BSG Quiz1 - version.summer.2019

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

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.

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

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 currencies are involved in affecting the operations of your company's athletic footwear business?

Brazilian Real, Euros , US Dollar, Singapore dollars

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

Which of the following are factors in determining a company's credit rating?

Its interest coverage ratio, debt-asset ratio, and default risk ratio

The company currently has production facilities to make athletic footwear in

North America and Asia Pacific

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.

In Year 11, footwear companies can expect to sell

See page 6 in players guide

Which of the following best describes the materials the company uses to make its footwear?

Standard and Superior materials

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

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

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 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

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 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 are the 5 measures on which a company's performance is judged/scored?

Earnings Per Share, ROE, Stock Price, Credit Rating, image 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 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