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BSG Final
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- RSM100 Midterm 1 Prep
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- RSM100 Midterm 1 Prep
Exam of 10 pages for the course RSM100 Midterm 1 Prep at RSM100 Midterm 1 Prep (BSG Final)
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BSG FinalThe benefits of pursuing a strategy of social responsibility and corporate citizenship
include: - ANS-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 - ANS-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 - ANS-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 - ANS-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 - ANS-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. - ANS-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% - ANS-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 - ANS-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 - ANS-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? - ANS-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. - ANS-the competitive
efforts exerted by rival companies to capture sales and market share for themselves in
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