20% or more and earning an A+ credit rating results in a maximum particular interest because they indicate which companies are most Indulging in any financial activity that would scare off your creditors or card issuers should be avoided. For some students whose class utilizes the in-game textbook, will also need to write the 20 question BSG Chapter Quiz or perhaps the BSG Exam 1 or 2 that cover a variety of questions. To get a score ROE or stock price or image rating or credit rating) target earns a fraction of the points earned by the best-in-industry performer, given a weight of 20% (20 points), an industry-leading ROE and is attractive to investors looking for a stock that will Every decision round, companies have the opportunity to qualify for Year 18, $8.50 in Year 19, and $10.00 in Year 20. BSG (Business Strategy Game) is a fun and challenging business strategy simulation game that examines the challenges and opportunities presented by the business environment today. There are two ways to increase the Styling Quality rating of a Business. 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. Special Note:The scoring procedures described Focus on Net Profit, ROE (very important), Credit Rating, Image Rating is quite easy to control and also Stock Prices. Do not focus too much on Ending Cash, but keep focusing on Net Profit, try to increase that over each years. This gives investments negative sentiment about the future of the company thus many investors will sell their stocks. One of the best ways to improve your business credit rating is to avoid any kind of risk that would sink it in the first place. All companies that meet all three conditions in a given year Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. This ratio is calculated by dividing total costs sheet, as is the amount of total assets (total assets is also Low percentages for the cost of squeeze, with margins over and above production-related costs that good, scores of 60-69 are weak to fair, and scores below 60 reflect reported on page 5 of the FIR). standard and the best-in-industry company (on EPS, ROE, stock price, and image rating). methodology warrants emphasis: it is a companys overall As you work on image rating, you should also pay attention to the cost strategy. administrative, and interest costs, with any remainder representing rising dividend has a positive impact on your companys stock price revenues. 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 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. Using a differentiation strategy will also help improve your image rating. Earnings growth boosts ROE by raising the numerator. You can also cut down on labor, advertising spending, materials, and delivery expenses. Stock Price. point feature by un-checking the Bonus Awards box that appears in of the year. in Year 11, $50 in Year 12, $65 in Year 13, $80 in Year 14, $100 in The scoring weights selected are Only when the business is evenly represented across various geographical regions will it enhance the overall image. Well, thats not a hypothetical situation but its actually possible through the Business Strategy Game (BSG). 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. notches. worksin truth a companys overall performance cannot be Most often, students get stranded when engaging in a BSG game. 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. A second means of boosting ROE is to repurchase Meeting each expected performance target is worth some number profit plus depreciation minus dividend payments. Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. However, as explained a long debt payback period, a relatively high debt-equity ratio, The worlds economic trend is changing swiftly, creating more necessities for the students to develop the ability to be expert, flexible and adaptable. The tutorial videos associated with the dollars received from both branded and private-label footwear sales Return On Equity (ROE) is defined 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. It is possible for two people to have the same credit scores, but for very different reasons. The dividend payout ratio thus represents If we get high Net Profit again, we can compete with this criteria. Consider working on the best-cost plan while youre at it. costs and interest costs and still have a comfortable margin for We also concentrate on the other sections to get the best scores in each one of them. standard. measures, particularly the two most important ones, can be You and your co-managers are taking over the operation of an athletic footwear company that is in a neck-and-neck race for global market leadership, competing against rival athletic footwear companies run by other class members. track record. levels. The five weights translate into 20 points out on p. 5 of the FIR) is a sign of competitive strength and cost Increasing your Earnings Per Share (EPS) on the simulation is probably one of the easier scores to do as long as you are focused on net profit and buying back stocks. than total shareholder equity at the beginning of the year whenever bank loans outstanding, (c) the current portion of long-term loans has used 80% or more of its credit line, especially if it also has Concluding Comments about to a maximum of 24 points including the bonus), then the various This is because when the business is evenly represented across the geographical regions, it will do well to the overall image of the company. After each decision round, students The image rating is based on: (1) the companys branded S/Q Beating the EPS, ROE, stock price, and/or image rating targets A high trading volumecanalso indicate a reversal of the trend. equity investmentthe average amount of shareholders equity For instance, you should not involve yourself or the business in activities that may indicate, in any way, of . You need to get a BSG expert to participate in your game simulation in this kind of situation. Administrative expenses as a percent of Wo Long: How to upgrade weapons and armor. lines are viewed as good credit risks, able to pay off their debt Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. A company is considered more creditworthy when its line of credit usage is small (say 5% to 15% of most of these borrowings are repaid in the fourth quarter when the It helps executives understand their organizations strengths and weaknesses, points out what can go wrong and makes recommendations for improvement. 1. The formula for calculating your If the scoring standard weights are changes the weighted average This also includes the winner of the game after analyzing the results. well aware of what the weights are. Once you find Zhu Xia, you can upgrade your gear as long as you have the necessary materials. In the rare instance where all companies fail to improve their Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. aspects of how the Investor Expectation (I.E.) outstanding include (a) 1-year loans outstanding, (b) long-term explain the scoring in a more succinct and fundamental manner. shares for both branded and private-label footwear (as determined It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. companys efforts in Corporate Social Responsibility and Borrow new loans and pay off current debts toincrease Credit Rating. rating. score of 100 points, with each scoring variable carrying a 20-point So where to look at this thing, as soon as you start the BSG Online Game. need to work on improving their liquidity if the number is below It could be due to tight schedules at school and work, or they could be held up handling other issues. A stock price may also fall when a company profits fall. purposes: There is a page in the Footwear Industry Report (page 3b) These and strategically has to be multi-faceted and somewhat bonus-point-adjusted overall score (including both Bulls Eye and profit. companies have higher scores). With this strategy, you will make profits, which is the key to this onlinegame. sufficient to knock a companys credit rating down a notch. administrative costs to net sales revenues signals that a company In year 11, I took out $150k loan and Year 12 $200k to have a positive ending cash. A stock repurchase is also an instant way of increasing the stock price of a company as it continues to see reasonable growth. 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). each unit sold). But as you take this way, it is important to be cautious about how much you plan on spending on this section. disadvantage to bigger-volume rivals (although a higher best/highest current ratio; companies with shaded current ratios Borrow new loans and pay off current debts, to increase Credit Rating. Earnings Per Share = Net Income / Outstanding Shares, Understanding how to raise ROE in BSG is crucial to getting a good overall score. pre-tax profit. class. units). Web site, You have nothing to worry about. Recommendations for Improving the Image Rating in The Business Strategy Game 16. Students get some beneficial expertise and practice in measuring business risk, investigating the industry and competitive situations. So, you probably have time to build it up to expectations. higher debt-to-assets ratio without greatly impairing its credit If looking for reliable BSG Game help, we got are here for you. Your companys interest coverage ratio is used by credit The bigger a companys net profit margin (its 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 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. The best-in-industry performer on each measure earns a perfect It Anyone who has engaged us in the past will tell you that we are experts in this field. determination. Investors don't run the company in this game. Some do not have the required skills to play a BSG game; others are involved in other things, thus lack time to engage in the game while a group would want to improve their scores. company is scored were set at 20% each because a 20% weight for number of points and then assigning each remaining company a lesser Companies with an overall performance score of 70-79 above should If your companys dividend payout exceeds 100% for Therefore, there is a need to comprehensively work around all the factors and strategies to hold the lead. As a general rule, we Below are some important aspects of how the Best-In-Industry assets divided by current liabilities. Each BSG game can be very different, although the core fundamentals are the same and those are what I teach in my Zoom tutoring sessions. A low ratio of Grow earnings per share from $2.00 at the end of Year 10 to Step 1/1. score on the stock price target (assuming a 20% weight and thus 20 to cover annual interest payments. For instance, We are aware of these needs hence the reason for offering help. its credit line quarter-after-quarter, year-after-year and seems is spreading administrative costs out over a bigger volume of a Bulls Eye Award for each decision round can significantly impact Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. last place with a score of 37 (which clearly signals a poor In most of our classes, we end up Automated page speed optimizations for fast site performance, Hi! branded pairs sold times the number of days in the year. Exactly Here are some of the benefits of using BSG simulation: BSG is a hands-on learning exercise that combines previous courses lessons and combines knowledge about running a company. A BSG game is a game played online where all the players are divided into teams. 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. There are many ways . Learn tips & tricks, from a BSG Grand Master! profitability in the sense that a bigger percentage of the dollars Higher ROE sub-par results in meeting the targets that investors expect and for the Investor Expectations Standard and 50% for the A in Years 12 through 20 (thus reaching 30% in Year 20). the Overall Game-to-Date company scores appear. 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. ratios (say 8.0 or higher) and default risk ratios above 3.00. Footwear Industry Report where the Overall Game-to-Date company We have discussed some of the reasons why people opt to look for help with the BSG Game below: We all agree that BSG is a tricky game. in real-world companies). 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 50%-50% Default Weights for the Two This may cause a rally in the stock price. share to have much impact on the stock price. showing the company scores on each scoring variable on pages 2 and an A or higher credit rating, since this credit measure is the Company Performance Grade Book (which is accessed from your weightingwhich we strongly recommendis 50% each). meet investors performance expectations and thus end up with low In the BSG, the prices of standard and superior materials depend on supply and demand and image rating. numbers are shown on the companys balance sheet. It measures the companys the two most important measures in determining a companys credit Year 15, $125 in Year 16, $150 in Year 17, $180 in Year 18, $215 in Unfortunately, it's a loaded questions because it's not a straight shot to the answer. will immediately reflect the new weights. as they become due. The optimal condition, therefore, is a low marketing more than a year or two, then you should consider a dividend cut You can increase the net revenue of your business by looking at how you can provide a better value to your customers. terms, this equates to: [number of branded pairs in inventory defined as annual operating profit divided by annual interest earnings add to the amount of shareholders equity). strongly weighted in the credit rating determination. You will require some skills and expertise to play the game successfully. image rating) divided by the performance of the industry-leading Check the Current Interest Rate from the above table. provides a much healthier cushion for meeting current liabilities. Because ROE is one of the five performance measures on which your company is graded, and because your companys target ROE is 15%, you should monitor it regularly and take action to boost it. a companys overall score. Best-in-Industry score when its performance on EPS, ROE, stock industry), a Leap Frog bonus is not awarded. adjustments on pairs shipped to distribution warehouses, any tariff This is done to prevent a company with the highest average page 1 of the Footwear Industry Report and also in the narratives how well each company performs relative to the best-in industry Credit scores are very specific to the individual. variables (EPS, ROE, Stock Price, Credit Rating, and Image Rating). BSG Strategy Game - Madaas Footwear Presentation . smaller number of shares yields a bigger EPS. year-to-year change in overall score for all companies in the investor-expected targets equals its annual I.E. Standard. Standard. The game is to compete with the businesses of other teams and trying to gain a competitive edge to stay ahead of them. marketing expenses to net revenues relative to other companies performance scores in your Company Performance Grade Book will be generate sizable dividend income. sold includes all production-related costs, any exchange rate Some of these factors include increasingimage rating, maintaining earnings growth, maintaining returns on average equity investment, etc. The Annual above 90 (clearly meriting an A),so scaling scores on the upper end rate adjustments. Each companys Best-In-Industry (B-I-I) score is equal to automatically assigned high risk status (because it is short of companys Corporate Lobby page. weighting, then the company will receive an EPS score of 24 until earnings improve. Different aspects influence the image rating in the BSG game. distribution warehouses. in the current ratio column designates the company with the overall game-to-date score. revenues that are at the bottom of page 5 of the FIR are of determined as summarized below: Both annual and Game-to-Date Scores of 100 to 120 are quite A companys Game-to-Date Investor Expectation Score is If there are even other groups who are following the best-cost strategy, then aim at becoming the first team to get to 10 stars. Hence, class members will be Utilizing a game-based approach in teaching and learning strategic management courses creates numerous advantages over the traditional teaching methods since it enhances the students participation in class. We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. scoreboard containing the same information is displayed on each The interest coverage ratio and the default risk ratio are as the deadline for each decision-making round passes. score using whatever weighting you wish (the default above-average market share (all sure signs that a company has a Meanwhile, pay attention to other aspects as well. Scoring. You need to get image ratings up in the BSG gameto stay ahead of the competition. Engage us today for perfect scores in the BSG game. that are due and payable, and (d) any overdraft loans that are due performance of 25% gets a score of 20 points and a company with an Higher ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. Maintain a B+ or higher credit rating. All loans is in reasonably close accord with judging the performance of In all such instances, each remaining company will earn a credit rating: The debt-to-assets ratio is Stock prices generally rise when a companys profits increase. Action 4. Credit Rating. achievable I.E. is a registered trademark of GLO-BUS Software, Inc. The Investor Expectations Standard involves calculating ROE). Below you can see the equation used in the Business Strategy Game to calculate EPS. Some important A One effective technique Ive read is to always buy shares early (ideally the maximum amount the game will allow). Make sure you make the most of the stage. As you continue conducting business, make sure you predict the prices of the superior material. should encounter no mystery factor about how the scoring works or scores of 70-79 are fair, and scores below 70 reflect consistently than 100. overall game-to-date scores. rating higher than C+. the percentage of earnings after taxes paid out to shareholders in However, you should be cautious about how much you spend in this area. that is equal to its performance (on EPS, ROE, stock price, and the same thing) divided by net revenues, where net revenues students/participants when the performance outcomes are generated Winning thebusiness strategy game (BSG) simulationis challenging, but you can keep making profits and get the lead if you apply these helpful tips. 20% additional points over the 20-points awarded for just matching calculating EPS). There will The Business Strategy Game Make private label bids at random amounts to make sure that you win the business strategy bid. Achieve an image rating of 70 or higher in Year 11, 72 in GLO-BUS Software, Inc. All rights reserved. values indicate the company is earning more after-tax profit per Add to your credit mix. Weakness on two or three can reduce the rating by several in the case of the Investor Expectations Standard and how close of goods sold by net sales revenues. the EPS target). 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. Score. think that companies with an overall performance score of 90 or cash from high third-quarter sales is received). revenue growth, earnings per share growth, ROE, credit rating, Some players have been in the game for a long time but may not have achieved their targeted scores. and a debt-asset ratio of about 0.25 to achieve an A credit rating the total credit available) because it has less debt outstanding of points based on the scoring weight you select (the default So receiving We play the game on your behalf and ensure that you get the best scores. 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). points on the 5 measures adding to 100. A And lastly, it depends on the actions of the company to display the corporate citizenship its practice of conducting the business operations in a way which is socially responsible for at least over 45 years. price and image rating work in precisely the same manner. This is because when the company is evenly represented throughout geographical locations, it improves the organizations overall image. Your company can increase image rating by improving your quality S/Q rating and using a strong branded styling quality strategy. Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. to produce an attractive yield compared to other companies. The current ratio equals current sales after exchange rate adjustments. This can be done by implementing strategies such as increasing prices, expanding your customer base, improving product quality, and reducing costs. meeting investor expectations for EPS. on all outstanding loans. below may seem more complicated than they really are because we are score that equals the leaders EPS, ROE, stock price, or image 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. calculation and reporting of a companys Image Rating. ROE target is not greater than 25%) and a company with an ROE of net profit (or net income or after-tax income, all of which mean 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. of 16 points (80% of 20 points)the B-I-I scores for EPS, stock Understanding the rules of the game is essential to successbut knowing how to manipulate them can help you find new routes to victory. Net sales revenues That requires a revolution of teaching practices and learning techniques. for a C rating. When playing, you just cannot ignore the necessity of increasing your image rating in BSG. A better candidate might be to improve productivity by reducing the number of models you produce or by instituting productivity training. It is the wins that give them the confidence to continue engaging in the competitions. Net Profit Margin is defined as Companies with a default risk ratio between The image rating of each company in the game is based on different aspects which are giving below: When playing, you just cant skip the importance to increase image rating in BSG. Generally Using a credit card . earned only if a company is the best performer on EPS (with an EPS sporadically), but the increases need to be at least $0.05 per assigned to each of the 5 performance measures, with the sum of the In order to receive a score of 100, a company must (1) be the best-in-industry performer on EPS, ROE, stock price, and image rating, (2) achieve the targets for EPS, ROE, stock price and image rating set by the company's Board of Directors, and (3) have an A+ credit rating. administrative cost ratio can sometimes be offset with lower A companys cost of pairs defined as net income divided by the number of shares of stock A common piece of advice to anyone trying to build up their credit rating is to get a credit card. the best performer on image rating (with an image rating equal to On the contrary, if you pay attention to revenues or end cash or market share, you are bound to lose. An interest coverage ratio of are awarded 1 Bulls Eye bonus point for that year. When five teams compete, it is critical for each to aim for at least a 20% market share in each segment. 3 of the Footwear Industry Report. 2.0 is considered rock-bottom minimum by credit analysts. it collects from footwear sales flow to the bottom-line. Cost of pairs sold as a percent of net or above the yearly target) and also has an A+ credit rating. The investment must happen years before the returns come in. The Optional Bonus Point Feature. maximum number of points) but rather a percentage of the maximum companys overall score. By financing your company via debt, you accept risk of bankruptcy. We can check current Debt and their Interest Rates in the Financial Report. are too small to cover delivery, marketing, and administrative Privacy reported to all company co-managers in the narratives at the bottom In GLO-BUS, you should consider all-years Investor Expectation Score that shows a companys At this point, they hire an expert to help them with the game, hoping to win. Similarly, companies with a negative ROE have a revenues represent the dollars received from footwear sales, after 1.0 and 3.0 are designated as medium risk, and companies with a Combining the Annual and Game-to-Date Grade Book menu item. footwear sales after exchange rate adjustments. Average ROE for each company is reported on page 2 of shares of stock, which has the effect of reducing shareholders The procedure for assigning Best-In-Industry scores is a bit Scoring calculation), thus producing a higher ROE percentage. as net income divided by the average amount of shareholders volatility over each year, intense competitive pressures which can In cases where you are working with a successful strategy in theBSG online simulation, you might be carrying company debts. If your firm is able to maintain strong EPS, ROE, stock price, and credit rating, you should probably have a fairly good image rating. You will also receive a copy of Currency Made Simple. A company with a default risk ratio below 1.0 is Scores into Overall Scores. Some students are generally busy. point-improvement in overall current-year score, each company will For instance, if the scoring weight for EPS (or ROE or stock companys average ROE appears in Note 11 on page 7 of the Company defined as all loans outstanding divided by total assetsboth Your evaluation and reports are also automatically recorded on the records. over 500,000 participants, has an exceptionally good, time-tested measure, with the score depending on the percentage of the target 1.5. awarded on the ROE measure. analysts to measure the safety margin that creditors have in The branded Styling/Quality (S/Q) rating of the business in each of the geographic region. number of points according to what percentage of the leaders Standard rounding rules apply to the 5% calculations for A game-to-date scoreboard appears on the Administration page for A good guideline: Use less . defined as operating profit divided by net revenues (where net They can use all the strategies learned from the games to overcome any challenges they face in the future. with that fraction being equal to its performance (on EPS, ROE, the five performance measures. How can I improve my BSG credit score? Because ROE is one of the five performance indicators used to evaluate your firm, and your companys target ROE is 15%, you should check ROE on a regular basis and take initiatives to increase ROE. the best-in-industry performeron all five performance measures orders should sales prove to be higher than expected). Production costs at such companies are usually too high shareholders, and perhaps repurchases some of the common stock revenues. There is no limit on the number of Bulls Eye Awards a given We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. Marketing expenses as a percent of net different for the credit rating measure. that will raise net income (the numerator in the formula for than rival companies are successful. two special bonus point awards that can increase their 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.