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BSG Quiz 1 Answers

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The factors that affect the reject rates at the company’s footwear production facilities include
the size of the incentive payment per non-defective pair produced, best practices training expenditures per worker, spending for TQM/Six Sigma quality control efforts, and the number of models/styles comprising the company’s product line.
 
Which of the following is the most important competitive factor in determining a company’s ability to secure contracts to supply private-label footwear to chain retailers in a particular geographic region?
The company’s price offer
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific
 
Which of the following statements about the average wholesale price a company charges footwear retailers in a given geographic region is incorrect?
So long as a company has a big price-based competitive advantage in a region’s Wholesale Segment, it has the ability to achieve an attractively-large sales volume and market share even if it suffers from competitive disadvantages on other competitively-relevant factors.
 
Which of the following currencies are involved in causing favorable or unfavorable exchange rate adjustments to a company’s costs and revenues?
Singapore dollars, euros, U.S. dollars, and Brazilian reals
 
Which of the following statements about the impact of a company’s competitive efforts in a region on its regional market share and number of branded pairs sole is false?
The biggest possible competitive advantage a company can achieve in a given region’s Internet Segment is to offer free shipping and thereby capture the biggest number of pairs sold and biggest market share of any company in that region’s Internet Segment.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments.
 
Which of the following are factors in determining a company’s credit rating?
its default risk ratio, debt-asset ratio, and interest coverage ratio.
 
Which of the following most accurately describes your company’s production operations?
TQM/Six Sigma quality control programs and best practices training are a means of increasing the S/Q ratings of both branded and private-label footwear produced at each production facility.
 
Which of the following are components of the total compensation package for production workers at your company’s production facilities?
Base wages, incentive payments per non-defective pair produced, fringe benefits, and any overtime pay
 
The projected growth in buyer demand for branded athletic footwear is
9-11% annually in Latin America and Asia-Pacific during Years 11-15 and 7-9% annually in these two regions during Years 16-20.
 
The factors that affect worker productivity include
how much emphasis is placed on inventive compensation (as measured by the percentage of the company’s total compensation package accounted for by incentive pay) and expenditures for best practices training.
 
The interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of
its credit rating and the length of the term over which repayment is scheduled to occur
 
Which of the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
Europe-Africa, Latin America, Asia-Pacific, and North America
 
Which of the following statements about the importance of each competitive factors in determining company sales volume and market shares in a particular geographic region is false?
Tiny cross-company differences in competitive effort on a highly influential competitive factor (like S/Q ratings, the number of models/styles offered, and selling prices) nearly always have a bigger impact on company sales/market share outcomes in a region than do large differences on less influential competitive factors.
 
The three competitive factors that impact only Internet Sales and market share in a region include
expenditures for search engine advertising
 
The projected growth in buyer demand for private-label athletic footwear is
10-12% annually in the Asia-Pacific and Latin America regions during Years 16-20.
 
Which one of the following is NOT one of the competitive factors that impact both Internet Sales and Wholesale Sales of branded footwear?
Search engine advertising
 
Which one of the following is NOT one of the factors that affects the S/Q rating of a company’s footwear?
The percentage size of a production facility’s reject rates for branded and private-label footwear due to defective workmanship and poorly-maintained equipment
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Stock prices, credit rating, earnings per share, ROE, and image rating
 
In year 11, footwear companies can expect to sell
an average of 4.84 million branded pairs and an average of 800,000 private label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The interest rate a company pays on loans outstanding depends on
its credit rating
 
The company’s present production capability (as of Year 10) is
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime
 
The factors that affect a company’s S/Q rating include:
the percentage use of superior materials; a company’s cumulative spending for TQM/Six Sigma quality control programs; the use of best practices training; and expenditures or new styling/features per model
 
Which one of the following does not affect the reject rates?
The installation of plant upgrade C
 
Which of the following are the 4 geographic regions in which the company sells branded and private label athletic footwear?
Asia-Pacific, Europe-Africa, Latin America, and North America
 
The market for PRIVATE label athletic footwear is projected to grow
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period
 
Which of the following most accurately describes your company’s plant operations?
Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which of the following is/are not among the factors that affect worker productivity?
The percentage of newly-hired workers and the percentage use of superior materials
 
The company’s shipments of newly produced branded and private label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S Dollars, and Brazilian reals
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, Stock price, Credit rating, and image rating
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
The market for BRANDED athletic footwear is projected to grow
5-7% annually in North America and Europe-Africa during Year 11-Year 15 and 3-5% annually in these regions during the Year 16-Year 20 period.
 
Which of the following are factors in determining a company’s credit rating?
Its debt-asset ratio, default risk ratio, and interest coverage ratio
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay.
 
A footwear makers price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
whether its wholesale price is above or below the average price of all companies competing in that geographic region
 
The reject rates at the company’s footwear plants are a function of
the size of the incentive payment per non defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control efforts, the number of models/styles comprising the company’s product line, and the installation of plant upgrade option A
 
Which of the following is not among the factors that affect worker productivity?
Whether plant upgrade option A has been installed
 
Which of the following currencies are NOT involved in affecting the operations of your company’s business
Swiss francs, south African rand, Chilean pesos, and Turkish lira
 
Which of the following most accurately describes your companys plant operations?
TQM/Six sigma quality control programs and best practices training are used to boost the S/Q ratings of both branded and private label footwear
 
The company currently has production facilities to make athletic footwear in
Asia-Pacific and North America
 
Which of the following is NOT a factor is determining a company’s unit sales and market share of branded footwear in a particular geographic region? (DO NOT confuse with question 15)
The number of new performance features built into each year’s models/styles
 
Which one of the following is not one of the factors that affect the S/Q rating of a company’s footwear?
How much is spent to inspect newly produced pairs and avoid shipping defective shoes
 
Which one of the following does not affect the reject rates at a company’s plants?
The s/q rating of pairs being produced and the use of plant upgrade option B
 
The factors that affect worker productivity include
Whether plant upgrade option D has been installed, the size of incentive payments per non defective pair, base pay increases, how favorably a company’s compensation package compares with the industry average compensation package, and expenditures for practices training
 
Which of the following is not an accurate description of your company’s plant operations?
A private label footwear is outsourced from contract manufacturers in Latin America and the Asia-Pacific at prices equal to $8 per pair
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
Footwear features and footwear durability
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private label footwear in a particular geographic region?
The company’s bid price
 
Which of the following is/are not among the factors that affect worker productivity? (same as 9?) **LOOK into
S/Q Ratings and the warranty claim rate on recently sold footwear
 
The market for branded athletic wear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during Year11-Year 15 and 7-9% annually in these regions during the year 16-year 20 period
 
The market for branded athletic wear is projected to grow
9-11% annually in Latin and Asia Pacific during the year 11 – year 15 period and 5-7% annually in North America and Europe-Africa during the year 11-15 period
 
In year 11, footwear companies can expect to sell
an average of 4.84 million branded pairs and an average of 800,000 private label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The interest rate a company pays on loans outstanding depends on
its credit rating
 
The company’s present production capability (as of Year 10) is
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime
 
The factors that affect a company’s S/Q rating include:
the percentage use of superior materials; a company’s cumulative spending for TQM/Six Sigma quality control programs; the use of best practices training; and expenditures or new styling/features per model
 
Which one of the following does not affect the reject rates?
The installation of plant upgrade C
 
Which of the following are the 4 geographic regions in which the company sells branded and private label athletic footwear?
Asia-Pacific, Europe-Africa, Latin America, and North America
 
The market for PRIVATE label athletic footwear is projected to grow
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period
 
Which of the following most accurately describes your company’s plant operations?
Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which of the following is/are not among the factors that affect worker productivity?
The percentage of newly-hired workers and the percentage use of superior materials
 
The company’s shipments of newly produced branded and private label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S Dollars, and Brazilian reals
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, Stock price, Credit rating, and image rating
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
The market for BRANDED athletic footwear is projected to grow
5-7% annually in North America and Europe-Africa during Year 11-Year 15 and 3-5% annually in these regions during the Year 16-Year 20 period.
 
Which of the following are factors in determining a company’s credit rating?
Its debt-asset ratio, default risk ratio, and interest coverage ratio
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay.
 
A footwear makers price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
whether its wholesale price is above or below the average price of all companies competing in that geographic region
 
The reject rates at the company’s footwear plants are a function of
the size of the incentive payment per non defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control efforts, the number of models/styles comprising the company’s product line, and the installation of plant upgrade option A
 
Which of the following is not among the factors that affect worker productivity?
Whether plant upgrade option A has been installed
 
Which of the following currencies are NOT involved in affecting the operations of your company’s business
Swiss francs, south African rand, Chilean pesos, and Turkish lira
 
Which of the following most accurately describes your companys plant operations?
TQM/Six sigma quality control programs and best practices training are used to boost the S/Q ratings of both branded and private label footwear
 
The company currently has production facilities to make athletic footwear in
Asia-Pacific and North America
 
Which of the following is NOT a factor is determining a company’s unit sales and market share of branded footwear in a particular geographic region? (DO NOT confuse with question 15)
The number of new performance features built into each year’s models/styles
 
Which one of the following is not one of the factors that affect the S/Q rating of a company’s footwear?
How much is spent to inspect newly produced pairs and avoid shipping defective shoes
 
Which one of the following does not affect the reject rates at a company’s plants?
The s/q rating of pairs being produced and the use of plant upgrade option B
 
The factors that affect worker productivity include
Whether plant upgrade option D has been installed, the size of incentive payments per non defective pair, base pay increases, how favorably a company’s compensation package compares with the industry average compensation package, and expenditures for practices training
 
Which of the following is not an accurate description of your company’s plant operations?
A private label footwear is outsourced from contract manufacturers in Latin America and the Asia-Pacific at prices equal to $8 per pair
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
Footwear features and footwear durability
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private label footwear in a particular geographic region?
The company’s bid price
 
Which of the following is/are not among the factors that affect worker productivity? (same as 9?) **LOOK into
S/Q Ratings and the warranty claim rate on recently sold footwear
 
The market for branded athletic wear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during Year11-Year 15 and 7-9% annually in these regions during the year 16-year 20 period
 
The market for branded athletic wear is projected to grow
9-11% annually in Latin and Asia Pacific during the year 11 – year 15 period and 5-7% annually in North America and Europe-Africa during the year 11-15 period
 
The company currently has production facilities to make athletic footwear in a. Taiwan, India, Brazil, and Middle East. b. North America and Asia-Pacific. c. Asia-Pacific and Latin America. d. the Middle East and China. e. North America and Latin America.
b. North America and Asia-Pacific.
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region? a. The number of retailers stocking the company’s footwear brand b. The number of models/styles in the company’s product line c. Footwear features and footwear durability d. S/Q ratings of the company’s footwear e. Expenditures for retailer support
c. Footwear features and footwear durability
 
The company’s present production capability (as of Year 10) is: a. 4 million pairs without the use of overtime and 6 million pairs with the use of overtime. b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime. c. 6 million pairs without the use of overtime and 6.6 million pairs with the use of overtime. d. 8 million pairs without the use of overtime and 10 million pairs with the use of overtime. e. 4 million pairs without the use of overtime and 5 million pairs with the use of overtime.
b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which of the following is/are not among the factors that affect worker productivity? a. Expenditures for best practices training b. Whether plant upgrade option D has been installed c. The percentage of newly-hired workers and the percentage use of superior materials d. The size of incentive payments per non-defective pair e. Base pay increases
c. The percentage of newly-hired workers and the percentage use of superior materials
 
Which one of the following does not affect the reject rates at a company’s plants? a. The size of the incentive payment per non-defective pair produced b. Spending for TQM/Six Sigma quality control efforts c. The number of models/styles comprising the company’s product line d. The installation of plant upgrade C e. Spending for best practices training
d. The installation of plant upgrade C
 
Which of the following are the 5 measures on which a company’s performance is judged/scored? a. S/Q rating, revenues, EPS, ROE, and year-end cash balance b. Quality rating, stock price, dividends, credit rating, and net profit margin c. Earnings per share, ROE, stock price, credit rating, and image rating d. Revenues, global market share, net profits, ROE, and credit rating e. Revenues, net profit, stock price, credit rating, and global market share
c. Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region? a. Whether the company’s private-label footwear has a higher S/Q rating than the footwear of rival private-label manufacturers b. The number of models/styles comprising the company’s product line c. The appeal of the celebrities signed to endorse the company’s footwear d. The amount of merchandising support provided to retailers e. The company’s bid price
e. The company’s bid price
 
Which the following are factors in determining a company’s credit rating? a. Its default risk ratio, debt-asset ratio, and interest coverage ratio b. Its times-interest-earned ratio, debt-equity ratio, and return on investment c. A company’s current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments d. Its loans outstanding, dividend payout ratio, debt-equity ratio, and free cash flow e. Its debt-equity ratio, current ratio, and gross profit margin
a. Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following best describes the materials the company uses to make its footwear? a. Interior lining fabrics, waterproof microfibers, rubber, cotton shoelaces, and fiberglass thread b. Standard and superior materials c. Synthetic fibers, waterproof polyesters, microfibers, rubber, high-strength threads, and metal eyelets d. High-strength and regular-strength materials e. Normal-wear and long-wear materials
b. Standard and superior materials
 
Which of the following are components of the compensation package for production workers at your company’s plants? a. Annual base salary, teamwork bonuses, fringe benefits, and stock options b. Weekly salary, fringe benefits, year-end bonuses tied to the number of non-defective pairs produced, and overtime pay c. Hourly wages, fringe benefits, and overtime pay d. Base wages, incentive payments per non defective pair produced, and overtime pay e. Annual base pay, piecework incentives per pair produced, perfect attendance bonuses at best practices training programs, stock options, fringe benefits, and overtime pay
d. Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which of the following most accurately describes your company’s plant operations? a. Standard materials are used to make private-label shoes and are sourced from outside suppliers; superior materials are produced in-house and are used in branded footwear production. b. All private-label footwear is outsourced form contract manufacturers in Latin America and the Asia-Pacific at prices of $12.50 per pair. c. Branded footwear is produced round-the-clock (3 shifts per day) 5 days per week; private-label footwear is made using only 1 shift per day (due to higher production-run set-up times for private-label models/styles). d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced. e.TQM/Six Sigma quality control is used to reduce reject rates while best practices training is used to increase S/Q ratings and the number of different models that can be produced each week.
d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear? a. Asia-Pacific, Europe-Africa, North America, and Latin America b. The European Union, North America, Southeast Asia, and Latin America c. Latin America, Europe, China, and North America d. Argentina, Great Britain, the U.S., and Japan e. North America, Asia, European Union, and Middle East
a. Asia-Pacific, Europe-Africa, North America, and Latin America
 
In Year 11, footwear companies can expect to sell a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort. b. an average of 5.2 million branded pairs and an average of 880,000 private-label pairs. c. an average of 5.5 million branded pairs and an average of 700,000 private-label pairs, although some companies may sell more pairs than the average and other companies may sell fewer than the average due to differing levels of competitive effort. d. no less than 3.95 and no more than 4.95 million branded pairs and no less than 650,000 and no more than 950,000 private-label pairs. e. exactly 4.844 million branded pairs and 800,000 private-label pairs.
a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The market for private-label athletic footwear is projected to grow a. 10% annually in North America and Europe-Africa during the Year 11-Year 15 period and 8.5% annually in Latin America and the Asia-Pacific regions during the Year 11-Year 20 period. b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period. c. 6-8% annually in North America and Europe-Africa during the Year 11-Year 20 period and 10-12% annually in Latin America and the Asia-Pacific during the Year 11-Year 20 period. d. 12-14% annually in all 4 regions during the Year 11-Year 15 period and 8-10% annually in all 4 regions during the Year 16-Year 20 period. e. 12% annually in all four geographic markets during Years 11-15, and then slow gradually to 8% annually in all markets by Year 20.
b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by a. how favorably its wholesale price compares with the highest wholesale price being charged by any rival in any geographic region. b. how favorably its wholesale price compares with the wholesale price being charged by company having the lowest-priced footwear brand (after all mail-in rebates are factored in). c. whether its wholesale price is above or below the average price of all companies competing in that geographic region. d. how favorably its wholesale price compares to the lowest price being charged by the rival company having the largest number of models/styles in the region. e. whether its wholesale price is above or below the average price of all companies having the same S/Q rating in the region.
c. whether its wholesale price is above or below the average price of all companies competing in that geographic region.
 
The market for branded athletic footwear is projected to grow a. between 8-11% annually worldwide during the Year 11-20 period. b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period. c. 6-9% annually in all four geographic regions during the Year 11-Year 15 period and 7-8% annually in all four regions during the Year 16-Year 20 period. d. 10-12% annually in North America and Europe-Africa during the Year 11-Year 15 period and 6-8% annually in these regions during the Year 16-Year 20 period. e. 6% annually in all four geographic markets during Years 11-15, and then slow gradually to 3% annually in all markets by Year 20.
b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
The factors that affect a company’s S/Q rating include: a. the size of annual base pay increases; reject rates; expenditures for best practices training; whether plant upgrade B has been installed. b. the number of performance features built into branded models/styles annually; the durability of its athletic shoes; how much best practices training the average production worker has had; and plant reject rates. c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model. d. how well compensated its work force is; whether shoes are produced with standard materials or superior materials; the durability and quality of the footwear, and how many models/styles are included in its product line. e. whether materials are produced in-house or outsourced; overall footwear quality; how much is spent to inspect newly-produced pairs and avoid shipping defective shoes; the size of the incentives paid to production workers.
c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to a. any applicable import tariffs and exchange rate adjustments. b. shipping charges of $3 per pair on all pairs shipped from one region to another region and exchange rate shifts of as high as 10%. c. tariffs of $6 per pair and shipping fees of $2 per pair. d. export fees equal to 10% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 25%. e. 1-million pair import quotas on shipments from foreign plants to Europe-Africa and Asia-Pacific and exchange rate shifts of as high as 5%.
a. any applicable import tariffs and exchange rate adjustments.
 
The interest rate a company pays on loans outstanding depends on a. its free cash flow in the prior year and whether its prior-year net profit margin exceeded 10%. b. its credit rating. c. Its accounts payable ratio, its debt-assets ratio, and its loan default percentage over the past three years. d. its current ratio, debt-equity ratio, and default risk ratio. e. its current ratio, the amount of cash on hand to make interest payments, and the average annual amount of free cash flow.
b. its credit rating.
 
Which of the following does not affect the reject rates at a company’s plants?
The S/Q rating of pairs being produced and the use of plant upgrade option B
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
The number of new performance features built into each year’s models/styles
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
U.S. dollars, Singapore dollars, euros, and Brazilian reals
 
The company currently has production facilities to make athletic footwear in
Asia-Pacific and North America
 
Which of the following is not an accurate characteristic of your company’s plant operations?
The company makes most all of its footwear materials and components in-hours, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific
 
In year 11, footwear companies can expect to sell
An average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the average due to differing levels of competitive effort
 
Which of the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
Asia-Pacific, Europe-Africa, North America, and Latin America
 
A company’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
How favorably its wholesale price compares with the average wholesale price of all companies competing in the region
 
The interest rate a company pays on loans outstanding depends on
Its credit rating
 
Which of the following are factors in determining a company’s credit rating?
Its interest coverage ratio, debt-asset ratio, and default risk ratio
 
At the end of year 10, going into year 11, a company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime
 
The market for private-label athletic footwear is projected to grow
10% annually in all four geographic regions during the year 11-year 15 period and 8.5% annually in all four regions during the year 16-year 20 period
 
Which of the following are components of the compensation package for productions workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating
 
Which one of the following is not one of the factors that affect the S/Q rating of a company’s footwear?
How much is spent to inspect newly-produced pairs and avoid shipping defective shoes
 
Which of the following is/are not among the factors that affect worker productivity?
S/Q ratings and the warranty claim rate on recently-sold footwear
 
The market for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during the year 11-year 15 period and 7-9% annually in these regions during the year 16-year 20 period
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
Any applicable import tariffs and exchange rate adjustments
 
At the end of Year 10, going into Year 11, the company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
The market for private-label athletic footwear is projected to grow
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S. dollars, and Brazilian reals
 
Which of the following is not an accurate characteristic of your company’s plant operations?
The company makes most all of its footwear materials and components in-house, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
how favorably its wholesale price compares with the wholesale price of the company having the highest S/Q rating in any of the four geographic regions.
 
The interest rate a company pays on loans outstanding depends on
its credit rating.
 
The factors that affect a company’s S/Q rating include:
whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments.
 
The factors that affect worker productivity include
Whether plant upgrade option D has been installed, the size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.
 
Which one of the following does not affect the reject rates at a company’s plants?
The S/Q rating of pairs being produced and the use of plant upgrade option B
 
The market for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
In Year 11, footwear companies can expect to sell
exactly 4.844 million branded pairs and 800,000 private-label pairs.
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, and Europe-Africa,
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
The number of new performance features built into each year’s models/styles
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific.
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
Which the following are factors in determining a company’s credit rating?
Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following is not one of the factors that affect the S/Q rating of a company’s footwear?
How much is spent to inspect newly-produced pairs and avoid shipping defective shoes
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S. dollars, and Brazilian reals
 
Which of the following is not an accurate characteristic of your company’s plant operations?
The company makes most all of its footwear materials and components in-house, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific.
 
The interest rate a company pays on loans outstanding depends on
its credit rating.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments.
 
The factors that affect worker productivity include
Whether plant upgrade option D has been installed, the size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, and Europe-Africa,
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific.
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
Footwear features and footwear durability
 
The company’s present production capability (as of Year 10) is:
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which the following are factors in determining a company’s credit rating?
Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
In Year 11, footwear companies can expect to sell
an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The market for private-label athletic footwear is projected to grow
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
The market for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
The reject rates at the company’s footwear plants are a function of
the size of the incentive payment per non-defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control, the number of models/styles comprising the company’s product line, and the installation of plant upgrade option A.
 
the interest rate a company pays on loans outstanding depends on
the credit rating
 
the factors that affect worker productivity include
the size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.
 
at the end of Year 10, going into Year 11, the company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
which one of the following is NOT a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region? ARE
performance/durability (P/D) ratings – expenditures on advertising – the number of models/styles in the company’s product line – mail-in rebate offers – delivery times to retailers (1,2,3,or4weeks)
 
which of the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, an Europe-Africa
 
which of the following are factors in determining a company’s credit rating?
its debt-asst ratio, default risk ratio, and interest coverage ratio
 
which of the following best describes the materials the company uses to make its footwear?
standard and superior materials
 
the market for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 5-7% annually in North America an Europe-Africa during the Year 11-Year 15 period.
 
in Year 11, footwear companies can expect to sell
an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher of lower than the averages due to differing levels of competitive effort.
 
which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S. dollars, and Brazilian reals
 
a footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
whether its wholesale price is above or below the average wholesale price of all companies competing in that geographic region.
 
the company currently has production facilities to make athletic footwear in
Asia-Pacific and North America
 
which one of the following is NOT one of the factors that affect the S/Q rating of a company’s footwear? ARE
how much is spent to inspect newly-produced pairs and avoid shipping defective shoes – expenditures for best practices training – the percentage use of superior materials – a company’s cumulative spending for TQM/Six Sigma quality control programs – expenditures for new styling/features per model and whether plant upgrade option C has been installed
 
which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating
 
which of the following most accurately describes your company’s plant operations?
TQM/Six Sigma quality control programs and best practices training are used to boost the S/Q ratings of both branded and private-label footwear.
 
the company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments.
 
the reject rates at the company’s footwear plants are a function of
the size of the incentive payment per non-defective pair produced, spending for best practices training, spending for TWQ/Six Sigma quality control, the number of models/styles comprising the company’s product line, and the installation of plant upgrade option A.
 
which of the following are components of the compensation package for production workers at your company’s plants?
base wages, incentive payments per non defective pair produced, and overtime pay
 
the market for private-label athletic footwear is projected to grow
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
the company’s bed price
 
The factors that affect the reject rates at the company’s footwear production facilities include
the size of the incentive payment per non-defective pair produced, best practices training expenditures per worker, spending for TQM/Six Sigma quality control efforts, and the number of models/styles comprising the company’s product line.
 
Which of the following is the most important competitive factor in determining a company’s ability to secure contracts to supply private-label footwear to chain retailers in a particular geographic region?
The company’s price offer
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific
 
Which of the following statements about the average wholesale price a company charges footwear retailers in a given geographic region is incorrect?
So long as a company has a big price-based competitive advantage in a region’s Wholesale Segment, it has the ability to achieve an attractively-large sales volume and market share even if it suffers from competitive disadvantages on other competitively-relevant factors.
 
Which of the following currencies are involved in causing favorable or unfavorable exchange rate adjustments to a company’s costs and revenues?
Singapore dollars, euros, U.S. dollars, and Brazilian reals
 
Which of the following statements about the impact of a company’s competitive efforts in a region on its regional market share and number of branded pairs sole is false?
The biggest possible competitive advantage a company can achieve in a given region’s Internet Segment is to offer free shipping and thereby capture the biggest number of pairs sold and biggest market share of any company in that region’s Internet Segment.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments.
 
Which of the following are factors in determining a company’s credit rating?
its default risk ratio, debt-asset ratio, and interest coverage ratio.
 
Which of the following most accurately describes your company’s production operations?
TQM/Six Sigma quality control programs and best practices training are a means of increasing the S/Q ratings of both branded and private-label footwear produced at each production facility.
 
Which of the following are components of the total compensation package for production workers at your company’s production facilities?
Base wages, incentive payments per non-defective pair produced, fringe benefits, and any overtime pay
 
The projected growth in buyer demand for branded athletic footwear is
9-11% annually in Latin America and Asia-Pacific during Years 11-15 and 7-9% annually in these two regions during Years 16-20.
 
The factors that affect worker productivity include
how much emphasis is placed on inventive compensation (as measured by the percentage of the company’s total compensation package accounted for by incentive pay) and expenditures for best practices training.
 
The interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of
its credit rating and the length of the term over which repayment is scheduled to occur
 
Which of the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
Europe-Africa, Latin America, Asia-Pacific, and North America
 
Which of the following statements about the importance of each competitive factors in determining company sales volume and market shares in a particular geographic region is false?
Tiny cross-company differences in competitive effort on a highly influential competitive factor (like S/Q ratings, the number of models/styles offered, and selling prices) nearly always have a bigger impact on company sales/market share outcomes in a region than do large differences on less influential competitive factors.
 
The three competitive factors that impact only Internet Sales and market share in a region include
expenditures for search engine advertising
 
The projected growth in buyer demand for private-label athletic footwear is
10-12% annually in the Asia-Pacific and Latin America regions during Years 16-20.
 
Which one of the following is NOT one of the competitive factors that impact both Internet Sales and Wholesale Sales of branded footwear?
Search engine advertising
 
Which one of the following is NOT one of the factors that affects the S/Q rating of a company’s footwear?
The percentage size of a production facility’s reject rates for branded and private-label footwear due to defective workmanship and poorly-maintained equipment
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Stock prices, credit rating, earnings per share, ROE, and image rating
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
The number of consumers the live in the region
 
Going into Year 11, the company’s production facilities to make athletic footwear consisted of
a facility in the Asia-Pacific and a facility in North America, each with sufficient footwear-making equipment to currently product 4.8 million pairs with full use of overtime.
 
The market for branded athletic footwear is projected to grow
7% – 9% annually worldwide in Years 11 – 15 and 5% – 7% annually worldwide in Years 16 – 20
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings Per Share, ROE, Stock Price, Credit Rating, image rating
 
At the end of year 10 going into year 11, the company’s production capability was
Both plants can be operated at overtime increasing annual assembly capability by 20%, thus giving the company a current annual production capability of 9,600,000 pairs without installing additional equipment in the unused space in the North America and Asia-Pacific plants and annual capability of 13,200,000 pairs if the company buys enough production equipment to fill the available facility space in the two existing plants.
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and Superior materials
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Brazilian Real, Euros , US Dollar, Singapore dollars
 
Which of the following is not an accurate characteristic of your company’s plant operations?
The company makes most all of its footwear materials and components in-hours, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific
 
A footwear maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
How favorably its wholesale price compares with the average wholesale price of all companies competing in the region
 
The interest rate a company pays on loans outstanding depends on
Its credit rating
 
The factors that affect a company’s S/Q rating include:
S/Q rating is a function of five factors: (1) current-year spending per footwear model for new features and styling, (2) the percentage of superior materials used, (3) current-year expenditures for Total Quality Management (TQM) and/or Six Sigma quality control programs, (4) cumulative expenditures for TQM/Six Sigma quality control efforts (to reflect learning and experience curve effects), and (5) current-year and cumulative expenditures to train workers in using the best practices to assemble athletic footwear.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
the costs of producing footwear in one region and exporting some of the pairs produced to supply buyer demand in another region are substantially impacted by import tariffs, fluctuating currency exchange rates, and the higher cost of shipping pairs to foreign distribution centers
 
The factors that affect worker productivity include:
1. Annual base pay increases 2. How much emphasis is placed on incentive compensation 3. The total annual compensation 4. The amount the company spends annually per worker on best practices training 5. The number of models workers must assemble at a given plant 6. Higher supervisor salaries 7. A smaller ratio of production workers to supervisors 8. The use of new equipment 9.Whether Production Improvement Option D has been installed at the plant
 
Which of the following does not affect the reject rates at a company’s plants?
The S/Q rating of pairs being produced and the use of plant upgrade option B
 
Factors that determine reject rates at a company’s plant
1. The size of the incentive payment per non-defective pair produced. 2. Spending for TQM/Six Sigma quality control efforts 3. Best practices training 4. The number of models/styles comprising the company’s product line. 5. The use of new equipment (as opposed to refurbished equipment even if the refurbished equipment has been recently purchased) 6. Whether Production Improvement Option A has been installed.
 
In Year 11, footwear companies can expect to sell
See page 6 in players guide
 
Which of the following are components of the compensation package for productions workers at your company’s plants?
 
 
Which of the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
Asia-Pacific, Europe-Africa, North America, and Latin America
 
The company currently has production facilities to make athletic footwear in
North America and Asia Pacific
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
Which of the following are factors in determining a company’s credit rating?
Its interest coverage ratio, debt-asset ratio, and default risk ratio
 
What are the benefits of spending on best practice training?
(1) helping curb reject rates associated with defective workmanship, (2) helping improve S/Q ratings for both branded and private-label footwear, (3) curtailing materials waste and potentially lowering material costs at the plant by as much as 20% annually, and (4) increasing worker productivity
 
The market for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asian-Pacific during the Year 11-Year 15 period and 5-7% annually in North America and Europe-Africa during the Year 11- Year 15 period
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, and Europe-Africa
 
Which of the following are factors in determining a company’s credit rating?
Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
The number of annual sales promotions
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay
 
The reject rates at the company’s footwear plants are a function of
the size of the incentive payment per non-defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control, the number of models/styles comprising the company’s product line, and the installation of plant upgrade option A
 
The interest rate a company pays on loans outstanding depends on
its credit rating
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore Dollars, Euros, US Dollars, Brazilian Reals
 
The factors that affect a company’s S/Q rating include:
whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model
 
Which of the following most accurately describes your company’s plant operations?
Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per pair produced
 
Which of the following is/are not among the factors that affect worker productivity?
S/Q ratings and the warranty claim rate on recently-sold footwear
 
The market for private-label athletic footwear is projected to grow
10% annually in al four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the year 16- Year 20 period
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating and image rating
 
Which of the following best describes the materials that company uses to make its footwear?
Standard and superior materials
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
whether its wholesale price is above or below the average wholesale price of all companies competing in that geographic region
 
At the end of Year 10, going into Year 11, the company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subjected to
any applicable import tariffs and exchange rate adjustments
 
In Year 11, footwear companies can expect to sell
an average of 4.84 million branded pairs and an average of 80,000 private-label pairs, although sales at some companies may run high or lower than the average due to differing levels of competitive effort
 
Which of the following does not affect the reject rates at a company’s plants?
The S/Q rating of pairs being produced and the use of plant upgrade option B
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
The number of new performance features built into each year’s models/styles
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
U.S. dollars, Singapore dollars, euros, and Brazilian reals
 
The company currently has production facilities to make athletic footwear in
Asia-Pacific and North America
 
Which of the following is not an accurate characteristic of your company’s plant operations?
The company makes most all of its footwear materials and components in-hours, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific
 
In year 11, footwear companies can expect to sell
An average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the average due to differing levels of competitive effort
 
Which of the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
Asia-Pacific, Europe-Africa, North America, and Latin America
 
A company’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
How favorably its wholesale price compares with the average wholesale price of all companies competing in the region
 
The interest rate a company pays on loans outstanding depends on
Its credit rating
 
Which of the following are factors in determining a company’s credit rating?
Its interest coverage ratio, debt-asset ratio, and default risk ratio
 
At the end of year 10, going into year 11, a company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime
 
The market for private-label athletic footwear is projected to grow
10% annually in all four geographic regions during the year 11-year 15 period and 8.5% annually in all four regions during the year 16-year 20 period
 
Which of the following are components of the compensation package for productions workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating
 
Which one of the following is not one of the factors that affect the S/Q rating of a company’s footwear?
How much is spent to inspect newly-produced pairs and avoid shipping defective shoes
 
Which of the following is/are not among the factors that affect worker productivity?
S/Q ratings and the warranty claim rate on recently-sold footwear
 
The market for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during the year 11-year 15 period and 7-9% annually in these regions during the year 16-year 20 period
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
Any applicable import tariffs and exchange rate adjustments
 
Which of the following statements about the average wholesale price a company charges footwear retailers in a given geographic region is *incorrect*? A. the further a company’s average wholesale price to retailers in a geographic region is ABOVE the all-company regional average wholesale price, the bigger the negative impact of this price-based competitive disadvantage on its pairs sold and market share in a region. B. any company whose average wholesale price to retailers is ABOVE the regional average can overcome/offset some or perhaps all of its price-based competitive disadvantage by exerting stronger competitive efforts on some or many of the other 9 competitive factors that impacting branded pairs sold and market share in a region’s wholesale segment C. So long as a company has a big-price-based competitive advantage in a region’s wholesale segment, it has the ability to achieve an attractively-large sales volume and market share even if it suffers from competitive disadvantages on other competitively-relevant factors. D. the size of any company price-based competitive advantage in the wholesale segment (and the resulting positive impact on its unit sales and market share) can be enhanced by strengthening its competitive efforts on other competitive factors E. the further a company’s average wholesale price to retailers in a geographic region is BELOW the all-company regional average wholesale price, the bigger is the resulting positive impact on its pairs sold and market share and the bigger its price-based competitive advantage
C. So long as a company has a big-price-based competitive advantage in a region’s wholesale segment, it has the ability to achieve an attractively-large sales volume and market share even if it suffers from competitive disadvantages on other competitively-relevant factors.
 
which of the following is the most important competitive factor in determining a company’s ability to secure contracts to supply large multi-outlet retailers private-label footwear to chain retailers in a particular geographic region? A. the number of special high-performance features the company agrees to incorporate in the private-label footwear models it supplies B. the S/Q ratings on the private-label footwear the company offers to supply C. the price at which the company offers to supply retailers with private-label pairs D. the company’s brand reputation E. the amount and caliber of merchandising and promotional support the company offers to provide
C. the price at which the company offers to supply retailers with private-label pairs
 
which of the following statements about the impact of a company’s competitive efforts in a region on its regional market share and number of branded pairs sold is *false*? A. companies with more influential celebrity lineups in a region enjoy a competitive advantage in attracting buyers to purchase their brand in either retail stores or online as compared to regional rivals with less influential celebrity endorsements (or no celebrity endorsements) B. a footwear-maker achieves the biggest possible styling/quality-based competitive advantage in a given region when its branded footwear has a higher S/Q rating than any other company in the region C. a company’s pairs sold and market share outcomes in a region are positively impacted when the number of models/styles it offers for sale in the region is above the regional average. D. a company’s pairs sold and market share outcomes in a region are positively impacted when its brand reputation image rating in a region is above the regional average E. the more a company’s S/Q rating in a region is below the region’s all company average, the bigger is the company’s resulting competitive disadvantage and the bigger is the resulting negative impact on the company’s pairs sold and market share in the region.
B. a footwear-maker achieves the biggest possible styling/quality-based competitive advantage in a given region when its branded footwear has a higher S/Q rating than any other company in the region
 
which of the following is the most important competitive factor in determining a company’s ability to secure contracts to a supply private-label footwear to chain retailers in a particular geographic region? A. the amount of merchandising and promotional support the company agrees to provide to chain retailers that market its private label brand B. the appeal of the celebrities the company has signed to endorse its branded footwear C. the reputation the company has for being a supplier of high-quality private-label footwear D. the company’s price offer to supply chain retailers with private-label footwear E. the amount of brand advertising support the company agrees to provide to chain retailers
D. the company’s price offer to supply chain retailers with private-label footwear
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to a. any applicable import tariffs and exchange rate adjustments. b. shipping charges of $2 per pair on all pairs shipped from one region to another region and exchange rate shifts of as high as 15%. c. tariffs of $8 per pair and shipping fees of $1 per pair. d. export fees equal to 10% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 25%. e. 3-million pair import quotas on shipments from foreign plants to Europe-Africa and Asia-Pacific and exchange rate shifts of as high as 20%.
A. any applicable import tariffs and exchange rate adjustments.
 
the interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of a a. its balance sheet strength as measured by its current ratio, debt-equity ratio, and accounts payable ration b. how many consecutive years the company has been profitable, its interest coverage ratio, and the number of loans it has paid of in time in the past five years c. its credit rating d. its default risk ratio, its working capital ratio, its prior-year ROE and EPS, and its prior year net cash flow from operations e. its credit rating and the length of the term over which repayment is scheduled to occur
E. its credit rating and the length of the term over which repayment is scheduled to occur
 
which of the following is among the 13 competitive factors that affect each company’s branded footwear sales volumes and market shares in each of the 4 geographic market regions? a. the number of discount-price sales promotions on athletic footwear that each company’s footwear retailers have annually b. the length of the warranties covering defective materials or workmanship that each footwear maker elects to provide on each branded pair purchased by buyer c. the percentage of footwear-maker’s models/styles that have retail prices under $100 d. the size of the percentage price discount off the standard retail price that footwear companies offer people shopping for athletic footwear at their websites e. the number of retailers stocking each company’s footwear brand and the number of weeks each company takes to deliver orders to retailers
E. the number of retailers stocking each company’s footwear brand and the number of weeks each company takes to deliver orders to retailers
 
the reject rate at the company’s footwear production facilities are a function of such factors as a. per worker expenditures for best practices training, the number and size each production facility’s production capacity, the number of hours of overtime pay production workers receive, and whether the production facility has installed production improvement option D b. the S/Q rating of the pairs being produced, the percentage use of superior materials, and the installation of production improvement option C c. the size of workers annual base pay, yearend incentive bonuses, the number of hours of overtime pay, the S/Q rating of the pairs being produced, annd the number of models/styles compromising the company’s product line d. spending for TQM/six sigma, quality control efforts, the number of models/styles compromising equipment, and whether production improvement option A has been installed e. the size of the incentive payment per non-defective pair produced, per pair spending for TQM/six stigma quality control efforts, the number of models/styles compromising the company’s product line, and the installation of plant upgrade option A
E. the size of the incentive payment per non-defective pair produced, per pair spending for TQM/six stigma quality control efforts, the number of models/styles compromising the company’s product line, and the installation of plant upgrade option A
 
which of the following is *not* among the factors that affect worker productivity? a. how favorably the total annual compensation of workers compares to industry-average total compensation levels at production facilities in the same region b. the percentage increases in annual base pay c. whether production workers are producing and assembling footwear with an S/Q rating above 7.0 stars d. the number of materials workers must assemble at a given production facility e. expenditures on best practices training
C. whether production workers are producing and assembling footwear with an S/Q rating above 7.0 stars
 
which of the following is *not* an accurate characteristic of your company’s production operations? a. TQM/six sigma quality control programs and best practices training are used to promote better workmanship and reduce the number of pairs rejected due to defects b. going into year 11, both of your company’s production facilities utilize 100% new state-of-the-art equipment that was installed in Year 8; because this equipment has a useful life of only 10 years, it will have to be replaced in year 18 c. training production workers in the use of best practice procedures at each step of the manufacturing process is an important means of reducing the reject rates on pairs produced that occur due to worker error and inattention to detail d. all additions of footwear-making equipment must be in increments of 250,000 pairs; it is up to company managers to determine whether the benefits of installing new equipment are worth the added costs e. standard and superior materials are sourced from outside suppliers and the “base” prices of these materials that can vary up and down according to strength of global demand for and usage of standard versus superiors materials in producing footwear.
B. going into year 11, both of your company’s production facilities utilize 100% new state-of-the-art equipment that was installed in Year 8; because this equipment has a useful life of only 10 years, it will have to be replaced in year 18
 
which of the following most accurately describes your company’s operations? a. branded production always takes place during regular time to save on labor costs, while the production of private-label footwear occurs chiefly during overtime periods b. the company compensates production workers at the rate of $2 for each pair produced and uses TQM/six stigma quality control programs to keep reject rates under 1% of the branded pairs produced c. standard materials are used to make private-label shoes and superior materials are used to make branded footwear d. TQM/six stigma quality control programs and best practices training are a means of increasing the S/Q ratings of both branded and private-label footwear produced at each production facility e. workers are organized into 3 person footwear production and assembly teams; each team has the capability to make 5,000 pairs annually; and teams are compensated at the rate of $12 per pair produced during regular time and $18 per pair when facilities are operating at overtime
D. TQM/six stigma quality control programs and best practices training are a means of increasing the S/Q ratings of both branded and private-label footwear produced at each production facility
 
which of the following are factors in determining a company’s credit rating? a. a company’s current ratio, quick ratio, inventory turnover ratio, and default risk ratio b. the percentage by which prior-year cash flow from operations covers a company’s prior-year payments, the company’s debt-asset ratio, its dividend payout ratio, and its default risk ratio c. its ratio of annual interest payments to net profits, current ratio, working capital ratio, debt-equity ratio, and return of capital employed ratio d. its loans outstanding as a % of total revenues, default risk ratio, inventory turnover ratio, and long-term debt to equity ratio e. its total debt-total stockholders’ equity ratio, current ratio, working capital ratio, and ratio of prior-year cash flow from operations to prior-year interest payments
B. the percentage by which prior-year cash flow from operations covers a company’s prior-year payments, the company’s debt-asset ratio, its dividend payout ratio, and its default risk ratio
 
which of the following is *not* one of the factors that affect the S/Q rating of a company’s footwear? a. whether production improvement option C has been installed b. the percentage use of superior materials c. a company’s cumulative spending for TQM/six stigma quality control programs d. the percentage use of new and refurbished footwear-making equipment e. expenditures on new styling features per model
D. the percentage use of new and refurbished footwear-making equipment
 
Which of the following is not one of the factors that affect the S/Q rating of a company’s footwear?
How much is spent to inspect newly-produced pairs and avoid shipping defective shoes
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S. dollars, and Brazilian reals
 
Which of the following is not an accurate characteristic of your company’s plant operations?
The company makes most all of its footwear materials and components in-house, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific.
 
The interest rate a company pays on loans outstanding depends on
its credit rating.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments.
 
The factors that affect worker productivity include
Whether plant upgrade option D has been installed, the size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, and Europe-Africa,
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific.
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
Footwear features and footwear durability
 
The company’s present production capability (as of Year 10) is:
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which the following are factors in determining a company’s credit rating?
Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
In Year 11, footwear companies can expect to sell
an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The market for private-label athletic footwear is projected to grow
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
The market for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
The reject rates at the company’s footwear plants are a function of
the size of the incentive payment per non-defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control, the number of models/styles comprising the company’s product line, and the installation of plant upgrade option A.
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific.
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-lable footwear in a particular geographic region?
The company’s bid price.
 
In Year 11, footwear companies can expect to sell
An average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than averages due to differing levels of competitive effort.
 
The factors that affect a company’s S/Q rating include:
The percentage use of superior materials; a company’s cumulative spending for TQM/Six Sigma quality control programs; the use of best practices training; an expenditures for new styling/features per model.
 
The market for private-label athletic footwear is projected to grow:
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
The reject rates at the company’s footwear plants are function of:
The size of the incentive payment per non-defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control efforts, the number of models/style comprising the company’s product line, and installation of plant upgrade option A.
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay.
 
The interest rate a company pays on loans outstanding depending on:
its credit rating.
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating.
 
Which of the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, and Europe-Africa.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to:
Any applicable import tariffs and exchange rate adjustments.
 
The market for branded athletic footwear is projected to grow:
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 5-7% annually in North America and Europe-Africa during the Year 11-Year 15 period.
 
Which of the following most accurately describes your company’s plant operations?
Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per paid produced.
 
The factors that affect worker productivity include
The size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region in determined by:
Whether its wholesale price is above or below the average wholesale price of all companies competing in that geographic region.
 
At the end of Year 10, going into Year 11, the company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which one of the following is NOT a factor in determining a company’s unit sale and market share of branded footwear in a particular geographic region
Performance/durability (P/D) ratings
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S dollars, and Brazilian reals
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
Which the following are factors in determining a company’s credit rating?
Its debt-asset ratio, default risk ratio, and interest coverage ratio.
 
The company currently has production facilities to make athletic footwear in a. Taiwan, India, Brazil, and Middle East. b. North America and Asia-Pacific. c. Asia-Pacific and Latin America. d. the Middle East and China. e. North America and Latin America.
b. North America and Asia-Pacific.
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region? a. The number of retailers stocking the company’s footwear brand b. The number of models/styles in the company’s product line c. Footwear features and footwear durability d. S/Q ratings of the company’s footwear e. Expenditures for retailer support
c. Footwear features and footwear durability
 
The company’s present production capability (as of Year 10) is: a. 4 million pairs without the use of overtime and 6 million pairs with the use of overtime. b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime. c. 6 million pairs without the use of overtime and 6.6 million pairs with the use of overtime. d. 8 million pairs without the use of overtime and 10 million pairs with the use of overtime. e. 4 million pairs without the use of overtime and 5 million pairs with the use of overtime.
b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which of the following is/are not among the factors that affect worker productivity? a. Expenditures for best practices training b. Whether plant upgrade option D has been installed c. The percentage of newly-hired workers and the percentage use of superior materials d. The size of incentive payments per non-defective pair e. Base pay increases
c. The percentage of newly-hired workers and the percentage use of superior materials
 
Which one of the following does not affect the reject rates at a company’s plants? a. The size of the incentive payment per non-defective pair produced b. Spending for TQM/Six Sigma quality control efforts c. The number of models/styles comprising the company’s product line d. The installation of plant upgrade C e. Spending for best practices training
d. The installation of plant upgrade C
 
Which of the following are the 5 measures on which a company’s performance is judged/scored? a. S/Q rating, revenues, EPS, ROE, and year-end cash balance b. Quality rating, stock price, dividends, credit rating, and net profit margin c. Earnings per share, ROE, stock price, credit rating, and image rating d. Revenues, global market share, net profits, ROE, and credit rating e. Revenues, net profit, stock price, credit rating, and global market share
c. Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region? a. Whether the company’s private-label footwear has a higher S/Q rating than the footwear of rival private-label manufacturers b. The number of models/styles comprising the company’s product line c. The appeal of the celebrities signed to endorse the company’s footwear d. The amount of merchandising support provided to retailers e. The company’s bid price
e. The company’s bid price
 
Which the following are factors in determining a company’s credit rating? a. Its default risk ratio, debt-asset ratio, and interest coverage ratio b. Its times-interest-earned ratio, debt-equity ratio, and return on investment c. A company’s current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments d. Its loans outstanding, dividend payout ratio, debt-equity ratio, and free cash flow e. Its debt-equity ratio, current ratio, and gross profit margin
a. Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following best describes the materials the company uses to make its footwear? a. Interior lining fabrics, waterproof microfibers, rubber, cotton shoelaces, and fiberglass thread b. Standard and superior materials c. Synthetic fibers, waterproof polyesters, microfibers, rubber, high-strength threads, and metal eyelets d. High-strength and regular-strength materials e. Normal-wear and long-wear materials
b. Standard and superior materials
 
Which of the following are components of the compensation package for production workers at your company’s plants? a. Annual base salary, teamwork bonuses, fringe benefits, and stock options b. Weekly salary, fringe benefits, year-end bonuses tied to the number of non-defective pairs produced, and overtime pay c. Hourly wages, fringe benefits, and overtime pay d. Base wages, incentive payments per non defective pair produced, and overtime pay e. Annual base pay, piecework incentives per pair produced, perfect attendance bonuses at best practices training programs, stock options, fringe benefits, and overtime pay
d. Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which of the following most accurately describes your company’s plant operations? a. Standard materials are used to make private-label shoes and are sourced from outside suppliers; superior materials are produced in-house and are used in branded footwear production. b. All private-label footwear is outsourced form contract manufacturers in Latin America and the Asia-Pacific at prices of $12.50 per pair. c. Branded footwear is produced round-the-clock (3 shifts per day) 5 days per week; private-label footwear is made using only 1 shift per day (due to higher production-run set-up times for private-label models/styles). d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced. e.TQM/Six Sigma quality control is used to reduce reject rates while best practices training is used to increase S/Q ratings and the number of different models that can be produced each week.
d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear? a. Asia-Pacific, Europe-Africa, North America, and Latin America b. The European Union, North America, Southeast Asia, and Latin America c. Latin America, Europe, China, and North America d. Argentina, Great Britain, the U.S., and Japan e. North America, Asia, European Union, and Middle East
a. Asia-Pacific, Europe-Africa, North America, and Latin America
 
In Year 11, footwear companies can expect to sell a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort. b. an average of 5.2 million branded pairs and an average of 880,000 private-label pairs. c. an average of 5.5 million branded pairs and an average of 700,000 private-label pairs, although some companies may sell more pairs than the average and other companies may sell fewer than the average due to differing levels of competitive effort. d. no less than 3.95 and no more than 4.95 million branded pairs and no less than 650,000 and no more than 950,000 private-label pairs. e. exactly 4.844 million branded pairs and 800,000 private-label pairs.
a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The market for private-label athletic footwear is projected to grow a. 10% annually in North America and Europe-Africa during the Year 11-Year 15 period and 8.5% annually in Latin America and the Asia-Pacific regions during the Year 11-Year 20 period. b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period. c. 6-8% annually in North America and Europe-Africa during the Year 11-Year 20 period and 10-12% annually in Latin America and the Asia-Pacific during the Year 11-Year 20 period. d. 12-14% annually in all 4 regions during the Year 11-Year 15 period and 8-10% annually in all 4 regions during the Year 16-Year 20 period. e. 12% annually in all four geographic markets during Years 11-15, and then slow gradually to 8% annually in all markets by Year 20.
b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by a. how favorably its wholesale price compares with the highest wholesale price being charged by any rival in any geographic region. b. how favorably its wholesale price compares with the wholesale price being charged by company having the lowest-priced footwear brand (after all mail-in rebates are factored in). c. whether its wholesale price is above or below the average price of all companies competing in that geographic region. d. how favorably its wholesale price compares to the lowest price being charged by the rival company having the largest number of models/styles in the region. e. whether its wholesale price is above or below the average price of all companies having the same S/Q rating in the region.
c. whether its wholesale price is above or below the average price of all companies competing in that geographic region.
 
The market for branded athletic footwear is projected to grow a. between 8-11% annually worldwide during the Year 11-20 period. b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period. c. 6-9% annually in all four geographic regions during the Year 11-Year 15 period and 7-8% annually in all four regions during the Year 16-Year 20 period. d. 10-12% annually in North America and Europe-Africa during the Year 11-Year 15 period and 6-8% annually in these regions during the Year 16-Year 20 period. e. 6% annually in all four geographic markets during Years 11-15, and then slow gradually to 3% annually in all markets by Year 20.
b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
The factors that affect a company’s S/Q rating include: a. the size of annual base pay increases; reject rates; expenditures for best practices training; whether plant upgrade B has been installed. b. the number of performance features built into branded models/styles annually; the durability of its athletic shoes; how much best practices training the average production worker has had; and plant reject rates. c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model. d. how well compensated its work force is; whether shoes are produced with standard materials or superior materials; the durability and quality of the footwear, and how many models/styles are included in its product line. e. whether materials are produced in-house or outsourced; overall footwear quality; how much is spent to inspect newly-produced pairs and avoid shipping defective shoes; the size of the incentives paid to production workers.
c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to a. any applicable import tariffs and exchange rate adjustments. b. shipping charges of $3 per pair on all pairs shipped from one region to another region and exchange rate shifts of as high as 10%. c. tariffs of $6 per pair and shipping fees of $2 per pair. d. export fees equal to 10% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 25%. e. 1-million pair import quotas on shipments from foreign plants to Europe-Africa and Asia-Pacific and exchange rate shifts of as high as 5%.
a. any applicable import tariffs and exchange rate adjustments.
 
The interest rate a company pays on loans outstanding depends on a. its free cash flow in the prior year and whether its prior-year net profit margin exceeded 10%. b. its credit rating. c. Its accounts payable ratio, its debt-assets ratio, and its loan default percentage over the past three years. d. its current ratio, debt-equity ratio, and default risk ratio. e. its current ratio, the amount of cash on hand to make interest payments, and the average annual amount of free cash flow.
b. its credit rating.
 
Which one of the following statements about whether a company’s strategy can be considered ethical is false?
A company’s strategic actions and behavior are properly considered “unethical” if they harm the financial performance of rival companies or if they conflict with the company’s customer value proposition
 
Good strategy and good strategy execution
are the most telling and trustworthy signs of good management
 
It is normal for a company’s strategy to end up being
a blend of proactive actions to improve the company’s competitiveness and financial performance and as-needed reactions to unanticipated developments and fresh market conditions
 
Which one of the following does not account for why a company’s strategy evolves over time, as show in Figure 1.2 and explained in the accompanying text discussion?
Managerial preferences for keeping the life-cycle of any given strategy short
 
In choosing among strategy alternatives, company managers
are well-advised to embrace strategic actions that can pass the test of moral scrutiny – it is not enough to just stay within the bounds of what is legal and is in compliance with prevailing government regulations
 
What makes a competitive advantage sustainable or durable as opposed to temporary is
actions or elements in the strategy that cause an attractive number of buyers to have lasting reasons to purchase a company’s products or services, despite competitors’ best efforts to nullify or overcome those reasons
 
A company’s strategy
represents managerial commitment to undertake one set of actions rather than another in an effort to compete successfully and achieve good performance outcomes.
 
The difference between a company’s strategy and a company’s business model is that
strategy relates broadly to a company’s competitive moves and business approaches (which may or may not lead to profitability) while its business model relates to whether the company can execute its customer value proposition profitability
 
Changing circumstances and ongoing managerial efforts to improve the strategy
account for why a company’s strategy evolves over time and why the task of crafting a company’s strategy is a work in progress, not a one-time event
 
The customer value proposition portion of a company’s business model concerns
the company’s approach to satisfying buyer needs and requirements at a price they will consider a good value
 
In crafting a company’s strategy
managers need to come up with some distinctive “aha” quality that goes beyond merely attracting buyer attention but that, more importantly, delivers what buyers perceive as superior value and converts them into loyal customers
 
The heart and soul of any strategy
is the actions and moves in the marketplace that managers are taking to gain a competitive advantage over rivals
 
The two crucial elements of a company’s business model are
its customer value proposition (the company’s approach to satisfying buyer needs and requirements at a price they will consider good value) and its “profit formula” (its business approach to generating sufficiently large revenues and controlling the costs of its value proposition, such that the company will be appealingly profitable in delivering the intended value to customers)
 
Which of the following questions helps distinguish a winning strategy from a mediocre or losing strategy?
is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in good company performance
 
According to Figure 1.1, which of the following is not something to look for in identifying a company’s strategy?
Actions to strengthen the company’s competitive position by hiring one or more new top executives or laying off its work force or paying down its long-term debt
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific.
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-lable footwear in a particular geographic region?
The company’s bid price.
 
In Year 11, footwear companies can expect to sell
An average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than averages due to differing levels of competitive effort.
 
The factors that affect a company’s S/Q rating include:
The percentage use of superior materials; a company’s cumulative spending for TQM/Six Sigma quality control programs; the use of best practices training; an expenditures for new styling/features per model.
 
The market for private-label athletic footwear is projected to grow:
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
The reject rates at the company’s footwear plants are function of:
The size of the incentive payment per non-defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control efforts, the number of models/style comprising the company’s product line, and installation of plant upgrade option A.
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay.
 
The interest rate a company pays on loans outstanding depending on:
its credit rating.
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating.
 
Which of the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, and Europe-Africa.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to:
Any applicable import tariffs and exchange rate adjustments.
 
The market for branded athletic footwear is projected to grow:
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 5-7% annually in North America and Europe-Africa during the Year 11-Year 15 period.
 
Which of the following most accurately describes your company’s plant operations?
Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per paid produced.
 
The factors that affect worker productivity include
The size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region in determined by:
Whether its wholesale price is above or below the average wholesale price of all companies competing in that geographic region.
 
At the end of Year 10, going into Year 11, the company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which one of the following is NOT a factor in determining a company’s unit sale and market share of branded footwear in a particular geographic region
Performance/durability (P/D) ratings
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S dollars, and Brazilian reals
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
Which the following are factors in determining a company’s credit rating?
Its debt-asset ratio, default risk ratio, and interest coverage ratio.
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific.
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-lable footwear in a particular geographic region?
The company’s bid price.
 
In Year 11, footwear companies can expect to sell
An average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than averages due to differing levels of competitive effort.
 
The factors that affect a company’s S/Q rating include:
The percentage use of superior materials; a company’s cumulative spending for TQM/Six Sigma quality control programs; the use of best practices training; an expenditures for new styling/features per model.
 
The market for private-label athletic footwear is projected to grow:
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
The reject rates at the company’s footwear plants are function of:
The size of the incentive payment per non-defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control efforts, the number of models/style comprising the company’s product line, and installation of plant upgrade option A.
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay.
 
The interest rate a company pays on loans outstanding depending on:
its credit rating.
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating.
 
Which of the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, and Europe-Africa.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to:
Any applicable import tariffs and exchange rate adjustments.
 
The market for branded athletic footwear is projected to grow:
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 5-7% annually in North America and Europe-Africa during the Year 11-Year 15 period.
 
Which of the following most accurately describes your company’s plant operations?
Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per paid produced.
 
The factors that affect worker productivity include
The size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region in determined by:
Whether its wholesale price is above or below the average wholesale price of all companies competing in that geographic region.
 
At the end of Year 10, going into Year 11, the company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which one of the following is NOT a factor in determining a company’s unit sale and market share of branded footwear in a particular geographic region
Performance/durability (P/D) ratings
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S dollars, and Brazilian reals
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
Which the following are factors in determining a company’s credit rating?
Its debt-asset ratio, default risk ratio, and interest coverage ratio.
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business? a. Singapore dollars, South African rand, Chilean pesos, and Turkish lira b. U.S. dollars, Indian rupees, Swiss francs, Argentine pesos, and euros c. Japanese yen, Mexican pesos, Indian rupees, Canadian dollars, euros, and the Australian dollar d. U.S. dollars, Singapore dollars, euros, and Brazilian reals e. Brazilian reals, Canadian dollars, Japanese yen, Chinese renminbi, and New Zealand dollars
d. U.S. dollars, Singapore dollars, euros, and Brazilian reals
 
The company currently has production facilities to make athletic footwear in a. Taiwan, India, Brazil, and Middle East. b. North America and Asia-Pacific. c. Asia-Pacific and Latin America. d. the Middle East and China. e. North America and Latin America.
b. North America and Asia-Pacific.
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region? a. The number of retailers stocking the company’s footwear brand b. The number of models/styles in the company’s product line c. Footwear features and footwear durability d. S/Q ratings of the company’s footwear e. Expenditures for retailer support
c. Footwear features and footwear durability
 
The company’s present production capability (as of Year 10) is: a. 4 million pairs without the use of overtime and 6 million pairs with the use of overtime. b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime. c. 6 million pairs without the use of overtime and 6.6 million pairs with the use of overtime. d. 8 million pairs without the use of overtime and 10 million pairs with the use of overtime. e. 4 million pairs without the use of overtime and 5 million pairs with the use of overtime.
b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which of the following is/are not among the factors that affect worker productivity? a. Expenditures for best practices training b. Whether plant upgrade option D has been installed c. The percentage of newly-hired workers and the percentage use of superior materials d. The size of incentive payments per non-defective pair e. Base pay increases
c. The percentage of newly-hired workers and the percentage use of superior materials
 
Which one of the following does not affect the reject rates at a company’s plants? a. The size of the incentive payment per non-defective pair produced b. Spending for TQM/Six Sigma quality control efforts c. The number of models/styles comprising the company’s product line d. The installation of plant upgrade C e. Spending for best practices training
d. The installation of plant upgrade C
 
Which of the following are the 5 measures on which a company’s performance is judged/scored? a. S/Q rating, revenues, EPS, ROE, and year-end cash balance b. Quality rating, stock price, dividends, credit rating, and net profit margin c. Earnings per share, ROE, stock price, credit rating, and image rating d. Revenues, global market share, net profits, ROE, and credit rating e. Revenues, net profit, stock price, credit rating, and global market share
c. Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region? a. Whether the company’s private-label footwear has a higher S/Q rating than the footwear of rival private-label manufacturers b. The number of models/styles comprising the company’s product line c. The appeal of the celebrities signed to endorse the company’s footwear d. The amount of merchandising support provided to retailers e. The company’s bid price
e. The company’s bid price
 
Which the following are factors in determining a company’s credit rating? a. Its default risk ratio, debt-asset ratio, and interest coverage ratio b. Its times-interest-earned ratio, debt-equity ratio, and return on investment c. A company’s current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments d. Its loans outstanding, dividend payout ratio, debt-equity ratio, and free cash flow e. Its debt-equity ratio, current ratio, and gross profit margin
a. Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following best describes the materials the company uses to make its footwear? a. Interior lining fabrics, waterproof microfibers, rubber, cotton shoelaces, and fiberglass thread b. Standard and superior materials c. Synthetic fibers, waterproof polyesters, microfibers, rubber, high-strength threads, and metal eyelets d. High-strength and regular-strength materials e. Normal-wear and long-wear materials
b. Standard and superior materials
 
Which of the following are components of the compensation package for production workers at your company’s plants? a. Annual base salary, teamwork bonuses, fringe benefits, and stock options b. Weekly salary, fringe benefits, year-end bonuses tied to the number of non-defective pairs produced, and overtime pay c. Hourly wages, fringe benefits, and overtime pay d. Base wages, incentive payments per non defective pair produced, and overtime pay e. Annual base pay, piecework incentives per pair produced, perfect attendance bonuses at best practices training programs, stock options, fringe benefits, and overtime pay
d. Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which of the following most accurately describes your company’s plant operations? a. Standard materials are used to make private-label shoes and are sourced from outside suppliers; superior materials are produced in-house and are used in branded footwear production. b. All private-label footwear is outsourced form contract manufacturers in Latin America and the Asia-Pacific at prices of $12.50 per pair. c. Branded footwear is produced round-the-clock (3 shifts per day) 5 days per week; private-label footwear is made using only 1 shift per day (due to higher production-run set-up times for private-label models/styles). d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced. e.TQM/Six Sigma quality control is used to reduce reject rates while best practices training is used to increase S/Q ratings and the number of different models that can be produced each week.
d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear? a. Asia-Pacific, Europe-Africa, North America, and Latin America b. The European Union, North America, Southeast Asia, and Latin America c. Latin America, Europe, China, and North America d. Argentina, Great Britain, the U.S., and Japan e. North America, Asia, European Union, and Middle East
a. Asia-Pacific, Europe-Africa, North America, and Latin America
 
In Year 11, footwear companies can expect to sell a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort. b. an average of 5.2 million branded pairs and an average of 880,000 private-label pairs. c. an average of 5.5 million branded pairs and an average of 700,000 private-label pairs, although some companies may sell more pairs than the average and other companies may sell fewer than the average due to differing levels of competitive effort. d. no less than 3.95 and no more than 4.95 million branded pairs and no less than 650,000 and no more than 950,000 private-label pairs. e. exactly 4.844 million branded pairs and 800,000 private-label pairs.
a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The market for private-label athletic footwear is projected to grow a. 10% annually in North America and Europe-Africa during the Year 11-Year 15 period and 8.5% annually in Latin America and the Asia-Pacific regions during the Year 11-Year 20 period. b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period. c. 6-8% annually in North America and Europe-Africa during the Year 11-Year 20 period and 10-12% annually in Latin America and the Asia-Pacific during the Year 11-Year 20 period. d. 12-14% annually in all 4 regions during the Year 11-Year 15 period and 8-10% annually in all 4 regions during the Year 16-Year 20 period. e. 12% annually in all four geographic markets during Years 11-15, and then slow gradually to 8% annually in all markets by Year 20.
b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by a. how favorably its wholesale price compares with the highest wholesale price being charged by any rival in any geographic region. b. how favorably its wholesale price compares with the wholesale price being charged by company having the lowest-priced footwear brand (after all mail-in rebates are factored in). c. whether its wholesale price is above or below the average price of all companies competing in that geographic region. d. how favorably its wholesale price compares to the lowest price being charged by the rival company having the largest number of models/styles in the region. e. whether its wholesale price is above or below the average price of all companies having the same S/Q rating in the region.
c. whether its wholesale price is above or below the average price of all companies competing in that geographic region.
 
The market for branded athletic footwear is projected to grow a. between 8-11% annually worldwide during the Year 11-20 period. b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period. c. 6-9% annually in all four geographic regions during the Year 11-Year 15 period and 7-8% annually in all four regions during the Year 16-Year 20 period. d. 10-12% annually in North America and Europe-Africa during the Year 11-Year 15 period and 6-8% annually in these regions during the Year 16-Year 20 period. e. 6% annually in all four geographic markets during Years 11-15, and then slow gradually to 3% annually in all markets by Year 20.
b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
The factors that affect a company’s S/Q rating include: a. the size of annual base pay increases; reject rates; expenditures for best practices training; whether plant upgrade B has been installed. b. the number of performance features built into branded models/styles annually; the durability of its athletic shoes; how much best practices training the average production worker has had; and plant reject rates. c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model. d. how well compensated its work force is; whether shoes are produced with standard materials or superior materials; the durability and quality of the footwear, and how many models/styles are included in its product line. e. whether materials are produced in-house or outsourced; overall footwear quality; how much is spent to inspect newly-produced pairs and avoid shipping defective shoes; the size of the incentives paid to production workers.
c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to a. any applicable import tariffs and exchange rate adjustments. b. shipping charges of $3 per pair on all pairs shipped from one region to another region and exchange rate shifts of as high as 10%. c. tariffs of $6 per pair and shipping fees of $2 per pair. d. export fees equal to 10% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 25%. e. 1-million pair import quotas on shipments from foreign plants to Europe-Africa and Asia-Pacific and exchange rate shifts of as high as 5%.
a. any applicable import tariffs and exchange rate adjustments.
 
The interest rate a company pays on loans outstanding depends on a. its free cash flow in the prior year and whether its prior-year net profit margin exceeded 10%. b. its credit rating. c. Its accounts payable ratio, its debt-assets ratio, and its loan default percentage over the past three years. d. its current ratio, debt-equity ratio, and default risk ratio. e. its current ratio, the amount of cash on hand to make interest payments, and the average annual amount of free cash flow.
b. its credit rating.
 
The company currently has production facilities to make athletic footwear in a. Taiwan, India, Brazil, and Middle East. b. North America and Asia-Pacific. c. Asia-Pacific and Latin America. d. the Middle East and China. e. North America and Latin America.
b. North America and Asia-Pacific.
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region? a. The number of retailers stocking the company’s footwear brand b. The number of models/styles in the company’s product line c. Footwear features and footwear durability d. S/Q ratings of the company’s footwear e. Expenditures for retailer support
c. Footwear features and footwear durability
 
The company’s present production capability (as of Year 10) is: a. 4 million pairs without the use of overtime and 6 million pairs with the use of overtime. b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime. c. 6 million pairs without the use of overtime and 6.6 million pairs with the use of overtime. d. 8 million pairs without the use of overtime and 10 million pairs with the use of overtime. e. 4 million pairs without the use of overtime and 5 million pairs with the use of overtime.
b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which of the following is/are not among the factors that affect worker productivity? a. Expenditures for best practices training b. Whether plant upgrade option D has been installed c. The percentage of newly-hired workers and the percentage use of superior materials d. The size of incentive payments per non-defective pair e. Base pay increases
c. The percentage of newly-hired workers and the percentage use of superior materials
 
Which one of the following does not affect the reject rates at a company’s plants? a. The size of the incentive payment per non-defective pair produced b. Spending for TQM/Six Sigma quality control efforts c. The number of models/styles comprising the company’s product line d. The installation of plant upgrade C e. Spending for best practices training
d. The installation of plant upgrade C
 
Which of the following are the 5 measures on which a company’s performance is judged/scored? a. S/Q rating, revenues, EPS, ROE, and year-end cash balance b. Quality rating, stock price, dividends, credit rating, and net profit margin c. Earnings per share, ROE, stock price, credit rating, and image rating d. Revenues, global market share, net profits, ROE, and credit rating e. Revenues, net profit, stock price, credit rating, and global market share
c. Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region? a. Whether the company’s private-label footwear has a higher S/Q rating than the footwear of rival private-label manufacturers b. The number of models/styles comprising the company’s product line c. The appeal of the celebrities signed to endorse the company’s footwear d. The amount of merchandising support provided to retailers e. The company’s bid price
e. The company’s bid price
 
Which the following are factors in determining a company’s credit rating? a. Its default risk ratio, debt-asset ratio, and interest coverage ratio b. Its times-interest-earned ratio, debt-equity ratio, and return on investment c. A company’s current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments d. Its loans outstanding, dividend payout ratio, debt-equity ratio, and free cash flow e. Its debt-equity ratio, current ratio, and gross profit margin
a. Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following best describes the materials the company uses to make its footwear? a. Interior lining fabrics, waterproof microfibers, rubber, cotton shoelaces, and fiberglass thread b. Standard and superior materials c. Synthetic fibers, waterproof polyesters, microfibers, rubber, high-strength threads, and metal eyelets d. High-strength and regular-strength materials e. Normal-wear and long-wear materials
b. Standard and superior materials
 
Which of the following are components of the compensation package for production workers at your company’s plants? a. Annual base salary, teamwork bonuses, fringe benefits, and stock options b. Weekly salary, fringe benefits, year-end bonuses tied to the number of non-defective pairs produced, and overtime pay c. Hourly wages, fringe benefits, and overtime pay d. Base wages, incentive payments per non defective pair produced, and overtime pay e. Annual base pay, piecework incentives per pair produced, perfect attendance bonuses at best practices training programs, stock options, fringe benefits, and overtime pay
d. Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which of the following most accurately describes your company’s plant operations? a. Standard materials are used to make private-label shoes and are sourced from outside suppliers; superior materials are produced in-house and are used in branded footwear production. b. All private-label footwear is outsourced form contract manufacturers in Latin America and the Asia-Pacific at prices of $12.50 per pair. c. Branded footwear is produced round-the-clock (3 shifts per day) 5 days per week; private-label footwear is made using only 1 shift per day (due to higher production-run set-up times for private-label models/styles). d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced. e.TQM/Six Sigma quality control is used to reduce reject rates while best practices training is used to increase S/Q ratings and the number of different models that can be produced each week.
d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear? a. Asia-Pacific, Europe-Africa, North America, and Latin America b. The European Union, North America, Southeast Asia, and Latin America c. Latin America, Europe, China, and North America d. Argentina, Great Britain, the U.S., and Japan e. North America, Asia, European Union, and Middle East
a. Asia-Pacific, Europe-Africa, North America, and Latin America
 
In Year 11, footwear companies can expect to sell a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort. b. an average of 5.2 million branded pairs and an average of 880,000 private-label pairs. c. an average of 5.5 million branded pairs and an average of 700,000 private-label pairs, although some companies may sell more pairs than the average and other companies may sell fewer than the average due to differing levels of competitive effort. d. no less than 3.95 and no more than 4.95 million branded pairs and no less than 650,000 and no more than 950,000 private-label pairs. e. exactly 4.844 million branded pairs and 800,000 private-label pairs.
a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The market for private-label athletic footwear is projected to grow a. 10% annually in North America and Europe-Africa during the Year 11-Year 15 period and 8.5% annually in Latin America and the Asia-Pacific regions during the Year 11-Year 20 period. b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period. c. 6-8% annually in North America and Europe-Africa during the Year 11-Year 20 period and 10-12% annually in Latin America and the Asia-Pacific during the Year 11-Year 20 period. d. 12-14% annually in all 4 regions during the Year 11-Year 15 period and 8-10% annually in all 4 regions during the Year 16-Year 20 period. e. 12% annually in all four geographic markets during Years 11-15, and then slow gradually to 8% annually in all markets by Year 20.
b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by a. how favorably its wholesale price compares with the highest wholesale price being charged by any rival in any geographic region. b. how favorably its wholesale price compares with the wholesale price being charged by company having the lowest-priced footwear brand (after all mail-in rebates are factored in). c. whether its wholesale price is above or below the average price of all companies competing in that geographic region. d. how favorably its wholesale price compares to the lowest price being charged by the rival company having the largest number of models/styles in the region. e. whether its wholesale price is above or below the average price of all companies having the same S/Q rating in the region.
c. whether its wholesale price is above or below the average price of all companies competing in that geographic region.
 
The market for branded athletic footwear is projected to grow a. between 8-11% annually worldwide during the Year 11-20 period. b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period. c. 6-9% annually in all four geographic regions during the Year 11-Year 15 period and 7-8% annually in all four regions during the Year 16-Year 20 period. d. 10-12% annually in North America and Europe-Africa during the Year 11-Year 15 period and 6-8% annually in these regions during the Year 16-Year 20 period. e. 6% annually in all four geographic markets during Years 11-15, and then slow gradually to 3% annually in all markets by Year 20.
b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
The factors that affect a company’s S/Q rating include: a. the size of annual base pay increases; reject rates; expenditures for best practices training; whether plant upgrade B has been installed. b. the number of performance features built into branded models/styles annually; the durability of its athletic shoes; how much best practices training the average production worker has had; and plant reject rates. c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model. d. how well compensated its work force is; whether shoes are produced with standard materials or superior materials; the durability and quality of the footwear, and how many models/styles are included in its product line. e. whether materials are produced in-house or outsourced; overall footwear quality; how much is spent to inspect newly-produced pairs and avoid shipping defective shoes; the size of the incentives paid to production workers.
c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to a. any applicable import tariffs and exchange rate adjustments. b. shipping charges of $3 per pair on all pairs shipped from one region to another region and exchange rate shifts of as high as 10%. c. tariffs of $6 per pair and shipping fees of $2 per pair. d. export fees equal to 10% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 25%. e. 1-million pair import quotas on shipments from foreign plants to Europe-Africa and Asia-Pacific and exchange rate shifts of as high as 5%.
a. any applicable import tariffs and exchange rate adjustments.
 
The interest rate a company pays on loans outstanding depends on a. its free cash flow in the prior year and whether its prior-year net profit margin exceeded 10%. b. its credit rating. c. Its accounts payable ratio, its debt-assets ratio, and its loan default percentage over the past three years. d. its current ratio, debt-equity ratio, and default risk ratio. e. its current ratio, the amount of cash on hand to make interest payments, and the average annual amount of free cash flow.
b. its credit rating.
 
At the end of Year 10, going into Year 11, the company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
The market for private-label athletic footwear is projected to grow
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S. dollars, and Brazilian reals
 
Which of the following is not an accurate characteristic of your company’s plant operations?
The company makes most all of its footwear materials and components in-house, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
how favorably its wholesale price compares with the wholesale price of the company having the highest S/Q rating in any of the four geographic regions.
 
The interest rate a company pays on loans outstanding depends on
its credit rating.
 
The factors that affect a company’s S/Q rating include:
whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments.
 
The factors that affect worker productivity include
Whether plant upgrade option D has been installed, the size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.
 
Which one of the following does not affect the reject rates at a company’s plants?
The S/Q rating of pairs being produced and the use of plant upgrade option B
 
The market for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
In Year 11, footwear companies can expect to sell
exactly 4.844 million branded pairs and 800,000 private-label pairs.
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, and Europe-Africa,
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
The number of new performance features built into each year’s models/styles
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific.
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
Which the following are factors in determining a company’s credit rating?
Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific
 
What are the factors in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
Internet and Wholesale 1. The S/Q Rating. 2. Number of Models/Styles 3. Brand Advertising. 4. Appeal of Celebrities Endorsing 5. The Company’s Brand. Wholesale 1) Average Wholesale Price for Branded Footwear Sold to Retailers 2) The Numbers of Retail Outlets Carrying the Company’s Brand 3)The Number of Weeks It Takes to Deliver Orders to Retailers. 4) Support Offered to Retailers in Merchandising and Promoting the Company’s Brand 5) Mail-in Rebates Internet 1) AverageRetail Price Charged at Each Company’s Regional Websites 2) Search Engine Advertising 3) Free Shipping on Online Purchases
 
The company’s present production capability (as of Year 10) is:
8 million 11 million
 
What factors that affect worker productivity?
Pairs Overtime Pairs
 
What affect the reject rates at a company’s plants?
– size of incentive pay per non defective pair produces -spending for tqm and quality control -best practice training -number of models -use of new equipment -production improvement option A
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating
 
What is the most important factors in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
1. Price 2. S/Q Ratings 3. # of modes styles offered
 
Which the following are factors in determining a company’s credit rating?
Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following best describes the materials the company uses to make its footwear
Standard and superior materials
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base Pay, Incentive pay per non- defective pair produced, and Overtime pay
 
Which of the following most accurately describes your company’s plant operations?
Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
Asia-Pacific, Europe-Africa, North America, and Latin America
 
In Year 11, footwear companies can expect to sell
Branded: 7,911,000 Private Label: 892,000
 
The market for private-label athletic footwear is projected to grow
11 to 13% worldwide from years 11- 15 9 to 11% years 16- 20
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
Whether its wholesale price is above or below the average price of all companies competing in that geographic region
 
The factors that affect a company’s S/Q rating include:
– % of superior materials – expenditures for enhances styling -TQM and Six Sigma Programs
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments.
 
The interest rate a company pays on loans outstanding depends on
its credit rating
 
The company currently has production facilities to make athletic footwear in a. Taiwan, India, Brazil, and Middle East. b. North America and Asia-Pacific. c. Asia-Pacific and Latin America. d. the Middle East and China. e. North America and Latin America.
b. North America and Asia-Pacific.
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region? a. The number of retailers stocking the company’s footwear brand b. The number of models/styles in the company’s product line c. Footwear features and footwear durability d. S/Q ratings of the company’s footwear e. Expenditures for retailer support
c. Footwear features and footwear durability
 
The company’s present production capability (as of Year 10) is: a. 4 million pairs without the use of overtime and 6 million pairs with the use of overtime. b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime. c. 6 million pairs without the use of overtime and 6.6 million pairs with the use of overtime. d. 8 million pairs without the use of overtime and 10 million pairs with the use of overtime. e. 4 million pairs without the use of overtime and 5 million pairs with the use of overtime.
b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which of the following is/are not among the factors that affect worker productivity? a. Expenditures for best practices training b. Whether plant upgrade option D has been installed c. The percentage of newly-hired workers and the percentage use of superior materials d. The size of incentive payments per non-defective pair e. Base pay increases
c. The percentage of newly-hired workers and the percentage use of superior materials
 
Which one of the following does not affect the reject rates at a company’s plants? a. The size of the incentive payment per non-defective pair produced b. Spending for TQM/Six Sigma quality control efforts c. The number of models/styles comprising the company’s product line d. The installation of plant upgrade C e. Spending for best practices training
d. The installation of plant upgrade C
 
Which of the following are the 5 measures on which a company’s performance is judged/scored? a. S/Q rating, revenues, EPS, ROE, and year-end cash balance b. Quality rating, stock price, dividends, credit rating, and net profit margin c. Earnings per share, ROE, stock price, credit rating, and image rating d. Revenues, global market share, net profits, ROE, and credit rating e. Revenues, net profit, stock price, credit rating, and global market share
c. Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region? a. Whether the company’s private-label footwear has a higher S/Q rating than the footwear of rival private-label manufacturers b. The number of models/styles comprising the company’s product line c. The appeal of the celebrities signed to endorse the company’s footwear d. The amount of merchandising support provided to retailers e. The company’s bid price
e. The company’s bid price
 
Which the following are factors in determining a company’s credit rating? a. Its default risk ratio, debt-asset ratio, and interest coverage ratio b. Its times-interest-earned ratio, debt-equity ratio, and return on investment c. A company’s current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments d. Its loans outstanding, dividend payout ratio, debt-equity ratio, and free cash flow e. Its debt-equity ratio, current ratio, and gross profit margin
a. Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following best describes the materials the company uses to make its footwear? a. Interior lining fabrics, waterproof microfibers, rubber, cotton shoelaces, and fiberglass thread b. Standard and superior materials c. Synthetic fibers, waterproof polyesters, microfibers, rubber, high-strength threads, and metal eyelets d. High-strength and regular-strength materials e. Normal-wear and long-wear materials
b. Standard and superior materials
 
Which of the following are components of the compensation package for production workers at your company’s plants? a. Annual base salary, teamwork bonuses, fringe benefits, and stock options b. Weekly salary, fringe benefits, year-end bonuses tied to the number of non-defective pairs produced, and overtime pay c. Hourly wages, fringe benefits, and overtime pay d. Base wages, incentive payments per non defective pair produced, and overtime pay e. Annual base pay, piecework incentives per pair produced, perfect attendance bonuses at best practices training programs, stock options, fringe benefits, and overtime pay
d. Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which of the following most accurately describes your company’s plant operations? a. Standard materials are used to make private-label shoes and are sourced from outside suppliers; superior materials are produced in-house and are used in branded footwear production. b. All private-label footwear is outsourced form contract manufacturers in Latin America and the Asia-Pacific at prices of $12.50 per pair. c. Branded footwear is produced round-the-clock (3 shifts per day) 5 days per week; private-label footwear is made using only 1 shift per day (due to higher production-run set-up times for private-label models/styles). d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced. e.TQM/Six Sigma quality control is used to reduce reject rates while best practices training is used to increase S/Q ratings and the number of different models that can be produced each week.
d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear? a. Asia-Pacific, Europe-Africa, North America, and Latin America b. The European Union, North America, Southeast Asia, and Latin America c. Latin America, Europe, China, and North America d. Argentina, Great Britain, the U.S., and Japan e. North America, Asia, European Union, and Middle East
a. Asia-Pacific, Europe-Africa, North America, and Latin America
 
In Year 11, footwear companies can expect to sell a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort. b. an average of 5.2 million branded pairs and an average of 880,000 private-label pairs. c. an average of 5.5 million branded pairs and an average of 700,000 private-label pairs, although some companies may sell more pairs than the average and other companies may sell fewer than the average due to differing levels of competitive effort. d. no less than 3.95 and no more than 4.95 million branded pairs and no less than 650,000 and no more than 950,000 private-label pairs. e. exactly 4.844 million branded pairs and 800,000 private-label pairs.
a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The market for private-label athletic footwear is projected to grow a. 10% annually in North America and Europe-Africa during the Year 11-Year 15 period and 8.5% annually in Latin America and the Asia-Pacific regions during the Year 11-Year 20 period. b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period. c. 6-8% annually in North America and Europe-Africa during the Year 11-Year 20 period and 10-12% annually in Latin America and the Asia-Pacific during the Year 11-Year 20 period. d. 12-14% annually in all 4 regions during the Year 11-Year 15 period and 8-10% annually in all 4 regions during the Year 16-Year 20 period. e. 12% annually in all four geographic markets during Years 11-15, and then slow gradually to 8% annually in all markets by Year 20.
b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by a. how favorably its wholesale price compares with the highest wholesale price being charged by any rival in any geographic region. b. how favorably its wholesale price compares with the wholesale price being charged by company having the lowest-priced footwear brand (after all mail-in rebates are factored in). c. whether its wholesale price is above or below the average price of all companies competing in that geographic region. d. how favorably its wholesale price compares to the lowest price being charged by the rival company having the largest number of models/styles in the region. e. whether its wholesale price is above or below the average price of all companies having the same S/Q rating in the region.
c. whether its wholesale price is above or below the average price of all companies competing in that geographic region.
 
The market for branded athletic footwear is projected to grow a. between 8-11% annually worldwide during the Year 11-20 period. b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period. c. 6-9% annually in all four geographic regions during the Year 11-Year 15 period and 7-8% annually in all four regions during the Year 16-Year 20 period. d. 10-12% annually in North America and Europe-Africa during the Year 11-Year 15 period and 6-8% annually in these regions during the Year 16-Year 20 period. e. 6% annually in all four geographic markets during Years 11-15, and then slow gradually to 3% annually in all markets by Year 20.
b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
The factors that affect a company’s S/Q rating include: a. the size of annual base pay increases; reject rates; expenditures for best practices training; whether plant upgrade B has been installed. b. the number of performance features built into branded models/styles annually; the durability of its athletic shoes; how much best practices training the average production worker has had; and plant reject rates. c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model. d. how well compensated its work force is; whether shoes are produced with standard materials or superior materials; the durability and quality of the footwear, and how many models/styles are included in its product line. e. whether materials are produced in-house or outsourced; overall footwear quality; how much is spent to inspect newly-produced pairs and avoid shipping defective shoes; the size of the incentives paid to production workers.
c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to a. any applicable import tariffs and exchange rate adjustments. b. shipping charges of $3 per pair on all pairs shipped from one region to another region and exchange rate shifts of as high as 10%. c. tariffs of $6 per pair and shipping fees of $2 per pair. d. export fees equal to 10% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 25%. e. 1-million pair import quotas on shipments from foreign plants to Europe-Africa and Asia-Pacific and exchange rate shifts of as high as 5%.
a. any applicable import tariffs and exchange rate adjustments.
 
The interest rate a company pays on loans outstanding depends on a. its free cash flow in the prior year and whether its prior-year net profit margin exceeded 10%. b. its credit rating. c. Its accounts payable ratio, its debt-assets ratio, and its loan default percentage over the past three years. d. its current ratio, debt-equity ratio, and default risk ratio. e. its current ratio, the amount of cash on hand to make interest payments, and the average annual amount of free cash flow.
b. its credit rating.
 
At the end of Year 10, going into Year 11, the company’s production capability was
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
The market for private-label athletic footwear is projected to grow
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S. dollars, and Brazilian reals
 
Which of the following is not an accurate characteristic of your company’s plant operations?
The company makes most all of its footwear materials and components in-house, uses 100-person assembly lines to make branded shoes at the rate of 500 pairs per day, and outsources private-label footwear from contract manufacturers in the Asia-Pacific.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
how favorably its wholesale price compares with the wholesale price of the company having the highest S/Q rating in any of the four geographic regions.
 
The interest rate a company pays on loans outstanding depends on
its credit rating.
 
The factors that affect a company’s S/Q rating include:
whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments.
 
The factors that affect worker productivity include
Whether plant upgrade option D has been installed, the size of incentive payments per non-defective pair, base pay increases, how favorably a company’s compensation package compares with the industry-average compensation package, and expenditures for best practices training.
 
Which one of the following does not affect the reject rates at a company’s plants?
The S/Q rating of pairs being produced and the use of plant upgrade option B
 
The market for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
In Year 11, footwear companies can expect to sell
exactly 4.844 million branded pairs and 800,000 private-label pairs.
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear?
North America, Latin America, Asia-Pacific, and Europe-Africa,
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
The number of new performance features built into each year’s models/styles
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific.
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
Which the following are factors in determining a company’s credit rating?
Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
In year 11, footwear companies can expect to sell
an average of 4.84 million branded pairs and an average of 800,000 private label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The interest rate a company pays on loans outstanding depends on
its credit rating
 
The company’s present production capability (as of Year 10) is
6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime
 
The factors that affect a company’s S/Q rating include:
the percentage use of superior materials; a company’s cumulative spending for TQM/Six Sigma quality control programs; the use of best practices training; and expenditures or new styling/features per model
 
Which one of the following does not affect the reject rates?
The installation of plant upgrade C
 
Which of the following are the 4 geographic regions in which the company sells branded and private label athletic footwear?
Asia-Pacific, Europe-Africa, Latin America, and North America
 
The market for PRIVATE label athletic footwear is projected to grow
10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period
 
Which of the following most accurately describes your company’s plant operations?
Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which of the following is/are not among the factors that affect worker productivity?
The percentage of newly-hired workers and the percentage use of superior materials
 
The company’s shipments of newly produced branded and private label footwear from its plants to its regional distribution centers are subject to
any applicable import tariffs and exchange rate adjustments
 
The company currently has production facilities to make athletic footwear in
North America and Asia-Pacific
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
Singapore dollars, euros, U.S Dollars, and Brazilian reals
 
Which of the following are the 5 measures on which a company’s performance is judged/scored?
Earnings per share, ROE, Stock price, Credit rating, and image rating
 
Which of the following best describes the materials the company uses to make its footwear?
Standard and superior materials
 
The market for BRANDED athletic footwear is projected to grow
5-7% annually in North America and Europe-Africa during Year 11-Year 15 and 3-5% annually in these regions during the Year 16-Year 20 period.
 
Which of the following are factors in determining a company’s credit rating?
Its debt-asset ratio, default risk ratio, and interest coverage ratio
 
Which of the following are components of the compensation package for production workers at your company’s plants?
Base wages, incentive payments per non defective pair produced, and overtime pay.
 
A footwear makers price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by
whether its wholesale price is above or below the average price of all companies competing in that geographic region
 
The reject rates at the company’s footwear plants are a function of
the size of the incentive payment per non defective pair produced, spending for best practices training, spending for TQM/Six Sigma quality control efforts, the number of models/styles comprising the company’s product line, and the installation of plant upgrade option A
 
Which of the following is not among the factors that affect worker productivity?
Whether plant upgrade option A has been installed
 
Which of the following currencies are NOT involved in affecting the operations of your company’s business
Swiss francs, south African rand, Chilean pesos, and Turkish lira
 
Which of the following most accurately describes your companys plant operations?
TQM/Six sigma quality control programs and best practices training are used to boost the S/Q ratings of both branded and private label footwear
 
The company currently has production facilities to make athletic footwear in
Asia-Pacific and North America
 
Which of the following is NOT a factor is determining a company’s unit sales and market share of branded footwear in a particular geographic region? (DO NOT confuse with question 15)
The number of new performance features built into each year’s models/styles
 
Which one of the following is not one of the factors that affect the S/Q rating of a company’s footwear?
How much is spent to inspect newly produced pairs and avoid shipping defective shoes
 
Which one of the following does not affect the reject rates at a company’s plants?
The s/q rating of pairs being produced and the use of plant upgrade option B
 
The factors that affect worker productivity include
Whether plant upgrade option D has been installed, the size of incentive payments per non defective pair, base pay increases, how favorably a company’s compensation package compares with the industry average compensation package, and expenditures for practices training
 
Which of the following is not an accurate description of your company’s plant operations?
A private label footwear is outsourced from contract manufacturers in Latin America and the Asia-Pacific at prices equal to $8 per pair
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region?
Footwear features and footwear durability
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private label footwear in a particular geographic region?
The company’s bid price
 
Which of the following is/are not among the factors that affect worker productivity? (same as 9?) **LOOK into
S/Q Ratings and the warranty claim rate on recently sold footwear
 
The market for branded athletic wear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during Year11-Year 15 and 7-9% annually in these regions during the year 16-year 20 period
 
The market for branded athletic wear is projected to grow
9-11% annually in Latin and Asia Pacific during the year 11 – year 15 period and 5-7% annually in North America and Europe-Africa during the year 11-15 period
 
The difference between a company’s business model and a company’s strategy is that
its business model relates to management’s blueprint for delivering a valuable product or service to customers in a manner that will generate ample revenues to cover costs and yield an attractive profit while its strategy relates to the companies competitive moves and business approaches (which may or may not lead to profitability)
 
A company’s strategy is a “work in progress” and evolves over time because of
The need to react and respond to changing market and competitive conditions and ongoing management efforts to improve this or that piece of the strategy
 
Good strategy and good strategy execution
are the most trustworthy signs of good management
 
Based on figure 1.1, which of the following is not something to look for in identifying a company’s strategy?
Actions to rise or lower the company’s performance targets and actions to pay down the company’s long-term debt
 
Which of the following statements about a company’s strategy is false?
Well-crafted company strategies rarely need to be changed unless one or more important rival firms launch unexpected strategic initiatives that endanger the company’s strategy long-term profitability
 
A company’s business model
sets forth how its strategy and business approaches will create value for customers while at the same time generating ample revenues to cover costs and realize a profit
 
Which of the following is not a frequently used strategic approach to setting a company apart from rivals, delivering superior value, achieving competitive advantage, and converting buyers into loyal customers?
striving to be more profitable than rivals and aiming for a competitive edge based on bigger profit margins
 
The two crucial elements of a company’s business model are
its customers vale proposition (which lays out the company’s approach to satisfying buyer needs and requirements at a price they will consider a good value) and its “profit formula” (the business approach, means of generating revenues, principal resources, and operating systems that will be employed to create and deliver that intended customer value cost-efficiently and at a price that will enable attractive profits)
 
A company’s strategy and its quest for competitive advantage are tightly connected because
a company is almost certain to earn significantly higher profits when it enjoys a competitive advantage as opposed to when it competes with no advantage or is hamstrung by completive disadvantage
 
A company’s strategy is defined by
the specific market positioning, competitive moves, and business approaches that form management’s answer to “What’s our plan for running the company and producing good results?”
 
Which of the following questions helps distinguishing a winning strategy from a mediocre or losing strategy?
Is the strategy helping the company achieve a sustainable competitive advantage and is it resulting in good company performance?
 
A company’s strategy evolves from one version to the next
as managers abandon obsolete or ineffective strategy elements, settle upon a set of proactive strategy elements, and then- as new circumstances unfold–make adaptive strategic adjustments, which gives rise to reactive strategy elements
 
Crafting an ethical strategy requires that managers
carefully and conscientiously consider whether each proposed strategy element can pass the test of moral scrutiny in the sense of not being shady, unconscionable, or injurious to others.
 
Which of the following is not something a company’s strategy is concerned with?
Management’s choice of which of several alternative business models to employ in delivering value to customers and to shareholders
 
In choosing among strategy alternatives, company managers
are well-advised to embrace strategic actions that can pass the test of moral scrutiny– it is not enough to just stay within the bounds of what is legal and acceptable to regulators
 
In endeavoring to craft an ethical strategy, company managers
have to go beyond what strategic actions and behaviors are deemed legal and address whether all the various elements of the company’s strategy can pass the test of moral scrutiny
 
In crafting a strategy, management is in effect saying
“among all the many different business approaches and ways of competing we could have chosen, we have decided to employ this particular combination of competitive and operating approaches in moving the company in the intended direction, strengthening its market position and competitiveness, and meeting or beating our performance objectives”
 
The customer value proposition portion of a company’s business model concerns
the company’s approach to satisfying buyer needs and requirements at a price they will consider a good value
 
According to Figure 1.1, which of the following is not something to look for in identifying a company’s strategy?
Actions to strengthen the company’s competitive position by hiring one or more new top executives or laying off a portion of its work force or paying down its long-term debt
 
Which one of the following statements about whether a company’s strategy can be considered ethical is true?
Just keeping a company’s strategic actions within the bounds of what is legal and acceptable to regulators does not mean the strategy is ethical
 
A winning strategy is one that
helps the company achieve a sustainable competitive advantage, results in better company performance, and fits the company’s internal and external situation
 
Which of the following is not one of the reasons that a company’s strategy evolves over time?
The need on the part of company managers to make regular strategy adjustments so as to avoid the risk that rivals might soon find ways to weaken or defeat its present strategy improvements of their own
 
Which of the following statements about a company’s strategy is true?
A company’s strategy is typically a blend of proactive and reactive strategy elements
 
Good strategy combined with good strategy execution
are strongly correlated with how well the company performs both financially and in the marketplace
 
The company currently has production facilities to make athletic footwear in a. Taiwan, India, Brazil, and Middle East. b. North America and Asia-Pacific. c. Asia-Pacific and Latin America. d. the Middle East and China. e. North America and Latin America.
b. North America and Asia-Pacific.
 
Which one of the following is not a factor in determining a company’s unit sales and market share of branded footwear in a particular geographic region? a. The number of retailers stocking the company’s footwear brand b. The number of models/styles in the company’s product line c. Footwear features and footwear durability d. S/Q ratings of the company’s footwear e. Expenditures for retailer support
c. Footwear features and footwear durability
 
The company’s present production capability (as of Year 10) is: a. 4 million pairs without the use of overtime and 6 million pairs with the use of overtime. b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime. c. 6 million pairs without the use of overtime and 6.6 million pairs with the use of overtime. d. 8 million pairs without the use of overtime and 10 million pairs with the use of overtime. e. 4 million pairs without the use of overtime and 5 million pairs with the use of overtime.
b. 6 million pairs without the use of overtime and 7.2 million pairs with the use of overtime.
 
Which of the following is/are not among the factors that affect worker productivity? a. Expenditures for best practices training b. Whether plant upgrade option D has been installed c. The percentage of newly-hired workers and the percentage use of superior materials d. The size of incentive payments per non-defective pair e. Base pay increases
c. The percentage of newly-hired workers and the percentage use of superior materials
 
Which one of the following does not affect the reject rates at a company’s plants? a. The size of the incentive payment per non-defective pair produced b. Spending for TQM/Six Sigma quality control efforts c. The number of models/styles comprising the company’s product line d. The installation of plant upgrade C e. Spending for best practices training
d. The installation of plant upgrade C
 
Which of the following are the 5 measures on which a company’s performance is judged/scored? a. S/Q rating, revenues, EPS, ROE, and year-end cash balance b. Quality rating, stock price, dividends, credit rating, and net profit margin c. Earnings per share, ROE, stock price, credit rating, and image rating d. Revenues, global market share, net profits, ROE, and credit rating e. Revenues, net profit, stock price, credit rating, and global market share
c. Earnings per share, ROE, stock price, credit rating, and image rating
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region? a. Whether the company’s private-label footwear has a higher S/Q rating than the footwear of rival private-label manufacturers b. The number of models/styles comprising the company’s product line c. The appeal of the celebrities signed to endorse the company’s footwear d. The amount of merchandising support provided to retailers e. The company’s bid price
e. The company’s bid price
 
Which the following are factors in determining a company’s credit rating? a. Its default risk ratio, debt-asset ratio, and interest coverage ratio b. Its times-interest-earned ratio, debt-equity ratio, and return on investment c. A company’s current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments d. Its loans outstanding, dividend payout ratio, debt-equity ratio, and free cash flow e. Its debt-equity ratio, current ratio, and gross profit margin
a. Its default risk ratio, debt-asset ratio, and interest coverage ratio
 
Which of the following best describes the materials the company uses to make its footwear? a. Interior lining fabrics, waterproof microfibers, rubber, cotton shoelaces, and fiberglass thread b. Standard and superior materials c. Synthetic fibers, waterproof polyesters, microfibers, rubber, high-strength threads, and metal eyelets d. High-strength and regular-strength materials e. Normal-wear and long-wear materials
b. Standard and superior materials
 
Which of the following are components of the compensation package for production workers at your company’s plants? a. Annual base salary, teamwork bonuses, fringe benefits, and stock options b. Weekly salary, fringe benefits, year-end bonuses tied to the number of non-defective pairs produced, and overtime pay c. Hourly wages, fringe benefits, and overtime pay d. Base wages, incentive payments per non defective pair produced, and overtime pay e. Annual base pay, piecework incentives per pair produced, perfect attendance bonuses at best practices training programs, stock options, fringe benefits, and overtime pay
d. Base wages, incentive payments per non defective pair produced, and overtime pay
 
Which of the following most accurately describes your company’s plant operations? a. Standard materials are used to make private-label shoes and are sourced from outside suppliers; superior materials are produced in-house and are used in branded footwear production. b. All private-label footwear is outsourced form contract manufacturers in Latin America and the Asia-Pacific at prices of $12.50 per pair. c. Branded footwear is produced round-the-clock (3 shifts per day) 5 days per week; private-label footwear is made using only 1 shift per day (due to higher production-run set-up times for private-label models/styles). d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced. e.TQM/Six Sigma quality control is used to reduce reject rates while best practices training is used to increase S/Q ratings and the number of different models that can be produced each week.
d. Standard and superior materials are sourced from outside suppliers at prices that vary according to global demand-supply conditions; the company’s production workers are compensated on the basis of both base pay and incentive payments per non-defective pair produced.
 
Which the following are the four geographic regions in which the company sells branded and private-label athletic footwear? a. Asia-Pacific, Europe-Africa, North America, and Latin America b. The European Union, North America, Southeast Asia, and Latin America c. Latin America, Europe, China, and North America d. Argentina, Great Britain, the U.S., and Japan e. North America, Asia, European Union, and Middle East
a. Asia-Pacific, Europe-Africa, North America, and Latin America
 
In Year 11, footwear companies can expect to sell a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort. b. an average of 5.2 million branded pairs and an average of 880,000 private-label pairs. c. an average of 5.5 million branded pairs and an average of 700,000 private-label pairs, although some companies may sell more pairs than the average and other companies may sell fewer than the average due to differing levels of competitive effort. d. no less than 3.95 and no more than 4.95 million branded pairs and no less than 650,000 and no more than 950,000 private-label pairs. e. exactly 4.844 million branded pairs and 800,000 private-label pairs.
a. an average of 4.84 million branded pairs and an average of 800,000 private-label pairs, although sales at some companies may run higher or lower than the averages due to differing levels of competitive effort.
 
The market for private-label athletic footwear is projected to grow a. 10% annually in North America and Europe-Africa during the Year 11-Year 15 period and 8.5% annually in Latin America and the Asia-Pacific regions during the Year 11-Year 20 period. b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period. c. 6-8% annually in North America and Europe-Africa during the Year 11-Year 20 period and 10-12% annually in Latin America and the Asia-Pacific during the Year 11-Year 20 period. d. 12-14% annually in all 4 regions during the Year 11-Year 15 period and 8-10% annually in all 4 regions during the Year 16-Year 20 period. e. 12% annually in all four geographic markets during Years 11-15, and then slow gradually to 8% annually in all markets by Year 20.
b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5% annually in all four regions during the Year 16-Year 20 period.
 
A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particular geographic region is determined by a. how favorably its wholesale price compares with the highest wholesale price being charged by any rival in any geographic region. b. how favorably its wholesale price compares with the wholesale price being charged by company having the lowest-priced footwear brand (after all mail-in rebates are factored in). c. whether its wholesale price is above or below the average price of all companies competing in that geographic region. d. how favorably its wholesale price compares to the lowest price being charged by the rival company having the largest number of models/styles in the region. e. whether its wholesale price is above or below the average price of all companies having the same S/Q rating in the region.
c. whether its wholesale price is above or below the average price of all companies competing in that geographic region.
 
The market for branded athletic footwear is projected to grow a. between 8-11% annually worldwide during the Year 11-20 period. b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period. c. 6-9% annually in all four geographic regions during the Year 11-Year 15 period and 7-8% annually in all four regions during the Year 16-Year 20 period. d. 10-12% annually in North America and Europe-Africa during the Year 11-Year 15 period and 6-8% annually in these regions during the Year 16-Year 20 period. e. 6% annually in all four geographic markets during Years 11-15, and then slow gradually to 3% annually in all markets by Year 20.
b. 9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period and 7-9% annually in these regions during the Year 16-Year 20 period.
 
The factors that affect a company’s S/Q rating include: a. the size of annual base pay increases; reject rates; expenditures for best practices training; whether plant upgrade B has been installed. b. the number of performance features built into branded models/styles annually; the durability of its athletic shoes; how much best practices training the average production worker has had; and plant reject rates. c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model. d. how well compensated its work force is; whether shoes are produced with standard materials or superior materials; the durability and quality of the footwear, and how many models/styles are included in its product line. e. whether materials are produced in-house or outsourced; overall footwear quality; how much is spent to inspect newly-produced pairs and avoid shipping defective shoes; the size of the incentives paid to production workers.
c. whether plant upgrade C has been installed; a company’s cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model.
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to a. any applicable import tariffs and exchange rate adjustments. b. shipping charges of $3 per pair on all pairs shipped from one region to another region and exchange rate shifts of as high as 10%. c. tariffs of $6 per pair and shipping fees of $2 per pair. d. export fees equal to 10% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 25%. e. 1-million pair import quotas on shipments from foreign plants to Europe-Africa and Asia-Pacific and exchange rate shifts of as high as 5%.
a. any applicable import tariffs and exchange rate adjustments.
 
The interest rate a company pays on loans outstanding depends on a. its free cash flow in the prior year and whether its prior-year net profit margin exceeded 10%. b. its credit rating. c. Its accounts payable ratio, its debt-assets ratio, and its loan default percentage over the past three years. d. its current ratio, debt-equity ratio, and default risk ratio. e. its current ratio, the amount of cash on hand to make interest payments, and the average annual amount of free cash flow.
b. its credit rating.
 
Which of the following statements about the average wholesale price a company charges footwear retailers in a given geographic region is *incorrect*? A. the further a company’s average wholesale price to retailers in a geographic region is ABOVE the all-company regional average wholesale price, the bigger the negative impact of this price-based competitive disadvantage on its pairs sold and market share in a region. B. any company whose average wholesale price to retailers is ABOVE the regional average can overcome/offset some or perhaps all of its price-based competitive disadvantage by exerting stronger competitive efforts on some or many of the other 9 competitive factors that impacting branded pairs sold and market share in a region’s wholesale segment C. So long as a company has a big-price-based competitive advantage in a region’s wholesale segment, it has the ability to achieve an attractively-large sales volume and market share even if it suffers from competitive disadvantages on other competitively-relevant factors. D. the size of any company price-based competitive advantage in the wholesale segment (and the resulting positive impact on its unit sales and market share) can be enhanced by strengthening its competitive efforts on other competitive factors E. the further a company’s average wholesale price to retailers in a geographic region is BELOW the all-company regional average wholesale price, the bigger is the resulting positive impact on its pairs sold and market share and the bigger its price-based competitive advantage
C. So long as a company has a big-price-based competitive advantage in a region’s wholesale segment, it has the ability to achieve an attractively-large sales volume and market share even if it suffers from competitive disadvantages on other competitively-relevant factors.
 
which of the following is the most important competitive factor in determining a company’s ability to secure contracts to supply large multi-outlet retailers private-label footwear to chain retailers in a particular geographic region? A. the number of special high-performance features the company agrees to incorporate in the private-label footwear models it supplies B. the S/Q ratings on the private-label footwear the company offers to supply C. the price at which the company offers to supply retailers with private-label pairs D. the company’s brand reputation E. the amount and caliber of merchandising and promotional support the company offers to provide
C. the price at which the company offers to supply retailers with private-label pairs
 
which of the following statements about the impact of a company’s competitive efforts in a region on its regional market share and number of branded pairs sold is *false*? A. companies with more influential celebrity lineups in a region enjoy a competitive advantage in attracting buyers to purchase their brand in either retail stores or online as compared to regional rivals with less influential celebrity endorsements (or no celebrity endorsements) B. a footwear-maker achieves the biggest possible styling/quality-based competitive advantage in a given region when its branded footwear has a higher S/Q rating than any other company in the region C. a company’s pairs sold and market share outcomes in a region are positively impacted when the number of models/styles it offers for sale in the region is above the regional average. D. a company’s pairs sold and market share outcomes in a region are positively impacted when its brand reputation image rating in a region is above the regional average E. the more a company’s S/Q rating in a region is below the region’s all company average, the bigger is the company’s resulting competitive disadvantage and the bigger is the resulting negative impact on the company’s pairs sold and market share in the region.
B. a footwear-maker achieves the biggest possible styling/quality-based competitive advantage in a given region when its branded footwear has a higher S/Q rating than any other company in the region
 
which of the following is the most important competitive factor in determining a company’s ability to secure contracts to a supply private-label footwear to chain retailers in a particular geographic region? A. the amount of merchandising and promotional support the company agrees to provide to chain retailers that market its private label brand B. the appeal of the celebrities the company has signed to endorse its branded footwear C. the reputation the company has for being a supplier of high-quality private-label footwear D. the company’s price offer to supply chain retailers with private-label footwear E. the amount of brand advertising support the company agrees to provide to chain retailers
D. the company’s price offer to supply chain retailers with private-label footwear
 
The company’s shipments of newly-produced branded and private-label footwear from its plants to its regional distribution centers are subject to a. any applicable import tariffs and exchange rate adjustments. b. shipping charges of $2 per pair on all pairs shipped from one region to another region and exchange rate shifts of as high as 15%. c. tariffs of $8 per pair and shipping fees of $1 per pair. d. export fees equal to 10% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 25%. e. 3-million pair import quotas on shipments from foreign plants to Europe-Africa and Asia-Pacific and exchange rate shifts of as high as 20%.
A. any applicable import tariffs and exchange rate adjustments.
 
the interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of a a. its balance sheet strength as measured by its current ratio, debt-equity ratio, and accounts payable ration b. how many consecutive years the company has been profitable, its interest coverage ratio, and the number of loans it has paid of in time in the past five years c. its credit rating d. its default risk ratio, its working capital ratio, its prior-year ROE and EPS, and its prior year net cash flow from operations e. its credit rating and the length of the term over which repayment is scheduled to occur
E. its credit rating and the length of the term over which repayment is scheduled to occur
 
which of the following is among the 13 competitive factors that affect each company’s branded footwear sales volumes and market shares in each of the 4 geographic market regions? a. the number of discount-price sales promotions on athletic footwear that each company’s footwear retailers have annually b. the length of the warranties covering defective materials or workmanship that each footwear maker elects to provide on each branded pair purchased by buyer c. the percentage of footwear-maker’s models/styles that have retail prices under $100 d. the size of the percentage price discount off the standard retail price that footwear companies offer people shopping for athletic footwear at their websites e. the number of retailers stocking each company’s footwear brand and the number of weeks each company takes to deliver orders to retailers
E. the number of retailers stocking each company’s footwear brand and the number of weeks each company takes to deliver orders to retailers
 
the reject rate at the company’s footwear production facilities are a function of such factors as a. per worker expenditures for best practices training, the number and size each production facility’s production capacity, the number of hours of overtime pay production workers receive, and whether the production facility has installed production improvement option D b. the S/Q rating of the pairs being produced, the percentage use of superior materials, and the installation of production improvement option C c. the size of workers annual base pay, yearend incentive bonuses, the number of hours of overtime pay, the S/Q rating of the pairs being produced, annd the number of models/styles compromising the company’s product line d. spending for TQM/six sigma, quality control efforts, the number of models/styles compromising equipment, and whether production improvement option A has been installed e. the size of the incentive payment per non-defective pair produced, per pair spending for TQM/six stigma quality control efforts, the number of models/styles compromising the company’s product line, and the installation of plant upgrade option A
E. the size of the incentive payment per non-defective pair produced, per pair spending for TQM/six stigma quality control efforts, the number of models/styles compromising the company’s product line, and the installation of plant upgrade option A
 
which of the following is *not* among the factors that affect worker productivity? a. how favorably the total annual compensation of workers compares to industry-average total compensation levels at production facilities in the same region b. the percentage increases in annual base pay c. whether production workers are producing and assembling footwear with an S/Q rating above 7.0 stars d. the number of materials workers must assemble at a given production facility e. expenditures on best practices training
C. whether production workers are producing and assembling footwear with an S/Q rating above 7.0 stars
 
which of the following is *not* an accurate characteristic of your company’s production operations? a. TQM/six sigma quality control programs and best practices training are used to promote better workmanship and reduce the number of pairs rejected due to defects b. going into year 11, both of your company’s production facilities utilize 100% new state-of-the-art equipment that was installed in Year 8; because this equipment has a useful life of only 10 years, it will have to be replaced in year 18 c. training production workers in the use of best practice procedures at each step of the manufacturing process is an important means of reducing the reject rates on pairs produced that occur due to worker error and inattention to detail d. all additions of footwear-making equipment must be in increments of 250,000 pairs; it is up to company managers to determine whether the benefits of installing new equipment are worth the added costs e. standard and superior materials are sourced from outside suppliers and the “base” prices of these materials that can vary up and down according to strength of global demand for and usage of standard versus superiors materials in producing footwear.
B. going into year 11, both of your company’s production facilities utilize 100% new state-of-the-art equipment that was installed in Year 8; because this equipment has a useful life of only 10 years, it will have to be replaced in year 18
 
which of the following most accurately describes your company’s operations? a. branded production always takes place during regular time to save on labor costs, while the production of private-label footwear occurs chiefly during overtime periods b. the company compensates production workers at the rate of $2 for each pair produced and uses TQM/six stigma quality control programs to keep reject rates under 1% of the branded pairs produced c. standard materials are used to make private-label shoes and superior materials are used to make branded footwear d. TQM/six stigma quality control programs and best practices training are a means of increasing the S/Q ratings of both branded and private-label footwear produced at each production facility e. workers are organized into 3 person footwear production and assembly teams; each team has the capability to make 5,000 pairs annually; and teams are compensated at the rate of $12 per pair produced during regular time and $18 per pair when facilities are operating at overtime
D. TQM/six stigma quality control programs and best practices training are a means of increasing the S/Q ratings of both branded and private-label footwear produced at each production facility
 
which of the following are factors in determining a company’s credit rating? a. a company’s current ratio, quick ratio, inventory turnover ratio, and default risk ratio b. the percentage by which prior-year cash flow from operations covers a company’s prior-year payments, the company’s debt-asset ratio, its dividend payout ratio, and its default risk ratio c. its ratio of annual interest payments to net profits, current ratio, working capital ratio, debt-equity ratio, and return of capital employed ratio d. its loans outstanding as a % of total revenues, default risk ratio, inventory turnover ratio, and long-term debt to equity ratio e. its total debt-total stockholders’ equity ratio, current ratio, working capital ratio, and ratio of prior-year cash flow from operations to prior-year interest payments
B. the percentage by which prior-year cash flow from operations covers a company’s prior-year payments, the company’s debt-asset ratio, its dividend payout ratio, and its default risk ratio
 
which of the following is *not* one of the factors that affect the S/Q rating of a company’s footwear? a. whether production improvement option C has been installed b. the percentage use of superior materials c. a company’s cumulative spending for TQM/six stigma quality control programs d. the percentage use of new and refurbished footwear-making equipment e. expenditures on new styling features per model
D. the percentage use of new and refurbished footwear-making equipment
 
Which of the following statements about the average wholesale price a company charges footwear retailers in a given geographic region is incorrect?
So long as a company has a big price based competitive advantage in a region’s wholesale segment, it has the ability to achieve an attractively large sales volume and market share even if it suffers from competitive disadvantages on other competitively relevant factors
 
The three competitive factors that impact only internet sales and market share in a region include
expenditures for search engine advertising
 
Which of the following most accurately describes your company’s production operations?
Standard and superior materials are sourced from outside suppliers at base prices that are currently $6 per pair for 100% use of standard materials and $12 per pair for 100% use of superior materials; however these base prices can vary up or down according to the strength of global demand for footwear materials and the global percentage usage of standard versus superior materials
 
Which of the following statements about the impact of a company’s competitive efforts in a region on its regional market share and number of branded pairs sold is false?
The biggest possible competitive advantage a company can achieve in a given region’s internet segment is to offer free shipping and thereby capture the biggest number of pairs sold and the biggest market share of any company in that region’s internet segment
 
Buyer demand for branded athletic footwear is projected to grow
9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 period
 
Which of the following currencies are involved in causing favorable or unfavorable exchange rate adjustments to your company’s costs and revenues?
Singapore dollars, euros, and Brazilian reals
 
Which of the following is the most important competitive factor in determining a company’s ability to secure contracts to supply large multi-outlet retailers private-label footwear to chain retailers in a particular geographic region?
the price at which the company offers to supply the retailers with private-label pairs
 
The factors that affect the reject rates at the company’s footwear production facilities include
the size of the incentive payment per non-defective pair produced, expenditures for best practices training per worker, spending for TQM/Six Sigma quality control efforts, and the percentage use of new equipment versus refurbished equipment
 
Which of the following is/are not among the factors that affect worker productivity?
the S/Q ratings of the footwear being produced and whether the percentage use of superior materials exceeds 60%
 
Which of the following statements about the importance of each competitive factor in determining company sales volumes and market shares in a particular geographic region is false?
tiny cross-company differences in competitive effort on a highly influential competitive factor (like S/Q ratings, the number of models/styles offered, and selling prices) nearly always have a bigger impact on company sales/market share outcomes in a region than do large differences on less influential competitive factors
 
The company currently has production facilities to make athletic footwear in
Asia-Pacific and North America
 
The factors that affect a company’s S/Q rating by the International Footwear Federation include
a company’s current and cumulative spending for TQM/Six Sigma quality control programs; whether production improvement option C has been installed (this option entails investing in special production equipment that boosts the S/Q rating of all pairs produced by 1.0 star) and expenditures for new styling features per model
 
The interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of
its credit rating and the length of time over repayment is scheduled to occur (1-year, 5-year, or 10-years)
 
Which of the following are components of the total compensation package for production workers at your company’s production facilities?
Base wages, incentive payments per non-defective pair produced, fringe benefits and any overtime pay
 
Which of the following is not among the 13 competitive factors that determine a particular company’s unit sales and market share of branded footwear in a particular geographic region?
The length of the warranty against materials defects that the company offers buyers (30 days, 60 days, 1 year)
 
Which of the following are factors in determining a company’s credit rating?
The percentage by which prior year cash flow from operations covers a company’s prior year interest payments, the company’s debt-asset ration, its dividend payout ratio, and its default risk ratio
 
The company’s shipments of newly-produced, branded and private-label footwear from its plants to its regional distribution centers are subject to
any applicable import tariff and exchange rate adjustments
 
Which of the following statements about striving to reduce labor costs per pair produced at each of the company’s plants is true?
in managing production worker compensation and expenditures for best practice training, the overriding objective of company managers should be to achieve the lowest feasible labor costs per pair produced at each production facility
 
In the private-label benchmarks section, the industry-low, industry-average, and industry-high benchmarks for the margins over direct costs should be interpreted as representing
how much sellers of private-label footwear received over and above the costs per pair sold; these margins, if positive, serve to improve a seller’s operating profits in the designated region (negative margins over direct cost act to reduce a seller’s operating profits in the region)
 
The production cost benchmarks reported on p. 6 of each issue of the Footwear Industry Report
always merit close examination because they enable company managers to check whether certain aspects of the production operations at their company’s production facilities are competitive with the production outcomes at other production facilities in the same 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 production facilities in Latin America and then expand its capacity as may be needed so that the production facility has the capability to supply all of the branded and private-label pairs the company intends to try to sell in Latin America
 
Based on the industry-low, industry average, and industry-high values, which one of the following would correctly indicate that one or more elements of your company’s costs are too high compared to those of rival companies?
Your company’s operating profit margin in the Wholesale segment of the North America region is only 5% about the industry low
 
If a company wants to enhance the profitability of differentiating its branded product offering from rivals by offering buyers 500 models/styles to choose from in all four regions, then it should consider reducing the $15 million annual costs for production run setup costs associated with producing 500 models/styles at each of its production facilities by
instituting production improvement option B at each of its production facilities
 
Which one of the following is the most effective means for a company to grow its wholesale sales of branded footwear in the Latin America region?
market branded footwear to Latin American retailers that has an S/Q rating 1.5 stars higher than the industry average S/Q rating in Latin America
 
Pursuing a strategy of social responsibility and corporate citizenship
has a positive impact on a company’s image rating, provided company spending on socially responsible activities is a meaningful amount and is sustained over a multi-year period
 
The most important/essential results from the latest decision round that company managers need to review/study in order to guide their strategic moves and decisions to improve their company’s overall performance and competitiveness vis-à-vis rivals in the upcoming decision round are
the Comparative Competitive Efforts section of the Competitive Intelligence Report for each of the four geographic regions
 
Which of the following are effective ways for managers to try to boost a company’s stock price?
Repurchase shares of common stock and aggressively pursue efforts to achieve annual increases in earnings per share that meet or neat investor expectations
 
If a company spends $14.4 million to install refurbished footwear-making equipment with capacity to produce 1 million pairs of athletic footwear at its North American production facility, then its annual depreciation costs at that facility will rise by
10% or $1,440,000
 
Which one of the following actions is most likely to result in higher production costs per branded pair at one of your company’s production facilities?
increasing the S/Q rating of branded pairs from 4.5 stars to 5.5 stars
 
Under what circumstances should a company’s management team give serious consideration to making an offer to supply private-label footwear to chain retailers in a particular geographic region?
When managers determine that all of the company’s available production capacity will not be needed to produce branded footwear and that the total amount of idle production capacity at its production facilities will be sufficient to meet or exceed the 100,000 pair minimum delivery requirement of chain retailers in each region
 
Which one of the following helps increase the S/Q rating of branded pairs produced at a particular production location?
Increasing expenditures for enhanced styling/features
 
A company uses outside suppliers to provide services that it could perform itself. (e.g. a firm might contract a professional cleaning company to come in on a regular basis to clean offices.)
outsourcing
 
When a shoe manufacturer opens a company-owned retail store, it is an example of
forward vertical integration
 
Marketing efforts to increase sales of existing products in existing markets is which concentration (intensive) grand strategy?
market penetration
 
Exporting products made in the US to new foreign markets is a basic example of which concentration (intensive) strategy?
market development
 
Which generic strategy is usually associated with the discount retailers such as Wal-Mart?
cost leadership strategy
 
A generic strategy aimed at emphasizing the uniqueness or superiority of products and services is_?
differentiation strategy
 
A sign in a store window reads, “going out of business—everything must go” is probably an example of which grand strategy?
liquidation
 
If Microsoft bought a chain of food retailers such as Piggly-Wiggly, it would be an example of a __.
conglomerate diversification
 
Sony’s launches of PlayStation 2, then PS3, then PS4, is an example of which concentration (intensive) strategy?
product development
 
If Dell Computer were to acquire Intel, it would best be described as an example of ______.
backward vertical integration
 
“Given the business (es) we are in, how should we compete?” is the question asked at the ____ level.
competitive (business) strategy
 
The sale of one of a firm’s SBUs to a competitor, and that SBU continues to operate is a _______.
divestiture
 
The name given to Michael Porter’s group of strategies used at the competitive (business) strategy level.
generic strategies
 
Dell Computer’s initial decision to start selling LCD wide-screen TVs is an example of _______.
related diversification
 
If a company builds a new manufacturing plant dedicated to producing shoes for a region, and later decides to get out of that region but can’t find a buyer for the plant, the manufacturing plant might be viewed as a (an) _____.
exit barrier
 
Difficulties encountered by trying to “reposition” a brand in the market (e.g. moving “upscale”) are examples of a (an) _______?.
mobility barrier
 
The formation of HP/Compaq and Daimler/Chrysler are examples of which grand strategy?
horizontal integration
 
Creating a new, untapped market rather than competing with rivals in an existing market is a (an) _____.
blue ocean strategy
 
The “triple bottom line” is an approach to assessing performance that emphasizes concern for:
people, planet, and profit
 
A health drink company is known for launching drinks with flavors which are different from what are offered in the market. It regularly indulges in experimentation to come up with new and exotic flavored drinks. It is also able to charge prices that are higher than what other health drink companies charge. What advantage would the company enjoy because of the strategy it follows?
It has an ability to obtain premium prices from customers.
 
The internet boom of the 1990s is an example of:
Shumpterian Shock
 
A “3 firm concentration ratio of 80%” would mean:
The industry is highly concentrated
 
An approach to assessing performance that targets manager’s attention on four areas: (1) financial, (2) customer, (3) internal business process, and (4) learning and growth is a tool called _______?
balanced scorecard
 
Perceptual (or position) mapping is used to:
identify strategic groups of competitors identify “gaps” in the market identify industry competitors’ position in the market
 
Strategy formulation, strategy implementation, and ____ are the steps (or phases) in the strategic management process.
strategy evaluation
 
The main question asked at corporate-level strategy is:
what business(es) are we in/should we be in?
 
Sony’s and Apple’s ability to innovate to “reinvent” existing ways of doing things is known as ___.
creative destruction
 
Which of the following models is used for analyzing the general external environment?
PEST (or PESTEL)
 
Which of the following currencies are involved in affecting the operations of your company’s athletic footwear business?
U.S. dollars, Singapore dollars, euros, and Brazilian reals
 
Which of the following is the most important factor in determining a company’s unit sales and market share of private-label footwear in a particular geographic region?
The company’s bid price
 
If you offer free shipping in the internet market, the shipping and handling fees that you will have to “absorb” is how much per pair of shoes?
a. 20% of the shoe’s retail cost b. $2.75 c. $12.50 per pair d. $20 per pair e. none of the above e. none of the above
 
Which of the following is true concerning mail-in rebates?
the higher the rebate offer, the higher the redemption rate
 
Which is true concerning the S/Q rating?
a company may have as many as 8 different S/Q ratings in a year
 
Which of the following is NOT included as in Porter’s Five Forces Framework?
Threat of government action
 
Porter’s “Five Forces” framework includes: Bargaining Power of Customers, Bargaining Power of Suppliers, Threat from New Entrants, Threat from substitutes, and Rivalry of Existing Competitors. As discussed in class, which force might be included as a sixth force?
Threat from complementors
 
What are Porter’s dimensions of competitive scope discussed in class? (Hint: I added one that is not included in Porter’s framework: business model scope). maverick, clone, parallel, off-radar
Segment, Vertical, Industry, Geographic
 
Although Michael Porter is known as an IO economist and his emphasis on industry analysis, his ______ framework allows for competitive advantage to be gained through uniqueness, with firms following a ______ strategy.
generic strategies; differentiation
 
According to the textbook, what are the Five Generic Competitive Strategy Options?
overall low-cost provider strategy, broad differentiation strategy, focused low-cost strategy, focused differentiation strategy, best-cost provider strategy
 
Rumelt’s criteria for strategy evaluation are: feasibility, consistency, consonance, and __________
Advantage
 
What labels go with the designated areas in Kotler’s model?
Core Product, Actual Product, Augmented Product
 
What do the letters V-R-I-O stand for in the VRIO framework (concerning a firm’s resources)?
Value : Does the resource strength/capability have competitive value? Rare: Do many or most rivals have much the same resource or capability? Imitability: Is the resource or capability hard or costly to imitate? Organization: Is firm organized to capture value from resource/capability?
 
What are the names given to the quadrants in the positioning map shown below?
Maverick competitors, Clone competitors, Off-radar competitors, Parallel competitors
 
A company produces fat-free and low-fat snacks under the brand name Healthy Bites. The firm decides to set up counters in the retail stores which stock its products with representatives who will promote the products and explain its health benefits to consumers. The firm aims to increase the sale of Healthy Bites products in these stores. In this example, which of the following best describes the company’s strategy?
market penetration
 
GE is know as a diversified conglomerate, operating in a number of different industries, including Power, Aviation, Healthcare, Transportation, etc. In 2016 GE sold its Appliances division to Haier. From GE’s perspective, this is an example of a _______ strategy, and it is also an example of a ______ strategy decision.
Divestment; Corporate-level
 
Comfort Shoes Inc. is a firm that manufactures orthopedic shoes and sells them at retail stores in New York. Based on the popularity of the shoes, the firm decides to expand operations to other regions. In this example, Comfort Shoes Inc. uses which of the following strategies?
market development
 
Which of the following is the best example of a horizontal integration strategy?
The merger of Glaxo with Smith-Kline Beechum
 
What are the four categories of grand strategies identified in class?
Integration (Forward Vertical, Backward Vertical, Horizontal) Intensive (Market development, product development, market penetration) Diversification (concentric and conglomerate) Defensive (retrenchment, divestment, liquidation)
 
The letters in the S-C-P paradigm stand for:
Structure, conduct, performance
 
A skill or activity in which a firm excels compared to rival firms is known as a (an):
Distinctive competence
 
A company manufacturing hockey sticks makes an annual assessment of its resources in terms of raw materials, technical expertise, and technological knowhow. It assesses the type of competition that it faces in the sports goods market and also looks out for opportunities that would allow it to expand its business. This is an example of a(n):
SWOT analysis
 
What are the three levels of strategy, and what questions are asked at the top two levels?
Corporate level: What business(es) are we in and which should we be in? Competitive level: (a.k.a. business level or industry level) -Given the business (es) we are in, how should we compete? Functional level – what must we do at the functional level in order to implement chosen strategies? (e.g. resource acquisition, organizational structure, marketing, etc.)
 
If you offer free shipping in the internet market, the shipping and handling fees that you will have to “absorb” is how much per pair of shoes?
$12.50 per pair
 
Which of the following is true concerning mail-in rebates?
There are 13 rebate options ranging from $3/pair to $15/pair b. Customer response to rebates is a function of the size of the rebate and the amount that your offer is above/below industry average c. the customer acceptance rate of rebate offers range from 15% to 90% d. All of the above are true concerning mail-in rebates d.
 
Which of the following is not a distribution channel available in the game?
retail sales at the company’s stores in outlet malls
 
Which of the following is a result of Best Practices worker training in the simulation?
lowers defect rates improves S/Q rating reduces materials waste increases worker productivity all of the above may result from Best Practices worker training
 
In the business strategy game your company is assessed on how well it meets investor expectations in five categories on a “balanced scorecard”. What are these five categories?
Earnings per share Return on Equity Stock price Credit Rating Image Rating
 
Gross Profit (also called Gross Income)
Revenue – Cost of Goods Sold
 
Operating Profit (also called Operating Income; EBIT)
Revenue – Operating Expenses
 
Income Tax Expense
(EBIT – Interest Expense) x Tax Rate
 
Net Profit (also called Net Income; Earnings)
Earnings Before Tax (EBT) – income tax expense
 
Addition to retained earnings
Net Income – Dividends Paid
 
Earnings Per Share
Net Profit / Shares Outstanding
 
Interest Coverage Ratio (Times-Interest-Earned)
Operating Profit / Interest Expense
 
Return on Equity (ROE)
Net Income/Total Equity
 
Dividends paid per share
Earnings Per Share x Dividend payout ratio
 
Market Capitalization
Shares outstanding x price per share
 
Quick ‘n’ Dirty firm value
Net Income / WACC

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