The Business Strategy Game

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The Business Strategy Game
Online 8th Edition - Class Notes
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What Is The Business
Strategy Game All About?
It’s an online, PC-based exercise where you run an athletic footwear company in head-to-head competition against companies run by other class members. The marketplace is worldwide—production and sales activities can be pursued in North America, Latin America, Europe-Africa, and Asia Pacific There are 12 market segments—4 geographic segments each for branded footwear sales to retailers, for online footwear sales direct to consumers, and for private-label sales  

What Is The Business
Strategy Game All About?
The industry setting is modeled to closely approximate the real-world character of the globally competitive athletic footwear industry. Company operations are patterned after those of an athletic footwear company that makes its footwear at company-operated plants. Cause-effect relationships and revenue-cost-profit relationships are based on sound business and economic principles. Company operations are made as realistic as possible and the functioning of the marketplace in The Business Strategy Game closely mirrors the competitive functioning of the real-world athletic footwear market, thus allowing you and your co-managers to proceed rationally and logically in deciding what to do.  

 
What Is The Business
Strategy Game All About?
You and your co-managers have responsibility for managing all aspects of the company’s operations. As a senior executive, you get to test your ideas about how to run a company (in as realistic a competitive market setting as can be created), and the "live case" nature of the simulation provides prompt feedback on the outcomes of your decisions. Your challenge is to craft and execute a strategy for your athletic footwear company that, when pitted against the strategies of rival companies, delivers good bottom-line results and builds shareholder value.  

How Does The Business
Strategy Game Work?
Virtually all BSG activities take place online, on a PC that must be installed with both Internet Explorer and Microsoft Excel (either the 2000, XP, or 2003 versions). You can either use the same PC for all BSG sessions or you can use different PCs; all that is required is an Internet connection, Internet Explorer, and Microsoft Excel. BSG-Online automatically transfers the needed software from the BSG server to the PC you are working on very quickly (within a couple of minutes even on a slow connection); when you exit a session, your work is saved and transferred back to the server. The last decisions saved to the BSG server at the time of the decision deadline are the ones used to generate the results.  

How Does The Business
Strategy Game Work?
All companies start out on the same footing—with equal sales volume, global market share, revenues, profits, costs, footwear quality, and so on. Each decision period in The Business Strategy Game represents a year. The company you will be running began operations 10 years ago, and the first set of decisions you and your co-managers will make is for Year 11. The company had Year 10 revenues of $238 million, net profits of $25 million (equal to $2.50 per share), had an ROE of ~17%, and a solid B+ credit rating.  

The Types and Numbers of Decisions
You and your co-managers will make decisions each period relating to: Production of branded and private-label athletic footwear (up to 10 decisions each plant, with a maximum of 4 plants) Plant capacity additions/sales/upgrades (up to 6 decisions per plant) Worker compensation and training (3 decisions per plant)

Shipping (up to 8 decisions each plant)
Pricing and marketing (up to 10 decisions in 4 geographic regions) Bids to sign celebrities to endorse your company’s footwear (2 decision entries per bid) Financing of company operations (up to 8 decisions)

Plus there is a screen for making annual sales forecasts and deciding whether to have inventory clearance sales  
You Have Many...
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