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BSG Online 2017 - Business Strategy Game - Winning Tips Guides 020

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BSG Online 2017 - Winning Guides and Tips

BSG Online Game – Riding the Tide With Exchange Rates

BSG Online 2017 - Winning Guides and 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.

BSG Online Game – Riding the Tide With Exchange Rates

 

A totally uncontrolled area of the business strategy game is exchange rates.

They are punishing and extremely beneficial to the whole industry.

Understanding exchange rates is the equivalent of taking advantage of the winds at sea in the sense that they are totally uncontrollable, but can be “tamed”.

Taking into account that shipping international simply costs more through tariffs and shipping charges, the fact of the matter is revenues in Europe lose value through the exchange rate by 10%, Asia increases revenue by 10% and LA does nothing either way.

Selling in Europe is comparatively less profitable than Asia due to exchange rates so therefore it’s important to have emphasis in selling products in Asia as far as revenues are concerned.

But exchange rates also change production costs, so therefore it is 10% cheaper to produce shoes in EA and 10% more expensive to produce shoes in Asia.

For companies who have a big Asian plant will be hit hard, and during this year, it actually pays to make shoes cheaply in Europe.

Therefore the big picture is Europe will have less profitable revenues this year, but it will be cheaper to produce shoes there, and Asia will be more profitable to sell shoes this year, but it will be more expensive to produce in that region.

TIPS:

- Spend 15 minutes or more scanning reports before making decisions for every years. 

- In Distribution decisions table, please look at bottom line, after distributing products to all the 4 markets, we see cost per pair of shoes available for sales, including production and logistics cost, we can figure out which markets cost more than other per pair of shoes to sell.

- Then in Whole sales marketing we also check the bottom line to see Profit Margin per pair of shoes sold.

This will show how good is each market, both volume or market share and margins or Net Profit.

 

 

 


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