“Business
               Strategy Simulation”
                                  Course

               Competing in a
    ...
The Business Strategy




   Orientation and Overview




Business Strategy Simulation   www.bsg-online.com   Guillermo Vi...
What Is The Business
           Strategy Simulation All About?
 It’s an online, PC-based exercise where you run an
  athl...
What Is The Business
            Strategy Simulation All About?
 The industry setting is modeled to closely approximate
 ...
How Does The Business
                 Strategy Simulation Work?
 All companies start out on the same footing—with equal
...
The Types and Numbers of
                     Decisions
Co-managers will make decisions each period relating to:
 Corpora...
No One Strategy Is “Best”
                                   “Best”

 Most any well-conceived, well-executed competitive
...
What You Can Expect to
                   Learn
Running the athletic footwear company in head-on
competition with rivals w...
“Business
               Strategy Simulation”
                                  Course

               Competing in a
    ...
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Business Strategy Simulation022010

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Overview of the BSG software, great tool for professor usage, for graduate and undergraduate students

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Business Strategy Simulation022010

  1. 1. “Business Strategy Simulation” Course Competing in a Global Marketplace The Business Strategy Simulation has been used at 500+ schools in 25+ countries and played by 500,000+ students. Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins
  2. 2. The Business Strategy Orientation and Overview Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins
  3. 3. What Is The Business Strategy Simulation 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 Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins
  4. 4. What Is The Business Strategy Simulation All About?  The industry setting is modeled to closely approximate the real-world character of the globally competitive athletic footwear industry.  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 BSG closely mirrors the competitive functioning of the real-world .  All co-managers have responsibility for managing all aspects of the company’s operations.  Co-managers challenge is to craft and execute a strategy for your company that, when pitted against the strategies of rival companies, delivers good bottom-line results and builds shareholder value. Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins
  5. 5. How Does The Business Strategy Simulation 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. Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins
  6. 6. The Types and Numbers of Decisions Co-managers will make decisions each period relating to:  Corporate social responsibility and citizenship  Production of branded and private-label athletic footwear (up to 10 dec. each plant, with a maximum of 4 plants)  Plant capacity additions/sales/upgrades (up to 6 dec. p/plant)  Worker compensation and training (3 dec. per plant)  Shipping (up to 8 decisions each plant)  Pricing and marketing (up to 10 dec. in 4 geographic regions)  Bids to sign celebrities to endorse your company’s footwear (2 decisions 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 Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins
  7. 7. No One Strategy Is “Best” “Best”  Most any well-conceived, well-executed competitive approach is capable of succeeding, provided it is not overpowered by the strategies of competitors or 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 the strategies employed by rival companies—not on some mystery “silver bullet” decision combination that players are challenged to discover. Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins
  8. 8. What You Can Expect to Learn Running the athletic footwear company in head-on competition with rivals will give you a chance to put into play the very kinds of things about crafting and executing strategy in a globally competitive Co-managers will have to chart a long-term direction for your company, set and achieve strategic and financial objectives, craft a strategy, and adapt it to changing industry and competitive conditions. Learning to do all these things and gaining an appreciation of why they matter are the heart and soul of courses in business strategy. Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins
  9. 9. “Business Strategy Simulation” Course Competing in a Global Marketplace The Business Strategy Simulation has been used at 500+ schools in 25+ countries and played by 500,000+ students. Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins

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