BSG
Comprehensive
Exam
(Fall
2024)
The
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
want
to
succeed
in
creating
a
differentiation-based
competitive
advantage
(And
a
potential
cost
advantage
in
achieving
the
differentiation)
that
is
difficult
for
rivals
to
quickly
or
easily
copy
(because
every
strategic
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
the
managers
have
to
-
ANS·
Do
a
better
job
then
rivals
in
identifying
and
implementing
ways
to
become
very
cost-efficient
in
producing
and
marketing
350-500
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·
Low
tariff
costs
on
footwear
sales
in
Latin
America
(because
no
import
tariffs
are
paid
on
footwear
produced
at
the
Latin
American
plant
and
shipped
to
the
distribution
warehouses
in
Latin
America)
A
company
stands
a
better
chance
of
achieving
a
sustainable
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
the
competitive
intelligence
report)
Which
of
the
following
actions
does
not
help
a
company's
social
responsibility
strategy
result
in
a
higher
image
rating?
-
ANS·
Reducing
the
prices,
the
company
charges
its
customers
for
branded
footwear
What
does
help
a
company's
social
responsibility
strategy
and
results
in
a
higher
image
rating
-
ANS·
Using
environmentally
friendly
or
'Green'
materials
in
producing
footwear
at
the
company's
plants
·
Using
recycled
packaging
materials
to
box
each
pair
of
athletic
footwear
at
the
company's
distribution
centers
·
Making
donations
to
charities
and
charitable
causes
·
Investing
to
improve
energy
efficiency
and
the
use
of
renewable
sources
at
company
facilities.
It
makes
good
economic
sense
for
company
managers
to
consider
investing
$3.5
million
per
million
pairs
of
capacity
for
a
plant
facilities
upgrade
that
will
boost
labor
productivity
by
25%.
-
ANS·
At
a
plant
that
currently
has
labor
productivity
of
3,200
pairs
per
worker
and
total employee
compensation
of
$20,000
annually
because
the
upgrade
will
cause
labor
costs
per
pair
produced
to
decline
from
$6.25
to
$5.00
o
Labor
cost
per
pair
=
Compensation/Productivity
o
Labor
cost
per
pair
initially
=
20,000/3,200
=
$6.25
o
After
increase
in
productivity
=
20,000/
(3,200*1.25)
=
$5.00
o
Reduction
=
6.25
*
5.00
=
$1.25
Which
of
the
following
combinations
of
actions
will
likely
provide
the
biggest
competitive
benefits
in
helping
a
company
achieve
a
differentiation-based
competitive
advantage
over
some/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
with
a
7-star
or
higher
S/Q
rating
in
all
four
geographic
regions,
and
offering
a
rebate
of
$9
in
all
four
geographic
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
offerings
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/W
ratings,
many
models/styles,
high
celebrity
appeal
ratings,
and
above-average
advertising
expenditures
Which
of
the
following
is
NOT
of
much
significance
to
company
manager
in
deciding
whether
profitable
opportunity
exist
to
build
(or
purchase)
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
year
10
What
IS
significant
to
company
managers
in
deciding
whether
profitable
opportunity
exist
to
build
(or
purchase)
additional
plant
capacity
in
the
upcoming
decision
round?
-
ANS·
The
growth
in
branded
demand
and
private-label
demand
over
the
next
3
years
(as
reported
in
each
year
FIR)
·
How
branded
pairs
available
for
sale
in
each
geographic
region
in
the
past
year
compared
with
projected
branded
demand
and
private
label
demand
in
each
geographic
region
over
the
next
three
years
as
shown
in
each
year
FIR
·
The
size
of
beginning
inventories
of
branded
footwear
in
each
geographic
region
reported
in
the
most
recent
FIR
·
Whether
the
most
recent
years
FIR
shows
that
the
industry
already
has
more
than
enough
production
capacity
worldwide
to
supply
the
combined
demand
for
branded
footwear
and
private-label
footwear
worldwide
for
each
of
the
next
three
years
If
a
company's
actual
results
for
revenues,
net
profits,
EPS,
and
ROE
turn
out
to
be
worse
than
projected
then
it
is
usually
because
-
ANS·
The
competitive
efforts
exerted
by
rival
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