Author Topic: The Global Business Strategy Simulation Game Tips  (Read 28708 times)

WinBusinessStrategyGameTips

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The Global Business Strategy Simulation Game Tips
« on: May 27, 2010, 03:39:41 AM »
Welcome to the BSGTips Forum,

As of May 26th 2010, we have just recently updated and reset the forum in preparation for Fall 2010.

Here you can ask general questions on the Global Busines Strategy Simulation Game that will be answered by our very own Glo-Bus Industry Champion. And remember to visit us at www.bsgtips.com/glo-bus for guides on Glo-Bus.

Here are a few articles we have on Glo-Bus.

The Global Business Simulation Strategy Game - Glo - Bus Quiz Answers

Glo-Bus Business Strategy Game - Finance and Cash Flow

Winning Glo-Bus!
« Last Edit: September 30, 2012, 07:07:11 PM by WinBSGTips »
For the most up to date support in winning The Business Strategy Game (BGS) and the Global Business Simulation Game (Glo-Bus) visit www.bsgtips.com and Contact the Grand Champion.

WinBusinessStrategyGameTips

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Re: The Global Business Strategy Simulation Game Tips
« Reply #1 on: May 28, 2010, 01:06:34 PM »
The Global Business Simulation Strategy Game - Glo - Bus Quiz Answers
If you're in a business strategy class, you may be taking the Global Business Simulation Strategy Game, or for short, "Glo-Bus". You will most likely be taking two quizzes in this course, Glo-Bus Quiz 1, and Glo-Bus Quiz 2. Both quizzes will go over concept basics of the game, and especially Quiz 2 can have very difficult questions. Many of the questions are financial based. Here's one example question that you will most likely get.

Given the following Financial Statement data:

Income Statement Data Quarter 1

(in 000s)
Sales Revenues $50,000
Operating Profit $14,400
Net Income $9,555

Balance Sheet Data
Total Current Assets $70,000
Total Assets $149,000
Total Current Liabilities $26,000
L-T Debt (draw against credit line) $33,000
Total Equity $90,000

Other Financial Data
Depreciation $4,000
Dividend payments $2,250

Based on the above figures, the company's capital structure consists of what debt and equity percentages? (These percentages are one of the components used in determining the company's credit rating, as explained on the Help screen for the Comparative Financial Performance page of the GSR.)

Here are the 5 answers.

20% debt and 80% equity or 20:80.
27% debt and 73% equity or 27:73.
35% debt and 65% equity or 35:65.
37% debt and 63% equity or 37:63.
None of these.

So to answer this question, we must look at this income statement and conclude what debt and equity is.

Total Equity shows itself at $90,000, so that's easy.

But the real hard part is deciphering what debt is. Believe it or not, but current liabilities isn't part of "debt". And that's a mistake that people make.

So debt is simply Long term debt at $33,000 But then what?

To figure out the correct ratio, the formula for debt ratio= debt/(debt+equity)

[And for note the equity ratio=equity/(debt+equity)]

Or therefore 33,000/(33,000+90,000)=.268 or what equals 27%. Therefore the debt ratio is 27%, and the balance being 73% is equity.

The correct answer is the second one!
For the most up to date support in winning The Business Strategy Game (BGS) and the Global Business Simulation Game (Glo-Bus) visit www.bsgtips.com and Contact the Grand Champion.

WinBusinessStrategyGameTips

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Re: The Global Business Strategy Simulation Game Tips
« Reply #2 on: May 30, 2010, 03:52:31 AM »
Glo-Bus Business Strategy Game - Finance and Cash Flow
 
The Glo-Bus financial screen is quite interesting in terms of business simulations. In relation to Glo-Bus's big brother, BSG, Glo-Bus focuses upon cash flow for each quarter instead of annual year ends. This makes the game rather interesting as it becomes a balancing act of always having enough money for each of the 4 quarters, while still paying down debt. The correct way to do this screen is to basically pay off as much debt as possible while leaving enough a bit more than enough to cover the year's expenses.

Some company's think that it is smart to carry a large cash balance, but that's the equivalent of putting all your personal money into a "checking" account and not paying off your credit card bill. Paying off debt is paramount in Glo-Bus and does wonders for your credit rating when combined with a decent net profit.

Unlike other simulations, Glo-Bus has a very finite amount of ways to spend cash, very rarely will you need to open up new workstations, you will not be required to make any significant upgrades, it is best to use existing cash in the current account to dramatic effect which is best used by paying off debt and continually keeping interest rates low. If in the event that money is required in one year, it is an easy task to go into the operating line and borrowing the amount. But it is important to not think that the interest gained from large cash balances warrants keeping large amounts of cash on hand and debt seemingly allowed to persist.
For the most up to date support in winning The Business Strategy Game (BGS) and the Global Business Simulation Game (Glo-Bus) visit www.bsgtips.com and Contact the Grand Champion.

WinBusinessStrategyGameTips

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Re: The Global Business Strategy Simulation Game Tips
« Reply #3 on: June 01, 2010, 11:22:05 AM »
Winning Glo-Bus!

One of the most common questions amongst new Glo-Bus players is "what is the most" important thing to do in Glo-Bus that makes them win. Unfortunately, there is not just one thing, but a collaboration of many elements that turns a Glo-Bus company into a winner. The foremost element that makes any company the best is net profit, which concludes that you are slanted to have a Earnings Per share (EPS), Return on Equity (RoE), Stock price, and credit rating. But how does one attain net profit? In comparison to other such simulations such as Glo-Bus's big brother, BSG, the ideas of expanding capacity, upgrading, and fancy private label strategies (It is called discount bids in Glo-Bus) is out of the question. Glo-Bus innately relies upon market sales, and therefore requires to have the most value for it's products. It is critical in Glo-Bus to have significant market share and making a decent profit at it.

Increasing market share is a very gradual effort, the nature of the game does not allow quick and profitable ways to greatly increase a company's standing over a round. While increasing market share, you are now leveraging the power of economies of scale, and through that you are able to hire more PATs (production assembly teams) which helps lower those fixed costs.

The initial key to beginning to increase market share is simply having good value for your entry-level and multi-featured cameras in relation to your competition. While market share is the foremost element, it will take the collective success of many elements if your wish is to be the top company.
For the most up to date support in winning The Business Strategy Game (BGS) and the Global Business Simulation Game (Glo-Bus) visit www.bsgtips.com and Contact the Grand Champion.

WinBusinessStrategyGameTips

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Re: The Global Business Strategy Simulation Game Tips
« Reply #4 on: March 14, 2012, 10:15:04 PM »
Glo-Bus Chapter Quiz Answers

Some very "special" students get the priviledge of need to write the BSG or Glo-Bus Chapter Quizzes that follows closely the premium textbook content embedded right into the BSG/Glo-Bus site. There are usually 12 chapter quizzes and possibly a few exams to complete. And they are very tricky to answer.

For more help with BSG and Glo-Bus Chapter Quizzes, email [email protected]

The Grand Champion of The Business Strategy Game and The Glo-Bus Simulation Game

For the most up to date help with The Business Strategy Game and The Glo-Bus Simulation Game go to www.bsgtips.com or www.bsgtips.com/glo-bus
« Last Edit: March 15, 2012, 12:44:02 AM by WinBSGTips »
For the most up to date support in winning The Business Strategy Game (BGS) and the Global Business Simulation Game (Glo-Bus) visit www.bsgtips.com and Contact the Grand Champion.