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GLO-BUS QUIZ 2
Professor Duffy
The factors that affect a company's P/Q rating for UAV drones include
the assembly quality incentives paid to drone PAT members, the company's prior-year brand
reputation, and the prior year worldwide average warranty claim rate on the company's drones.
Which of the following ARE components of the compensation package for members of
production assembly teams?
The dollar-cost of a PAT member's fringe benefit package, assembly quality incentives ($ per
unit assembled divided equally among PAT members), year-end bonus for perfect attendance,
and annual base wage
The factors that affect the productivity of both camera PATs and drone PATs include
the size of assembly quality incentives paid to camera/drone PATs, how favorably the overall
size of the company's total compensation package (not including overtime pay) per camera/drone
PAT member compares against the camera/drone all-company averages, and changes in the
number of camera/drone models that have to be assembled.
The company's present assembly plant has sufficient space for
up to 150 workstations, without expanding the size of the plant.
A camera-maker's price competitiveness in a particular geographic region is determined by
whether its price is above or below the average price of all companies competing in that
geographic region.
The interest rate a company pays on loans outstanding depends on
its credit rating.
Which the following are not factors in determining a company's credit rating?
The size of the company's year-end cash balance, the average of its ROE for the past three years,
and how many times the company has been put on credit watch.
Consumer purchases of digital cameras are seasonal with
about 20% of consumer demand coming in quarter 1, 20% in quarter 2, 20% in quarter 3 and
40% in quarter 4.
Which of the following are the four geographic regions in which the company is selling its
cameras?
Europe-Africa, Latin America, Asia-Pacific, and North America.
Which of the following currencies are involved in affecting the revenues your company receives
on camera shipments to retailers in the four geographic regions of the world where it markets
cameras?
U.S. dollars, Taiwan dollars, Singapore dollars, euros, and Brazilian real.
Which of the following do not have a bearing in determining a company's unit sales and market
share of entry-level or multi-featured cameras in a particular geographic region?
The size of the incentive bonus paid to PATs, the percentage of cameras that were outsourced,
and warranty claims costs.
,The company's shipments of digital cameras to retailers in various foreign countries are subject to
import duties imposed by the countries to which the cameras are shipped and the effects of fluctuating
exchange rates.
The factors that affect a company's P/Q rating include:
the caliber of core components; company's cumulative spending for new product R&D, engineering and
design; the number of models; camera body ergonomics/durability; and the number of special utility
features.
The company maintains a production facility in Taiwan.
The decisions that company co-manages make each year are organized around
marketing, product design, assembly/shipping, compensation and labor force, and finance.
The options that a company has for assembling enough cameras to meet peak-quarter order form retailers
include
hiring "temporary" PATs, the use of overtime, and outsourcing assembly to contact assemblers.
The factors that affect the productivity of PATs include
the size of incentive bonuses to workers, base pay increases, perfect attendance bonuses, the size of the fring
benefits package, how favorably the overall size of a company's compensation package compares with the
industry-average compensation package, expenditures for PAT training and productivity improvement, and
changes in the number of models.
The market for digital cameras is projected to grow
at 8-10% annually during the year 6-year 10 period and at 4-6% during the year 11-year 15 period.
Which of the following is not an accurate description of the market for digital cameras? Retailers get
their cameras from camera-makers on a just-in-time delivery basis.
Which of the following are not measures on which a company's performance is judged/scored? P/Q rating,
dividend payments, revenues, market share, and total number of cameras sold, and balance sheet strength.
Which of the following most accurately describes your company's production/assembly operations?
Most all camera components are sources from outside suppliers having plants or distribution centers near the
company's assembly facility; the company uses workstations staffed by 4-person teams to assemble cameras
In the most recent year, the current productivity of the assembly teams was 2,500 cameras per quarter or
10,000 per year. Some cameras are outsourced from contract assemblers that are paid a $25 fee for each
camera assembled.
Which of the following statements accurately describes the distribution of the company's unit sales across
the four geographic regions in which it sells cameras?
The company sells 40% of its cameras its biggest region and sells only 10% of its cameras in its smallest
region.
Which one of the following is NOT a way to improve the P/Q rating of a company's brand of multi-
featured cameras?
Increasing the number of models in the company's line of multi-featured cameras. Assume a
company's Income Statement for a given quarter is as follows: Sales Revenues (50,000), Production
Costs (26,500), Delivery Costs (1,600), Marketing Costs (8,500),
Administrative Expenses (2,000), Operating Profit (14,400), Net Interest (750), Income Before
NEW GLO-BUS Quiz 2 Answers
e < II] a Glo-Bus Software, Inc.
Global Business Strategy Simulation Game https://new.glo-bus.com/users/qu
< Previous Question 1 Next
,Which of the following is NOT an action company co-managers can take to help
meet or beat the investor-expected increases in the company'sstock price in
upcoming years?
Making it company practice to issue additional shares of stock each year and use th
proceeds to pay down the debt outstanding until the company's debt-equity percentage
reach 20% or lower for debt and 80% or more for equity
When the company's stock price drops because of unexpectedly weak compan
performance in the prior year but is expected to recover and rise in the next severa
decision rounds, opting to borrow money preferably in the form of 1-year loans from
the Global Community Bank (but not so much as to impair the company'scredi
rating) and using the borrowed funds to repurchase outstanding shares of commo
stock
Making it a frequent management practice to allocate a portion of internal cash flow
from operations to repurchasing shares of the company'scommon stock
Increasing annual dividend payments to shareholders most every year
Putting increased attention on boosting operating profits in all four geographi
regions -- the resulting growth in operating profits companywide will act to increas
total net profits and EPS; higher earnings per share are an important driver of th
company'sstock price
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, e < II] a Glo-Bus Software, Inc.
Global Business Strategy Simulation Game https://new.glo-bus.com/users/qu
< Previous Question 2 X Next
Which one of the following is NEITHER an advantage or disadvantage of shifting to
robotics-assisted camera assembly methods?
The capital cost of converting to robot-assisted camera assembly can increase a
company's interest costs, to the extent that a portion of the capital costs are
financed by bank loans.
Robot-assisted assembly reduces total annual compensation costs per PAT and also
reduces the overtime cost of assembling a camera.
Installing robots at each camera workstation enables the size of PATs to be cut from
4 members to 3 members.
Robot-assisted camera assembly boosts the annual productivity of camera PATs by 500
cameras per year.
Robot-assisted camera assembly increases annual workstation maintenance costs.
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