2026/2027 Updated Verified
Questions and Solutions A+
Pass Guaranteed
1. The benefits of pursuing a strategy of social responsibility and
corporate citizenship include:
- ANS - 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.
2. If a company's managers If a company's manager wants to succeed
in creating a differentiation based on competitive advantage (and a
potential cost advantage in achieving this differentiation) that is
difficult for rivals to quickly or easily copy (because every strategy
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 manages
have to
- ANS - do a better job than rivals in identifying and implementing
ways to become very cost efficient in producing and marketing 350
, to 500 models/styles of branded footwear that also have the
highest S/Q rating in the industry.
3. Valid reasons to consider building a new plant in Latin America
include
- ANS - lower tariff on footwear sales in LA (because no import
tariffs are paid on footwear produced at the LA plant and shipped
to the distribution warehouse in LA)
4. A company stands a better chance of achieving cost-based
competitive advantage over rivals if its managers
- ANS - 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 Competitive Intelligence
Reports)
- are successful in identifying what actions promote greater
cost efficiency across all aspects of company operations and
in actually achieving the cost-reducing opportunity without
overspending to do so, while many rivals also striving to win
a low-cost advantage fall short in their efforts to achieve
matching cost reductions.
, 5. Which of the following does NOT help a company's social
responsibility strategy results in a higher image rating
- ANS - spending additional money on celebrity endorsements and
advertising to help inform the general public about the company's
good deeds in being a good corporate citizen and its socially
responsible activities
- reducing the prices the company charges its customers for
branded footwear
6. Some social responsibility and citizenship actions have a bigger
positive impact on your
7. company's Image Rating than do others.
- ANS - The biggest impacts relate to "green" footwear materials and
8. charitable contributions, not so much because they are "more
important" than the other four as because
9. they are more visible to the public (and can entail bigger dollar
expenditures).
10. It makes good economic sense for company managers to
consider investing $3.5 mil /mil pairs of capacity for a plant
facilities upgrade that will boost labor productivity by 25%
- ANS - At plant that currently has labor productivity of 3,200
pairs/worker and total employee compensation of $20,000 annually