Question 32 Previous Next > A strategy to be a low-cost provider of branded footwear is unlikely to result in the company being one of the best performers in the industry unless the company's management team proves adept in operating the company as cost effectively (if not more cost effectively) than rivals that are also striving to be a low-cost provider of branded footwear. succeeds in being among the leaders in selling private-label footwear--and earning good profits doing so. give production workers big enough increases in base pay each year to keep total employee compensation in regions where it has production facilities above the industry- average (as shown/reported in the benchmarking section of each issue of the FIR). has the foresight to build total production capacity (not including overtime) that is about 5 million pairs greater than any other company in the industry and locate all of its capacity in the Asia-Pacific and Europe-Africa. is shrewd enough to operate the company in a manner that enables it to earn an operating profit in both the Internet and wholesale segments for branded footwear that is above the industry average in most all of the four geographic regions each year (operating profit margins are reported in each year's FIR). Question 33 Which of the following actions is not one of the optional initiatives that a company can include in its social responsibility strategy to boost its image rating over the long term? Investing in and operating a cafeteria and on-site childcare facilities at each of the company's production facilities Investing in and maintaining improved lighting, ventilation, and safety at the company's production facilities to improve working conditions Developing a code of ethics and spending money annually for ethics training and enforcement of the company's ethical standards Using recycled packaging materials to box each pair of athletic footwear at the company's distribution centers Building and operating a large employee housing facility within walking distance of each company production facility with 1, 2, and 3 bedroom units that employees can rent at an economical price UUUUOSO Question 34 The benefits of pursuing a strategy of social responsibility and corporate citizenship include the positive impact on company sales of branded footwear that occurs when a company wins a Corporate Responsibility Award for Exemplary Corporate Citizenship. the boost such a strategy gives to increasing the company's global sales volume and global market share of branded footwear and private-label footwear when the company's spending for socially responsible activities is at least $1 million annually. the positive impact that such a strategy has on the company's image rating/brand reputation, provided the company spends a meaningful amount on socially responsible activities and such spending is sustained over a multi-year period. higher sales of branded footwear at the company's regional websites (because online buyers customers are impressed and pleased with the company's commitment to being a good corporate citizen). the positive impact such a strategy has on boosting the company's ROE and stock price, whenever the amount the company spends for socially responsible activities is at least $1 million annually Question 35