McGraw-Hill/Irwin
athletic footwear company in competition against companies run by other class members.
Global marketplace: production and sales
activities can be pursued in North America, Latin America, Europe-Africa, and Asia Pacific
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
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$238 million, net profit of $25 million (equal to $2.50 per share), an ROE of ~17%, and a solid B+ credit rating.
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(up to 6 decisions)
Production of branded and private-label athletic
per plant)
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Decisions (cont.)
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
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latitude in striving for competitive advantage and good performance. Theres no built-in bias that favors any one strategy.
Some examples:
Low-cost/low-price
Differentiation
Emphasize branded footwear Emphasize private-label or internet
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competitive approach is capable of succeeding, provided it is not overpowered by the strategies of competitors or diluted by the presence of too many copycat strategies.
Which strategies deliver the best performance
depend on the strength and interplay of each companys strategy and decisions against the strategies and decisions employed by rival companiesthere is no mystery best strategy.
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among companies are attributable to differing competitive efforts on price, S/Q rating, advertising, models offered, delivery times, retailer support, etc.
Every companys strategic challenge is to
craft a competitive strategy (and related decisions) that it believes will produce the desired sales and market share outcomes when pitted against the competitive strategies of rival companies, region by region.
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market and competitive conditions, try to avoid being outmaneuvered by competitors, and make sure your footwear is attractively priced and competitively marketed.
It is the competitive power of your
strategy vis--vis the competitive power of rivals strategies that is the deciding factor in determining sales and market shares.
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practicing and experiencing what it takes to develop winning strategies in a globally competitive marketplace.
At the end, the only things separating the
best-performing companies from the others will be the caliber of the decisions and strategies of the management teams.
Its an exercise calculated to spur
any PC with an Internet conection, Internet Explorer and Microsoft Excel (any of the 2000, XP, 2003, or 2007 versions).
BSG-Online automatically transfers the needed
software from the BSG server to the PC you are working on quickly; 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.
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3. Maintain a B+ or higher credit rating. 4. Achieve stock price gains averaging about
7% annually through Year 15 and about 5% annually thereafter.
Scoring Weights
The weights that will be placed on your companys achievement of each of the five annual performance targets are as follows:
30%
20%
15% 20% 15%
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does your companys performance stack up against the company with the best EPS, ROE, stock price, and image rating and against an industry-best A+ credit rating?)
The investors expectations standard (How
well did you meet or beat the annual performance targets for each of the 5 performance measures?)
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asked to complete a confidential evaluation of the contributions of each of your comanagers and yourself.
Individuals who contribute significantly more
or less than the team may receive BSG grades higher or lower than the team
The professor will supply the form; it will not
Learning to do all these things and gaining an appreciation of why they matter are the heart and soul of courses in business strategy.
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courses, consolidate your knowledge about the different aspects of running a company, and provide a capstone experience for your business school education.
Deepen your understanding of revenue-cost-profit
relationships and build your confidence in utilizing the information contained in company financial statements and operating reports. Youll see why you cannot hope to understand a companys business and make prudent decisions without full command of the numbersit wont take you long to appreciate why shooting from the hip is a sure ticket for managerial disaster.
Provide you with practice in sizing up a companys
situation, making sound, responsible business decisions, and being accountable for delivering good results.
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code handy (this code is used to put you into the database for this specific course and to certify you as a co-manager of your assigned industry and company). See link in New & Misc. Notes.
Step 2: Go to www.bsg-online.com Step 3: Click on the Create Student Account button
and enter the company registration code provided by your instructor in the box.
Step 4: Continue on to the next step of the registration
information (user name, password, and so on) and the credit card payment process. The Web site for credit card payment is fully secured; you will receive a receipt e-mail. If you have no credit card or Prepaid Access Code, the easiest way to complete this step is to arrange to use a friends or comanagers credit card and reimburse them directly with cash or a check.
Once you are registered, you will have full use of the student portion of the BSG Web site and access to all of the materials and information you will need.
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Each time you log-on to www.bsg-online.com, you are automatically routed to your companys Corporate Lobby web page. The Corporate Lobby page is your gateway to all BSG activities. Near the top of this page is a series of menu selections that provide instant access to all the necessary information, materials, and tools you will need, including the Players Guide & decision schedule. Below these menu items are (1) a Decisions and Reports box for accessing the decision entry screens and viewing reports, (2) a message center box, and (3) information showing the latest exchange rate adjustments, current interest rates, and a company performance scoreboard. You have anywhere, anytime access to your Corporate Lobby page from any PC that is connected to the Internet.
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alphabet that you have been assigned. Names can be up to 20 characters. To name the company, click on the Company Name menu item near the top of the Corporate Lobby screen and enter your companys full name in the space provided.
All company names are public and appear in the
Footwear Industry Report; thus you should select a name that you are proud of and that reflects the image you want to project to your customers, shareholders, other company stakeholders, and the general public.
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Some Procedures
Check the Decision Schedule link on your
Corporate Lobby page for the dates and deadlines for the decisions. The decision deadlines are strictly enforced, since the results are processed automatically on the BSG servers minutes after the deadline.
The results of each decision will be available
results are ready. At that point you can log-on, see what happened, and proceed with the next decision.
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Losers
Don't understand company operations Don't understand how to run the game Fail to develop & implement a specific
strategy
Typically change strategies several times as
Winners
Understand company operations Learn well how to run the game Develop a specific strategy & stick with
trends
Maintain balance between demand
and supply
Are assertive & proactive
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