Simulation BSG chapter 1

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

its interest coverage ratio, its debt-asset ration, its default risk ratio

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

The wages, salaries and bonuses paid to employees to each of the company's distribution centers

Which of the following is not an accurate characteristic of your company's production operations?

Going into Year 11, both of your company's production facilities utilize 100% new state-of-the-art equipment that was installed in Year 8; because this equipment has a useful life of only 10 years, it will have to be scrapped and replaced in Year 18.

The projected growth in buyer demand for branded athletic footwear is

5-7% annually in Europe-Africa during Years 11-15, declining to 3-5% during Years 16-20.

The projected unit sales volumes of branded and private-label footwear per company in the table on p.6 of the Player's Guide indicate that

North American is the geographic region with biggest projected unit sales of branded footwear per company in years 11,12, and 13

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

ROE, stock price, EPS, credit rating, and image rating

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

the Asia-Pacific region and North America.

The factors that affect a company's S/Q rating by the International Footwear Federation include

current and cumulative spending for TQM/Six Sigma quality control programs

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 one of the following is not one of the 5 competitive factors that affect only wholesale sales of branded footwear to athletic footwear retailers?

Expenditures for brand advertising

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

The S/Q ratings of the footwear being produced and whether the percentage use of superior materials exceeds 65%

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?

The biggest possible competitive advantage a company can achieve in a given region's Internet Segment is to offer free shipping and thereby capture the biggest number of pairs sold and the biggest market share of any company in that region's Internet Segment.

Which of the following statements about the importance of each competitive factor (but especially such highly influential factors as selling prices, S/Q ratings, and number of models/styles offered) in determining company sales volumes and market shares in a particular geographic region is false?

Tiny cross-company differences on a highly influential competitive factor (like selling prices, or S/Q ratings or models/styles) nearly always have a bigger impact on company sales/market shares in a region than do large differences on less influential competitive factors like mail-in rebates or expenditures for retailer support.

Buyer demand for private-label athletic footwear is projected to grow

at a higher percentage rate in the Asia-Pacific and Latin America regions than in the North America and Europe Africa regions throughout the Year 11-Year 20 period.

The three competitive factors that impact only Internet sales and market share in a region include

expenditures for search engine advertising and the average retail price charged for the models/styles available at each company's website.

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).

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

prevailing per pair shipping charges from plant(s) to regional distribution center(s) plus any applicable import tariffs and exchange rate adjustments on cross-region shipments.

The size of any price-based competitive disadvantage a footwear-maker might have in selling branded footwear to footwear retailers in a particular geographic region depends on

the amount by which its average wholesale price is above the region's average wholesale price; the further a company's average wholesale price is above a region's average wholesale price, the greater is its price-based competitive disadvantage.

Which of the following is the most important competitive factor in determining a company's ability to secure contracts to supply private-label footwear to chain retailers in a particular geographic region?

The company's price offer to supply chain retailers with private-label footwear.