Comprehensive Financial Analysis of BSG Game Simulation Results

This report provides a financial analysis of a Business Strategy Game (BSG) simulation, focusing on key performance indicators and market dynamics. It examines investor expectations by evaluating Earnings Per Share (EPS), Return on Equity (ROE), stock price trends, and credit rating improvements over a three-year period, highlighting their impact on investor decisions. The report also analyzes the wholesale segment, noting price variations across different geographic regions (North America, Asia Pacific, Europe, Africa, and Latin America) and attributing these changes to factors like inflation and marketing strategies. Furthermore, it assesses the company's market share, attributing its growth to good standards maintained in Year 12 and the effective utilization of new technologies and marketing strategies, particularly in North America and Asia Pacific. Desklib offers a range of resources, including past papers and solved assignments, to support students in understanding and excelling in similar analyses.

Financial Summary

TABLE OF CONTENT
MAIN BODY...................................................................................................................................3
Investors expectations..................................................................................................................3
Wholesale Segment......................................................................................................................4
Market share.................................................................................................................................4
REFERENCES................................................................................................................................5

MAIN BODY
Investors expectations
Earning per share :
Earning per share (EPS) can also be said as the division of companies net profit by the
number of common shares which it has outstanding. With the help of EPS the indication of how
much money is generated by the organization as per each share of its stock. This is mostly used
as the metric for the estimation of corporate value. For the given scenario the companies EPS
was 2.09 in 2011. This means that the company generated 2.9 earning out of each share. From
this evaluation it was concluded that company is having positive trend in its EPS as its increased
to 2.82 and 3.51 in year 12 and 13 respectively. Increase in the earning per share is good for the
organization. This information is also very important for the investors as they are able to
understand the efficiency of the company. Investors like to invest in company which can use
their money to generate more income (Glaser, Iliewa and Weber, 2019).
Return on Equity :
Return on Equity is used for the measurement of financial performance. It is calculated
by dividing net income with shareholders equity. Return of equity of an organization is
considered good if it has 15- 20% in general ROE. The Return on equity for this organization
was 18.9 in year 11 which is decent and it also saw a growth in the REO as it increased to 23.1
and 23.7 in the upcoming years. The investors focus on the Return on Equity because it can
influence their decision on an investment,
Stock Price :
The stock price of this organization increased gradually every year as it was 22.68 in year
11, turning into 51.01 and 79.85 in the upcoming years. This indicates the price of the company
in the terms of a share. The higher the stock value higher is the net worth of the company. The
investors of the company are the most interested individuals in this information (Grant, Hodge
and Sinha, 2018).
Credit rating :
The credit rating of this company has also increased from A- to A+ in the span of 3 years.
Higher the grade of credit rating indicates its ability to repay on the basis of its income and past

repayment histories. Improved Credit rating of an organization is able to provide in scope for the
receiving loans and advances from banks for the development of their business.
Wholesale Segment
Wholesale is the business activity of selling products in bulk to another retailer generally
in a discounted price. Some companies sell their products in different prices in the different
locations. From the given table it can be understood that in North America the wholesale price of
the product has increased the most compared to the other places. The lowest change in the
wholesale prices have been noticed in Europe and Africa where the prices have changed from
$53 to $63. These changes in the effects can be due to multiple reasons. This can be due to the
increase or decrease in inflation in these countries, changes in the marketing strategy and
changes in the marketing trend which can influence the demand of the product in a particular
location. For the places where this organization is struggling it can offer special prices to the
retailers, it can provide credit services to the retailers and creation of compelling eye-catching
campaigns can also help the organization (Marques, Simões and Pinto, 2018).
Market share
Market share for an organization represents the percentage of an industry which the
company holds, it can be the market's total sales which is earned by a particular company over a
given time period (Ankam and Bouguila, 2019). For the calculation of the market share the sales
for the given period is divided by the total sales of that given industry for the same period. Due
to the good standards which were maintained by this organization in Year 12. This happened as
all the factors like EPS, stock price, ROE and credit rating all these were successful in their
growth. These factors influenced the organization to improve its market share in this given year.
The result of the continuous success in the year 12 showed its results on the year 13 market
share. The average market share of the company was 2050.5. It performed better in all the
markets. Specially in North America and Asia pacific the market share has increased the most.
However, the market share in North America was already 1997 in year 10. Whereas, in Asia
Pacific the market share was 1275 in the year 10 which has not developed into 2062. This is 787
increase in the market share which denotes that the organization is utilizing new technologies for
bringing innovation in its operations due to which the business is having a competitive upper
hand. It can also be an implementation of a marketing strategy that has worked very well for the
organization increasing its market share so much.

REFERENCES
Books and Journals
Ankam, D. and Bouguila, N., 2019, May. Generalized Dirichlet Regression and other
Compositional Models with Application to Market-share Data Mining of Information
Technology Companies. In ICEIS (1) (pp. 158-166).
Glaser, M., Iliewa, Z. and Weber, M., 2019. Thinking about prices versus thinking about returns
in financial markets. The Journal of Finance. 74(6). pp.2997-3039.
Grant, S.M., Hodge, F.D. and Sinha, R.K., 2018. How disclosure medium affects investor
reactions to CEO bragging, modesty, and humblebragging. Accounting,
Organizations and Society. 68. pp.118-134.
Marques, R.C., Simões, P. and Pinto, F.S., 2018. Tariff regulation in the waste sector: An
unavoidable future. Waste management. 78. pp.292-300.