Q14. The company’s shipments of newly-produced branded and private-label footwear from its facilities to its regional distribution centers are subject to
1. export fees equal to 4% of the manufacturing costs of the pairs shipped and exchange rate shifts of as high as 15%.
2. any applicable import tariffs and exchange rate adjustments on cross-region shipments.
3. tariffs of $5 per pair, shipping fees of $2.50 per pair, and exchange rate shifts of as high as 12%.
4. 3-million pair import quotas on shipments from foreign facilities to Europe-Africa and Asia-Pacific.
5. shipping charges of $1.50 per pair on all pairs shipped to distribution centers in the same region as the production facility and $2.50 on all pairs shipped from one region to another.
Q 15. 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?
1. Unit sales volumes per company of private-label footwear in Years 11-13 are projected to be higher in the Asia-Pacific and Latin America regions than in the North America and Europe-Africa regions.
2. The unit sales volumes of private-label footwear per company in the Asia-Pacific region in Years 11-13 are projected to be the same as in Latin America.
3. The unit sales volumes per company in North America in Year 12 are projected to be 2,640,000 pairs of branded footwear and 246,000 pairs of private-label footwear.
4. The unit sales volumes of private-label footwear per company in the Europe-Africa region in Years 11-13 are projected to be the same as in North America.
5. The projected unit sales volumes of private-label footwear per company in Europe-Africa in Years 11-13 are higher than in North America.
Q16. Buyer demand for branded athletic footwear is projected to grow
1. 9-11% annually in Europe-Africa and Latin America during Years 16-20 and 7-9% annually in North America and the Asia-Pacific during Years 16-20.
2. 10-12% annually in North America and Europe-Africa during Years 11-15 and 7-9% annually in these two regions during Years 16-20.
3. 6-8% annually in all four geographic regions during Years 11-15 and an average of 3-5% annually across all four regions during Years 16-20.
4. 7-9% annually in Europe-Africa in Years 11-15 and 5-7% annually in North America and Latin America in Years 16-20.
5. 3-5% annually in North America and Europe-Africa in Years 16-20 and 7-9% annually in the Asia-Pacific region and Latin America in Years 16-20.
Q17. Which of the following most accurately describes your company’s production operations?
1. Workers are organized into 3-person footwear production and assembly teams; each team has the capability to make 5,000 pairs annually; and teams are compensated at the rate of $12 per pair produced during regular time and $18 per pair when facilities are operating at overtime.
2. TQM/Six Sigma quality control programs and best practices training are a means of increasing the S/Q ratings of both branded and private-label footwear produced at each production facility.
3. Branded production always takes place during regular time to save on labor costs, while the production of private-label footwear occurs chiefly during overtime periods.
4. Standard materials are used to make private-label shoes and superior materials are used to make branded footwear.
5. The company compensates production workers at the rate of $2 for each pair produced and uses TQM/Six Sigma quality control programs to keep reject rates under 1.0% of the branded pairs produced.
Q18. 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?
1. Big S/Q rating differences, big average wholesale price differences, and big differences in the number of models/styles offered in a region weigh heavily in accounting for company-to-company differences in branded pairs sold and market share in all four regions.
2. The closer to the all-company regional average is a company’s price or S/Q rating or brand reputation or number of models (and so on) the smaller is the weighting/impact of that factor in accounting for why that company’s regional unit sales/market share is above/below the region’s all-company unit sales/market share averages
3. When a company’s competitive effort on each of the relevant competitive factors in the wholesale or internet market segments for branded footwear approximates the all-company averages in a region, then its resulting unit sales volume/market share in those two segments will also approximate the region’s all-company sales/market share averages.
4. 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 cross-company differences in competitive effort on less influential competitive factors.
5. As the spread between the company with the region’s strongest competitive effort on a given competitive factor and the company with the region’s weakest competitive effort becomes greater and greater, the stronger is the resulting impact of that competitive factor on the pairs sold/market share outcomes of the various companies.
Q19. The 13 competitive factors that affect each company’s branded footwear sales volumes and market shares in each of the four geographic market regions do NOT include which one of the following?
1. The appeal of the celebrities that have agreed to endorse a company’s brand
2. The average retail prices companies are charging for their branded footwear models in each region’s Internet Segment
3. Mail-in rebate offers
4. The average number of new performance features that companies build into their new footwear models at the beginning of each new calendar year
5. The numbers of retail outlets in each geographic region that stock a company’s footwear models/styles and promote its brand with shoppers
Q20. The projected growth in buyer demand for private-label athletic footwear is
1. 10-12% annually in all four regions during Years 11-15.
2. the world’s highest in Europe-Africa in Years 11-15, but is the highest in the world in the Asia Pacific region in Years 16-20.
3. 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.
4. 12-14% annually in all 4 regions during the Year 11-Year 15 period and 10-12% annually in all 4 regions during the Year 16-Year 20 period.
5. highest in North America and Europe-Africa during the Year 11-15 period but is highest in the Asia-Pacific and Latin America regions during Years 16-20.
