Strategic Thinking – Quiz 11.The market for private-label athletic footwear is projected to grow4-6% annually in all 4 regions during the Year 11-Year 20 period.b. 10% annually in all four geographic regions during the Year 11-Year 15 period and 8.5%annually in all four regions during the Year 16-Year 20 period.8% annually in all four geographic markets during Years 11-15, and then slow graduallyto 3% annually in all markets by Year 20.d. 10% annually in North America and Latin America during the Year 11-Year 20 period and12% annually in Europe-Africa and the Asia-Pacific during the Year 11-Year 20 period.a.c.e.10% annually in North America and Latin America during the Year 11-Year 20 period and8.5% annually in Europe-Africa and the Asia-Pacific regions during the Year 11-Year 20period.2.Which of the following are components of the compensation package for production workers atyour company’s plants?Hourly wages, fringe benefits, and overtime payb. Piecework incentives per pair produced, perfect attendance bonuses at best practicestraining programs, stock options, fringe benefits, and overtime payWeekly salary, fringe benefits, year-end bonuses tied to the number of non-defectivepairs produced, and overtime payd. Base wages, incentive payments per non defective pair produced, and overtime payHourly wages, overtime pay, teamwork bonuses, fringe benefits, and stock optionsWhich of the following are the four geographic regions in which the company sells branded andprivate-label athletic footwear?The United States, Argentina, Great Britain, and Japanb. Europe-Africa, Latin America, Asia-Pacific, and North AmericaGermany, Brazil, China, and the United Statesd. Latin America, Europe, China, and North AmericaJapan/China, North America, the European Union, and the Middle EastWhich of the following most accurately describes your company’s plant operations?a.c.e.3.a.c.e.4.a.The company makes most all of its footwear materials and components in-house anduses 25-person assembly lines to make branded shoes at the rate of 5000 pairs perweek.b. Branded production is done during regular time and private-label footwear is producedonly during overtime.All footwear production teams must go through 40 hours of best practices trainingc.annually.d. Standard and superior materials are sourced from outside suppliers at prices that varyaccording to global demand-supply conditions; the company’s production workers arecompensated on the basis of both base pay and incentive payments per pair produced.e.Workers are organized into 3-person teams; each team has the capability to make 5,000pairs annually; teams are compensated at the rate of $10 per pair produced.5.A footwear-maker’s price competitiveness in selling branded footwear to retailers in a particulargeographic region is determined bywhether its net wholesale price after all rebates is above or below the net wholesaleprice of all companies after all rebates are factored in.b. how favorably its wholesale price compares to the highest price being charged by therival company with the lowest S/Q rating in the region.whether its wholesale price is above or below the average price of all companiescompeting in that geographic region.d. whether its wholesale price is at least 10% below the wholesale price of the companyhaving the most number of models/styles in the region.how favorably its wholesale price compares with the wholesale price of the companyhaving the highest S/Q rating in any of the four geographic regions.The company’s shipments of newly-produced branded and private-label footwear from its plantsto its regional distribution centers are subject toexport fees equal to 10% of the manufacturing costs of the pairs shipped and exchangerate shifts of as high as 25%.b. any applicable import tariffs and exchange rate adjustments.1-million pair import quotas on shipments from foreign plants to Europe-Africa andAsia-Pacific and exchange rate shifts of as high as 5%.d. shipping charges of $3 per pair on all pairs shipped from one region to another regionand exchange rate shifts of as high as 10%.tariffs of $6 per pair and shipping fees of $2 per pair.Which of the following best describes the materials the company uses to make its footwear?Normal-wear and long-wear materialsb. Standard and superior materialsNatural and man-made materialsd. Synthetic fibers, waterproof polyesters, microfibers, rubber, and metal eyeletsDurable and non-durable materialsIn Year 11, footwear companies can expect to sellno less than 3.8 and no more than 5.3 million branded pairs and no less than 750,000and no more than 1.1 million private-label pairs.b. between 7 and 8 million branded pairs and 250,000 and 500,000 private-label pairs.a.c.e.6.a.c.e.7.a.c.e.8.a.c.an average of 4.84 million branded pairs and an average of 800,000 private-label pairs,although sales at some companies may run higher or lower than the averages due todiffering levels of competitive effort.d. exactly 5.244 million branded pairs and 600,000 private-label pairs.exactly 4.844 million branded pairs and 800,000 private-label pairs.The reject rates at the company’s footwear plants are a function ofworkers’ total compensation package, the number of plants, and the installation ofupgrade option D.b. the size of the incentive payment per non-defective pair produced, spending for bestpractices training, spending for TQM/Six Sigma quality control, the number ofe.9.a.models/styles comprising the company’s product line, and the installation of plantupgrade option A.c.the size of worker’s annual base pay, year-end incentive bonuses, best practicestraining, the plant’s D/P (performance/durability) rating, and the number ofmodels/styles comprising the company’s product line.d. best practices training, overtime pay, spending for TQM/Six Sigma quality control, thenumber of models/styles comprising the company’s product line, and the use of plantupgrade option C.e.the S/Q rating, worker experience, incentive bonuses for teamwork and perfectattendance, best practices training, spending for new features and styling, and the useof plant upgrade option B.10. Which of the following are the 5 measures on which a company’s performance isjudged/scored?a.Free cash flow, revenues, global market share, EPS, and ROEb. Earnings per share, ROE, revenues, stock price, and credit ratingEarnings per share, ROE, stock price, credit rating, and image ratingd. Global market share, ROE, net profit, stock price, and free cash flowCredit rating, revenues, EPS, ROE, and the number of annual dividend increases11. Which of the following currencies are involved in affecting the operations of your company’sathletic footwear business?Japanese yen, Mexican pesos, Indian rupees, Canadian dollars, euros, and the Australianc.e.a.dollarb. Singapore dollars, South African rand, Chilean pesos, and Turkish liraU.S. dollars, Singapore dollars, euros, and Brazilian realsd. Brazilian reals, Canadian dollars, Japanese yen, Chinese renminbi, and New Zealandc.dollarse.U.S. dollars, Indian rupees, Swiss francs, Argentine pesos, and euros12. The company currently has production facilities to make athletic footwear inUnited States and China.b. Asia-Pacific and North America.North America and Europe-Africa.d. China and Mexico.Italy, Brazil, China, and South Africa.13. Which the following are factors in determining a company’s credit rating?A company’s stock price, earnings per share, ROE, and current ratiob. Its debt-asset ratio, default risk ratio, and interest coverage ratioThe amount of loans outstanding, its accounts payable, current ratio, and net profita.c.e.a.c.margind. The percentage of loans that not have been repaid, its debt-equity ratio, operatingprofit margin, and inventories on handThe company’s year-end cash balance, current ratio, and net profit margin14. At the end of Year 10, going into Year 11, the company’s production capability wase.a.6 million pairs without the use of overtime and 7 million pairs with the use of overtime.b. 6 million pairs without the use of overtime and 7.5 million pairs with the use ofovertime.c.5 million pairs without the use of overtime and 6.25 million pairs with the use ofovertime.d. 7 million pairs without the use of overtime and 8.4 million pairs with the use ofovertime.e.6 million pairs without the use of overtime and 7.2 million pairs with the use ofovertime.15. Which one of the following is not a factor in determining a company’s unit sales and marketshare of branded footwear in a particular geographic region?The number of retailers stocking the company’s footwear brand and delivery times toretailers ( 1, 2, 3, or 4 weeks)b. Expenditures for retailer supportThe number of annual sales promotionsd. The appeal of the celebrities signed to endorse the company’s footwearInternet and wholesale prices16. The factors that affect a company’s S/Q rating include:a.c.e.a.the number of new performance features built into models/styles annually; the imagethat its athletic shoes have with consumers; how much emphasis it puts on TQM/SixSigma quality control; and plant reject rates.b. whether superior material are produced in-house or outsourced; overall footwearquality; how much is spent to inspect newly-produced pairs and avoid shippingdefective shoes; and the size of annual base pay increases.c.the percentage use of superior materials; a company’s cumulative spending for TQM/SixSigma quality control programs; the use of best practices training; and expenditures fornew styling/features per model.d. How well compensated its work force is; whether shoes are produced with standardmaterials or superior materials; whether the company utilizes TQM instead of bestpractices training; and how many models/styles are included in its product line.e.the size of incentive bonuses paid to workers for defect-free workmanship; plant rejectrates; expenditures for best practices training; the age of plants and the number of plantupgrades that have been installed; and advertising expenditures.17. Which of the following is the most important factor in determining a company’s unit sales andmarket share of private-label footwear in a particular geographic region?The amount of merchandising support provided to retailersb. The company’s bid priceThe number of models/styles comprising the company’s product lined. The appeal of the celebrities signed to endorse the company’s footwearWhether the company’s private-label footwear has a higher S/Q rating than thefootwear of rival private-label manufacturers18. Which of the following is not among the factors that affect worker productivity?a.c.e.a.The size of incentive payments per non-defective pairb. Increases in base payExpenditures for best practices trainingd. How favorably a company’s compensation package compares with the industry-averagecompensation packageWhether plant upgrade option A has been installed19. The interest rate a company pays on loans outstanding depends onits credit rating.b. its current ratio, the amount of cash on hand to make interest payments, and theaverage annual amount of free cash flow.its balance sheet strength as measured by its current ratio, debt-equity ratio, anddefault risk ratio.d. how much it has borrowed?the lower the amount of loans the company has taken out,the lower the interest rate on any new loans.how many consecutive years the company has been profitable, its current ratio, and itsfree cash flow.20. The market for branded athletic footwear is projected to grow10-12% annually in North America and Europe-Africa during the Year 11-Year 15 periodand 6-8% annually in these regions during the Year 16-Year 20 period.b. 6% annually in all four geographic markets during Years 11-15, and then slow graduallyto 3% annually in all markets by Year 20.9-11% annually in Latin America and the Asia-Pacific during the Year 11-Year 15 periodand 7-9% annually in these regions during the Year 16-Year 20 period.d. between 5-10% annually worldwide during the Year 11-20 period.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.c.e.a.c.e.a.c.e.