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BSG COMPREHENSIVE FINAL
EXAM 2026 QUESTIONS AND
ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
The benefits of pursuing a strategy of social responsibility and
corporate citizenship include - correct 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 - correct 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
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Valid reasons to consider building a new plant in Latin America
include - correct 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 -
correct 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? - correct
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 - correct 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
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· 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 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
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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 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 - correct 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? - correct 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
BSG COMPREHENSIVE FINAL
EXAM 2026 QUESTIONS AND
ANSWERS | A+ GRADED | WITH
EXPERT SOLUTIONS
The benefits of pursuing a strategy of social responsibility and
corporate citizenship include - correct 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 - correct 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
, Page | 2
Valid reasons to consider building a new plant in Latin America
include - correct 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 -
correct 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? - correct
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 - correct 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
, Page | 3
· 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 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
, Page | 4
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 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 - correct 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? - correct 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
