The Business Strategy Simulation is an online simulation where students run an athletic footwear company competing against other student-run companies. In the simulation, students make decisions across various business functions over multiple years. The simulation aims to help students learn about crafting and executing business strategy in a globally competitive environment. It has been used in over 500 schools across more than 25 countries and has engaged over 500,000 students.

1. “Business
Strategy Simulation”
Course
Competing in a
Global Marketplace
The Business Strategy Simulation has been used at 500+ schools
in 25+ countries and played by 500,000+ students.
Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins

2. The Business Strategy
Orientation and Overview
Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins

3. What Is The Business
Strategy Simulation All About?
 It’s an online, PC-based exercise where you run an
athletic footwear company in head-to-head
competition against companies run by other class
members.
 The marketplace is worldwide—production and sales
activities can be pursued in North America, Latin
America, Europe-Africa, and Asia Pacific
 There are 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
Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins

4. What Is The Business
Strategy Simulation All About?
 The industry setting is modeled to closely approximate
the real-world character of the globally competitive
athletic footwear industry.
 Cause-effect relationships and revenue-cost-profit
relationships are based on sound business and economic
principles.
 Company operations are made as realistic as possible and
the functioning of the marketplace in The BSG closely
mirrors the competitive functioning of the real-world .
 All co-managers have responsibility for managing all
aspects of the company’s operations.
 Co-managers challenge is to craft and execute a strategy
for your company that, when pitted against the strategies
of rival companies, delivers good bottom-line results and
builds shareholder value.
Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins

5. How Does The Business
Strategy Simulation Work?
 All companies start out on the same footing—with equal
sales volume, global market share, revenues, profits,
costs, footwear quality, and so on.
 Each decision period in The Business Strategy Game
represents a year.
 The company you will be running began operations 10
years ago, and the first set of decisions you and your co-
managers will make is for Year 11.
 The company had Year 10 revenues of $238 million, net
profits of $25 million (equal to $2.50 per share), had an
ROE of ~17%, and a solid B+ credit rating.
Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins

6. The Types and Numbers of
Decisions
Co-managers will make decisions each period relating to:
 Corporate social responsibility and citizenship
 Production of branded and private-label athletic footwear
(up to 10 dec. each plant, with a maximum of 4 plants)
 Plant capacity additions/sales/upgrades (up to 6 dec. p/plant)
 Worker compensation and training (3 dec. per plant)
 Shipping (up to 8 decisions each plant)
 Pricing and marketing (up to 10 dec. in 4 geographic regions)
 Bids to sign celebrities to endorse your company’s
footwear (2 decisions entries per bid)
 Financing of company operations (up to 8 decisions)
 Plus there is a screen for making annual sales forecasts and
deciding whether to have inventory clearance sales
Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins

7. No One Strategy Is “Best”
“Best”
 Most any well-conceived, well-executed competitive
approach is capable of succeeding, provided it is not
overpowered by the strategies of competitors or
defeated by the presence of too many copycat
strategies that dilute its effectiveness.
 In other words, which strategies deliver the best
performance hinges on the strength and interplay of
the strategies employed by rival companies—not on
some mystery “silver bullet” decision combination
that players are challenged to discover.
Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins

8. What You Can Expect to
Learn
Running the athletic footwear company in head-on
competition with rivals will give you a chance to put
into play the very kinds of things about crafting and
executing strategy in a globally competitive
Co-managers will have to chart a long-term direction
for your company, set and achieve strategic and
financial objectives, craft a strategy, and adapt it to
changing industry and competitive conditions.
Learning to do all these things and gaining an
appreciation of why they matter are the heart and
soul of courses in business strategy.
Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins

9. “Business
Strategy Simulation”
Course
Competing in a
Global Marketplace
The Business Strategy Simulation has been used at 500+ schools
in 25+ countries and played by 500,000+ students.
Business Strategy Simulation www.bsg-online.com Guillermo Villamor Mendes-Martins