Last Update January 30th, 2019

Business Strategy Game Quiz 1 primarily consists of two topics. The first topic is where the company starts out. The second topic is on how the bsg-online operates. The YouTube Video above covers both topics. You will find most of the Business Strategy Game Quiz 1 answers below. I recommend reading over them a few times and watching  the video to familiarize yourself with the content.  All BSG-Online quizzes are timed. Keep in mind, your quiz 1 results DO effect your overall Business Strategy Game grade. If you take your time and really do well on them, you’ll have more leeway to make errors in the game.   You can also view the Quiz 1 SlideShare below.

Where your Athletic Footwear Company Starts out:

• Your company starts out with two factories. One in north America and the Second in Asia Pacific.
• The company currently sells shoes in North America, Latin America, Asia Pacific & Europe Africa.
• The market currently allows each company to sell an average of  4.84 million branded shoes and 800k private label shoes.
• Branded shoes will grow 5-7% in the first five years for North America and Europe then fall to 3-5% the next five years. In Asia Pacific & Latin America, branded shoes will grow 9-11% in the first five years and 7-9% the last five years.
• Private label is expected to grow 10% universally in the first five years and 8.5% during the next four years vary up to 2% due to competition levels.
• Your company can produce 6 million pairs of shoes during normal time and an additional 1.2 million if overtime is used.
• Shoes shipped from factories to distribution centers are subject to tariffs (according to region) and any exchange rate effects.
• Your factory’s workers are compensated through a base pay and incentive pay (not including defects) and overtime pay if applicable.
• Plant Upgrades:
  • Upgrade A reduces defective pairs by 50%.
  • Upgrade B cuts production run setup costs by 50%.
  • Upgrade C increases SQ rating one star.
  • Upgrade D increases worker productivity 25%.

Business Strategy Game Quiz 1 Game Mechanics:

• Your company’s score is based on:
  • EPS (Earnings Per Share.)
  • ROE (Return on Equity.)
  • Stock Price.
  • Credit Rating.
  • Image Rating.
• Exchange rates are tied to real world rates based on:
  • The U.S. Dollar.
  • The Euro.
  • The Brazilian Real.
  • The Singapore Dollar.
• Your interest rate is determined by our credit rating. Your credit rating is determined by:
  • Your default risk ratio.
  • Your debt-asset ratio.
  • Your interest coverage ratio.
• Factors that effect SQ Rating:
  • Percentage of superior materials
  • TQM & Best Practices.
  • Styling and Features.
  • Plant upgrade C.
• Factors effecting reject rates include:
  • Plant Upgrade A.
  • Your incentive pay.
  • Best Practices training.
  • TQM/Six Sigma.
  • Model numbers available.
• Worker productivity is based on:
  • Plant upgrade D.
  • Incentive pay relational to other companies.
  • Base pay relational to other companies.
  • Best practices training relational to other companies.
• Standard and Superior material prices are based on demand-supply conditions within the game and pegged to real world prices.
• Your price competitiveness for a particular region is based on how you relate to the average price of all your competing companies.

As always, if you have any questions on the Business Strategy Game Quiz 1, please feel free to contact me. I try to answer all questions in a timely basis. If you desire to receive all of the secrets to my student’s successes in BSG you can learn more about our guide here.