BSG Quiz 1

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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.

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