BSG Comprehensive Exam (Fall
2023)Solved Correctly!!
The benefits of pursuing a strategy of social responsibility and corporate citizenship
include - Answer · The positive impact that such a strategy has on the company's
image rating, provided the company spends a meaningful amount on socially
responsible activities and such spending is sustained over a multi-year period
If a company's managers want to succeed in creating a differentiation-based
competitive advantage (And a potential cost advantage in achieving the
differentiation) that is difficult for rivals to quickly or easily copy (because every
strategic move a company makes to outcompete rivals and gain a competitive
advantage is not apparent from information contained in the FIR and the competitive
intelligence Report), then the managers have to - Answer · Do a better job then rivals
in identifying and implementing ways to become very cost-efficient in producing and
marketing 350-500 models/styles of branded footwear that also have the highest S/Q
rating in the industry
Valid reasons to consider building a new plant in Latin America include - Answer ·
Low tariff costs on footwear sales in Latin America (because no import tariffs are
paid on footwear produced at the Latin American plant and shipped to the
distribution warehouses in Latin America)
A company stands a better chance of achieving a sustainable cost-based
competitive advantage over rivals if its managers - Answer · Pursue a number of
cost-reducing initiatives that can be concealed from rivals (because such initiatives
are not part of the information contained in the FIR and the competitive intelligence
report)
Which of the following actions does not help a company's social responsibility
strategy result in a higher image rating? - Answer · Reducing the prices, the
company charges its customers for branded footwear
What does help a company's social responsibility strategy and results in a higher
image rating - Answer · Using environmentally friendly or 'Green' materials in
producing footwear at the company's plants
· Using recycled packaging materials to box each pair of athletic footwear at the
company's distribution centers
· Making donations to charities and charitable causes
· Investing to improve energy efficiency and the use of renewable sources at
company facilities.
It makes good economic sense for company managers to consider investing $3.5
million per million pairs of capacity for a plant facilities upgrade that will boost labor
productivity by 25%. - Answer · At a plant that currently has labor productivity of
3,200 pairs per worker and total employee compensation of $20,000 annually
because the upgrade will cause labor costs per pair produced to decline from $6.25
to $5.00
