Question

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 large multi-outlet retailers of athletic footwear in a particular geographic region? Copyright by Glo-Bus Software, Inc. Copyin, distributing, or and party website posting sexpressly prohibited and constituts copyright violation The price at which the company offers to supply the retailers with private-label pairs The promised delivery times to chain retailers (1, 2, 3, or 4 weeks) The S/Q rating assigned to the company's private-label footwear The number of models/styles the company offers to supply The company's prior-year market share of global private-label footwear sale

Answer 1

The company's price offer is the most important competitive factor in determining a company's ability to secure contracts to supply private-label footwear to large multi-outlet retailers of athletic footwear in a particular geographic region.

The S/Q ratings of both branded and private-label footwear manufactured at each production plant can be raised through TQM/Six Sigma quality control systems and best practices training.

Five things affect the S/Q rating: The following factors should be taken into account: (1) current-year spending per footwear model for new features and styling; (2) the percentage of superior materials used; (3) current-year expenditures for Total Quality Management (TQM) and/or Six Sigma quality control programs; (4) cumulative expenditures for TQM/Six Sigma quality control efforts (to reflect learning and experience curve effects); and (5) current-year and cumulative expenditures to train employees in using the best practices to assemble athletic footwear.

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