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Glo-Bus Participant's Guide Questions & Detailed Complete Solutions All Passed

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GLO-BUS PARTICIPANT'S GUIDE QUESTIONS & DETAILED COMPLETE SOLUTIONS ALL PASSED is not a traditional lecture-based class—it’s an interactive business strategy simulation used mainly in business, MBA, and management courses.

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GLO-BUS PARTICIPANT'S GUIDE
QUESTIONS & DETAILED COMPLETE
SOLUTIONS ALL PASSED
Which of the following does NOT accurately describe your company's camera/drone
business and operations?
The company has two buildings for assembling products at its Taiwan site - one for
cameras and one for drones (the drone assembly process also includes assembly of an
action camera model having features and specifications suitable for use in camera-
equipped drones). No camera models or drone models are assembled in advance,
warehoused in company facilities and then used to fill incoming orders.
Your company maintains regional facilities in Milan, Italy; Singapore; Sao Paulo, Brazil;
and Dallas, Texas to handle the company's marketing efforts in each of the world's
principal geographic regions, to support the merchandising efforts of area retailers who
stock the company's brand of action-capture cameras and UAV drones, and to process
camera/drone warranty claims including making needed repairs) originating in their -
Correct Answer ✔✔ The company makes the majority of the needed camera
components at facilities close to its Taiwan assembly plant; newly-produced camera
components are transferred by truck on a just-in-time basis to the company's camera
assembly facilities where the company operates a 250-person assembly line capable of
turning out 3,250 cameras per hour. There is ample space at the camera assembly
facility to add two more 250-person assembly lines should they be needed later to fill
incoming buyer orders.

Worldwide unit sales of wearable, miniature action-capture cameras are reliably
projected to grow:
A. 6-8% annually for Years 6-10 and then to grow at a slower 4-6% annual rate during
the Years 11-15.
B. At rates that can range from as little as 5% annually to as high as 15% annually
C. About 10% annually through Year 15
D. To grow 8-10% annually during Years 6-10 and then to grow at a slower 6-8%
annual rate during the following five years (Years 11-15)
10% annually for Years 6-10, and then slow gradually to 5% annually during Years 11-
15. - Correct Answer ✔✔ A. 6-8% annually for Years 6-10 and then to grow at a slower
4-6% annual rate during the Years 11-15.

Which of the following is NOT one of the benefits of current-year and cumulative
expenditures for camera/drone product R&D?
A. Reducing total annual compensation costs for PATs because such spending, once it
reaches $25 million annually and a cumulative total of $100 million, allows the size of
PATs to be reduced from 4 persons to 2 persons

, B. Increasing the productivity of PATs in assembling camera/drone models (because of
easier to assemble product designs); the size of this benefit occurs immediately and
varies according to the current and cumulative amounts spent
C. Boosting a company's P/Q ratings (the size of this benefit varies with the current and
cumulative amounts spent and shows up in the P/Q ratings at the beginning of the
following year)
D. Reducing warranty claims and costs (these two benefits show at the beginning of the
following year)
Providing a pipeline of tested ways to add more features, improve - Correct Answer ✔✔
A. Reducing total annual compensation costs for PATs because such spending, once it
reaches $25 million annually and a cumulative total of $100 million, allows the size of
PATs to be reduced from 4 persons to 2 persons

Which one of the following is NOT a factor in determining a company's action camera
sales and market share in a particular geographic region?
How a company's average wholesale price for the camera models it sells to retailers in
the region compares with the average wholesale prices of the camera models of
competing companies
The number of camera models in each company's line-up of camera offerings, the
length of the warranty period for each company's camera models, and the amount
companies spend for advertising
The amounts by which the company's credit rating and customer service rating are
above/below the regional average
Whether the size of the discounts off the regular average wholesale price a company
offers to retailers during weekly sales promotion campaigns is above/below the regional
average
The extent to which the number of week-long camera sales promotions a company has
annually is above/below the region' - Correct Answer ✔✔ The amounts by which the
company's credit rating and customer service rating are above/below the regional
average

Which of the following statements does NOT accurately describe how your company's
performance is scored on the Best-In-Industry Standard?
In order to receive a score of 100, a company must 1) be the best-in-industry performer
on EPS, ROE, stock price, and image rating, 2) achieve the investor-expected targets
for EPS, ROE, stock price appreciation, and image rating set by the company's Board of
Directors, and 3) have an A+ credit rating.
Your company will receive an annual best-in-industry score and a best-in-industry score
for all years completed
If ROE is given a weight of 20 pts by the instructor, a company with an industry-leading
ROE performance of 30% that happens to be 5 percentage pts above the investor-
expected ROE of 25% earns a score of 20 pts plus a 5pt bonus for achieving an ROE
that is 5 percentage pts above the investor-expected ROE.
The best-in-industry performer on EPS, on ROE, on Image Rating, and - Correct
Answer ✔✔ If ROE is given a weight of 20 pts by the instructor, a company with an
industry-leading ROE performance of 30% that happens to be 5 percentage pts above

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