Business Strategy Game Final Exam
Questions and Answers
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 during Years 16-20.
C) 5-7% annually in North America during the Year 11-15 periods and 4-6% annually in
North America during the Year 16-20 period.
D) 10-12% annually in Europe-Africa and the Asia-Pacific 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. ✅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.
Which of the following statement about the IMPORTANCE of each competitor factor
(most particularly influential competitive factors like S/Q ratings, models/styles, and
selling prices) in determining company sales volumes and market shares in a particular
geographic region is false?
A) Tiny cross-company differences on a highly influential competitive factor (like S/Q
ratings, the number of models/styles offered, and selling prices) nearly always 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 differences in branded pairs sold and market share in all four
regions.
C) As the spread between the company with the region's highest S/Q rating and the
company with the lowest S/Q rating becomes smaller and smaller, the weaker is the unit
sales/m ✅A) Tiny cross-company differences on a highly influential competitive factor
(like S/Q ratings, the number of models/styles offered, and selling prices) nearly always
have a bigger impact on company sales/market shares in a region than do large
differences on less influential competitive factors.
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 equipment.
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 ✅B) The percentage size of a production
facility's reject rates for branded and private-label footwear due to defective
workmanship and poorly-maintained equipment.
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 influential celebrity endorsements (or no celebrity
endorsements).
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 ✅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.
Which of the following are factors in determining a company's credit rating?
A) Its debt-equity ratio, current ratio, the average interest rate paid on loans
outstanding, and prior-year gross profit margin.
B) Its default-risk ratio, debt-asset ratio, and interest coverage ratio.
C) Its loans outstanding as a percentage of net income, dividend payout ratio, and debt-
equity ratio.
D) Its total liabilities as a percentage of total shareholders' equity, prior-year interest
payments as a percentage of net income, and prior-year return on capital investment.
E) A company's current ratio, accounts payable as a percent of net income, and prior-
year operating profit margin. ✅B) Its default-risk ratio, debt-asset ratio, and interest
coverage ratio.
Which one of the following is not a way to grow a company's sales volume in the
Internet segment in the Europe-Africa region?
A) Refrain from bidding to supply chain retailers in Europe-Africa with private-label
footwear because such sales tarnish a company's image and brand reputation in the
minds of a majority of athletic footwear buyers in the region.
B) Spend an amount for search engine advertising that exceeds the industry average in
the Europe-Africa region.
C) Offer branded footwear that has a higher S/Q rating than the industry average in the
Europe-Africa region.
Questions and Answers
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 during Years 16-20.
C) 5-7% annually in North America during the Year 11-15 periods and 4-6% annually in
North America during the Year 16-20 period.
D) 10-12% annually in Europe-Africa and the Asia-Pacific 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. ✅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.
Which of the following statement about the IMPORTANCE of each competitor factor
(most particularly influential competitive factors like S/Q ratings, models/styles, and
selling prices) in determining company sales volumes and market shares in a particular
geographic region is false?
A) Tiny cross-company differences on a highly influential competitive factor (like S/Q
ratings, the number of models/styles offered, and selling prices) nearly always 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 differences in branded pairs sold and market share in all four
regions.
C) As the spread between the company with the region's highest S/Q rating and the
company with the lowest S/Q rating becomes smaller and smaller, the weaker is the unit
sales/m ✅A) Tiny cross-company differences on a highly influential competitive factor
(like S/Q ratings, the number of models/styles offered, and selling prices) nearly always
have a bigger impact on company sales/market shares in a region than do large
differences on less influential competitive factors.
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 equipment.
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 ✅B) The percentage size of a production
facility's reject rates for branded and private-label footwear due to defective
workmanship and poorly-maintained equipment.
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 influential celebrity endorsements (or no celebrity
endorsements).
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 ✅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.
Which of the following are factors in determining a company's credit rating?
A) Its debt-equity ratio, current ratio, the average interest rate paid on loans
outstanding, and prior-year gross profit margin.
B) Its default-risk ratio, debt-asset ratio, and interest coverage ratio.
C) Its loans outstanding as a percentage of net income, dividend payout ratio, and debt-
equity ratio.
D) Its total liabilities as a percentage of total shareholders' equity, prior-year interest
payments as a percentage of net income, and prior-year return on capital investment.
E) A company's current ratio, accounts payable as a percent of net income, and prior-
year operating profit margin. ✅B) Its default-risk ratio, debt-asset ratio, and interest
coverage ratio.
Which one of the following is not a way to grow a company's sales volume in the
Internet segment in the Europe-Africa region?
A) Refrain from bidding to supply chain retailers in Europe-Africa with private-label
footwear because such sales tarnish a company's image and brand reputation in the
minds of a majority of athletic footwear buyers in the region.
B) Spend an amount for search engine advertising that exceeds the industry average in
the Europe-Africa region.
C) Offer branded footwear that has a higher S/Q rating than the industry average in the
Europe-Africa region.
