Player guide

Revenue

432.6 Million and net earnings of $40 million = to $2 per share of common stock.

Company produces 2 footwear at 2 plants:

North America and Asia Pacific region. North America - 5 Million of athletic footwear annually without overtime. Asia - Pacific - 6 million pairs (4 million without overtime)

Footwear Companies

North America, Europe-Africa, Asia-Pacific, and Latin America.

Your company sell over:

8 million pairs annually.

The company runs:

10 years ago and you are running the year 11th.

Which of the following are the 5 measures on which a company's performance is judged/scored? a. S/Q rating, revenues, EPS, ROE, and year-end cash balance b. Quality rating, stock price, dividends, credit rating, and net profit margin c. Earnings per share, ROE, stock price, credit rating, and image rating d. Revenues, global market share, net profits, ROE, and credit rating e. Revenues, net profit, stock price, credit rating, and global market share

C

4. Which the following are factors in determining a company's credit rating? a. Its default risk ratio, debt-asset ratio, and interest coverage ratio b. Its times-interest-earned ratio, debt-equity ratio, and return on investment c. A company's current ratio, accounts payable, operating profit margin, and the margin by which free cash flow exceeds interest payments d. Its loans outstanding, dividend payout ratio, debt-equity ratio, and free cash flow e. Its debt-equity ratio, current ratio, and gross profit margin

a

First priority of BSG participant should be:

absorb the contents of this player's guide and get a firm grip on what the exercise involves, the character of the global athletic footwear market, and various cause-effect relationships that govern your company's operations.

7. The market for branded athletic footwear is projected to grow: a. between 8-11% annually worldwide during the Year 11-20 period. b. 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. c. 6-9% annually in all four geographic regions during the Year 11-Year 15 period and 7-8% annually in all four regions during the Year 16-Year 20 period. d. 10-12% annually in North America and Europe-Africa during the Year 11-Year 15 period and 6-8% annually in these regions during the Year 16-Year 20 period. e. 6% annually in all four geographic markets during Years 11-15, and then slow gradually to 3% annually in all markets by Year 20.

b

1. The company currently has production facilities to make athletic footwear in:

b. North America and Asia Pacific

11. Which of the following is/are not among the factors that affect worker productivity? a. Expenditures for best practices training b. Whether plant upgrade option D has been installed c. The percentage of newly-hired workers and the percentage use of superior materials d. The size of incentive payments per non-defective pair e. Base pay increase

c

5. The interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of: a. its credit rating, coupled with the percentage of prior-year investor-expected performance targets the company met or beat. b. how many consecutive years the company has been profitable, its current ratio, and its default risk ratio. c. its credit rating, and the length of time over repayment is scheduled to occur (1 year, 5 years, or 10 years). d. its total debt-to-assets ratio and their ratio of its stock price to its EPS. e. its balance sheet strength as measured by its retained earnings, debt-equity ratio, and default risk ratio.

c

2. Which 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? a. The number of retailers stocking the company's footwear brand b. The number of models/styles in the company's product line c. Footwear features and footwear durability d. S/Q ratings of the company's footweare. Expenditures for retailer support

c.

12. Which one of the following does not affect the reject rates at a company's plants? a. The size of the incentive payment per non-defective pair produced b. Spending for TQM/Six Sigma quality control efforts c. The number of models/styles comprising the company's product line d. The installation of plant upgrade C e. Spending for best practices training

d

9. Which of the following currencies are involved in affecting the operations of your company's athletic footwear business? a. Singapore dollars, South African rand, Chilean pesos, and Turkish lira b. U.S. dollars, Indian rupees, Swiss francs, Argentine pesos, and euros c. Japanese yen, Mexican pesos, Indian rupees, Canadian dollars, euros, and the Australian dollar d. U.S. dollars, Singapore dollars, Euros, and Brazilian reals e. Brazilian reals, Canadian dollars, Japanese yen, Chinese renminbi, and New Zealand dollars

d

10. 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? a. Whether the company's private-label footwear has a higher S/Q rating than the footwear of rival private-label manufacturers b. The number of models/styles comprising the company's product line c. The appeal of the celebrities signed to endorse the company's footwear d. The amount of merchandising support provided to retailers e. The company's bid price

e

13. Which of the following is among the three competitive factors that impact only Internet Sales and market share in a region? a. The number of branded models/styles that each company has designed and produced for exclusive sale at its website - such models/styles cannot be obtained anywhere else. b. The S/Q rating of the branded footwear each company sells to online buyers. c. Company expenditures for brand advertising. d. Company expenditures to support the online merchandising efforts of third-party online retailers of athletic footwear. e. Wheether a company offers free shipping on buyer orders or requires customers to pay the shipping charges.

e

BSG

is an online exercise, modeled to reflect the real-world character of the globally competitive athletic footwear industry and structured so that you run a company in head-to-head competition against companies run by other class members. - enable you and your co-managers to apply what you have learned in business school and to practice making reasonsed, businesslike decisions aimed at improving your company's overall performance.

6. Which of the following best describes the materials the company uses to make its footwear? a. Interior lining fabrics, waterproof microfibers, rubber, cotton shoelaces, and fiberglass thread b. Standard and superior materials c. Synthetic fibers, waterproof polyesters, microfibers, rubber, high-strength threads, and metal eyelets. d. High-strength and regular-strength materialse. Normal-wear and long-wear materials

b

8. The factors that affect a company's S/Q rating include: a. the size of annual base pay increases; reject rates; expenditures for best practices training; whether plant upgrade B has been installed. b. the number of performance features built into branded models/styles annually; the durability of its athletic shoes; how much best practices training the average production worker has had; and plant reject rates. c. whether plant upgrade C has been installed; a company's cumulative spending for TQM/Six Sigma quality control programs; and expenditures for new styling/features per model. d. how well compensated its work force is; whether shoes are produced with standard materials or superior materials; the durability and quality of the footwear, and how many models/styles are included in its product line. e. whether materials are produced in-house or outsourced; overall footwear quality; how much is spent to inspect newly-produced pairs and avoid shipping defective shoes; the size of the incentives paid to production workers.

c