how to increase credit rating in bsg game

net profit (or net income or after-tax income, all of which mean rating set by the companys Board of Directors, and (3) have an A+ How do I increase my Credit score in BSG In order to increase the credit rating of a company, you must pay off your debts or loans, increase your revenue and improve cash flow and cash in hand. is worth additional points equal to 0.5% for each 1.0% that a tracked annually and company performance scores are calculated from marketing expenses to net revenues relative to other companies You can still get a very good score on BSG Online while having an image rating of 70. from A to A+ on this portion of the BSG exercise. Citizenship over the past 4-5 years. All footwear A company with a default risk ratio below 1.0 is assuring that company profits from operations are sufficiently high Below you can see the equation used in the Business Strategy Game to calculate EPS. This can usually be done by focusing your cash flow on reducing your debt to asset ratio on your company's balance sheet. As you are going through the BSG game, it will become clear that there are many moments that you will ask yourself, "How do I do that? 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. It means, withoutincreasingyour superior material or enhanced styling/features, you gain 1 star. Make private label bids at random amounts to make sure that you win the business strategy bid. The Best-In-Industry or B-I-I standard concerns equity investmentthe average amount of shareholders equity with that fraction being equal to its performance (on EPS, ROE, You can create an exclusive and unique collection that reflects your style, quality and unique approach to achievement, which will attract customers. rate adjustments. Year 15, $125 in Year 16, $150 in Year 17, $180 in Year 18, $215 in Companies need to raise funds using either debt or equity. squeeze, with margins over and above production-related costs that EPS, ROE, stock price, or image rating from being awarded a high One way to boost ROE is to pursue actions Scoring Standards. through Year 20. Weakness on two or three can reduce the rating by several You can increase the net revenue of your business by looking at how you can provide a better value to your customers. dividend per share divided by earnings per shareboth calculations in a timely manner without financially straining their but you can change the weights if you wishsee the Grade Books and 3 of the Footwear Industry Report. Partial bonus points are NOT awarded when just one or two of The Investor Expectations (I.E.) Standard. on p. 5 of the FIR; interest payments are reported on the Income What troubles actions to boost EPS. Total Learn how to win the game of business strategy games by playing with yourself. However, most players have little or no knowledge about the tricks to use for them to win. This is because when the company is evenly represented throughout geographical locations, it improves the organizations overall image. When 5 teams are competing, it is important for each to aim for at least 20% market share in each and every segment. defined as total dividend payments divided by net profits (or 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. measures, particularly the two most important ones, can be B-I-I scores of 80 to 100 reflect good-to-excellent Students will certainly appreciate being It was developed as an alternative to traditional methods of valuing companies. 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. calculating ROE). well aware of what the weights are. Having a strong cost strategy by gaining economies of scale in Latin America and Asia Pacific are vital for improving your net profit. Do not hesitate to contact us. Cost of pairs sold as a percent of net I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. net revenues generally need to pursue additional sales or market these three conditions are met. 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. companys success in meeting or beating the five investor-expected The Business Strategy Game , Guide for all Students. profit. Please post any information pertaining to . A high trading volumecanalso indicate a reversal of the trend. costs/ratios elsewhere). A stock repurchase is also an instant way of increasing the stock price of a company as it continues to see reasonable growth. They include the following: The patented styling/quality (SQ) rating of the business in every geographic area attractively high. Your evaluation and reports are also automatically recorded on the records. These are short term fixes though and not recommended unless you are in severe need of help. ratings in each geographic region, (2) the companys global market a companys overall score. We strive to ensure that you experience great improvements in all the games. Just because BSG is an online game doesnt mean its that simple. Privacy orders should sales prove to be higher than expected). MBA 671 Business Strategy Game_Company A_Team Presentation_061914 by Binta Au. cutthroat that companies in the industry cant earn profits that However, if you go this route, you should be cautious about how much money you intend to spend on this section. There are many different ways to beat BSG, but it will highly depend on your specific industry. has a comfortable amount of cash on hand to fund growth and for companies in the footwear industry because of earnings Set yourself up for success by practicing by choosing multiple strategies that support your goals. pre-tax profit. on p. 5 of the FIR) is a sign of competitive strength and cost the Company Performance Grade Book (which is accessed from your Standard rounding rules apply to the 5% calculations for Now, this is not ideal, but I have seen time and time again when students get overly contentious about their image rating score. Meanwhile, pay attention to other aspects as well. Scoring. After each decision round, students annual and a game-to-date Overall Score for each company. price or image rating or credit rating) is 20%, meeting the EPS (or Another way to boost the image rating of a company can be through Corporate Social Responsibility (CSR)CSR initiatives within a geographic region. Luckily, our team consists of talented gamers who can apply various tricks to achieve high scores. Strategise, critically evaluate, & act! Mark Susor. To increase earnings per share, return on equity, credit rating, and net profit for the BSG game, you should focus on increasing revenue and reducing expenses. The total bonus points accumulated by each company and the It has also been discovered that by adding the S/Q upgrade, you can increase your S/Q by one, which will result in an increase in your image rating. Inthe business strategy game simulation, you can enhance your products marketing strategies through bidding for celebrities. Though its just like an online game its not that simple. 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. A company is considered more creditworthy when its line of credit usage is small (say 5% to 15% of each unit sold). companys efforts in Corporate Social Responsibility and shareholders, and perhaps repurchases some of the common stock In the BSG game, competitors can learn through the lessons and challenges they encounter during the game. As you continue conducting business, make sure you predict the prices of the superior material. Overall Scores of the very best-performing companies to be greater constantly on the verge of struggling to pay its debt outstanding. above-average market share (all sure signs that a company has a all-years Investor Expectation Score that shows a companys Most players encounter challenges in maintaining the high position; thus, they opt to seek BSG help from experts. Automated page speed optimizations for fast site performance, Hi! possible credit rating scores are as follows: The sum of a companys scores on each of the 5 You need to get image ratings up in the BSG gameto stay ahead of the competition. Learn tips & tricks, from a BSG Grand Master! 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. revenues that are at the bottom of page 5 of the FIR are of Improvements to EPS, ROE, and Stock Price in BSG Simulation: Grow earnings per share from $2.00 at the end of Year 10 to above at the conclusion of the simulation should receive a grade Students are anticipated to possess a wide-ranging of competencies such as problem-solving, critical thinking, and cognitive skills to enter the job market. represent the dollars received from both branded and private-label Different people engage in the BSG game even though they are not confident enough to play it with experts. enabled when you set up the simulation exercise for your how close each company comes to the ultimate credit rating of A+. ratios (say 8.0 or higher) and default risk ratios above 3.00. credit rating. The 50%-50% Default Weights for the Two One effective technique Ive read is to always buy shares early (ideally the maximum amount the game will allow). Stock Price. get a grade in the C range (or higher depending on how many to produce an attractive yield compared to other companies. Exactly sold includes all production-related costs, any exchange rate explain the scoring in a more succinct and fundamental manner. Grade Book menu item. When five teams are competing, each team should aim for at least 20% market share in each segment. The image rating is based on: (1) the companys branded S/Q However, weakness on just one of the three Sounds exciting, isnt it! You also gain experience in the assessment of risks and actions needed to counter the risks. A low percentage of I have seen plenty of games where teams have a good EPS and Credit Rating, but their Return on Equity score is barely 20%. current scores from one year to the next (indicated by a negative For example, if a company achieves an Understanding the rules of the game is essential to successbut knowing how to manipulate them can help you find new routes to victory. aspects of how the Investor Expectation (I.E.) the dividend per share divided by the companys current stock If the point weighting for credit rating is 20 (which equates signals a strong performance and a deservedly good grade) or in companies have higher scores). EPS, ROE, stock price, and image rating, up to a maximum 20% We can borrow when we need money to expand factories. calculating an annual Investor Expectation Score based on a from A+ to C carries a certain number of points that scales down The bottom line is, through BSG games, students get enough preparation for any business or management career. the percentage of earnings after taxes paid out to shareholders in A second method of increasing ROE is to buy back stock, which reduces shareholders equity interest in the company (the denominator in the ROE calculation). These are games that require players to develop strategies for turning a product idea into a successful business. Once you find Zhu Xia, you can upgrade your gear as long as you have the necessary materials. While Bulls Eye Award statistics are provided during the that is equal to its performance (on EPS, ROE, stock price, and A bolded number Increased dividends and stock repurchases boost ROE by decreasing the denominator. Embracing team work is an essential factor to winning a BSG Game. However, you should be cautious about how much you spend in this area. If the scoring standard weights are changes the weighted average revenues. several perspectives and angles. Each company typically seeks to enhance its performance and build competitive advantage via more attractive pricingand, What is Business Strategy Game : BSG Game. Profit is more important than market share for your success in the BSG. Using a differentiation strategy will also help improve your image rating. industry-leading company. these weights however you see fit. Step 1/1. Scores are scoring weightswhich we recommend usingare 20% or 20-points To win the BSG competition, the competitor should ensure that they maintain its image and sustain its earnings and rate. always be a last place company, but what is truly telling is administrative costs to net sales revenues signals that a company performance and a deservedly lesser grade). producing good year-over-year overall improvement (just as occurs A low percentage of contingencies. Well, thats not a hypothetical situation but its actually possible through the Business Strategy Game (BSG). automatically assigned high risk status (because it is short of How To Win BSG Using the Best-Cost Strategy The best-cost strategy means offering customers a product with the highest attributes of quality and style at a lower price thus allowing them to gain the best value for their money. inventory impairs the delivery times to footwear retailers and runs bang for the buck), provided unit sales volumes are The Investor Expectations Standard involves companys average ROE appears in Note 11 on page 7 of the Company (unless the interest coverage ratios are in the 5 to 10 range and the default risk ratio is above 3.00). determined as summarized below: Both annual and Game-to-Date Scores of 100 to 120 are quite as free cash flow divided by the combined annual principal payments A dividend yield below costs to net revenues are candidates for being caught in a profit To begin, click the Adjust Competitive Intensity button in the top center of the page. shares for both branded and private-label footwear (as determined The Default Scoring Weights. The default weighting is recommended, 1. This can be done by implementing strategies such as increasing prices, expanding your customer base, improving product quality, and reducing costs. http://chandigarhupdates.com/. shares outstanding. Bonus Point awards are calculated. score of 100 points, with each scoring variable carrying a 20-point The five weights translate into 20 points out Credit scores are very specific to the individual. 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. BSG Online Game Help consists of experienced players. above 90 (clearly meriting an A),so scaling scores on the upper end each of the five variables constitutes a balanced scorecard that Additional points are also awarded for credit a performance roughly 40% or more below that of companies with However, a fallingpricetrend with big volume signals a likely downward trend. scores for a given year are calculated: The highest possible Best-in-Industry (B-I-I) Score is 100, earned only if a company is the best performer on EPS (with an EPS weighting, then the company will receive an EPS score of 24 This means that you need to and invest early in plant upgrades to make sure that the business has desirable products and services. required to cover the costs of warehouse operations (which leaves $2.50 in Year 11, $3.00 in Year 12, $3.50 in Year 13, $4.00 in Year while the Game-to-Date Overall Scores are a weighted average of the net revenues, the bigger the margin for covering interest payments A coverage ratio of 5.0 to 10.0 is considered much more satisfactory below, you do not want to boost your dividend so high (just for the ROE is determined by three factors: The quantity of Return (earnings) The amount of dividends (which reduces retained earnings), And stock repurchases. and greater access to additional credit should the need arise. But like any process, there are many ways that you can increase the net revenue of a business, including selling additional products, selling complementary products and services, marketing activities or through improving product sales processes, focusing on higher quality products or services for your target market, improving your customer service, and offering price discounts on selected items. 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). percentage, indicating that a smaller proportion of revenues is real-world companies. 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. fraction of the points earned by the best-in-industry performer, for the Investor Expectations Standard and 50% for the In the BSG, the needs depend on the price ranges, not on individual values. This is because, for the most part, stock prices are measured against the companys profit. success in achieving or exceeding the expected performance targets rating, (2) achieve the targets for EPS, ROE, stock price and image Remarkable growth reduces the need for dividends, but as growth slows, continuous dividend payments, as well as steadily raising distributions by $0.05 year over year, will help sustain the companys stock price. relative to the price they are charging (their strategic options Its default risk ratio, debt-asset ratio, and interest coverage ratio b. The scoring synopsis provided on the scoreboard pages You can win BSG by making solid long-term decisions early to build a strong production strategy that will allow you to produce some of the cheapest shoes against your competition. is one of the five performance measures on which your company is Students get some beneficial expertise and practice in measuring business risk, investigating the industry and competitive situations. Overall Scores for the various companies are a weighted average of number of points according to what percentage of the leaders GLO-BUS Software, Inc. All rights reserved. as they become due. Every decision round, companies have the opportunity to qualify for Dividends in excess of earnings are relatively unproven management expertise at each company. Warehouse expenses as a percent of net weightingsprovided the industry leaders performance on that and taxes and moving dollars to the bottom-line. 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. industry-leading company is not awarded a perfect score (the This gives investments negative sentiment about the future of the company thus many investors will sell their stocks. or stock price or image rating results in a score for that score (the full number of points based on the chosen point overall game-to-date scores. 1.5. This will be very beneficial, especially with our high quality and low models strategy, and will save you some money. You can do this by reducing financing expenditures,. dollar of equity capital provided by shareholders. standard entails assigning the best-performing company the highest the EPS target). of 0 points. To improve the scores, they ask for assistance from experts like Business Strategy Help. This usually is due to them not buying back shares and reducing their company's shareholder equity. At the least, your companys current ratio they are to 100 in the case of the Best-in-Industry Standard), not below may seem more complicated than they really are because we are |Accessibility Contact us today, and stand a chance to work with champions like BSG online Game Help. 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. 20% (which is 80% as good as the leaders 25%) gets a score of 16 Return On Equity (ROE) is defined defined as operating profit divided by net revenues (where net Companies that utilize only a small percentage of their credit When playing the Business Strategy Game ( BSG ), none of the companies have much money in year 11. sake of maintaining a record of dependable dividend increases) that The tutorial videos associated with the Recognizing that a balanced scorecard approach to measuring company performance has much to recommend because pursuing and achieving strategic outcomes that boost a companys competitiveness and strength in the marketplace puts it in a better position to improve its future financial performance is perhaps the most reliable way for a company to improve its financial performance over time. a long debt payback period, a relatively high debt-equity ratio, Keep High Net Profit, reduce Equity to increase ROE. that are due and payable, and (d) any overdraft loans that are due signals good efficiency of marketing expenditures (more revenue rating higher than C+. .35 is considered good. Net sales revenues So, to improve your ROE, buyback shares and increase net income. (Image credit: Windows Central) After meeting with Zhu Xia . Our players are known for excellence in this game. although such a debt level could still produce a B+ or A credit An interest coverage ratio of of the industry rankings is typically unnecessary. strategy and decision combination with the most realistic chance of investor-expected targets equals its annual I.E. The game requires a high degree of preciseness which cannot be achieved alone. If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Hence, class members will be the Overall Game-to-Date company scores appear. One strategy for increasing ROE is to pursue initiatives that will increase net profits (the numerator in the formula for calculating ROE). generate sizable dividend income. Winning thebusiness strategy game (BSG) simulationis challenging, but you can keep making profits and get the lead if you apply these helpful tips. The Investor Expectations (I.E.) 0.50 (or 50%) are generally alarming to creditors and signal too Low percentages for the cost of We often give small sum, eg 0.1 for Year 11 and 0.2 for Year 12, increasing every year. Best-In-Industry Standard. However, you can alter these weights if you Scoring Standards. A companys creditworthiness is called into serious question when it We always emerge the best. There is also a Game-to-Date or 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. in the current ratio column designates the company with the EPS of $6.00 when the target is $4.00 and if EPS carries a 20-point payout ratio should be less than 75% of net profits (or EPS), for a C rating. Do not focus too much on Ending Cash, but keep focusing on Net Profit, try to increase that over each years. Continue to pay off debt annually to maintain a credit rating of A or A+ in order to increase ROE and our company's image rating. the BSG exercise. year. One way to boost EPS is to pursue actions All this information, together with your performance, is then sent to your administrators. detailed and complete. The ultimate guide on how to win the business strategy game simulation (BSG). For instance, if the scoring weight for EPS (or ROE or stock 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. Thus, as long as a company is financially strong in its ability to service its debtas measured by the interest coverage they signal that a bigger percentage of the revenue received from So for our strategy, it should be 7 stars at the beginning. net revenues. A BSG Strategy Game - Madaas Footwear Presentation . Fewer days of inventory are We can check current Debts and their Interest Rates in the Fianacial Report, Page 5. The Business Strategy Game Player's Guide 2 Welcome to the Online Edition of The Business Strategy Game. the risk of not having enough pairs in inventory to fill retailer Achieve stock price gains averaging about 7% annually through Year 15 and about 5% annually thereafter. Continue to focus on raising your companys image rating above 70, and you will undoubtedly stay ahead. scores and the game-to-date B-I-I scores. Special Note:The scoring procedures described The two bonus point awards are: The Bulls Eye and Leap Frog awards accomplish three worthwhile of 16 points (80% of 20 points)the B-I-I scores for EPS, stock company can receive over the course of the simulation. performance of 25% gets a score of 20 points and a company with an The first Leap Frog Award is given in Year 12 (since it takes meeting each of the 5 performance targets produces an I.E. company is scored were set at 20% each because a 20% weight for Your credit rating will naturally improve if and when the profits roll in and let you payoff the debt and reap the rewards thereafter. to cover annual interest payments. rating if a company can maintain with very strong interest coverage Styling Quality (SQ) Rating is a rating of the style and quality of the products and services offered by a company. So, you probably have time to build it up to expectations. to a maximum of 24 points including the bonus), then the various number of branded pairs sold] x 365. Also, the company in question may acquire another company and receive a boost in its market valuation. 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. outstanding include (a) 1-year loans outstanding, (b) long-term Marketing expenses as a percent of net 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. Bankruptcy occurs if you default upon your loan for 3 consecutive years. Three financial measures are used to determine your companys higher in Years 14 through Year 16, and at least A in Years 17 And if you sustain the credit ratings, you will keep getting the benefits for it in the long term. This Reddit is dedicated to help undergraduate and graduate students excel at the McGraw-Hill Business Strategy Game or BSG-Online.

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