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Introduction to the Business Strategy Game. Please note: Administrators of the BSG routinely change the software. If you notice something out of date in this presentation, please let me know and I’ll correct these notes. Getting Started.

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introduction to the business strategy game

Introduction to theBusiness Strategy Game

Please note: Administrators of the BSG routinely change the software. If you notice something out of date in this presentation, please let me know and I’ll correct these notes.

getting started
Getting Started
  • Form a team of players who you can work with throughout the semester
  • Complete a ‘sign-up card’ and I will give you the registration code needed to access your company
  • Long on to
  • Practice using the site
  • Practice making decisions
basics of bsg
Basics of BSG
  • $238M athletic footwear manufacturer
  • 3 to 4 students per team, depending on class size
  • At the start, each team is identical
  • Approximately 10 teams per industry
  • Industry winner:
    • Added to BSG plaque & web page
    • Gets “A” for BSG component of course grade.
  • Each team represents members of management
  • 2 practice decision sets, 9 actual decision sets
  • Make decisions according to weekly schedule
what you can expect to learn
Revenue / cost / profit relationship

How the functional areas (acct., Finance, mkt., H.R., I.S., O.M.) Of business fit together

Aspects of global competition

Decision making, business judgment skills

Work together in teams, compromise, set goals and agendas

Organizing / analyzing data and reports

Balancing cooperation and competition

What You Can Expect to Learn
company operations
Company Operations
  • Manufacturing plants in
    • N.A. (2M capacity)
    • Asia (4M capacity)
  • Warehouses in Memphis, Milan, Bangkok & Rio
  • Compete on a variety of aspects, including price, quality, service, models, advertising, image, rebates
  • Compete in both private label and branded markets
  • Have average S/Q rating (5-stars)
  • Access to three distribution channels:
    • Independent retailers
    • Online sales
    • Private label sales
company operations cont d
Company Operations, cont’d
  • Good financial condition
  • Strong industry growth rate expected for next 4 years
  • Exchange rate impacts
  • Manufacturing:

Piecework incentives

Quality control to manage reject rates (5%)

May use overtime to expand production capacity

Base wages vary between plant locations

factors that drive market share

S/Q ratings

Product line breadth



Celebrity appeal

Delivery time

Retailer support

Number of retail outlets

Online sales efforts

Customer loyalty

Factors That Drive Market Share
how performance is judged
How Performance Is Judged
  • Growth in earnings per share (EPS): 7% to 5%
  • Return on equity: 15%
  • Credit Rating: B+ or higher
  • Image rating: 70 or higher
  • Stock price gains: 7% and 5%

These factors are view from two perspectives – an investor expectations standard, and a best-in-industry standard.

pending strategic decisions
Pending Strategic Decisions
  • Establish a long-term strategy
  • Determine Market position of company
  • Decide on appropriate distribution channels for your strategy
  • U.S. Based or international manufacturing
  • Possible expansion of product line (100 models)
  • Use of celebrities to enhance brand image
production and markets
Production and Markets


N. A.



L. A.






Ave. Market Demand (000s)






P. L.