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The benefits of pursuing a strategy of social responsibility and corporate citizenship
include - 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 - 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