BSG Lessons Learned
How did the key theories and concepts in the course relate to the simulation?
The Business Strategy Game (BSG) was the practice of strategic management that offers virtual executive experience. The assigned team could analyze the market, set the direction, and make strategy for company’s growth in BSG. To complete this simulation successfully, we had to use many key concepts, which were acquired in the WPC 480 course, to manage company’s strategic decision. External analysis was crucial to succeed, because we had to compete with other 9 teams from WPC 480 in the same market.
For example, using the five forces model, we have always analyzed our competitors’ price range in market snapshot before making our final decision to …show more content…
Our sales price was not the cheapest price, not the most expensive price, but the right price to sell off all produced products. This helped us to maximize overall efficiency in sales. We forecasted the next year’s price of competitors by trend analysis that compares the previous year’s price and the current year’s price to predict the next year’s price.
Production: We have successfully minimized the production cost. We have used minimum resources to produce the same quality product. In fact, our total manufacturing cost per pair has been much lower than other companies who produce the same quality product. We decided to produce the upper-middle quality that shows the best “quality per cost” in BSG.
Distribution: Carrying the right number of inventories at the right warehouse was important to maximize cost efficiency and manage surplus and shortage. We have forecasted demand based on previous history and managed inventories without too much surplus and shortage successfully.
Marketing: We have figured out the most effective amount of marketing expense, which is about $1,000,000 to $2,000,000 higher than the market average, for each region in each year, and maximized effectiveness per expense based on our
How did the key theories and concepts in the course relate to the simulation?
The Business Strategy Game (BSG) was the practice of strategic management that offers virtual executive experience. The assigned team could analyze the market, set the direction, and make strategy for company’s growth in BSG. To complete this simulation successfully, we had to use many key concepts, which were acquired in the WPC 480 course, to manage company’s strategic decision. External analysis was crucial to succeed, because we had to compete with other 9 teams from WPC 480 in the same market.
For example, using the five forces model, we have always analyzed our competitors’ price range in market snapshot before making our final decision to …show more content…
Our sales price was not the cheapest price, not the most expensive price, but the right price to sell off all produced products. This helped us to maximize overall efficiency in sales. We forecasted the next year’s price of competitors by trend analysis that compares the previous year’s price and the current year’s price to predict the next year’s price.
Production: We have successfully minimized the production cost. We have used minimum resources to produce the same quality product. In fact, our total manufacturing cost per pair has been much lower than other companies who produce the same quality product. We decided to produce the upper-middle quality that shows the best “quality per cost” in BSG.
Distribution: Carrying the right number of inventories at the right warehouse was important to maximize cost efficiency and manage surplus and shortage. We have forecasted demand based on previous history and managed inventories without too much surplus and shortage successfully.
Marketing: We have figured out the most effective amount of marketing expense, which is about $1,000,000 to $2,000,000 higher than the market average, for each region in each year, and maximized effectiveness per expense based on our