Winning your Business Strategy Game is not easy as it involves wide-ranging decisions on various aspects of the companys operations. We had a bunch of copycats in practice year 12, but nobody has figured our profit-maximizing, low-cost strategy, and now theyre pursuing higher models in the real game. Best-Strategy Invitational High-performing companies worldwide face off in a 2-week competition hosted 3 times a year by the BSG author team. The higher your celebrity endorsement value for a specific region, the more your advantage in attracting buyers to purchase your branded footwear. Concerning changing others values, I recommend reading my initial post where I have explained everything in detail. Often provided as part of an integrated enterprise resource planning (ERP) suite of business applications, a WMS can support and help to optimize every aspect of warehouse management. In 2020 digital game sales outpaced physical sales for the first time. And I would not build another plant, rather increase capacity in the plants that you already built. Also, make decisions about the number of models, then the price. And you can basically never have enough capacity for private label. These three strategies can help. Worst case, all the demand is already satisfied in your region before your shoes at a certain price is being considered. I followed your recommendations, and I have a good rank. We keep the Mission which we built from last 8 years. You basically do the same thing over and over again, for every decision round. Looking at the North America column, you now have to plug in your values for Wholesale Price, S/Q Rating, Models Available, etc. ? We have good market share in NA and, last year, we needed to ship the rest of the shoes from AP (incurring in shipping and tariffs costs, hence, the thought of adding capacity in LA). After you have decided to which region to ship your shoes to, go ahead and set your Superior Materials Usage value and your Enhanced Styling / Features value. Dont forget to upgrade your plants as a strategy. Thank you in advance! After you are done, move on the left side and do the same for your internet sales. ROE indicates how much profit is generated with the investments that shareholders made. It can also be crippling if leaders . Business Strategy Game - Week 5 (Year 14) Commissar BRO 9.95K subscribers 10K views 6 years ago And so we creep into Year 14. More capacity also brings down your costs. From round 2, there is a risk that other groups can set the same strategy with the winner can be you. Sometimes thats cutting expenses, sometimes thats increasing expenses (even though it might not make sense at first). Plant Capacity / Upgrades. Okay. However, it is not necessary and Option C is definitely more effective. We have good Cash in hand over 100 million each years. So, how can you win the BSG game? Hi, havr the highest stock price, image rating at 90, A+ still, and double digit EPS. Yeah I had that in the first weeks as well. The cost of the game varies depending on the version and the number of players, but typically ranges from $50 to $100. Moreover, this may be a lesson in the real world of business as everything comes with quality, models, and price. You can ignore the Internet Marketing and Wholesale Marketing pages because they will just reflect your internet and wholesale decisions that you already plugged in on the previous pages. An ingenious business strategy for your team will help your team members to appreciate the significance of the strategy, identify the kinds of trade-offs needed, and demonstrating that with limited resources, not every project can be pursued. Examples, Strategy and Warehousing - Supply Chain Brief I would then adjust the Percentage of Superior Materials to whatever is needed to match my S/Q Rating with the value plugged in on the Sales Forecast page. You might think that using green footwear materials or using recycled boxing / packaging is a good decision, especially with the currently ongoing environmental debates. After that, loot to the left of screen to check if we have high Net Profit. Okay! Again, maximizing net profit is all you care about with our strategy determined at the beginning. We are reaching the last decision round and would like some hints on how to boost net profits for the last year and gain some extra points. The following tips can help you get around the BSG and possibly be the winner. Leave everything else unchanged. Most of the decisions you can make here are a waste of money and will not benefit your company. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. Hello, Strategic warehousing impacts all warehouse operations, from inventory management to order fulfillment. Let us move on to the tricky part of this decision page. Besides, you dont have to spend more on high-quality materials. It almost worked TOO WELL. If so, we need to start building a new factory in LA, eg. . Do this for all the four regions. Texas A&M University, Corpus Christi. On this screen, you can handle your financial decisions for your company. That being said, when you go with the strategy explained in my post, you will have maximized profits. Hence, try to keep your internet price at least 40% higher than your wholesale price. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. If you really need money, I would rather advise you to issue some of your stock. NEVER do this. My friend and I walk through the simulation on how it works. Start off with the values that you know for sure: For the high quality, low models strategy, I recommend starting off with a S/Q rating of 7 stars and 50 models available. congrats on your success! More than two groups following the same strategy suffer the same difficulties since they create direct competition among their target market. . Do you have any suggestions? But this year the shipping is too high from AP to LA so I cannot make any money from LA. (Which affects all 5 factors: EPS, ROE, Image Rating, Credit Rating and Stock Prices). BSG Game Tips | Business Strategy Game Tips | BSG Game Help If you see little action on the celebrity market, go ahead and get your celebrities for the lowest price possible ($500). Sometimes, clearing your beginning inventory at a discount will boost your profits. If not, see what positive percentage yields the highest profit for you. When you found the best combination to produce your shoes at the lowest cost possible while meeting the S/Q rating requirement, move to the Private-Label Bids section. like should I just follow your tips through all because I kind of get on a bad start. So I doubt on his strategy. This means, you have a channel conflict, meaning that your Retail Outlets number will decrease in the next year and less retailers are willing to sell your shoes. However, with effective BSG simulation tips, you can keep your company ahead of the competition. It was set Pay Dividends $1.00, which turned out 20,000k in total. Optimizing your values is the essence of the game, even though it might be very time-consuming. My team and I are going to the second round of decisions, so I think were still on time to switch towards another area in the market. You dont have to care about your retail outlets anymore so adjust the price so maximize your net profit, without the 40% rule. By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. I am in Y12, and I am adjusting for Y13. internet-marketing B Company- Year 11 Heip Print save | Chegg.com We also learn that Loans from previous years may have higher interest rate, we can borrow new loans to pay off old debts, and get higher Credit Rating because we can pay loans. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. This way, it becomes a living guide for decision-making for the entire company. Thats one of the things you should never do because you can always use capacity. Id also like to point out that it appears the developers threw out NAFTA in the new version, so tariffs hurt pretty bad in Latin America. in year 17-18-19 and 20). Therefore, the first set of decisions your team of managers makes is for year 11. If you have beginning inventory from last year (you did not sell all your shoes), try and use the Inventory Clearance option in the lower half of the page. Thanks a lot! If it increases your profits, leave it at Yes, otherwise set it to No. Is it too late to reduce that to 50 as you suggested in your recommendation? You now need the forecasted Regional Sales Volume for both the Internet Segments and Wholesale Segments in all four regions that you wrote down earlier. (In Y11, I did the 5-year loan with 12,000k (7% interest). So, play around and find the best combination for your given S/Q rating that yields the highest net profit. im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. How can the company lead the market in 10 years? I personally find it easier to pursue and had more success with it in the past. When evaluating the 3PL provider in charge of your pharmaceutical distribution warehouse, safety is the name of the game. You need your capacity and it is never a good idea to sell your existing capacity. Theres everything explained in detail. Thanks a lot! and A-P plant, focus on your Total Branded Production Needed to Achieve Year XX Sales Forecast section on the lower half of the page. Five ways that warehouse strategy can benefit your business include: Inventory Management Accuracy Price Stabilizing Tools Technology for Packing & Processing Locations that Meet Your Needs Outsourcing to Fulfillment Services Net Revenue of 52.76, but cost of 25.43; 3.16 for warehouse; 10.50 for marketing; 1.16 for Admin, make the Net profit of 12.53. If you happen to end up with a large surplus of shoes the next year, lower your 1.2 multiplier a little bit to 1.18. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. But this year I have a lot of cash on hand, I upgraded my plant, should I also build the LA plant although I dont need that much capacity at the moment? Through the games, we learn more in-depth knowledge and skills in making decision in big business fields, from Corporate Social Responsibility, to Sales Forecast, which is very important. The S/Q upgrade is the best option if you choose high-quality strategies, while setup cost reduction is ideal if you decide to have several models. Economic Impact of Hurricane Harvey and Hurricane Irma, Temporary Oil Price Changes Hold Back Consumer Spending. Each decision period in the BSG represents a year, and the company you will run began its operations 10 years ago. So, after expansion of new factory in LA with 120 million, we reduce the number of shares to increase EPS. Exactly. In addition, you have the option to repurchase your stock. I started with 250 models and S/Q rating of 5. While you already have a good estimate of how many shoes you are going to sell in each region, you still need to consider your rejected pairs during production. Hence, make sure to plug in every possible value to reach the highest net profit possible. G-Brand will continue to make all efforts to use good materials which environment friendly. I will explain soon, how to increase plant capacity and why we need the capacity for private label. Hi, thanks for the great strategy! Keep track of total Net Profit to have enough money to build new factory, or we can always borrow to do so. Keep in mind that you are managing a multi-national company, and shareholders are not interested in dividends but the stock price. If you have any questions, feel free to come back and ask them. However, if you loose and the share price will go down. The Strategic Role of Warehouse Management in the Supply Chain Models Available weighted average Wholesale Wholesale Price to Retailers span Marketing Brand Advertising (5000 Decisions Mail-in Rebate 9 to $15 por part Delivery Time (1 to 4 wek delivery Retailer Support (50 to $10000 Retail Outlets witing to cry your brand Marketing variables de termined by prior year Celebrity Appeal am creeper Do I need to change another setting on another page for this to remain positive? If you demand for branded production is met, put everything else into private label to make sure you dont have unused capacity. Winning the BSG game is essential. We will work tirelessly to ensure that our shoes are within reach of purchasing and get the high quality shoes with very large selection. And should I do stock repurchase this year? We are doing well, so Stock Price is high too, over 120, we will buy back some with extra money, cash in hand of G-Brand will be over 150 million every years. View Distribution & Warehouse.pdf from MGMT 5355 at Texas A&M University, Corpus Christi. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. The positive impact that such a strategy has on the company's image rating, provided the company spends a meaningful amount on socially responsible activities and such spending is sustained over a multi-year period After you have done this, play around with the values for Wholesale Price, Advertising Budget, Rebate Offer, and Retailer Support (increase/decrease by 100s only, as everything else makes no sense). After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. We do not focus on rebate, time of delivery. You basically determine and run the market. I would look at the Margin Over Direct Costs value at the very bottom of the page to see where it is most profitable to ship your shoes to. Otherwise you will not sell any shoe either. For only $35, get instant access to the Business Strategy Game Guide. We do not leave it in bank or safe. Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. Build new factory in LA and upgrade to C and one more, may be D. Keep NA and LA for controlling Private Label, this year will also requires high S/Q so we have good advantages. How can you apply the ancient wise in the Arts of War of Sun Tzu? Same for your superior material. One time, I was able to increase my net profit by lowering TQM / Six Sigma Quality Program to $0.20 and increasing Percentage of Superior Materials to maintain my S/Q Rating. Study on the go. I would like to ask you about the Dividends. Repurchasing stock will boost both your EPS and ROE. Branded Distribution To do so, G-Brand has to improve on the effectiveness of its operation, especially increasing Net Profit higher than ratio of expanding its Factories. Cost of pair sold, Ware house expenses, Marketing expenses, and Administrative expenses, all the 4 key contribute to Operation Cost. The key factors need to be considers is Cost of Branded Pairs Sold, e.g. If you have any questions, suggestions, or comments feel free to comment and I will do my best to help you out. You can still ship pairs from LA to somewhere else if needed. Hence, it should be your goal to price your shoes lower than everyone else and take their market share so that other companies will not sell any private-label shoe in this region. Also, G-Brand need to keep high market shares, year 17 market shares are reduced, but G-Brand has get back to Top in Year 18. Your team members will realize that the final decision usually involves compromising between what is needed for the overall company and personal preferences. Warehouse and Distribution Plan Strategies unfortunately I have no experience with adjusting to my strategy in the late-game. That combined will give you a good boost for the last year. We were actually thinking on building capacity in LA for next year, however, two of the other teams already built capacity for 6,000 pairs in total (we are only 4 teams in total). We need to adjust the number of productions to optimal these decisions. Let me walk you through the various decision pages and explain you how to optimize each entry.

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