QUiz 2**
If a management team wishes to boost the company's stock price then it should consider
pursuing actions to increase earnings per share each year raising the company's divident each year(ideally by at least $0.05 per share), and repurchasing shares of common stock
Which one of the following results from the latest decision round are least important in providing guidance to company managers in making their strategic moves and decisions to improve their company's competitiveness and rank among the top-performing companies in the upcoming decision round?
The dividend data, the credit rating data, the income statement data, and the balance sheet data for each company that are part of the Financial Performance Summary on p.5 of the FIR"
Given the following Year 12 balance sheet data for a footwear company: Based on the above figures and the definition of the debt-assets ration presented in the Help section for p. 5 of the Footwear Industry Report, the company's debt-assets ratio (rounded to 2 decimal places) is
Total Liabilities/ Total Assets
Given the following year 12 balance sheet data for a footwear company: Based on the above figures and the formula for calculating the debt-assets ratio, the company's
0.436
If a company spends $80 million to build facility space sufficient to hold 5 million pairs of footwear making equipment at a site in Latin America, then the company's annual depreciation costs for this facility space will e
$8,000,000
If a company spends $80 million to build a facility space sufficient to hold 5 million pairs of footwear-making equipment at a site in Latin America, then the company's annual depreciation costs for this facility space will be
$80,000,000 * 2.5 = $2,000,000
Given the following Year 12 balance sheet data for a footwear company: Based on the above figures and the definition of the debt asset ratio presented in the help section for P.5 of the Footwear Industry Report, the company's debt'assets ratio (rounded to 2 decimal places)
0.48 The debt-to-assets ratio is defined as total liabilities divided by total assets—both numbers are shown on the company's balance sheet. A debt-to-assets ratio of .20 to .35 is considered "good". 200,000/420,000=0.476
Assume a company's Income Statement for Year12 is as follows: Based on the above income statement and assuming the company has 20 million shares of common stock outstanding, the company's operating profit margin and EPS were
10.38% and $1.58
Assume a company has 10 million shares of stock outstanding and that its income statement for Year 12 is as follows; based on the above income statement data, the company's operating profit margin and EPS are
15.6% and $2.80
According to information that you can confirm from the help screen for the plant operations report(see the plant investment section) if a company adds new plant capacity at a cost $45 million,then its annual depreciation costs will rise by
2250000
Assume a company's income statement for year 12 is as follows: Based on the above income statement data(assume interest income is zero), the company's interest coverage ratio is
5.00
Assume a company's Income Statement for Year12 is as follows: Based on the above income statement data and the formula for calculating the interest coverage ratio described in the Help section for p.5 of the Footwear Industry report, the company's interest coverage ratio is
5.00 operating profit/interest income(expense) 60,000/12,000=5.00
Which of the following statements about striving to reduce labor costs per pair produced at each of the company's production facilities is true
??? Comanies producing branded footwear with a 7star or higher S/Q rating are very unlikely to achieve labor costs per pair produced that are below the industry average ina given region whereas companies producing branded footwear with an S/Q rating no higher than 4 stars or less in that same geographic region are virtually assured of having labor costs per pair that are below the region's industry average
Based on the industry-low, industry-average, and industry-high values for the benchmarked data on p.7 of the FIR, which one of the following is the strongest and most valid signal that one or more elements of a company's costs are too high relative to those of rival companies?
???? The company's distribution and warehouse costs per pair available in the Europe Africa region were $1.00 above the industry average i looked through the FIR and this was the one that made most sense for my company
Which one of the following is NOT a way to effectively differentiate a company's branded footwear offering from the brands of rivals?
Achieve a lower reject rate on pairs produced than most all other rivals
Which of the following statements about the striving to reduce labor costs per pair produced at each of the company's plants is true?
All companies regardless of the strategy being employed should pursue actions to manage employee compensation and labor productivity in a manner that results in labor costs per pair produced that are equal to or very close to the industry-low in each region where the company has plants
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 (or in line) with the production outcomes at other production facilities in the same region (and other regions as well)
The industry-low, industry-average and industry-high cost Benmarks that appear on p. 6 of each issue of the Footwear Industry Report
Are worth careful scrutiny by the managers of all companies becasue when the benchmarking data signals that a company's costs for one or more of the benchmarks are out of line, managers are well advised to take corrective action in the next decision.
The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Europe Africa is to
Build a plant in EuropeAfrica and then expand it as may be needed so that the company has sufficient capacity to supply all......
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 it as may be needed so that the company has sufficient capacity to supply all(or at least most) of the pairs the company intends to try to sell in Latin America
The most/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-a-vis rivals in the upcoming decision round are
Comparative competitive efforts section of the competitive intelligence report for each of the four geographic regions
Pursuing a strategy of social responsibility and corporate citizenship
Helps increase a company's imagine rating, provided the company spends a meaningful amount on socially responsible activities and such spending is sustained over a multi year period
In supplying private-label footwear to chain retailers, the sized of a company's margins over direct costs(as reported on p 6 of each issue of the FIR should be viewed as
How many dollars the company had available from each pair of private label footwear sold that could be used to help pay the company's administrative expenses and interest costs and to contribute to the company's pre-tax profit
Which of the following helps boost the S/Q rating of the branded pairs produced at a particular plant?
Increasing expenditure for best practices training for workers. Correct option.
Which of the following helps improve the S/Q rating of branded pairs produces at a particular production location?
Increasing expenditures for TQM/Six Sigma programs
which one of the following actions is most likely to result in higher production costs per branded pair at one of your company's plants?
Increasing the number of branded models/styles produced from 150 to 500
Which one of the following is NOT a way to improve the S/Q rating of branded pairs produced at a particular production location?
Increasing the number of models/styles produced
Which one of the following actions is GUARANTEED to result in lower labor costs per pair produced at one fo your company's production facilities?
Increasing total employee compensation by 4% and realizing a 6% increase in production worker productivity
Which one of the following actions is guaranteed to result in lower labor costs per pair produced at one of your company's production facilities?
Increasing total employee compensation by 4% and realizing a 6% increase in production worker productivity
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, then it should consider reducing the $14 million annual costs for production run setup costs associated with producing 500 models....
Instituting plant upgrade option B at one or more of its plats(but most especially the company's smallest plants where the associated capital costs are quickly paid for by the savings on production run setup costs
A company's management team should compete seriously against rivals to win a privatelabel footwear contract in a particular geographic region when
It concludes that the company more than enough production capacity to produce the needed pairs of branded footwear, and based on its projections, determines that the Company's profitability and be increased by competing for and winning private-label contracts.
Assume a company's Income Statement for Year 12 is as follow Based on the above data which of the following statement is false?
Marketing cost are 10.9
Assume a company's Income Statement for Year 12 is as follows Based on the above income statement data and the formula for calculating the interest coverage ration described in the Help section for p. 5 of the Footwear Industry Report, the company's interest coverage ration is
Operating Profit (Loss)/ Interest Income (Expense)
Assume a company's Income Statement for Year 12 is as follows: Based on the above income statement data and assuming the company has 20 million shares of common stock outstanding, the company's operating profit margin and EPS were
Operating Profit (Loss)/ Net revenues Net Income/ Shares Outstanding
According to the cost allocation procedures discussed on the help screens for the private label sales report and the marketing and admin report should a company win contracts to supply chain retailers with private-label shoes at a particular plant, which one of the following is NOT included as part of a company's production costs for private-label footwear?
Production run set-up costs Expenditures for best practices training Plant supervision costs Plant depreciation
Which of the following is NOT a way to grow a company's sales volume in the internet segment in the Europe-Africa region?
Refrain from bidding to supply chain retailers in Europe-Africa with private-label footwear because such sales tarnish a company's image and brand reputation in the minds of a majority of athletic footwear buyers in this region
Which of the following are effective ways to try to boost a company's stock price?
Strive to increase earning per share each year by amounts that meet or beat investor expectations, raise the company's dividend each year (by at least $0.10 and preferably $0.25 or more for the increase to have much impact on the stock price), and repurchase shares of common stock
Which of the following results from the latest decision round is MOST HELPFUL in the guiding the efforts of company managers to improve their company's costs and profitability in the upcoming decision round?
The benchmarking data on pp. 6 and 7 of the FIR
Based on the industry-average and industry-high values for the benchmarked data in each issue of the FIR,which one of the following is the strongest and most valid signal that one or more elements of the company's costs are too high relative to those of rival companies?
The comapny's labor costs per pair produced are close to the highest in the industry in those regions where it has production plants
Under what circumstances should a company's management team give serious consideration to making price offers to supply private-label footwear to chain retailers in one or more regions?
When company managers conclude that the company has more than enough production capacity to produce the needed pairs of branded footwear and, based on their projections, determine that the comapny's profitability can be enhanced by making price offers to chain retailers and winning contracts to supply them with private-label footwear
Which one of the following is NOT a way to grow a company's sales volume in the internet segment in the Europe-Africa Region?
Win sufficient celebrity endorsement contacts to achieve celebrity appeal ratings that are higher than the industry average in Europe-Africa REgion
Given the folowing data from a Comparative Efforts page in the CIR, based onthe data for you company, which of the following statements is false
Your company had a competitive advantage in delivering orders for branded footwear to retailers
Based on the industry-low, industry average, and industry-high values that appear on p. 7 of each issue of the FIR, which 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 per branded pair sold in the wholesale segment in the North America region is below the average
Given the following data from a recent Comparative Efforts page in the CIR: Based on the above data for your company, which of the following statements is false?
Your company's percentage competitive advantage and disadvantages on the 8 competitive factors affecting internal sales and market share resulted in a net overall....
In managing production worker compensation and expenditures for best practice training, the overriding objective of company managers should be to
achieve labor costs per pair produced that are at worst below the industry average and the best are very close to (or even equal to) the industry-low in each region where the company has production facilities
The industry-low, industry-average, and industry-high cost benchmarking data on pp. 6-7 of each issue of the Footwear Industry Report
aid managers in assessing whether their company's costs and/or operating profits for the benchmarked items are adequately competitive. When such is not the case, the company's managers should promptly address how best to correct the high-cost or low-profit problem(s).
The plant and production cost benchmarking data reported in each issue of the footwear industry report
always merit close examination because they enable company managers to check whether certain aspects of production costs at company plants are competitive with the costs of rival companies and whether actions should be taken in the upcoming decisions round to reduce one or more production cost components that are excessively high
The industry-low, industry-average, and industry-high cost benchmarks on p. 6 of each issue of the Footwear Industry Report
are worth careful scrutiny by the managers of all companies because they help managers determine the degree to which their company's costs for the benchmarked cost categories are competitive with those rival companies
If a management team wishes to boost the company's stock price, then it should consider
boosting the company's dividend by $0.50 or more every year, increasing the company's retained earnings, and paying off all long-term debt as rapitdly as possible in order to achieve an A+ credit rating
The most attractive way to reduce or eliminate the impact of paying tariffs on pairs imported to a company's distribution warehouse in Europe-Africa is to
build a production facility in Europe-Africa and then expand it as may be needed so that the company has sufficient capacity to supply all (at least most) of the branded and private-label pairs the company intends to try to sell in that geographic region
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
Pursuing a strategy of social responsibility and corporate citizenship
helps increase a 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
In the private-label operating benchmarks section on p. 7 of each issue of the FIR, the industry-low, industry-average, and industry-high benchmarks for the margins over direct costs (as explained in the Help section for this same page) should be interpreted as representing
how much per private label pair sold in each region was available to (1) help cover any of a seller's branded expenses in the region not covered by branded revenues and (2) increase the seller's operating profits in the region
In the private-label operating benchmarks section on p. 7 of each issue of the FIR, the industry-low, industry-average, and the 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 profit in the designated region
A company opting to boost its sales of branded footwear by offering buyers in one or more regions 500 models/styles to choose from should definitely consider
instituting production improvement option B at all production locations where 500 models are going to be produced.
If a company wants to enhance the profitability of differentiation 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 set up costs associated with producing 500 models/styles at each of its production facilities bu
instituting production improvement option B at each of its production facilities
IF a company is pursuing a strategy to produce branded footwear at a low total production cost relative to rival companies, then it should regularly review
the production cost benchmarking data on p. 6 of each issue of the Footwear Industry Report to see if its efforts to achieve low total production costs per branded pair have been more/less successful than other companies pursuing much the same outcome
Under what circumstances should a company's management team give serious consideration to bidding aggressively to win contracts to supply private-label footwear to chain retailers in a particular geographic region?
when the company has excess production capacity in one or more geographic regions that would otherwise be idle(becasue the number of pairs of branded footwear that company management is planning to produce is below full production
