BSG Exam PREP Questions and Answers, Latest Update 2023 (Already Graded A+)

BSG Exam PREP Questions and Answers, Latest Update 2023 (Already Graded A+) Which of the following is NOT of much significance to company manager in deciding whether profitable opportunity exist to build (or purchase) additional plant capacity in the upcoming decision round? - Answer · Information in the most recent FIR indicates that more than half of the companies in the industry have expanded their plant capacity since year 10 What IS significant to company managers in deciding whether profitable opportunity exist to build (or purchase) additional plant capacity in the upcoming decision round? - Answer · The growth in branded demand and private-label demand over the next 3 years (as reported in each year FIR) · How branded pairs available for sale in each geographic region in the past year compared with projected branded demand and private label demand in each geographic region over the next three years as shown in each year FIR · The size of beginning inventories of branded footwear in each geographic region reported in the most recent FIR · Whether the most recent years FIR shows that the industry already has more than enough production capacity worldwide to supply the combined demand for branded footwear and private-label footwear worldwide for each of the next three years If a company's actual results for revenues, net profits, EPS, and ROE turn out to be worse than projected then it is usually because - Answer · The competitive efforts exerted by rival companies to capture sales and market share for themselves in one or more geographic regions proved stronger than company manager anticipated, given the estimates they entered for the various industry averages affecting internet sales and branded wholesale sales on the sales forecast screen Which of the following are affective ways for manager to try to boost a company's stock price? - Answer · Increase the company's dividend payment to shareholders, each year by at least $ per share, repurchase shares of common stock, and make every effort to achieve annual increases in earnings per share. Which of the following is an advantage of having plants to manufacture athletic footwear in all four geographic regions? - Answer · Reduced exposure to adverse exchange rate cost adjustments (because having plants in all four geographic regions typically enables a company to reduce cross region shipments of pairs that are subject to unfavorable shifts in exchange rates) One of the lessons about competing in a globally competitive marketplace that comes from "playing" the Business strategy game is that - Answer · The dynamic, ever evolving nature of competition makes it advisable for managers to make strategic adjustments of one kind or another on an ongoing basis to improve the companies competiveness vis-à-vis rivals and boost its overall performance One of the benefits of contracting with celebrities to endorse the company's brand of athletic footwear is - Answer · The assist that celebrity endorsement provides in increasing a company's sales and market share of branded footwear Which one of the following is NOT a way to reduce costs and strive to achieve a competitive advantage based on lower overall costs per pair sold than rival companies? - Answer Avoiding the use of overtime at the company's plants Which one of the following is IS a way to reduce costs and strive to achieve a competitive advantage based on lower overall costs per pair sold than rival companies? - Answer · Searching for the lowest cost way to achieve the target S/Q rating · Spending (but also taking care not to overspend) on best practices training for workers in all of the companies' plants · Striving to operate at full production capacity so as to help spread fixed costs over more pairs of footwear. · Investing in one or more plant upgrades that have the effect of lowering manufacturing costs per pair produced It is reasonable for a company's management team to abandon efforts to win contract to supply private label footwear to chain retailers in a given year when. - Answer · It believes the company has good prospect to profitably sell all the branded pairs it can produce at its existing plants (including full use of overtime) BSG Comprehensive Exam (Fall 2023)Solved Correctly!! Which of the following is a valid reason or strong signal that a company should consider changing from a low-cost/low price strategy to a different strategy? - Answer · The low-price segment for branded footwear becomes so overcrowded with competitors that fierce competition makes it very difficult to earn attractive profits in the low-price end of the branded footwear marketplace Which of the following is most likely to be an effective or attractive way to try to reduce manufacturing costs per pair produced at a particular plant? - Answer Investing in one or more plant upgrades Which of the following options is usually an appealing way to try to increase a company's ROE? - Answer · Pursuing actions to boost the company's total profits and maintaining a high (above 75% payout ratio Which of the following results from the latest decision round are least important in providing guidance to company managers in making their strategic moves and decision to improve their company's competiveness and ranking among the topperforming companies in the upcoming decision round? - Answer · The dividend data, the credit rating data, the income statement data, and the balance sheet data for each company that are part of the Financial Performance Summary on p. 5 of the FIR Managers are well-advised to consider whether the company can operate more profitably by selling some/all plant capacity in one or more geographic regions where - Answer · Global demand for branded and private-label footwear is so fare below global plant capacity that it will be impossible for most all companies to profitably operate their plants at full capacity for many years to come. A company cannot effectively differentiate its branded footwear from the brands of rivals by - Answer · Spending more money on corporate social responsibility and citizenship activities than most all other rivals If a company has an unappealing low branded market share in north America because it is being outcompeted by various rival companies, then company manager should - Answer · Immediately review the company's competitive weaknesses in north America as shown at the bottom of the competitive intelligence report and explore the merits of action to correct most or all of them: in addition, they should take actions that they believe will result in the company having at least two important competitive strengths vis-à-vis its north American rivals in the upcoming decision round Flawed ways to pursue a differentiation strategy include - Answer · Striving only to achieve weak differentiation (as opposed to strong differentiation) from the branded footwear offerings of other companies also pursuing a differentiation strategy A company's strategy to be a low-cost provider of branded footwear can fail to produce good company performance when - Answer · Managers do not operate the BSG Comprehensive Exam (Fall 2023)Solved Correctly!! company's plants cost efficiently and achieve manufacturing costs per branded pair sold that is no equal to the industry low in each geographic region are at least close to the industry low in each geographic region In which one of the following instances do the industry low, industry average, and industry high values for the cost benchmarking data in each issue of the FIR signal that one or more elements of a company's costs are likely to be too high relative to those of rival companies? - Answer · When the company's operating profit per pair sold in the internet and wholesale segments are the lowest in the industry of all four geographic regions Which of the following action sis unlikely to help boost a company's market share in all four geographic regions? - Answer · Pursuing efforts to boost labor productivity at each of the company's plants. Which of the following actions is LEAST likely to increase labor productivity by an amount that is large enough to result in lower labor costs per pair produced at a particular plant? - Answer · Increasing worker base pay by the allowed maximum of 15% each and every year until the company's base pay compensation per employee exceeds the total compensation per employee ($/year) of all other companies in the industry The plant upgrade option that reduces production run setup costs by 50% each year and costs $8 million per million pairs of plant capacity (which causes depreciation costs at the plant to rise by 5% of the capital cost of the upgrade) merits immediate consideration by company managers when - Answer · The company has a new 1 million-pair plant in Europe-Arica ready to go into production in Year 14 and the company's strategy calls for this plant to produced 500 models/styles (which entails annual production run setup costs of $14 million) every year through year 20. The industry low, industry average, and industry high benchmarks for the costs per branded pair sold in each geographic region (including manufacturing costs, shipping, import tariffs, and exchange rate adjustments), warehouse expenses pe branded pair sold, marketing expenses per branded pair sold, and administration expenses per branded pair sold that appear in each issue of the footwear industry report - Answer · Are worth careful scrutiny by the managers of all companies because when the benchmarking data signals that a company's costs for one or more of the benchmarks are out of line, managers are well advised to take corrective action in the next decision round. While contracting with celebrities to endorse a company's brand adds to the competitive power of its product offering vis-à-vis the offerings of rivals - Answer · One of the big risks of bidding to win contracts for celebrity endorsements is that it is easy to end up overspending to win a contract because it is so hard to judge just how big the actual benefit (of value) of winning the contract for a particular celebrity will prove to be. BSG Comprehensive Exam (Fall 2023)Solved Correctly!! Company managers should give strong consideration to bidding for private label contracts in one or more geographic regions in the upcoming decision round when - Answer · They expect to have idle production capacity at one or more plants after producing all the branded pairs needed to meet anticipated demand in the upcoming year Which one of the following does NTO help boost a company's image rating? - Answer · Paying total compensation to plant employees that is below the industry average What DOES help boost a company's image rating - Answer · Reducing the price, the company charges for its branded footwear · Sustained spending for social responsibility and corporate citizenship initiatives · Being successful in winning celebrity endorsement contracts and thereby boosting the company's celebrity appeal ratings · Raising advertising to levels above the industry average in each geographic region The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Latin America is to - Answer · Build a plant in Latin America and then expand its capacity as may be needed so that the plant has the capability to supply all (or at least most) of the pairs the company intends to try to sell in Latin America An appealing strategy that a company can use to reduce exposure to adverse exchange rate adjustments to the costs of pairs shipped to a distribution warehouse from a plant in a different geographic region is to - Answer · Build sufficient plant capacity in each of the four geographic regions to greatly reduce (maybe even eliminate) the need to ship pairs to a distribution warehouse from a plant in a different geographic region - such a strategy has the added benefit of cutting tariff payments on imported footwear