Simulation Quiz 1

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The company's shipments of newly-produced branded and private-label footwear from its facilities to its regional distribution centers are subject to

Any applicable import tariffs and exchange rate adjustments.

Which of the following is the most important competitive factor in determining a company's unit sales and market share of private-label footwear in a particular geographic region?

The company's price offer relative to the price offers of rival footwear companies

Which of the following are components of the total compensation package for production workers at your company's production facilities?

Base wages, incentive payments per non-defective pair produced, fringe benefits, and any overtime pay

Which of the following financial measures are used to determine a company's credit rating?

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

Which one of the following does not affect the reject rates at a company's production facilities?

The S/Q rating of pairs being produced and the percentage use of superior materials

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.

At the beginning of Year 11, the company has production facilities to make athletic footwear in

North America and the Asia-Pacific region.

Which of the following statements about the average wholesale price a company charges footwear retailers in a given geographic region is incorrect?

So long as a company has a big price-based competitive advantage in a region's Wholesale Segment, it has the ability to achieve an attractively-large sales volume and market share even if it suffers from sizable competitive disadvantages on all of the other competitively-relevant factors.

Which of the following most accurately describes your company's production operations?

TQM/Six Sigma quality control programs are used to reduce reject rates while best practices training is used to increase S/Q ratings and the number of different models that can be produced each week.

Which of the following statements about the importance of each competitive factor in determining company-to-company differences in branded sales volumes and market shares in a particular geographic region is false?

Tiny cross-company differences in competitive effort on a highly influential competitive factor (like S/Q ratings, the number of models/styles offered, and selling prices) nearly always have a far bigger impact on company sales/market share outcomes in a region than do large differences on less influential competitive factors.

The projected growth in buyer demand for branded athletic footwear is

5-7% annually in the North America and Europe-Africa regions during the Year 11-Year 15 period, decreasing to 3-5% annually in these same two regions during the Year 16-Year 20 period.

A company's distribution and warehouse expenses do NOT include which one of the following?

Any tariffs on pairs imported from the company's foreign production facilities

Which one of the following is not one of the factors that affect the S/Q rating of a company's footwear?

Current-year spending per footwear model for new styling/features and whether production improvement option C has been installed (this option entails investing in special production equipment that boosts the S/Q rating of all pairs produced by 1.0 star)

Which one of the following is not one of the 5 competitive factors that impact both Internet Sales and Wholesale Sales of branded footwear?

Search engine advertising

Which one of the following statements about the projected unit sales volumes per company in the table on p.6 of the Player's Guide is false?

The projected unit sales volumes of branded footwear per company in Europe-Africa in Years 11-13 are higher than in North America.

Which of the following is among the three competitive factors that impact only Internet sales and market share in a region?

Whether a company offers free shipping on buyer orders or requires customers to pay the shipping charges

The projected growth in buyer demand for private-label athletic footwear is

higher in the Asia-Pacific and Latin America regions than in the North America and Europe-Africa regions in Years 11-15; the same is true in Years 16-20.

The interest rate a company pays on 1-year, 5-year, and 10-year loans is a function of

its credit rating and the length of time over repayment is scheduled to occur ( 1-year, 5-years, or 10 years).

Which of the following is/are not among the factors that affect worker productivity?

The percentage of newly-hired workers and whether the percentage use of superior materials exceeds 50%

Which of the following statements about the impact of a company's competitive efforts in a region on its regional market share and number of branded pairs sold is false?

he more a company's S/Q rating in a region is below the all-company average, the bigger is the company's resulting S/Q rating-based competitive disadvantage and the bigger is the resulting negative impact on the company's pairs sold and market share in the region.


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