BMGT372 final UPDATED Exam
Questions and CORRECT Answers
BP Case - CORRECT ANSWER - - On April 20, 2010, a BP oil rig exploded, killing 11
workers and spilling nearly 5 million barrels of oil into the Gulf of Mexico until September.
- The disaster caused over $400 million in lost oil, massive environmental damage, and
economic losses.
- A U.S. report blamed BP and contractors for poor risk management and communication,
calling the spill avoidable and warning of industry-wide risks.
- BP's stock fell 52% in 50 days; the company set up a $20 billion compensation fund by cutting
spending and selling assets.
- The event shows the need for companies to manage environmental and social risks for long-
term success.
Sustainability - CORRECT ANSWER - - defined as meeting present needs without
compromising the ability of future generations to meet their own needs
- Sustainability is indispensable when both present and future generations depend on the same set
of limited resources
Four documented types of payoffs come with improving a company's sustainability performance:
- CORRECT ANSWER - - Financial payoffs include reduced operating costs, increased
revenue, lower administrative costs, lower capital costs, and stock market premiums
- Customer-related payoffs include increased customer satisfaction, product innovation, market
share increase, improved reputation, and new market opportunities
- Operational payoffs include process innovation, productivity gains, reduced cycle times,
improved resource yields, and waste minimization
- Organizational payoffs include employee satisfaction, improved stakeholder relationships,
reduced regulatory intervention, reduced risk, and increased organizational learning
Environmental and Social Sustainability - CORRECT ANSWER - - There are two types of
sustainable practices:
- Environmental sustainability is the preservation of diverse biological systems that remain
productive over time
,- Social sustainability involves maintaining societies' long-term well-being
Principles of Sustainability - CORRECT ANSWER - 1. Ethics involves promoting a
corporate culture that fosters truthful and fair conduct between all stakeholders. Ethics are
maintained by monitored and enforced codes of conduct
2. Governance concerns the conscientious execution of duties held by corporate board members
and managers. Good governance requires a well-understood mission statement supported by
performance metrics, as well as the use of decision tools to support management
3. Transparency involves visibility. Companies that care about the information needs of others
are transparent with them
4. Business Relationships. Companies should treat all suppliers, distributors, and partners fairly.
They should also deal only with companies that do the same
5. Financial Return. To raise capital, companies must provide investors and lenders with a
competitive return on investment (ROI). The company should maintain solid financial results
and continue to create value, while balancing additional nonmonetary factors
6. Community Involvement and Economic Development. Investing in community involvement
and economic development improves the economic welfare of the community in which the
company does business.
7. Value of Products and Services. Companies typically state a general commitment to customer
satisfaction as part of their mission statement. However, they should clarify their obligations and
responsibilities to their customers
8. Employment Practices. A diverse workforce with competitive wages and ample time away
from work is bound to be a more loyal, productive workforce than one that is subject to
prejudicial abuse, grueling hours, and poor pay
9. Protection of the Environment. At a bare minimum, all corporations must comply with
applicable environmental laws. However, corporations can do much more than thisto promote
environmental integrity
Why Sustainbility? - CORRECT ANSWER - - The "crisis-oriented" environmental
management paradigm considers the purpose of management to protect and enhance business
performance in terms of making more money, which encourages uncooperative behavior toward
anyone with a countervailing agenda, including environmental advocates
- The "cost-oriented" environmental management paradigm considers environmental regulations
as simply a cost of doing business. Corporations will pollute as much as necessary to profit from
the polluting activity and will count environmental sanctions as one more cost of operations on
the balance sheet
,Why implement sustainable measures in SCM? - CORRECT ANSWER - 1. Legal
compliance with government regulations
2. Maintaining positive community relations
3. Increasing revenue
4. Satisfying moral obligations
India Case - CORRECT ANSWER - - Opportunities:
Rapidly growing economy and middle class
Strong multinational investment (e.g., PepsiCo)
- Challenges & Solutions:
Warehousing: Outdated and limited→ Use 3PL partners
Labor: Cheap but unskilled→ Hire educated workers
Transport: Slow, poorly tracked→ Invest in logistics navigation
- Conclusion:Challenging setup, but high market potential makes it worthwhile.
Global Environment Factors - CORRECT ANSWER - - Economic
- Cultural
- Political
- Demographic
Economic Factors - CORRECT ANSWER - - Natural resources
- Labor
- Infrastructure
- Technology
- Capital
Cultural Factors - CORRECT ANSWER - - Social structure and dynamics
, - Work ethics and productivity
- Gender roles
- Religion and observances
- Language
Political Factors - CORRECT ANSWER - - Instability
- Ideology
- Institutions
- International links
Demographic Factors - CORRECT ANSWER - - Population growth
- Age structure and health status
- Urbanization
- Per capita income
Global Considerations: Opportunities and Barriers - CORRECT ANSWER -
Opportunities:
- Large market
- Economies of scale in production and distribution
- Lower select costs (e.g. labor, marketing, supply)
- Better ability to target markets
- Leverage good ideas quickly and efficiently
Barriers:
- Longer and more varied lead time
- Political risk and instability
- Overall cost (e.g. transportation, tariffs, space)
- Infrastructure access (e.g. facilities, transportation, and labor)
- Exchange rate risks
Questions and CORRECT Answers
BP Case - CORRECT ANSWER - - On April 20, 2010, a BP oil rig exploded, killing 11
workers and spilling nearly 5 million barrels of oil into the Gulf of Mexico until September.
- The disaster caused over $400 million in lost oil, massive environmental damage, and
economic losses.
- A U.S. report blamed BP and contractors for poor risk management and communication,
calling the spill avoidable and warning of industry-wide risks.
- BP's stock fell 52% in 50 days; the company set up a $20 billion compensation fund by cutting
spending and selling assets.
- The event shows the need for companies to manage environmental and social risks for long-
term success.
Sustainability - CORRECT ANSWER - - defined as meeting present needs without
compromising the ability of future generations to meet their own needs
- Sustainability is indispensable when both present and future generations depend on the same set
of limited resources
Four documented types of payoffs come with improving a company's sustainability performance:
- CORRECT ANSWER - - Financial payoffs include reduced operating costs, increased
revenue, lower administrative costs, lower capital costs, and stock market premiums
- Customer-related payoffs include increased customer satisfaction, product innovation, market
share increase, improved reputation, and new market opportunities
- Operational payoffs include process innovation, productivity gains, reduced cycle times,
improved resource yields, and waste minimization
- Organizational payoffs include employee satisfaction, improved stakeholder relationships,
reduced regulatory intervention, reduced risk, and increased organizational learning
Environmental and Social Sustainability - CORRECT ANSWER - - There are two types of
sustainable practices:
- Environmental sustainability is the preservation of diverse biological systems that remain
productive over time
,- Social sustainability involves maintaining societies' long-term well-being
Principles of Sustainability - CORRECT ANSWER - 1. Ethics involves promoting a
corporate culture that fosters truthful and fair conduct between all stakeholders. Ethics are
maintained by monitored and enforced codes of conduct
2. Governance concerns the conscientious execution of duties held by corporate board members
and managers. Good governance requires a well-understood mission statement supported by
performance metrics, as well as the use of decision tools to support management
3. Transparency involves visibility. Companies that care about the information needs of others
are transparent with them
4. Business Relationships. Companies should treat all suppliers, distributors, and partners fairly.
They should also deal only with companies that do the same
5. Financial Return. To raise capital, companies must provide investors and lenders with a
competitive return on investment (ROI). The company should maintain solid financial results
and continue to create value, while balancing additional nonmonetary factors
6. Community Involvement and Economic Development. Investing in community involvement
and economic development improves the economic welfare of the community in which the
company does business.
7. Value of Products and Services. Companies typically state a general commitment to customer
satisfaction as part of their mission statement. However, they should clarify their obligations and
responsibilities to their customers
8. Employment Practices. A diverse workforce with competitive wages and ample time away
from work is bound to be a more loyal, productive workforce than one that is subject to
prejudicial abuse, grueling hours, and poor pay
9. Protection of the Environment. At a bare minimum, all corporations must comply with
applicable environmental laws. However, corporations can do much more than thisto promote
environmental integrity
Why Sustainbility? - CORRECT ANSWER - - The "crisis-oriented" environmental
management paradigm considers the purpose of management to protect and enhance business
performance in terms of making more money, which encourages uncooperative behavior toward
anyone with a countervailing agenda, including environmental advocates
- The "cost-oriented" environmental management paradigm considers environmental regulations
as simply a cost of doing business. Corporations will pollute as much as necessary to profit from
the polluting activity and will count environmental sanctions as one more cost of operations on
the balance sheet
,Why implement sustainable measures in SCM? - CORRECT ANSWER - 1. Legal
compliance with government regulations
2. Maintaining positive community relations
3. Increasing revenue
4. Satisfying moral obligations
India Case - CORRECT ANSWER - - Opportunities:
Rapidly growing economy and middle class
Strong multinational investment (e.g., PepsiCo)
- Challenges & Solutions:
Warehousing: Outdated and limited→ Use 3PL partners
Labor: Cheap but unskilled→ Hire educated workers
Transport: Slow, poorly tracked→ Invest in logistics navigation
- Conclusion:Challenging setup, but high market potential makes it worthwhile.
Global Environment Factors - CORRECT ANSWER - - Economic
- Cultural
- Political
- Demographic
Economic Factors - CORRECT ANSWER - - Natural resources
- Labor
- Infrastructure
- Technology
- Capital
Cultural Factors - CORRECT ANSWER - - Social structure and dynamics
, - Work ethics and productivity
- Gender roles
- Religion and observances
- Language
Political Factors - CORRECT ANSWER - - Instability
- Ideology
- Institutions
- International links
Demographic Factors - CORRECT ANSWER - - Population growth
- Age structure and health status
- Urbanization
- Per capita income
Global Considerations: Opportunities and Barriers - CORRECT ANSWER -
Opportunities:
- Large market
- Economies of scale in production and distribution
- Lower select costs (e.g. labor, marketing, supply)
- Better ability to target markets
- Leverage good ideas quickly and efficiently
Barriers:
- Longer and more varied lead time
- Political risk and instability
- Overall cost (e.g. transportation, tariffs, space)
- Infrastructure access (e.g. facilities, transportation, and labor)
- Exchange rate risks
