Study Set BSG Questions/Answers
2025/2026Graded A+
A company's management team should compete seriously against rivals to win a private-label footwear contract in
a particular geographic region when:
A) The data in the latest Competitive Intelligence Report indicates that one or more rival firms did not submit price
offers to chain retailers.
B) The data in the latest Competitive Intelligence Report indicates that some of the companies competing to
supply for private-label footwear were able to win contracts at offer prices above $25 per pair.
C) It concludes that the company has more than enough production capacity to produce the needed pairs of
branded footwear and based on its projections, determines that the company's profitability can be increased by
competing for and winning private-label contracts.
D) All the sellers of private-label footwear in the prior year had a market share under 20%(as reported in the
Competitive Intelligence Report)
E) The data in the l - ✔✔✔C) It concludes that the company has more than enough production capacity to produce
the needed pairs of branded footwear and based on its projections, determines that the company's profitability
can be increased by competing for and winning private-label contracts.
Given the following data from a Comparative Competitive Effort page in the CIR (Refer to exhibit A on word doc):
Based on Exhibit A data for your company, which of the following statement is false?
A) Your company's branded sales volume and market share in the Wholesale segment was negatively impacted by
your company's S/Q rating, brand advertising, celebrity appeal, and lack of a rebate offer.
B) Your company's percentage competitive advantages and disadvantages on the 10 competitive factors affecting
Wholesale sales and market share resulted in a net overall competitive disadvantage of a size that resulted in a
below-average 9.8% market share.
C) Your company's two biggest competitive advantages in the Wholesale Segment related to wholesale price and
model availability.
D) Your company's branded sales volume and market share in the Wholesale segment was positively impacted by
your company's delivery time.
E) Your - ✔✔✔D) Your company's branded sales volume and market share in the Wholesale segment was
positively impacted by your company's delivery time.
If a company spends $80 million to build facility space sufficient to hold 5 million pairs of footwear-making
equipment at a site in Latin America, then the company's annual depreciation cost for the facility space will be:
A) $8,000.00
, B) $3,200.00
C) $2,000.00
D) $4,000.00
E) $1,800.00 - ✔✔✔C) $2,000.00
In determining whether It is economically advisable to invest $3.5 million per million pairs of capacity for a plant
facilities upgrade that will boost labor productivity by 25%, it is accurate to say that the resulting drop in labor
costs per pair produced.
1. will be $0.15 (from $0. 75 to $0.60) at a plant where total annual compensation per employee is currently
$3,000 and labor productivity is 4,000 pairs per worker-the labor cost reduction would be a far larger $1.20 per
pair at a plant where total annual compensation per employee is currently $24,000 and labor productivity is 4,000
pairs per worker.
2. will be the same for all of the company's plants because the gains in labor productivity are 25% irrespective of
what other differences In labor-related conditions may exist.
3. will be greater for Asia-Pacific plants with 8-milllon pairs of capacity than for Asia-Pacific plants with 4-million
pairs of capacity. - ✔✔✔1. will be $0.15 (from $0. 75 to $0.60) at a plant where total annual compensation per
employee is currently $3,000 and labor productivity is 4,000 pairs per worker-the labor cost reduction would be a
far larger $1.20 per pair at a plant where total annual compensation per employee is currently $24,000 and labor
productivity is 4,000 pairs per worker.
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 when - ✔✔✔Global demand for branded and private-label footwear is
so far 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.
(Ahh yes, this is it, if the forecast shows that global demand is far below global capacity, then it isn't possible for
everyone to sell everything. In this case the most liquid and solvent company will come out ahead, perhaps a
company could hold onto capacity and fiercely hold onto market share. But of the answers here, this is the one
that most fits.
The factors that affect a company's S/Q rating by the International Footwear Federation include
A) The size of incentive bonuses paid to workers for defect-free workmanship and the percentage use of new and
refurbished footwear-making equipment.
B) The number of innovative new performance features built into a company's branded model/styles and
expenditures to properly maintain the performance of footwear-making equipment.
2025/2026Graded A+
A company's management team should compete seriously against rivals to win a private-label footwear contract in
a particular geographic region when:
A) The data in the latest Competitive Intelligence Report indicates that one or more rival firms did not submit price
offers to chain retailers.
B) The data in the latest Competitive Intelligence Report indicates that some of the companies competing to
supply for private-label footwear were able to win contracts at offer prices above $25 per pair.
C) It concludes that the company has more than enough production capacity to produce the needed pairs of
branded footwear and based on its projections, determines that the company's profitability can be increased by
competing for and winning private-label contracts.
D) All the sellers of private-label footwear in the prior year had a market share under 20%(as reported in the
Competitive Intelligence Report)
E) The data in the l - ✔✔✔C) It concludes that the company has more than enough production capacity to produce
the needed pairs of branded footwear and based on its projections, determines that the company's profitability
can be increased by competing for and winning private-label contracts.
Given the following data from a Comparative Competitive Effort page in the CIR (Refer to exhibit A on word doc):
Based on Exhibit A data for your company, which of the following statement is false?
A) Your company's branded sales volume and market share in the Wholesale segment was negatively impacted by
your company's S/Q rating, brand advertising, celebrity appeal, and lack of a rebate offer.
B) Your company's percentage competitive advantages and disadvantages on the 10 competitive factors affecting
Wholesale sales and market share resulted in a net overall competitive disadvantage of a size that resulted in a
below-average 9.8% market share.
C) Your company's two biggest competitive advantages in the Wholesale Segment related to wholesale price and
model availability.
D) Your company's branded sales volume and market share in the Wholesale segment was positively impacted by
your company's delivery time.
E) Your - ✔✔✔D) Your company's branded sales volume and market share in the Wholesale segment was
positively impacted by your company's delivery time.
If a company spends $80 million to build facility space sufficient to hold 5 million pairs of footwear-making
equipment at a site in Latin America, then the company's annual depreciation cost for the facility space will be:
A) $8,000.00
, B) $3,200.00
C) $2,000.00
D) $4,000.00
E) $1,800.00 - ✔✔✔C) $2,000.00
In determining whether It is economically advisable to invest $3.5 million per million pairs of capacity for a plant
facilities upgrade that will boost labor productivity by 25%, it is accurate to say that the resulting drop in labor
costs per pair produced.
1. will be $0.15 (from $0. 75 to $0.60) at a plant where total annual compensation per employee is currently
$3,000 and labor productivity is 4,000 pairs per worker-the labor cost reduction would be a far larger $1.20 per
pair at a plant where total annual compensation per employee is currently $24,000 and labor productivity is 4,000
pairs per worker.
2. will be the same for all of the company's plants because the gains in labor productivity are 25% irrespective of
what other differences In labor-related conditions may exist.
3. will be greater for Asia-Pacific plants with 8-milllon pairs of capacity than for Asia-Pacific plants with 4-million
pairs of capacity. - ✔✔✔1. will be $0.15 (from $0. 75 to $0.60) at a plant where total annual compensation per
employee is currently $3,000 and labor productivity is 4,000 pairs per worker-the labor cost reduction would be a
far larger $1.20 per pair at a plant where total annual compensation per employee is currently $24,000 and labor
productivity is 4,000 pairs per worker.
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 when - ✔✔✔Global demand for branded and private-label footwear is
so far 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.
(Ahh yes, this is it, if the forecast shows that global demand is far below global capacity, then it isn't possible for
everyone to sell everything. In this case the most liquid and solvent company will come out ahead, perhaps a
company could hold onto capacity and fiercely hold onto market share. But of the answers here, this is the one
that most fits.
The factors that affect a company's S/Q rating by the International Footwear Federation include
A) The size of incentive bonuses paid to workers for defect-free workmanship and the percentage use of new and
refurbished footwear-making equipment.
B) The number of innovative new performance features built into a company's branded model/styles and
expenditures to properly maintain the performance of footwear-making equipment.
