BSG COMPREHENSIVE EXAM WITH
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
Which of the following options is usually an appealing way
to try to increase a company's ROE? - ANSWERS-· Pursuing
actions to boost the company's total profits and maintaining
a high (above 75% payout ratio
Which of the following results from the latest decision
round are least important in providing guidance to company
managers in making their strategic moves and decision to
improve their company's competiveness and ranking among
the top-performing companies in the upcoming decision
round? - ANSWERS-· The dividend data, the credit rating
data, the income statement data, and the balance sheet
data for each company that are part of the Financial
Performance Summary on p. 5 of the FIR
Managers are well-advised to consider whether the
company can operate more profitably by selling some/all
,plant capacity in one or more geographic regions where -
ANSWERS-· Global demand for branded and private-label
footwear is so fare below global plant capacity that it will be
impossible for most all companies to profitably operate
their plants at full capacity for many years to come.
A company cannot effectively differentiate its branded
footwear from the brands of rivals by - ANSWERS-· Spending
more money on corporate social responsibility and
citizenship activities than most all other rivals
If a company has an unappealing low branded market share
in north America because it is being outcompeted by
various rival companies, then company manager should -
ANSWERS-· Immediately review the company's competitive
weaknesses in north America as shown at the bottom of the
competitive intelligence report and explore the merits of
action to correct most or all of them: in addition, they
should take actions that they believe will result in the
company having at least two important competitive
strengths vis-à-vis its north American rivals in the upcoming
decision round
Flawed ways to pursue a differentiation strategy include -
ANSWERS-· Striving only to achieve weak differentiation (as
,opposed to strong differentiation) from the branded
footwear offerings of other companies also pursuing a
differentiation strategy
A company's strategy to be a low-cost provider of branded
footwear can fail to produce good company performance
when - ANSWERS-· Managers do not operate the company's
plants cost efficiently and achieve manufacturing costs per
branded pair sold that is no equal to the industry low in
each geographic region are at least close to the industry low
in each geographic region
In which one of the following instances do the industry low,
industry average, and industry high values for the cost
benchmarking data in each issue of the FIR signal that one
or more elements of a company's costs are likely to be too
high relative to those of rival companies? - ANSWERS-·
When the company's operating profit per pair sold in the
internet and wholesale segments are the lowest in the
industry of all four geographic regions
Which of the following action sis unlikely to help boost a
company's market share in all four geographic regions? -
ANSWERS-· Pursuing efforts to boost labor productivity at
each of the company's plants.
, Which of the following actions is LEAST likely to increase
labor productivity by an amount that is large enough to
result in lower labor costs per pair produced at a particular
plant? - ANSWERS-· Increasing worker base pay by the
allowed maximum of 15% each and every year until the
company's base pay compensation per employee exceeds
the total compensation per employee ($/year) of all other
companies in the industry
The plant upgrade option that reduces production run setup
costs by 50% each year and costs $8 million per million pairs
of plant capacity (which causes depreciation costs at the
plant to rise by 5% of the capital cost of the upgrade) merits
immediate consideration by company managers when -
ANSWERS-· The company has a new 1 million-pair plant in
Europe-Arica ready to go into production in Year 14 and the
company's strategy calls for this plant to produced 500
models/styles (which entails annual production run setup
costs of $14 million) every year through year 20.
The industry low, industry average, and industry high
benchmarks for the costs per branded pair sold in each
geographic region (including manufacturing costs, shipping,
import tariffs, and exchange rate adjustments), warehouse
CORRECT ACTUAL QUESTIONS AND
CORRECTLY WELL DEFINED ANSWERS
LATEST ALREADY GRADED A+
Which of the following options is usually an appealing way
to try to increase a company's ROE? - ANSWERS-· Pursuing
actions to boost the company's total profits and maintaining
a high (above 75% payout ratio
Which of the following results from the latest decision
round are least important in providing guidance to company
managers in making their strategic moves and decision to
improve their company's competiveness and ranking among
the top-performing companies in the upcoming decision
round? - ANSWERS-· The dividend data, the credit rating
data, the income statement data, and the balance sheet
data for each company that are part of the Financial
Performance Summary on p. 5 of the FIR
Managers are well-advised to consider whether the
company can operate more profitably by selling some/all
,plant capacity in one or more geographic regions where -
ANSWERS-· Global demand for branded and private-label
footwear is so fare below global plant capacity that it will be
impossible for most all companies to profitably operate
their plants at full capacity for many years to come.
A company cannot effectively differentiate its branded
footwear from the brands of rivals by - ANSWERS-· Spending
more money on corporate social responsibility and
citizenship activities than most all other rivals
If a company has an unappealing low branded market share
in north America because it is being outcompeted by
various rival companies, then company manager should -
ANSWERS-· Immediately review the company's competitive
weaknesses in north America as shown at the bottom of the
competitive intelligence report and explore the merits of
action to correct most or all of them: in addition, they
should take actions that they believe will result in the
company having at least two important competitive
strengths vis-à-vis its north American rivals in the upcoming
decision round
Flawed ways to pursue a differentiation strategy include -
ANSWERS-· Striving only to achieve weak differentiation (as
,opposed to strong differentiation) from the branded
footwear offerings of other companies also pursuing a
differentiation strategy
A company's strategy to be a low-cost provider of branded
footwear can fail to produce good company performance
when - ANSWERS-· Managers do not operate the company's
plants cost efficiently and achieve manufacturing costs per
branded pair sold that is no equal to the industry low in
each geographic region are at least close to the industry low
in each geographic region
In which one of the following instances do the industry low,
industry average, and industry high values for the cost
benchmarking data in each issue of the FIR signal that one
or more elements of a company's costs are likely to be too
high relative to those of rival companies? - ANSWERS-·
When the company's operating profit per pair sold in the
internet and wholesale segments are the lowest in the
industry of all four geographic regions
Which of the following action sis unlikely to help boost a
company's market share in all four geographic regions? -
ANSWERS-· Pursuing efforts to boost labor productivity at
each of the company's plants.
, Which of the following actions is LEAST likely to increase
labor productivity by an amount that is large enough to
result in lower labor costs per pair produced at a particular
plant? - ANSWERS-· Increasing worker base pay by the
allowed maximum of 15% each and every year until the
company's base pay compensation per employee exceeds
the total compensation per employee ($/year) of all other
companies in the industry
The plant upgrade option that reduces production run setup
costs by 50% each year and costs $8 million per million pairs
of plant capacity (which causes depreciation costs at the
plant to rise by 5% of the capital cost of the upgrade) merits
immediate consideration by company managers when -
ANSWERS-· The company has a new 1 million-pair plant in
Europe-Arica ready to go into production in Year 14 and the
company's strategy calls for this plant to produced 500
models/styles (which entails annual production run setup
costs of $14 million) every year through year 20.
The industry low, industry average, and industry high
benchmarks for the costs per branded pair sold in each
geographic region (including manufacturing costs, shipping,
import tariffs, and exchange rate adjustments), warehouse
