BSG FINAL EXAM COMPREHENSIVE
QUESTIONS & UPDATED ANSWERS
PASSED ALREADY GRADED A+
The benefits of pursuing a strategy of social responsibility and corporate citizenship
include: - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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 - Correct
Answer ✔✔ 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 - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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. - Correct Answer ✔✔ 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% - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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 footwear at a premium price when - Correct Answer ✔✔ a big
percentage of industry rivals are trying to outcompete each other with copycat
differentiation strategies that include high s/q ratings, many models, high celebrity
appeal, and above avg. advertising expenditures.
Which one of the following is NOT of much significance to company managers in
deciding whether profitable opportunity exists to build additional plant capacity in the
upcoming decision round? - Correct Answer ✔✔ Information in the most recent FIR
indicates that more than half of the companies in the industry have expanded their plant
capacity since yr 10
If a company's actual results of revenues, net profits, EPS and ROE turns out to be
worse than projected because competition from rival firms in one or more geographic
regions was stronger than anticipated by company managers. - Correct Answer ✔✔ the
competitive efforts exerted by rival companies to capture sales and market share for
themselves in one or more geographic region proved stronger than company managers
anticipated, given the estimates they entered for the various industry avg. affecting
internet sales and ....
- competition from one or more rivals was stronger than anticipated.....
which of the following are effective ways for managers to try to boost a company's stock
price - Correct Answer ✔✔ increase the company's dividend payment to shareholders
QUESTIONS & UPDATED ANSWERS
PASSED ALREADY GRADED A+
The benefits of pursuing a strategy of social responsibility and corporate citizenship
include: - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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 - Correct
Answer ✔✔ 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 - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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. - Correct Answer ✔✔ 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% - Correct Answer ✔✔ 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 - Correct Answer ✔✔ 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 footwear at a premium price when - Correct Answer ✔✔ a big
percentage of industry rivals are trying to outcompete each other with copycat
differentiation strategies that include high s/q ratings, many models, high celebrity
appeal, and above avg. advertising expenditures.
Which one of the following is NOT of much significance to company managers in
deciding whether profitable opportunity exists to build additional plant capacity in the
upcoming decision round? - Correct Answer ✔✔ Information in the most recent FIR
indicates that more than half of the companies in the industry have expanded their plant
capacity since yr 10
If a company's actual results of revenues, net profits, EPS and ROE turns out to be
worse than projected because competition from rival firms in one or more geographic
regions was stronger than anticipated by company managers. - Correct Answer ✔✔ the
competitive efforts exerted by rival companies to capture sales and market share for
themselves in one or more geographic region proved stronger than company managers
anticipated, given the estimates they entered for the various industry avg. affecting
internet sales and ....
- competition from one or more rivals was stronger than anticipated.....
which of the following are effective ways for managers to try to boost a company's stock
price - Correct Answer ✔✔ increase the company's dividend payment to shareholders
