BSG FINAL UPDATED QUESTIONS AND CORRECT
ANSWERS
Question:
1. The projected growth in buyer demand for BRANDED athletic footwear is:
A) 3-5% annually in North America and Europe-Africa
in Years 16-20 and 7-9% annually in Latin America and the Asia Pacific regions in Years 16-20.
B) 6-9% annually in all four geographic regions during
Years 11-15 and 4-7% annually in all four regions dur-ing Years 16-20.
C) 5-7% annually in North America during the Year
11-15 periods and 4-6% annually in North America dur-ing the Year 16-20 period.
D) 10-12% annually in Europe-Africa and the Asia-Pa-
cific during Years 11-15 and 8-10% annually in these same two regions during Years 16-20.
E) 6-8% annually in Latin-America and North America
during the Year 11-15 period and 5-7% annually in the same two regions during the Year 16-20
period.
Answer:
A) 3-5% annually in North
America and Europe-Africa in Years 16-20 and 7-9% annually in Latin Ameri-ca and the Asia Pacific
re-gions in Years 16-20.
Question:
2. Which of the following statement about the IMPOR-TANCE of each competitor factor (most
particularly influential competitive factors like S/Q ratings, mod-els/styles, and selling prices) in
determining company sales volumes and market shares in a particular geo-graphic region is false?
A) Tiny cross-company differences on a highly influ-
ential competitive factor (like S/Q ratings, the number of models/styles offered, and selling prices)
nearly al-ways have a bigger impact on company sales/market shares in a region than do large
differences on less influential competitive factors.
B) Big S/Q rating differences in a region always weigh
heavily in accounting for company-to-company differ-ences in branded pairs sold and market share in
all four regions.
C) As the spread between the company with the re-
gion's highest S/Q rating and the company with the lowest S/Q rating becomes smaller and smaller,
the weaker is the unit sales/market share impact of the differences in the S/Q ratings among
competing com-panies.
D) In the rare instance that all companies should hap-
pen to have exactly the same S/Q ratings on their branded footwear in a region wholesale and internet
segments, then S/Q ratings become a total competitor nonfactor and have zero impact on buyer appeal
for one company's brand versus another.
E) How much company S/Q rating matter in determin-
ing each company's unit sales/market share in a region is not fixed amount but rather is an amount
that varies from "big" (when the differences are "small") to "zero" (when the S/Q ratings of rivals are
identical)
Answer:
A) Tiny cross-company dif-
ferences on a highly in-fluential competitive fac-tor (like S/Q ratings, the number of models/styles
offered, and selling prices) nearly always have a big-ger impact on company sales/market shares in a
, region than do large dif-ferences on less influen-tial competitive factors.
Question:
3. Which one of the following is not one of the factors that affect the S/Q rating of a company's
footwear?
A) A company's current and cumulative spending for
TQM/Six Sigma quality control programs
B) The percentage size of a production facility's reject
rates for branded and private-label footwear due to defective workmanship and poorly-maintained
equip-ment.
C) Expenditures for new styling/features per model
D) Whether production improvement option C has
been installed (this option entails investing in special production equipment that boosts the S/Q rating
of all pairs produced by 1.0 star)
E) Expenditures for best practices training
Answer:
B) The percentage size
of a production facility's reject rates for branded and private-label footwear due to defective
workman-ship and poorly-main-tained equipment.
Question:
4. Which of the following statements about the impact of a company's competitive efforts in a region
on its regional market share and number of branded pairs sold is false?
A) Companies with more influential celebrity lineups in
a region enjoy a competitive advantage in attracting buyers to purchase their brand in either retail
stores or online as compared to regional rivals with less influen-tial celebrity endorsements (or no
celebrity endorse-ments).
B) A footwear-maker achieves the biggest possible
styling/quality-based competitive advantage in a given when its branded footwear has a higher S/Q
rating than any other company in the region.
C) A company's pairs sold and market share outcomes
in a region are positively impacted when the number of models/styles it offers for sale in the region is
above the regional average.
D) The more a company's S/Q rating in a region is
below the region's all-company average, the bigger is the company's resulting competitive
disadvantage and the bigger is the resulting negative impact on the company's pairs sold and market
share in the region.
E) A company's pairs sold and market share outcomes
in a region are positively impacted when it's brand rep-utation /image rating in a region is above the
regional average.
Answer:
B) A footwear-maker
achieves the biggest pos-sible styling/quality-based competitive advantage in a given when its
branded footwear has a higher S/Q rating than any other com-pany in the region.
Question:
5. Which of the following are factors in determining a company's credit rating?
A) Its debt-equity ratio, current ratio, the average in-
terest rate paid on loans outstanding, and prior-year gross profit margin.
ANSWERS
Question:
1. The projected growth in buyer demand for BRANDED athletic footwear is:
A) 3-5% annually in North America and Europe-Africa
in Years 16-20 and 7-9% annually in Latin America and the Asia Pacific regions in Years 16-20.
B) 6-9% annually in all four geographic regions during
Years 11-15 and 4-7% annually in all four regions dur-ing Years 16-20.
C) 5-7% annually in North America during the Year
11-15 periods and 4-6% annually in North America dur-ing the Year 16-20 period.
D) 10-12% annually in Europe-Africa and the Asia-Pa-
cific during Years 11-15 and 8-10% annually in these same two regions during Years 16-20.
E) 6-8% annually in Latin-America and North America
during the Year 11-15 period and 5-7% annually in the same two regions during the Year 16-20
period.
Answer:
A) 3-5% annually in North
America and Europe-Africa in Years 16-20 and 7-9% annually in Latin Ameri-ca and the Asia Pacific
re-gions in Years 16-20.
Question:
2. Which of the following statement about the IMPOR-TANCE of each competitor factor (most
particularly influential competitive factors like S/Q ratings, mod-els/styles, and selling prices) in
determining company sales volumes and market shares in a particular geo-graphic region is false?
A) Tiny cross-company differences on a highly influ-
ential competitive factor (like S/Q ratings, the number of models/styles offered, and selling prices)
nearly al-ways have a bigger impact on company sales/market shares in a region than do large
differences on less influential competitive factors.
B) Big S/Q rating differences in a region always weigh
heavily in accounting for company-to-company differ-ences in branded pairs sold and market share in
all four regions.
C) As the spread between the company with the re-
gion's highest S/Q rating and the company with the lowest S/Q rating becomes smaller and smaller,
the weaker is the unit sales/market share impact of the differences in the S/Q ratings among
competing com-panies.
D) In the rare instance that all companies should hap-
pen to have exactly the same S/Q ratings on their branded footwear in a region wholesale and internet
segments, then S/Q ratings become a total competitor nonfactor and have zero impact on buyer appeal
for one company's brand versus another.
E) How much company S/Q rating matter in determin-
ing each company's unit sales/market share in a region is not fixed amount but rather is an amount
that varies from "big" (when the differences are "small") to "zero" (when the S/Q ratings of rivals are
identical)
Answer:
A) Tiny cross-company dif-
ferences on a highly in-fluential competitive fac-tor (like S/Q ratings, the number of models/styles
offered, and selling prices) nearly always have a big-ger impact on company sales/market shares in a
, region than do large dif-ferences on less influen-tial competitive factors.
Question:
3. Which one of the following is not one of the factors that affect the S/Q rating of a company's
footwear?
A) A company's current and cumulative spending for
TQM/Six Sigma quality control programs
B) The percentage size of a production facility's reject
rates for branded and private-label footwear due to defective workmanship and poorly-maintained
equip-ment.
C) Expenditures for new styling/features per model
D) Whether production improvement option C has
been installed (this option entails investing in special production equipment that boosts the S/Q rating
of all pairs produced by 1.0 star)
E) Expenditures for best practices training
Answer:
B) The percentage size
of a production facility's reject rates for branded and private-label footwear due to defective
workman-ship and poorly-main-tained equipment.
Question:
4. Which of the following statements about the impact of a company's competitive efforts in a region
on its regional market share and number of branded pairs sold is false?
A) Companies with more influential celebrity lineups in
a region enjoy a competitive advantage in attracting buyers to purchase their brand in either retail
stores or online as compared to regional rivals with less influen-tial celebrity endorsements (or no
celebrity endorse-ments).
B) A footwear-maker achieves the biggest possible
styling/quality-based competitive advantage in a given when its branded footwear has a higher S/Q
rating than any other company in the region.
C) A company's pairs sold and market share outcomes
in a region are positively impacted when the number of models/styles it offers for sale in the region is
above the regional average.
D) The more a company's S/Q rating in a region is
below the region's all-company average, the bigger is the company's resulting competitive
disadvantage and the bigger is the resulting negative impact on the company's pairs sold and market
share in the region.
E) A company's pairs sold and market share outcomes
in a region are positively impacted when it's brand rep-utation /image rating in a region is above the
regional average.
Answer:
B) A footwear-maker
achieves the biggest pos-sible styling/quality-based competitive advantage in a given when its
branded footwear has a higher S/Q rating than any other com-pany in the region.
Question:
5. Which of the following are factors in determining a company's credit rating?
A) Its debt-equity ratio, current ratio, the average in-
terest rate paid on loans outstanding, and prior-year gross profit margin.
