5 Top BSG Tips

From The Free Business Strategy Game Tips Guide At WinBSGOnline.com

1.Check for Price Elasticity

Always check for price elasticity. The Business Strategy Game uses ranges to compute price & demand instead of a fluid curve.

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1.Check for Price Elasticity

Example: If you predict the industry average of shoes prices in North America to be 50 dollars, The Business Strategy Game might compute that you will sell 3M pairs of shoes in NA between the price of $49.00 and $51.00 dollars.

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1.Check for Price Elasticity

So how do I implement this? Just set your forecasts and then test slightly higher price points on the wholesale distribution screen to make sure your not missing out on additional profit.

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1.Check for Price Elasticity

A few caveats: 1. The range becomes wider as the SQ & model number strategies of teams deviate more. 2. This normally happens the most intensely during the later stages of the game.

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2.Buy Back Stock Early

Buying back stock is one of the only tips you can do in the game that will instantly guarantee you a higher score because it increases almost every metric youre graded on 1. Increases your EPS dramatically 2. Increases your ROE dramatically 3. You can pay a higher dividend for less cash 4. Your stock price shoots up because of your higher EPS, ROE & dividends.
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2.Buy Back Stock Early

Example: If your net profit was $25M in Year 10 and you had 10M shares of stock outstanding, your EPS would be $2.50. (25M/10M = 2.50) If youve bought back your 2.5M shares, you would have 7.5M million shares outstanding and your EPS would jump to $3.33. (25M/7.5M=3.33) Roughly a 40% jump in score.
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2.Buy Back Stock Early

You Want To Do It Early Because 1. The game limits how much stock you can buyback a year. It takes on average five years to buy it all back 2. If youre following the right strategies, your stock price is going to skyrocket it isnt cost effective to buy stock in the later years. 3. It gives you the option for a debt-equity swap.
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3.Buy Celebrities Early

Buy celebrities with long term contracts in the early stages of the game Celebrity purchase price normally follows either a bell curve or a logarithmic curve. It starts out relatively low and then peaks and falls off or peaks and barely increases during the final years.

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3.Buy Celebrities Early

Focus on the celebrities with the longest contracts during these first few years. I suggest paying between 2M & 5M dollars. Use your judgment though, celebrity pricing normally depends on class metagame than an actual science. You want to long-term lock in contracts at lower rates to be as effective as possible
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3.Buy Celebrities Early

An Exception The one exception to this rule is when nobody bids on celebrities in the practice rounds and multiple teams do poorly. Celebrities can sometimes start out highly competitive in this situation.

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4.Predict Material Prices

Always Predict Materials Prices It is largely responsible for the I just dont know what happened, it said we were going to make an EPS of $3.50, but we ended up with -$1.50 comments It is located on the Branded production screen. At the upper left hand side, youll see a small box that looks like a graph, half filled with green.
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4.Predict Material Prices

The prices of superior and standard materials are based on supply and demand functions If more teams use a high SQ strategy, the more superior materials will cost because of the increased demand for superior materials will drive up superior material prices. The opposite is also true, the more teams perusing a high SQ strategy will use less standard materials and thus the costs will be lower.
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4.Predict Material Prices

How to implement it: Look at teams strategies and gestimate whether or not they will be increasing their SQ ratings. If they are increasing their SQ ratings higher assume superior material costs will rise and vice versa.

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5.Re-Finance Loans
If youre employing a successful strategy, you will be carrying debt. It is important to look for opportunities to refinance your outstanding debt to increase your cash flow. It is simple to do. First, check each decision round if your interest rate has fallen or risen because of either an increased credit rating or decreasing interest rates.
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5.Re-Finance Loans
Then, look on your Balance Sheet & Cash Flow report to see which loans outstanding have the higher interest rates. Finally, take out a loan for the same amount while paying off the existing one. You can group multiple smaller loans together to take advantage of this as well.
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Thank You
I appreciate all of the support and positive feedback you guys have given me over the past few years. Ive uploaded the slides to slide share. Feel free to view them at the link below.

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Contact Me
If you have any questions, comments or want clarifications, please feel free to comment or press like below. I know the BSG can be hard to understand and that I sometimes leave out concepts because of my familiarity with the game. I respond to all comments the same day.
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For the next five tips:

For the next five free tips, head on over to my website and request your free copy. Youll find all of the information you need to pick a winning strategy and execute it there.

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