How To Play

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 01. Overall view of BMG (p.3~7)
02. Action plan | list of items (p.8~9)
03. ① Production(p.10~11)
04. ②Marketing & Sales (p.12~14)
05. ③Accounting & Finance (p.15~17)
06. Management indicators (p.18~20)
07. Appendix

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 01. Overall view of BMG
Maximizing business value through corporate management.

Participants in the Business Management Game (BMG) split into several companies to outperform each other.
Based on the management policy established by the company, various management actions are implemented to
maximize corporate value.

Management Action
examples

4.
1. 2. 3. 5. 6.
Product
Funding Plant construction R&D Advertising Sales-force
manufacturing
recruitment

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 01. Overall view of BMG | Management Period
Players can decide on a company's action plan four times during the year.
Management activities will be implemented over a period of up to five years to maximize the company's
sales and profits.
Year 1 Year 2 Year3

Strategy
meeting. Yea Yea Yea Yea Yea Yea Yea Yea Mid-term
Yea Yea
Management r1 r1 r1 r1 r2 r2 r3 r3 management
r2 r2
Policy Q1 Q2 Q3 Q4 Q3 Q4 Q1 Q2 review
Q1 Q2
Decisions.

Yea Yea Yea Yea Yea Yea Yea Yea Yea Yea
r3 r3 r4 r4 r4 r4 r5 r5 r5 r5 Final
Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 briefing

Year 3 Year 4 Year 5

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 01. Overall view of BMG | Starting Management (start screen)
Discuss and decide with your team what kind of business you want to
run.
A representative of the team should register the information about the
company.
 Company Name
 Management Philosophy
 Management Policy
 Product to sell
 Name of CEO
 Founding members
 LOGO(Symbol) Mark

[ Notice ]The product to sell entered does not affect the management
simulation.For example, if you decide to sell electric bicycles as a product, the
game system does not reflect the general image that electric bicycles are likely to
sell well in a rural city with many hills.

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 01. Overall view of BMG | Screen Interface

(1)Business Management page (2) Management Analysis

(3) Decision Making Page (4) Notifications (5) Company Information

[ Notice ] The BMG operation screen can be accessed by multiple people simultaneously.
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Please be careful not to share the URL with other teams.
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 01. Overall view of BMG | Overall flow

Analysis of your company, Enter the action plan for the Based on each company's action plan,

market and competitors current term Updated financial figures and action results
(Simulation system run)
(@ Management Analysis) (@ Decision Making)
To next Quarter

Competitors also
Enter action plan for the current
term

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 02. Action plan

Players decide each turn on a plan of action involving the three areas, discussing it with their teams.

Area Elements of decision-making

• Constructed 2 factories
Factory Construction
• Produced 200 units of the product
Production
Parts procurement, • Invested 8 million yen in R&D
• Researching market demand
product manufacturing, R&D
• Hired 4 sales representatives

Recruitment of sales staff • Long-term loan of 20 million yen from a

bank
Marketing
Market demand research,
&
advertising and promotion
Sales
Setting prices and
selecting markets to sell in
Interest-bearing debt borrowing,
Accounting
capital increase
&
Finance Buying and selling of securities

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 02. Action plan | list of items
Each item has a set of conditions under which it can be implemented (e.g., amount, timing, etc.).
Take care to plan management activities in a systematic manner.
Action Plan Conditions Year1,Q1 Year1,Q2 Year1,Q3 Year1,Q4 since

Plants built 8 million yen per plant (maximum 10 plants) ● Substantial production and sales activities
Ordering parts and ¥40,000 per component | Production becomes available in
●
begin in the Year1,Q4
components the next period after the order is placed
Year1,Q1 Year1,Q2 Year1,Q3 Year1,Q4
Planned for
Each plant can produce a maximum of 50 products ● operation
production constructio constructio
Plant plan (of
Assignment of Each salesperson will be paid ¥1 million upon hiring and n n
salespeople ¥500,000 for training and fieldwork.
● machine)
Parts and
delivery of
Sales Hiring
Dispatched in the order of "current period/recruitment, next
● compone order
period/training, next period/fieldwork(order fulfillment)" goods
nts
Planned
Avertising ¥200,000 per media per region ●
for productive
next Plan
productio activity
R&D In units of ¥1 million ● n

Selling price \10,000 increments from \160,000 to \200,000 ● Sales accepting

adoption training
people an order
Market research \400,000 per market, \600,000 overall ●

2% interest, repayable in the next term

Short-term debt ●
Can borrow every term. Up to \30 million

3% interest. Up to \30 million [ Notice ] Note the lead time to go live.

Long-term debt Available only at the time of expenditure for the ● • Plant: 3 terms prior to start of operation
construction of the head office and plants • Components : 2 terms prior to start of operation
Special debt 15% interest, up to \50 million ●
• Sales people: 2 terms prior to start of operation
• Production: 1 term before the start of operation
Securities
- ●
purchases

increase of capital Possible when conditions are met. ●

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 03. Action Plan | ① Production
Build the plants needed to manufacture the products, purchase the parts and commodities, and produce the products.Since it
takes a certain period of time to build a plant, order components and goods, and conduct production activities, it is important
to plan for production.
Turn 1 Turn 2 Turn 3 Turn 4
Plants Construction Plants under under operation (of
plan
Construction construction construction machine)
 Construction
Each plant costs ¥8 million and is paid for at the time of construction planning. Parts and
Components
You can build up to 10 plants, with each plant beginning operation three fiscal delivery
Order order
quarters after construction planning. complete
(1 year and 2
 Depreciation terms~)
Each plant has a depreciation period of 20 fiscal quarters, and the depreciation
cost is ¥400,000 per plant each fiscal quarter. Production Plan Next Plan
Production
*Depreciation begins after a plant goes into operation, so a plant planned in Year (1 year and 3 (key: parts and
complete
terms~) materials)
1,Q1 will start depreciating from Year1,Q4.
 Productive capacity

=
Each plant can produce a maximum of 50 products.
Year 1,Q1 Year 1,Q2 Year 1,Q3 Year 1,Q4
Each plant must maintain a minimum of 20% utilization . term term term term
 Fixed production cost Operation
Plants
Fixed production costs (e.g., factory labor costs) are incurred from the time each ✓ (Plan) under construction under construction (production
Construction available)
plant goes into operation.
Number of Number of Delivery
Fixed production cost Fixed production cost Ordering parts ✓ (Purchase
Factories Factories (Accounts
and components Order)
1 1,500 6 8,400 payable)
2 3,000 7 9,500 Planned for
3 4,500 8 10,600 ✓ (Plan) production
production
4 5,800 9 11,700
5 7,100 10 12,800 ✓ Orders received
Sales activities (Accounts
receivable)
Production fixed costs (per period) [Unit:
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 03. Action Plan | ① Production
The manufacture of a product requires the management of components and inventory.
Although there is a possibility of failure, investment can also be made in improving products through R&D.

Parts & Production R&D

 One part is needed to produce one product, and the price of each part  Research and development can be invested in increments of ¥1,000,000
(material cost) is ¥40,000. starting Q1 of FY1.

 If a part is ordered in one quarter, it will be delivered the next quarter, and
the product will be available for production the quarter after.
 Parts become accounts payable at the time of delivery and are paid in the
next quarter.
 The greater the cumulative investment, the greater the probability of
success, and successes in R&D increase the order rate.
*If successful, the accumulated investment returns to zero.
 Successes in R&D may happen more than once, and each time the order
rate will increase.

Stock & Storage charges

 Excess product inventory will incur a warehouse charge

A warehousing fee of \15,000 per unit will be charged for each term of
product inventory in excess of 20 units per factory.
*This charge does not apply to parts and materials.

 If a three-plant operation has an ending product inventory of 70

units,storage charges of ¥150,000 (10 pieces x ¥15,000 = ¥150,000) are
paid for 10 units of excess inventory in excess of 60 units at 3 plants.

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 04. Action Plan | ②Marketing & Sales
Each company competes for market share by selling products in four markets.
Analyze market demand and develop marketing strategies such as pricing and advertising with reference to market
characteristics in order to maximize your sales and profits.
Market Characteristics & Investigation of demand
 Each market has a fixed number of products available for sale, and all teams compete for demand (Varies per quarter and per market.).
 Each market has unique characteristics (Example: Market 2 is susceptible to 〇〇 due to its high cost of living and upscale location.)

Market 1 Market 2 Market 3 Market 4

(Ueno, Ameyoko) (Aoyama, Azabu, Roppongi) (Large cities in rural areas) (Small and medium-sized cities
in rural areas)

 Market research will help determine each market's demand for the next quarter
EX) Investigation of demand
1. research for each market: ¥400,000 / market
2. research on all markets (total demand): ¥600,000

Total
Develop a sales plan for your products by forecasting the market
characteristics and demand of each market. demand
Each quarter

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 04. Action Plan | ②Marketing & Sales
To maximize the number of products sold, "sales staff recruitment and market placement," "advertising," and "product
pricing" will be implemented. Based on the company's own selection, the competition's selection, and market demand, the
number of orders (available for sale) for each company is determined.
Sales people hired and assignment Advertising Pricing
 You need to hire salespeople to sell products and  Advertising in each market will affect the order  The unit price of the product sold can be set between
dispatch them to each market. rate. ¥160,000 and ¥200,000.

 Each salesperson will be paid ¥1 million upon hiring
and ¥500,000 for training and fieldwork.
 Three turns are required to dispatch a salesperson:
current period - recruitment, next period - training,
and period after - fieldwork (order fulfillment).
 Salespeople will resign or retire at a specific rate
between recruitment and beginning actual work.
 Advertising can be conducted in increments of
¥200,000 per market, and the impact of
advertising varies from market to market.
 The maximum number of media that may be
used per region is 5 (¥1,000,000).
 The price can be changed in increments of ¥10,000
each quarter. (If the price for the previous quarter was
¥170,000, you can choose between
¥160,000/¥170,000/¥180,000 for the following
quarter).
 Prices will be the same in all markets, and the order
rate will be affected based on market characteristics
and competitor pricing.

 Once a year, the status of sales staffing in each

market is visualized.

Turn 1 Turn 2 Turn 3

Recruitment of Operation (of
Recruiting Training
sales people machine)

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 04. Action plan | Flow of ① to ②
Decision-making for the
Decisions for the current term next term

Sales when
Product Activities product is in stock

Each company's
financial
Marketing statements are
Determination of
& own order quantity
updated and
Sales Activities moved to the next
term
*The number of orders is
determined based on the decision- * Products sold x selling price is
making of your company and your If insufficient recorded as accounts receivable
competitors. and paid in the next term.
inventory is
Competitor Behavior available, order
backlog goes to
the next term

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 05. Action plan | ③Accounting & Finance
Players need to manage their company while keeping track of their financial situation.
Revise management policies by analyzing balance sheets (B/S), profit and loss statements (P/L), cash flow statements, Aim
to maximize your company's corporate value.

Balance Sheet (B/S) Profit and loss statements (P/L)

Statements of Cash Flows

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 05. Action plan | ③Accounting & Finance
Players need to raise funds to run their own businesses by borrowing or raising capital.
Calculate the funds required for manufacturing and sales activities and manage cash flow appropriately.
Capital & Shares Short-term debt
 Q1 of FY1 starts with capital of ¥50 million (1,000 shares)  Funds necessary for business activities can be borrowed from financial institutions.
 The share price starts at ¥50,000 and ranges from ¥50,000 to ¥250,000 *Short-term debt is always repaid in the following quarter.
depending on the company's performance.  The limit is ¥30 million, with mandatory repayment in the next quarter.Repeated
(When accumulated profit is positive, the share price is determined by borrowing is possible after repayment.
income before income taxes and the number of shares issued)  The interest rate is 2% per quarter, with interest paid at the time of repayment.

Head office established Long-term debt

 20 million must be paid for head office equipment in Year1,Q1.
 The amortization period is 40 terms, with \500,000 being amortized each term
beginning with the Year1,Q1.
Increase of capital
 Long-term debt is available up to ¥30 million at an interest rate of 3% per quarter.
 Long-term debt is available only at the time of expenditure for the construction of the head
office and plants, and the principal is repaid in equal installments over 10 quarters starting
from the next quarter.
 The interest rate is 3% per quarter, with interest paid at the time of repayment.

The following three conditions must be met for a capital increase. Cash will be Borrowing Borrowing 2 Borrowing 3 Borrowing 4 Borrowing 5
period 1 Fiscal Period Fiscal Years Fiscal Period Fiscal Years
credited in the current quarter (100 or 200 shares). Amount borrowed 30,000 0 0 0 0
1. profit before tax in the previous quarter must be positive . Repayment amount 0 3,000 3,000 3,000 3,000
2. cumulative profits are positive . Remaining amount 30,000 27,000 24,000 21,000 18,000
Interest payments 900 810 720 630
3. one year has passed since the last capital increase. (if the company Borrowing capacity 3,000 6,000 22,000 23,000
increased its capital in Q1 FY2, it could increase it again in Q1 FY3.) (Thousand yen)
If the share price is above ¥50,000, the par value (¥50,000) is credited to capital
and the surplus is credited to capital reserve. Special debt
The amount that can be raised through a capital increase is calculated based on the  Special debt may be used for business emergencies.
share price of the following term.  The limit is ¥50 million, with mandatory repayment in the next quarter.
 The interest rate is 15% per quarter, with interest paid at the time of repayment. 16
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 05. Action plan | ③Accounting & Finance
Corporate income taxes and dividend payments may be due based on the business status of the company.
If the cash balance becomes negative, orders for the next fiscal year will be halved.
If the company becomes insolvent, it will go bankrupt.

Securities purchases Shortage of funds (Penalty incurred)

 Your company can purchase securities and earn a profit on their sale.  A temporary cash shortfall in the middle of a run (cash < 0) will result in a
*Image of government bonds, equities, etc. penalty that halves the next quarter's orders.
 Purchased securities are automatically sold in the following period but may  Implement cash management by carefully calculating cash-in and cash-out
drop in value depending on market conditions. for the following fiscal year when implementing decisions each fiscal year.

Corporation tax Bankruptcy (End of business)

 If accumulated profit is positive & current ordinary profit is positive,
income tax of 40% of profit per term will be charged.
 Income taxes are paid in cash in the next term.
Dividend
If accumulated profit is positive & current ordinary profit is positive &
dividend funds are available, a dividend of 1,250 yen per share will be paid.
If in the course of operations the company runs short of funds, the
maximum borrowing limit is reached, and cash is negative even after
collecting the balance of accounts receivable, the operation of the
relevant company is terminated at that point. The company is
considered bankrupt.

Dividends are paid in cash in the next term.

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 06. Management indicators
The following management indicators are output twice, once in the middle of the games and once at the end of the games. Determine your
management policy by referring to the financial statements and management indicators of each company and analyzing your company's
business situation and the trends of other companies.
indicator Calculation Method

Return on equity (ROE) (%) Last Quarter Total Current Term After-tax Profit (Net Profit) ÷ Last Quarter Net Worth

Last Quarter Total Current Term After-tax Profit (Net Profit) ÷ Total Assets (Total Capital and
Return on assets (ROA) (%)
Investment Liabilities)
Profitability
EPS (yen) Last Quarter Total Current Term After-tax Profit (Net Profit) ÷ Last Quarter Number of Shares

Return on invested capital (ROIC) (Operating Profit × (1 - Effective Tax Rate)) ÷ (Capital + Liabilities)
(%) *Effective Tax Rate = 23.20%

Total sales (yen) Total Sales from Q1 of Year 1 to Last Quarter

Total operating income (yen) Total Operating Profit from Q1 of Year 1 to Last Quarter

Sales to Operating Profit Ratio (%) Total Operating Profit ÷ Total Sales

Total Current Term After-tax Profit

Profitability (¥)
Total Current Term After-tax Profit from Q1 of Year 1 to Last Quarter

Sales to After-tax Profit Ratio (%) Total After-tax Profit ÷ Total Sales × 100

Ratio of R&D to sales (%) Total R&D Costs ÷ Total Sales × 100

Sales per person(yen) Lifetime Average Sales per Salesman

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 06. Management indicators
indicator Calculation Method

Sales share (%) Ratio of Last Quarter Sales to Overall Total Sales

Sales ratio (times) Total Sales for Final 4 Quarters ÷ Total Sales for First 4 Quarters (Q4 of Year 1 – Q3 of Year 2)

Total Operating Profit for Final 4 Quarters ÷ Total Operating Profit for First 4 Quarters (Q4 of Year
Operating Profit Ratio (Ratio)
1 – Q3 of Year 2)

Total equity Last Quarter Total Capital

Growth potential Share of total asset (%) Ratio of Last Quarter Total Capital to Overall Total Capital

Gross capitalization ratio Total Capital for Final 4 Quarters ÷ Total Capital for First 4 Quarters

Total output(pcs) Total Production Volume from Q4 of Year 1 to Last Quarter

Total order volume(pcs) Total Order Volume from Q4 of Year 1 to Last Quarter

Total sales volume(pcs) Total Sales Volume from Q4 of Year 1 to Last Quarter

Total Asset Turnover Ratio (Ratio) Annual Sales (Last Quarter Sales × 4) ÷ Total Capital (Total Capital and Liabilities)

Asset turnover(Ratio) Annual Sales ÷ Total Capital

Efficiency
Inventory turnover period (Product Inventory + Parts Inventory) ÷ Daily Sales (Last Quarter Sales ÷ 90)

Average plant utilization (%) Factory Operation Rate from Q1 of Year 1 to Last Quarter

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 06. Management indicators
indicator Calculation Method

Average share price(yen) Lifetime Average Share Price

Corporate tax paid(yen) Total Corporate Tax Paid (Total up to Last Quarter)

Total amount of dividends(yen) Total Dividends (Total up to Last Quarter)

Dividend payout ratio(%) Total Dividends ÷ Total Current Term After-tax Profit × 100

Capital
Own capital ratio (%) Last Quarter Total Capital ÷ Last Quarter Total Capital and Liabilities × 100
Policy/Safety
((Last Quarter Short-term Debt Balance + Long-term Debt Balance + Special Debt Balance - Last
DE Ratio (%)
Quarter Cash on Hand) ÷ (Last Quarter Total Capital) × 100

Liquidity Ratio (%) Last Quarter Liquid Assets ÷ Last Quarter Current Liabilities × 100

Fixed Ratio (%) Last Quarter Fixed Assets ÷ Last Quarter Total Capital × 100

Financial leverage Last Quarter Total Assets ÷ Last Quarter Total Capital

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 07. Appendix | Frequently Asked Questions
Q: Do the products you sell affect the orders you receive?
A: The products for sale selected by the team do not affect the status of orders in the game.

Q: Can't I open the balance sheet (B/S) and profit and loss statement (P/L) at the same time?
A: You can check by opening the same URL in your browser at the same time.

Q: What is order backlog?

A: This is the remainder of orders that could not be sold due to insufficient product inventory.

Q: How much of the order backlog, if any, will remain?

: Backlogs of orders are carried over to the next period. If there is an order backlog, products will be sold first from the order backlog.

Q If I sell the rest of my order, when will the selling price be the price determined?
A: The product will be sold at the price specified at the time of order placement.

Q: Under the terms of the capital increase, there must be an interval of one year after the initial capital increase, but specifically, after how many fiscal
years is this possible?
A: If a capital increase is conducted in the Year2,Q1, the next capital increase can be conducted in the Year3,Q2.

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