Glo Bus Camera Game: Strategies For Focused Success

Glo-Bus is an online business strategy simulation game where teams of students run a digital camera company, competing against companies run by other classmates. The aim is to craft and execute a competitive strategy that results in a respected brand image, keeps the company in contention for global market leadership, and produces good financial performance.

Company co-managers must make decisions relating to R&D, component usage, camera performance, product line breadth, production operations, workforce compensation, outsourcing, pricing, sales and marketing, finance, and corporate citizenship and social responsibility.

Performance is evaluated based on financial and shareholder-focused metrics like earnings per share, return on investment, stock price appreciation, and credit rating.

R&D, component usage, and camera performance

In the Glo-Bus game, participants manage a digital camera company, making decisions relating to R&D, component usage, and camera performance, among other areas. Here are some detailed tips and strategies for these three aspects of the game:

R&D

R&D (research and development) is crucial for developing new camera models and improving existing ones. Here are some things to consider:

• Invest in R&D to create innovative, high-quality camera models that meet customer needs and expectations.
• Focus on R&D for multi-feature cameras, as companies like Innova have found success by offering the best quality through this approach.
• Strike a balance between R&D spending and other financial priorities to ensure the company's financial health.

Component Usage

Effective component usage is essential for producing high-quality cameras and managing costs. Here are some strategies:

• Source high-quality components that enhance camera performance and durability.
• Negotiate favourable deals with suppliers to obtain components at competitive prices.
• Optimise your supply chain to ensure a consistent supply of components and minimise disruptions.

Camera Performance

Camera performance is critical for customer satisfaction and brand reputation. Here are some tips:

• Continuously test and improve camera performance, including image quality, speed, and durability.
• Set performance standards and targets for your camera models to ensure they meet or exceed customer expectations.
• Compare your camera performance with competitors to identify areas for improvement and differentiate your products.

Remember, in the Glo-Bus game, the goal is to craft and execute a competitive strategy. By focusing on R&D, component usage, and camera performance, you can develop innovative, high-quality cameras that deliver exceptional performance and enhance your brand's reputation.

Production operations, work force compensation, and outsourcing

In the GLO-BUS business strategy simulation game, participants are tasked with running a digital camera company in direct competition with other players. To succeed, they must make effective decisions relating to production operations, workforce compensation, and outsourcing, among other areas.

Production Operations

Production operations encompass the processes involved in manufacturing digital cameras. This includes decisions about research and development (R&D), component usage, and camera performance. Companies must determine the right balance between investing in R&D to enhance camera performance and manage component usage to control costs. Optimising production operations is crucial to ensure efficient manufacturing processes and high-quality products.

Workforce Compensation

Workforce compensation refers to the remuneration provided to employees, including salaries, wages, and benefits. Companies must decide on a competitive compensation strategy to attract and retain talented employees. This involves considering factors such as the market rate for similar roles, the skills and experience required for the job, and the overall financial health of the company. Offering competitive salaries and benefits can help boost employee satisfaction, retention, and overall productivity.

Outsourcing

Outsourcing is the practice of contracting external parties to perform specific business functions or operations. In the context of GLO-BUS, companies can choose to outsource certain aspects of production, such as manufacturing or assembly, to third-party vendors. Outsourcing can provide benefits such as cost reduction, increased flexibility, and access to specialised skills or resources. However, it is essential to carefully evaluate potential vendors, manage communication and expectations, and maintain control over quality and timelines.

By effectively managing production operations, workforce compensation, and outsourcing, participants in the GLO-BUS simulation can develop a robust and responsive business strategy. These decisions have a direct impact on the company's performance, brand image, and overall success in the competitive digital camera market.

Pricing, sales, and marketing

Pricing

When it comes to pricing, players must consider the competitiveness of their product offering. A company's price in a region is considered more competitive the lower it is compared to the regional average price of all companies. Pricing is one of the 11 factors that determine a company's unit sales and market share in the wearable camera segment.

Sales

Sales are influenced by the overall competitiveness of a company's product offering in a given region. This includes factors such as price, product performance, quality, advertising, warranties, and brand image. The greater the differences in overall competitiveness between rival companies, the bigger the differences in their resulting sales volumes and market shares.

Marketing

Marketing is crucial for creating a respected brand image and achieving global market leadership. Companies with more attractive pricing, greater advertising, and a wider selection of models tend to perform better in the game.

Players must make strategic decisions about pricing and marketing, considering the impact on their sales and market share. They should aim to craft a competitive strategy that results in a strong brand image, keeps them in contention for global market leadership, and produces good financial performance.

Corporate citizenship and social responsibility

In the Glo-Bus game, participants are tasked with managing a digital camera company, making decisions that cover various business functions, including corporate citizenship and social responsibility.

Corporate citizenship refers to the degree to which a company is engaged in the community and acts in the best interests of society. This involves going beyond compliance with laws and regulations and actively contributing to the betterment of society. In the context of Glo-Bus, this could mean investing in community development initiatives, promoting ethical business practices, and ensuring that the company's operations do not negatively impact the well-being of the communities in which it operates.

Social responsibility, on the other hand, encompasses the economic, legal, ethical, and philanthropic responsibilities of an organization. In the game, this could involve ensuring fair labour practices, minimizing negative environmental impacts, and contributing to social causes relevant to the company's stakeholders.

To excel in the area of corporate citizenship and social responsibility within the Glo-Bus game, participants should consider the following strategies:

• Community Engagement: Involve your company in initiatives that positively impact the communities where you operate. This could include sponsoring local events, supporting charities, or developing programs that address social issues such as education, health, or environmental sustainability.
• Ethical Business Practices: Ensure that your company upholds the highest standards of ethical behaviour. This includes fair pricing, honest marketing, respect for human rights, and compliance with all relevant laws and regulations.
• Environmental Sustainability: Minimize the environmental impact of your company's operations. This could involve implementing recycling programs, reducing waste, or investing in renewable energy sources.
• Social Causes: Identify social issues that are relevant to your stakeholders and contribute to them. For example, you could support programs that promote diversity and inclusion, address income inequality, or provide access to education and training for underserved communities.
• Stakeholder Engagement: Actively engage with your stakeholders, including employees, customers, investors, and community members. Seek their input on social responsibility initiatives and incorporate their feedback into your strategies.

By incorporating these strategies into your decision-making process, you can enhance your company's reputation, build stronger relationships with stakeholders, and contribute to the betterment of society, all while competing in the dynamic environment of the Glo-Bus game.

Financial performance

GLO-BUS is a competitive business strategy game that focuses on financial performance and shareholder-focused metrics. The aim is to craft and execute a strategy that delivers good financial performance, as measured by earnings per share (EPS), return on investment (ROI), stock price appreciation, and credit rating.

Earnings Per Share (EPS)

EPS is defined as net income divided by the number of shares of stock issued to stockholders. Higher EPS values indicate that the company is earning more net income per share of stock. As EPS is one of the five performance measures, it should be monitored regularly, and actions should be taken to boost it. This can be done by raising net income or repurchasing shares of stock to reduce the number of shares held by shareholders.

Return On Equity (ROE)

ROE is net income or net profit divided by total shareholders' equity investment. Higher ROE ratios indicate the company is earning more profit per dollar of equity capital provided by shareholders. As with EPS, ROE is one of the five key performance measures, so actions should be taken to boost it. This can be done by increasing net profits or repurchasing shares of stock to reduce shareholder equity investment.

Operating Profit Margin

This is a measure of operating profits divided by net revenues. A higher operating profit margin is a sign of competitive strength and cost competitiveness, as it indicates a larger percentage of operating profit relative to net revenues.

Net Profit Margin

Net profit margin is net income divided by net revenues. A larger net profit margin indicates better profitability, as it means a higher percentage of net revenues are profits.

Operating Ratios

These ratios indicate which companies are most cost-efficient. Generally, lower percentages of total production costs, delivery costs, marketing costs, and administrative costs relative to net revenues are preferable, as they signal a larger percentage of the sales price is available to cover other costs and contribute to profit.

Liquidity Ratio

The current ratio is a measure of a company's ability to pay its current liabilities. A current ratio of 1.5 to 2.5 provides a healthy cushion, while a ratio of 5.0 to 10.0 is even better.

Dividend Ratios

The dividend yield shows the return a shareholder will receive on their investment if they purchase shares at the current stock price. A dividend yield of over 5% is considered high and attractive to investors.

The dividend payout ratio is the percentage of earnings paid out to shareholders in dividends. Generally, this should be less than 75% of EPS, and if it exceeds 100% for a prolonged period, a dividend cut should be considered.

Credit Rating Ratios

There are four factors that determine a company's credit rating:

• Debt-equity ratio: Indicates the extent to which the company's capital is supplied by creditors or shareholders. A ratio of 0.10 is considered good and will achieve an A+ credit rating.
• Times-interest-earned ratio: Measures the safety margin that creditors have in assuring that company profits are sufficient to cover interest payments. A ratio of 5.0 to 10.0 is considered more satisfactory due to earnings volatility and competitive pressures.
• Debt payback capability: Measures the number of years it will take to pay off the company's outstanding loans based on free cash flow. A shorter debt payback period is a stronger sign of creditworthiness.
• Line of credit usage: Companies that utilize a small percentage of their credit lines are viewed as good credit risks. Using over 80% of the credit line may call the company's creditworthiness into question.

Frequently asked questions