BSG FINAL BSG FINAL ACTUAL EXAM LATEST

BSG FINAL/ BSG FINAL ACTUAL EXAM LATEST

UPDATED QUESTION 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 1 / 2

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 $5.00 Labor costs/pair = 20,000/3,200 = $6.25 After increase in productivity = 20,000/(3,200*1.25) = $5.00 Reduction = $1.25

• 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 four geographic 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 that more 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 managers anticipated, given the estimates they entered for the various industry avg. affecting internet sales and ....

• competition from one or more rivals was stronger than anticipated.....
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