business strategy game distribution and warehouse

To this point, you are set to dominate your industry and win the Business Strategy game. So far I have only build a 1000 EA plant and additional 500 NA plant. my advice would be to read my guide and follow the steps. One time, I was able to increase my net profit by lowering TQM / Six Sigma Quality Program to $0.20 and increasing Percentage of Superior Materials to maintain my S/Q Rating. Leave everything else unchanged. Paying off these loans in advance has the advantage that you will pay less interest over the coming years. Your estimate of the industry average for the internet retail price does not change with your adjusted competitive that you set to +2% before. I usually go ahead and plug in whole dollar amounts for the wholesale price and see how net profit changes. Also, we can upgrade NA in C and one other option. Team members run the simulation company efficiently while competing successfully. 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. Check the Competitive Intelligent Report. Then, just like you did before, plug in different values for your internet price and see, which price yields the highest net profit. If it is lower than 40%, your wholesale price will be in competition with your internet price. Also do you know the cost of building additional capacity. Often provided as part of an integrated enterprise resource planning (ERP) suite of business applications, a WMS can support and help to optimize every aspect of warehouse management. Optimizing your values is the essence of the game, even though it might be very time-consuming. If not, see what positive percentage yields the highest profit for you. By clicking on the Purchase Capacity button, you can see whether someone else did the mistake and sold capacity. Hello, Warehouse and Distribution Plan Strategies I would then adjust the Percentage of Superior Materials to whatever is needed to match my S/Q Rating with the value plugged in on the Sales Forecast page. However, do not rely on those values. We will build new Plants in LA, keep focus on different segments, high and very high quality. Q&A. Ship all the other shoes for the Europe-African warehouses and the Asia-Pacific warehouses from the Asian-Pacific plant. 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. Winning your Business Strategy Game is not easy as it involves wide-ranging decisions on various aspects of the companys operations. Be careful: Sometimes, especially for advertising, numbers that are way off (for example $100 and $8,000) can yield about the same net profit with only a little difference. But do whatever is necessary to maximize your profits. It is not. This can make Net profit quite simple, if we produce 12.000.000 pair of shoes, we will get about 144 million Net Profit. Go up and down each decision a couple of times to get the optimal profits. And profit is what the game is all about. I just have a quick question. Hi Fin, Thanks for the detail post and the screen shots. Any advice? It is usually best to repurchase stock at the beginning, when your stock prices are relatively low. Thats a relief. I am so thankful for your post!!!!!!!!!!!! Unused capacity kills your numbers and profits! Try out each and every value and note down the highest net profit values. 5 Ways Strategic Warehousing Can Increase Profits We will get ROE higher soon, and faster than other competitors. Again, trying out different combinations and optimizing net profits is key for these values. From round 2, there is a risk that other groups can set the same strategy with the winner can be you. Can you tell us more about the strategy you had ? Also, make decisions about the number of models, then the price. After you have done this, play around with the values for Wholesale Price, Advertising Budget, Rebate Offer, and Retailer Support (increase/decrease by 100s only, as everything else makes no sense). You can decide to sell or purchase available capacity, upgrade your plants, build new plants in other regions, or add capacity to already existing plants. The Business Strategy Game is a simulation game that allows players to experience the complexities of running a business. Cost of pair sold, Ware house expenses, Marketing expenses, and Administrative expenses, all the 4 key contribute to Operation Cost. I have encountered two successful strategies so far: medium-quality shoes (S/Q rating of 5-6 stars) paired with high number of models (250-350 models) and high-quality shoes (S/Q rating of 8-10 stars) paired with low number of models (50 models). While your regional sales volume for the internet segment is a good estimate, the estimates for the wholesale segments are not. Moreover, you can benefit from Business strategy game help where professional BSG players have many years of experience. When we do so, look at estimations to keep control of ROE and EPS. Then, you want to plug in your L.A. total sales volume estimate into theproductionslot for North America as well and add up your reject rates. Business Strategy Game (BSG) Helpful Tips!!! - YouTube Key pharmaceutical distribution warehouse questions to ask a 3PL. It might be tedious work and consumes a lot of time, but it will definitely worth it and will let you win the BSG. After a couple of decision rounds, you will get a feeling for it and it will become easier, no worries. I personally find it easier to pursue and had more success with it in the past. However, you should keep on thing in mind: Your internet price should ideally be 40% higher than your wholesale price. Now you begin to understand why I earlier said, that if you use overtime for branded production, you should expand your plant capacity for the next year. You can still ship pairs from LA to somewhere else if needed. The two most important values you want to have as precisely estimated as possible are the industrys average wholesale price and S/Q rating. The Business Strategy Game is a hands on learning exercise that will give The Students valuable decision-making practice and develop powers of business judgment. We will differentiate prices to allow our shoes to be reasonable priced to the average personal. Sounds good, congrats! I started with 250 models and S/Q rating of 5. Here, you will plug in your previously calculated regional total sales volume for each region. Thanks a lot! Also, G-Brand need to keep high market shares, year 17 market shares are reduced, but G-Brand has get back to Top in Year 18. Logistics strategy as an enabler of new business models. thank you:). While those two values do not change your S/Q rating, they will change your net profits. You do not want that to happen, especially because your internet sales only account for a small percentage of your entire sales. Right now I am doing the second year decision, Im doing star 8 and 100 models, did 7 stars and 100 models in first round and the result was not very good. With the high-quality shoes + low model strategy, the only thing you care about is your PROFIT. if you have left over inventory, you should either work on your numbers as I described in my post or put the left-over shoes into private-label. Our ROE fluctuated over the years due to expansion of factories, we now have paid all the old loans and have quite good cash in hand, we do not have to increase equity in next five years, at least we do not have to borrow for expansions. Advantage of this is, that you dont have to pay too much attention to your competitors. Like in the real world, the BSG companies compete in the international market arena, selling branded and private-label athletic footwear in different geographic regions such as Europe-Africa, North America, Asia-Pacific, and Latin America. We will upgrade new factory in LA to produce top high quality shoes with C options an B for large quantity. And he also purchase 4000 capacity in the first year but no advertising expenses. Over the next five years, G-Brand will pursue strategies that will help it improve its financial bottom line, especially ROE because the company has quite high Equity. You almost can never have enough capacity because what you dont sell in branded, you can sell in private label and dumb prices there and take away your competitors market share. Entering year 15 I am still doing 8 star but the demand forecast is super low. We will keep Expansion of Internet Sales, keep low-cost-strategy with Highest Values that customers can get Online. Be cautious though: Do not only look at the percentage change in net profits, but also at the total value as the total value might change sometimes but the percentage change remains the same. Strategies, decision screens, reports and tests. However, to be able to do so, you need available capacity. You can lower the costs by increasing training and upgrading facilities. Business Strategy Game is an online business simulation game where class members are grouped into teams and assigned the task of running an athletic footwear company in head-to-head competition against businesses managed by groups formed by other class members. The BSG generates the complete outcome of each years operations roughly 20 minutes after each decision made around the deadline. After you have done this, you might notice that your Your Estimate of the Ind. Thank you so much! As already mentioned earlier, not every decision has to make sense. However, the private-label market is set up the way that only a limited demand is given each year. Plant Capacity - BeatBSG Your team members will realize that the final decision usually involves compromising between what is needed for the overall company and personal preferences. My group and I are also playing the new version of the game and were little bit lost. So I have plant in NA, EA and AP, but right now I am only using 70% of the capacity because the demand is quite small for me. Write down each regions reject rates and add them up to the regions estimates sales volume. We need to keep continue going up to expand and to create new markets. This is why building additional capacity is so important. View Distribution & Warehouse.pdf from MGMT 5355 at Texas A&M University, Corpus Christi. However, it will also decrease your ending cash. Even so, how can you apply the business strategy knowledge and skills in the game? Its a lot of trial and error until you find the best possible value and it takes a lot of time at the beginning. All you have to do now, is writing down your forecasted Regional Sales Volume for both the Internet Segments and Wholesale Segments in all four regions. 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. Should I continue expanding NA or AP and by how much? Should you have excess capacity, consider this market and manufacture at full capacity. However, some values, such as the Wholesale Price have decreased instead of increased. Does it hurt any other factors? And I would not build another plant, rather increase capacity in the plants that you already built. Do not worry about the Plant Capacity / Upgrades page. Do not worry about me skipping the Internet Marketing, Wholesale Marketing, and Celebrity Endorsements pages. My question is what if I decreased the pay dividends to $0.15 from $1.00? The Business Strategy Game (BSG) comes in handy as a realistic representation of the actual practices in a virtual setup. we are having a horrible time of having left over inventory .. we are in year 13 and our numbers are ok we were 1st place last on year 11 and second place on year 12 but i having a feeling we have been focusing so much on our current numbers we arent going to end well any advise on what we should do on inventory and other sections of the game. So, should I decrease pay dividends here to $0.15? However, traditional warehouse management systems are not designed with the flexibility or technology capacities to address ongoing challenges in the . Higher Net Profit is a key to win the BSG Online Game. so idk what i may have done LOL, Hello, may I ask my is not that great at the moment and we are onto year 13 which is like 2nd year maybe of the game and i try my best to like follow your tips though not as fully cause I still dont understand much especially the calculation one a bit confusing cause I am bad at that, so far I have 7 s/q rating though I am unsure should I do lower models or not cause I am afraid it might not be enough for profit and all because most I see at average of rating and high models , I was wondering what can I do to make it better? We also ship from AP to EA, AP and some to LA. However, if you need a few points for the image, consider using the Corporate Citizenship but take note of the expenses. You are now done with your private-label decisions and all significant decisions that affect your net profits. G-Brand will continue to make all efforts to use good materials which environment friendly. . 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. It almost worked TOO WELL. So the question is: would you recommend for my team to still increase capacity despite this fact? Company operations parallel those of actual athletic footwear companies. Also, consider workforce diversity and ethics training. In this blog post, I will run you through everything important that you have to know about the BSG and how to win it. These include; Lowering the costs come with lots of benefits. What should I do in this case? You will get the hang of it after the first few decision rounds as it is always the same procedure. For further explanation, please read my blog post. This can get confusing at the beginning so here is a table to show you the process. You said that the internet price should be 40% above wholesale. We need to keep track of cost in more details in next years. 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? Okay! One option that you definitely want to purchase is Option C. Option C increases your S/Q rating by 1 star. The same accounts for your Change in Annual Base Wages and Incentive Pay values. Let us move on to the tricky part of this decision page. ROE indicates how much profit is generated with the investments that shareholders made. Sure, you can ask anytime How can the company jump over other competitors? The Business Strategy Game provides your team with the opportunity to discuss the real business issues while working together to assess the options and make decisions linked to the overall company strategy. This support strategy of expansion and getting high Sales, Higher Net Profit and higher market shares. Business Strategy Game In the upper left box, you have available sources of additional cash. In the above example, we ship from NA factories to NA and LA. I dont know why the game suddenly changed your numbers but I recommend using every last bit of your capacity. Keep control of Private Label market with upgraded factories that can produce most of quality at lower cost than any competitors. This way, you end up buying the share at a lower price. For the next five years from Year 18, we will continue: To provide highest quality branded athletic shoes to the global market at a competitive price. After you have found the right price, click the Save Decisions button. For this reason, you and your team members need to start the BSG by spending more time analyzing the results of each year to figure out the best effective strategies to lay for the next round of the game. With more inventory, however, you can put more shoes into private label which is a really important aspect of the game. Please delete one if there is an extra comment. Therefore, ensure your profit increases after every round to make the game better and for real business. Students use the BSG to cultivate managerial skills for decision-making purposes. Go ahead and try out which combination yields the highest profits. However, you can successfully apply most of the following tips to either strategy. The information is these guides is laid out, and displayed, in such a way that crucial decisions should be a breeze. G-Brand has been performing for many years Higher than Investors Expectation. With that, you can do the same over and over again, for every decision round. If not, I dont see the need to purchase equipment in order to make more shoes until the demand begins to encroach upon my shoe making capacity. As already mentioned, it is important that you ship all your shoes for the North American warehouses and the Latin American warehouses from the North American plant. Furthermore, G-Brand will continue focus on what we are top leading like S/Q, models, strong advertising, retailer support, celebrities. is it because I need to add capacity? If you tweak those numbers, your demand will adjust accordingly. The Business Strategy Game or BSG is a simulation game used by, different colleges for their Business capstone. The value that yields the highest profit value is the one you want to go with for this decision round. Key Term business strategy game year 11 decisions; This preview shows page 1 - 2 out of 2 pages. On this decision page, you can bid on celebrities. When doing so, you have to plug in numbers for the assumptions section in the new window. Keep focus, year 17, we over sleep in Victory, and ignore competitors. Business Strategy Game - Week 5 (Year 14) Commissar BRO 9.95K subscribers 10K views 6 years ago And so we creep into Year 14. What should I do for year 12 and 13? Also, I suggest not decreasing your dividends. Warehouse management plays a strategic role in the supply chain by enabling inventory distribution, sorting, or cross-docking processes that strive to meet the growing demand of the market. Now, decide to which region you want to ship your private-label shoes.

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