set - bsg overview

7/25/2019 SET - BSG Overview

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McGraw-Hill/Irwin 2009 The McGraw-Hill Companies, All Rights Resere!

The Business Strategy GameThe Business Strategy GameOverview and OrientationOverview and Orientation


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What Is The "#siness$trateg% Game All About?

Its an online, PC-base e!er"ise #here you runan athleti" $oot#ear "om%any in hea-to-hea"om%etition against "om%anies run by other"lass members&

The mar'et%la"e is #orl#ie(%rou"tion ansales a"ti)ities "an be %ursue in *orthAmeri"a, +atin Ameri"a, uro%e-A$ri"a, an AsiaPa"i$i"

There are 12 mar'et segments( geogra%hi"

segments ea"h $or brane $oot#ear sales toretailers, $or online $oot#ear sales ire"t to"onsumers, an $or %ri)ate-label sales


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/our Com%anys Situation

All "om%anies start out on the same $ooting(#ithe0ual sales )olume, global mar'et share, re)enues,%ro$its, "osts, $oot#ear 0uality, an so on&

a"h e"ision %erio in The "#siness $trateg%Gamere%resents a year&

The "om%any you #ill be running began o%erations1 years ago, an the $irst set o$ e"isions you anyour "o-managers #ill ma'e is $or /ear 11&

The "om%any ha /ear 1 re)enues o$ 2.3 million,

net %ro$its o$ 24 million 5e0ual to 2&4 %er share6,an 78 o$ 91:;, an a soli B< "reit rating.

/our "om%any is in soun $inan"ial "onition, is%er$orming #ell, an its %rou"ts are #ell-regareby the buyers o$ athleti" $oot#ear&


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The =e"isions /ou Will Be >a'ing

/ou an your "o-managers #ill ma'e e"isions ea"h%erio relating to

Cor%orate so"ial res%onsibility an "itienshi% 5u% to @e"isions6

Prou"tion o$ brane an %ri)ate-label athleti"$oot#ear 5u% to 1 e"isions ea"h %lant, #ith ama!imum o$ %lants6

Plant "a%a"ity aitionssalesu%graes 5u% to @e"isions %er %lant6

Wor'er "om%ensation an training 5. e"isions %er%lant6

Shi%%ing 5u% to 3 e"isions ea"h %lant6 Pri"ing an mar'eting 5u% to 1 e"isions in

geogra%hi" regions6 Bis to sign "elebrities to enorse your "om%anys

$oot#ear 52 e"ision entries %er bi6 inan"ing o$ "om%any o%erations 5u% to 3 e"isions6 Plus there is a s"reen $or ma'ing annual sales $ore"asts

an e"iing #hether to ha)e in)entory "learan"e sales


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Com%etition Is ea-to-eaDCom%any Against Com%any

The hea-to-hea "om%etition among "om%aniesto %ersuae "onsumers to buy their bran o$athleti" $oot#ear is base on 1 $a"torsDPri"e*umber o$ moelsstylesStyling0uality 5SE6 ratingA)ertisingSie o$ retailer net#or'Celebrity enorsements=eli)ery time7etailer su%%ort>ail-in rebatesShi%%ing "harges 5Internet sales only6


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/ou a)e >any Strategi" 8%tions

Com%any managers ha)e #ie strategi" latitue insta'ing out a mar'et %osition an stri)ing $or goo%er$orman"e& There&s no '#ilt-in 'ias that (aors an%one strateg%)Com%anies "an %ursue a "om%etiti)e a)antage

'eye to lo#-"ostlo#-%ri"e or to%-not"h $oot#ear$eatures an styling or more )alue $or the money&

Com%anies "an ha)e a strategy aime at being the"lear mar'et leaer in 5a6 selling brane $oot#ear toretailers or 5b6 selling ire"tly to online buyers or 5"6both&

Com%anies "an %ut as little or as mu"h em%hasis on

%rou"ing %ri)ate-label $oot#ear as management%re$ers&Com%anies "an $o"us on one or t#o geogra%hi"

regions or stri)e $or geogra%hi" balan"e&Com%anies "an %ursue essentially the same strategy

#orl#ie or "ra$t slightly or )ery i$$erent

strategies $or ea"h geogra%hi" region&


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*o 8ne Strategy Is FBest

>ost any #ell-"on"ei)e, #ell-e!e"ute"om%etiti)e a%%roa"h is "a%able o$su""eeing,proi!e! it is not oerpowere!'% the strategies o( competitors or !e(eate!'% the presence o( too man% cop%cat

strategies that !il#te its e((ectieness& In other #ors, which strategies !elier the

'est per(ormance hinges on the strengthan! interpla% o( each compan%&s strateg%

an! !ecisions against the strategies an!!ecisions emplo%e! '% rial companies*there %ositi)ely is no mystery Fsil)er bulletstrategy or e"ision "ombination that

%layers are "hallenge to is"o)er&


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A Com%anys Com%etiti)e $$ort)is-H-)is 7i)als Is Cru"ial

All the sales an mar'et share i$$eren"esamong "om%anies are attributable to i$$ering"om%etiti)e e$$orts on %ri"e, SE rating,a)ertising, moels o$$ere, eli)ery times,retailer su%%ort, an so $orth&

en"e, e)ery "om%anys strategi" "hallenge isto "ra$t a "om%etiti)e strategy 5"onsisting o$ its%ri"es, SE ratings, a)ertising, moels,eli)ery times, retailer su%%ort, an so on6 that

it belie)es #ill %rou"e the esire sales anmar'et share out"omeswhen pitte! against thecompetitie strategies o( rial companies,

region '% region&


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The Contest in the >ar'et%la"e Is aFBattle o$ Strategies

ollo#ing ea"h years e"isions, youll be%ro)ie #ith Com%etiti)e Intelligen"e re%orts"ontaining in$ormation o$ the a"tions ri)als too'to "a%ture the sales an mar'et shares they got&

Arme #ith this in$ormation, you #ill be in %rettygoo %osition to $igure out some o$ the strategi"mo)es that ri)al "om%anies are li'ely to ma'e inthe u%"oming e"ision %erio&

Just as in s%orts #here it is "ustomary $or e)eryteam to s"out its ne!t o%%onent thoroughly ane)elo% a game %lan to e$eat them, you #illnee to s"out the strategies o$ ri)als, try to Kuge#hat they #ill o ne!t, an "ome u% #ith a"om%etiti)e strategy o$ your o#n aime atFe$eating their strategies an boosting your"om%anys %er$orman"e&


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8ut"om%eting 7i)als Is the Leyto >ar'et Su""ess

/oull ha)e to stay on to% o$ "hanging mar'et an"om%etiti)e "onitions, try to a)oi beingoutmaneu)ere an %ut into a "om%etiti)e binby the a"tions an maneu)ers o$ ri)al "om%anies,an ma'e sure your $oot#ear is attra"ti)ely

%ri"e an "om%etiti)ely mar'ete& Just as you are trying to #in business a#ay $rom

ri)al "om%anies, some or all ri)als are "ertain tobe a"ti)ely stri)ing to ta'e sales a#ay $rom your

"om%any& It is the "om%etiti)e %o#er o$ your strategy )is-H-

)is the "om%etiti)e %o#er o$ ri)als strategiesthat is the e"iing $a"tor in etermining sales

an mar'et shares&


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Its All About =e)elo%ingWinning Strategies

The "#siness $trateg% Gameis all aboutpracticing an! e+periencing what it taes to!eelop winning strategies in a glo'all%

competitie maretplace)

When the e!er"ise is o)er, the only thingsse%arating the best-%er$orming "om%any$rom those #ith #ea'er %er$orman"es #ill bethe "aliber o$ the e"isions an strategies o$

the management teams o$ the res%e"ti)e"om%anies&

Its an e!er"ise "al"ulate to s%ur"om%etition an to get your "om%etiti)e

Kui"es $lo#ing&


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Some eatures o$ the >ar'et anCom%any n)ironment

The inustry setting in The "#siness $trateg%Gameis moele to "losely a%%ro!imate thereal-worl!"hara"ter o$ the globally "om%etiti)eathleti" $oot#ear inustry&The $un"tioning o$ the mar'et%la"e in The "#siness

$trateg% Game mirrors the "om%etiti)e $un"tioning o$

the real-#orl athleti" $oot#ear mar'et, thus allo#ingyou an your "o-managers to %ro"ee rationally anlogi"ally in e"iing #hat to o&

Compan% operations are !esigne! to 'e asrealistic as possi'le

8%erations are %atterne a$ter those o$ an athleti"$oot#ear "om%any that ma'es its $oot#ear at"om%any-o%erate %lants&

All "ause-e$$e"t relationshi%s an re)enue-"ost-%ro$itrelationshi%s are base on soun business an

e"onomi" %rin"i%les&


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Some eatures o$ the >ar'et anCom%any n)ironment 5"ont&6

The #hole "on"e%t unerlying The "#siness$trateg% Gameis to %ut you an your "o-managers in as realisti" a "om%any an"om%etiti)e mar'et setting as %ossible an ha)eyou manage all as%e"ts o$ the "om%anys

o%erations

This allo#s you to test your ieas about ho#to run a "om%any in a "om%etiti)emar'et%la"e

An you #ill be %ro)ie %rom%t anetaile $eeba"' on the out"omes o$ youre"isions&


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PC 7e0uirements an >e"hani"s

Mirtually all "$Ga"ti)ities ta'e %la"e online, on a PCthat must be installe #ith 516 any Web bro#ser 5su"has Internet !%lorer, Sa$ari, or ire$o!6 an 526 thelash %lug-in, Mersion 1& or later&

/ou "an either use the same PC $or all "$Gsessionsor you "an use i$$erent PCsN all that is re0uire is anInternet "onne"tion an any Web bro#ser #ith thelash %lug-in, Mersion 1& or later&

"$G-nlineautomati"ally trans$ers the neeeso$t#are $rom the "$Gser)er to the PC you are#or'ing on )ery 0ui"'ly 5#ithin a "ou%le o$ minutese)en on a slo# "onne"tion6N #hen you e!it a session,your #or' is sa)e an trans$erre ba"' to the ser)er&

The last !ecisions sae! to the "$G serer at the time o(

the !ecision !ea!line are the ones #se! to generate

the res#lts)


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o# Com%any Per$orman"e Is Juge

Board members and shareholders/investors haveset five performance objectives for the company:.) Grow earnings per share at least ann#all%

thro#gh 1ear . an! at least ann#all%therea(ter)

2) Maintain a ret#rn on e3#it% inestment 4R56 o(. or more ann#all%&7) Maintain a "8 or higher cre!it rating)) Achiee stoc price gains aeraging a'o#t

ann#all% thro#gh 1ear . an! a'o#t ann#all% therea(ter&

) Achiee an :image rating; o( 0 or higher(acompanys image rating is tied to the styling/qualityof a companys branded footwear, maret sharepenetration, and its actions to display corporateciti!enship and social responsibility".


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S"oring Weights

#he weights that will be placed on yourcompanys achievement of each of the fiveannual performance targets are as follows:

PS 2;78 2;Creit 7ating 2;Sto"' Pri"e 2;

Image 7ating 2;


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The T#o S"oring Stanars

T#o s"oring stanars are use in "al"ulatingF%er$orman"e s"ores $or ea"h "om%anyD

The in)estors e!%e"tations stanar 5=iyou meet or beat the annual %er$orman"etargets $or ea"h o$ the 4 %er$orman"e

measures?6 The best-in-inustry stanar 5o# #ell

oes your "om%anys %er$orman"e sta"' u%against the "om%any #ith the best PS,78, sto"' %ri"e, an image rating an

against an inustry-best A< "reit rating?6The s"oring stanars are e!%laine in the


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The T#o Euies

There are 2 Fo%en boo' 2 multi%le-"hoi"e 0uestion0uies built into the e!er"ise& The 0uies are ta'enonline an s"ore immeiately u%on "om%letionD

Eui 1DCo)ers the Players Guie(its %ur%ose isto s%ur you to rea an absorb ho# things #or' in%re%aration $or managing your "om%any& Time +imitO 4 minutes&

Eui 2DCo)ers the Com%any 7e%orts an "ertainin$ormation in the oot#ear Inustry 7e%ort(this0ui ser)es as a "he"' to see i$ you unerstan thenumbers an ho# they are "al"ulate& Time +imit O:4 minutes&

Cli"' on the lin's $or the 0uies on your FCor%orate+obby #eb %age $or more in$ormation(the threesam%le 0uestions $or ea"h 0ui gi)e you an iea o$

#hat to e!%e"t&


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The Peer )aluations

$t the end of the e%ercise, you will be asedto complete a &'question evaluation of

each of your comanagers and a self

evaluation of your own performance.

#hese are completed online and can bereviewed by clicing on the )eer *valuation

+in on your orporate +obby web page.

#he peer evaluations are for your instructoronly and are completely confidential.


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What /ou Can !%e"t to +earn

7unning the athleti" $oot#ear "om%any in hea-on "om%etition #ith

ri)als #ill gi)e you a "han"e to %ut into %lay the )ery 'ins o$ things youare reaing in the te!t about "ra$ting an e!e"uting strategy in a globally"om%etiti)e mar'et%la"e(there is a )ery tight "onne"tion bet#een thete!t $or the "ourse an The "#siness $trateg% Game&

/ou an your "o-managers #ill ha)e to "hart a long-term ire"tion $oryour "om%any, set an a"hie)e strategi" an $inan"ial obKe"ti)es, "ra$t astrategy, an aa%t it to "hanging inustry an "om%etiti)e "onitions&

/oull ha)e to #restle #ith a $ull array o$ inustry statisti"s, "om%anyo%erating re%orts an $inan"ial statements, an an assortment o$ben"hmar'ing ata an "om%etiti)e intelligen"e on #hat ri)als areoing&

/oull ha)e to mat"h strategi" #its #ith the managers o$ ri)al"om%anies, thin' strategi"ally about your "om%anyQs "om%etiti)e

mar'et %osition, an $igure out the 'ins o$ a"tions it #ill ta'e toout"om%ete ri)als&

=earning to !o all these things an! gaining an appreciation

o( wh% the% matter are the heart an! so#l o( co#rses

in '#siness strateg%)


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What /ou Can !%e"t to +earn

In aition, The "#siness $trateg% Gameis esignee!%ressly to %ro)ie you #ith an e!%erien"e that #illD=ra# together the in$ormation an lessons o$ %rior"ourses, "onsoliate your 'no#lege about the i$$erentas%e"ts o$ running a "om%any, an %ro)ie a "a%stonee!%erien"e $or your business s"hool eu"ation&

=ee%en your unerstaning o$ re)enue-"ost-%ro$itrelationshi%s an buil your "on$ien"e in utiliing thein$ormation "ontaine in "om%any $inan"ial statementsan o%erating re%orts& /oull see #hy you "annot ho%e tounerstan a "om%anys business an ma'e %ruente"isions #ithout $ull "omman o$ the numbers(it #ont

ta'e you long to a%%re"iate #hy shooting $rom the hi% is asure ti"'et $or managerial isaster&

Pro)ie you #ith %ra"ti"e in siing u% a "om%anyssituation, ma'ing soun, res%onsible business e"isions,an being a""ountable $or eli)ering goo results&


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o# =o /ou 7egister an Get Starte?

The registration %ro"ess "onsists o$ $i)e ste%sD Ste% 1D a)e your assigne "om%any registration

"oe hany 5this "oe is use to %ut you into the

atabase $or this s%e"i$i" "ourse an to "erti$y you as

a "o-manager o$ your assigne inustry an

"om%any6& /our instru"tor %ro)ies this "oe. Ste% 2DGo to ###&bsg-online&"om

Ste% .DCli"' on the FCreate Stuent A""ount button

an enter the "om%any registration "oe %ro)ie by

your instru"tor in the bo!& Ste% DContinue on to the ne!t ste% o$ the registration

%ro"ess #here you #ill nee either a "reit "ar or a

Pre%ai A""ess Coe that "ame on a "ar bunle

#ith your te!t&


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o# =o /ou 7egister an Get Starte?

Ste% 4DCom%lete the %ersonal registrationin$ormation 5user name, %ass#or, an so on6

nce %o# are registere!, %o# will hae (#ll #seo( the st#!ent portion o( the "$G >e' site

an! access to all o( the materials an!in(ormation %o# will nee!)


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The Cor%orate +obby Page

a"h time you log-on to ###&bsg-online&"om, you are automati"ally

route to your "om%anys FCor%orate +obby #eb %age& The Cor%orate +obby %age is your gatewa% to all "$G actiities)

*ear the to% o$ this %age is a series o$ menu sele"tions that %ro)ieinstant a""ess to all the ne"essary in$ormation, materials, an toolsyou #ill neeD The Players Guie =e"ision S"heule Assignments Su%%ort Com%any *ame

Belo# these menu items are 516 a =e"isions an 7e%orts bo! $ora""essing the e"ision entry s"reens an )ie#ing re%orts, 526 amessage "enter bo!, an 5.6 in$ormation sho#ing the latest

e!"hange rate aKustments, "urrent interest rates, an a "om%any%er$orman"e s"oreboar& /ou ha)e any#here, anytime a""ess to your Cor%orate +obby %age

$rom any PC that is "onne"te to the Internet&


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Creating a *ame $or /our Com%any

Shortly a$ter registering, you an your "o-managers

shoul e"ie on a name $or your athleti" $oot#ear"om%any&

/our "om%anys name must begin #ith the letter o$the al%habet that you ha)e been assigne& *ames"an be u% to 2 "hara"ters& To name the "om%any,"li"' on the Com%any *ame menu item near the to%o$ the Cor%orate +obby s"reen an enter your"om%anys $ull name in the s%a"e %ro)ie&

All "om%any names are F%ubli" an a%%ear in the

oot#ear Inustry 7e%ortN thus you shoul sele"t aname that you are %rou o$ an that re$le"ts theimage you #ant to %roKe"t to your "ustomers,shareholers, other "om%any sta'eholers, an thegeneral %ubli"&


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Some Pro"eures

Che"' the =e"ision S"heule lin' on your

Cor%orate +obby %age $or the ates anealines $or the e"isions& The !ecision!ea!lines are strictl% en(orce!, sin"e the resultsare %ro"esse automati"ally on the BSG ser)ers

minutes a$ter the ealine& The results o$ ea"h e"ision #ill be a)ailable

online about 14-2 minutes a$ter the e"isionealine&

/ou #ill be noti$ie )ia e-mail as soon as theresults are reay& At that %oint you "an log-on,see #hat ha%%ene, an %ro"ee #ith the ne!te"ision&


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Ti%s $or Su""ess

Mae #se o( the short ?i!eo T#torials(these are%arti"ularly hel%$ul early on #hen you are trying tobe"ome $amiliar #ith the so$t#are, the menus, thein$ormation on the s"reens, an ho# to %ro"ee&

>heneer %o# want more in-!epth e+planations an!!etails than containe! in a ?i!eo T#torial, clic on

the Help '#tton at the top o( a !ecision screen orreport page&The el% se"tions $or e"ision s"reens %ro)ie

in$ormation about ea"h e"ision entry, $ulle!%lanations o$ "ause-e$$e"t relationshi%s, an

ti%ssuggestions about #hat to o an not o&The el% se"tions $or any %age o$ the Com%any

7e%orts, the oot#ear Inustry 7e%ort, an theCom%etiti)e Intelligen"e 7e%orts e!%lain #hat thenumbers mean, ho# they are "al"ulate, an ho#to use the in$ormation to goo a)antage&


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Ti%s $or Su""ess

ollo# the $#ggeste! @ecision


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Ti%s $or Su""ess

R#n the compan% in a serio#s, pro(essional manner)

The o)erriing %ur%ose o$ The "#siness $trateg%Gameis to gi)e you %ra"ti"e in ma'ing businesse"isions, learning to "ra$t #inning strategies in a"om%etiti)e mar'et, an being hel $ully a""ountable$or the results o$ your a"tions(Kust as managers in

the real-#orl are hel a""ountable $or the%er$orman"e o$ the "om%anies they run& "e er% war% o( tr%ing something that is impr#!ent or

highl% ris% or #n-'#sinesslie 5things that #oul geta manager $ire in a real "om%any6&

Stuents #ho resort to trying to Fgame thesystem usually shoot themsel)es in the $oot&

This is not the time to be a aring a)enturer outto #in some )ariant o$ a )ieogame by ma'ing#il e"isions or e!treme e"ision entries&

set - bsg overview

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