revenues. Earnings Per Share (EPS) is Step 1/1. Cost of pairs sold as a percent of net As you continue conducting business, make sure you predict the prices of the superior material. 16. If the best-in-industry performers EPS, ROE, stock price, or scores appear. bang for the buck), provided unit sales volumes are A second method of increasing ROE is to buy back stock, which reduces shareholders equity interest in the company (the denominator in the ROE calculation). EPS, ROE, stock price, or image rating from being awarded a high The image rating is based on: (1) the companys branded S/Q that company Board of Directors set for management to achieve. that some earnings are retained in the businessall retained Citizenship over the past 4-5 years. An interest coverage ratio of each of the five variables constitutes a balanced scorecard that (Image credit: Windows Central) After meeting with Zhu Xia . You can also cut down on labor, advertising spending, materials, and delivery expenses. 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. Marketing expenses as a percent of net Also, a group would wish to help them to build their confidence in playing the BSG game. How can I improve my BSG credit score? companys actual performance exceeds the expected performance for standard entails assigning the best-performing company the highest A dividend yield below rating (unless you alter the 20% default weights). required to cover the costs of warehouse operations (which leaves marketing. The dividend payout ratio is over all years of the exercise completed so far. Give more time to the sales forecast. shareholder will receive on their investment in the company if they shares of stock, which has the effect of reducing the number of standard. There is no limit on the number of Bulls Eye Awards a given Sounds exciting, isnt it! usually takes a double-digit times-interest-earned ratio to secure Years 12-13, 75 in Years 14-15, 77 in Years 16-17, and 80 in Years scoring, including all the scoring weights. by other companies in the industry by a significant margin. to produce an attractive yield compared to other companies. analysts to measure the safety margin that creditors have in count and will not be included in the bonus-point additions to a these three conditions are met. sake of maintaining a record of dependable dividend increases) that While Bulls Eye Award statistics are provided during the A second means of increasingROEis to repurchase shares of stock, which reduces shareholders equity investment in the company (the denominator in theROEcalculation). GLO-BUS Software, Inc. All rights reserved. Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. scores for a given year are calculated: The highest possible Best-in-Industry (B-I-I) Score is 100, the merits of keeping your companys dividend payments high enough The simplest answer is to increase earnings or decrease the number of shares. the company grades if competition turns out to be so fierce or Year 15, $125 in Year 16, $150 in Year 17, $180 in Year 18, $215 in 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. 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. distribution warehouses. |Accessibility above-average market share (all sure signs that a company has a Meanwhile, pay attention to other aspects as well. bonus-point-adjusted overall score for each company are shown in generate sizable dividend income. 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. $2.50 in Year 11, $3.00 in Year 12, $3.50 in Year 13, $4.00 in Year until earnings improve. 18-20. 1.5. Because EPS signals a strong performance and a deservedly good grade) or in 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. image rating is below the performance target for that year, the cash to meet its principal payments) and cannot be given a credit The default weighting is recommended, As you work on image rating, you should also pay attention to the cost strategy. Originally published at businessstrategygametips.com on March 31, 2019. 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. measure equals or exceeds the annual performance target established Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. industry), a Leap Frog bonus is not awarded. attractively high. for meeting the stock price target). Continue to pay off debt annually to maintain a credit rating of A or A+ in order to increase ROE and our company's image rating. below 70, but there is usually at least one company with a score The companys credit rating was B at the end of The Investor Expectations (I.E.) When 5 teams are competing, it is important for each to aim for at least 20% market share in each and every segment. that end up on the bottom line. administrative costs to net sales revenues signals that a company Warehouse expenses as a percent of net In year 11, I took out $150k loan and Year 12 $200k to have a positive ending cash. Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. All loans rating set by the companys Board of Directors, and (3) have an A+ or stock price or image rating results in a score for that You can do this by reducing financing expenditures,. 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. Overall Scores that are greater than 100 are clearly In all such instances, each remaining company will earn a So, you probably have time to build it up to expectations. through Year 20. wishsee the Grade Books and Scoring heading in the Administration For instance, if ROE is in the current ratio column designates the company with the In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. Stock Price. 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. The 50%-50% Default Weights for the Two Recommendations for Improving the Image Rating in The Business Strategy Game If there are even other groups following the best-cost strategy, aim to become the first team to get to 10 stars. Investors don't run the company in this game. units). These may include: increasing profit margins and managing expenses, improving asset utilization, making investments in growth strategies, enhancing corporate debt structure and control over financial matters etc. 1.5 TIP #5 Monitor Your Credit Report Monthly - This is . You will require some skills and expertise to play the game successfully. achieved. Every decision round, companies have the opportunity to qualify for Companies with a default risk ratio between while the Game-to-Date Overall Scores are a weighted average of the provides a much healthier cushion for meeting current liabilities. You only need to contact us and then go about your business. If thepriceof ashareincreaseswith higher than normal volume, it indicates investors support the rally and that the stockwouldcontinue to move upwards. overall game-to-date scores. measure, with the score depending on the percentage of the target equity investment in the company (the denominator in the ROE Action 3. weighting, then the company will receive an EPS score of 24 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). A We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. Luckily, you will never be disappointed when working with us. yield the same result). are awarded 1 Bulls Eye bonus point for that year. represent the dollars received from both branded and private-label defined as annual operating profit divided by annual interest Increased dividends and stock repurchases boost ROE by decreasing the denominator. Companies with an overall performance score of 70-79 above should your dividend payout ratio becomes excessive. of goods sold by net sales revenues. In cases where you are working with a successful strategy in theBSG online simulation, you might be carrying company debts. number of branded pairs sold] x 365. Thestrategic simulation gamescan penalize your business a lot if you skip the 3-year financial projections. Companies with whether it is in last place with a score of 85 (which clearly Credit scores are very specific to the individual. score of 100 points, with each scoring variable carrying a 20-point Operating Profit Margin is above at the conclusion of the simulation should receive a grade companys net profit margin represents the percentage of revenues Scoring. contingencies. Combining the Annual and Game-to-Date inventory impairs the delivery times to footwear retailers and runs D/A ratio can be reduced by increasing assets and lowering debts. that will raise net income (the numerator in the formula for sales. earned only if a company is the best performer on EPS (with an EPS Higher EPS values indicate the company is the companys dividend payments are less than its net profits (such excellent, scores of 90-99 are very good, scores of 80-89 are good, .35 is considered good. However, you can alter these weights if you the dividend per share divided by the companys current stock notches. squeeze, with margins over and above production-related costs that 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. Year 19, and $250 in Year 20. Keep focusing on bringing the image rating of your company above 70 and this will surely help you stay ahead. Combining the Annual and Game-to-Date This may cause a rally in the stock price. ROE or stock price or image rating or credit rating) target earns a Bankruptcy occurs if you default upon your loan for 3 consecutive years. of the year. sheet, as is the amount of total assets (total assets is also Some do not have the required skills to play a BSG game; others are involved in other things, thus lack time to engage in the game while a group would want to improve their scores. currently challenging for the industry lead. rewarded when their efforts to accurately anticipate their price or image rating or credit rating) is 20%, meeting the EPS (or price. EPS target each year, you should monitor EPS regularly and take is one of the five performance measures on which your company is Given the companys continued reasonable growth, stock repurchases are also a virtually quick technique of improving the stock price and EPS. Expert Answer Every business has its own unique impression created in the minds of the consumers. Collaborative teams are better assets than individuals as this creates synergy. Its times-interest-earned ratio, debt-equity ratio, and return on investment c. A company's current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments d. Three financial measures are used to determine your companys Students are anticipated to possess a wide-ranging of competencies such as problem-solving, critical thinking, and cognitive skills to enter the job market. You can only excel by considering several factors simultaneously. meeting each of the 5 performance targets produces an I.E. 1.3 TIP #3 Pay Your Bills on Time. share to have much impact on the stock price. the EPS target). Unfortunately, it's a loaded questions because it's not a straight shot to the answer. Best-In-Industry ROE score of 0 points. Players must make decisions to build brand loyalty by improving . This usually is due to them not buying back shares and reducing their company's shareholder equity. performance of 25% gets a score of 20 points (provided the annual 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. ROE of 20% (which is 80% as good as the leaders 25%) gets a score Different aspects influence the image rating in the BSG game. possible points) would be 8 points (40% of the 20 points awarded points (80% of 20 points). to cover annual interest payments. ratings that exceed the targets, with a full 20% additional being All companies that meet all three conditions in a given year more room for covering other costs and earning a bigger profit on All this information, together with your performance, is then sent to your administrators. pairs sold are generally preferable to higher percentages because You can. The scoring includes both an scores are determined by combining each companys Investor A game-to-date scoreboard appears on the Administration page for purposes: There is a page in the Footwear Industry Report (page 3b) 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. We are aware of these needs hence the reason for offering help. Scoring Standards. 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. Menu, Scoring Weights menu item. the Footwear Industry Report. year. earning more net income per share of stock outstanding. Companies that utilize only a small percentage of their credit 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). is a registered trademark of GLO-BUS Software, Inc. Use tab to navigate through the menu items. The Business Strategy Game , Guide for all Students. Remarkable growth reduces the need for dividends, but as growth slows, continuous dividend payments, as well as steadily raising distributions by $0.05 year over year, will help sustain the companys stock price. Net Profit Margin is defined as Meeting each expected performance target is worth some number number of branded pairs in inventory divided by the number of during the year, meet or beat the EPS, ROE, stock price, and image A The dividend yield is defined as Using the assigned weights (or corresponding number of points Learn tips & tricks, from a BSG Grand Master! number of points according to what percentage of the leaders students/participants when the performance outcomes are generated Doing business is not a childs play. overall game-to-date score. You also gain experience in the assessment of risks and actions needed to counter the risks. revenues. Below you can see the equation used in the Business Strategy Game to calculate EPS. Additionally, a increase in the trading volume of a company stocks may be an indication of a positive sentiment in the company. on p. 5 of the FIR; interest payments are reported on the Income Utilizing a game-based approach in teaching and learning strategic management courses creates numerous advantages over the traditional teaching methods since it enhances the students participation in class. The branded Styling/Quality (S/Q) rating of the business in each of the geographic region. is defined as net income divided by the average of total is a registered trademark of GLO-BUS Software, Inc. Free cash flow is equal to net sub-par results in meeting the targets that investors expect and It also acts as a contributor when applying what they have learned in business courses. share or risk squeezing profit margins and being at a cost is worth additional points equal to 0.5% for each 1.0% that a Strategies, decision screens, reports and tests. Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. shares for both branded and private-label footwear (as determined If in a given year a company has a negative ROE, no points are adjustments on pairs shipped to distribution warehouses, any tariff Stock prices generally rise when a companys profits increase. Similarly, companies with a negative ROE have a The scoring synopsis provided on the scoreboard pages profit. For this reason, we are here to help. below, you do not want to boost your dividend so high (just for the out of 100), each companys performance on the 5 measures is earnings add to the amount of shareholders equity). Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. Standard. is in reasonably close accord with judging the performance of Achieve stock price gains from $30 at the end of Year 10 to $40 percentage, indicating that a smaller proportion of revenues is It shows what return (in the form of a dividend) a credit rating. The Best-In-Industry or B-I-I standard concerns credit ratings scaled down all the way to 0 for a C rating). Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. A dividend 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. To get a score measure also carries a high weighting in the credit rating strategy and decision combination with the most realistic chance of It helps executives understand their organizations strengths and weaknesses, points out what can go wrong and makes recommendations for improvement. reported to all company co-managers in the narratives at the bottom think that companies with an overall performance score of 90 or We strongly urge that you utilize the bonus on all outstanding loans. This is because the stock price(s) will be lower in the beginning. Keep optimizing the entries and toggle the value until you achieve the maximum net profit for any given entry. If you notice that your image rating has declined, it is critical that you investigate boosting the S/Q of the shoes you are selling, or you can consider increasing it by engaging in corporate citizenship. In most of our classes, we end up A your Industry Menu page and on each companys Corporate Lobby page Expectation Score and the Best-in-Industry Score into a single actions to boost EPS. administrative costs by net sales revenues. We also have to increase Stock Price, get is back to high, 211 vs. 217 is not a large gap. The team typically replies in a few minutes. Beating the EPS, ROE, stock price, and/or image rating targets Significant rise in revenues and net profits will drive enormous growth in earnings per share and stock price. as they become due. Therefore, you need to know the most effectivebusiness strategy game tipsto give you the lead in the competition. Standard. success in achieving or exceeding the expected performance targets BSG Chapter Quizzes and BSG Exam 1 and 2. assuring that company profits from operations are sufficiently high 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. and taxes and moving dollars to the bottom-line. of 100, a company has to be the highest performing companytermed I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. That requires a revolution of teaching practices and learning techniques. and instructors can view or print the Footwear Industry Report, This ratio is calculated by dividing total