BSG Quiz 1 Questions and Correct
Detailed Answers
A company's strategy and its quest for CA are tightly connected because - Answer: it is almost
certain to earn significantly higher profits when it enjoys a CA as opposed to when it competes with
no advantage or is hamstrung by competitive disadvantage
The company currently has production facilities to make athletic footwear in? - Answer: NA & AP
Which one of the following is NOT a factor in determining the company's unit sales and market share
of BRANDED footwear in a particular geographic region? - Answer: Footwear features and durability
The company's present production capability (Year 10) is - Answer: 6 mil w/o OT, 7.2 mill with OT
Which of the following is/are not among the factors that affect worker productivity? - Answer: % of
newly-hired workers, % of superior materials
Which of the following does not affect the reject rates at the plants - Answer: Installation of plant
upgrade C
Which of the following are the 5 measures of performance? - Answer: ROE, EPS, credit rating, stock
price, image rating
Which of the following is the most important factor in determining a company's unit sales and
market share for PRIVATE-LABEL footwear in a particular geographic region? - Answer: The
company's bid price
Which of the following are factors in determining a company's credit rating? - Answer: Default risk
ratio, D/A ratio, interest coverage ratio
Which of the following best describes the materials the company uses? - Answer: Standard,
Superior
, Which of the following are components of the compensation package for production workers? -
Answer: Base wages, incentive pay per non-def, OT
Which of the following most accurately describes your company's plant operations? - Answer:
Standard and superior materials are sourced from outside suppliers at prices that vary according to
global D-S conditions; the company's production workers are compensated on the basis of both base
pay and incentive payments per non-defective pair produced.
What are the 4 geographic regions? - Answer: NA, EA, AP, LA
In year 11, companies can expect to sell... - Answer: an avg of 4.84 mil branded, avg of 800k private,
although sales at some companies may run higher or lower than the avg due to differing levels of
competitive effort
The market for PRIVATE-LABEL footwear is projected to grow... - Answer: 10% annual for all regions
years 11-15, 8.5% annual for all regions years 16-20
A footwear-maker's price competitiveness in selling branded footwear to retailers in a particular
geographic region is determined by? - Answer: whether its wholesale price is +/- the avg price of all
companies competing in that geographic region. OR
The market for BRANDED footwear is projected to grow... - Answer: 9-11% in LA and AP years 11-15,
7-9% annually in same regions 16 onward
The factors that affect a company's S/Q rating include: - Answer: Plant upgrade C (raises whole star),
TQM/6sigma spending, expenditures for new styling/features per model.
The company's shipments of newly-produced BRANDED & PRIVATE-LABEL footwear from it's plants
to its regional dist centers are subject to - Answer: any applicable import tariffs and exchange rate
adjustments
The interest rate a company pays on loans outstanding depends on? - Answer: its credit rating
The market for PRIVATE-LABEL is projected to grow... - Answer: 10% annually all regions years 11-
15, 8.5% annually all regions years 16-20
Detailed Answers
A company's strategy and its quest for CA are tightly connected because - Answer: it is almost
certain to earn significantly higher profits when it enjoys a CA as opposed to when it competes with
no advantage or is hamstrung by competitive disadvantage
The company currently has production facilities to make athletic footwear in? - Answer: NA & AP
Which one of the following is NOT a factor in determining the company's unit sales and market share
of BRANDED footwear in a particular geographic region? - Answer: Footwear features and durability
The company's present production capability (Year 10) is - Answer: 6 mil w/o OT, 7.2 mill with OT
Which of the following is/are not among the factors that affect worker productivity? - Answer: % of
newly-hired workers, % of superior materials
Which of the following does not affect the reject rates at the plants - Answer: Installation of plant
upgrade C
Which of the following are the 5 measures of performance? - Answer: ROE, EPS, credit rating, stock
price, image rating
Which of the following is the most important factor in determining a company's unit sales and
market share for PRIVATE-LABEL footwear in a particular geographic region? - Answer: The
company's bid price
Which of the following are factors in determining a company's credit rating? - Answer: Default risk
ratio, D/A ratio, interest coverage ratio
Which of the following best describes the materials the company uses? - Answer: Standard,
Superior
, Which of the following are components of the compensation package for production workers? -
Answer: Base wages, incentive pay per non-def, OT
Which of the following most accurately describes your company's plant operations? - Answer:
Standard and superior materials are sourced from outside suppliers at prices that vary according to
global D-S conditions; the company's production workers are compensated on the basis of both base
pay and incentive payments per non-defective pair produced.
What are the 4 geographic regions? - Answer: NA, EA, AP, LA
In year 11, companies can expect to sell... - Answer: an avg of 4.84 mil branded, avg of 800k private,
although sales at some companies may run higher or lower than the avg due to differing levels of
competitive effort
The market for PRIVATE-LABEL footwear is projected to grow... - Answer: 10% annual for all regions
years 11-15, 8.5% annual for all regions years 16-20
A footwear-maker's price competitiveness in selling branded footwear to retailers in a particular
geographic region is determined by? - Answer: whether its wholesale price is +/- the avg price of all
companies competing in that geographic region. OR
The market for BRANDED footwear is projected to grow... - Answer: 9-11% in LA and AP years 11-15,
7-9% annually in same regions 16 onward
The factors that affect a company's S/Q rating include: - Answer: Plant upgrade C (raises whole star),
TQM/6sigma spending, expenditures for new styling/features per model.
The company's shipments of newly-produced BRANDED & PRIVATE-LABEL footwear from it's plants
to its regional dist centers are subject to - Answer: any applicable import tariffs and exchange rate
adjustments
The interest rate a company pays on loans outstanding depends on? - Answer: its credit rating
The market for PRIVATE-LABEL is projected to grow... - Answer: 10% annually all regions years 11-
15, 8.5% annually all regions years 16-20
