COMP XM
Segment/Perf/Size - correct answer -Thrift +-0.5 -0.5
Core +0.8 -0.8 Nano +0.8 -1.1
Elite +1.1 -0.8
*THE ONLY PRODUCT THAT DOES NOT MOVE, IT'S THE PRODUCT IN LOW END SEGMENT. LEAVE THIS PRODUCT AT 3.0 AND 17.0*
You want to increase
performance and reduce size as much as you can without the revision date reaching July.
Prices between each round - correct answer -Don't change the price!
Price for each product - correct answer -Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
Automation - correct answer -increase automation by 1 point each round in each product
get low end up as high as you can
What is your target leverage and how do you get there? - correct answer -borrow money until you hit 2.2 and get 60 days of working capital (will have to pay dividends)
To calculate leverage, - correct answer -divide total assets by total equity. This number will represent the number of dollars of assets owned per dollar invested by equity holders. If a company has leverage of four, that means they have $4 in debt for every $1 in equity.
sales and promo budgets (all four rounds) - correct answer -For all products
Round 1: 2,000
Round 2: 1,500
Round 3: 1,400
Round 4: 1,400
Recruiting hours and spend - correct answer -$5,000
80 hours
TQM - correct answer -$1,500 first round
$1,500 second round
$1,000 third round
$0 fourth round
adding capacity - correct answer -a couple hundred each round
best date for new products to come out - correct answer -June 26-28th
forecasting shift capacity - correct answer -forecast next year's demand directly This year's potential market share * next year's demand is a good starting point, but then make judgment adjustments as necessary (e.g. is my product improving, are my competitors improving, etc.)
use 200% of plant utilization you must calculate capacity _____ rounds ahead - correct answer -2 rounds
MTBF - correct answer -Set to maximum amount
Steps for getting a good finance position - correct answer -Goals is to get a cash position of $5,000 in Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
when to retire stock - correct answer -when you have a good cash position and you have some money left over to purchase stock back from the market
when to give out dividends - correct answer -it's for when you have cash leftover in capital investment to give to your
shareholder.
when to retire long-term debt - correct answer -it's for when you want to pay your debt early (This usually decreases your interests expense)
Buy/Sell Capacity Strategy - correct answer -You want to keep 2 nd Shift Production % between 20% and
50%
If you have less than 20%; you have to sell capacity
If you more than 50% you have to buy capacity After you make you decisions on production, check how much capital investment you have; If you have capital investment leftover, try to spend it in Automation or Capacity
Segment/Perf/Size - correct answer -Thrift +-0.5 -0.5
Core +0.8 -0.8 Nano +0.8 -1.1
Elite +1.1 -0.8
*THE ONLY PRODUCT THAT DOES NOT MOVE, IT'S THE PRODUCT IN LOW END SEGMENT. LEAVE THIS PRODUCT AT 3.0 AND 17.0*
You want to increase
performance and reduce size as much as you can without the revision date reaching July.
Prices between each round - correct answer -Don't change the price!
Price for each product - correct answer -Nano - max
Elite - max
Core - a few bucks below
Thrift - a few bucks below
Automation - correct answer -increase automation by 1 point each round in each product
get low end up as high as you can
What is your target leverage and how do you get there? - correct answer -borrow money until you hit 2.2 and get 60 days of working capital (will have to pay dividends)
To calculate leverage, - correct answer -divide total assets by total equity. This number will represent the number of dollars of assets owned per dollar invested by equity holders. If a company has leverage of four, that means they have $4 in debt for every $1 in equity.
sales and promo budgets (all four rounds) - correct answer -For all products
Round 1: 2,000
Round 2: 1,500
Round 3: 1,400
Round 4: 1,400
Recruiting hours and spend - correct answer -$5,000
80 hours
TQM - correct answer -$1,500 first round
$1,500 second round
$1,000 third round
$0 fourth round
adding capacity - correct answer -a couple hundred each round
best date for new products to come out - correct answer -June 26-28th
forecasting shift capacity - correct answer -forecast next year's demand directly This year's potential market share * next year's demand is a good starting point, but then make judgment adjustments as necessary (e.g. is my product improving, are my competitors improving, etc.)
use 200% of plant utilization you must calculate capacity _____ rounds ahead - correct answer -2 rounds
MTBF - correct answer -Set to maximum amount
Steps for getting a good finance position - correct answer -Goals is to get a cash position of $5,000 in Decembers
Step 1: get as much issue stock as possible
Step 2: get as much issue long-term debt
Step 3: get whatever you need left from borrow
when to retire stock - correct answer -when you have a good cash position and you have some money left over to purchase stock back from the market
when to give out dividends - correct answer -it's for when you have cash leftover in capital investment to give to your
shareholder.
when to retire long-term debt - correct answer -it's for when you want to pay your debt early (This usually decreases your interests expense)
Buy/Sell Capacity Strategy - correct answer -You want to keep 2 nd Shift Production % between 20% and
50%
If you have less than 20%; you have to sell capacity
If you more than 50% you have to buy capacity After you make you decisions on production, check how much capital investment you have; If you have capital investment leftover, try to spend it in Automation or Capacity
