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5 Top BSG Tips From The Free Business Strategy Game Tips Guide At WinBSGOnline.com

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This http://www.WinBSGOnline.com/ Business Strategy Game slideshare corresponds with the youtube video at: www.youtube.com/watch?v=JOifYFuxpuU If will give you the top five tips & strategies for the McGraw Hill Business Strategy Game Online. Visit WinBSGOnline.com for the next five tips and ensure you will learn how to win the BSG Online. On my website you'll find more tips on how to win the Business Strategy Game Online and learn information about quizes including Quiz 1 & Quiz 2. Website:WinBSGOnline.com Facebook: facebook.com/WinBSGOnline Twitter: twitter.com/WinBSGOnline Google+: plus.google.com/115371498407558134562

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Page 1: : Business Strategy Game 5 Tips & Strategies by

5 Top BSG TipsFrom The Free Business Strategy Game Tips

Guide At WinBSGOnline.com

Page 2: : Business Strategy Game 5 Tips & Strategies by

Always check for price elasticity. The Business Strategy Game uses ranges to compute price & demand instead of a fluid curve.

1.Check for Price Elasticity

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Page 3: : Business Strategy Game 5 Tips & Strategies by

Example: • If you predict the industry average of shoes prices in North

America to be 50 dollars, The Business Strategy Game might compute that you will sell 3M pairs of shoes in NA between the price of $49.00 and $51.00 dollars.

1.Check for Price Elasticity

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Page 4: : Business Strategy Game 5 Tips & Strategies by

So how do I implement this? • Just set your forecasts and then test slightly higher price

points on the wholesale distribution screen to make sure your not missing out on additional profit.

1.Check for Price Elasticity

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Page 5: : Business Strategy Game 5 Tips & Strategies by

A few caveats: 1. The range becomes wider as the SQ & model number

strategies of teams deviate more. 2. This normally happens the most intensely during the

later stages of the game.

1.Check for Price Elasticity

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Page 6: : Business Strategy Game 5 Tips & Strategies by

Buying back stock is one of the only “tips” you can do in the game that will instantly guarantee you a higher score because it increases almost every metric you’re graded on

1. Increases your EPS dramatically2. Increases your ROE dramatically3. You can pay a higher dividend for less cash4. Your stock price shoots up because of your higher

EPS, ROE & dividends.

2.Buy Back Stock Early

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Page 7: : Business Strategy Game 5 Tips & Strategies by

Example: • If your net profit was $25M in Year 10 and you had 10M

shares of stock outstanding, your EPS would be $2.50. (25M/10M = 2.50)

• If you’ve bought back your 2.5M shares, you would have 7.5M million shares outstanding and your EPS would jump to $3.33. (25M/7.5M=3.33)

• Roughly a 40% jump in score.

2.Buy Back Stock Early

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Page 8: : Business Strategy Game 5 Tips & Strategies by

You Want To Do It Early Because1. The game limits how much stock you can buyback a year.

It takes on average five years to buy it all back2. If you’re following the right strategies, your stock price is

going to skyrocket it isn’t cost effective to buy stock in the later years.

3. It gives you the option for a debt-equity swap.

2.Buy Back Stock Early

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Page 9: : Business Strategy Game 5 Tips & Strategies by

Buy celebrities with long term contracts in the early stages of the game• Celebrity purchase price normally follows either a bell

curve or a logarithmic curve. It starts out relatively low and then peaks and falls off or peaks and barely increases during the final years.

3.Buy Celebrities Early

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Page 10: : Business Strategy Game 5 Tips & Strategies by

• Focus on the celebrities with the longest contracts during these first few years. I suggest paying between 2M & 5M dollars. Use your judgment though, celebrity pricing normally depends on class metagame than an actual science.

• You want to long-term lock in contracts at lower rates to be as effective as possible

3.Buy Celebrities Early

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Page 11: : Business Strategy Game 5 Tips & Strategies by

An Exception• The one exception to this rule is when nobody bids on

celebrities in the practice rounds and multiple teams do poorly. Celebrities can sometimes start out highly competitive in this situation.

3.Buy Celebrities Early

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Page 12: : Business Strategy Game 5 Tips & Strategies by

• Always Predict Materials Prices• It is largely responsible for the “I just don’t know what

happened, it said we were going to make an EPS of $3.50, but we ended up with -$1.50” comments

• It is located on the Branded production screen. At the upper left hand side, you’ll see a small box that looks like a graph, half filled with green.

4.Predict Material Prices

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Page 13: : Business Strategy Game 5 Tips & Strategies by

The prices of superior and standard materials are based on supply and demand functions• If more teams use a high SQ strategy, the more superior

materials will cost because of the increased demand for superior materials will drive up superior material prices.

• The opposite is also true, the more teams perusing a high SQ strategy will use less standard materials and thus the costs will be lower.

4.Predict Material Prices

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Page 14: : Business Strategy Game 5 Tips & Strategies by

How to implement it: • Look at teams strategies and gestimate whether or not

they will be increasing their SQ ratings. If they are increasing their SQ ratings higher… assume superior material costs will rise and vice versa.

4.Predict Material Prices

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Page 15: : Business Strategy Game 5 Tips & Strategies by

• If you’re employing a successful strategy, you will be carrying debt. It is important to look for opportunities to refinance your outstanding debt to increase your cash flow.

• It is simple to do. First, check each decision round if your interest rate has fallen or risen because of either an increased credit rating or decreasing interest rates.

5.Re-Finance Loans

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Page 16: : Business Strategy Game 5 Tips & Strategies by

• Then, look on your Balance Sheet & Cash Flow report to see which loans outstanding have the higher interest rates.

• Finally, take out a loan for the same amount while paying off the existing one.

• You can group multiple smaller loans together to take advantage of this as well.

5.Re-Finance Loans

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Page 17: : Business Strategy Game 5 Tips & Strategies by

Thank You

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• I appreciate all of the support and positive feedback you guys have given me over the past few years.

• I’ve uploaded the slides to slide share. Feel free to view them at the link below.

Page 18: : Business Strategy Game 5 Tips & Strategies by

Contact Me

Visit WinBSGOnline.com For Your FREE Tips Guide

• If you have any questions, comments or want clarifications, please feel free to comment or press like below.

• I know the BSG can be hard to understand and that I sometimes leave out concepts because of my familiarity with the game.

• I respond to all comments the same day.

Page 19: : Business Strategy Game 5 Tips & Strategies by

For the next five tips:

Visit WinBSGOnline.com For Your FREE Tips Guide

• For the next five free tips, head on over to my website and request your free copy. You’ll find all of the information you need to pick a winning strategy and execute it there.

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