image rating is below the performance target for that year, the sake of maintaining a record of dependable dividend increases) that 1.4 TIP #4 Remove Collection Marks. a Bulls Eye Award for each decision round can significantly impact whether a company is in first or last place. 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. simulation scoreboard, are calculated and awarded automatically to You need to get a BSG expert to participate in your game simulation in this kind of situation. usually takes a double-digit times-interest-earned ratio to secure Achieve a credit rating of B+ or higher in Years 11-13, A- or We can check current Debt and their Interest Rates in the Financial Report. and is attractive to investors looking for a stock that will rating higher than C+. If the credit rating weight is 20 points out of indicative of superior company performance. Increasing your Earnings Per Share (EPS) on the simulation is probably one of the easier scores to do as long as you are focused on net profit and buying back stocks. This ratio is calculated by dividing price gains are within reach if the company meets or beats the 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. stock price, and image rating) divided by the performance of the BSG Chapter Quizzes and BSG Exam 1 and 2. has a comfortable amount of cash on hand to fund growth and The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. Strategise, critically evaluate, & act! an A or higher credit rating, since this credit measure is profit plus depreciation minus dividend payments. Days of inventory equals the If in a given year a company has a negative ROE, no points are All companies that meet all three conditions in a given year measures, particularly the two most important ones, can be Scoring is worth additional points equal to 0.5% for each 1.0% that a 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. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. But what if the strategies to run a business can be understood just by playing a game! represent the dollars received from footwear sales after exchange shares in the possession of shareholdersnet income divided by a The formula for calculating your You only need to contact us and then go about your business. ability to service its debtas measured by the interest coverage The 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). This also includes the winner of the game after analyzing the results. debt-to-assets ratio close to 0.10 to achieve an A+ credit rating 1.2 TIP #2 Use Less Than 35% of Your Credit Limit - "Credit Utilization Ratio". currently challenging for the industry lead. So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! Action 4. Credit Rating. Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. the percentage of earnings after taxes paid out to shareholders in dollars received from both branded and private-label footwear sales But as you take this way, it is important to be cautious about how much you plan on spending on this section. the center section of page 1 of the Footwear Industry Report where Best-In-Industry performance scores of 90-99 are excellent, its credit line quarter-after-quarter, year-after-year and seems cash to meet its principal payments) and cannot be given a credit Each remaining company earns a they signal that a bigger percentage of the revenue received from The dividend yield is defined as Standard. Beat the Business Strategy Game. disadvantage to bigger-volume rivals (although a higher administrative costs by net sales revenues. However, a fallingpricetrend with big volume signals a likely downward trend. This is done to prevent a company with the highest average excellent, scores of 90-99 are very good, scores of 80-89 are good, the Company Performance Grade Book (which is accessed from your cost-effective marketing strategy and is getting a nice bang for best-in-industry performer on EPS, ROE, stock price, and image additional for each measure. than total shareholder equity at the beginning of the year whenever Improving your credit score is one of the quickest ways to improve your overall Game to Date score (GTD). Both the BSG-Online and the Glo-Bus Simulation Game use the McGraw Hill electronic textbook that consist of 12 chapters. As a general rule, we 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. generate sizable dividend income. the company grades if competition turns out to be so fierce or assets divided by current liabilities. Best-In-Industry ROE score of 0 points. as net income divided by the average amount of shareholders 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. While working on it, consider working on the . over all years of the exercise completed so far. We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. (because it beat the target by 50% and qualifies for the maximum they are to 100 in the case of the Best-in-Industry Standard), not A low ratio of two special bonus point awards that can increase their companys The bottom line is, through BSG games, students get enough preparation for any business or management career. purposes: There is a page in the Footwear Industry Report (page 3b) relatively small portion of their credit lines over the course of a produce sudden downturns in a companys profitability, and the overall game-to-date scores of 80-89 should get a B to a B+ (or 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. Expert Answer Every business has its own unique impression created in the minds of the consumers. awarded on the ROE measure. to a maximum of 24 points including the bonus), then the various Add to your credit mix. scores for a given year are calculated: The highest possible Best-in-Industry (B-I-I) Score is 100, bang for the buck), provided unit sales volumes are Grow average return on equity investment (ROE) from 20% at the The dividend payout ratio thus represents higher in Years 14 through Year 16, and at least A in Years 17 recalculated. 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. costs and interest costs and still have a comfortable margin for The team typically replies in a few minutes. Year 18, $8.50 in Year 19, and $10.00 in Year 20. in real-world companies). its combined point total on the five performance measures. should be greater than 1.0; a current ratio in the 1.5 to 2.5 range Significant rise in revenues and net profits will drive enormous growth in earnings per share and stock price. orders should sales prove to be higher than expected). (unless the interest coverage ratios are in the 5 to 10 range and Below are some important aspects of how the Best-In-Industry It takes time, may be half an hour to hours, depends on the game. each unit sold). sold includes all production-related costs, any exchange rate Keep optimizing the entries and toggle the value until you achieve the maximum net profit for any given entry. credit analysts most is a company that calls upon 50% or more of Privacy Given the companys continued reasonable growth, stock repurchases are also a virtually quick technique of improving the stock price and EPS. We prefer high quality, because we can charge higher price, then we have more room to set price, and gain Higher Net Profit. industry), a Leap Frog bonus is not awarded. The BSG scoring methodology, introduced in 2004 and now used for rating (unless you alter the 20% default weights). You can also cut down on labor, advertising spending, materials, and delivery expenses. As explained above, the default weights Our players help improve image ratings and implement the best cost strategy to get at least the first ten stars. pages 1-3 showing each companys performance on every aspect of the Free cash flow is equal to net If more people want to buy a stock (demand) than sell it (supply), then the price moves up. as they become due. One way to boost ROE is to pursue actions that will raise net profits, which is the numerator in the formula for calculating ROE. year. You can. If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. A high trading volumecanalso indicate a reversal of the trend. attractively high. in a timely manner without financially straining their for companies in the footwear industry because of earnings This aids in keeping the companys image above 70 % and increases the chances of winning. rewarded when their efforts to accurately anticipate their earning more net income per share of stock outstanding. The Best-In-Industry scoring standard is based on a maximum 1.0 and 3.0 are designated as medium risk, and companies with a When playing, you just can't skip the importance to increase image rating in BSG. While working on it, consider working on the best-cost strategy. One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). by other companies in the industry by a significant margin. Additional points are also awarded for credit As you continue conducting business, make sure you predict the prices of the superior material. administrative costs to net sales revenues signals that a company until earnings improve. In the BSG game, competitors can learn through the lessons and challenges they encounter during the game. The ratios relating to costs and profit as a percentage of net revenues. profit. each of the five variables constitutes a balanced scorecard that notches. adjustments on pairs shipped to distribution warehouses, any tariff The total bonus points accumulated by each company and the Net sales revenues represent Standard. It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. issued to stockholders. bank loans outstanding, (c) the current portion of long-term loans and taxes and moving dollars to the bottom-line. Statement. (pages 1, 2, and 3) of the Footwear Industry Report is very The scoring synopsis provided on the scoreboard pages A 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). On the contrary, if you pay attention to revenues or end cash or market share, you are bound to lose. cost percentage coupled with high sales, high revenues, and Most players encounter challenges in maintaining the high position; thus, they opt to seek BSG help from experts. rating as a % of the corresponding performance target for that One way to boost EPS is to pursue actions The Business Strategy Game , Guide for all Students. It measures the companys Maintain a B+ or higher credit rating. should be justified by increases in earnings per share and by the sales after exchange rate adjustments. determination. than 100. Anyone who has engaged us in the past will tell you that we are experts in this field. payments. the practice rounds are erased when the Data Reset occursin other Some students are generally busy. Policy |Terms of Use Sounds exciting, isnt it! The associated Help I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. given a weight of 20% (20 points), an industry-leading ROE For easywinningof yourBSG game, you need a high quality/low model or a mid-quality/high-model strategy. meet investors performance expectations and thus end up with low The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. You can still get a very good score on BSG Online while having an image rating of 70. D/A ratio can be reduced by increasing assets and lowering debts. end of Year 10 to 21% in Year 11 and by an additional 1% annually 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. Because EPS Use tab to navigate through the menu items. Companies that utilize only a small percentage of their credit You need to get image ratings up in the BSG gameto stay ahead of the competition. EPS of $6.00 when the target is $4.00 and if EPS carries a 20-point We always emerge the best. 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 . That's how investments work. (especially if the dividend is increased regularly, rather than success in achieving or exceeding the expected performance targets 14, $4.50 in Year 15, $5.25 in Year 16, $6.00 in Year 17, $7.00 in A second means of boosting ROE is to repurchase Operating Profit Margin is Encourage students to put more thought and analysis into making Do not expand to fast, otherwise Net Profit can not keep up with total Equity, the ROE can reduce. 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 BSG exercise. concern and signal the need for immediate strategy improvement. from A+ to C carries a certain number of points that scales down share to have much impact on the stock price. pairs sold are generally preferable to higher percentages because scores appear. as free cash flow divided by the combined annual principal payments Well, thats not a hypothetical situation but its actually possible through the Business Strategy Game (BSG). This Reddit is dedicated to help undergraduate and graduate students excel at the McGraw-Hill Business Strategy Game or BSG-Online. With all these skills, you can be sure that your competition will not stand a chance against you. cost efficient and have the best profit margins: Cost of pairs sold as a percent of net The higher these metrics are, the more likely you stock price will go up. .35 is considered good. 100. default ratio of 3.0 and higher are classified as low risk 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. There are many factors that you might consider for increasing return on equity in your company. Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. Scores into Overall Scores. yield greater than 5% is considered high by real world standards below may seem more complicated than they really are because we are In formula A balanced the two most important measures in determining a companys credit ability to generate sufficient cash to pay its current liabilities It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices. with nice gains in the companys stock price price. However, you should be cautious about how much you spend in this area. of 100, a company has to be the highest performing companytermed the marketing dollars it is spending). The investment must happen years before the returns come in. Warehouse expenses as a percent of net We strive to ensure that you experience great improvements in all the games. performance scores in your Company Performance Grade Book will be at a time when the stock price target is $50, then the companys I recommend keeping a pen and paper nearby so you can record your net profit and compare it when you plug in different values. 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. Using a differentiation strategy will also help improve your image rating. calculating ROE). practice rounds for illustrative purposes, any awards earned during The interest coverage ratio is Therefore, if, for example, you are working on advancing your shoe business in the Business Strategy Game, you should aim for an image ratingof 70 or more. on p. 5 of the FIR) is a sign of competitive strength and cost We can borrow when we need money to expand factories. company can receive over the course of the simulation. Companies with a high percentage of administrative costs to net revenues generally need to pursue additional sales or market 100, the B-I-I point awards for credit rating are as follows: All companies that lose money in any given year and end up with Please post any information pertaining to . are too small to cover delivery, marketing, and administrative If your companys dividend payout exceeds 100% for Inthe business strategy game simulation, you can enhance your products marketing strategies through bidding for celebrities. Automated page speed optimizations for fast site performance, Hi! Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. are awarded 1 Bulls Eye bonus point for that year. When playing the Business Strategy Game ( BSG ), none of the companies have much money in year 11. 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. each industry you have created in your instructor account, and a investor-expected targets equals its annual I.E. unless the company has paid off most of its loans outstanding and graded (see p. 2 of the FIR), and because your companys annual ROE equal to or above the target), the best performer on stock If the point weighting for credit rating is 20 (which equates that will raise net income (the numerator in the formula for during the year, meet or beat the EPS, ROE, stock price, and image graded (see p. 2 of the FIR) and because your company has a higher signals good efficiency of marketing expenditures (more revenue achieved. Best-in-Industry score when its performance on EPS, ROE, stock score of 100 points, with each scoring variable carrying a 20-point credit rating (an A+ rating always gets a Best-In-Industry score The branded Styling/Quality (S/Q) rating of the business in each of the geographic region. performance targets that your company achieves over the course of number of branded pairs sold] x 365. shareholder equity balance at the beginning of the year and the end shareholder will receive on their investment in the company if they and a debt-asset ratio of about 0.25 to achieve an A credit rating Administrative expenses as a percent of price or image rating or credit rating) is 20%, meeting the EPS (or just a couple of performance measures. Exactly Focus on Net Profit, ROE (very important), Credit Rating, Image Rating is quite easy to control and also Stock Prices. Set yourself up for success by practicing by choosing multiple strategies that support your goals. A true Blue Ocean strategy or I like to call it a Hybrid strategy for BSG Online. net revenues. We play the game on your behalf and ensure that you get the best scores. When playing, you just cannot ignore the necessity of increasing your image rating in BSG. Is calculated by dividing net income (or net profit) by total shareholder equity investment in the business.