GLO-BUS-Sample Quiz Questions

GLO-BUS-Sample Quiz Questions GLO-BUS-Sample Quiz Questions Which of the following is NOT one of the benefits of current year and cumulative expenditures for camera/drone product R&D? - ANS Reducing total annual compensation costs for PAT's because such spending once it reaches $25 million annually and a cumulative total of $100 million, allows the size of PAT's to be reduced from 4 persons to 2 persons Boosting a company's P/Q rating (the size of this benefit varies with the current and cumulative amounts spent and show up in the P/Q rating's at the beginning of the following year. Which of the following are the four geographic regions in which the company is currently selling its action cameras and UAV drones? - ANS Europe-Africa, Latin America, Asia Pacific, and North America The company has its camera and drone assembly facilities ? - ANS Taiwan 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? - ANS The amounts by which the company's credit rating and customer service rating are above/below the regional average Which of the following statements about your company's assembly operations for cameras and drones is FALSE? - ANS Cameras and drones are both assembled by 4-person PATs, however installation of robotic upgrades to camera drone workstations permits the size of PAT's to be cut to 3 person Which of the following is NOT accurate as concerns the online retailers of unmanned aerial view drones and or the buyers of unmanned aerial view drones? - ANS Potential buyers pay little attention to the search engine advertising they encounter when browsing for information about UAV drones, and their decisions ultimately purchase this or that brand are unaffected by these ads. When two brands of drones have slightly different prices and P/Q ratings (and all other buyer considerations are on balance, an even trade-off between the two brands ) then a bigger percentage of buyers in North America and Europe-Africa (as compared to the Asia Pacific and Latin America Regions will disregard which brand has the higher P/Q rating and purchase the lower price brand Which of the following statements about crafting a strategy to be competitively successful in the markets for action cameras and drones IS true? - ANS Very often the most appealing competitive approach a company can employ is a "more value for the money" strategy (for example: selling 8-star cameras and drones at lower prices than other 8-star brands) where your competitive advantage is an ability to incorporate "upscale" product attributes with high buyer appeal at lower costs than rivals and thereby underprice rival brands of cameras and drones having comparable attributes and P/Q ratings Which of the following statements does NOT accurately describe how your company's performance is scored on the Best-in Industry standard? - ANS If EPS gives an instructor-assigned weight of 20 points, a company with an industry leading EPS performance of $5.00 (that is above investor -expected EPS of $3.70) gets a score of 20 points and a company with EPS of $3.00 (Which is 60% as good as they leader's of $5.00) gets a score of 12 points (60% of 20 points) If image Rating is given a weight of 20 points by your instructor, a company with an industry-leading Image Rating of 80 (10 points above the investor expected rating of at least 70) earns a score of 20 points. If ROE is given a weight of 20 points by your instructor a company with an industry-leading ROE performance of 30% that happens to be 5% points above the investor expected ROE at 25% earns a score of 20 points plus 5 point bonus for achieving an ROE that is five percentage points above the investor expected ROE The factors that affect the productivity of Camera PAT's and drone PAT's include? - ANS How the total compensation packages (not including overtime pay) of camera/drone PAT members compare to the all-company average compensation levels and the amount a company spends annually per camera/drone PAT on training and productivity-enhancing assembly methods 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 factors that affect a company's P/Q Rating include? - ANS The caliber of core components, a 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 Which of the following does NOT have a bearing in determining a company's action camera sales and market share in a particular geographic region? - ANS The P/Q ratings of the various brands of UAV drones offered for sale in the region The factors that affect the p/Q rating of a company's action cameras does NOT include? - ANS The color and weight of camera body The factors that affect a company's P/Q rating for UAV drones do NOT include? - ANS A company's cumulative spending on product advertisement Which of the following is NOT accurate as it concerns the retailers and buyers of action capture cameras? - ANS People interested in purchasing a wearable action camera to record videos of their activities do not research to educate themselves about features, performance, and prices of the various brands and models. Which of the following are three factors used to determine a company's credit rating? - ANS its current ratio, its debt to equity ratio, and its interest coverage ratio Which of the following currencies are NOT involved in affecting the revenues your company receives on shipments of action-cameras and UAV drones to buyers in the four-geographic regions where it does business? - ANS Europe-Africa euro- rands Which one of the following is NOT a factor in determining a company's unit sales and market share for action-capture cameras - ANS Whether a company's credit rating is B or better and how many special utility features it has incorporated into its cameras The extent to which a company's online price for its action cameras at its website in each geographic region is above/below the all-company regional average online price A camera- maker's price competitiveness in a particular geographic region is determined by - ANS How much its average wholesale price to camera retailers in the region is above or below the regional average wholesale price. Whether its price is above or below the average price of all companies competing in that geographic region e. How favorably the company's price compares to the highest price being charged by a rival company in the same geographic region Which of the following is not accurate as it concerns the retailers and buyers of action capture cameras? - ANS People interested in purchasing a wearable action camera to record vedios of their activities do not research to educate themselves about features, performance, and prices of the various brands and models. Retailers typically carry anywhere from 2-4 brands of action capture cameras and stock only certain model of the brands they do carry, but in all 4 geographic markets there are around 20 full line action camera retailers that stock most of all brands and models Which of the following is not one of the benefits of current year and cumulative expenditures for camera/drone product R&D? - ANS Reducing total annual compensation cost for PAT's because such spending once it reaches $25 million annually and cumulative total of $100 million, allows the size of PAT's 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? - ANS 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? - ANS If ROE is given a weight of 20 points by your instructor, a company with an industry leading ROE performance of 30% that happens to be 5% points above the investor expected ROE of 25% earns a score of 20 points plus a 5 point bonus for achieving an ROE that is five percentage points above the investor expected ROE The factors that affect a company's P/Q rating for UAV drones include - ANS The caliber of the built-in GPS/Wifi/Bluetooth components, rotor performance and flight controller features/ performance, and body frame construction Which of the following does NOT accurately describe your company's camera/drone business and operations? - ANS 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 3250 cameras per hour. There is ample space at the cameras 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? - ANS 6-8% annually for years 6-10 and then grow at a slower 4-6% annual rate during the years 11-15 Which of the following is not accurate as concerns the online retailers of unmanned aerial views drones and/or the buyers of unmanned aerial view drones? - ANS The purchasers of drones in North America are less sensitive to cross brand differences in P/Q ratings than are dron purchasers in Latin America, rather, the biggest factor affecting the purchases decisions of North America Drone buyers are the retail prices being charged for the various brands of UAV drones Which of the following components of the compensation package for members of camera/drone PAT's? - ANS Annual base wage, assembly quality incentive ($ per unit assembled divided equally among PAT members), year end bonus for perfect attendance, and the dollar cost of a PAT member's fringe benefit package! Which of the following statements about crafting a strategy to be competitively successful in the markets for action cameras and drones is not true? - ANS The most powerful strategy and competitive approach a company can employ is most often one of differentiating your company's cameras/drones from rival rands based on such attributes as product performance and quality, number of models, warranties, and other competitive factors that matter a lot to buyers and thereby outcompeted rivals with a product offering that has greater overall appearance to a highly profitable number of buyers. Which of the following is NOT accurate as concerns the retailers and buyers of action capture cameras? - ANS The buyers of action cameras in Latin America and Asia pacific region are more sensitive to cross brand differences in P/Q ratings than are action camera buyers in North America and Europe-Africa Which of the following statements about your company's assembly operations for cameras and drones is true? - ANS Shifting to robot assisted assembly results in added annual maintenance costs per workstation because robots require monthly maintenance and, also from time to time, breakdown and have to be repaired The factors that affect the productivity of Camera/Drone PAT's include - ANS The size of assembly quality incentives paid to PATs, the size of th fringe benefits package, how the total compensation packages (not inlcuding overtime pay ) of PAT members compare to the all company average compensation levels, and the amount a company spends annually per camera/drone PAT on training and productivity enhancing assembly methods. the size of incentive bonuses to workers, base pay increases, perfect attendance bonuses, the size of the fringe 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 factors that affect the productivity of both camera PAT and drone PAT's include - ANS The size of the assembly quality incentives paid to camera/drone PATs, how favorable the size of a company's total compensation package (not including overtime pay) per camera/drone PAT member compare against the camera/drone all company average and changes in the number of camera/drone models that have to be assembled Which of the following is NOT one of the five measures on which a company's performance is judged/scored? - ANS Revenues Which of the following currencies are involved in affecting the revenues your company receives on shipments of action cameras and UAV drones to buyers in the four geographic regions, where it does business? - ANS Singapore dollars, Euros, US Dollars, Brazilian Real, and Taiwan Dollars Which of the following is one of the factors that determines a company's credit rating? - ANS its interest coverage ratio Officials at Global Community Bank, under terms of its long term banking agreement with the company, have agreed to lend the company additional monies should you elect to use the debt to help finance growth and other financial needs; the interest rate that will be charged on such loans is tied to - ANS The company's current credit rating, going rates of interest in world financial markets and the payback period (1, 5, 10 years) Whether a maker of action cameras is charging an average wholesale price for its models that makes it price competitive with the prices being charged by rival companies in the region is determined by? - ANS How far its average wholesale price in the region is above or below the regional average wholesale price The factor that affect the P/Q rating of a company's action cameras do not include? - ANS The size of assembly quality incentives it pays to camera PAT members, warranty claim rates, or the percentage of camera assembly workstations that utilize robot assisted assembly methods. The factors that affect a company's P/Q rating for UAV drones do not include? - ANS The number of supplies the company utilizes for its purchases of drone materials and components Which of the following statements does not accurately describe how your company's performance is scored on the investor expectations standard? - ANS Beating one of the five investor expectation targets results in a bonus award of 1% for each 1% of the annual target is exceeded (up to a maximum of 40%), thus, if achieving the EPS target is worth 20 points, a company can earn a score of 28 points by beating the annual EPS target by 40% or more Which of the following is NOT accurate as concerns the retailers and buyers of action-capture cameras? - ANS Retailers in any geographic region can order action cameras one business day and receive them 5 business days later. Which of the following is NOT accurate as concerns the retailers of unmanned aerial view drones and or the buyers of unmanned aerial view drones? - ANS The purchasers of drones in Latin America and the asia-pacific regions are less sensitive to cross-brand price differences than are drone purchasers in North America and Europe-Africa; rather, the biggest factor affecting their purchase decisions are the P/Q rating of the various brands of UAV drons The benefits of current and cumulative expenditures for camera/drone product R&D do not include which of the following? - ANS Reducing annual maintenance costs for installed camera/drone workstations (this benefit show up at the beginning of the following year) Which of the following is one of the factors that determine a company's credit rating? - ANS Its Debt to equity Ratio Which of the following is NOT included among the five measures on which a company's performance is judged/scored? - ANS Revenues and customer satisfaction Which of the following statements about crafting a strategy to be competitively successful in the markets for action cameras and drones is true? - ANS Because GLO-BUS has not built in Bias that favors any one strategy or approach to competing over all the others, there are multiple strategic approaches and sets of competitive efforts/actions that, if properly designed and well executed, are capable of producing competitive success in the global market for cameras/drones provided they are not overpowered or thwarted by even more potent strategic approaches and competitive actions/efforts that are well executed by rival companies A camera-maker's price competitiveness in a particular geographic region is determined by - ANS How much its average wholesale price to camera retailers in the region is above or below the regional average wholesale price. The factors that affect the P/Q rating of a company's action cameras include? - ANS Image sensor size, the size of the LCD display screen, the image quality of the videos and still pictures, and the number of photo modes for videos and still pictures Which of the following statements about your company's assembly operations for cameras and drones is FALSE - ANS Cameras are assembled by 4- person PAT's while drones are assembled by 5-person PAT's due to the added number of components and more complicated assembly methods Which of the following ARE components of the compensation package for members of production assembly teams? - ANS 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 company's present assembly plant has sufficient space for - ANS 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 - ANS 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 - ANS its credit rating. Which the following are not factors in determining a company's credit rating? - ANS 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 - ANS 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 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? - ANS 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? - ANS 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 - ANS import duties imposed by the countries to which the cameras are shipped and the effects of fluctuating exchange rates. The decisions that company co-manages make each year are organized around - ANS 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 - ANS hiring "temporary" PATs, the use of overtime, and outsourcing assembly to contact assemblers. Which of the following is not an accurate description of the market for digital cameras? - ANS 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? - ANS 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? - ANS 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? - ANS 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? - ANS 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 Taxes (13,650), Taxes (4,095), Net Income (9,555). Based on the above data, which of the following statements is false? - ANS Delivery costs are 2.8% of revenues and represent the company's smallest cost component. One of the benefits of pursuing a strategy of social responsibility and corporate citizenship is - ANS an enhanced image rating, provided company spending for socially responsible activities is meaningful and is sustained over a multi-year period. Which of the following is NOT an action company co-managers can take to boost a sub-par ROE? - ANS Issue additional shares of stock and use the proceeds to pay down the debt outstanding on the company's line of credit. Which one of the following actions is usually a dependable and appealing way for managers to try to boost their company's EPS? - ANS Achieve a differentiation-based competitive advantage over rivals in both the entry-level and multi-featured camera segments that company managers are savvy enough to sustain; as the market demand for digital cameras grows worldwide and the company exploits its competitive advantage to win additional sales, the profit margins from a growing sales volume of entry-level and multi-featured digital cameras typically results in increase in EPS. The industry-low, industry-average, and industry-high benchmarks for camera costs and operating profits on pp. 5-6 of each issue of the GLO-BUS Statistical Review. - ANS Are worth careful scrutiny by the managers of all companies because when the bench-marking data signals that a company's costs/operating profits for one or more of the benchmarks are clearly out-of-line (or unappealing), managers are well advised to take corrective action in the next decision round. Which of the following sets of actions are unlikely to help a company achieve a differentiation-based competitive advantage over some/many of its rivals that are marketing entry-level cameras? - ANS Actions to raise the base pay of PAT members by 10% or more each year, charging prices for entry-level cameras that are $5 or more above any other company in that industry in all four geographic regions, and spending more on new product R&D per entry-level camera that is the highest in the industry (as reported on p. 5 of each issue of the GLO-BUS Statistical Review.) Which one of the following actions does NOT result in higher levels of PAT labor productivity in assembling cameras? Avoiding contracting the assembly of cameras to outside suppliers/contractors. - ANS Avoiding contracting the assembly of cameras to outside suppliers/contractors. Which of the following actions does not help make a company's brand of multi-featured cameras more competitive and attractive to buyers vis-a-vis the brands of rival firms? - ANS Increasing total compensation of PAT members to boost their productivity in assembling multi-featured cameras. Which of the following is an action company co-managers should seriously consider in trying to improve the company's credit rating? You may wish to consult the discussion of the credit rating that appears on the Help screen for the Comparative Financial Performance page of the GSR in answering this question. - ANS Issue additional shares of stock and use the proceeds to pay down the loans on the company's line of credit. In which one of the following situations/circumstances is it most reasonable for a company to consider shifting away from pursuit of a strategy to strongly differentiate its multi-featured cameras from the multi-featured camera brands of rival companies and sell them at a premium price? - ANS When the market for high-end multi-featured cameras is crowded with companies using more or less copycat differentiation strategies to try to out-compete one another, thus making it difficult for any of these companies to earn attractively high profits. Which one of the following is an attractive and effective way to reduce the production costs of multi-featured cameras and help put the company in better position to achieve a low-cost competitive advantage over rival companies based on lower production and marketing costs per multi-featured camera sold? - ANS Striving to keep the labor costs per camera assembled in-house to amounts that are well below the industry-average benchmark (as reported on p. 5 of each issue of the Glo-BUS Statistical Review). f a company is being out-competed by various rival companies in the Europe-Africa market for multi-featured cameras and consequently has an unappealing low sales volume and market share in Europe-Africa, then company managers should - ANS explore correcting most or all of the company's competitive weaknesses (shown at the bottom of the latest Competitive Intelligence Report for the Europe-Africa region); in addition, managers should initiate actions that they believe will result in the company having at least two important competitive strengths vis-a-vis its Europe-Africa rivals in the upcoming decision round. The most important/essential results from the latest decision round that company managers need to review/study in order to guide their strategic moves and decisions to improve their company's competitiveness and rank among the top-performing companies in the upcoming decision round are - ANS the Quarterly Snapshot data in the top sections of the Competitive Intelligence Report that shows each company's competitive efforts (advertising, tech support, prices, P/Q ratings, promotions, models available, and so on) in each geographic region. A company's managers should give serious consideration to changing from a low-cost/low price strategy for multi-featured cameras to a different strategy in the multi-featured camera market when - ANS so many other rival companies are marketing low-priced multi-featured cameras that intensive competition in the low-end multi-featured camera segment makes it quite difficult for every company competing for buyers of low-priced multi-featured cameras to capture big enough revenues and global market share to earn attractively large profits selling low-priced multi-featured cameras.