BSG Comprehensive Exam (Fall
2023)Solved Correctly
The benefits of pursuing a strategy of social responsibility and corporate citizenship
include - 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 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
, BSG Comprehensive Exam (Fall
2023)Solved Correctly
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 include high S/W ratings, many models/styles, high
celebrity appeal ratings, and above-average advertising expenditures
Which of the following is NOT of much significance to company manager in deciding
whether profitable opportunity exist to build (or purchase) additional plant capacity in
the upcoming decision round? - Answer · Information in the most recent FIR
indicates that more than half of the companies in the industry have expanded their
plant capacity since year 10
What IS significant to company managers in deciding whether profitable opportunity
exist to build (or purchase) additional plant capacity in the upcoming decision round?
- Answer · The growth in branded demand and private-label demand over the next 3
years (as reported in each year FIR)
· How branded pairs available for sale in each geographic region in the past year
compared with projected branded demand and private label demand in each
geographic region over the next three years as shown in each year FIR
· The size of beginning inventories of branded footwear in each geographic region
reported in the most recent FIR
· Whether the most recent years FIR shows that the industry already has more than
enough production capacity worldwide to supply the combined demand for branded
footwear and private-label footwear worldwide for each of the next three years
If a company's actual results for revenues, net profits, EPS, and ROE turn out to be
worse than projected then it is usually because - Answer · The competitive efforts
2023)Solved Correctly
The benefits of pursuing a strategy of social responsibility and corporate citizenship
include - 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 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
, BSG Comprehensive Exam (Fall
2023)Solved Correctly
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 include high S/W ratings, many models/styles, high
celebrity appeal ratings, and above-average advertising expenditures
Which of the following is NOT of much significance to company manager in deciding
whether profitable opportunity exist to build (or purchase) additional plant capacity in
the upcoming decision round? - Answer · Information in the most recent FIR
indicates that more than half of the companies in the industry have expanded their
plant capacity since year 10
What IS significant to company managers in deciding whether profitable opportunity
exist to build (or purchase) additional plant capacity in the upcoming decision round?
- Answer · The growth in branded demand and private-label demand over the next 3
years (as reported in each year FIR)
· How branded pairs available for sale in each geographic region in the past year
compared with projected branded demand and private label demand in each
geographic region over the next three years as shown in each year FIR
· The size of beginning inventories of branded footwear in each geographic region
reported in the most recent FIR
· Whether the most recent years FIR shows that the industry already has more than
enough production capacity worldwide to supply the combined demand for branded
footwear and private-label footwear worldwide for each of the next three years
If a company's actual results for revenues, net profits, EPS, and ROE turn out to be
worse than projected then it is usually because - Answer · The competitive efforts
