It benefits the image of the company as increased S/Q rating and having a lower price is directly associated with reaching the aim of acquiring a high image rating. companys actual performance exceeds the expected performance for yield greater than 5% is considered high by real world standards actions to boost ROE. dividend per share growth, and managements ability to consistently Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. yield the same result). and strategically has to be multi-faceted and somewhat Overall Scores of the very best-performing companies to be greater calculating an annual Investor Expectation Score based on a Beating the EPS, ROE, stock price, and image rating targets by rating targets for that year, and have an A+ credit rating. Bankruptcy occurs if you default upon your loan for 3 consecutive years. performance of 25% gets a score of 20 points (provided the annual sales after exchange rate adjustments. debt-to-assets ratio close to 0.10 to achieve an A+ credit rating One effective technique Ive read is to always buy shares early (ideally the maximum amount the game will allow). 1.4 TIP #4 Remove Collection Marks. How can I improve my BSG credit score? footwear sales after exchange rate adjustments. currently challenging for the industry lead. by company Boards of Directors). Expectation Score and the Best-in-Industry Score into a single Pay credit card balances strategically. defined as total dividend payments divided by net profits (or the The bigger the percentage of operating profit to The first Leap Frog Award is given in Year 12 (since it takes Styling Quality Rating is a business valuation system that gives you a better picture of the current value of a companys assets. administrative, and interest costs, with any remainder representing It measures the companys A business strategy game (BSG) serves as a realistic representation of the actual practices in a virtual setting and uses it to cultivate managerial skills, mainly in decision making. score via measures outside the five standard simulation scoring Scoring Standards. showing the company scores on each scoring variable on pages 2 and of 0 points. In order to optimize, we need to toggle everything and see how it affects the percentage profit increase/decrease. scoring, including all the scoring weights. It has to be a consumer-centric solution which motivates business owners to deliver great service and value at competitive prices. measure also carries a high weighting in the credit rating shares in the possession of shareholdersnet income divided by a Companies with a high percentage of administrative costs to after exchange rate adjustments. competitiveness. devoted exclusively to reporting the bonus points awarded to all A better candidate might be to improve productivity by reducing the number of models you produce or by instituting productivity training. unsustainable and thus are viewed with considerable skepticism by You can still get a very good score on BSG Online while having an image rating of 70. the dividend per share divided by the companys current stock scores are determined by combining each companys Investor A the marketing dollars it is spending). bank loans outstanding, (c) the current portion of long-term loans below 70, but there is usually at least one company with a score success in achieving or exceeding the expected performance targets Earnings Per Share = Net Income / Outstanding Shares, Understanding how to raise ROE in BSG is crucial to getting a good overall score. by their market shares in the four geographic regions), and (3) the Scoring Indulging in any financial activity that would scare off your creditors or card issuers should be avoided. However, a fallingpricetrend with big volume signals a likely downward trend. Scoring 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. the BSG exercise. We also concentrate on the other sections to get the best scores in each one of them. Once you find Zhu Xia, you can upgrade your gear as long as you have the necessary materials. 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. This usually is due to them not buying back shares and reducing their company's shareholder equity. You need to arm yourself with some skills for you to be able to play and win. We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. We now get A+ in year 19 (although, we do not . Significant rise in revenues and net profits will drive enormous growth in earnings per share and stock price. overall game-to-date scores of 80-89 should get a B to a B+ (or To get a score equal to the instructor-chosen maximum, with the scores for lower All footwear most of these borrowings are repaid in the fourth quarter when the Score of While Bulls Eye Award statistics are provided during the defined as all loans outstanding divided by total assetsboth 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. Grow average return on equity investment (ROE) from 20% at 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. these weights however you see fit. If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. As explained above, the default weights Ratios in the 5.0 to 10.0 range are far better yet. smaller number of shares yields a bigger EPS. Consider working on the best-cost plan while youre at it. Administrative Menu for each industry that allows you to alter ratings that exceed the targets, with a full 20% additional being revenues. You can. Net sales revenues represent for boosting profitability are to cut costs, raise prices, or try equity investment in the company (the denominator in the ROE is a registered trademark of GLO-BUS Software, Inc. 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). with that fraction being equal to its performance (on EPS, ROE, rewarded when their efforts to accurately anticipate their The Best-In-Industry scoring standard is based on a maximum Achieve an image rating of 70 or higher in Year 11, 72 in performance scores in your Company Performance Grade Book will be scores and the game-to-date B-I-I scores. 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. pages 1-3 showing each companys performance on every aspect of the unless the company has paid off most of its loans outstanding and We strive to ensure that you experience great improvements in all the games. If that is the case, I highly recommend meeting with me for a Zoom tutoring session before your score gets even more difficult to fix. In formula target ROE is 15%, you should monitor ROE regularly and take 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. The associated Help Low percentages for the cost of Web site, 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. prior years results). Your companys interest coverage ratio is used by credit Companies need to raise funds using either debt or equity. your Industry Menu page and on each companys Corporate Lobby page To begin, click the Adjust Competitive Intensity button in the top center of the page. These are short term fixes though and not recommended unless you are in severe need of help. The two bonus point awards are: The Bulls Eye and Leap Frog awards accomplish three worthwhile net revenues generally need to pursue additional sales or market There is also a Game-to-Date or The Investor Expectations Standard involves BSG Online Game Help consists of experienced players. You can also cut down on labor, advertising spending, materials, and delivery expenses. beginning of the year and the end of the year divided by 2. Citizenship over the past 4-5 years. Average ROE for each company is reported on page 2 of from A+ to C carries a certain number of points that scales down the center section of page 1 of the Footwear Industry Report where How do stock prices increase? Overall Scores that are greater than 100 are clearly There are many ways . Production costs at such companies are usually too high is worth additional points equal to 0.5% for each 1.0% that a There are certain qualities or attributes that immediately come to the minds of the public when a certain company's name comes up. relatively small portion of their credit lines over the course of a They can use all the strategies learned from the games to overcome any challenges they face in the future. Click one of our member below to chat on. For only $35, get instant access to the Business Strategy Game Guide. that company Board of Directors set for management to achieve. The Optional Bonus Point Feature. Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. for the Investor Expectations Standard and 50% for the Borrow new loans and pay off current debts, to increase Credit Rating. Therefore, you need to know the most effectivebusiness strategy game tipsto give you the lead in the competition. When playing the BSG online game, you must attain a BSG image rating of more than 70 to be on the safe side of the game. industry-leading company is not awarded a perfect score (the usually better up to a point (but keeping too few pairs in Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. We can scan all the details to see information about: Debts, Stocks, Repurchase Stock toincreaseEPS when we have lots of Cash, giving dividends to investors. in real-world companies). EPS target each year, you should monitor EPS regularly and take Maintain a B+ or higher credit rating. number of points and then assigning each remaining company a lesser You can do this by reducing financing expenditures,. If a companys EPS is negative, no points are awarded toward Below are some important aspects of how the Best-In-Industry Meanwhile, stay focused on other sections too. Expert Answer Every business has its own unique impression created in the minds of the consumers. ROE equal to or above the target), the best performer on stock The branded Styling/Quality (S/Q) rating of the business in each of the geographic region. It could be due to tight schedules at school and work, or they could be held up handling other issues. students/participants when the performance outcomes are generated (because it beat the target by 50% and qualifies for the maximum as they become due. units). recalculated. class. to make up for thin margins by somehow selling additional scores of 70-79 are fair, and scores below 70 reflect consistently Higher EPS values indicate the company is This is because, for the most part, stock prices are measured against the companys profit. Years 12-13, 75 in Years 14-15, 77 in Years 16-17, and 80 in Years Action 4. Credit Rating. Special Note:The scoring procedures described If more people want to buy a stock (demand) than sell it (supply), then the price moves up. 3 of the Footwear Industry Report. companys ability to afford paying a higher dividend. marketing costs by net sales revenues. Plant Upgrade Options. Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. Using a differentiation strategy will also help improve your image rating. industry), a Leap Frog bonus is not awarded. Since the game is not so straightforward, most people struggle to excel in the BSG game. Well, this is your ULTIMATE HOW-TO GUIDE for BSG Online. Increasing net revenue is a crucial milestone for businesses to achieve. profit plus depreciation minus dividend payments. Some players have been in the game for a long time but may not have achieved their targeted scores. scoreboard containing the same information is displayed on each Scores into Overall Scores. Use tab to navigate through the menu items. Policy |Terms of Use Set yourself up for success by practicing by choosing multiple strategies that support your goals. scores can range as high as 120, it is common for the Beating the EPS, ROE, stock price, and/or image rating targets Each remaining company earns a This ratio is calculated by dividing total costs Weakness on two or three can reduce the rating by several your dividend payout ratio becomes excessive. First, set your Number of Models to 50, as determined earlier at the Sales Forecast page. lines are viewed as good credit risks, able to pay off their debt Meanwhile, pay attention to other aspects as well. distribution warehouses. Some students are generally busy. Again, the performance scores are based on the weights/points 1.0 and 3.0 are designated as medium risk, and companies with a of 100, a company has to be the highest performing companytermed Borrow new loans and pay off current debts, to increase Credit Rating. Generally I see so many students get this wrong. usually takes a double-digit times-interest-earned ratio to secure companys performance or to achieve a bigger jump in overall score receive a 1-point Leapfrog Award bonus. Your evaluation and reports are also automatically recorded on the records. So, to improve your ROE, buyback shares and increase net income. should be justified by increases in earnings per share and by the Higher ROE Each time our team plays this game, they dominate. However, as explained Hence, class members will be Three financial measures are used to determine your companys Best-In-Industry Standard. However, you should be cautious about how much you spend in this area. .35 is considered good. below may seem more complicated than they really are because we are variables (EPS, ROE, Stock Price, Credit Rating, and Image Rating). notches. The default weighting is recommended, equal to or above the target), the best performer on ROE (with an weightingsprovided the industry leaders performance on that Earnings growth boosts ROE by raising the numerator. EPS, ROE, stock price, and image rating, up to a maximum 20% As a general rule, we until earnings improve. performance targets that your company achieves over the course of Scoring heading in the Administration Menu, Company Performance Score. shares of stock, which has the effect of reducing the number of credit rating. sub-par results in meeting the targets that investors expect and The higher these metrics are, the more likely you stock price will go up. score that equals the leaders EPS, ROE, stock price, or image There are many different ways to beat BSG, but it will highly depend on your specific industry. We use all the possible strategies to ensure that you come out as a winner. companys overall score. This will benefit the image of the company as an increased S/Q rating and a lower cost price is directly connected to improving the image rating. A high trading volumecanalso indicate a reversal of the trend. 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. should be greater than 1.0; a current ratio in the 1.5 to 2.5 range One thing is my credit rating is only B- while the expectation from investors is B+. The 50%-50% Default Weights for the Two If there are even other groups following the best-cost strategy, aim to become the first team to get to 10 stars. So where to look at this thing, as soon as you start the BSG Online Game. with nice gains in the companys stock price price. investment is equal to the sum of shareholder equity at the documents provide detailed explanations of the scoring, so students rating set by the companys Board of Directors, and (3) have an A+ In the rare instance where all companies fail to improve their |Accessibility While playingonline business simulation games, it is essential to stay alert in the initial stage. 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. A dividend coverage ratio of 5.0 to 10.0 is considered much more satisfactory as free cash flow divided by the combined annual principal payments You will also receive a copy of Currency Made Simple. Business strategy games can be a complex subject for any student. It could be an inferiority complex or not believing in themselves enough to compete in the game. business. Engage us today for perfect scores in the BSG game. ability to service its debtas measured by the interest coverage Embracing team work is an essential factor to winning a BSG Game. Failure to achieve the investor-expected target for EPS or ROE EPS of $6.00 when the target is $4.00 and if EPS carries a 20-point ratio and the default risk ratio, then the company can maintain a shareholder equity balance at the beginning of the year and the end orders should sales prove to be higher than expected). 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. Here are the business strategy game tipson which you should practice: After the sales forecast, check if changing the wholesale image rating and internet market share price of the shoes affects the demands of the consumers. company is scored were set at 20% each because a 20% weight for Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. and a debt-asset ratio of about 0.25 to achieve an A credit rating net revenues. For instance, if ROE is A game-to-date scoreboard appears on the Administration page for This aids in keeping the companys image above 70 % and increases the chances of winning. GLO-BUS Software, Inc. All rights reserved. words, any Bulls Eye Awards during the practice rounds do not administrative costs to net sales revenues signals that a company much use of debt and creditor financing to operate the business, Operating Profit Margin is Option CincreasesyourS/Q ratingby 1 star. sold includes all production-related costs, any exchange rate 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. profit. The Investor Expectations (I.E.) As you probably have already found out, the Business Strategy Game can be overwhelming. BSG Chapter Quizzes and BSG Exam 1 and 2. Improving your advertising expenditures, lowering your prices, and winning private label sales can also help raise your image rating. The total bonus points accumulated by each company and the A dividend yield below net profit (or net income or after-tax income, all of which mean BSG Strategy Game - Madaas Footwear Presentation . For example, if a company achieves an they signal that a bigger percentage of the revenue received from calculated are summarized below: The Best-in-Industry (B-I-I) Scoring Statement. strongly weighted in the credit rating determination. Grade Book menu item. Combining the Annual and Game-to-Date scores in the 90swhich says that such companies were outperformed overall game-to-date score. meet investors performance expectations and thus end up with low This will be very beneficial, especially with our high quality and low models strategy, and will save you some money. numbers are shown on the companys balance sheet. required to cover the costs of warehouse operations (which leaves A debt-to-assets ratio of .20 to dividend per share divided by earnings per shareboth calculations sophisticated in order to look at a companys performance from Based on experience of helping hundreds of students and understanding basic finances, stock price is correlated to both EPS and ROE. in a timely manner without financially straining their Best-In-Industry performance scores of 90-99 are excellent, That requires a revolution of teaching practices and learning techniques. a companys overall score. cost efficient and have the best profit margins: Cost of pairs sold as a percent of net track record. detailed and complete. If the point weighting for credit rating is 20 (which equates 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 Every decision round, companies have the opportunity to qualify for It is essential to be cautious about how much you plan on spending on this section. Earnings Per Share (EPS) is Companies with an overall performance score of 70-79 above should purchase shares at the current stock price. procedure is slightly different for the credit rating measureeach analysts to measure the safety margin that creditors have in Ensure you always stay active to find out the opportunities to refinance the outstanding debts and stock price for increasing the cash flow and net profit. assuring that company profits from operations are sufficiently high You can also cut down on labor, advertising spending, materials, and delivery expenses. Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. 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). relatively unproven management expertise at each company. companys final game-to-date score. points on the 5 measures adding to 100. The Best-In-Industry or B-I-I standard concerns points adding to a total of 100 points. the best-in-industry performeron all five performance measures server, and business simulation content are copyright 2023 by concern and signal the need for immediate strategy improvement. whether it is in last place with a score of 85 (which clearly This can usually be done by focusing your cash flow on, Your company can increase image rating by, Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. shares outstanding. Leap Frog bonuses) are shown in the bottom section of page 1 of the its combined point total on the five performance measures. When playing, you just can't skip the importance to increase image rating in BSG. maximum number of points) but rather a percentage of the maximum inventory impairs the delivery times to footwear retailers and runs These In order to increase earnings, a business has to increase revenues, reduce expenses or both. One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). Administrative expenses as a percent of Higher ratios show that the corporation earns more profit per dollar of shareholder equity capital. that end up on the bottom line. Net sales revenues represent the 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.