The Business Strategy Game can be scary, as you are no doubt aware. It will become clear as you advance through the BSG game that there will be a lot of times when you wonder, “How did I do that?” The question “How is this determined?”
Your ultimate BSG GAME Guide may be found here.
Tips for Beating the SSG
Obviously, everyone’s top priority is this. It’s unfortunate that the question is loaded because it has a hidden meaning. There are several ways to defeat BSG, however it mostly depends on your sector. Although each BSG game is distinct, the fundamental principles always hold true, and I teach these in my Zoom coaching sessions.
By making long-term decisions early on to develop a solid product strategy that enables you to produce some of the least expensive shoes in contrast to your rivals, you can win BSG. I advise maintaining an above-average wholesale price to boost your net profit margin rather than cutting prices to capture a larger market share.
Profit in BSG is king, and if you do it right, you can create a business that has some of the lowest production costs and the highest-quality shoes available. A true Blue Ocean strategy for BSG Online, or a hybrid strategy as I like to refer to it.
How to Raise EPS for BSG
As long as you concentrate on net profit and stock buybacks, increasing your EPS on the simulation is undoubtedly one of the easier scores to accomplish. The formula for EPS in the business strategy game is displayed here. Therefore, your EPS will improve as long as you raise net income while lowering shares outstanding.
How to Increase BSG ROE
Achieving a good overall score in BSG requires understanding how to increase ROE. I’ve observed a lot of games between teams with strong EPS and credit ratings but weak returns on equity. This frequently results from them not buying back shares, which lowers the shareholder equity of their company. Therefore, repurchase shares to increase your net income and ROE.
In the BSG game, how do you increase the stock price?
Sadly, BSG Online doesn’t disclose how they arrive at stock valuations for their simulation. I think that the stock price is related to both EPS and ROE based on my experience helping hundreds of students and my understanding of basic finance. The likelihood that your stock price will increase increases when these criteria are raised.
Your athletic footwear company’s stock price will rise, per the player’s directions, if you raise EPS, enhance ROE, maintain a strong credit rating, increase dividends annually, and continuously beat investor expectations.
How to Raise Your Credit Score Using BSG
One of the easiest ways to enhance your overall Game to Date (GTD) score is to improve your credit score. This is typically performed by focusing your cash flow on reducing the debt-to-asset ratio on your company’s balance sheet.
Interest coverage ratio, debt to asset ratio, and risk of default ratio are the three criteria that are utilized to create credit ratings.
Simply paying off debt or, at the absolute least, refinancing it at a lower rate will lower your interest rate. The D/A ratio can be decreased by growing assets and decreasing debts. To lower your overall risk of default ratio, lower your total interest expenses.
How to Raise Your BSG Image Rating
By raising your quality S/Q rating and executing a solid branded styling quality approach, your organization can enhance its image rating. A higher image rating can be attained through increasing private label sales, lowering rates, and improving your advertising budget.
It is vital to have a high image rating in order to get a perfect score of 110 (plus bonus points), but I don’t think that should be the main goal. On BSG Game Online, you may still get a pretty good score with an image quality of 70.
Although it’s not ideal, it happens frequently when students get overly preoccupied with their image evaluation scores. You should have a positive image rating if your business can maintain excellent EPS, ROE, stock price, and credit rating. Your image rating will be improved by employing a differentiation technique.
How to Increase Your Net Profit in BSG?
The majority of pupils seem to get this wrong. They are really worried about having a high square meter rating, low wholesale and online marketing pricing, a poor distribution and/or branded production plan, and the wrong mindset for market share.
For you to boost your net profit, you must have a solid cost plan based on economies of scale in Latin America and the Asia-Pacific region. By eliminating s/q rating, reducing TQM, decreasing Best Practices Training, and (most likely) raising prices, you can boost your net profit right now.
These are only short-term fixes, so only resort to them if you are truly helpless. If so, I firmly suggest you to arrange a Zoom coaching session with me before it becomes even more challenging to raise your score.
How to Successfully Start Your Business Strategy Game
You must get off to a strong start in your BSG simulation if you want to have the best chance of winning against your opponents. Although it is true, the creators of the Business Strategy Game will never acknowledge it. Companies that take the initiative are more likely to succeed. Many of the pupils I tutor who have an advantage over the competition typically perform very well.
Here are four essential tips for starting off successful in your BSG Game Help.
Tip #1: build in Latin America.
Most possibly the most important long-term cost-cutting strategy you can employ in your game is to build in Los Angeles.
Latin America is one of the cheapest regions to build because of labor costs, and the sooner you establish space and equipment there, the sooner you can start saving $10 per shoe in customs fees. To benefit from economies of scale, keep in mind to construct at least 3,000 places, which gets me to my following point.
Tip #2: Lower Prices Due to Increased Production
Here’s a straightforward mistake I make in BSG rather often. In Europe, Africa, and Latin America, many businesses only install 1,000–2,000 spaces, or they let their equipment deteriorate in years 15–16 but never restore it.
Your cost per shoe will increase even if you just produce a few thousand shoes in each region. It is essential that a production facility can make at least 3,000 pairs of shoes; otherwise, you should carefully consider choosing a different one that can or looking for alternative efficient ways to lower demand while increasing profits.
Tip #3: Don’t stop providing retailer support just yet.
I erred personally while finishing my MBA in simulation. Even though it could seem like cutting off retailer support entirely would increase your EPS and net profits, doing so is actually bad until the very last year (hint hint).
This is because ending store support will result in a yearly decline in demand. You must maintain your demand above average for the industry to continue increasing it.
Tip #4: My Favorite Tip
There are four possible corners for your business game strategy, as seen in the illustration at the top of this piece. Each has a unique play style that needs to be taken into consideration separately. My favorites are numbers 3 and 4, as they enable me to sell a lot of shoes while earning the most money.
I have helped a huge number of pupils succeed in these areas. The fourth option might be the finest, but to succeed there, you need to be at the top of your field. Your company will need to invest a lot on TQM and best practices training if you want to be in the top right corner.
One more piece of advice: Steer clear of corner #1. You will undoubtedly lose your game, as nobody has yet managed to win there in BSG.
Further Resources
These ideas are not all-inclusive. You are aware that there are many decisions to be made each year. I provide a range of services, such as tutoring through bsggame.com.
