BUSINESS STRATEGY GAME QUIZ 1

1. In managing production worker compensation and expenditures for best practice training, the overriding objective of company managers should be to • establish total compensation packages for production workers that are close to the highest in the industry in each geographic region where its production facilities are located--this is because companies with the highest total annual compensation packages attract highly-motivated workers with the skills needed to achieve the highest levels of labor productivity. • make sure its annual base wage for production workers is always above the average base wage paid by all companies in those regions where it has production facilities. • achieve labor costs per pair produced that are at worst below the industry average and at best are very close to (or even equal to) the industry-low in each region where the company has production facilities. • Achieve the highest possible worker productivity (pairs produced per worker per year). • Establish an incentive pay per non-defective pair that results in the lowest feasible reject rate for branded pairs produced. 2. Which of the following results from the latest decision round is most helpful in guiding the efforts of company managers to improve their company's costs and profitability in the upcoming decision round? • The data on materials prices at the top of p. 4 of the FIR • The comparative financial data on p. 5 of the FIR • The facility space and production equipment data at the bottom of page 4 of the FIR • The celebrity endorsement data and the 4 graphs showing branded prices and S/Q rating trends in each of the four geographic regions on p. 8 of the FIR. • The benchmarking data on pp. 6 and 7 of the FIR