BSG Comprehensive Study Exam Questions With
100% Verified Solutions
Q: Production improvement option B (with capital costs of $1.6 million per million
pairs of production capacity and annual depreciation costs of 10%) that reduces
production run setup costs by 50% each year makes the most economic sense in
which of the following circumstances? - ANSWER -A: Company managers expect
to produce 350 models/styles and 4 million pairs of branded footwear on an
ongoing basis at a new 4-million pair capacity facility in Latin America--annual
production run setup costs for 350 models of branded footwear are $9 million. ✓
Q: A strategy to be a low-cost provider of branded footwear is unlikely to result in
the company being one of the best-performers in the industry unless the company's
management team... - ANSWER -A: proves adept in operating the company as cost
effectively (if not more cost effectively) than rivals that are also striving to be a
low-cost provider of branded footwear. ✓
Q: A company's management team should seriously consider bidding for a
private-label footwear contract in a particular geographic region when... -
ANSWER -A: the data in the Comparative Competitive Efforts section of the latest
Competitive Intelligence Report indicates that some of the winning bidders for
private-label footwear were able to win contracts at an offer price above their
selling price for branded footwear. ✓
Q: Which of the following statements about striving to reduce labor costs per pair
produced at each of the company's plants is true? - ANSWER -A: A company
pursuing a low-cost provider strategy is better able to pursue actions aimed at
achieving low labor costs per pair produced in each of its production facilities (as
compared to the labor costs of companies with production facilities in the same
regions) than is a company pursuing a strategy to differentiate its product offering
from rivals in ways that enhance buyer appeal for its branded footwear. ✓
Q: While contracting with celebrities to endorse a company's brand adds to the
competitive power of its product offering vis-a-vis the offerings of rivals, one of
the big risks in deciding how much a company can afford to bid for an upcoming
celebrity is... - ANSWER -A: overestimating the size of the gains in branded sales
volume and revenue that the company is likely to realize should it be the winning
, bidder and, therefore, bidding more than the celebrity's endorsement turns out to be
worth. ✓
Q: Which one of the following has a direct effect on helping boost a company's
image rating? - ANSWER -A: Increases in the worldwide average S/Q rating of a
company's branded footwear ✓
Q: Important lesson about competing in a globally competitive marketplace from
The Business Strategy Game simulation: - ANSWER -✓ The shifting winds of
competition in various segments of the athletic footwear marketplace pressure
managers to make ongoing adjustments of one kind or another in their overall
strategy and competitive efforts in each region to improve their company's
competitiveness vis-a-vis rivals and enhance its overall performance.
Q: Managerial value of regularly consulting data in Year-to-Year Performance
Highlights report: - ANSWER -✓ Review the trends in the branded production
outcomes in each region and the trends in the pairs sold, market shares, and
operating profit per pair in each region and then pursue corrective actions where
needed in the upcoming decision round.
Q: Time Series Competitive Efforts section of CIR is particularly useful for: -
ANSWER -✓ Drawing conclusions about what levels of competitive effort your
company's two closest competitors may employ in the upcoming year and then
determining what levels of competitive effort your company may need to employ
on these same or other competitively relevant factors to successfully outmaneuver
and outperform one or both of them.
Q: If a company invests in production improvement option D, labor costs per pair
produced will decline: - ANSWER -✓ From $8.00 per pair to $5.33 for a
production facility in Europe-Africa that currently has labor productivity of 4,000
pairs per worker and total regular compensation (which does not include overtime
pay) of $32,000 annually.
Q: Most effective approach to reduce/eliminate impact of tariffs in Europe-Africa:
- ANSWER -✓ Build and equip a production facility in Europe-Africa and then
expand it as may be needed to supply all (or at least most) of the pairs the company
intends to try to sell in Europe-Africa.
100% Verified Solutions
Q: Production improvement option B (with capital costs of $1.6 million per million
pairs of production capacity and annual depreciation costs of 10%) that reduces
production run setup costs by 50% each year makes the most economic sense in
which of the following circumstances? - ANSWER -A: Company managers expect
to produce 350 models/styles and 4 million pairs of branded footwear on an
ongoing basis at a new 4-million pair capacity facility in Latin America--annual
production run setup costs for 350 models of branded footwear are $9 million. ✓
Q: A strategy to be a low-cost provider of branded footwear is unlikely to result in
the company being one of the best-performers in the industry unless the company's
management team... - ANSWER -A: proves adept in operating the company as cost
effectively (if not more cost effectively) than rivals that are also striving to be a
low-cost provider of branded footwear. ✓
Q: A company's management team should seriously consider bidding for a
private-label footwear contract in a particular geographic region when... -
ANSWER -A: the data in the Comparative Competitive Efforts section of the latest
Competitive Intelligence Report indicates that some of the winning bidders for
private-label footwear were able to win contracts at an offer price above their
selling price for branded footwear. ✓
Q: Which of the following statements about striving to reduce labor costs per pair
produced at each of the company's plants is true? - ANSWER -A: A company
pursuing a low-cost provider strategy is better able to pursue actions aimed at
achieving low labor costs per pair produced in each of its production facilities (as
compared to the labor costs of companies with production facilities in the same
regions) than is a company pursuing a strategy to differentiate its product offering
from rivals in ways that enhance buyer appeal for its branded footwear. ✓
Q: While contracting with celebrities to endorse a company's brand adds to the
competitive power of its product offering vis-a-vis the offerings of rivals, one of
the big risks in deciding how much a company can afford to bid for an upcoming
celebrity is... - ANSWER -A: overestimating the size of the gains in branded sales
volume and revenue that the company is likely to realize should it be the winning
, bidder and, therefore, bidding more than the celebrity's endorsement turns out to be
worth. ✓
Q: Which one of the following has a direct effect on helping boost a company's
image rating? - ANSWER -A: Increases in the worldwide average S/Q rating of a
company's branded footwear ✓
Q: Important lesson about competing in a globally competitive marketplace from
The Business Strategy Game simulation: - ANSWER -✓ The shifting winds of
competition in various segments of the athletic footwear marketplace pressure
managers to make ongoing adjustments of one kind or another in their overall
strategy and competitive efforts in each region to improve their company's
competitiveness vis-a-vis rivals and enhance its overall performance.
Q: Managerial value of regularly consulting data in Year-to-Year Performance
Highlights report: - ANSWER -✓ Review the trends in the branded production
outcomes in each region and the trends in the pairs sold, market shares, and
operating profit per pair in each region and then pursue corrective actions where
needed in the upcoming decision round.
Q: Time Series Competitive Efforts section of CIR is particularly useful for: -
ANSWER -✓ Drawing conclusions about what levels of competitive effort your
company's two closest competitors may employ in the upcoming year and then
determining what levels of competitive effort your company may need to employ
on these same or other competitively relevant factors to successfully outmaneuver
and outperform one or both of them.
Q: If a company invests in production improvement option D, labor costs per pair
produced will decline: - ANSWER -✓ From $8.00 per pair to $5.33 for a
production facility in Europe-Africa that currently has labor productivity of 4,000
pairs per worker and total regular compensation (which does not include overtime
pay) of $32,000 annually.
Q: Most effective approach to reduce/eliminate impact of tariffs in Europe-Africa:
- ANSWER -✓ Build and equip a production facility in Europe-Africa and then
expand it as may be needed to supply all (or at least most) of the pairs the company
intends to try to sell in Europe-Africa.
