Business Strategy Game: Exam Questions and Answers | Exams Business Administration

BSG FINAL/ BSG FINAL ACTUAL EXAM LATEST

UPDATED 2024-2025 QUESTIONS AND CORRECT

DETAILED

ANSWERS A+GRADE.

The benefits of pursuing a strategy of social responsibility and corporate citizenship

include:

- ANSWER-The positive impact that such a strategy has on the company's image

rating, provided the company spends a meaningful amount on socially responsible

activities and such spending is sustained over a multi-year period.

If a company's managers If a company's manager wants to succeed in creating a

differentiation based on competitive advantage (and a potential cost advantage in

achieving this differentiation) that is difficult for rivals to quickly or easily copy (because

every strategy move a company makes to outcompete rivals and gain a competitive

advantage is not apparent from information contained in the FIR and the competitive

intelligence report), then manages have to

- ANSWER-do a better job than rivals in identifying and implementing ways to become

very cost efficient in producing and marketing 350 to 500 models/styles of branded

footwear that also have the highest S/Q rating in the industry.

Valid reasons to consider building a new plant in Latin America include

- ANSWER- lower tariff on footwear sales in LA (because no import tariffs are paid

on footwear produced at the LA plant and shipped to the distribution warehouse in

LA)

A company stands a better chance of achieving cost-based competitive advantage over

rivals if its managers

- ANSWER-pursue a number of cost-reducing initiatives that can be concealed from

rivals (because such initiatives are not part of the information contained in the FIR and

Competitive Intelligence Reports)

are successful in identifying what actions promote greater cost efficiency across all

aspects of company operations and in actually achieving the cost-reducing opportunity

without overspending to do so, while many rivals also striving to win a low-cost

advantage fall short in their efforts to achieve matching cost reductions.

Which of the following does NOT help a company's social responsibility strategy results

in a higher image rating

- ANSWER-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

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BSG FINAL/ BSG FINAL ACTUAL EXAM LATEST

UPDATED 2024- 2025 QUESTIONS AND CORRECT

DETAILED

ANSWERS A+GRADE.

The benefits of pursuing a strategy of social responsibility and corporate citizenship include:

ANSWER-The positive impact that such a strategy has on the company'simage rating, provided the company spends a meaningful amount on socially responsible activities and such spending is sustained over a multi-year period. If a company's managers If a company's manager wants to succeed in creating a differentiation based on competitive advantage (and a potential cost advantage in achieving this differentiation) that is difficult for rivals to quickly or easily copy (because every strategy move a company makes to outcompete rivals and gain a competitive advantage is not apparent from information contained in the FIR and the competitive intelligence report), then manages have to
ANSWER-do a better job than rivals in identifying and implementing ways to become very cost efficient in producing and marketing 350 to 500 models/styles of branded footwear that also have the highest S/Qrating in the industry. Valid reasons to consider building a new plant in Latin America include
- ANSWER-lower tariff on footwear sales in LA (because no import tariffs are paid on footwear produced at the LA plant and shipped to the distribution warehouse in LA) A company stands a better chance of achieving cost-based competitive advantage over rivals if its managers
ANSWER-pursue a number of cost-reducing initiatives that can be concealed from rivals (because such initiatives are not part of the information contained in the FIR and Competitive Intelligence Reports)
are successful in identifying what actions promote greater cost efficiency across all aspects of company operations and in actually achieving the cost-reducing opportunity without overspending to do so, while many rivals also striving to win a low-cost advantage fall short in their efforts to achieve matching cost reductions. Which of the following does NOT help a company's social responsibility strategy results in a higher image rating
ANSWER-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.

ANSWER-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%
ANSWER-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. Labor costs/pair = 20,000/3,200 = $6. After increase in productivity = 20,000/(3,200*1.25) = $5. Reduction = $1.
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 – ANSWER-Offering 400 or more models/styles to buyers in all four geographic regions, maintaining a celebrity appeal rating of 200 or higher in all fourgeographic 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
- ANSWER-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?
- ANSWER-Information in the most recent FIR indicates thatmore 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.
ANSWER-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 managersanticipated, given the estimates they entered for the various industry avg. affecting internet sales and ....
competition from one or more rivals was stronger than anticipated.....

pursuing actions to boost the company's total profits and maintaining a high (above 75%) dividend payout ratio

Which one of the following results from the latest decision round are least important in providing guidance to company managers in making their strategic moves and decisions to improve their company's competitiveness and rank among the top- performing companies in the upcoming decision round? - ANSWER-Each company's performance on EPS, ROE, Stock price, credit rating and image rating

the dividend data, credit rating, income statement, balance sheet for each company that are part of the Financial Performance summary on p.5 FIR Managers are well-advised to consider whether the company can operate more profitably by selling some/all of its plant capacity in one or more geographic - ANSWER- global demand for branded and private-label footwear is so far below global plant capacity that it will be impossible for most all comanies to profitably operate the plants at full calacity for amay ears to come A company cannot effectively differentiate its branded footwear from the brands of rivals b - ANSWER-charging a higher wholesale price to footwear retailers in all four geographic regions than all other companies in the industry
spending more mone on CSR and citizenship activities than most all other rivals If a company has an unappealingly low branded market share in north America because it is being outcompeted by various rival companies, then company managers shoul - ANSWER-immediatly review the companys competitive weaknesses in NA as shown at the bottom the Competitive Intelligence Report and explore the meirts of actions to correct most or all of them, in addition, they should take actions that they believe will result in the company having at least 2 important competitive strengths via NA rivals in upcoming decision round Flawed ways to pursue a differentiation strategy include - ANSWER-Striving only to achieve weak differentiation (as opposed to strong differentiation) from the branded footwear offerings of other companies also pursuing a differentiation strategy
Overspending on efforts to differentiate the company's branded footwear so that the price the company has to charge to cover costs per pair is "too far above" the prices being charged by other rivals to capture a profitable volume of sales.

Failing to produce branded footwear with an S/Q rating that is at least two-stars above the industry average in all four geographic regions. It is because if there will be no unique features the product will most likely to be fail. A company's strategy to be a low-cost provider of branded footwear can fail to produce good company performance when managers fail to - ANSWER-achieve branded cost per pair sold ( including manufacturing cost , shipping cost , import tariffs and exchange rate adjustments) that are at least close to the industry low in each geographic region , if not actually equal to the industry low

or Under what circumstances should a company's managment team give serious consideration to entering a bid to supply private-label footwear to chanin retailers in a particular region? - ANSWER--they expect to have idle production capacity at one or mre plants after producing all the branded pairs needed to meet demand in upcoming yr

avg margin over direct cost exceeds $10/pair sold
when number of pairs of branded footwear that comp panning to produce at particular plant is 300,000 pairs or more below the plant's full production capacity inc. overtime which one of the following does NOT help boost a company's image rating? - ANSWER-
paying total compensation to plant employees that is below the industry average
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. The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in LA - ANSWER-build a plant in LA and then expand its capacity as may be needed so that the plant has the capability to supply all of the pair comp intends to sell in LA profit-enhancing appeal that a company can pursue to reduce its exposure to adverse exchange rate adjustments to the manufacturing costs of pairs shipped to a distribution warehouse form a plant in a diff geog region is to - ANSWER--build sufficient pant capacity in each of the 4 regions to greatly reduce the need to ship pairs to a distribution warehouse from a plant in a different geographic region - sucha strategy...benefit of cutting tariff pmt on imported footwear Adjust the company's pricing and marketing efforts each decision round to sell more pairs in regions where exchange rate adjustments are favourable and fewer pairs in regions where the adjustments are unfavourable; such shifts tend to boost profits in regions with unfavourable adjustments. If A Company Is Pursuing A Strategy To Produce Branded Footwear At A Low Cost Relative To Any Other Rival Firm, Then It Should Regularly Review The Plant And Production Cost Benchmarking Data In Each Year's Footwear Industry Report To - ANSWER-gauge whether its efforts to reduce total manufacturing costs per branded pair produced have been more/less successful than other companies pursuing much the same outcome and to learn what areas of plant operations may warrant further actions to reduce costs. Which of the following statements about striving to reduce labor costs per pair produced at each of the company's plants is true? - ANSWER--to achieve labor costs per pair produced that are "low" compared to ... company managers must--each decision round- seek out a combination of base pay increases, piecework incentives per non-defective pair ... that is projected to drive down labor costs even further

All companies, regardless of the strategy being employed, should pursue actions to manage employee compensation and labor productivity in a manner that results in labor

costs per pair produced equal to (or very close to) the industry-low in each region where the company has plants.

company cannot achieve labor costs per pair produced that not only are below the industry average but are also close to the lowest in the industry (in each geographic region where it has plants) unless its annual total compensation of plant workers is considerably below the average total compensation paid by all companies with plants in these same regions. Which one of the following will NOT help a company boost its credit rating from A- to A?

ANSWER-a decline in the company' current ratio from 2 to 1. Which one of the following is a way to improve the S/Q rating of branded pairs produced at a particular plant - ANSWER--increasing expenditures for TQM/Six Sigma programs
high quality material a dependable and appealing way for managers to try to boost their company's EPS - ANSWER--achieve a sizable cost-based competitive advantage over rivals that company managers are savvy enough to sustain; as the market demand for branded ft grows and the company exploits cost advantages by underpricing most rivals in 4 regions, the resulting sales volumes and revenue gains will typically spur increases in EPS
Repurchase shares of the company's common stock. In Supplying Private-label Footwear To Chain Retailers, The Sizes Of A Company's Margins Over Direct Costs (as Reported On P. 6 Of Each Issue Of The FIR) Should Be Viewed As - ANSWER-how much private-label sales added to the company's pretax profits, assuming that the company's margins on branded footwear were sufficient to cover all administrative expenses and all interest costs. The plant and production benchmarking cost data on p. 6 of each issue of the Footwear Industry Repor - ANSWER--are worth careful scrutiny be the mang because they help to determine the degree of comp costs for the benchmarked cost category competitive with rival companies
little use in making production decisions because don't tell which had lowest production labor cost The most important results from the latest decision round that company managers need to ... to guide their strategic moves and decisions to improve company's competitiveness and rank among the top-performing company's in the - ANSWER- Market snapshot data in ... The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Europe-Africa - ANSWER-Build a plant in EA

Companies opting to differentiate their branded footwear from rival brands by offering buyers 500 models/styles to choose from should consider reducing the $14 mil annual costs for production run setup costs associated with producing 500 models at each plant by - ANSWER-by investing in upgrade option B at one or more plants which one of the following is not a way to grow a comanys sales volume in the intenet segment in EA? - ANSWER-refrain from bidding to supply chain retailers in EA with private - label becasue such slaes tarnisha comanys image.... based on teh ind low,.. p 7 of each issue of FIR, which one of the following would correctly indicate that one or more elements of your companys costs are too high vs rivals? - ANSWER-your comanys operating profit margin in the whlesale segment of NA region is only 5% above the industry low based on the above data for your comany, ... - ANSWER-your company had a price based competitive disadvantage of 13% based on the above data for ur comany... - ANSWER-your company had three very sizable negative percentage compatitive disadvantage in wholesale segment related to delivery time

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BSG FINAL/ BSG FINAL ACTUAL EXAM LATEST

UPDATED 2024- 2025 QUESTIONS AND CORRECT

DETAILED

ANSWERS A+GRADE.