2025/2026 Graded A+
Which of the following does NOT help a company's social responsibility strategy results
in a higher image rating - 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
Some social responsibility and citizenship actions have a bigger positive impact on your
company's Image Rating than do others. - The biggest impacts relate to "green"
footwear materials and
charitable contributions, not so much because they are "more important" than the other
four as because
they are more visible to the public (and can entail bigger dollar expenditures).
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% - At plant that currently has labor productivity of 3,200 pairs/worker and total
employee compensation of $20,000 annually because the upgrade will cause labor
costs/pair produced to decline from $6.25 to $5.00
Labor costs/pair = 20,000/3,200 = $6.25
After increase in productivity = 20,000/(3,200*1.25) = $5.00
Reduction = $1.25
- boost at a plant where $18,000 for 3,000 pairs vs. $4,000 for same 3,000.
which of the following combination of actions will likely provide the biggest competitive
benefits in helping a company achieve a differentiation-based competitive advantage
over many of its rivals - Offering 400 or more models/styles to buyers in all four
geographic regions, maintaining a celebrity appeal rating of 200 or higher in all four
geographic regions, selling branded footwear 7 star or higher S/Q in all 4 regions,
rebate $9 in all 4 regions.
It is both reasonable and wise for a company to consider shifting away from pursuit of a
strategy to strongly differentiate its branded footwear from the offering of rival
companies and sell its footwear at a premium price when - a big percentage of industry
rivals are trying to outcompete each other with copycat differentiation strategies that
include high s/q ratings, many models, high celebrity appeal, and above avg. advertising
expenditures.
Which one of the following is NOT of much significance to company managers in
deciding whether profitable opportunity exists to build additional plant capacity in the
upcoming decision round? - Information in the most recent FIR indicates that more than
half of the companies in the industry have expanded their plant capacity since yr 10
, If a company's actual results of revenues, net profits, EPS and ROE turns out to be
worse than projected because competition from rival firms in one or more geographic
regions was stronger than anticipated by company managers. - the competitive efforts
exerted by rival companies to capture sales and market share for themselves in one or
more geographic region proved stronger than company managers anticipated, given the
estimates they entered for the various industry avg. affecting internet sales and ....
- competition from one or more rivals was stronger than anticipated.....
which of the following are effective ways for managers to try to boost a company's stock
price - increase the company's dividend payment to shareholders each yr by at least
$0.05/share, repurchase shares of common stock, and make every effort to achieve
annual increase in earnings/share.
which one of the following is an advantage of having plants to manufacture athletic
footwear in all 4 regions - reduced exposure to adverse exchange rate cost adjustments
(because having plants in all 4 regions 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 - the dynamic, ever-evolving nature
of competition makes it advisable for managers to make strategy adjustments of one
kind or another on an ongoing basis to improve the company's competitiveness via
rivals and boost its overall performance
one of the benefits of contracting with celebrities to endorse the company's brand of
athletic footware - assist in increasing company's sales and market share of branded
footwear
which 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 - avoiding
the use of overtime at the company's plants is not a way to reduce costs and strive to
achieve competitive advantage.
It is reasonable for a company's management team to abandon efforts to win contracts
to supply private-label footwear to chain retailers in a given year when - believes the
company has good prospects to profitably sell all of the branded pairs it can produce at
its existing plants (including full use of overtime).
Which of the following is a valid reason or strong signal that a company should consider
changing from a low-cost/low-price strategy for branded footwear to a different strategy
- 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 market
which one 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? - pursuing actions