business strategy game distribution and warehouse

Each decision period in the BSG represents a year, and the company you will run began its operations 10 years ago. However, do not price your shoes too high, so that your competitors have a lower price than you and will sell their shoes first. However, you must tie your values and settle for the best combination to optimize your net profit. Optimizing your values is the essence of the game, even though it might be very time-consuming. However, if you loose and the share price will go down. I let the rest remain the same in the entry. Quiz 2 Chapters 1 an 2.docx. Business Strategy Game - Group 4.docx - Course Hero However, if you want to do it more precisely, note down each industrys percentage change over the years and use this number instead of the +2%. PS: I do the 5-year-loan 12,000k in Y11 (7% interest); In year 12, I paid #1 Long-Term (early payment) 12k at 8.2% AND borrow 70,000k 5-year-loan at 4.5%. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. Texas A&M University, Corpus Christi. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. Here, you will plug in your previously calculated regional total sales volume for each region. Looking at Company Operating Report, Distribution and Warehouse Reports, we see Cost of Branded Pairs Sold in Year 18 is $25 and Warehouse Operating Expenses is 3.71. You can know your strategy in several ways. . Be careful: Sometimes, especially for advertising, numbers that are way off (for example $100 and $8,000) can yield about the same net profit with only a little difference. If you find capacity available for purchase, I would always directly purchase it. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. However, with a reasonable price. The Business Strategy Game is a hands on learning exercise that will give The Students valuable decision-making practice and develop powers of business judgment. Okay. at least one of the two teams has an S/Q of 8* and low prices so far (yes, they are in first place for now) what do you think we should do?. Team members run the simulation company efficiently while competing successfully. Now you begin to understand why I earlier said, that if you use overtime for branded production, you should expand your plant capacity for the next year. In my opinion, I believe the other teams are thinking on exploit the private label. Warehouse management plays a strategic role in the supply chain by enabling inventory distribution, sorting, or cross-docking processes that strive to meet the growing demand of the market. At Top Academic Writers, we have writers with experience in different fields be it in high school, college or university. However, it will also decrease your ending cash. thank you for your help. While this was driven . 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. So far I have only build a 1000 EA plant and additional 500 NA plant. This is a good lesson in class that can be valuable in life. so idk what i may have done LOL, Hello, may I ask my is not that great at the moment and we are onto year 13 which is like 2nd year maybe of the game and i try my best to like follow your tips though not as fully cause I still dont understand much especially the calculation one a bit confusing cause I am bad at that, so far I have 7 s/q rating though I am unsure should I do lower models or not cause I am afraid it might not be enough for profit and all because most I see at average of rating and high models , I was wondering what can I do to make it better? as I described in my post, Id go with the low models, maximum profit strategy as it is easy to follow and you determine the market. Promise I wont have tons of question haha. 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 The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. we are having a horrible time of having left over inventory .. we are in year 13 and our numbers are ok we were 1st place last on year 11 and second place on year 12 but i having a feeling we have been focusing so much on our current numbers we arent going to end well any advise on what we should do on inventory and other sections of the game. In the first year (Year 11), you only have two factories, and you need to distribute to four markets. The end result counts. Besides, your team will have the opportunity to translate a high-level conceptual strategy into concrete actions for the company and team while developing their decision-making skills. Profit is the key to success in this game! I am in Y12, and I am adjusting for Y13. The world economic trends are changing fast creating more necessities for the students to develop the ability to be flexible, expert, and adaptable. Copyright 2023 | Powered by Top Academic Writers, Automated page speed optimizations for fast site performance, Leadership and Management Assignment Help. However, if done right, it is worth the time as it will yield the maximum profit possible and success in your industry. (Darius White) The business strategy was a very practical and real-world experience of what it is like to run a major corporation and the rigor it takes to increase earnings per share, return on equity, credit and image rating. First, click on the Adjust Competitive Intensity button that can be found on the top middle of the page. I wish you the best of luck for your game. In year 18, end of the game, G Company has more than 150 million Cash in hand, so we pay old loans to get A+ Credit Rating. Year 11 BSG Decisions - 11/4/2016 INDUSTRY18 Hi! However, keep track of profit since you are cutting from the profit for PR products. Does it hurt any other factors? We even understand the very details such as marketing per pair of shoes, cost of warehouse, administration per pair of shoes, which can contribute to the total cost making the Net Profit higher or lower then decide the Business Results and overall market development. Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. I always went with 500 every second year, but it depends on your market and competitors. You can also pay dividends to your shareholders. I personally would not bid higher than $5,000 $6,000. And profit is what the game is all about. After you are done, move on the left side and do the same for your internet sales. So, should I decrease pay dividends here to $0.15? $50.66 but $50.67 gives you higher profits, go for the higher prices. Thank you so much for the good recommendations. One week they might increase, the other they might increase by just a little or even decrease. The key information form balance sheet is not just Total Cash outlays of 711,362 or Net Cash balance for every year. You can also ensure the S/Q since it is the first decision. 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. Most players play hard from the first round, thus increasing S/Q, the number of models, reduce the price, putting for advertisement three times higher than average, and bidding for celebrities. This is your new, more precise regional wholesale sales volume. Decades of experience in warehousing and distribution can be an incredible advantage. G-Brand has been performing for many years Higher than Investors Expectation. We will differentiate prices to allow our shoes to be reasonable priced to the average personal. Business Strategy Game is an online business simulation game where class members are grouped into teams and assigned the task of running an athletic footwear company in head-to-head competition against businesses managed by groups formed by other class members. It will be, trust me. Company operations parallel those of actual athletic footwear companies. Fin. . And then I would just follow my tips and adjust all other values to maximize profits. Worst case, all the demand is already satisfied in your region before your shoes at a certain price is being considered. And he also purchase 4000 capacity in the first year but no advertising expenses. Always check the market snapshot and the private-label segment. After you have done this, you might notice that your Your Estimate of the Ind. . Higher Net Profit is a key to win the BSG Online Game. As such, you can play the game frequently, any time you get it interesting. All you have to do now, is writing down your forecasted Regional Sales Volume for both the Internet Segments and Wholesale Segments in all four regions. Business Strategy Game - Week 5 (Year 14) - YouTube My group and I are about to complete year 17 for the game. Keep the price expand from Average to higher, but Maintain Highest quality of our shoe will continue to exceed the quality of shoes within offered by our competitors and which are with the same price-range. Besides, you can lower the cost per pair of shoes. Do you have any suggestions? Plant Capacity - BeatBSG We are in shoes industry, so we can provide the differentiation with larger Collections. How can we apply the wisdom of strategies like Cao Cao to Professors Peter Drunker, Igor Ansoff, Philip Selznick, James Collins, Bruce Handerson, Michael Porter, and Alfred Chandler, among others? No worries, it will be easier after the first few years. Business Strategy game year 11 Internet Marketing, I need to figure out the appropriate units in the boxes that are in blue for best case scenario Show transcribed image text Expert Answer Transcribed image text: As already mentioned earlier, not every decision has to make sense. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. but out industry there is a direct competitor for me, he is also star 8 and 50 models, and he prices so low for wholesale, only 47! It is not. Moreover, the key is a rational debate with a compromise for everyone to understand why the decision is taken and commit to make it a success. To win BSG game simulation, you need to follow some ingenious tips that are essential business strategy game tips that your team should focus on: Business Strategy Game simulation isnt easy to win, but if you work with these ingenious tips, you can make profits and win your BSG game without a hassle. However, when pricing your shoes, keep in mind to set the price at least $5 below the wholesale price average. in year 17-18-19 and 20). I would like to ask you about the Dividends. Percentage of Superior Materials, Number of Models, Enhanced Styling / Features, TQM / Six Sigma Quality Program, and Best Practices Training all affect the S/Q Rating. Our G-Brand Company will continue to pursue its existing High Quality Average Price Large Collection strategy; However, to increase its market share and thereby increase revenue, our company, focus on Net Profit to increase ROE. A warehouse management system (WMS) is a software solution that aims to simplify the complexity of managing a warehouse. I recommend having a pen and piece of paper next to you so you can write down your net profit and compare when plugging in different values. This way, you end up buying the share at a lower price. Here, you will decide for how much your shoe is going to sell. You can still ship pairs from LA to somewhere else if needed. Your Delivery Time should be set to 3 weeks. The BSG company co-managers must make decisions relating to plant operations, distribution and warehouse operations, workforce compensation, marketing, online sales at the companys website, sales, and finance. Also do you know the cost of building additional capacity. Thank you so much! You then want to select 0% as the Portion of the $XX mil. 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. Like should I add up all my wholesale prices from the 4 regions and then divide by 4 to get an average wholesale price and multiply by 1.40 to get the internet price or should I base it off the lowest wholesale and then multiply by 1.40 to get the internet price? Your team will experience the challenge of coming up with a successful strategy, especially when frequently faced with changing competitive business environment. Be cautious though: Do not only look at the percentage change in net profits, but also at the total value as the total value might change sometimes but the percentage change remains the same. You are now done with all your decisions for the Corporate Citizenship decision page and should hit the Save Decisions button on the upper right-hand corner. Hi Dennis. Furthermore, G-Brand will continue focus on what we are top leading like S/Q, models, strong advertising, retailer support, celebrities. With our strategy, you might want to think about getting Option A as well. As such, your views and analysis of the information in the latest Company Reports, in Footwear Industry Report, and the Competitive Intelligence Reports will serve as the basis for agreeing upon any strategy changes or making a revised set of decisions for the following year. Logistics strategy as an enabler of new business models. For the next five years from Year 18, we will continue: To provide highest quality branded athletic shoes to the global market at a competitive price. If you found your highest value for the best net profit, move on to the next value and do the same. Sometimes thats cutting expenses, sometimes thats increasing expenses (even though it might not make sense at first). Over the next five years, G-Brand will pursue strategies that will help it improve its financial bottom line, especially ROE because the company has quite high Equity. You are almost done for the Sales Forecast decision page. Purchasing capacity is 20% cheaper than building new capacity on your own. While competing with the other teams in BSG, you need to make informed decisions that can create a difference and take your team ahead of all. It is quite simple. Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. Paying off these loans in advance has the advantage that you will pay less interest over the coming years. For all following decision rounds, you do not have to return to this page, as I advise you to always keep those two options and not change anything else on this page. I only ever paid attention to my profits and I never ever sold capacity. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. I have encountered two successful strategies so far: medium-quality shoes (S/Q rating of 5-6 stars) paired with high number of models (250-350 models) and high-quality shoes (S/Q rating of 8-10 stars) paired with low number of models (50 models). This means, without increasing your superior material or enhanced styling / features, you gain 1 star. Like I said before, you should be building capacity, yes. You will also receive a copy of Currency Made Simple. 24.51 is low, we can reduce with good factory in AP so increase the margin to much higher. The company that offers the lowest price will sell all its supply first, followed by the company with the second lowest price offered, and so on. If you reach the last decision round, comment down below and I will give you some hints on how to boost your net profits for the last year and gain some extra points. I prioritize building additional capacity and purchasing plant upgrades. If you tweak those numbers, your demand will adjust accordingly. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. Students use the BSG to cultivate managerial skills for decision-making purposes. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. Hi You have to base it off the HIGHEST wholesale price, just to be safe Like that, all 4 regions are guaranteed to be 40% above wholesale price. This decision page deals with your plants. The value that yields the highest profit value is the one you want to go with for this decision round. Our ROE fluctuated over the years due to expansion of factories, we now have paid all the old loans and have quite good cash in hand, we do not have to increase equity in next five years, at least we do not have to borrow for expansions. This can make Net profit quite simple, if we produce 12.000.000 pair of shoes, we will get about 144 million Net Profit. You should slightly increase your dividends year by year. But again, thanks! We also ship from AP to EA, AP and some to LA. Keep track of close competitors, H and others. Examples, Strategy and Warehousing - Supply Chain Brief 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. This is because your competitors are adjusting and trying to find their strategy. You might have the highest profits with 0 advertising budget. However, if you happen to use overtime at either of the two plants, plan on increasing the plants capacity in this decision round. 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. I was wondering how much more additional capacity that I should purchase after Ive bought the first 1000 for NA. And you said I should only add capacity onto existing ones instead of building a new one in LA right? I will just adjust it first and see what happens, thanks a lot:). After clicking on the green Go to Decisions/Reports-button in the corporate lobby, you can see your profits in the lower left-hand corner. At the end, I increased dividends to boost my ROE. With the Business Strategy Game, teams of students run an athletic footwear company in head-to-head competition against companies run by other class members.Company co-managers must make decisions relating to plant operations, distribution and warehouse operations, work force compensation, online sales at the company's web site, sales and marketing, and finance. Thanks for your strategy! But if i decrease my model, I dont think I will be competitive enough to compete with him if he stays with his strategy, what do you think? This is very helpful. While those two values do not change your S/Q rating, they will change your net profits. in years 13-14-15. After you have calculated the manufacturing volume for each region, add up your N.A. If you have your AP price set to e.g. Use the remaining 30% capacity to sell shows in private-label! If you have more cash available, go ahead and spend it for either one of the other options. Now, I am worried about the future rounds. Increase models? You basically do the same thing over and over again, for every decision round. havr the highest stock price, image rating at 90, A+ still, and double digit EPS. In Year 18, we have increased ROE to 26.3% vs. IE of 15%. Can GameStop Win (In The Long-Term)? Lessons For Digital - Forbes Almost done, the last decision page. You can only do one upgrade at a time in each region and a total of two updates per region. Branded Distribution Key Term business strategy game year 11 decisions; This preview shows page 1 - 2 out of 2 pages. 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). For further explanation, please read my blog post. While your regional sales volume for the internet segment is a good estimate, the estimates for the wholesale segments are not. What should I do for year 12 and 13? I suggest to go for maximum profits. However, some values, such as the Wholesale Price have decreased instead of increased. The Business Strategy Game - Competing in a Global Marketplace Again, this can be trial and error for a couple of decisions but you should get a feeling for what multiplier is best for your company. like should I just follow your tips through all because I kind of get on a bad start. This would leave you with a bunch of shoes unsold. (Which affects all 5 factors: EPS, ROE, Image Rating, Credit Rating and Stock Prices). If it increases your profits, leave it at Yes, otherwise set it to No. I started with paying $0.05 dividends and increased it by $0.05 every year. BSG Comprehensive Exam (Fall 2019) Flashcards | Quizlet

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