BUSINESS STRATEGY GAME UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS EXAM SCRIPT
●● The interest rate a company pays on loans outstanding depends on
Answer: its credit rating
●● The company's present production capability (as of Year 10) is
Answer: 6 million pairs without the use of overtime and 7.2 million pairs
with the use of overtime
●● The factors that affect a company's S/Q rating include:
Answer: the percentage use of superior materials; a company's
cumulative spending for TQM/Six Sigma quality control programs; the
use of best practices training; and expenditures or new styling/features
per model
●● Which one of the following does not affect the reject rates?
Answer: The installation of plant upgrade C
●● Which of the following are the 4 geographic regions in which the
company sells branded and private label athletic footwear?
Answer: Asia-Pacific, Europe-Africa, Latin America, and North America
,●● The market for PRIVATE label athletic footwear is projected to grow
Answer: 10% annually in all four geographic regions during the Year 11-
Year 15 period and 8.5% annually in all four regions during the Year 16-
Year 20 period
●● Which of the following most accurately describes your company's
plant operations?
Answer: Standard and superior materials are sourced from outside
suppliers at prices that vary according to global demand-supply
conditions; the company's production workers are compensated on the
basis of both base pay and incentive payments per non-defective pair
produced.
●● Which of the following is/are not among the factors that affect
worker productivity?
Answer: The percentage of newly-hired workers and the percentage use
of superior materials
●● The company's shipments of newly produced branded and private
label footwear from its plants to its regional distribution centers are
subject to
Answer: any applicable import tariffs and exchange rate adjustments
,●● The company currently has production facilities to make athletic
footwear in
Answer: North America and Asia-Pacific
●● Which of the following currencies are involved in affecting the
operations of your company's athletic footwear business?
Answer: Singapore dollars, euros, U.S Dollars, and Brazilian reals
●● Which of the following are the 5 measures on which a company's
performance is judged/scored?
Answer: Earnings per share, ROE, Stock price, Credit rating, and image
rating
●● Which of the following best describes the materials the company
uses to make its footwear?
Answer: Standard and superior materials
●● The market for BRANDED athletic footwear is projected to grow
Answer: 5-7% annually in North America and Europe-Africa during
Year 11-Year 15 and 3-5% annually in these regions during the Year 16-
Year 20 period.
●● Which of the following are factors in determining a company's credit
rating?
, Answer: Its debt-asset ratio, default risk ratio, and interest coverage ratio
●● Which of the following are components of the compensation package
for production workers at your company's plants?
Answer: Base wages, incentive payments per non defective pair
produced, and overtime pay.
●● A footwear makers price competitiveness in selling branded footwear
to retailers in a particular geographic region is determined by
Answer: whether its wholesale price is above or below the average price
of all companies competing in that geographic region
●● The reject rates at the company's footwear plants are a function of
Answer: the size of the incentive payment per non defective pair
produced, spending for best practices training, spending for TQM/Six
Sigma quality control efforts, the number of models/styles comprising
the company's product line, and the installation of plant upgrade option
A
●● Which of the following is not among the factors that affect worker
productivity?
Answer: Whether plant upgrade option A has been installed
●● Which of the following currencies are NOT involved in affecting the
operations of your company's business
ACTUAL QUESTIONS AND CORRECT
ANSWERS EXAM SCRIPT
●● The interest rate a company pays on loans outstanding depends on
Answer: its credit rating
●● The company's present production capability (as of Year 10) is
Answer: 6 million pairs without the use of overtime and 7.2 million pairs
with the use of overtime
●● The factors that affect a company's S/Q rating include:
Answer: the percentage use of superior materials; a company's
cumulative spending for TQM/Six Sigma quality control programs; the
use of best practices training; and expenditures or new styling/features
per model
●● Which one of the following does not affect the reject rates?
Answer: The installation of plant upgrade C
●● Which of the following are the 4 geographic regions in which the
company sells branded and private label athletic footwear?
Answer: Asia-Pacific, Europe-Africa, Latin America, and North America
,●● The market for PRIVATE label athletic footwear is projected to grow
Answer: 10% annually in all four geographic regions during the Year 11-
Year 15 period and 8.5% annually in all four regions during the Year 16-
Year 20 period
●● Which of the following most accurately describes your company's
plant operations?
Answer: Standard and superior materials are sourced from outside
suppliers at prices that vary according to global demand-supply
conditions; the company's production workers are compensated on the
basis of both base pay and incentive payments per non-defective pair
produced.
●● Which of the following is/are not among the factors that affect
worker productivity?
Answer: The percentage of newly-hired workers and the percentage use
of superior materials
●● The company's shipments of newly produced branded and private
label footwear from its plants to its regional distribution centers are
subject to
Answer: any applicable import tariffs and exchange rate adjustments
,●● The company currently has production facilities to make athletic
footwear in
Answer: North America and Asia-Pacific
●● Which of the following currencies are involved in affecting the
operations of your company's athletic footwear business?
Answer: Singapore dollars, euros, U.S Dollars, and Brazilian reals
●● Which of the following are the 5 measures on which a company's
performance is judged/scored?
Answer: Earnings per share, ROE, Stock price, Credit rating, and image
rating
●● Which of the following best describes the materials the company
uses to make its footwear?
Answer: Standard and superior materials
●● The market for BRANDED athletic footwear is projected to grow
Answer: 5-7% annually in North America and Europe-Africa during
Year 11-Year 15 and 3-5% annually in these regions during the Year 16-
Year 20 period.
●● Which of the following are factors in determining a company's credit
rating?
, Answer: Its debt-asset ratio, default risk ratio, and interest coverage ratio
●● Which of the following are components of the compensation package
for production workers at your company's plants?
Answer: Base wages, incentive payments per non defective pair
produced, and overtime pay.
●● A footwear makers price competitiveness in selling branded footwear
to retailers in a particular geographic region is determined by
Answer: whether its wholesale price is above or below the average price
of all companies competing in that geographic region
●● The reject rates at the company's footwear plants are a function of
Answer: the size of the incentive payment per non defective pair
produced, spending for best practices training, spending for TQM/Six
Sigma quality control efforts, the number of models/styles comprising
the company's product line, and the installation of plant upgrade option
A
●● Which of the following is not among the factors that affect worker
productivity?
Answer: Whether plant upgrade option A has been installed
●● Which of the following currencies are NOT involved in affecting the
operations of your company's business
