BSG Comprehensive Exam (Winter-SpringQTR)
All Correct Answers.
The benefits of pursuing a strategy of social responsibility and corporate citizenship include:
Correct Response· 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 correct Response· 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 correct Response· 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
Correct Response· 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?
correct Response· 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?
correct Response· 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%. correct Response· 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?
correct Response· 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?
correct Response· 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?
All Correct Answers.
The benefits of pursuing a strategy of social responsibility and corporate citizenship include:
Correct Response· 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 correct Response· 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 correct Response· 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
Correct Response· 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?
correct Response· 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?
correct Response· 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%. correct Response· 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?
correct Response· 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?
correct Response· 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?
