BSG QUIZ 1 EXAM QUESTIONS
AND ANSWERS 2026 UPDATED
AND VERIFIED Graded A+
1. Although Michael Porter is known as an IO economist and his emphasis on
industry analysis, his ______ framework allows for competitive advantage to be
gained through uniqueness, with firms following a ______ strategy.
Answer: generic strategies; differentiation
2. According to the textbook, what are the Five Generic Competitive Strategy
Options?
Answer: overall low-cost provider strategy, broad differentiation strategy, focused low-
cost strategy, focused differentiation strategy, best-cost provider strategy
3. Rumelt's criteria for strategy evaluation are: Feasibility, consistency,
consonance, and __________
Answer: Advantage
4. What do the letters V-R-I-O stand for in the VRIO framework (concerning a
firm's resources)?
Answer:
o Value: Does the resource strength/capability have competitive value?
o Rarity: Do many or most rivals have much the same resource or capability?
o Imitability: Is the resource or capability hard or costly to imitate?
o Organization: Is the firm organized to capture value from the resource/capability?
5. A skill or activity in which a firm excels compared to rival firms is known as a:
Answer: Distinctive competence
6. What are the three levels of strategy, and what questions are asked at the top
two levels?
, Answer:
o Corporate level: What business(es) are we in and which should we be in?
o Competitive level (Business level): Given the business(es) we are in, how should we
compete?
o Functional level: What must we do at the functional level to implement chosen
strategies?
BSG Simulation Core Concepts
7. Which of the following are the four geographic regions in which the company
sells branded and private-label athletic footwear?
Answer: North America, Latin America, Asia-Pacific, and Europe-Africa
8. The company currently has production facilities to make athletic footwear in:
Answer: North America and Asia-Pacific
9. The market for branded athletic footwear is projected to grow:
Answer: 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year
15 period and 5-7% annually in North America and Europe-Africa during the Year 11-
Year 15 period
10. The market for private-label athletic footwear is projected to grow:
Answer: 10% annually in all four geographic regions during the Year 11-Year 15 period
and 8.5% annually in all four regions during the Year 16-Year 20 period
11. In Year 11, footwear companies can expect to sell:
Answer: an average of 4.84 million branded pairs and an average of 800,000 private-
label pairs, although sales at some companies may run higher or lower than the
averages due to differing levels of competitive effort
12. Which of the following is not a distribution channel available in the game?
Answer: retail sales at the company's stores in outlet malls
, 13. If you offer free shipping in the internet market, the shipping and handling
fees that you will have to "absorb" is how much per pair of shoes?
Answer: $12.50 per pair
Company Performance & Metrics
14. In the Business Strategy Game, your company is assessed on how well it meets
investor expectations in five categories on a "balanced scorecard." What are these
five categories?
Answer: Earnings per share, Return on Equity, Stock Price, Credit Rating, and Image
Rating
15. Which of the following are the 5 measures on which a company's performance
is judged/scored?
Answer: Earnings per share, ROE, stock price, credit rating, and image rating
16. Which of the following are factors in determining a company's credit rating?
Answer: its debt-asset ratio, default risk ratio, and interest coverage ratio
Production & Operations
17. Which of the following best describes the materials the company uses to make
its footwear?
Answer: standard and superior materials
18. The reject rates at the company's footwear plants are a function of:
Answer: the size of the incentive payment per non-defective pair produced, spending
for best practices training, spending for TQM/Six Sigma quality control, the number of
, models/styles comprising the company's product line, and the installation of plant
upgrade option A
19. Which of the following is a result of Best Practices worker training in the
simulation?
Answer: All of the above may result from Best Practices worker training:
o lowers defect rates
o improves S/Q rating
o reduces materials waste
o increases worker productivity
20. Which of the following most accurately describes your company's plant
operations?
Answer: TQM/Six Sigma quality control programs and best practices training are used
to boost the S/Q ratings of both branded and private-label footwear
21. Which of the following are components of the compensation package for
production workers at your company's plants?
Answer: base wages, incentive payments per non-defective pair produced, and
overtime pay
Market Share Factors
22. Which of the following are factors in determining a company's unit sales and
market share of branded footwear in a particular geographic region?
Answer:
o expenditures on advertising
o the number of models/styles in the company's product line
o mail-in rebate offers
o delivery times to retailers (1, 2, 3, or 4 weeks)
o the percentage use of superior materials
o a company's cumulative spending for TQM/Six Sigma quality control programs
AND ANSWERS 2026 UPDATED
AND VERIFIED Graded A+
1. Although Michael Porter is known as an IO economist and his emphasis on
industry analysis, his ______ framework allows for competitive advantage to be
gained through uniqueness, with firms following a ______ strategy.
Answer: generic strategies; differentiation
2. According to the textbook, what are the Five Generic Competitive Strategy
Options?
Answer: overall low-cost provider strategy, broad differentiation strategy, focused low-
cost strategy, focused differentiation strategy, best-cost provider strategy
3. Rumelt's criteria for strategy evaluation are: Feasibility, consistency,
consonance, and __________
Answer: Advantage
4. What do the letters V-R-I-O stand for in the VRIO framework (concerning a
firm's resources)?
Answer:
o Value: Does the resource strength/capability have competitive value?
o Rarity: Do many or most rivals have much the same resource or capability?
o Imitability: Is the resource or capability hard or costly to imitate?
o Organization: Is the firm organized to capture value from the resource/capability?
5. A skill or activity in which a firm excels compared to rival firms is known as a:
Answer: Distinctive competence
6. What are the three levels of strategy, and what questions are asked at the top
two levels?
, Answer:
o Corporate level: What business(es) are we in and which should we be in?
o Competitive level (Business level): Given the business(es) we are in, how should we
compete?
o Functional level: What must we do at the functional level to implement chosen
strategies?
BSG Simulation Core Concepts
7. Which of the following are the four geographic regions in which the company
sells branded and private-label athletic footwear?
Answer: North America, Latin America, Asia-Pacific, and Europe-Africa
8. The company currently has production facilities to make athletic footwear in:
Answer: North America and Asia-Pacific
9. The market for branded athletic footwear is projected to grow:
Answer: 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year
15 period and 5-7% annually in North America and Europe-Africa during the Year 11-
Year 15 period
10. The market for private-label athletic footwear is projected to grow:
Answer: 10% annually in all four geographic regions during the Year 11-Year 15 period
and 8.5% annually in all four regions during the Year 16-Year 20 period
11. In Year 11, footwear companies can expect to sell:
Answer: an average of 4.84 million branded pairs and an average of 800,000 private-
label pairs, although sales at some companies may run higher or lower than the
averages due to differing levels of competitive effort
12. Which of the following is not a distribution channel available in the game?
Answer: retail sales at the company's stores in outlet malls
, 13. If you offer free shipping in the internet market, the shipping and handling
fees that you will have to "absorb" is how much per pair of shoes?
Answer: $12.50 per pair
Company Performance & Metrics
14. In the Business Strategy Game, your company is assessed on how well it meets
investor expectations in five categories on a "balanced scorecard." What are these
five categories?
Answer: Earnings per share, Return on Equity, Stock Price, Credit Rating, and Image
Rating
15. Which of the following are the 5 measures on which a company's performance
is judged/scored?
Answer: Earnings per share, ROE, stock price, credit rating, and image rating
16. Which of the following are factors in determining a company's credit rating?
Answer: its debt-asset ratio, default risk ratio, and interest coverage ratio
Production & Operations
17. Which of the following best describes the materials the company uses to make
its footwear?
Answer: standard and superior materials
18. The reject rates at the company's footwear plants are a function of:
Answer: the size of the incentive payment per non-defective pair produced, spending
for best practices training, spending for TQM/Six Sigma quality control, the number of
, models/styles comprising the company's product line, and the installation of plant
upgrade option A
19. Which of the following is a result of Best Practices worker training in the
simulation?
Answer: All of the above may result from Best Practices worker training:
o lowers defect rates
o improves S/Q rating
o reduces materials waste
o increases worker productivity
20. Which of the following most accurately describes your company's plant
operations?
Answer: TQM/Six Sigma quality control programs and best practices training are used
to boost the S/Q ratings of both branded and private-label footwear
21. Which of the following are components of the compensation package for
production workers at your company's plants?
Answer: base wages, incentive payments per non-defective pair produced, and
overtime pay
Market Share Factors
22. Which of the following are factors in determining a company's unit sales and
market share of branded footwear in a particular geographic region?
Answer:
o expenditures on advertising
o the number of models/styles in the company's product line
o mail-in rebate offers
o delivery times to retailers (1, 2, 3, or 4 weeks)
o the percentage use of superior materials
o a company's cumulative spending for TQM/Six Sigma quality control programs
