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Friday 12 October 2012

One of the most common questions amongst new Glo-Bus players is “what is the most” important thing to do in Glo-Bus that makes them win. Unfortunately, there is not just one thing, but a collaboration of many elements that turns a Glo-Bus company into a winner. The foremost element that makes any company the best is net profit, which concludes that you are slanted to have a Earnings Per share (EPS), Return on Equity (RoE), Stock price, and credit rating. But how does one attain net profit? In comparison to other such simulations such as Glo-Bus’s big brother, BSG, the ideas of expanding capacity, upgrading, and fancy private label strategies (It is called discount bids in Glo-Bus) is out of the question. Glo-Bus innately relies upon market sales, and therefore requires to have the most value for it’s products. It is critical in Glo-Bus to have significant market share and making a decent profit at it.

Increasing market share is a very gradual effort, the nature of the game does not allow quick and profitable ways to greatly increase a company’s standing over a round. While increasing market share, you are now leveraging the power of economies of scale, and through that you are able to hire more PATs (production assembly teams) which helps lower those fixed costs.

The initial key to beginning to increase market share is simply having good value for your entry-level and multi-featured cameras in relation to your competition. While market share is the foremost element, it will take the collective success of many elements if your wish is to be the top company.

The Global Business Simulation Strategy Game – Glo – Bus Quiz Answers
If you’re in a business strategy class, you may be taking the Global Business Simulation Strategy Game, or for short, “Glo-Bus”. You will most likely be taking two quizzes in this course, Glo-Bus Quiz 1, and Glo-Bus Quiz 2. Both quizzes will go over concept basics of the game, and especially Quiz 2 can have very difficult questions. Many of the questions are financial based. Here’s one example question that you will most likely get.
Given the following Financial Statement data:
Income Statement Data Quarter 1
(in 000s)
Sales Revenues $50,000
Operating Profit $14,400
Net Income $9,555
Balance Sheet Data
Total Current Assets $70,000
Total Assets $149,000
Total Current Liabilities $26,000
L-T Debt (draw against credit line) $33,000
Total Equity $90,000
Other Financial Data
Depreciation $4,000
Dividend payments $2,250
Based on the above figures, the company’s capital structure consists of what debt and equity percentages? (These percentages are one of the components used in determining the company’s credit rating, as explained on the Help screen for the Comparative Financial Performance page of the GSR.)
Here are the 5 answers.
20% debt and 80% equity or 20:80.
27% debt and 73% equity or 27:73.
35% debt and 65% equity or 35:65.
37% debt and 63% equity or 37:63.
None of these.

So to answer this question, we must look at this income statement and conclude what debt and equity is.
Total Equity shows itself at $90,000, so that’s easy.
But the real hard part is deciphering what debt is. Believe it or not, but current liabilities isn’t part of “debt”. And that’s a mistake that people make.
So debt is simply Long term debt at $33,000 But then what?
To figure out the correct ratio, the formula for debt ratio= debt/(debt+equity)
[And for note the equity ratio=equity/(debt+equity)]
Or therefore 33,000/(33,000+90,000)=.268 or what equals 27%. Therefore the debt ratio is 27%, and the balance being 73% is equity.


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The Grand Champion of The Glo-Bus Simulation Game
For more Glo-Bus Game Help that teaches how to Win the Glo-Bus Strategy Game go to www.bsgtips.com/glo-bus

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