THE BUSINESS STRATEGY GAME

Overview and Orientation

 What Is
Business Strategy Game ?

BSG
 Quick start of
Business Strategy Game ?

Over the last 12 months, The Business Strategy Game has been used
by 53,600 students in 3,389 classes/sections at 632
college/university campus locations in 52 different countries.
Current BSG adopters are listed below by
school/campus/institution/company and country (state).

50.000 x 43 USD = 2.150.000 USD game

https://www.bsg-online.com
 What Is
The Business Strategy Game ?
BSG is an online exercise where you manage an athletic footwear company
in competition against companies run by other class members.
The marketplace is worldwide production and sales activities can be
pursued in 4 regional markets:

And in each region there are 3 market segments:

Internet Segment (online footwear sales direct to retail customers)
Wholesale Segment (footwear sales to local retailers)
Private-Label Segment (unbranded sales to large retailers)
 What Is
Business Strategy Game ?
BSG is an online exercise where you manage an
athletic footwear company in competition against
companies run by other class members.

BIG
 What Is
Business Strategy Game ?

25 million USD company

Leaders
6Cs
 What Is
Business Strategy Game ?

10 companies compete each other

One
Winner
 What Is
Business Strategy Game ?

10 years from 11 to 20.

Winning
Team
 What Is
Business Strategy Game ?

Team work vs. individual

You need a

Team
 What Is
The Business Strategy Game ?

International market.
The marketplace is worldwide production and sales
activities can be pursued in 4 regional markets:
And in each region there are 3 market segments:
Internet Segment (online footwear sales direct to retail customers)
Wholesale Segment (footwear sales to local retailers)
Private-Label Segment (unbranded sales to large retailers)
 What Is
The Business Strategy Game ?

4 regions

3 market segments
 Company Situation
All companies start out in the same position with equal sales volume,
market share, revenues, profits, costs, and so on.
Each decision-making round represents one year of company operation.
There are 10 years of history and you will assume management of the
company beginning with Year 11.
In Year 10 the company had:
Sales Revenues of $238 million Return On Equity of about 17%
Net Profit of $25 million a Stock Price of $30.00
Earnings Per Share of $2.50 a Credit Rating of B+
The company is in sound financial condition and is performing adequately.
 Company Situation

Year 10: the company results

Sales Revenues of $238 million
Return On Equity of about 17%
Net Profit of $25 million
a Stock Price of $30.00
Earnings Per Share of $2.50
a Credit Rating of B+
 Company Situation
Lesson from Three Kingdom

Lesson: DO NOT LOSE THE COMPANY AFTER A NIGHT!

 The Decisions
You Will Be Making
Each decision round (year) you and your co-managers will make
decisions relating to:
1. Corporate social responsibility and citizenship
2. Plant capacity additions/sales/upgrades
3. Production of branded and private-label footwear
4. Worker compensation and training
5. Shipping and warehouse operations
6. Pricing and marketing
7. Celebrity endorsement contracts
8. Financing of company operations
Plus, you will be responsible for annual sales forecasting and inventory
management.
 Competition
The competition among companies to sell their brand of athletic
footwear is based on 10 factors:
Price
Styling/quality (S/Q) rating
Number of models/styles
Advertising
Size of retail network
Celebrity endorsements
Delivery time
Retailer support
Mail-in rebates
Shipping charges (internet sales only)
 There Are Many
Strategic Options
There is no built-in bias that favors any one particular market or
strategic approach. There is no secret answer or approach
that will guarantee success.
Most any well-conceived, well-executed competitive approach
is capable of succeeding unless:
it is not overpowered by the strategies of competitors, or
it is defeated by the presence of too many copycat strategies that dilute
its effectiveness.
In other words, which strategies deliver the best performance
hinges on the strength and interplay of each companys
strategy and decisions against the strategies and decisions
employed by rival companies.
The Contest in the Marketplace Is a Battle
of Strategies
Following each decision round, you will be provided
with a Competitive Intelligence Report containing
information of the actions rivals took to capture sales
and market share.
With this information, you will be in good position to
anticipate some of the strategic moves that rival
companies are likely to make in upcoming years.
Just like in football or other competitive sports, you
will need to scout the strategies of rivals, try to judge
what they will do next, and come up with a
competitive strategy of your own aimed at defeating
them and boosting your companys performance.
 Its All About Developing
Winning Strategies
The Business Strategy Game is all about practicing and experiencing what it
takes to develop winning strategies in a globally competitive marketplace.
At the end of the simulation, what will separate the better-performing
companies from those with weaker

performances is the caliber of the decisions

and strate-gies that company managers have
employed.

BSG is an exercise designed to spur

competition and to get your competitive
juices flowing.
 How Your Company
Performance is Judged
Board members and shareholders/investors have set five performance
objectives for the company:
1. Grow EPS (earnings per share) by at least 7% annually through Year 15 and at least 5%
annually thereafter.
2. Maintain ROE (return on equity investment) of 15% or more annually.
3. Grow Stock Price at about 7% annually through Year 15 and about 5% annually
thereafter.
4. Maintain Credit Rating of B+ or higher.
5. Maintain Image Rating of 70 or higher
(a companys image rating is tied to the styling/quality of a companys branded footwear, market share penetration,
and its actions to display corporate citizenship and social responsibility).
 Scoring Weights
The weights that will be placed on your companys
achievement of each of the five annual performance
targets are as follows:
EPS 20%
ROE 20%
Stock Price 20%
Credit Rating 20%
Image Rating 20%
 Your Company Performance Is Measured
Against Two Standards
The Investors Expectations Standard (I.E.) Did you meet or
beat the annual performance targets for each of the 5
performance measures ?
The Best-In-Industry Standard (B-I-I) How well does your
companys performance stack up against the company with the
best EPS, ROE, Stock Price, and Image Rating and against an
industry-best A+ Credit Rating ?
These scoring standards are explained in the Players Guide and even more fully
on the Help pages associated with the Footwear Industry Report.
What You Can Expect To Learn
Managing a company in competition with rivals will allow you to experience the things you
are reading in your text about crafting and executing strategy in a globally competi-tive
marketplace:
chart a long-term strategic direction
set and achieve strategic and financial objectives
craft a strategy and adapt it to changing conditions
analyze industry, operating, and financial data
think strategically about competitive and market position
assimilate information and lessons of prior courses (read and think and apply)
better understanding of revenue-cost-profit relationships
practice in making sound, responsible business decisions
accountability for delivering good company performance
and much more
 Tips and Advice
Watch the Videos The Player Materials drop-down contains a link to the Intro to
BSG video and a link to a page of a dozen or so Video Tutorials.
Use the Help Pages Every decision entry screen and report page has a Help button.
When you need more information than is contained in a Video Tutorial, click on the
Help button.
Follow the Recommended Decision-Making Procedures click the BSG Support
button at the top of the Corporate Lobby.
Take Advantage of the Practice Round(s) the purpose of the practice round(s) is to
help you become fully acquainted with the decision entry screens and the reports
that come available at the end of each round. The more you learn from the practice
rounds, the better your chances for getting off to a good start !
 Tips and Advice
(concluded)
Manage the Company in a Serious, Professional Manner The overriding
purpose of The Business Strategy Game is to give you practice in making
business decisions, crafting winning strategies in a competitive market, and
being fully accountable for the results of your actions (just as managers in
the real-world are held accountable for the performance of the companies
they manage).
Be very wary of trying things that are imprudent, highly risky, or un-
businesslike (things that would get a manager fired in a real company) You
are not playing a game, you are running a business. This is NOT the time to
be a daring adventurer out to win some variant of a videogame by making
wild and extreme decisions. Those who approach the simulation as a game
usually end up shooting themselves in the foot.
 Your Group will include
6 Top Leaders in Business
CEO
CFO
CHRO
CPO (COO)
CMO
CIO (ECOM, MIS)
 Your Group will
Run 250 Million Company
Competing with about 3-11 other teams
10 Years (in 10 days from year 11 year 20)
Group competition
Learn from Success and Failure
Only 1 Group Champion
Other may compete again
Shoes Business
Shoes Business
Shoes Business
Shoes Business
Shoes Business
Shoes Business
Shoes Business
Shoes Business
Shoes Business
Shoes Business
 Shoes Business

https://www.youtube.com/watch?v=CWHTMSxBlXU
 Shoes Business

https://www.youtube.com/watch?v=4J_kxwT9zX4&t=48s
 Shoes Business

https://www.youtube.com/watch?v=MjT8fyT9Au8
 Shoes Business

https://www.youtube.com/watch?v=12yuilA4WHU
 Shoes Business

https://www.youtube.com/watch?v=hw1tE-JIMW4
 Einat's Shoes The art of shoe making

https://www.youtube.com/watch?v=fJstQ0YnOF4
 Shoes Business

https://www.youtube.com/watch?v=ZEm-DeYM4VU
 Shoes Business

https://www.youtube.com/watch?v=NySgX0EgRSs
 Shoes Business

https://www.youtube.com/watch?v=a0EsQKhbq7Q
 Shoes Business

https://www.youtube.com/watch?v=jyXvr42jW0Y
 Shoes Business

https://www.youtube.com/watch?v=Q6wGSFcE_lc
 Shoes Business

https://www.youtube.com/watch?v=9Y13B2lccT0
 Shoes Business

https://www.youtube.com/watch?v=n3rPDLzted4
 Shoes Business

https://www.youtube.com/watch?v=p_GrpAtSKzc
 Shoes Business

https://www.youtube.com/watch?v=bpYB9_5SZ74
Shoes Business
Industry Champion (2014) - many
Grand Champion (2014) 5%
 To begin
Login: www.bsg-online.com
Using username/ password provided by your Instructor
1. Read User guide
2. View Video Guides www.youtube.com/ecomftu2012
3. Test 2 rounds (year 11, year 12 then Data will be reset)
4. Read books to find best strategies to apply
5. You can read Vietnamese, Chinese and Western books
6. Get at least one Lesson after each game, why win, why loose
 Lesson 1
Will the BIGGEST FACTORY win the game?

Yes
No
Depends
 Lesson 2
Will the TOP QUALITY dominate the market?

Yes
No
Depends
Often
 Lesson 3
Will the LOWEST PRICE get the biggest market?

Yes
No
Depends
Often
 Lesson 4
More Advertising More Customers?

Yes
To some extend
 Lesson 5
What is more important?
Revenue or Profit?
Profit
Better to have both
 Lesson 6
What to do when Market demands
reduce? Or Increase?
Try to maintain capacity
Produce High qualit
Sell factories
 Lesson 7
How much to spend on Celebrities?
1.000.000
Increase every year
Depends on other team Price
 Lesson 8
Online sales what is the best price?
Depends
Net Profit
Market shares
Quality and Number of models
 Lesson 9
Stock price How to increase?
Increase Net Profit
Reduce the number of Share, buy back
Pay dividends
 Lesson 10
ROE Return on Equity How to increase?
Increase Net Profit
Keep E and increase R
Do not expand too fast
 Lesson 11
Celebrity How much to pay for one for a
year?
500.000
1.000.000
3.000.000
10.000.000
Note that your company profit (year 10) 25mio
 Lesson 12
When you factory capacity higher than
demands. What you should do?
Utilize Private Label market
Reduce Price
Increase Advertising
Sell more Online
 Lesson 13
How to - Deliver from AP, NA to 4 market:
- NA
- EA
- AP
- LA
 Lesson 14
How to - Upgrade and expand factory or build the
new factory? Where to build the new factory?
- NA
- EA
- AP
- LA
 Lesson 15
How to - Borrow money to expand business?
Build new factory? Upgrade factory?
- What option
- Build new factory?
- Upgrade current factory?
 Lesson 16
How to Increase Worker skills and working
motivation?
- Payment
- Bonus
- Training
- more
 Lesson 16
How to Increase S/Q in short and long term?
- Payment
- Bonus
- Training
- more
 Lesson 17
How to indentify Marketing expenses in
previous years?
- Report Page ???
 Lesson 18
How to indentify Net Profit and Ending Equity
in previous years?
- Report Page ???
 Lesson 19
How to indentify Cost of Branded Pair of
Shoes Sold and Warehouse expenses in
previous years?
- Report Page ???
 Lesson 20
How to indentify Total Assets, Total Liabilities,
Total Shareholder Equity, and ROE in previous
years?
- Report Page ???
 Basic Lesson 1
Connect directly to the material in your textbook
and give you practice in applying basic
strategy concepts, using the standard tools of
strategic analysis, and crafting strategies.
GLO-BUS provides opportunity after opportunity to
put much of what youve been reading
into play and gain some proficiency in utilizing the
concepts and tools of strategic analysis.
 Basic Lesson 1
You will have to assess the latest industry developments, check out
competitive conditions in the different market segments, chart a long-term
direction for your company, set and achieve strategic and financial objectives,
craft strategies that produce good results and perhaps lead to competitive
advantage, and adjust strategic plans in response to changing conditions. You
will be provided with competitive intelligence on what rivals are doing and
anticipate what moves they are likely to make next. You will have to match
strategic wits with the managers of rival companies. You will be responsible
for doing the strategic thinking needed to successfully lead your company in a
globally competitive marketplace. Learning to do all these things and gaining
an appreciation of why they matter are the heart and soul of courses in
business strategy.
 Basic Lesson 1
Draw together the information and lessons of prior courses, consolidate your
knowledge about the different aspects of running a company, and provide a capstone
for your business school education. GLO-BUS incorporates a wealth of material covered
in earlier business courses. Wrestling with accounting and financial data, production
operations, workforce compensation, marketing, and financial management issues will
give you a stronger understanding of how all the different functional pieces of a
business fit together and teach you the importance of looking at decisions from a
total-company perspective and unifying functional area decisions to create a cohesive
strategy. You will see why and how decisions made in one area spill over to affect
outcomes in other areas of the company. GLO-BUS is very much a capstone learning
experience that ties together material from other core courses and gives you a better
grasp of what running a business is all about.
 Basic Lesson 1
Deepen your understanding of revenue-cost-profit relationships and build your confidence in utilizing the
information contained in company financial statements and operating reports. The numbers-oriented nature of
GLO-BUS, where you repeatedly make decisions and immediately see on-screen calculations of their impacts on
revenues, cost, profits, cash flow, and other important factors, and where you are confronted with all kinds of
statistical information about your company and your industry, has the beneficial result of helping you gain
command of all the numbers that surround the tasks of managing a companys operations. The power of
having the computer instantaneously calculate the consequences of each decision will make you appreciate the
importance of basing decisions on solid numbers instead of the quicksand of "I think", "I believe", and "Maybe
it will work out okay." Moreover, because you will have frequent occasion to review all kinds of operating data,
identify costs that are out-of-line and take corrective action, try to boost the profitability of the companys
business in under-performing geographic regions, and pursue proactive approaches to take to improve your
companys performance, you will see why you cannot hope to make prudent decisions without full command of
the numbersyou wont have to participate in the GLO-BUS exercise very long to appreciate why shooting
from the hip is a sure ticket for disaster.
 Basic Lesson 1
Provide valuable decision-making practice and help you develop better business
judgment. In the course of making the strategic and operating decisions that arise in
GLO-BUS, you will get all kinds of practice in deciding what to do. You will experience
the thrill of good decisions (good in the sense they contributed to above-average or
maybe even superior company performance) and the agonizing consequences of
bad decisions (bad in the sense that the companys performance turned out more
poorly than expected). The exercise of repeatedly making decisions on the factors that
make up GLO-BUS will sharpen your sense of business judgment. In the midst of all
this decision-making practice, you will get to test your ideas about how to run a
company, and there will be prompt feedback on the caliber of y
 Basic Lesson 1
The bottom line is that being an engaged
participant in the GLO-BUS exercise will make
you better prepared for a career in business and
management. Further, we predict that GLO-BUS
will make your competitive juices flow and that
you will have a lot of fun.
Thank you
Lets Go

BSG
 10 Notes
Login: www.bsg-online.com
Using username/ password provided by your Instructor
1. Read User guide
2. View Video Guides www.youtube.com/ecomftu2012
3. Test 1 rounds (year 11) for 3 times, 3 days until you know the
Game
4. Team work
5. Get at least one Lesson after each game, why win, why loose
6. Competition Game
7. Check Email daily
8. Any question, email: nvthoan@ftu.edu.vn