BUSINESS STRATEGY GAME (BSG) ALL EXAMS
QUESTIONS AND CORRECT ANSWERS, ACTUAL EXAM
2025 REVISED LATEST UPDATE VERSION PASSED
ALREADY GRADED A+.pdf
1. What is the primary goal of the Business Strategy Game?
Maximize the company’s total earnings per share (EPS) and stock
price appreciation
A high EPS and stock price reflect strong financial performance, which
is the main metric used to rank teams in BSG.
2. Which factor has the biggest impact on your company’s image rating?
CSR initiatives and product quality
Both corporate social responsibility (CSR) and high quality improve
customer perception, boosting your image rating.
3. What is the main driver of competitive advantage in the BSG?
Low cost or differentiation strategy
Companies must choose between competing on price (cost
leadership) or offering superior features (differentiation).
4. Which region typically has the highest demand for branded footwear?
North America
North America usually generates the highest sales volume, so it’s
crucial to remain competitive there.
5. What happens if your delivery times are longer than rivals’?
Your market share may decrease
, Slow delivery increases buyer dissatisfaction, which can hurt sales
compared to faster competitors.
6. How often can you adjust your company’s strategy in the BSG?
Once per year
The simulation is turn-based with one decision round per year.
7. What is the best way to increase internet sales?
Offer free shipping and high S/Q ratings
Free shipping and high quality ratings attract more online customers.
8. What does S/Q rating stand for?
Style/Quality rating
This indicates how customers perceive the quality and style of your
shoes.
9. Which option increases production capacity?
Building new plants or expanding existing ones
You must invest in physical facilities to increase annual production.
10. What is the effect of outsourcing production to contract manufacturers?
Reduces production costs but lowers control
Contracting lowers labor costs but you lose direct oversight of quality.
11. Which financial measure is used to determine credit rating?
Debt-to-equity ratio
A lower debt-to-equity ratio means lower financial risk, improving
credit rating.
12. How does advertising spending affect demand?
Higher advertising increases demand up to a point
, Effective advertising improves brand awareness and boosts sales until
diminishing returns occur.
13. Which factor improves worker productivity?
Investing in training and better working conditions
Employee productivity improves with skill training and better
conditions, reducing labor costs per unit.
14. Which CSR initiative impacts your image rating the most?
Use of green energy and charitable donations
These high-profile CSR activities boost image ratings significantly.
15. How can you lower your cost per pair?
Increase production efficiency and reduce rejections
Higher efficiency spreads fixed costs across more units, lowering cost
per pair.
16. Why is it important to maintain an adequate cash balance?
To avoid overdrafts and interest penalties
Insufficient cash leads to overdrafts or forced borrowing, hurting
financial performance.
17. What does the celebrity endorsement budget affect?
Brand recognition and demand
Celebrity endorsements make your brand more desirable, increasing
sales.
18. Which market segment is most sensitive to price changes?
Private-label segment
Private-label buyers are price-sensitive and less loyal to brand image.
QUESTIONS AND CORRECT ANSWERS, ACTUAL EXAM
2025 REVISED LATEST UPDATE VERSION PASSED
ALREADY GRADED A+.pdf
1. What is the primary goal of the Business Strategy Game?
Maximize the company’s total earnings per share (EPS) and stock
price appreciation
A high EPS and stock price reflect strong financial performance, which
is the main metric used to rank teams in BSG.
2. Which factor has the biggest impact on your company’s image rating?
CSR initiatives and product quality
Both corporate social responsibility (CSR) and high quality improve
customer perception, boosting your image rating.
3. What is the main driver of competitive advantage in the BSG?
Low cost or differentiation strategy
Companies must choose between competing on price (cost
leadership) or offering superior features (differentiation).
4. Which region typically has the highest demand for branded footwear?
North America
North America usually generates the highest sales volume, so it’s
crucial to remain competitive there.
5. What happens if your delivery times are longer than rivals’?
Your market share may decrease
, Slow delivery increases buyer dissatisfaction, which can hurt sales
compared to faster competitors.
6. How often can you adjust your company’s strategy in the BSG?
Once per year
The simulation is turn-based with one decision round per year.
7. What is the best way to increase internet sales?
Offer free shipping and high S/Q ratings
Free shipping and high quality ratings attract more online customers.
8. What does S/Q rating stand for?
Style/Quality rating
This indicates how customers perceive the quality and style of your
shoes.
9. Which option increases production capacity?
Building new plants or expanding existing ones
You must invest in physical facilities to increase annual production.
10. What is the effect of outsourcing production to contract manufacturers?
Reduces production costs but lowers control
Contracting lowers labor costs but you lose direct oversight of quality.
11. Which financial measure is used to determine credit rating?
Debt-to-equity ratio
A lower debt-to-equity ratio means lower financial risk, improving
credit rating.
12. How does advertising spending affect demand?
Higher advertising increases demand up to a point
, Effective advertising improves brand awareness and boosts sales until
diminishing returns occur.
13. Which factor improves worker productivity?
Investing in training and better working conditions
Employee productivity improves with skill training and better
conditions, reducing labor costs per unit.
14. Which CSR initiative impacts your image rating the most?
Use of green energy and charitable donations
These high-profile CSR activities boost image ratings significantly.
15. How can you lower your cost per pair?
Increase production efficiency and reduce rejections
Higher efficiency spreads fixed costs across more units, lowering cost
per pair.
16. Why is it important to maintain an adequate cash balance?
To avoid overdrafts and interest penalties
Insufficient cash leads to overdrafts or forced borrowing, hurting
financial performance.
17. What does the celebrity endorsement budget affect?
Brand recognition and demand
Celebrity endorsements make your brand more desirable, increasing
sales.
18. Which market segment is most sensitive to price changes?
Private-label segment
Private-label buyers are price-sensitive and less loyal to brand image.
