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BSG Online 2017 - Business Strategy Game - Winning Tips Guides 005 (3)

Business Strategy Game - BSG Online 2917

BSG Online - Best Tips

3. Plant Capacity / Upgrades

BSG Online 2017 - Tips Revised

For the new seasons of BSG Online 2017, we have some new winning strategies, some old tips remains the same as previous post on BSG tips, but with some new insights.

You can follow this new guides and in order to win BSG Online 2017.

3. Plant Capacity / Upgrades

We have two plants in year 11, and growth rate of market is about 5-7%, during 10 years from year 11 to year 20 we will need to double may be triple production capacity. Decide right time to upgrade factories or expand or build a new factory is a key to success.

It is good to expand or build on the existing plants. Often in AP because of lower labor cost. We can look at cost per pair of shoes in years 13-14 and later to see this.

Never sell our factory. It is both in game and in life if we can avoid the worst situation. We do not want to laid off thousands of workers. And also we want to win the game, so the most powerful things we are having is our plants. How can we compete without plants. So do not sell the plants, again. If we have too much extra capacity we can use that for Private Label markets. We can lower price, increase advertising, many ways to sell more. And, bottom line shows that the Net Profit depends on Margin and Number of Products sold.

 

In this table, we need to select 2 Options to upgrade our plants. If we follow High S/Q, the Option C is most appropriate, because it saves a lot of cost when we produce higher Stars.

If we follow the large number of models, high capacity, so the Production Run Setup Reduction upgrade is good because it saves cost when we produce large number of products.

 

In conclusion, we need to look at Market Report - Page 4 to see the Total Market Demand vs Total Market Supply, if the surplus is about 20%, we can build a new factory.

Also, this is a competition game, so if we do not build or expand factories, our competitors will do, therefore, it is better to make this decision in advance. Higher capacity will lower cost of productions, therefore we can have higher margins.

Do not build factory in EA, because later years, cost of production in this continent is higher, highest in all 4 markets.

Often, we expand factory in AP then we can build new in LA, if not needed we can sell factory in NA (do not recommend or only when necessary).

Take a good care of ROE when building new factory, because too much too high Equity can lower the ROE if Revenue can not increase as much as capacity or Total Equity.

 

Please view video guides for more details: www.youtube.com/ecomftu2012 

 


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