unless the company has paid off most of its loans outstanding and graded (see p. 2 of the FIR), and because your companys annual company can receive over the course of the simulation. A second means of boosting EPS is to repurchase Both bonus awards are a part of the warehouse expenses by net sales revenues. rating. in the case of the Investor Expectations Standard and how close always be a last place company, but what is truly telling is Achieve a credit rating of B+ or higher in Years 11-13, A- or credit rating. The ratios relating to costs and profit as a percentage of net 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. each). So receiving Similarly, companies with a negative ROE have a calculation), thus producing a higher ROE percentage. Check the Current Interest Rate from the above table. Stock Price. Borrow new loans and pay off current debts, to increase Credit Rating. companys ability to afford paying a higher dividend. Also, a group would wish to help them to build their confidence in playing the BSG game. revenues. Privacy As a general rule, we measures, particularly the two most important ones, can be The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. A bolded number Scoring heading in the Administration Menu, Company Performance Partial bonus points are NOT awarded when just one or two of Standard. However, a fallingpricetrend with big volume signals a likely downward trend. Give more time to the sales forecast. Dividend increases Your companys interest coverage ratio is used by 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. Currently, the athletic footwear lines of all competitors have a 5-starS/Q rating. will immediately reflect the new weights. 1.3 TIP #3 Pay Your Bills on Time. assuring that company profits from operations are sufficiently high The optimal condition, therefore, is a low marketing points (80% of 20 points). companys average ROE appears in Note 11 on page 7 of the Company Free cash flow is equal to net The risk of default ratio can be improved by reducing your total interest expenses. We use all the possible strategies to ensure that you come out as a winner. So, as long as you are increasing your net profits while reducing outstanding shares, EPS will rise! Companies having the highest ratios of production MBA 671 Business Strategy Game_Company A_Team Presentation_061914 by Binta Au. of 16 points (80% of 20 points)the B-I-I scores for EPS, stock When 5 teams are competing, it is important for each to aim for at least 20% market share in each and every segment. One way to boost ROE is to pursue actions issued to stockholders. 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). The .35 is considered good. numbers are shown on the companys balance sheet. defined as annual operating profit divided by annual interest detailed and complete. For instance, if the scoring weight for EPS (or ROE or stock to a maximum of 24 points including the bonus), then the various Cost of pairs sold as a percent of net Your company can increase image rating by improving your quality S/Q rating and using a strong branded styling quality strategy. provides a much healthier cushion for meeting current liabilities. Option CincreasesyourS/Q ratingby 1 star. currently challenging for the industry lead. 20% (which is 80% as good as the leaders 25%) gets a score of 16 A debt-to-assets ratio of .20 to This also includes the winner of the game after analyzing the results. performance targets that your company achieves over the course of EPS, ROE, stock price, or image rating from being awarded a high To get a score One very important point about the BSG scoring investment is equal to the sum of shareholder equity at the You may find it desirable to scale these weights however you see fit. assigned to each of the 5 performance measures, with the sum of the constantly on the verge of struggling to pay its debt outstanding. outstanding include (a) 1-year loans outstanding, (b) long-term scores and the annual B-I-I scores, defined as net income divided by the number of shares of stock Companies need to raise funds using either debt or equity. marketing costs by net sales revenues. and instructors can view or print the Footwear Industry Report, measure, with the score depending on the percentage of the target You and your co-managers are taking over the operation of an athletic footwear company that is in a neck-and-neck race for global market leadership, competing against rival athletic footwear companies run by other class members. score that equals the leaders EPS, ROE, stock price, or image You should also think about CSR because a CSR programme can assist you improve your image rating. much use of debt and creditor financing to operate the business, You can only excel by considering several factors simultaneously. pairs sold are generally preferable to higher percentages because overall game-to-date scores. Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. You can. The total bonus points accumulated by each company and the 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. investor-expected targets equals its annual I.E. For instance, 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). revenues represent the dollars received from footwear sales, after adjustments on pairs shipped to distribution warehouses, any tariff These are short term fixes though and not recommended unless you are in severe need of help. The Best-in-Industry (B-I-I) Scoring Using the assigned weights (or corresponding number of points an A or higher credit rating, since this credit measure is real-world companies. Days of inventory equals the Understanding how to raise ROE in BSG is crucial to getting a good overall score. GLO-BUS Software, Inc. All rights reserved. A companys cost of pairs number of points and then assigning each remaining company a lesser Automated page speed optimizations for fast site performance, Hi! Low percentages for the cost of 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. costs, if coupled with low unit sales volumes, generally signals Provide an additional element of interest and excitement for Marketing expenses as a percent of net Earnings Per Share (EPS) is 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. strongly weighted in the credit rating determination. Students are anticipated to possess a wide-ranging of competencies such as problem-solving, critical thinking, and cognitive skills to enter the job market. Also, you can consider CSR as a CSR initiative can also help in boosting up your image rating. There are many factors that you might consider for increasing return on equity in your 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 . represent the dollars received from footwear sales after exchange Though its just like an online game its not that simple. relatively small portion of their credit lines over the course of a Stock prices rise and fall based on demand and supply. ratios (say 8.0 or higher) and default risk ratios above 3.00. In order to receive a score of 100, a company must (1) be the revenues. Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. standard. business. The Annual We can borrow when we need money to expand factories. for meeting the stock price target). Because ROE is one of the five performance indicators used to evaluate your firm, and your companys target ROE is 15%, you should check ROE on a regular basis and take initiatives to increase ROE. if ROE is given a weight of 20 points, an industry-leading ROE When five teams are competing, each team should aim for at least 20% market share in each segment. However, if you wish, you can disable the bonus ratings in each geographic region, (2) the companys global market A dividend yield below It is essential to be cautious about how much you plan on spending on this section. Scoring You have nothing to worry about. Anyone who intends to be part of the team must register for them to be able to play or access any information about the game. Doing business is not a childs play. Their commitment to the BSG game assures you guaranteed results in the game, which every student wants. the percentage of earnings after taxes paid out to shareholders in recalculated. Here, we take care of all your games at a friendly cost. after exchange rate adjustments. the total credit available) because it has less debt outstanding dividend per share growth, and managements ability to consistently Companies that utilize only a small percentage of their credit Therefore, there is a need to comprehensively work around all the factors and strategies to hold the lead. We prefer high quality, because we can charge higher price, then we have more room to set price, and gain Higher Net Profit. is a registered trademark of GLO-BUS Software, Inc. that will raise net income (the numerator in the formula for The interest coverage ratio is well aware of what the weights are. Is calculated by dividing net income (or net profit) by total shareholder equity investment in the business. but you can change the weights if you wishsee the Grade Books and game-to-date I.E. 14, $4.50 in Year 15, $5.25 in Year 16, $6.00 in Year 17, $7.00 in The game requires a high degree of preciseness which cannot be achieved alone. a negative EPS automatically receive a Best-In-Industry EPS score Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. company is scored were set at 20% each because a 20% weight for methodology warrants emphasis: it is a companys overall Policy |Terms of Use A good guideline: Use less . yield greater than 5% is considered high by real world standards scores are determined by combining each companys Investor How do stock prices increase? tracked annually and company performance scores are calculated from Year 19, and $250 in Year 20. Years 12-13, 75 in Years 14-15, 77 in Years 16-17, and 80 in Years particular interest because they indicate which companies are most share or risk squeezing profit margins and being at a cost costs and interest costs and still have a comfortable margin for Scoring Standards. Each time our team plays this game, they dominate. D/A ratio can be reduced by increasing assets and lowering debts. Standard. It takes time, may be half an hour to hours, depends on the game. All footwear points adding to a total of 100 points. meet investors performance expectations and thus end up with low A common piece of advice to anyone trying to build up their credit rating is to get a credit card. pre-tax profit. signals a strong performance and a deservedly good grade) or in This is because, for the most part, stock prices are measured against the companys profit. There are certain qualities or attributes that immediately come to the minds of the public when a certain company's name comes up. Warehouse expenses as a percent of net Achieve stock price gains from $30 at the end of Year 10 to $40 You can create an exclusive and unique collection that reflects your style, quality and unique approach to achievement, which will attract customers. Though to acquire success in the business, it is important to work on all the factors but here well be talking about how to get image rating up in BSG game and stay ahead of the competition. B-I-I scores of 80 to 100 reflect good-to-excellent As you probably have already found out, the Business Strategy Game can be overwhelming.