BSG COMPREHENSIVE EXA M (FALL 2019/2024) WITH 100% COMPLETE SOLUTIONS RAT ED A (120 QUESTIONS AND DETAI LED ANSWERS ) A state -wide alliance of independent hospitals has formed in order to do group purchasing of m edical supplies. Group purchasing allows the hospital alliance to negotiate lower prices with suppliers because of the large quantity of materials ordered. This is an example of the advantage of ____ resulting from an alliance. economies of scale. The plant upgrade option that reduces production run setup costs by 50% each year and costs $8 milli on per million pairs of plant capacity (which causes depreciation costs at the plant to rise by 5% of the capital cost of the upgrade) merits immediate consideration by company managers when · The company has a new 1 million -pair plant in Europe -Arica read y to go into production in Year 14 and the company's strategy calls for this plant to produced 500 models/styles (which entails annual production run setup costs of $14 million) every year through year 20. While contracting with celebrities to endorse a company's brand adds to the competitive power of its product offering vis -à-vis the offerings of ri vals · One of the big risks of bidding to win contracts for celebrity endorsements is that it is easy to end up overspending to win a contract because it is so hard to judge just how big the actual benefit (of value) of winning the contract for a particula r celebrity will prove to be. The industry low, industry average, and industry high benchmarks for the costs per branded pair sold in each geographic region (including manufacturing costs, shipping, import tariffs, and exchange rate adjustments), warehouse expenses pe branded pair sold, marketing expenses per branded pair sold, and administration expenses per branded pair sold that appear in each issue of the footwear industry report · Are worth careful scrutiny by the managers of all companies because when the benchmarking data signals that a company's costs for one or more of the benchmarks are out of line, managers are well advised to take corrective action in the next decision round. Company managers should give strong consideration to bidding for private label contracts in one or more geographic regions in the upcoming decision round when · They expect to have idle production capacity at one or more pla nts after producing all the branded pairs needed to meet anticipated demand in the upcoming year Which one of the following does NTO help boost a company's image rating? · Paying total compensation to plant employees that is below the industry average What DOES help boost a company's image rating · Reducing the price, the company charges for its branded footwear · Sustained spending for social responsibility and corporate citizenship initiatives · Being successful in winning celebrity endorsement contracts and thereby boosting the company's celebrity appeal ratings · Raising advertising to levels above the industry average in each geographic region The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Latin America is to · Build a plant in Latin America and then expand its capacity as may be needed so that the plant has the capability to supply all (or at least most ) of the pairs the company intends to try to sell in Latin America An appealing strategy that a company can use to reduce exposure to adverse exchange rate adjustments to the costs of pairs shipped to a distribution warehouse from a plant in a different geographic region is to · Build sufficient plant capacity in each of the four geographic regions to greatly reduce (maybe even eliminate) the need to ship pairs to a distribution warehouse from a plant in a different geographic region - such a strategy has the added benefit of cutting tariff payments on imported footwear 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 · Gauge whether its efforts to reduce total manufacturing cost per branded pair produced have been more/less successful than other companies pursuing much the same outcome and to learn what areas of plant ope rations may warrant further actions to reduce costs Which one of the following will NOT help a company boosts its credit rating from a A- to A? · A decline in the company's current ration from 2.0 to 1.5 Which of the following statements about striving to reduce labor costs per pair produced at each of the company's plants is true? · To achieve labor costs per pair produced at a particular plant that ar e "low" compared to their plants in the same geographic region, company manager must - each decision round - seek out a combination of base pay increases, piecework incentives per non -defective pair produced, and expenditure for best practices training at t he plan that is projected to drive down labor costs even further What WILL help a company boost its credit rating from A - to A?
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