BSG Final Exam Questions with
Complete Solutions12
The benefits of pursuing a strategy of social responsibility and corporate citizenship include: -
ANSWERS-The positive impact that such a strategy has on the company's image rating, provided
the company spends a meaningful amount on socially responsible activities and such spending
is sustained over a multi-year period.
If a company's managers If a company's manager wants to succeed in creating a differentiation
based on competitive advantage (and a potential cost advantage in achieving this
differentiation) that is difficult for rivals to quickly or easily copy (because every strategy move a
company makes to outcompete rivals and gain a competitive advantage is not apparent from
information contained in the FIR and the competitive intelligence report), then manages have to
- ANSWERS-do a better job than rivals in identifying and implementing ways to become very
cost efficient in producing and marketing 350 to 500 models/styles of branded footwear that
also have the highest S/Q rating in the industry.
Valid reasons to consider building a new plant in Latin America include - ANSWERS-lower tariff
on footwear sales in LA (because no import tariffs are paid on footwear produced at the LA
plant and shipped to the distribution warehouse in LA)
A company stands a better chance of achieving cost-based competitive advantage over rivals if
its managers - ANSWERS-pursue a number of cost-reducing initiatives that can be concealed
from rivals (because such initiatives are not part of the information contained in the FIR and
Competitive Intelligence Reports)
- are successful in identifying what actions promote greater cost efficiency across all aspects of
company operations and in actually achieving the cost-reducing opportunity without
overspending to do so, while many rivals also striving to win a low-cost advantage fall short in
their efforts to achieve matching cost reductions.
, Which of the following does NOT help a company's social responsibility strategy results in a
higher image rating - ANSWERS-spending additional money on celebrity endorsements and
advertising to help inform the general public about the company's good deeds in being a good
corporate citizen and its socially responsible activities
- reducing the prices the company charges its customers for branded footwear
Some social responsibility and citizenship actions have a bigger positive impact on your
company's Image Rating than do others. - ANSWERS-The biggest impacts relate to "green"
footwear materials and
charitable contributions, not so much because they are "more important" than the other four as
because
they are more visible to the public (and can entail bigger dollar expenditures).
It makes good economic sense for company managers to consider investing $3.5 mil /mil pairs
of capacity for a plant facilities upgrade that will boost labor productivity by 25% - ANSWERS-At
plant that currently has labor productivity of 3,200 pairs/worker and total employee
compensation of $20,000 annually because the upgrade will cause labor costs/pair produced to
decline from $6.25 to $5.00
Labor costs/pair = 20,000/3,200 = $6.25
After increase in productivity = 20,000/(3,200*1.25) = $5.00
Reduction = $1.25
- boost at a plant where $18,000 for 3,000 pairs vs. $4,000 for same 3,000.
which of the following combination of actions will likely provide the biggest competitive
benefits in helping a company achieve a differentiation-based competitive advantage over many
of its rivals - ANSWERS-Offering 400 or more models/styles to buyers in all four geographic
regions, maintaining a celebrity appeal rating of 200 or higher in all four geographic regions,
selling branded footwear 7 star or higher S/Q in all 4 regions, rebate $9 in all 4 regions.
It is both reasonable and wise for a company to consider shifting away from pursuit of a strategy
to strongly differentiate its branded footwear from the offering of rival companies and sell its
Complete Solutions12
The benefits of pursuing a strategy of social responsibility and corporate citizenship include: -
ANSWERS-The positive impact that such a strategy has on the company's image rating, provided
the company spends a meaningful amount on socially responsible activities and such spending
is sustained over a multi-year period.
If a company's managers If a company's manager wants to succeed in creating a differentiation
based on competitive advantage (and a potential cost advantage in achieving this
differentiation) that is difficult for rivals to quickly or easily copy (because every strategy move a
company makes to outcompete rivals and gain a competitive advantage is not apparent from
information contained in the FIR and the competitive intelligence report), then manages have to
- ANSWERS-do a better job than rivals in identifying and implementing ways to become very
cost efficient in producing and marketing 350 to 500 models/styles of branded footwear that
also have the highest S/Q rating in the industry.
Valid reasons to consider building a new plant in Latin America include - ANSWERS-lower tariff
on footwear sales in LA (because no import tariffs are paid on footwear produced at the LA
plant and shipped to the distribution warehouse in LA)
A company stands a better chance of achieving cost-based competitive advantage over rivals if
its managers - ANSWERS-pursue a number of cost-reducing initiatives that can be concealed
from rivals (because such initiatives are not part of the information contained in the FIR and
Competitive Intelligence Reports)
- are successful in identifying what actions promote greater cost efficiency across all aspects of
company operations and in actually achieving the cost-reducing opportunity without
overspending to do so, while many rivals also striving to win a low-cost advantage fall short in
their efforts to achieve matching cost reductions.
, Which of the following does NOT help a company's social responsibility strategy results in a
higher image rating - ANSWERS-spending additional money on celebrity endorsements and
advertising to help inform the general public about the company's good deeds in being a good
corporate citizen and its socially responsible activities
- reducing the prices the company charges its customers for branded footwear
Some social responsibility and citizenship actions have a bigger positive impact on your
company's Image Rating than do others. - ANSWERS-The biggest impacts relate to "green"
footwear materials and
charitable contributions, not so much because they are "more important" than the other four as
because
they are more visible to the public (and can entail bigger dollar expenditures).
It makes good economic sense for company managers to consider investing $3.5 mil /mil pairs
of capacity for a plant facilities upgrade that will boost labor productivity by 25% - ANSWERS-At
plant that currently has labor productivity of 3,200 pairs/worker and total employee
compensation of $20,000 annually because the upgrade will cause labor costs/pair produced to
decline from $6.25 to $5.00
Labor costs/pair = 20,000/3,200 = $6.25
After increase in productivity = 20,000/(3,200*1.25) = $5.00
Reduction = $1.25
- boost at a plant where $18,000 for 3,000 pairs vs. $4,000 for same 3,000.
which of the following combination of actions will likely provide the biggest competitive
benefits in helping a company achieve a differentiation-based competitive advantage over many
of its rivals - ANSWERS-Offering 400 or more models/styles to buyers in all four geographic
regions, maintaining a celebrity appeal rating of 200 or higher in all four geographic regions,
selling branded footwear 7 star or higher S/Q in all 4 regions, rebate $9 in all 4 regions.
It is both reasonable and wise for a company to consider shifting away from pursuit of a strategy
to strongly differentiate its branded footwear from the offering of rival companies and sell its
