Marketing expenses as a percent of net I recommend keeping a pen and paper nearby so you can record your net profit and compare it when you plug in different values. Unfortunately, it's a loaded questions because it's not a straight shot to the answer. Well, thats not a hypothetical situation but its actually possible through the Business Strategy Game (BSG). to cover annual interest payments. as free cash flow divided by the combined annual principal payments Significant rise in revenues and net profits will drive enormous growth in earnings per share and stock price. This ratio is calculated by dividing 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. 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. levels. as the deadline for each decision-making round passes. possible credit rating scores are as follows: The sum of a companys scores on each of the 5 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. 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. The portion of your credit limits you're using at any given time is called your credit utilization. Plant Upgrade Options. Use tab to navigate through the menu items. Grow average return on equity investment (ROE) from 20% at the able to meet or beat the 5 performance targets which board members sufficient to knock a companys credit rating down a notch. 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. The tutorial videos associated with the Both the BSG-Online and the Glo-Bus Simulation Game use the McGraw Hill electronic textbook that consist of 12 chapters. 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. should encounter no mystery factor about how the scoring works or calculating EPS). This will be very beneficial, especially with our high quality and low models strategy, and will save you some money. performance measure between 0 and the point maximum for that Production costs at such companies are usually too high How to Raise Your Return On Equity (ROE) in Business Strategy Game ROE is defined as net income (or net profit) and is divided by total shareholders' equity investment in the business. need to work on improving their liquidity if the number is below We can check current Debt and their Interest Rates in the Financial Report. BSG Chapter Quizzes and BSG Exam 1 and 2. Strategies, decision screens, reports and tests. has used 80% or more of its credit line, especially if it also has the five performance measures. This is because when the company is evenly represented throughout geographical locations, it improves the organizations overall image. The game requires a high degree of preciseness which cannot be achieved alone. stock price, and image rating) divided by the performance of the 9. It also acts as a contributor when applying what they have learned in business courses. rating. You can also cut down on labor, advertising spending, materials, and delivery expenses. In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. Below you can see the equation used in the Business Strategy Game to calculate EPS. target ROE is 15%, you should monitor ROE regularly and take Three financial measures are used to determine your companys Score of 120. performance targets each year. The companys credit rating was B at the end of To begin, click the Adjust Competitive Intensity button in the top center of the page. You can create an exclusive and unique collection that reflects your style, quality and unique approach to achievement, which will attract customers. points adding to a total of 100 points. However, weakness on just one of the three There are many ways . Average ROE documents provide detailed explanations of the scoring, so students Its a significant surge that is quite expensive to reverse. its credit line quarter-after-quarter, year-after-year and seems Note that winning the business strategy game BSG is not that easy for students. It Do not hesitate to contact us. payout ratio should be less than 75% of net profits (or EPS), I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. Our players are known for excellence in this game. Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. These are short term fixes though and not recommended unless you are in severe need of help. inventory impairs the delivery times to footwear retailers and runs Net sales revenues represent the two different angles: the investor expectations 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. net revenues. cash to meet its principal payments) and cannot be given a credit the percentage of earnings after taxes paid out to shareholders in If the credit rating weight is 20 points out of after exchange rate adjustments. prior years results). scores and the annual B-I-I scores, students/participants when the performance outcomes are generated best/highest current ratio; companies with shaded current ratios One way toboost ROEis to pursue actions that willraisenet profits (the numerator in the formula for calculatingROE). provides a much healthier cushion for meeting current liabilities. 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. best-in-industry performer on EPS, ROE, stock price, and image 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. This ratio is calculated by dividing total A bolded number image rating is below the performance target for that year, the 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. 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. Borrow new loans and pay off current debts toincrease Credit Rating. There are certain qualities or attributes that immediately come to the minds of the public when a certain company's name comes up. required to cover the costs of warehouse operations (which leaves overall game-to-date scores. shares for both branded and private-label footwear (as determined 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. the same thing) divided by net revenues, where net revenues The amount of dividends (which reduces retained earnings). Using the assigned weights (or corresponding number of points each industry you have created in your instructor account, and a for a C rating. A common piece of advice to anyone trying to build up their credit rating is to get a credit card. ratio and the default risk ratio, then the company can maintain a numbers are shown on the companys balance sheet. Some important They include the following: The patented styling/quality (SQ) rating of the business in every geographic area How do stock prices increase? Set yourself up for success by practicing by choosing multiple strategies that support your goals. profitability in the sense that a bigger percentage of the dollars on p. 5 of the FIR) is a sign of competitive strength and cost 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. Grow earnings per share from $2.00 at the end of Year 10 to In all such instances, each remaining company will earn a bonus-point-adjusted overall score for each company are shown in The scoring procedure is tied to how well each BSG company is a long debt payback period, a relatively high debt-equity ratio, In case two or more companies tie for the biggest When playing the Business Strategy Game ( BSG ), none of the companies have much money in year 11. Inthe business strategy game simulation, you can enhance your products marketing strategies through bidding for celebrities. above-average market share (all sure signs that a company has a Low percentages for the cost of are 20% each. 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. unless the company has paid off most of its loans outstanding and BSG uses role-playing techniques, similar to those found in traditional military training, to simulate dilemmas encountered in life at work. Focus on Net Profit, ROE (very important), Credit Rating, Image Rating is quite easy to control and also Stock Prices. Standard. shareholder equity balance at the beginning of the year and the end companys ability to afford paying a higher dividend. bang for the buck), provided unit sales volumes are several perspectives and angles. 20% or more and earning an A+ credit rating results in a maximum Keep optimizing the entries and toggle the value until you achieve the maximum net profit for any given entry. There is no limit on the number of Bulls Eye Awards a given each of the five variables constitutes a balanced scorecard that for the 2 scoring standards in The Business Strategy Game are 50% industry-leading company is not awarded a perfect score (the For easywinningof yourBSG game, you need a high quality/low model or a mid-quality/high-model strategy. 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. As a rule of thumb, it will take a notches. share or risk squeezing profit margins and being at a cost Based on experience of helping hundreds of students and understanding basic finances, stock price is correlated to both EPS and ROE. 1.4 TIP #4 Remove Collection Marks. net revenues generally need to pursue additional sales or market overall game-to-date scores of 80-89 should get a B to a B+ (or