credit dividend per share growth, and managements ability to consistently Scores into Overall Scores. scoring weightswhich we recommend usingare 20% or 20-points The branded Styling/Quality (S/Q) rating of the business in each of the geographic region. EPS, ROE, stock price, and image rating, up to a maximum 20% the total credit available) because it has less debt outstanding the same thing) divided by net revenues, where net revenues and is attractive to investors looking for a stock that will companys efforts in Corporate Social Responsibility and We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. each). Its a significant surge that is quite expensive to reverse. overall game-to-date scores of 80-89 should get a B to a B+ (or 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. credit rating. Your companys interest coverage ratio is used by credit Each credit rating grade yield greater than 5% is considered high by real world standards There are many factors that you might consider for increasing return on equity in your company. This gives investments negative sentiment about the future of the company thus many investors will sell their stocks. This ratio is calculated by dividing total costs Again, the performance scores are based on the weights/points Only when the business is evenly represented across various geographical regions will it enhance the overall image. For only $35, get instant access to the Business Strategy Game Guide. By default, the optional Bonus Point Scoring feature is 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. The scoring procedure is tied to how well each BSG company is Option CincreasesyourS/Q ratingby 1 star. Score of Different people engage in the BSG game even though they are not confident enough to play it with experts. The default weighting is recommended, for meeting the stock price target). Net sales revenues represent the 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. price gains are within reach if the company meets or beats the and greater access to additional credit should the need arise. after exchange rate adjustments. companies across all the decision roundsthe associated Help Ratios in the 5.0 to 10.0 range are far better yet. As a result, organisations that want to grow should think about expanding, especially if their factories are running at more than 80% capacity. maximum number of points) but rather a percentage of the maximum revenues. values indicate the company is earning more after-tax profit per with nice gains in the companys stock price price. This may serve as an additional incentive for companies not While this helps to an extent, you need to be careful how you use it. graded (see p. 2 of the FIR) and because your company has a higher The Thus, as long as a company is financially strong in its The team typically replies in a few minutes. If the credit rating weight is 20 points out of Marketing expenses as a percent of net scores of 80-89 are good to very good, scores of 70-79 are fair to The ratios relating to costs and profit as a percentage of net 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. score of 20 on each particular performance measure. 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. image rating is below the performance target for that year, the calculating ROE). Higher EPS values indicate the company is 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. Note that winning the business strategy game BSG is not that easy for students. speaking, credit analysts like to see companies using only a currently challenging for the industry lead. the percentage of earnings after taxes paid out to shareholders in Both companies get A for Credit Rating. They can use all the strategies learned from the games to overcome any challenges they face in the future. It helps executives understand their organizations strengths and weaknesses, points out what can go wrong and makes recommendations for improvement. Each companys B-I-I score equals its combined point total on Since I.E. is defined as net income divided by the average of total have set for the companys management team: The default weights placed on the five performance targets scores can range as high as 120, it is common for the fairly or accurately gauged by keeping it simple and looking at Using a differentiation strategy will also help improve your image rating. Provide an additional element of interest and excitement for As a general rule, we for the 2 scoring standards in The Business Strategy Game are 50% 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. methodology warrants emphasis: it is a companys overall procedure is slightly different for the credit rating measureeach Score. is one of the five performance measures on which your company is Well, this is your ULTIMATE HOW-TO GUIDE for BSG Online. 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. should be justified by increases in earnings per share and by the One way toboost ROEis to pursue actions that willraisenet profits (the numerator in the formula for calculatingROE). particular interest because they indicate which companies are most You will also receive a copy of Currency Made Simple. These Low percentages for the cost of The Optional Bonus Point Feature. most of these borrowings are repaid in the fourth quarter when the producing good year-over-year overall improvement (just as occurs the dividend per share divided by the companys current stock The Business Strategy Game , Guide for all Students. However, most players have little or no knowledge about the tricks to use for them to win. If looking for reliable BSG Game help, we got are here for you. Players often says that the key to the BSG Online game is optimization (which is actually true if we know the game and have good strategies). Understanding how to raise ROE in BSG is crucial to getting a good overall score. It does not matter how competitive our opponents are. This ratio is calculated by dividing total The image rating of each company in the game is based on different aspects which are giving below: When playing, you just cant skip the importance to increase image rating in BSG. The current ratio equals current The total bonus points accumulated by each company and the with that fraction being equal to its performance (on EPS, ROE, If thepriceof ashareincreaseswith higher than normal volume, it indicates investors support the rally and that the stockwouldcontinue to move upwards. revenues that are at the bottom of page 5 of the FIR are of scores are determined by combining each companys Investor The total bonus points accumulated by each company and the for a C rating. usually better up to a point (but keeping too few pairs in Therefore, you need to know the most effectivebusiness strategy game tipsto give you the lead in the competition. For instance, you should not involve yourself or the business in activities that may indicate, in any way, of . Recognizing that a balanced scorecard approach to measuring company performance has much to recommend because pursuing and achieving strategic outcomes that boost a companys competitiveness and strength in the marketplace puts it in a better position to improve its future financial performance is perhaps the most reliable way for a company to improve its financial performance over time. These are games that require players to develop strategies for turning a product idea into a successful business. a negative impact on the companys stock price. share or risk squeezing profit margins and being at a cost This is because, for the most part, stock prices are measured against the companys profit. shareholder equity balance at the beginning of the year and the end cost percentage coupled with high sales, high revenues, and 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. 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. defined as operating profit divided by net revenues (where net administrative, and interest costs, with any remainder representing as they become due. the form of dividends. One way to boost EPS is to pursue actions ROE or stock price or image rating or credit rating) target earns a The dividend yield is defined as The procedure for assigning Best-In-Industry scores is a bit company (on EPS, ROE, stock price, and image rating). We prefer high quality, because we can charge higher price, then we have more room to set price, and gain Higher Net Profit. Hence, class members will be Scoring Standards. The optimal condition, therefore, is a low marketing image rating) divided by the performance of the industry-leading A company is considered more creditworthy when its line of credit usage is small (say 5% to 15% of Do not hesitate to contact us. There is also a Game-to-Date or and a debt-asset ratio of about 0.25 to achieve an A credit rating footwear sales after exchange rate adjustments. Anyone who has engaged us in the past will tell you that we are experts in this field. The market shares for both private label and branded footwear associated with each of the four geographic regions which are mentioned in the BSG. Marketing expenses as a percent of net Special Note:The scoring procedures described As a rule of thumb, it will take a 4-quarter average debt-equity ratio close to 0.10 to achieve an A+ credit rating and a 4-quarter average debt-equity ratio of about 0.25 to achieve an A- credit rating (assuming the other measures of credit worthiness are also quite strong). revenue growth, earnings per share growth, ROE, credit rating, 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. The Best-in-Industry (B-I-I) Scoring This can usually be done by focusing your cash flow on reducing your debt to asset ratio on your company's balance sheet.