BSG Comprehensive Exam Latest Updated with correct answer verified 2023, Exams of Business Management and Analysis

Download BSG Comprehensive Exam Latest Updated with correct answer verified 2023 and more Exams Business Management and Analysis in PDF only on Docsity! 1 [Date] BSG Comprehensive Exam Latest Updated with correct answer verified 2023 1. The benefits of pursuing a strategy of social responsibility and corporate citizenship include - ✔✔️·️ 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 2. 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 - ✔✔️·️ Do a better job then rivals in identifying and implementing ways to become 2 [Date] 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 3. Valid reasons to consider building a new plant in Latin America include - ✔✔️·️ 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) 4. A company stands a better chance of achieving a sustainable cost-based competitive advantage over rivals if its managers - ✔✔️·️ 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) 5 [Date] 8. Which of the following combinations of actions will likely provide the biggest competitive benefits in helping a company achieve a differentiation-based competitive advantage over some/many of its rivals? - ✔✔️·️ Offering 400 or more models/styles to buyers in all four geographic regions, maintaining a celebrity appeal rating of 200 or higher in all four geographic regions, selling branded footwear with a 7-star or higher S/Q rating in all four geographic regions, and offering a rebate of $9 in all four geographic regions 9. It is both reasonable and wise for a company to consider shifting away from pursuit of a strategy to strongly differentiate its branded footwear from the offerings of rival companies and sell its footwear at a premium price when - ✔✔️·️ A big percentage of industry rivals are trying to outcompete each other with copycat differentiation strategies that include high S/W ratings, many models/styles, high 6 [Date] celebrity appeal ratings, and above-average advertising expenditures 10. Which of the following is NOT of much significance to company manager in deciding whether profitable opportunity exist to build (or purchase) additional plant capacity in the upcoming decision round? - ✔✔️·️ Information in the most recent FIR indicates that more than half of the companies in the industry have expanded their plant capacity since year 10 11. What IS significant to company managers in deciding whether profitable opportunity exist to build (or purchase) additional plant capacity in the upcoming decision round? - ✔✔️·️ The growth in branded demand and private-label demand over the next 3 years (as reported in each year FIR) 7 [Date] · How branded pairs available for sale in each geographic region in the past year compared with projected branded demand and private label demand in each geographic region over the next three years as shown in each year FIR · The size of beginning inventories of branded footwear in each geographic region reported in the most recent FIR · Whether the most recent years FIR shows that the industry already has more than enough production capacity worldwide to supply the combined demand for branded footwear and private-label footwear worldwide for each of the next three years 12. If a company's actual results for revenues, net profits, EPS, and ROE turn out to be worse than projected then it is 10 [Date] 17. Which one of the following is NOT a way to reduce costs and strive to achieve a competitive advantage based on lower overall costs per pair sold than rival companies? - ✔✔️A️voiding the use of overtime at the company's plants 18. Which one of the following is IS a way to reduce costs and strive to achieve a competitive advantage based on lower overall costs per pair sold than rival companies? - ✔✔️·️ Searching for the lowest cost way to achieve the target S/Q rating · Spending (but also taking care not to overspend) on best practices training for workers in all of the companies' plants · Striving to operate at full production capacity so as to help spread fixed costs over more pairs of footwear. 11 [Date] · Investing in one or more plant upgrades that have the effect of lowering manufacturing costs per pair produced 19. It is reasonable for a company's management team to abandon efforts to win contract to supply private label footwear to chain retailers in a given year when. - ✔✔️·️ It believes the company has good prospect to profitably sell all the branded pairs it can produce at its existing plants (including full use of overtime) 20. Which of the following is a valid reason or strong signal that a company should consider changing from a low-cost/low price strategy to a different strategy? - ✔✔️·️ The low-price segment for branded footwear becomes so overcrowded with competitors that fierce competition makes 12 [Date] it very difficult to earn attractive profits in the low-price end of the branded footwear marketplace 21. Which of the following is most likely to be an effective or attractive way to try to reduce manufacturing costs per pair produced at a particular plant? - ✔✔️I️nvesting in one or more plant upgrades 22. Which of the following options is usually an appealing way to try to increase a company's ROE? - ✔✔️·️ Pursuing actions to boost the company's total profits and maintaining a high (above 75% payout ratio 23. Which of the following results from the latest decision round are least important in providing guidance to company managers in making their strategic moves and decision to improve their company's competiveness and ranking among the top-performing companies in the upcoming decision 15 [Date] 28. A company's strategy to be a low-cost provider of branded footwear can fail to produce good company performance when - ✔✔️·️ Managers do not operate the company's plants cost efficiently and achieve manufacturing costs per branded pair sold that is no equal to the industry low in each geographic region are at least close to the industry low in each geographic region 29. In which one of the following instances do the industry low, industry average, and industry high values for the cost benchmarking data in each issue of the FIR signal that one or more elements of a company's costs are likely to be too high relative to those of rival companies? - ✔✔️·️ When the company's operating profit per pair sold in the internet and wholesale segments are the lowest in the industry of all four geographic regions 16 [Date] 30. Which of the following action sis unlikely to help boost a company's market share in all four geographic regions? - ✔✔️·️ Pursuing efforts to boost labor productivity at each of the company's plants. 31. Which of the following actions is LEAST likely to increase labor productivity by an amount that is large enough to result in lower labor costs per pair produced at a particular plant? - ✔✔️·️ Increasing worker base pay by the allowed maximum of 15% each and every year until the company's base pay compensation per employee exceeds the total compensation per employee ($/year) of all other companies in the industry 32. The plant upgrade option that reduces production run setup costs by 50% each year and costs $8 million per million pairs of plant capacity (which causes depreciation costs at the plant to rise by 5% of the capital cost of the 17 [Date] upgrade) merits immediate consideration by company managers when - ✔✔️·️ The company has a new 1 million- pair plant in Europe-Arica ready to go into production in Year 14 and the company's strategy calls for this plant to produced 500 models/styles (which entails annual production run setup costs of $14 million) every year through year 20. 33. The industry low, industry average, and industry high benchmarks for the costs per branded pair sold in each geographic region (including manufacturing costs, shipping, import tariffs, and exchange rate adjustments), warehouse expenses pe branded pair sold, marketing expenses per branded pair sold, and administration expenses per branded pair sold that appear in each issue of the footwear industry report - ✔✔️·️ Are worth careful scrutiny by the managers of all companies because when the benchmarking data signals that a company's costs for one or more of the benchmarks 20 [Date] 38. 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 a plant in Latin America and then expand its capacity as may be needed so that the plant has the capability to supply all (or at least most) of the pairs the company intends to try to sell in Latin America 39. An appealing strategy that a company can use to reduce exposure to adverse exchange rate adjustments to the costs of pairs shipped to a distribution warehouse from a plant in a different geographic region is to - ✔✔️·️ Build sufficient plant capacity in each of the four geographic regions to greatly reduce (maybe even eliminate) the need to ship pairs to a distribution warehouse from a plant in a different geographic region - such a strategy has the added benefit of cutting tariff payments on imported footwear 21 [Date] 40. If a company is pursuing a strategy to produce branded footwear at a low-cost relative to any other rival firm, then it should regularly review the plant and production cost benchmarking data in each year's footwear industry report to - ✔✔️·️ Gauge whether its efforts to reduce total manufacturing cost per branded pair produced have been more/less successful than other companies pursuing much the same outcome and to learn what areas of plant operations may warrant further actions to reduce costs 41. Which of the following statements about striving to reduce labor costs per pair produced at each of the company's plants is true? - ✔✔️·️ To achieve labor costs per pair produced at a particular plant that are "low" compared to their plants in the same geographic region, company manager must - each decision round- seek out a combination of base pay increases, piecework incentives per 22 [Date] non-defective pair produced, and expenditure for best practices training at the plan that is projected to drive down labor costs even further 42. Which one of the following will NOT help a company boosts its credit rating from a A- to A? - ✔✔️·️ A decline in the company's current ration from 2.0 to 1.5 43. What WILL help a company boost its credit rating from A- to A? - ✔✔️·️ An increase in the company's interest coverage ratio from 2.0 to 12.5 · A decline in the company's debt to asset ration from 0.30 to 0.15 · An increase in the company's default risk ration from 5.0 to 10.0 25 [Date] 50. Which of the following is NOT a limit to vertical integration? - ✔✔️i️mitation of core technology by potential competitors 51. What is a limit to vertical integration? - ✔✔️b️ureaucratic costs 52. the loss of flexibility through investment in specific technologies 53. capacity balance and coordination problems from changes in demand 54. Horizontal acquisitions in the video rental industry are typically intended to - ✔✔️r️educe some of the overcapacity in the industry. 26 [Date] 55. Foreign firms seeking to acquire U.S. firms are interested in all of the following EXCEPT - ✔✔️a️cquiring relationships with dealers through horizontal acquisitions. 56. When a foreign firm seeks to acquire U.S. firms they are interested in - ✔✔️g️aining access to the U.S. company brand names. 57. gaining access to critical resources held by U.S. companies. 58. diversifying into unrelated industries in order to broaden their market scope. 59. Researchers have found that shareholders of acquired firms often - ✔✔️e️arn above-average returns. 27 [Date] 60. The fastest and easiest way for a firm to diversify its portfolio of businesses is through acquisition because - ✔✔️i️t is difficult for companies to develop products that differ from their current product line 61. Related acquisitions to build market power - ✔✔️a️re likely to undergo regulatory review. 62. International strategy refers to a(an) - ✔✔️s️trategy through which the firm sells products in markets outside the firm's domestic market. 63. U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness due to - ✔✔️c️ustomization required by cultural differences. 30 [Date] 75. acquisition. 76. Firms participate in strategic alliances for all the following reasons EXCEPT to - ✔✔️r️etain tight control over intangible core competencies 77. Firms participate in strategic alliances for? - ✔✔️e️nter markets more quickly. 78. acquire technology. 79. create values they could not develop acting independently. 80. When using business-level and corporate-level cooperative strategies, a firm's primary intent is to develop strategic alliances that - ✔✔️c️reate a competitive advantage. 31 [Date] 81. In a(an) ____ the firms involved own equal shares of a newly-created venture. - ✔✔️j️oint venture 82. A state-wide alliance of independent hospitals has formed in order to do group purchasing of medical supplies. Group purchasing allows the hospital alliance to negotiate lower prices with suppliers because of the large quantity of materials ordered. This is an example of the advantage of ____ resulting from an alliance. - ✔✔️e️conomies of scale. 83. Firms entering into synergistic strategic alliances expect to attain - ✔✔️e️conomies of scope. 84. The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over 32 [Date] dinner, the top management team agrees to go to the board of directors with a proposal for - ✔✔️i️ncreased diversification of Sierra Infusion. 85. The separation between firm ownership and management creates a(n) ____ relationship. - ✔✔️a️gency 86. A primary objective of corporate governance is to - ✔✔️e️nsure that the interests of top-level managers are aligned with the interests of shareholders. 87. Which of the following is NOT an internal governance mechanism? - ✔✔️t️he market for corporate control 88. What is an internal governance mechanism - ✔✔️t️he board of directors 35 [Date] 99. Which of the following is NOT an internal governance mechanism? - ✔✔️t️he market for corporate control 100. What is internal governance mechanism - ✔✔️t️he board of directors 101. ownership concentration 102. executive compensation 103. The separation between firm ownership and management creates a(n) ____ relationship. - ✔✔️a️gency 104. Usually, large block shareholders are considered to be those shareholders with at least ____ percent of the firm's stock. - ✔✔️5️ 36 [Date] 105. A major conflict of interest between top executives and owners, is that top executives wish to diversify the firm in order to ____, while owners wish to diversify the firm to ____. - ✔✔️r️educe their employment risk, increase the company's value 106. Managerial employment risk is the - ✔✔️m️anagers' risk of job loss, loss of compensation, and/or loss of reputation 107. The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the board of directors with a proposal for - ✔✔️i️ncreased diversification of Sierra Infusion. 37 [Date] 108. The market for corporate control serves as a means of governance when - ✔✔️i️nternal controls have failed. 109. Corporate governance is all of the following EXCEPT - ✔✔️r️esolve conflicts among corporate employees. 110. Corporate governance is - ✔✔️m️echanisms used to determine and control the strategic direction and performance of organizations. 111. a means to establish and maintain harmony between owners and top managers whose interests may conflict. 112. ensuring that top managers' interests are aligned with the interests of stockholders. 40 [Date] 122. T or F? Standard-cycle markets are often large and gain economies of scale through cooperative alliances. - ✔✔️T️ 123. T or F? In a horizontal complementary strategic alliance, one firm enters a nonequity strategic alliance with another to help in the design, manufacture, or distribution of its product - ✔✔️F️ 124. Which of the following is NOT a motive for firms to become multinational? - ✔✔️t️o reduce domestic country political pressures to expand 125. What is a motive for firms to become multinational - ✔✔️t️o take advantage of potential opportunities to expand the market for the firm's products 41 [Date] 126. to secure access to low-cost factors of production 127. to secure key input resources 128. The increased pressures for global integration of operations have been driven mostly by: - ✔✔️u️niversal product demand. 129. . Moving into international markets is a particularly attractive strategy to firms whose domestic markets: - ✔✔️a️re limited in opportunities for growth. 130. Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT: - ✔✔️q️uality of demand. 42 [Date] 131. Factors of production in Porters model of international competitive advantage include - ✔✔️l️abor. 132. capital. 133. infrastructure. 134. In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of the __________ in Porter's model. - ✔✔️r️elated and supporting industries 135. All of the following are international corporate-level strategies EXCEPT the ___________ strategy. - ✔✔️d️ifferentiation