BSG Questions and Answers #2

BSG Questions and Answers #2 Under what circumstances should a company's management team give serious consideration When managers determine that all of the company's available production capacity will not be needed to produce branded footwear and that the total amount of idle production capacity at its production facilities will be sufficient to meet or exceed the 100,000-pair minimum-delivery requirement of chain retailers in each region. A company opting to boost its sales of branded footwear by offering buyers in one or more regions 500 models/styles to choose from should definitely consider instituting production improvement option B at all production locations where 500 models are going to be produced. Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:00 / 0:15 Full screen Brainpower Read More Given the following data from a recent Comparative Competitive Efforts page in the CIR: Based on the above data for your company, which of the following statements is false? Your company had a competitive advantage on each one of the eight competitive factors affecting Internet sales and market share. If a company spends $28.8 million to install refurbished footwear-making equipment with capacity to produce 2 million pairs of athletic footwear at its Asia Pacific production facility, then its annual depreciation costs at that facility will rise by 10% or $2,880,000. Which one of the following actions is certain to result in higher production costs per branded pair at one of your company's production facilities? Increasing the use of superior materials from 30% to 40% If a management team wishes to boost the company's stock price, then it should consider pursuing actions to increase earnings per share each year that meet or beat investor expectations, raising the company's dividend each year (by at least $0.10 and preferably $0.25 or more for the increase to have much impact on the stock price), and repurchasing shares of common stock. Given the following data from a Comparative Competitive Efforts page in the CIR: Based on the above data for your company, which of the following statements is false? Your company's branded sales volume and market share in the Wholesale segment were positively impacted by your company's small percentage competitive advantages in brand reputation, retail outlets, and wholesale price. Assume a company's Income Statement for Year 12 is as follows: Based on the above income statement data and assuming the company has 20 million shares of common stock outstanding, the company's operating profit margin and EPS were 15.52% and $2.63. The industry-low, industry-average, and industry-high benchmarks on p. 7 of each issue of the Footwear Industry Report are worth careful scrutiny by the managers of all companies because when a company's costs or operating profits for one or more of the benchmarks are deemed too far out-of-line, managers should consider initiating corrective actions in the next decision round. Based on the industry-low, industry-average, and industry-high values that appear on p. 7 of each issue of the FIR, which one of the following suggests that one or more of your company's costs benchmarked on this page are likely to be too high compared to those of rival companies? Your company's marketing expenses per pair sold in both the Internet and Wholesale branded footwear segments in the Latin America region are 30% above the industry average Which one of the following is not a way to attract bigger numbers of online shoppers in the Latin America region to purchase a company's brand of athletic footwear? Offer a higher mail-in rebate than most all other rivals competing in the Internet segment in the Latin America region The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Latin America is to build a production facility in Latin America and then expand its capacity as may be needed so that the production facility has the capability to supply all (or at least most) of the branded and private-label pairs the company intends to try to sell in Latin America. Which of the following statements about striving to reduce labor costs per pair produced at each of the company's facilities is true? In managing production worker compensation and expenditures for best practice training, the overriding objective of company managers should be to achieve the lowest feasible labor costs per pair produced at each production facility. Pursuing a strategy of social responsibility and corporate citizenship helps increase a 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.