BSG COMPREHENSIVE TEST PAPER FALL
2026 120 QUESTIONS WITH ACCURATE
ANSWERS VERIFIED UPDATED REVIEW 26
PAGES
⩥If a company's managers want to succeed in creating a differentiation-
based competitive advantage (And a potential cost advantage in
achieving the differentiation) that is difficult for rivals to quickly or
easily copy (because every strategic 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 the managers have to. Answer: · Do a better job then rivals
in identifying and implementing ways to become very cost-efficient in
producing and marketing 350-500 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. Answer: · Low tariff costs on footwear sales in Latin America
(because no import tariffs are paid on footwear produced at the Latin
American plant and shipped to the distribution warehouses in Latin
America)
⩥A company stands a better chance of achieving a sustainable cost-
based competitive advantage over rivals if its managers. 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 the competitive intelligence report)
⩥Which of the following actions does not help a company's social
responsibility strategy result in a higher image rating?. Answer: ·
Reducing the prices, the company charges its customers for branded
footwear
⩥What does help a company's social responsibility strategy and results
in a higher image rating. Answer: · Using environmentally friendly or
'Green' materials in producing footwear at the company's plants
· Using recycled packaging materials to box each pair of athletic
footwear at the company's distribution centers
· Making donations to charities and charitable causes
· Investing to improve energy efficiency and the use of renewable
sources at company facilities.
⩥It makes good economic sense for company managers to consider
investing $3.5 million per million pairs of capacity for a plant facilities
upgrade that will boost labor productivity by 25%.. Answer: · At a plant
that currently has labor productivity of 3,200 pairs per worker and total
, employee compensation of $20,000 annually because the upgrade will
cause labor costs per pair produced to decline from $6.25 to $5.00
o Labor cost per pair = Compensation/Productivity
o Labor cost per pair initially = 20,000/3,200 = $6.25
o After increase in productivity = 20,000/ (3,200*1.25) = $5.00
o Reduction = 6.25 * 5.00 = $1.25
⩥Which of the following combinations of actions will likely provide the
biggest competitive benefits in helping a company achieve a
differentiation-based competitive advantage over some/many of its
rivals?. 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 with a 7-
star or higher S/Q rating in all four geographic regions, and offering a
rebate of $9 in all four geographic 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 offerings of rival companies and sell its footwear at a premium
price when. Answer: · A big percentage of industry rivals are trying to
outcompete each other with copycat differentiation strategies that
2026 120 QUESTIONS WITH ACCURATE
ANSWERS VERIFIED UPDATED REVIEW 26
PAGES
⩥If a company's managers want to succeed in creating a differentiation-
based competitive advantage (And a potential cost advantage in
achieving the differentiation) that is difficult for rivals to quickly or
easily copy (because every strategic 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 the managers have to. Answer: · Do a better job then rivals
in identifying and implementing ways to become very cost-efficient in
producing and marketing 350-500 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. Answer: · Low tariff costs on footwear sales in Latin America
(because no import tariffs are paid on footwear produced at the Latin
American plant and shipped to the distribution warehouses in Latin
America)
⩥A company stands a better chance of achieving a sustainable cost-
based competitive advantage over rivals if its managers. 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 the competitive intelligence report)
⩥Which of the following actions does not help a company's social
responsibility strategy result in a higher image rating?. Answer: ·
Reducing the prices, the company charges its customers for branded
footwear
⩥What does help a company's social responsibility strategy and results
in a higher image rating. Answer: · Using environmentally friendly or
'Green' materials in producing footwear at the company's plants
· Using recycled packaging materials to box each pair of athletic
footwear at the company's distribution centers
· Making donations to charities and charitable causes
· Investing to improve energy efficiency and the use of renewable
sources at company facilities.
⩥It makes good economic sense for company managers to consider
investing $3.5 million per million pairs of capacity for a plant facilities
upgrade that will boost labor productivity by 25%.. Answer: · At a plant
that currently has labor productivity of 3,200 pairs per worker and total
, employee compensation of $20,000 annually because the upgrade will
cause labor costs per pair produced to decline from $6.25 to $5.00
o Labor cost per pair = Compensation/Productivity
o Labor cost per pair initially = 20,000/3,200 = $6.25
o After increase in productivity = 20,000/ (3,200*1.25) = $5.00
o Reduction = 6.25 * 5.00 = $1.25
⩥Which of the following combinations of actions will likely provide the
biggest competitive benefits in helping a company achieve a
differentiation-based competitive advantage over some/many of its
rivals?. 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 with a 7-
star or higher S/Q rating in all four geographic regions, and offering a
rebate of $9 in all four geographic 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 offerings of rival companies and sell its footwear at a premium
price when. Answer: · A big percentage of industry rivals are trying to
outcompete each other with copycat differentiation strategies that
