Verified Solutions 2024
,BSG Comprehensive Exam | Questions And Answers With
Verified Solutions 2024
The benefits of pursuing a strategy of social responsibility and corporate citizenship include
✔✔· 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 ✔✔· 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 ✔✔· 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 ✔✔· 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? ✔✔· 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
✔✔· Using environmentally friendly or 'Green' materials in producing footwear at the
company's plants
, BSG Comprehensive Exam | Questions And Answers With
Verified Solutions 2024
· 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%.
✔✔· 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? ✔✔· 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