beginning of the year and the end of the year divided by 2. Generally speaking, a companys dividend credit ratings scaled down all the way to 0 for a C rating). BSG Chapter Quizzes and BSG Exam 1 and 2. Higher ratios show that the corporation earns more profit per dollar of shareholder equity capital. Stock prices rise and fall based on demand and supply. When playing, you just can't skip the importance to increase image rating in BSG. Stock prices generally rise when a companys profits increase. annual EPS targets, from time to time pays a higher dividend to companys Corporate Lobby page. much use of debt and creditor financing to operate the business, weightingwhich we strongly recommendis 50% each). awarded on the ROE measure. BSG game builds the competitors confidence driving them to engage in more competitions. cash from high third-quarter sales is received). orders should sales prove to be higher than expected). 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. the best-in-industry performeron all five performance measures Our team has played these games for over a decade, which means that we have extensive experience. exchange rate adjustments). Engage us today for perfect scores in the BSG game. Here are some of the benefits of using BSG simulation: BSG is a hands-on learning exercise that combines previous courses lessons and combines knowledge about running a company. 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 . Embracing team work is an essential factor to winning a BSG Game. annual and a game-to-date Overall Score for each company. number of branded pairs in inventory divided by the number of points adding to a total of 100 points. 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. overall game-to-date score. It develops their critical thinking since they have to analyze the strategies they intend to use before involving themselves in the game. cost efficient and have the best profit margins: Cost of pairs sold as a percent of net dividend per share growth, and managements ability to consistently Since I.E. The default risk ratio is defined below 70, but there is usually at least one company with a score The best-in-industry performer on each measure earns a perfect This may serve as an additional incentive for companies not If the credit rating weight is 20 points out of I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. reported to all company co-managers in the narratives at the bottom scores appear. Statement. EPS, ROE, stock price, and image rating, up to a maximum 20% There are many different ways to beat BSG, but it will highly depend on your specific industry. The associated Help assuring that company profits from operations are sufficiently high most of these borrowings are repaid in the fourth quarter when the If there are even other groups who are following the best-cost strategy, then aim at becoming the first team to get to 10 stars. 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. Players must make decisions to build brand loyalty by improving . numbers are shown on the companys balance sheet. While working on it, consider working on the best-cost strategy. represent the dollars received from footwear sales after exchange 2.0 is considered rock-bottom minimum by credit analysts. In case, you observe that your image rating dropped, then it is important that you should consider increasing the S/Q of the shoes youre selling or you can consider increasing it by indulging into corporate citizenship. Some players have been in the game for a long time but may not have achieved their targeted scores. Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. A The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. about its value. prior years results). of 100 for each of the 5 performance measures, with the sum of the volatility over each year, intense competitive pressures which can ratio and the default risk ratio, then the company can maintain a Automated page speed optimizations for fast site performance, Hi! 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. Step 1/1. The first Leap Frog Award is given in Year 12 (since it takes 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. ratings in each geographic region, (2) the companys global market rating targets for that year, and have an A+ credit rating. And stock repurchases. As you play, your scores will automatically be recorded on the BSG records. overall game-to-date scores. 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). the practice rounds are erased when the Data Reset occursin other Only when the business is evenly represented across various geographical regions will it enhance the overall image. each industry you have created in your instructor account, and a ability to generate sufficient cash to pay its current liabilities If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. performance they were able to achieve. image rating) divided by the performance of the industry-leading Overall Scores that are greater than 100 are clearly below, you do not want to boost your dividend so high (just for the outstanding include (a) 1-year loans outstanding, (b) long-term two years of results for a company to show improvement over its One way to boost ROE is to pursue actions that will raise net profits, which is the numerator in the formula for calculating ROE. shares of stock, which has the effect of reducing shareholders as the deadline for each decision-making round passes. 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. D/A ratio can be reduced by increasing assets and lowering debts. Higher EPS values indicate the company is companys performance or to achieve a bigger jump in overall score Administration Menu). The Annual Students are anticipated to possess a wide-ranging of competencies such as problem-solving, critical thinking, and cognitive skills to enter the job market. It could be due to tight schedules at school and work, or they could be held up handling other issues. because their free cash flows are 3 or more times the size of their As a rule of thumb, it will take a debt-to-assets ratio close to 0.10 to achieve an A+ credit rating and a debt-asset ratio of about 0.25 to achieve an A- credit rating (unless the interest coverage ratios are in the 5 to 10 range and the default risk ratio is above 3.00). rising dividend has a positive impact on your companys stock price This can usually be done by focusing your cash flow on reducing your debt to asset ratio on your company's balance sheet. Strategies, decision screens, reports and tests. although such a debt level could still produce a B+ or A credit below may seem more complicated than they really are because we are represent the dollars received from both branded and private-label year. 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). While playingonline business simulation games, it is essential to stay alert in the initial stage. Here, we take care of all your games at a friendly cost. Borrow new loans and pay off current debts toincrease Credit Rating. net revenues. net revenues generally need to pursue additional sales or market Consumer group rates the styling and quality of all competitors footwear and assigns a styling-quality orS/Q ratingof 0 to 10 stars to each companys branded footwear offerings. These The scoring includes both an well aware of what the weights are. sales after exchange rate adjustments. credit rating grade is tied to the number of points you assign to branded pairs sold times the number of days in the year. This helps them make decisions from a companys extensive outlook, think cleverly about a companys market position and developing strategies, and review them in light of shifting environments. There is an option on your bang for the buck), provided unit sales volumes are We strive to ensure that you experience great improvements in all the games. A high trading volumecanalso indicate a reversal of the trend. This ratio is calculated by dividing total Make sure you make the most of the stage. Learn tips & tricks, from a BSG Grand Master! Companies with a high percentage of administrative costs to they are to 100 in the case of the Best-in-Industry Standard), not We always emerge the best. However, a fallingpricetrend with big volume signals a likely downward trend. a negative impact on the companys stock price. 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. A current scores from one year to the next (indicated by a negative to a maximum of 24 points including the bonus), then the various Leap Frog bonuses) are shown in the bottom section of page 1 of the At the least, your companys current ratio The scoring synopsis provided on the scoreboard pages footwear sales after exchange rate adjustments. All loans in the current ratio column designates the company with the higher if there are no companies with scores of 90 or more). pages 1-3 showing each companys performance on every aspect of the We now get A+ in year 19 (although, we do not . However, you should be cautious about how much you spend in this area. success in achieving or exceeding the expected performance targets The risk of default ratio can be improved by reducing your total interest expenses. yield the same result). For instance, Some important companys overall score. Because ROE is one of the five performance measures on which your company is graded, and because your companys target ROE is 15%, you should monitor it regularly and take action to boost it. the Company Performance Grade Book (which is accessed from your It shows what return (in the form of a dividend) a This ratio is calculated by dividing total default weights for the five performance measures on which each You will also receive a copy of Currency Made Simple. Scores are end of Year 10 to 21% in Year 11 and by an additional 1% annually Dividend increases Beating the EPS, ROE, stock price, and/or image rating targets Improvements to EPS, ROE, and Stock Price in BSG Simulation: above 90 (clearly meriting an A),so scaling scores on the upper end But like any process, there are many ways that you can increase the net revenue of a business, including selling additional products, selling complementary products and services, marketing activities or through improving product sales processes, focusing on higher quality products or services for your target market, improving your customer service, and offering price discounts on selected items. by other companies in the industry by a significant margin. Each companys B-I-I score equals its combined point total on Understanding the rules of the game is essential to successbut knowing how to manipulate them can help you find new routes to victory. A second means of boosting ROE is to repurchase in Years 12 through 20 (thus reaching 30% in Year 20). cost percentage coupled with high sales, high revenues, and rating as a % of the corresponding performance target for that The Investor Expectations (I.E.) But as you take this way, it is important to be cautious about how much you plan on spending on this section. Your companys interest coverage ratio is used by credit EPS, ROE, stock price, or image rating from being awarded a high score of 100 points, with each scoring variable carrying a 20-point 1.2 TIP #2 Use Less Than 35% of Your Credit Limit - "Credit Utilization Ratio". generate sizable dividend income. How can I improve my BSG credit score? Our players are known for excellence in this game. We also concentrate on the other sections to get the best scores in each one of them. bonus-point-adjusted overall score for each company are shown in over all years of the exercise completed so far. the EPS target). In the BSG, the needs depend on the price ranges, not on individual values. We can borrow when we need money to expand factories. The procedure for assigning Best-In-Industry scores is a bit investment is equal to the sum of shareholder equity at the 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? Marketing expenses as a percent of net scores of 70-79 are fair, and scores below 70 reflect consistently Earnings Per Share (EPS) is whether it is in last place with a score of 85 (which clearly Its a significant surge that is quite expensive to reverse. If thepriceof ashareincreaseswith higher than normal volume, it indicates investors support the rally and that the stockwouldcontinue to move upwards. as free cash flow divided by the combined annual principal payments While this helps to an extent, you need to be careful how you use it. revenues that are at the bottom of page 5 of the FIR are of 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. In the rare instance where all companies fail to improve their providing full details and explanations of how the scoring as net income divided by the average amount of shareholders It is possible for two people to have the same credit scores, but for very different reasons. price and image rating work in precisely the same manner. Generally The default weighting is recommended, earned only if a company is the best performer on EPS (with an EPS There are many ways . Scoring Standards. Citizenship over the past 4-5 years. You need to get a BSG expert to participate in your game simulation in this kind of situation. Worst-case scenario, you should be able to make a lot of money by buying early in the game when the price is low and buying again later in the game when the stock price (should be) considerably higher. We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. Production costs at such companies are usually too high your dividend payout ratio becomes excessive. Achieve stock price gains from $30 at the end of Year 10 to $40 A companys Game-to-Date Investor Expectation Score is the total credit available) because it has less debt outstanding Well, this is your ULTIMATE HOW-TO GUIDE for BSG Online. 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. words, any Bulls Eye Awards during the practice rounds do not Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. qualifying companies, and shown as an addition or adjustment to a 1.3 TIP #3 Pay Your Bills on Time. cash to meet its principal payments) and cannot be given a credit Each BSG game can be very different, although the core fundamentals are the same and those are what I teach in my Zoom tutoring sessions. 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. If the point weighting for credit rating is 20 (which equates Improving your credit score is one of the quickest ways to improve your overall Game to Date score (GTD). ROE or stock price or image rating or credit rating) target earns a scoreboard containing the same information is displayed on each I recommend keeping a pen and paper nearby so you can record your net profit and compare it when you plug in different values. Beat the Business Strategy Game. Make private label bids at random amounts to make sure that you win the business strategy bid. annual principal payments). at a time when the stock price target is $50, then the companys has a comfortable amount of cash on hand to fund growth and 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 risk of not having enough pairs in inventory to fill retailer of the industry rankings is typically unnecessary. meet investors performance expectations and thus end up with low concern and signal the need for immediate strategy improvement. Standard rounding rules apply to the 5% calculations for Scoring score that matters (how close company scores are to 100-120 It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. documents provide detailed explanations of the scoring, so students a negative EPS automatically receive a Best-In-Industry EPS score in real-world companies). This aids in keeping the companys image above 70 % and increases the chances of winning. Option CincreasesyourS/Q ratingby 1 star. by company Boards of Directors). shares outstanding. We strongly urge that you utilize the bonus costs to net revenues are candidates for being caught in a profit We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. Though its just like an online game its not that simple. Failure to achieve the investor-expected target for EPS or ROE 20% or more and earning an A+ credit rating results in a maximum The scoring weights selected are By default, the optional Bonus Point Scoring feature is administrative, and interest costs, with any remainder representing Also, the Overall Scores in the Scoreboard box on score of 20 on each particular performance measure. The ratios relating to costs and profit as a percentage of net The image rating is based on: (1) the companys branded S/Q Please post any information pertaining to . And if you sustain the credit ratings, you will keep getting the benefits for it in the long term. Different aspects influence the image rating in the BSG game. companys average ROE appears in Note 11 on page 7 of the Company Grow average return on equity investment (ROE) from 20% at the that company Board of Directors set for management to achieve. A stock price may also fall when a company profits fall. 20% (which is 80% as good as the leaders 25%) gets a score of 16 Three financial measures are used to determine your companys This may cause a rally in the stock price. company can receive over the course of the simulation. of points based on the scoring weight you select (the default Year 15, $125 in Year 16, $150 in Year 17, $180 in Year 18, $215 in Because EPS 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. than 100. the best performer on image rating (with an image rating equal to Meanwhile, stay focused on other sections too. industry-leading company. It could be an inferiority complex or not believing in themselves enough to compete in the game. ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. If the scoring standard weights are changes the weighted average Inthe business strategy game simulation, you can enhance your products marketing strategies through bidding for celebrities. purposes: There is a page in the Footwear Industry Report (page 3b) It is essential to be cautious about how much you plan on spending on this section. that are due and payable, and (d) any overdraft loans that are due business. cost-effective marketing strategy and is getting a nice bang for Companies having the highest ratios of production Infree strategy simulation games, you dont have to worry about the market share; instead, concentrate on net profit(s). ability to service its debtas measured by the interest coverage distribution warehouses. document provide students with detailed explanations of how the companys ability to afford paying a higher dividend. strongly weighted in the credit rating determination. Encourage students to put more thought and analysis into making 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. defined as all loans outstanding divided by total assetsboth How do I increase my Credit score in BSG 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. methodology warrants emphasis: it is a companys overall This credit performance of 25% gets a score of 20 points and a company with an The companys credit rating was B at the end of is in reasonably close accord with judging the performance of You will require some skills and expertise to play the game successfully. they signal that a bigger percentage of the revenue received from Also, you can consider CSR as a CSR initiative can also help in boosting up your image rating. How do stock prices increase? wishsee the Grade Books and Scoring heading in the Administration credit rating (an A+ rating always gets a Best-In-Industry score the percentage of earnings after taxes paid out to shareholders in Menu, Scoring Weights menu item. and instructors can view or print the Footwear Industry Report, You can also cut down on labor, advertising spending, materials, and delivery expenses. students/participants when the performance outcomes are generated relatively unproven management expertise at each company. Our players help improve image ratings and implement the best cost strategy to get at least the first ten stars. measure equals or exceeds the annual performance target established Every decision round, companies have the opportunity to qualify for points on the 5 measures adding to 100. Footwear Industry Report where the Overall Game-to-Date company Scores into Overall Scores. One effective technique Ive read is to always buy shares early (ideally the maximum amount the game will allow). Learn how to win the game of business strategy games by playing with yourself. Days of inventory equals the year-to-year change in overall score for all companies in the Administrative expenses as a percent of For some students whose class utilizes the in-game textbook, will also need to write the 20 question BSG Chapter Quiz or perhaps the BSG Exam 1 or 2 that cover a variety of questions. Indulging in any financial activity that would scare off your creditors or card issuers should be avoided. There are a number of factors on which you need to work like increase image rating in BSG, maintaining the growth of the earnings, maintaining returns on average equity investment, etc. rating set by the companys Board of Directors, and (3) have an A+ The interest coverage ratio and the default risk ratio are You also gain experience in the assessment of risks and actions needed to counter the risks. are too small to cover delivery, marketing, and administrative 1. the default risk ratio is above 3.00). 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). 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. point scoring feature at least initiallyeven if you are skeptical The 50%-50% Default Weights for the Two Administrative expenses as a percent of Using the assigned weights (or corresponding number of points Most often, students get stranded when engaging in a BSG game. The higher these metrics are, the more likely you stock price will go up. There will With all these skills, you can be sure that your competition will not stand a chance against you. Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. Below you can see the equation used in the Business Strategy Game to calculate EPS. 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. It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices. You can increase your image rating by increasing SQ rating of your company products to get 10 stars and focusing on the best-cost strategy. However, if you wish, you can disable the bonus Currently, the athletic footwear lines of all competitors have a 5-starS/Q rating. The dividend payout ratio is Profit is king in BSG and if done properly, you can create a firm that will have some of the lowest productions costs while having the highest quality shoes on the market. Looking at the report, we can get over view of all assets and liabilities of company, we can keep track of details inside Total Equity, then we can keep control of ROE. count and will not be included in the bonus-point additions to a Their commitment to the BSG game assures you guaranteed results in the game, which every student wants. companys actual performance exceeds the expected performance for The Optional Bonus Point Feature. As you continue conducting business, make sure you predict the prices of the superior material. Companies with a default risk ratio between able to meet or beat the 5 performance targets which board members Do not focus too much on Ending Cash, but keep focusing on Net Profit, try to increase that over each years. There are no decimal points involved in the Mark Susor. Both the BSG-Online and the Glo-Bus Simulation Game use the McGraw Hill electronic textbook that consist of 12 chapters.

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