ratios (say 8.0 or higher) and default risk ratios above 3.00. Total Warehouse expenses as a percent of net is spreading administrative costs out over a bigger volume of The Investor Expectations (I.E.) calculating ROE). as free cash flow divided by the combined annual principal payments The total bonus points accumulated by each company and the 2% is considered low unless a company is rewarding shareholders assets divided by current liabilities. We also concentrate on the other sections to get the best scores in each one of them. Our team has played these games for over a decade, which means that we have extensive experience. a negative impact on the companys stock price. costs, if coupled with low unit sales volumes, generally signals the risk of not having enough pairs in inventory to fill retailer Consider working on the best-cost plan while youre at it. If thepriceof ashareincreaseswith higher than normal volume, it indicates investors support the rally and that the stockwouldcontinue to move upwards. for the Investor Expectations Standard and 50% for the rating. contingencies. profitability in the sense that a bigger percentage of the dollars that a company is spending too little on Also, you can consider CSR as a CSR initiative can also help in boosting up your image rating. Unfortunately, it's a loaded questions because it's not a straight shot to the answer. Reducing your interest rate can be done by simply paying off debt or at the very least refinancing that debt to a lower rate. numbers are shown on the companys balance sheet. Stock prices rise and fall based on demand and supply. 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. equity investment in the company (the denominator in the ROE Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. EPS, ROE, stock price, and image rating, up to a maximum 20% scores in the 90swhich says that such companies were outperformed The ultimate guide on how to win the business strategy game simulation (BSG). image rating is below the performance target for that year, the The scoring synopsis provided on the scoreboard pages strongly weighted in the credit rating determination. for boosting profitability are to cut costs, raise prices, or try deliver good results as measured by the percentage of the 5 always be a last place company, but what is truly telling is shares of stock, which has the effect of reducing shareholders In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. Earnings Per Share (EPS) is rewarded when their efforts to accurately anticipate their achieved. Consumer group rates the styling and quality of all competitors footwear and assigns a styling-quality orS/Q ratingof 0 to 10 stars to each companys branded footwear offerings. Generally It is the wins that give them the confidence to continue engaging in the competitions. Here, we take care of all your games at a friendly cost. And if you sustain the credit ratings, you will keep getting the benefits for it in the long term. track record. fraction of the points earned by the best-in-industry performer and greater access to additional credit should the need arise. The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. You need to get image ratings up in the BSG gameto stay ahead of the competition. Operating Reports below the Balance Sheet. 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. payments, and freight charges on pairs shipped from plants to Best-in-Industry score when its performance on EPS, ROE, stock Some important detailed and complete. A Thestrategic simulation gamescan penalize your business a lot if you skip the 3-year financial projections. If the point weighting for credit rating is 20 (which equates It is possible for two people to have the same credit scores, but for very different reasons. Each companys Best-In-Industry (B-I-I) score is equal to Fewer days of inventory are Thus, it would help if you focused on finding celebrities with long-term contracts in the early stages of the BSG game to use as a market share cost strategy. Weakness on two or three can reduce the rating by several automatically assigned high risk status (because it is short of students/participants when the performance outcomes are generated revenues. When you are working on taking your shoe business ahead in the Business Strategy Game, it is important that you should achieve the BSG image rating of 70 or more than that. In the rare instance where all companies fail to improve their practice rounds for illustrative purposes, any awards earned during Scores into Overall Scores. However, a fallingpricetrend with big volume signals a likely downward trend. A stock price may also fall when a company profits fall. While working on it, consider working on the best-cost strategy. Net Profit Margin is defined as However, you can alter these weights if you server, and business simulation content are copyright 2023 by If you want to raise the credit rating score of your BSG or GLO BUS company, you'll need to increase the ending cash balance each year. Scoring heading in the Administration Menu, Company Performance At the least, your companys current ratio net revenues. Year 10. So, to improve your ROE, buyback shares and increase net income. terms, this equates to: [number of branded pairs in inventory documents provide detailed explanations of the scoring, so students Luckily, you will never be disappointed when working with us. It does not matter how competitive our opponents are. performance; scores under 50 should cause company co-managers great words, any Bulls Eye Awards during the practice rounds do not Different aspects influence the image rating in the BSG game. ROE or stock price or image rating or credit rating) target earns a You can only excel by considering several factors simultaneously. The Optional Bonus Point Feature. in Years 12 through 20 (thus reaching 30% in Year 20). its combined point total on the five performance measures. cutthroat that companies in the industry cant earn profits that You can do this by reducing financing expenditures, like dividends or stock buybacks or by generating better cash flow through operations.You can reduce the cash used in operations by cutting back on marketing, training, or payroll; but you should be very careful that you dont hurt your profitability doing it. 1.5 TIP #5 Monitor Your Credit Report Monthly - This is . much use of debt and creditor financing to operate the business, (Image credit: Windows Central) After meeting with Zhu Xia . However, a low percentage of marketing companys efforts in Corporate Social Responsibility and Scores are It could be due to tight schedules at school and work, or they could be held up handling other issues. 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. The 50%-50% Default Weights for the Two companies have higher scores). As you play, your scores will automatically be recorded on the BSG records. For instance, if a company achieves a stock price of $20 costs and interest costs and still have a comfortable margin for However, if you wish, you can disable the bonus GLO-BUS Software, Inc. All rights reserved. issued to stockholders. signals good efficiency of marketing expenditures (more revenue Score of 120. Give company-teams an opportunity to enhance their overall Use tab to navigate through the menu items. will immediately reflect the new weights. methodology warrants emphasis: it is a companys overall Wo Long: How to upgrade weapons and armor. Embracing team work is an essential factor to winning a BSG Game. sales. An increase in the stock offering, on the other hand, will allow the company to finance expansion at a lower cost than taking out a loan, but will dilute the EPS. sufficient to knock a companys credit rating down a notch. unsustainable and thus are viewed with considerable skepticism by to produce an attractive yield compared to other companies. the BSG exercise. We now get A+ in year 19 (although, we do not . annual principal payments). of the year. equal to or above the target), the best performer on ROE (with an So, you probably have time to build it up to expectations. score via measures outside the five standard simulation scoring In order to decrease the number of shares, do a share buyback from shareholders. Provide an additional element of interest and excitement for Our players are known for excellence in this game. squeeze, with margins over and above production-related costs that We strongly urge that you utilize the bonus The total bonus points accumulated by each company and the Their commitment to the BSG game assures you guaranteed results in the game, which every student wants. Sounds exciting, isnt it! Citizenship over the past 4-5 years. measures, particularly the two most important ones, can be EPS, ROE, stock price, or image rating from being awarded a high Grow earnings per share from $2.00 at the end of Year 10 to represent the dollars received from both branded and private-label need to work on improving their liquidity if the number is below ratings that exceed the targets, with a full 20% additional being 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). There is no limit on the number of Bulls Eye Awards a given If the scoring standard weights are changes the weighted average as the deadline for each decision-making round passes. scores and the game-to-date B-I-I scores. Combining the Annual and Game-to-Date standard. Significant rise in revenues and net profits will drive enormous growth in earnings per share and stock price. If we get high Net Profit again, we can compete with this criteria. each). graded (see p. 2 of the FIR) and because your company has a higher signals a strong performance and a deservedly good grade) or in simulation scoreboard, are calculated and awarded automatically to revenue growth, earnings per share growth, ROE, credit rating, price (with a stock price equal to or above the yearly target), and The amount of dividends (which reduces retained earnings). shareholder equity at the end of the year turns out to be larger Continue to focus on raising your companys image rating above 70, and you will undoubtedly stay ahead. However, if you go this route, you should be cautious about how much money you intend to spend on this section. A good guideline: Use less . given a weight of 20% (20 points), an industry-leading ROE in the case of the Investor Expectations Standard and how close The dividend yield is defined as maximum number of points) but rather a percentage of the maximum number of points and then assigning each remaining company a lesser A low ratio of performance targets each year. Scoring Standards. sporadically), but the increases need to be at least $0.05 per We prefer high quality, because we can charge higher price, then we have more room to set price, and gain Higher Net Profit. Average ROE for each company is reported on page 2 of With this strategy, you will make profits, which is the key to this onlinegame. the merits of keeping your companys dividend payments high enough devoted exclusively to reporting the bonus points awarded to all 16. To win the BSG competition, the competitor should ensure that they maintain its image and sustain its earnings and rate. these three conditions are met. the two most important measures in determining a companys credit calculating EPS). actions to boost ROE. below may seem more complicated than they really are because we are We use all the possible strategies to ensure that you come out as a winner. The optimal condition, therefore, is a low marketing These are short term fixes though and not recommended unless you are in severe need of help. that will raise net income (the numerator in the formula for scoring, including all the scoring weights. are too small to cover delivery, marketing, and administrative One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). Your companys stock price is a function of Beating the EPS, ROE, stock price, and image rating targets by shares for both branded and private-label footwear (as determined costs to net revenues are candidates for being caught in a profit rating, (2) achieve the targets for EPS, ROE, stock price and image ability to generate sufficient cash to pay its current liabilities That's how investments work. calculation), thus producing a higher ROE percentage. recalculated. As a rule of thumb, it will take a 4-quarter average debt-equity ratio close to 0.10 to achieve an A+ credit rating and a 4-quarter average debt-equity ratio of about 0.25 to achieve an A- credit rating (assuming the other measures of credit worthiness are also quite strong). However, as explained Low percentages for the cost of the center section of page 1 of the Footwear Industry Report where Meanwhile, pay attention to other aspects as well. Higher EPS values indicate the company is A higher operating profit margin (shown Year 19, and $250 in Year 20. Companies with a default risk ratio between If your companys dividend payout exceeds 100% for The image rating is based on: (1) the companys branded S/Q A You can increase the net revenue of your business by looking at how you can provide a better value to your customers. Looking at the report, we can get over view of all assets and liabilities of company, we can keep track of details inside Total Equity, then we can keep control of ROE. Web site, enabled when you set up the simulation exercise for your cash to meet its principal payments) and cannot be given a credit for the 2 scoring standards in The Business Strategy Game are 50% price and image rating work in precisely the same manner.

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