Tips on How to Win the Business Strategy Game (Bsg)

Updated on January 9, 2020
Angelo Grant profile image

Entrepreneur and avid explorer of entrepreneurial opportunities. Master of Business Administration & Sigma Beta Delta honors society member.

Top The Business Strategy Simulation With The Best-Cost Strategy

If you want top honors focus on the insight provided in this article as it will help you formulate a winning strategy.
If you want top honors focus on the insight provided in this article as it will help you formulate a winning strategy. | Source

Team Work is The Most Essential Factor of The Business Strategy Game

The simulation creates the environment for teams to immerse themselves in the collaborative nature of getting business done. To become successful at the simulation the first order of business is to integrate with team members learn of the different ways that members complement each other. Teams become better assets than individuals when members are able to fit into the grooves of each other like the gears on a well-oiled machine. This will create synergy. The game requires a level of precision which can only be achieved if the team is pushing the same strategy, therefore, it is very important to select a strategy that is compatible with the various points of views of members. Diverse opinions should be encouraged especially if they are grounded in research. Follow the instinct that says there is a better option, always investigate this thought and never be afraid to challenge the soundness of a decision. For example, one team member offered the opinion that giving employees an increase in base wages would lower the total cost of compensation as well as the total cost of production. This notion was met with resistance but after toggling the percentage increase back and forth it became apparent that our team member who didn’t allow herself to be drowned out was well informed.

Some Key Considerations For Teams

1. Whether to customize the firm’s offerings in each country market to match local buyer's taste or offer standardized products worldwide.

2. Whether to employ the same competitive strategy in all countries or to modify the strategy country by country.

3. Deciding where to locate facilities, distribution centers, and service operations to maximize locational advantages

Corporate Social Responsibility

The simulation involves CSR as the very first menu option. Thompson (2018) states that a company’s “license to operate,” comes with an obligation to act as a responsible citizen and do its fair share to promote the general well-being of society and has the burden to operate honorably. A balance must be struck between how much a company can afford to spend on CSR before it becomes a burden on the business to the point of which it affects future growth and prevents the company from being equally committed to CSR in the future.

Most Company's Today Participate in CSR

A successful business is always able to give back!
A successful business is always able to give back! | Source

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.

Recommendations for Improving the Image Rating in The Business Strategy Game

The best-cost strategy benefits the company’s image because increasing the S/Q rating while having a lower price is directly related to achieving a high image rating. If there are 5 groups competing in the market aim for at least 20% market share in each segment because being evenly represented across the geographical regions bodes well for the company’s overall image. If there are other groups pursuing the best-cost strategy try to be the first to get to 10 stars. CSR initiatives will boost the image rating but be cautious about how much you spend in this area.

Recommendations for Improving EPS, ROE, and Stock Price in BSG Simulation

Substantial growth in revenues and net profits will fuel tremendous growth in EPS and Stock Price. Therefore, growth-minded companies should consider expanding especially if plants are operating at over 80% capacity. The stock repurchase is also an almost instant way of increasing the stock price and EPS given the company continues to see reasonable growth. Remarkable growth minimizes the need to payout dividend but when growth begins to taper off consistent dividend payments as well as steadily increasing dividends by $0.05 year over year will help stabilize the company’s stock price. On the other hand, an increase in the stock offering will allow the company to finance expansion at a likely cheaper cost than taking a loan but will dilute the EPS. Perhaps the most reliable way for a company to improve its financial performance over time is to recognize that a balanced scorecard approach to measuring company performance has much to recommend because pursuing and achieving strategic outcomes that boost a company's competitiveness and strength in the marketplace puts it in a better positions to improve its future financial performance.

Masterful Strategies Come From

doing things differently from competitors where it counts--out-innovate them, be more efficient, adapt faster--rather than running with the herd.

Tips for Lowering Cost and Other Recommendations For Winning the Business Simulation Game

Toggle the advertising spending to see the lowest cost at which the company can achieve the desired market share. Turn delivery time to 4 weeks because it has no noticeable effect on sales but significantly affects EPS and Net Profit. Marginally reduce spending on retail support each year because it has a benign effect on sales. Toggle between each set of options on the branded production screen to see which combination of materials, styling, and TQM will be the most cost-effective for production. Do this for each simulated year because the cost of materials varies. Invest early in plant upgrades especially the S/Q rating improvement. An early investment in these areas will allow the company to enjoy the return on investment for several years. The amount of loans the company carries has the greatest effect on the company’s Credit Rating. However, once an A+ Credit Rating is achieved it doesn’t get any better than that, therefore, instead of paying down loans consider stock repurchase or some other investment.

Employing a Blue Ocean Type of Offensive Strategy

Involves abandoning efforts to beat out competitors in the existing markets and, instead, inventing a new industry or distinctive market segment that render existing competitors largely irrelevant and allows a company to create and capture altogether new demand. Focus on making your product distinctive in terms of quality or style and pay less attention to out promoting your competitors.

Winning a bigger market share is not a typical competitive weapon that a company can use to battle rivals and attract buyers.

Pitfalls to Avoid in The Business Simulation Game (BSG)

Do not neglect the information in the market snapshot but pay more attention to the footwear industry report rather than the portion that provides you with strength and weakness analysis, for example, advertising may be identified as a weakness, however, spending less on advertising while yielding better results than your competitors is actually an advantage. Investing in upgrades later in the simulation does not allow enough time to break even on the investment. Avoid spending too much on CSR. Be leery of how much is spent on celebrities because there are no metrics to calculate the usefulness celebrity endorsements. Note well that lowering the internet price can cause the cannibalization of the wholesale segment because the gap between internet price and wholesale price is related to the number of retail outlets that will carry your footwear. The greatest pitfall to avoid is switching strategy because of poor execution.

Using The Footwear Industry Report To Put Things Into Perspective

Learning Which Rivals Have Winning Strategies And Which Ones Have Weak Strategies is:

The managerial payoff from spending the time and effort to gather and digest competitive intelligence about rivals' strategies and situations and gain some inkling of what moves they will be making.

Understanding the Company Intelligence Report is Integral to Success

Understanding The Company Operating Report is Integral to Staying Ahead of The Competition

Your Questions are Always Helpful

Questions & Answers

  • What should my team do if two years in a row there were regions with fully depreciated equipment?

    This is a unique situation I've never contended with before. I would suggest looking into upgrades that specifically improve plant operations. I hope other players will chime in with their comments on this.

  • How can I increase market shares on internet and wholesales marketing?

    The simple answer is to increase advertising spending but a comprehensive approach is needed to get the best results. Research your market, look at market intelligence reports to see what competitors are offering in terms of style and quality, how much are they spending on ads as well as how are they distributing their products. I have noticed that advertising spend and quality directly affect internet market share whereas, the cheapest goods will corner the wholesale market so you will have to manage your production/distribution accordingly. Pay attention to the needs of your customers as well as the capacity demanded by the market. Regarding the internet market, offering a superior product at the lower price than a competitor charges for an inferior product ensures that your products will be bought before the second tier product, however, selling at a lower price is not always the best idea for example, if North America needs 60,000 pairs of shoes but the total distribution of your company, as well as your competitors, is only 55,000 then each and every pair will likely sell regardless of the price.

  • How can I increase the net revenue of my business?

    To increase your company's net income you should focus on improving your bottom line as well as your top line, try to trim labor, materials, warehouse, and delivery expenses. Optimize your advertising dollars by finding the balance between trimming excess spending, growing your market share and fetching the highest possible price for your products. Anticipate your competitors' strengths and weaknesses. Exploit areas where they are weak to gain market share or to increase profit margin. An underserved market will pay what you charge especially if you're the only player or if your product is significantly better than other offerings.

  • How do I know what to put for competitive assumptions in the Business Strategy Game?

    Understanding your competitors' strategy will help you to beat them. You will need to do a detailed analysis of the intelligence reports each time the simulation runs, in order to assume correctly what offensive and defensive strategies are most suitable. The items you're looking to derive these assumptions from include competitors prices (low price, low quality = wholesale strategy), large advertising spend correlates with internet expansion, geographic expansion raises the barrier to entry in that region and it could also mean that the competitor making such an investment is financially stretched and an opportunity exist for your company to put a hurting on them. Large stock buy-back and huge increases in dividend is an indicator that a competitor is struggling/will struggle to achieve growth and further efficiency because sufficient funds are not being invested in new factories, technology, training, etc. The timing of these assumptions are also important for example in the later years of the simulation is will just make more sense to invest in paying down debt, stock buy-back and dividend increase rather than new factories, training, and technology because there isn't sufficient time to achieve an ROI.

  • How intricate are the quizzes in the Business Strategy Game?

    For my class, the questions came directly from the BSG guide.

© 2018 Angelo

Questions, Comments, and Other Tips are Welcomed

    0 of 8192 characters used
    Post Comment
    • profile image


      2 months ago

      The image rating is particularly easy to influence by spending on ethics training, eco-friendly packaging etc.

    • profile image


      2 months ago

      It stands for Game-To-Date. Team is not doing well and need to increase our score, image rating.

    • Angelo Grant profile imageAUTHOR


      2 months ago from College Park, MD

      Please expand the acronym GTD

    • profile image


      2 months ago

      How do you improve your GTD when it is low.

    • Angelo Grant profile imageAUTHOR


      8 months ago from College Park, MD

      Increase your spend on Corporate Social Responsibility initiatives such as recycled packaging.

    • profile image

      sirena riggins 

      8 months ago

      How do you get your image rating to go up?

    • profile image


      11 months ago

      I. Want. Free. Gems

    • Angelo Grant profile imageAUTHOR


      16 months ago from College Park, MD

      Post a specific question in the appropriate section of this article and I'll certainly reply for the benefit of all readers.

    • profile image


      16 months ago

      Hello..... How can we get your help? Thank you

    • Angelo Grant profile imageAUTHOR


      16 months ago from College Park, MD

      Sorry Jay, I do not. However, I am contemplating doing a YouTube video.

    • profile image


      16 months ago

      Hello! Do you provide audio chat sessions to help with BSG game ?


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)
    ClickscoThis is a data management platform studying reader behavior (Privacy Policy)