Question

This question refers to BSG-Online (business strategy game). Why are the following items listed below important? Please explain.

Lessons Learned

-Producing in regions with higher profit margins

-offering labor compensation rates

-manage capacity well

-do not purchase capacity in Europe-Asia region

-win private label

-change strategies when the market is saturated with the same strategy.

Answer 1

Producing in regions with higher profit margins- This may help to reduce my cost, may because the government norms in the region are suitable or access to required natural resource is easier and cheaper or may be labour is cheap.
there could be n possible reasons
but it is also necessary to look at transportation facilities from that region to our selling market, will you be able to leverage from such region, etc.


Compensation is a vital part of human resource management, which helps in encouraging the employees and improving organizational effectiveness. ... Compensation packages with good pay and advantages can help attract and retain the best employees.
Compensation may include hourly wages or an annual salary, plus bonus payments, incentives and benefits, such as group health care coverage, short-term disability insurance and contributions to a retirement savings account. A total compensation package can have several components.
Some types of compensations are:

• Base Pay.
• Commissions.
• Overtime Pay.
• Bonuses, Profit Sharing, Merit Pay.
• Stock Options.
• Travel/Meal/Housing Allowance.
• Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...

Managing capacity well:

So, why do you need capacity management?

In smaller organisations, IT systems are usually well understood and it is relatively easy to “buy” your way out of trouble by purchasing additional hardware at a low cost. However, as businesses grow, two things tend to happen; firstly, the IT systems start to get much larger and it is no longer “cheap” or easy to add new hardware, and secondly, the IT systems become much more complicated and inter-connected making it far more difficult to understand and predict the impact that a change to one system will have on other systems.

Essentially, if you are a relatively large organisation and/or one that is heavily reliant on IT, then you’re likely to find that you need well-defined capacity management processes.

When considering implementing capacity management into your organisation, it’s important to have an overall understanding of the different focus areas, before delving into the specific methodologies. Often, this implementation is modular in approach, and covers the following:

Capacity management consultancy

This will often encapsulate the processes and procedures required to successfully implement capacity management within any IT infrastructure; the best methods are technology independent and enable the quickest possible development of end-to-end performance and capacity management, tailored to meet each organisation’s requirements.

Performance management

Incorporating performance management into your organisation’s IT operations is often a tactical process, which enables you to manage workloads or applications on day to day basis, ultimately allowing you to achieve service and throughput requirements in a timely and cost-effective manner.

I think of all the mentioned options this is one of the most important options.


The term private label can be defined as products marketed by retailers and other members of the distribution chain. Private Label is any brand that is owned by the retailer or the distributor and is sold only in its own outlets. They are also called in-store brands.

So private labels is useful from marketing point of view.
For example, Tesco sell ordinary branded items, such as Heinz baked beans, but also sell their own 'Tesco Value' baked beans.
If the retailer chain is strong then winning a private label is very successful thing

Even if you are in the market with strategies with same as yours you need to move one step ahead
At such time you need to include or remove or move to some new game ball. have a change in your strategies

If you are working in technological or R&D industry or in an industry were things change continuously then keeping your talented labour with you is very important for that you need to offer compensation to labours with better rates.

Purchasing capacity in Europe and Asia is very contextual, it really depends on it.
What industry, how many players that role geography has to play here, etc.