BSG COMPREHENSIVE EXAM QUESTIONS AND
SOLUTIONS
◉ 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
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
SOLUTIONS
◉ 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
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
