business strategy game distribution and warehouse

However, try your best. At the end, I increased dividends to boost my ROE. With increased competition, prices tend to decrease. We will build new Plants in LA, keep focus on different segments, high and very high quality. Hi, thanks for the great strategy! However, with effective BSG simulation tips, you can keep your company ahead of the competition. We increase wage, compensation, bonus and keep high training, TQM as we used to doing in the last 8 years. I would still go for the 50 models and make sure to buy or build capacity so you have enough for your private label. My friend and I walk through the simulation on how it works. Besides, your team of managers will develop the critical thinking they need to move beyond the functional management of the company as a whole. Im playing the new version of the game, and your guide has worked perfectly for the first two years! Use the remaining 30% capacity to sell shows in private-label! By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. So, play around and find the best combination for your given S/Q rating that yields the highest net profit. 3/29/2021 BSG Decisions & Reports Projected Year 12 Performance Scoring Measures EPS (earnings per . It is definitely around 1.2 though and I recommend starting off with this value. We even understand the very details such as marketing per pair of shoes, cost of warehouse, administration per pair of shoes, which can contribute to the total cost making the Net Profit higher or lower then decide the Business Results and overall market development. Do you know why is that? You are almost done for the Sales Forecast decision page. That is overall good. Your Delivery Time should be set to 3 weeks. On the other hand, other players gamble for the private market with a high price, a large volume to lead. . Similar to the branded production, try out the different values to see which combination will give you the lowest Average Production Cost value for your plant and hence, the highest profits. The BSG generates the complete outcome of each years operations roughly 20 minutes after each decision made around the deadline. Yes, I would definitely do plant upgrade option C! I dont understand why it did this as this capacity was unused and there was upside to having it as my production was max out for the demand. Increase models? However, traditional warehouse management systems are not designed with the flexibility or technology capacities to address ongoing challenges in the . Key Term business strategy game year 11 decisions; This preview shows page 1 - 2 out of 2 pages. Okay! But this year the shipping is too high from AP to LA so I cannot make any money from LA. Hello, thanks for the great strategy, it is working (1st place) ! Again, trying out different combinations and optimizing net profits is key for these values. havr the highest stock price, image rating at 90, A+ still, and double digit EPS. Do not focus too much on the market share but focus more on profits. G Brand has a Vision to establish a worldwide brand dedicated to innovative design and best provider in quality at reasonable prices, allow becoming a global leader in the athletic branded shoe market. Strategies, decision screens, reports and tests. However, keep in mind that your regional endorsement value should not be higher than 400 in any region. Play with your numbers around and tweak them to generate maximum net profit. If you are completely new and your projected performance box is not showing yet, you have to click the Save Decisions button on the upper right-hand corner for the projected performance box to appear. In my opinion, I believe the other teams are thinking on exploit the private label. Like I already said in my previous post, the most important thing is to toggle each and every value and pay close attention to your net profits. The Business Strategy Game (BSG) comes in handy as a realistic representation of the actual practices in a virtual setup. $50.66 but $50.67 gives you higher profits, go for the higher prices. We also regularly pay old loans to get higher Credit Rating. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. Whenever you change and sharpen any decisions, you should keep track of your net profits. With this, they raised the global capacity to 30,000 when the potential global demand (including private label) is only 24,218. This decision page is mainly a waste of money and we will not spend a lot of time with this page. The BSG company co-managers must make decisions relating to plant operations, distribution and warehouse operations, workforce compensation, marketing, online sales at the companys website, sales, and finance. We need to keep continue going up to expand and to create new markets. . From round 2, there is a risk that other groups can set the same strategy with the winner can be you. I put $1.00 pay dividends, which turned out 20,000k in total. Five ways that warehouse strategy can benefit your business include: Inventory Management Accuracy Price Stabilizing Tools Technology for Packing & Processing Locations that Meet Your Needs Outsourcing to Fulfillment Services We will get ROE higher soon, and faster than other competitors. . Which wholesale are you referring to? You will not have any complaints about the quality of the assignments we deliver. Our G-Brand Company will continue to pursue its existing High Quality Average Price Large Collection strategy; However, to increase its market share and thereby increase revenue, our company, focus on Net Profit to increase ROE. As such, your views and analysis of the information in the latest Company Reports, in Footwear Industry Report, and the Competitive Intelligence Reports will serve as the basis for agreeing upon any strategy changes or making a revised set of decisions for the following year. Is there anyway to increase the demand for my shoes in the internet/wholesale markets? You need your capacity and it is never a good idea to sell your existing capacity. We also learn a lot from the BSG itself and from our class mates, other teams, even we compete in the games, but in order to run effectively, we have to look at our competitors to learn their strategies and we see what they did well or not very well, we learn by doing this. Your team members will realize that the final decision usually involves compromising between what is needed for the overall company and personal preferences. However, some values, such as the Wholesale Price have decreased instead of increased. in years 13-14-15. As always, do not forget to save your decisions after you are done. I will explain soon, how to increase plant capacity and why we need the capacity for private label. Keep track of total Net Profit to have enough money to build new factory, or we can always borrow to do so. You are now done with all your decisions for the Corporate Citizenship decision page and should hit the Save Decisions button on the upper right-hand corner. Hello. From experience Id say tho that it is already too late to adjust to my strategy presented. This has been very useful. I followed your recommendations, and I have a good rank. Sometimes thats cutting expenses, sometimes thats increasing expenses (even though it might not make sense at first). My guide follows the rule highest net profit is key to success. With revised strategy, G-Brand will focus on offering higher quality products, more models, more fashion, to be industry leader in cost for value. Hi there! Wow, you are done! You dont have to care about your retail outlets anymore so adjust the price so maximize your net profit, without the 40% rule. I did not forget it, but we will take a look at it later. Keep track of close competitors, H and others. Promise I wont have tons of question haha. I usually have the highest net profit when setting Enhanced Styling / Features to $50k, TQM / Six Sigma Quality Program at around $0.70, and Best Practices Training at $5,000. In Y12, I paid early payment 12,000k at 8.5% and continued borrowing 70,000k at 4.5% for 5-year). However, there are still some other voluntary decision that will prepare you for future decisions. Advantage of this is, that you dont have to pay too much attention to your competitors. Moreover, consider the best margin for this market and ensure you can have the contract. The cost of the game varies depending on the version and the number of players, but typically ranges from $50 to $100. honestly i started with 150 models at 6 stars and went to 200 and 7 stars, 8 in private label. For this blog post, I will concentrate on the high-quality + low model strategy. Again, try out each percentage for each region and set it to the percentage that yields the highest profits. When contracting a celebrity, your advertising efforts in the Sales Forecast section should not be low. We do not focus on rebate, time of delivery. We will keep the largest market shares in Internet Sales. Besides, you can lower the cost per pair of shoes. My question is what if I decreased the pay dividends to $0.15 from $1.00? From Year 19, if any, we have over 100 million cash in hand and Net Profit every year, it will be better financial status for us to expand or invest in upgrading new factories, or even produce at higher stars 8, 9 or 10 stars. Thanks a lot! You now need the forecasted Regional Sales Volume for both the Internet Segments and Wholesale Segments in all four regions that you wrote down earlier. Yes, its not too late yet to follow through with my tips. What should I do in this case? Hence, make sure to plug in every possible value to reach the highest net profit possible. Another important indicator of profitability is the return on equity (ROE). Try out different combinations that keep you at 8* and the highest possible net profit. To win BSG game simulation, you need to follow some ingenious tips that are essential business strategy game tips that your team should focus on: Business Strategy Game simulation isnt easy to win, but if you work with these ingenious tips, you can make profits and win your BSG game without a hassle. After you have calculated the manufacturing volume for each region, add up your N.A. Theres not right amount of capacity you should purchase. How can the company lead the market in 10 years? This is your new, more precise regional wholesale sales volume. This Branded Distribution table of decisions seem to need more time. and A-P plant, focus on your Total Branded Production Needed to Achieve Year XX Sales Forecast section on the lower half of the page. We need to adjust the number of productions to optimal these decisions. Thats a game changer!! It has to find ways expand so that cost of production at high quality still low enough to increase high margin, high market share and getting over all high Net Profit. We have two plants in year 11, and growth rate of market is about 5-7%, during 10 years from year 11 to year 20 we will need to double may be triple production capacity. PS: I do the 5-year-loan 12,000k in Y11 (7% interest); In year 12, I paid #1 Long-Term (early payment) 12k at 8.2% AND borrow 70,000k 5-year-loan at 4.5%. im at year 17 and perfect score twice, 1st in last 3 years and 2nd twice. and L.A. volumes and finally plug them into the NA manufacturing slot. In 2020 digital game sales outpaced physical sales for the first time. Increase S/Q ratings? . I am currently dominating my industry, and closing in on the top 100 list! However, if you loose and the share price will go down. Annual leasing and maintenance fees of $1 million per distribution center/warehouse in each region Per. It makes sense; the more ads you run, the more your celebrity endorsement will be seen and the more effective it is. If I have cash available after doing all my decisions, I like to alternate between building additional capacity, purchasing plant upgrades, paying off loans and repurchasing stock in the following years. Fin. Sounds good, congrats! I started with 250 models and S/Q rating of 5. So do you mean although we sell exactly same shoes it does not matter even my rivals price is lower than mine so long as i can maximize my profit? Learn how your comment data is processed. Company operations parallel those of actual athletic footwear companies. After you have calculated your new regional wholesale sales volume, add the regional internet sales volume to it. Therefore, the first set of decisions your team of managers makes is for year 11. Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. Here is a chart again tho show you the process: If your regular production capacity is not sufficient, use overtime. I now have another question about capacity. We also learn that Loans from previous years may have higher interest rate, we can borrow new loans to pay off old debts, and get higher Credit Rating because we can pay loans. If it is 0%, that is fine as well, do not worry about it.