CapSim Word Study Guide 1.
When When openin opening g the Exce Excell versio version n of Capst Capstone one®, ®, you you should should do what what to Macr Macros? os? a. Enable b. isable c. Engage d. isar! e. oes not !atter
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#f there there are two two identical identical products, products, one one that that has 1$$% access accessibil ibility ity and and one that has has $% access accessibil ibility, ity, a. the one one with with $% acce accessi ssibil bility ity will will not not sell sell at all all becau because se consu consu!er !erss can&t can&t find find it. it. b. the product with 100% accessibility will outsell the other 2 to 1 providing all other attributes are identical. c. the one with with $% access accessibil ibility ity will not sell at all all because because consu!ers consu!ers do not not 'now 'now of it. it. d. the produc productt with with $% accessibil accessibility ity will will only only sell sell after after all all other other produc products ts have have sold sold in that seg!ent. seg!ent. e. the produc productt with 1$$% accessibil accessibility ity will will outsel outselll the other other ( to 1 provid providing ing all all other other attribute attributess are ident identical. ical.
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)ow )ow !any !any pro produ duct ctss does does eve every ry tea! tea! star startt wit with? h? a. *ne product b. +our products c. en pr products d. ive products e. -one of the above
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What What are are thr three ee of the the fiv fivee /eg /eg!e !ent nts? s? a. !raditional" #ow End" $erormance b. raditional, 0ow End, End, Cost End c. 0ow End, nd, )i )igh End, End, !id !iddle dle End End d. Median, /ie, )i )igh End e. 2erfor!a r!ance, /i /ie, Co Cost
3.
4 seg seg!e !ent nt !an !anager ager&s &s tas' tas' is to a. deci decide de whic which h prod produc ucts ts ente enterr the the seg! seg!en ent. t. b. veriy the products entering and leaving a segment" the margin potential or those products" capacity level and the distribution system as compared to competitors. c. review review !argin !argin potent potential ial for for each each seg!ent seg!ent and and evalua evaluate te the capacity capacity for for each seg!ent seg!ent co!pared co!pared to the the co!petition. d. evaluate evaluate the capacity capacity for each each seg!ent seg!ent based on total total de!and de!and and and the co!peti co!petitor&s tor&s capacity5 capacity5 evaluat evaluatee the !argin potential of all products and the distribution syste!s. e. none of the above.
6.
What is the the differenc differencee between between the the !ar'et !ar'et seg!en seg!ents ts at the begin beginning ning of the the round round to the final final round? round? a. hey hey all all drif driftt at an aver average age rate rate of .75 down down and and to to the the righ right. t. b. !he ine cuts overlap in the beginning and in year &' only the rough cuts overlap. c. he fine fine and and rough rough cuts cuts overlap overlap in the the beginni beginning ng and and by round 8 neither neither the fine fine nor nor rough rough cuts cuts overla overlap. p. d. he tradit traditiona ionall and and low low seg!ent seg!ent rough rough cuts cuts overla overlap p but but all all the re!aining re!aining seg!en seg!ents ts do do not. not. e. he )igh, )igh, radition raditional al and and 0ow 0ow seg!ent seg!ent rough rough cuts overlap overlap but but all all the re!aining re!aining seg!ents seg!ents do do not. not.
7.
#n ord order er for for a tea! tea! to to win win at Cap Cap/i /i!, !, the they y nee need d to a. have have a proact proactive ive strate strategy gy and contin contingen gency cy plan plan in in plac place. e. b. have a contingency plan, plan, a proactive strategy, open co!!unications co!!unications and the ability ability to !a'e ad9ust!ents in a dyna!ic !ar'et. c. !onitor !onitor the the other other tea!s tea!s and and then then head head into into the the areas that are not not being being used used by the other other tea!s. tea!s. d. have a proactive strategy" contingency plan" open communications" strong (nowledge o the industry and have a strong understanding o the analyst report. e. have a strategy strategy in in place place and and be ready ready to to co!plete co!pletely ly change change it in round if it isn&t isn&t wor'in wor'ing. g.
8.
4fter you you have have uploaded uploaded your your decisio decisions ns to the the website website,, you can can change change your your official official decis decisions ions as as !any ti!es ti!es as as you want prior to the processing date and ti!e of the round. a. !rue b. +alse
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*nce you you upload upload your your officia officiall decisions decisions during during a round, round, how !any ti!es ti!es can can you change change the! before before the the end of the round? a. $ b. 1 c. " d. 3 e. )s many times as you want
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What trend trend can be explici explicitly tly observed observed in in the industry industry in which which your your co!pany co!pany is operating? operating? a. More More and and !ore !ore produc products ts are are sold sold dire directl ctly y to the the priva private te end end consu consu!er !er.. b. 2roducts beco!e !ore and !ore expensive. expensive. c. $roducts become smaller and smaller. d. Cust Custo! o!er erss ssho how w les lesss and and les lesss b bra rand nd loya loyalt lty. y. e. 4ll of the above.
11.
he econo! econo!ic ic environ! environ!ent ent for for this this si!ulati si!ulation on ga!e ga!e will will include include a. a favorab favorable le environ environ!ent !ent featuring featuring li!ited li!ited growth growth,, high high inflati inflation, on, and and reason reasonable able interest interest rates. rates. b. a avorable environment eaturing modest growth" low inlation" and reasonable interest rates. c. a highly highly variable variable environ!en environ!entt featuring featuring signi significant ficant changes changes in growth growth,, inflation, inflation, and and drastic drastic fluctu fluctuation ationss in interest rates. d. a constant constant enviro environ!ent n!ent featuring featuring !easur !easurable able growth growth,, constant constant inflat inflation ion rates, rates, and constant constant inter interest est rates. rates. e. econ econo! o!ic ic down downtu turn rn and and othe otherr sur surpr pris ises es..
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M;+ is !eas M;+ !easur ured ed in a. day incre!ents. b. hour increments. c. !inute incre!ents. d. ($
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Custo!ers Custo!ers that that want low prices prices and and are willing willing to sacrific sacrificee !iniaturia !iniaturiation tion and and perfor!ance perfor!ance are in the the a. traditional seg!en !ent. b. high End seg!ent. c. low End segment. d. perf erfor!anc ance seg!ent. e. sie seg!ent.
1.
Custo!ers Custo!ers that that want want s!all produ products cts and are are willing willing to sacrif sacrifice ice perfor!an perfor!ance ce are in the the a. traditional seg!en !ent. b. high End seg!ent. c. low End seg!ent. d. perf erfor!anc ance seg!ent. e. si*e segment.
13.
#n Capst Capstone one=, =, prici pricing ng stan standar dards ds are are set set by> by> a. Customers +,ar(et Segment-. b. Co!petitors. c. ou, h he Co!pany. d. a ran range ge of the the pri price cess fro fro! ! all all ea! ea!s. s. e. @ando! /election.
8.
4fter you you have have uploaded uploaded your your decisio decisions ns to the the website website,, you can can change change your your official official decis decisions ions as as !any ti!es ti!es as as you want prior to the processing date and ti!e of the round. a. !rue b. +alse
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*nce you you upload upload your your officia officiall decisions decisions during during a round, round, how !any ti!es ti!es can can you change change the! before before the the end of the round? a. $ b. 1 c. " d. 3 e. )s many times as you want
1$.
What trend trend can be explici explicitly tly observed observed in in the industry industry in which which your your co!pany co!pany is operating? operating? a. More More and and !ore !ore produc products ts are are sold sold dire directl ctly y to the the priva private te end end consu consu!er !er.. b. 2roducts beco!e !ore and !ore expensive. expensive. c. $roducts become smaller and smaller. d. Cust Custo! o!er erss ssho how w les lesss and and les lesss b bra rand nd loya loyalt lty. y. e. 4ll of the above.
11.
he econo! econo!ic ic environ! environ!ent ent for for this this si!ulati si!ulation on ga!e ga!e will will include include a. a favorab favorable le environ environ!ent !ent featuring featuring li!ited li!ited growth growth,, high high inflati inflation, on, and and reason reasonable able interest interest rates. rates. b. a avorable environment eaturing modest growth" low inlation" and reasonable interest rates. c. a highly highly variable variable environ!en environ!entt featuring featuring signi significant ficant changes changes in growth growth,, inflation, inflation, and and drastic drastic fluctu fluctuation ationss in interest rates. d. a constant constant enviro environ!ent n!ent featuring featuring !easur !easurable able growth growth,, constant constant inflat inflation ion rates, rates, and constant constant inter interest est rates. rates. e. econ econo! o!ic ic down downtu turn rn and and othe otherr sur surpr pris ises es..
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M;+ is !eas M;+ !easur ured ed in a. day incre!ents. b. hour increments. c. !inute incre!ents. d. ($
1(.
Custo!ers Custo!ers that that want low prices prices and and are willing willing to sacrific sacrificee !iniaturia !iniaturiation tion and and perfor!ance perfor!ance are in the the a. traditional seg!en !ent. b. high End seg!ent. c. low End segment. d. perf erfor!anc ance seg!ent. e. sie seg!ent.
1.
Custo!ers Custo!ers that that want want s!all produ products cts and are are willing willing to sacrif sacrifice ice perfor!an perfor!ance ce are in the the a. traditional seg!en !ent. b. high End seg!ent. c. low End seg!ent. d. perf erfor!anc ance seg!ent. e. si*e segment.
13.
#n Capst Capstone one=, =, prici pricing ng stan standar dards ds are are set set by> by> a. Customers +,ar(et Segment-. b. Co!petitors. c. ou, h he Co!pany. d. a ran range ge of the the pri price cess fro fro! ! all all ea! ea!s. s. e. @ando! /election.
16.
#n the @ough Cut buying buying stage, stage, Areliabil AreliabilityB ityB is is expressed expressed in ter!s ter!s of> of> a. ,ean !ime etween ailure. b. how long the product product will last. c. years. d. !onths. e. Mean i i!e ;e ;efore +ailure.
17. 17.
M;+ !eas M;+ !easur ures es what what?? a. 2rice b. 2erfor!ance c. /eliability d. Size e. Market Segment
18.
he a. b. c. d. e.
two two characteris characteristics tics that the perceptua perceptuall !ap evaluates evaluates are $erormance and Si*e. 2erfor!ance and 2rice. /ie and 2rice. @eli @eliab abil ilit ity y and and 2erf 2erfor or!a !anc nce. e. none of the above.
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he he a. b. c. d. e.
2er 2erce cept ptua uall Map Map is a mar(eting tool used to compare products against customer perceptions. a !ar'eting tool used to co!pare co!pare perfor!ance against sie. a !ar'e !ar'etin ting g too tooll used used to to co!pa co!pare re reli reliabi abilit lity y again against st pric price. e. a !ar' !ar'eti eting ng tool tool used used to co!par co!paree age age agains againstt pos positi ition. on. a !ar' !ar'et etin ing g tool tool use used d to co! co!pa pare re ti! ti!ee agai agains nstt !oti !otion on..
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he seg!ents seg!ents all all drift drift to the lower lower
"1.
*ver ti!e, ti!e, the the seg!ents seg!ents will will drift drift in which direction direction on the 2erceptual 2erceptual Map? Map? a. up5 left b. up5 right c. down5 left d. down' right e. will will re!a re!ain in stil stilll and and cons consta tant nt
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When trac'ing trac'ing !ar'et !ar'et seg!ents seg!ents on on the perfor!ance perfor!ance and and sie perceptua perceptuall !ap, which which seg!ent seg!ent !oves or Adrifts AdriftsBB the slowest? a. #ow b. raditional c. /ie d. 2erfor!ance e. )igh
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What happens happens to a product product priced priced at 1 above above or below the the seg!ent seg!ent guidelin guidelinee when a seg!ent&s seg!ent&s produc productt supply supply outstrips de!and? a. #t los loses "3% of its its appe appeal al.. b. #t loses 1$% of its appeal. appeal. c. t loses 20% o its appeal. appeal. d. #t los loses 13% of of its its appe appeal al.. e. -one of the above.
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What&s What&s the the !easu !easure re for for produc productt reliab reliabili ility? ty? a. @etu @eturn rn rate ratess o off pro prod ducts ucts sold sold b. Custo!ers& happiness state!ents state!ents c. Epected time a product lasts lasts d. 2rice e. 4ll of the above
"3.
4t what dollar dollar a!ount a!ount above the the seg!ent seg!ent guideli guidelines nes is all all consu!er consu!er appeal appeal lost? lost? a. ( b. 3 c. 1$ d. "$ e. -one of the above
"6. "6.
he he a. b. c. d. e.
"7. "7.
M;+ in M;+ in the the seg seg!e !ent ntss ssho houl uld d be be a. M;+ M ;+ D2er D2erfo for! r!an ance ce F M; M;+ + D)ig D)igh h End End. . b. M;+ D0ow End F M;+ D)igh End. End. c. M; M ;+ D0o D0ow w End End G M M;+ ;+ D/i D/ie e.. d. a, b, and c. e. only a and c.
"8.
Which of the the follow following ing are not not consid considered ered in the the +ine +ine Cut? Cut? a. 2ositioning b. )utomation c. 4ge d. @eliability e. 2rice
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#nsi #nside de each each fine fine cut cut cir circl cle, e, a. segments have an ideal spot where demand is at its highest. b. product seg!ents strive strive to be in the center. c. prod produc uctt seg! seg!en ents ts str striv ivee to be be near near the the bou bound ndar arie ies. s. d. de!and de!and is is at its its highe highest st as long long as as produc productt seg!en seg!ents ts are are within within the the circl circle. e. e. none of the above.
($. ($.
he he rad radit itio iona nall idea ideall spot spot is is a. near near the the upp upper er
pri price cess in in eac each h seg seg!e !ent nt drop by 0.30 each year. drop by 1.$$ each year. incr increa ease se by $ $.3$ .3$ eac each h yea year. r. vary vary depe depend ndin ing g upo upon n rela relati tive ve !ar' !ar'et et de!an de!and. d. re!a re!ain in cons consta tant nt in each each seg! seg!en ent. t.
(1.
#ncreasing a product&s reliability will result in which of the following changes to production costs? a. 0ower !aterial cost b. 4igher material cost c. )igher labor costs d. 0ower labor costs e. @educing M;+ has no effect on costs of production
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4ge a. b. c. d. e.
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What happens to a product&s 2erceived 4ge when it is repositioned in @H? a. t is reduced by 30%. b. #t is reduced by ((.(%. c. #t is reduced by "3%. d. #t is reduced by 1$%. e. #t re!ains the sa!e.
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he a. b. c. d. e.
(3.
4t which point does the perceived age of a traditional product pea'? a. 2 b. 1.3 to ".3 years c. 7 d. $.3 to " years e. whenever it&s positioned
(6.
2ricing plays a role a. when repositioning a product. b. in the rough cut stage of the purchase decision. c. in neither stage of the purchase decision. d. in the fine cut stage of the purchase decision. e. in both b and d.
(7.
What are the top buying criteria that low end custo!ers !ost value? a. 4ge b. $rice c. Iuality d. 2ositioning e. i!e
(8.
Which of the following is not a type of !ar'et seg!ent in Cap/i!? a. 2erfor!ance b. raditional c. Standard d. /ie e. -one of the above
refers to> #nventory 4ge. $roduct )ge. Mar'et /eg!ent 4ge. all of the above. none of the above.
preferred product perceived age for each sector pea's at> one year for high end and five years for low end. one year for high end and three years for low end. *ero years or high end and seven years or low end. ero years for high end and three years for low end. each seg!ent wants a perceived age of ero.
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he top two buying criteria for each seg!ent is> a. 2ositioning for low end and 2rice for high end. b. @eliability for low end and 2erfor!ance for high end. c. 2rice for low end and 2erfor!ance for high end. d. $rice or low end and $ositioning or high end. e. 2ositioning for low end and M;+ for high end.
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0ow ech custo!ers e!phasie buying criteria in which order? a. $rice" )ge" $ositioning" /eliability b. 4ge, @eliability, 2rice, 2ositioning c. 2ositioning, 4ge, 2rice, @eliability d. 2rice, 2ositioning, 4ge, @eliability e. 2rice, @eliability, 2ositioning, 4ge
1.
Each seg!ent places a. a different e!phasis on the 8 buying criteria. b. a dierent emphasis on the 5 buying criteria. c. so!e e!phasis on price and so!e e!phasis on reliability. d. so!e e!phasis on perfor!ance and so!e on sie. e. both c and d.
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Which !ar'et seg!ent places the !ost i!portance on price? a. raditional b. 2erfor!ance c. #ow End d. /ie e. )igh End
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What is the !ost i!portant criterion to a A0ow End /eg!entB custo!er? a. $rice b. 4ge c. M;+ d. 2ositioning e. 2erfor!ance
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#f you are !ar'eting to )igh End custo!ers, which criteria are !ost i!portant to the! in order of i!portance? a. 2ositioning, 4ge, 2rice, M;+ b. 2rice, 4ge, M;+, 2ositioning c. 4ge, 2rice, 2ositioning, M;+ d. M;+, 2ositioning, 4ge, 2rice e. $ositioning" )ge" ,!" $rice
3.
Which one is not an area in which Capstone® separates co!pany activities? a. Mar'eting b. 2roduction c. @H d. #ogistics e. IM
6.
he following represent core co!pany activities that !ust be addressed each year except> a. @esearch and evelop!ent. b. Mar'eting. c. +inance. d. #abor 6egotiations. e. 2roduction.
7.
Which of the following is not addressed by @H? a. 4ge b. @eliability c. -u!ber of products in each seg!ent d. 2lace!ent of each product inside a !ar'et seg!ent e. Wor(orce Complement
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#n the Mar'eting 2lan, @esearch and evelop!ent addresses all but the> a. place!ent of each product inside a !ar'et seg!ent circle. b. nu!ber of products in each seg!ent. c. age of your products. d. automation o assembly lines. e. reliability of each product.
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When an @H effort started in "$$1 co!pletes on /epte!ber 13, "$$", the product revision 'ic's in a. *ctober 1, "$$". b. immediately upon completion. c. January 1, "$$(. d. @H has no effect on product revisions. e. /epte!ber 13, "$$(.
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he a. b. c. d. e.
31.
@H co!pletion ti!e can be di!inished a. by repositioning a product. b. the !ore a co!pany changes a product&s M;+. c. when several products are put into @H at the sa!e ti!e. d. when a company ta(es advantage o eisting technology. e. none of the above.
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@H co!pletion ti!e depends on a. nu!ber of pro9ects in @H. b. auto!ation rating. c. si!ilarity to existing products. d. sie of the product. e. a" b" and c.
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Which 4uto!ation rating reKuires the longest ti!e to reposition a product? a. 1 b. ( c. 7 d. : e. 10
3.
#n Capstone® a. the ter!s age and perceived age are not used interchangeably. b. the ter! M;+ !eans !ultiple transient business for!at. c. the terms age and perceived age are used interchangeably. d. all products will eventually have to be retired. e. none of the above.
relative cost of a product&s !aterial cost increases as> sie is increased. perfor!ance is decreased. ,! is raised. auto!ation stays the sa!e. all of the above.
33.
When a product is !oved to a new location on the 2erceptual Map, the 2erceived 4ge Dor 4ge is> a. not affected. b. doubled. c. divided in hal. d. tripled. e. other.
36.
Changing M;+ will> a. have no impact on $erceived )ge. b. increase 2erceived 4ge. c. decrease 2erceived 4ge. d. change 2erceived 4ge. e. is undeter!ined.
37.
@H pro9ects can drive a product&s> a. sie. b. age. c. reliability. d. perfor!ance. e. all o the above.
38.
#f your tea! decides to introduce a new product, when should capacity and auto!ation be purchased? a. wo rounds prior to product release b. 7ne round prior to product release c. he round of product release d. he round after product release e. 2urchase of capacity and auto!ation is not necessary for new product release
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#f you purchase production capacity and auto!ation> a. it is available i!!ediately. b. it is available in 6 !onths. c. it is available in the net year. d. it is available when you need it. e. none of the above.
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Mar'eting is concerned with things. What are they? a. 2rice, @eliability, 4ge, and 2roduct b. 2lace, 4ge, 2ro!otion, and 2roduct c. $rice" $lace" $romotion" and $roduct d. 2roduct, 2lace, 2ro!otion, and @eliability e. #nnovation, 2roduct, 2lace, and 2ro!otion
61.
4n increase in pro!otional budgets have> a. increasing returns over ti!e. b. level returns over ti!e. c. decreasing returns over time. d. decreasing then increasing returns over ti!e. e. increasing then decreasing returns over ti!e.
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2ro!otion efforts are sub9ect to a. econo!ies of scale. b. increasing returns. c. diminishing returns. d. pro!otion expenditure. e. custo!er awareness.
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What effect do increases in the 2ro!otion ;udget have on a product&s 4wareness? a. #ncreasing returns b. Constant returns c. 2roportionally increasing returns d. 8iminishing returns e. -one of the above
6.
4ssu!ing no additional product pro!otion, what percent of custo!ers, reached through last year&s !ar'eting ca!paign will carry over into the current year? a. ((% b. 3$% c. 9:% d. $% e. -one of the above
63.
)ow is the strength of the sales channel !easured? a. 4ccessibility on a scale of $ to 3$ b. )ccessibility on a scale o 0 to 100% c. 4ccessibility on a scale of 1 to 3$ d. 4ccessibility on a scale of 1 to 1$$% e. 4ccessibility on a scale of 1 to "3
66.
#f you drop your sales budget to ero, accessibility drops to $% in how !any years? a. 1 b. " c. ; d. e. 3
67.
#f your co!pany has a sales budget of ( !illion and drops it to ero, a. accessibility drops by 1 !illion every year. b. awareness drops to ero. c. accessibility drops to 0% in three years. d. sales will drop to ero. e. all of the above.
68.
4ll of the following are direct i!plications of hiring a second shift except> a. increased production capacity. b. paying higher wages to second shift. c. training costs. d. increased ,!. e. recruit!ent costs.
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)ow can asse!bly lines double their capacity? a. /peed up the production. b. )dd a second shit. c. ouble the !aterial. d. ;uild !ore asse!bly lines. e. 4sse!bly lines cannot be doubled.
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#f you increase auto!ation fro! ".$ to 3.$, the cost is> a. 12 per unit o capacity. b. 13 per unit of capacity. c. : per unit of capacity. d. 6 per unit of capacity. e. Cannot deter!ine with this infor!ation.
71.
What is one drawbac' of increasing auto!ation? a. !he product re
move repositioning. b. *perating second shift beco!es !ore expensive. c. 4uto!ation causes large leaps in repositioning. d. 4uto!ation slows production capability. e. #t reKuires !ore e!ployees for the production line.
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#f you reduce auto!ation in the production co!ponent of Mar'eting, you will> a. slow down @H designs. b. incur a retooling cost. c. lose the ga!e. d. none of the above.
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#f you want to add 3$$,$$$ units of capacity to an asse!bly line with an auto!ation rating of 3, how !uch will it cost? a. 1,"$$,$$$ b. 1,($$,$$$ c. 1;"000"000 d. ",$$$,$$$ e. "6,$$$,$$$
7.
#f a line has a capacity of 1$$,$$$ units, the cost of changing the auto!ation level 1 unit either up or down is a. 6$,$$$. b. $,$$$. c. 500"000. d. 6$$,$$$. e. none of the above.
73.
epreciation is calculated> a. using a (year period.
76.
Which three factors drive labor cost? a. 2roduction capacity b. Wage and benefit rates c. 4uto!ation levels d. /econd shiftL*verti!e costs e. b" c" d
77.
#f current wages are set at 1$Lhour, what would be the !ini!u! starting pay that your co!pany would offer? a. 6Lhour b. &=hour c. 1$Lhour d. 1"Lhour e. none of the above
78.
#n the current contract, the wor'ers& wage rate is "$.$$. Which of the following negotiation positions would be outside the starting and ceiling a!ounts? a. 16.$$ to "3.$$ b. 18.$$ to ($.$$ c. 1&.00 to ;3.00 d. 16.$$ to "$.$$ e. ;oth a and d would be outside the rules.
7:.
+or Wages, the negotiation /tarting 2osition cannot be less than % or !ore than % of the current contract. a. 735 1"3 b. 735 13$ c. 8$5 1"3 d. &0' 130 e. none of the above
8$.
0abor -egotiation includes> a. hourly wage. b. benefits. c. profit sharing. d. annual raise. e. all o the above.
81.
o run perfectly, all )@ depart!ent !anagers should 'now that a. the negotiation starting point should not exceed 8$%. b. the starting point for benefits or wages should be between $<13$% of the current contract. c. all stri(e settlements should be halway between the demand and the negotiation ceiling. d. all of the above is correct. e. none of the above are true.
8".
our wor'ers go on stri'e because they have de!anded "$Lhour and your wage negotiation ceiling is at 18Lhour. 4ssu!ing that there are no other labor de!ands, how long will the stri'e last? a. 2 wee(s b. wee's c. 8 wee's d. 16 wee's e. here is no way to deter!ine how long the stri'e will last.
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#n the )u!an @esources section, wor'ers will stri'e one wee' for> a. every 1% your 4nnual @aise -egotiations Ceiling is beneath 0abor&s de!and. b. every ($$ your ;enefits -egotiations Ceiling is beneath 0abor&s de!and. c. every 1% your 2rofit /haring -egotiations Ceiling is beneath 0abor&s de!and. d. every 1 your Wage -egotiation Ceiling is beneath 0abor&s de!and. e. all o the above.
8.
he +inance epart!ent can use which of the following !ethods to acKuire capital for co!pany activities? a. Current 8ebt" Stoc( ssues" ond ssues" and $roits b. 2rofits, Current ebt, Withholding 2ensions, and /toc' #ssues c. 0iKuidating #nventory, /toc' #ssues, ;ond #ssues and 2rofits d. Credit 0ines, ;ond #ssues, /toc' #ssues, and 2rofits e. Current ebt, /toc' #ssues, ;ond #ssues, and coo'ing the boo's
83.
our finance depart!ent is pri!arily concerned with a. acKuiring the capital needed for co!pany activities. b. establishing a dividend policy that !axi!ies the return to shareholders. c. setting credit policies for custo!ers and suppliers. d. profits. e. all o the above.
86.
Capital needed for co!pany activities cannot be acKuired through> a. stoc's and bonds. b. profits. c. current debt. d. arbitrarily iring employees. e. all of the above.
87.
Which financial obligation is best satisfied with ;ond #ssues? a. 4ccounts 2ayable b. ncreased production capacity c. Changes in 4L@ policy d. /alary increases e. 4ll of the above
88.
What happens to a co!pany when its debt
8:.
What is your bond rate? he pri!e rate is 1$%5 your current bond rating slipped one category Dfro! 444 to 44. a. 1".1% b. 10.3% c. 11.% d. 11."%
:$.
Niven a pri!e rate of r and a short ter! interest rate of rO".3, the rating is ;. a. !rue b. +alse
:1.
#f your interest rate is 1".1%, and when you issue new bonds, the bond interest rate is> a. 1$.7%. b. 1".1%. c. 1;.3%. d. 6.1%. e. 1"%.
:".
Niven a pri!e rate of r and a short ter! interest rate of rO".3, the ;ond rate is eKual to DrO(.:%. a. !rue b. +alse
:(.
ou pay no bro'erage fee if you> a. issue bonds. b. retire bonds. c. retire stoc's. d. ac
:.
#n Capstone® what would the bond nu!ber be for a bond with an interest rate of 6.3% that !atures in "$$(? a. 6.3/$( b. "$$(/6.3 c. 9.3S200; d. .$(/6.3 e. 6.3."$$(
:3.
ou are charged a bro'erage fee to issue stoc' and bro'erage fee to retire stoc'. a. 3%5 $% b. 3%' 1.3% c. 1.3%5 3% d. $%5 3% e. 3%5 3%
:6.
he Credit 2olicy 0ag has i!plications for> a. e!and. b. 2erfor!ance. c. 2roduction. d. /ie. e. a" c.
:7.
;udgeting !oney to Iuality initiative will lead to these outco!es except> a. decrease @H ti!e. b. increase e!and. c. increase #abor Costs. d. increase efficiency. e. produce ad!inistrative savings.
:8.
)ow can the @H cycle ti!e be reduced? a. #ncreasing auto!ation levels b. udgeting money to
::.
#nvesting in C2# can a. reduce ad!inistrative costs. b. reduce !aterial and ad!inistrative costs. c. reduce material costs. d. reduce labor costs and reduce @H cycle ti!e.
1$$. #nvesting in CCEL/ix /ig!a can a. reduce labor and ad!inistrative costs. b. increase de!and and reduce labor costs. c. reduce labor material costs. d. increase de!and. 1$1. Within the 2rocess Manage!ent #nitiatives, channel support syste!s a. reduce !aterial cost. b. reduce labor costs. c. increase demand. d. reduce @H cycle ti!e. e. none of the above. 1$". ;ench!ar'ing reduces a. Material cost. b. @esearch and evelop!ent ti!e. c. 0abor Cost. d. )dministrative Cost. e. e!and. 1$(. Which of the following is an exa!ple of a IM initiative? a. Continuous 2rocess #!prove!ent b. Just
1$. Within the process !anage!ent initiatives, concurrent engineering a. reduces !aterial cost, inventors& carrying costs and ad!inistrative overhead. b. reduces labor costs. c. increases the effectiveness of the sales budget and therefore de!and. d. reduces /@8 cycle time. e. none of the above. 1$3. he situation analysis consists of parts. a. ( b. c. 3 d. 6 e. 7 1$6. he situation analysis is a. a tea! exercise. b. designed to help your group understand the current !ar'et conditions. c. designed to help your group understand how the industry will evolve over the next 8 years. d. a five part analysis. e. all o the above. 1$7. Which three custo!er groups Aride the wave of technologyB and are considered to be in the high technology seg!ents? a. $erormance" 4igh End" and Si*e b. 2erfor!ance, raditional, and )igh End c. 2erfor!ance, 0ow End, and /ie d. raditional, )igh End, and /ie e. raditional, 0ow End, and /ie 1$8. When plotting the seg!ent locations for each round a. the goal is to determine the ideal spot location or each segment during the & years. b. the goal is to deter!ine which products are the highest in de!and. c. you use price on one axis and perfor!ance on the other. d. you should use Microsoft Excel. e. all of the above. 1$:. Which of the following Kuestions is answered by the de!and analysis? a. What drives our profit !argins? b. )ow well do !y products perfor!? c. )re the mar(et segments growing at the same rateA d. oes the industry have adeKuate capacity to serve the !ar'et? e. 4ll of the above. 11$. wo a. b. c. d. e.
points that should be considered in your strategy are the overall !ar'et is growing and prices are going down. the overall !ar'et is shrin'ing and prices are going down. the overall mar(et is growing and it is easy to conuse unit mar(et si*e with dollar mar(et si*e. the overall !ar'et is growing and prices are going up and down. none of the above.
111. What is the total cost in dollars for adding 1.$ !illion units of capacity to a production line with an auto!ation level of 1.$ and floor space costs per unit of 6? 4ssu!e auto!ation costs per unit of . a. "6 !illion b. 10 million c. ".6 !illion d. 1 !illion e. none of the above 11". #f you are currently producing 1$$,$$$ units and your auto!ation level is 1$, how !uch will it cost you to double your capacity? a. 1,$$$,$$$ b. 5"900"000 c. 1$$,$$$ d. 1$,$$$ e. none of the above 11(. What is the right for!ula for capacity invest!ent? a. #nvest!ent R Capacity x D x 4uto!ation b. #nvest!ent R Capacity x P1$ O D x 4uto!ationQ c. #nvest!ent R Capacity x P O D6 x 4uto!ationQ d. nvestment B Capacity 9 D +5 )utomation- e. #nvest!ent R Capacity x 4uto!ation 11. #f your current capacity is 1$,$$$ units and your auto!ation level is 3.$, what is the difference of the invest!ent between doubling your capacity and doubling your auto!ation level? a. 90"000 b. "$,$$$ c. 1$,$$$ d. 3"$,$$$ e. "6$,$$$ 113. #f you are currently producing 1$$,$$$ units at an auto!ation level of 3, how !uch would it cost to !axi!ie auto!ation? a. 3$$,$$$ b. 3$,$$$ c. 2"000"000 d. 3,$$$,$$$ e. none of the above 116. 4s a !anager you need to change the auto!ation level of your seg!ent fro! " to 3. he line has a capacity of " !illion. )ow !uch would it cost? a. 1" !illion b. 25 million c. 1$ !illion d. 6 !illion e. none of the above 117. @apid !ove!ent of an existing product on the 2erceptual Map reKuires a. reliability ad9ust!ent. b. low automation levels. c. high auto!ation levels. d. none of the above.
118. #f a product&s 2rice was "$, its Material 8, and its 0abor 7, the Margin 2er Snit would be> a. 1". b. 1(. c. 1. d. 3. e. "$. 11:. #f the priceLproduct is 1$ and the !aterial costLproduct is " and the labor costLproduct is (, what is the gross !arginLproduct? a. 6 b. " c. d. ( e. none o the above 1"$. #n the Capstone® si!ulation, what are the co!ponents of a product&s !aterial cost? a. Cost of #nventory on hand and the cost to store it b. /eliability component cost and positioning component cost c. he costs associated with inventory, shipping and handling d. 0evel of auto!ation and product reliability e. -one of the above 1"1. he reliability co!ponent cost of a product with a 17,$$$ hour M;+ rating is> a. 3.10. b. 17.$$. c. 31.$$. d. 17$. e. cost cannot be deter!ined with infor!ation given. 1"". he best case !argin potential for a product with a top price of ($ and a !ini!u! cost of goods sold of 13 is> a. 3. b. ". c. 3$. d. .3$. e. none o the above. 1"(. 4 point or so!e points you consider for your strategy are a. strive to give your custo!ers the top two buying criteria. b. the perceptual !ap is !ore i!portant as a rough cut consideration than a fine cut distinction. c. !axi!ie the effectiveness of @H, to achieve higher de!and you !ust have a substantially better offer, it does not !atter how good your product is if you stoc' out. d. all o the above. e. none of the above. 1". #n Capstone®, the spreadsheets allow tea! !e!bers to a. !a'e changes to variables. b. observe the results of changes !ade to variables. c. design their own perfor!ance criteria with which to co!pare !ar'et seg!ents. d. all of the above. e. both a and b.
1"3. Each of the spreadsheets a. wor' independently. b. depend on values entered in other spreadsheets. c. wor' si!ultaneously. d. all of the above. e. both a and b. 1"6. -ew products are created on which spreadsheet? a. 2roduction b. /esearch and 8evelopment c. -ew 2roducts and @epositioning d. Mar'eting e. Mar'et @esearch and 4nalysis 1"7. Ssing the @H /preadsheet to design your products, you have which of the following pro9ects to choose fro!? a. @epositioning b. #nvention c. @eliability ad9ust!ent d. )ll o the above e. -one of the above 1"8. What is the !ini!u! a!ount of ti!e that it ta'es to create a new product? a. ( !onths b. 6 !onths c. 1 year d. " years e. 3 years 1":. What are the drivers of Material Costs? a. )igher perfor!ance b. /!aller sie c. )igher Mean i!e ;etween +ailure DM;+ d. )ll o the above e. -one of the above 1($. he !ar'eting spreadsheet is used to set which of the following> a. prices. b. pro!otion budgets. c. sales budgets. d. all o the above. e. none of the above. 1(1. he 4L@ lag is a. a !ar'eting spreadsheet definition. b. the accounts receivable lag Din days. c. the ti!e between custo!ers receiving products and when they are expected to pay for the!. d. a" b" and c. 1(". What happens to a co!pany when it increases the 4L2 lag? a. #t i!proves its cash position. b. #t deteriorates its cash position. c. #t loses credibility. d. #ts suppliers withhold !aterial for production. e. a" d.
1((. he auto!ation level a. causes you to reKuire !ore !anpower with higher ratings. b. causes you to reKuire !ore !anpower with lower ratings. c. causes you to reKuire less !anpower with higher ratings. d. causes you to reKuire less !anpower with lower ratings. e. both b and c. 1(. When going to a new auto!ation level a. there is a 1 year lag. b. there is a lag dependent on the a!ount the auto!ation level has been changed. c. there is no lag. d. the lag is dependent on the cost. e. none of the above. 1(3. -egotiation Ceilings which represent the !axi!u! !anage!ent is willing to pay are always a. 1"% above the starting positions. b. 3% above the starting positions. c. 10% above the starting positions. d. unli!ited. e. none of the above. 1(6. Maxi!u! issue is a. the upper limit in thousands o dollars that teams can issue in stoc( this year. b. a!ount in thousands of dollars that tea!s wish to issue in stoc'. c. upper li!it of stoc' that can be bought bac' in thousands of dollars. d. a!ount of stoc', if any, to buy bac'. e. none of the above. 1(7. Cash a. b. c. d. e.
position is the cash position at the beginning of the round. a pro9ection of the cash position at the end of the round. the cash position at the beginning o the round and a proFection o the cash position at the end o the round. the financial position of the co!pany. none of the above.
1(8. What effects do 2rocess Manage!ent #nitiatives have? a. 4d!inistrative savings b. )igher production efficiency c. #ncrease in de!and d. @eduction of @H ti!es e. )ll o the above. 1(:. our tea! will !a'e decisions for a. Mar'eting. b. +inance. c. )u!an @esources. d. 2roduction. e. all o the above. 1$. Which custo!er group or !ar'et seg!ent see's proven products using current technology? a. !raditional customers b. 0ow End custo!ers c. )igh End custo!ers d. 2erfor!ance custo!ers e. /ie custo!ers
11. Which custo!er group or !ar'et seg!ent see's proven products, are indifferent to technological sophistication, and are price !otivated? a. raditional custo!ers b. #ow End customers c. )igh End custo!ers d. 2erfor!ance custo!ers e. /ie custo!ers 1". Which custo!er group or !ar'et seg!ent see's cutting edge technology in both sie and perfor!ance? a. raditional custo!ers b. 0ow End custo!ers c. 4igh End customers d. 2erfor!ance custo!ers e. /ie custo!ers 1(. Which custo!er group or !ar'et seg!ent see's high reliability, advanced technology products that e!phasie high perfor!ance? a. raditional custo!ers b. 0ow End custo!ers c. )igh End custo!ers d. $erormance customers e. /ie custo!ers 1. Which custo!er group or !ar'et seg!ent see's advanced technology products that focus on s!all sie? a. raditional custo!ers b. 0ow End custo!ers c. )igh End custo!ers d. 2erfor!ance custo!ers e. Si*e customers 13. @epositioning !oves a product on the 2erceptual Map fro! its old location to a new one. When does the new location beco!e active? a. !he day the /@8 proFect completes b. he following year the @H pro9ect co!pletes c. he !onth the @H pro9ect co!pletes d. he day capacity and auto!ation is purchased e. he day capacity is purchased 16. #f a product&s 4uto!ation rating is substantially increased, it will> a. ta(e longer to move the product across the $erceptual ,ap. b. ta'e a shorter ti!e to !ove the product across the 2erceptual Map. c. not allow the product to !ove across the 2erceptual Map. d. have no effect on the product !oving across the 2erceptual Map. e. other. 17. here is lag in buying new Capacity and lag in changing 4uto!ation. a. $5 $ b. 1 year5 $ c. $5 1 year d. 1 year' 1 year e. T year5 T year
18. Which of the following is not a pri!ary concern for your +inance epart!ent? a. 4cKuiring capital b. /etting credit policies for custo!ers and suppliers c. Employee turnover d. Establishing a dividend policy e. Capital structure of the fir! 1:. his strategy atte!pts to gain a co!petitive advantage by 'eeping @H costs, production costs and raw !aterial costs to a !ini!u! in order to co!pete on the basis of price. he product life cycle focus will enable sales for !any years on each new product introduced into the )igh End seg!ent. 2roducts will begin their lives in the )igh End, !ature into raditional and finish as 0ow End products before they are retired and their assets harvested. a. ;road Cost 0eader b. -iche Cost 0eader c. Cost #eader with $roduct #ie Cycle ocus d. ifferentiation strategy with a 2roduct 0ife Cycle +ocus e. ;road ifferentiation 13$. his strategy will allow us to !aintain a presence in every !ar'et seg!ent. Co!petitive advantage will be gained by 'eeping @H costs, 2roduction costs and raw !aterial costs to a !ini!u!, enabling us to co!pete on the basis of price. We will price below average. We will increase auto!ation levels to i!prove our !argins and to !a'e it acceptable to run second shiftLoverti!e. a. road Cost #eader b. -iche Cost 0eader c. Cost 0eader with 2roduct 0ife Cycle +ocus d. ifferentiation /trategy with a 2roduct 0ife Cycle +ocus e. ;road ifferentiation 131. his strategy will allow us to !aintain a presence in every !ar'et seg!ent. Co!petitive advantage will be gained by distinguishing our product with an excellent design, high awareness, and easy accessibility. We will develop an @H co!petency that 'eeps our designs fresh and exciting. *ur products will 'eep pace with the !ar'et, offering i!proved sie and perfor!ance. he price of the products will be above average and capacity will expand as we generate higher de!and. a. -iche ifferentiation b. -iche Cost 0eader c. Cost 0eader with 2roduct 0ife Cycle +ocus d. ifferentiation /trategy with a 2roduct 0ife Cycle +ocus e. road 8ierentiation 13". his strategy will concentrate on the raditional and 0ow End seg!ent. Co!petitive advantage will be gained by 'eeping @H costs, 2roduction costs, and raw !aterials costs to a !ini!u!, enabling us to co!pete on the basis of price Dlow prices. he product will be priced below average and auto!ation levels will be increased to i!prove contribution !argins and !a'e it acceptable to run second shiftLoverti!e. a. ;road Cost 0eader b. 6iche Cost #eader c. Cost 0eader with 2roduct 0ife Cycle +ocus d. ifferentiation /trategy with a 2roduct 0ife Cycle +ocus e. ;road ifferentiation
13(. his strategy will focus on the high technology seg!ents D)igh End, 2erfor!ance and /ie. Co!petitive advantage will be gained by distinguishing our products with excellent design, high awareness, easy accessibility, and product extenders. *ur @H co!petency will 'eep our designs fresh and exciting. *ur products will 'eep pace with the !ar'et, offering i!proved sie and perfor!ance. he prices of our products will be above average and we will expand capacity as we generate higher de!and. a. 6iche 8ierentiation b. -iche Cost 0eader c. Cost 0eader with 2roduct 0ife Cycle +ocus d. ifferentiation /trategy with a 2roduct 0ife Cycle +ocus e. ;road ifferentiation 13. he resources used in the /ales ;udget are a. E
16$. #n only one product seg!ent, di!inishing returns for outside sales is reached at a. 73. b. 12. c. 13. d. 3. e. ($. 161. he !ar'eting budget detail sales screen allows co!panies to allocate their pro!otion budget to different !edia channels. hese !edia channels are> a. 2rint Media, *utside /ales, irect Mail, rade /hows, and E,ail" and Web ,edia. c. #nside /ales, *utside /ales, and rade /hows. d. irect Mail, E
168. Custo!er de!and is driven by a. price, product, pro!otion and IML2rocess #nitiatives. b. customer survey. c. positioning and price. d. !ar'et share. e. !ar'et share, positioning and price. 16:. he custo!er survey score is driven by a. !ar'et share. b. price. c. 5$s. d. price and !ar'et share. e. perceptual !ap, M;+ and price. 17$. 2rocess Manage!ent #nitiatives a. improve business procedures" resulting in improved eiciencies and cost structures. b. i!prove product Kuality while reducing the ti!e and resources reKuired to design, !anufacture, warehouse and ship products. c. i!prove business procedures and product Kuality, resulting in i!proved efficiencies and costs structures. d. i!prove product Kuality and business procedures. 171. IM initiatives a. i!prove business procedures, resulting in i!proved efficiencies and cost structures. b. improve product in>!ime nventory +I!c. Continuous 2roduct #!prove!ent syste!s DC2# d. Channel /upport syste!s e. Iuality #nitiative raining DI# 17. his process !anage!ent initiative reduces labor costs. a. ;ench!ar'ing b. UendorLJust
176. his process !anage!ent initiative reduces @H cycle ti!e, a. Concurrent Engineering +CCE b. ;ench!ar'ing c. Continuous 2roduct #!prove!ent syste!s DC2# d. Channel /upport syste!s e. Iuality #nitiative raining DI# 177. hese IM initiatives reduce ad!inistrative overhead5 reduces the @H cycle ti!e and enhances the effectiveness of the pro!otion and sales budget. a. Concurrent Engineering DCCE5 Channel /upport syste!s and Just a. ("%. b. 3$%. c. 6%. d. ;;%. 18$. *ne of the ways of calculating the top product&s de!and is by a. !ultiplying the total !ar'et share for that product in that seg!ent by the total !ar'et de!and for that seg!ent. b. !ultiplying the top de!and percentage by the total !ar'et de!and for that seg!ent. c. divide the top product segments score by the sum o all other scores in that segment +not counting ringe products-. d. divide the total de!and for that !ar'et seg!ent by the total nu!ber of products in that seg!ent Dnot including fringe. 181. Co!bining sie and perfor!ance creates a product attribute 'nown as a. M;+. b. consu!er perception. c. positioning. d. physical perception. e. a co!pleted electric sensor. 18". Which state!ent is true? a. #ncreasing in capacity and changes in auto!ation can ta'e less than a year to i!ple!ent if the product already exists. /ales of capacity ta'e a full year to i!ple!ent. b. ncreases in capacity and changes in automation ta(e a ull year to implement. Sales o capacity are immediate. c. #ncreases in capacity, changes in auto!ation and sales of capacity ta'e a full year to i!ple!ent. d. #ncreases in capacity, changes in auto!ation and sales of capacity ta'e less than a year to i!ple!ent if the product already exists.
18(. he traditional !ar'et seg!ent is expected a. none of these. b. to grow at 1% per year. c. to grow at a faster rate than the !ar'et. d. to ma(e up 2:.3% o the electronic sensor mar(et in ive years rom now. e. to grow at a faster rate than the high end seg!ent. 18. he a. b. c. d. e.
sales channel effectiveness for the distributors is highest for )igh End. 2erfor!ance, )igh and /ie. !raditional and #ow. 0ow End and )igh End. /ie.
183. When investing in direct !ail, di!inishing returns apply after a. 7$$,$$$ per product. b. 7$$,$$$ per seg!ent. c. &00"000 per product. d. 8$$,$$$ per seg!ent. e. 3$$,$$$ per product. 186. he potential reach for direct !ail is rated as good for the a. 2erfor!ance and 0ow End. b. 2erfor!ance and )igh End. c. !raditional and #ow End. d. )igh and 0ow End. e. /ie and 2erfor!ance. 187. his strategy will gain co!petitive advantage by distinguishing our products with an excellent design, high awareness, easy accessibility, and product extenders. We will develop @H co!petency that 'eeps our designs fresh and exciting. *ur products will 'eep pace with the !ar'et, offering i!proved sie and perfor!ance. We will price above average. We will expand capacity as we generate higher de!and in our !ar'ets> )igh, raditional and 0ow End. a. Cost 0eader with 2roduct 0ife Cycle +ocus b. 8ierentiation Strategy with a $roduct #ie Cycle ocus c. ;road Cost 0eader d. -iche ifferentiation e. ;road ifferentiation 188. /ales channel effectiveness for inside salespeople is highest for a. raditional, 0ow end and )igh End b. 2erfor!ance and )igh End c. 2erfor!ance, /ie and )igh End d. $erormance e. )igh End 18:. he perfor!ance seg!ent places !ore i!portance on a. age and reliability. b. reliability and positioning. c. price and age. d. positioning and price.
1:$. Which !ar'et seg!ent places the !ost i!portance on reliability? a. raditional b. $erormance c. 0ow End d. /ie e. )igh End 1:1. What product attributes do 2erfor!ance custo!ers value the !ost? a. 4ge b. 2rice c. 2ositioning d. /eliability e. *ther 1:". he Co!petitive #ntelligence *fficer a. thin(s li(e the competitor by determining how that competitor measures success" loo(s to the uture as to what the competition will do in the net year to two years" and evaluate how the competition can undercut your companys perormance. b. a co!petitor&s production position. c. !onitors the co!petition on the production analysis portion of the Courier and evaluates the co!petitor&s !ar'eting position in relation to their own. d. needs strong analytical s'ills in order to deter!ine the co!petition&s next !ove is and what threats the co!petition represent to all tea!s involved. e. !onitors and evaluates on the top two co!panies that are a threat to the existing tea! and tries to thin' li'e the co!petition and anticipate their next !ove through the production analysis portion of the Capstone Courier. 1:(. Custo!ers that want proven products and current technology of !oderate sie and perfor!ance are in the a. traditional segment b. high End seg!ent c. low End seg!ent d. perfor!ance seg!ent e. sie seg!ent. 1:. Custo!ers that are willing to pay for products with cutting edge technology that are fast perfor!ing and s!all in sie are in the a. traditional seg!ent. b. high end segment c. low end seg!ent d. perfor!ance seg!ent e. sie seg!ent 1:3. What two factors are considered in both the rough cut and fine cut of the custo!er buying process? a. $rice and /eliability b. 2rice and 4ge c. 4ge and 2erfor!ance d. @eliability and age 1:6. When a seg!ent&s product supply exceeds de!and, how !uch appeal, to the custo!er, will a product priced 1 above or below the seg!ent price range lose? a. 3% b. 1$% c. 13% d. 20% e.
%$ 1:7. What section of the perceptual !ap is considered ideal for the low end seg!ent? a. Middle b. Spper @ight c. 0ower @ight d. Jpper #et e. 0ower 0eft 1:8. #ncreasing perfor!ance and shrin'ing sie does what to the !aterial cost? a. -othing b. ncreases c. ecreases d. #ncreases for traditional custo!ers only. e. ecreases for traditional custo!ers only. 1::. he pro!otion budget affects> a. awareness. b. brand eKuity. c. perfor!ance. d. sie. e. accessibility. "$$. What is the starting awareness percentage of a new product? a. 13% b. 63% c. $% d. 23% e. "$% "$1. When investing in web !edia, di!inishing returns apply after a. 300"000 per product. b. 7$$,$$$ per product. c. 7$$,$$$ per seg!ent. d. 6$$,$$$ per product. e. 6$$,$$$ per seg!ent. "$". When investing in rade /hows, di!inishing returns apply after a. 7$$,$$$ per product. b. ($$,$$$ per seg!ent. c. 8$$,$$$ per product. d. ;00"000 per product. e. 3$$,$$$ per product. "$(. #n order to achieve 1$$% accessibility, a tea! !ust> a. none of these. b. have at least two products in the same segment. c. have a co!bined sales budget of .$ !illion. d. create awareness in the previous year. e. spend !illion on distribution channels. "$. )ow !any asse!bly lines are there? a. 4lways exactly five per co!pany b. *ne for all co!panies c. *ne per co!pany d. 6one o these. e. *ne in each seg!ent.
"$3. #f you sell off a production line Dcapacity and auto!ation, the a!ount of cash that the co!pany will receive will be a. 93% o the original cost. b. average cost of production for the previous year D!ar'et price. c. 3$% of the boo' value. d. 3$% of the acKuisition cost. e. 63% of the boo' value. "$6. #nventory Carrying Cost is % of the average cost of production. a. 1( b. c. 1$ d. 8 e. 12 "$7. What is the !ost i!portant criteria to a Araditional /eg!entB consu!er? a. 2rice b. M;+ c. 2ositioning d. )ge e. 2erfor!ance "$8. What is the !ost i!portant criteria to a A)igh End /eg!entB custo!er? a. $ositioning b. 2erfor!ance c. 2rice d. 4ge e. M;+ "$:. What is the !ost i!portant criteria to a A/ie /eg!entB custo!er? a. $ositioning b. 2rice c. 4ge d. M;+ e. 2erfor!ance "1$. #t ta'es years to invent a product. a. ( or !onths b. 6 !onths c. ,ore than 1 year but no more than ; years d. More than ( years "11. 4 new unit of capacity costs 6 for the floor space plus ti!es a. hourly wage. b. automation rating. c. unit cost. d. M;+. e. $.63. "1". 4 functional !anager is responsible for a. one of the five !ar'et seg!ents. b. /@8" ,ar(eting" $roduction" inance" 4uman /esources" and !?,=$. c. one of the five products in the starting product line. d. none of these. e. !onitoring co!petitors in their entirety.
"1(. )ow !any !ar'et seg!ents are there? a. ( b. c. 3 d. 6 e. 7 "1. Custo!ers go through a two he @ough Cut and the +ine Cut. #n the @ough Cut, buyers focus on four product characteristics. Which one of the following is -* one of these four product characteristics? a. 2erfor!ance b. )ge c. /ie d. @eliability e. 2rice "13. When investing in E a. 1$ days. b. &5 days. c. 6$ days. d. ($ days. e. here is no stri'e !axi!u!. "1:. he interest rate on a bond by for each in the bond rating category. a. ncreases' 0.3%' 8ecrease b. ecreases5 1.%5 ecrease c. #ncreases5 $.3%5 #ncreases d. ecreases5 1.%5 #ncrease e. #ncreases5 7.3% 5 ecrease
""$. ou are charged a bro'erage fee to issue bonds and bro'erage fee if you retire bonds prior to their !aturation date. a. $%5 3% b. 3%5 3% c. 3%5 $% d. 3%' 1.3% e. 1.3%5 3% ""1. E2/ DEarning 2er /hare is calculated by a. adding net profit by the nu!ber of current shares. b. dividing net profit by the nu!ber of current shares. c. adding net profit to the nu!ber of shares outstanding. d. dividing net proit by the num ber o shares outstanding. e. none of these. """. Which of the following is not a 2rocess Manage!ent #nitiative available to your co!pany? a. Concurrent Engineering b. GE, Sustainability c. Continuous 2rocess #!prove!ent d. S-E2 Nreen e. Channel /upport /yste! ""(. Which of the following is not one of the five parts to the /ituation 4nalysis> a. 2erceptual Map. b. e!and 4nalysis. c. Capacity 4nalysis. d. Consu!er @eport. e. orecasting )nalysis. "". 2roducts !ust plot within units fro! the center of the circle on the 2erceptual Map to survive the rough cut. a. (.$ b. 5.0 c. 1.$ d. ".3 ""3. Iuality #nitiative raining can a. increase de!and. b. decrease @H cycle ti!e. c. decrease !aterial costs. d. decrease labor costs. e. decrease ad!inistrative costs. ""6. #nvesting in Uendor Just #n i!e can a. reduce !aterial costs and @H cycle ti!e. b. reduce ad!inistrative costs and labor costs. c. reduce @H cycle ti!e and increase de!and. d. reduce material costs and administrative costs. e. reduce !aterial costs and increase de!and. ""7. 4dding one additional unit of capacity costs a. x Change Ddifference in 4uto!ation 0evel b. 9 D +5 Current )utomation #evel-. c. 6 x Change Ddifference in 4uto!ation 0evel. d. O D6 x Current 4uto!ation 0evel. e. none of these.
""8. )ow !uch does it cost for M;+ per 1,$$$ hours of reliability? a. $.3$ b. $.$ c. 0.;0 d. $."$ e. $.1$ "":. )ow a. b. c. d. e.
are the /tarting 2osition and the -egotiation Ceiling related? he -egotiation Ceiling is always 13% above the /tarting 2osition. hey are not related. heir values are eKual. he -egotiation Ceiling is always 1$% beyond the /tarting 2osition. !he 6egotiation Ceiling is always 10% above the Starting $osition.
"($. 0abor costs are driven by three factors> a. wage and benefit rates, auto!ation levels, and M;+. b. wage and benefit rates, positioning, and second shift. c. wage and benefit rates, second shift, and M;+. d. wage and beneit rates" automation levels" and second shit. e. wage and benefit rates, second shift, and !aterial costs. "(1. he sales channel effectiveness for the outside sales people is highest for a. 4igh End and Si*e. b. 2erfor!ance, )igh and /ie. c. raditional and 0ow. d. 0ow End and )igh End. e. /ie. "(". he potential reach for web !edia is rated as good for the a. 2erfor!ance and )igh End. b. Size and Performance. c. raditional and 0ow End. d. )igh and 0ow End. e. 2erfor!ance and 0ow End. "((. 4 6 !onth pro9ect in @H costs5 while a 1" !onth pro9ect in @H costs . a. 1,$$$,$$$5 1,3$$,$$$ b. 63$,$$$5 83$,$$$ c. 300"000' 1"000"000 d. 73$,$$$5 1,$$$,$$$ e. 1,$$$,$$$5 73$,$$$ "(. he potential reach for print !edia is rated as good for the a. 2erfor!ance and 0ow End. b. 2erfor!ance and )igh End. c. !raditional and #ow End. d. )igh and 0ow End. e. /ie and 2erfor!ance. "(3. /toc' price is a function of> a. ;oo' value, Earnings per /hare, and -et 2rofit. b. ;oo' value, ividend, and @etained Earnings. c. Earnings per /hare, ividend, and @etained Earnings. d. Earnings per /hare, ividend, and -et 2rofit. e. oo( value" Earnings per Share" and 8ividend.
"(6. Which of the following is true about the 4ccounts @eceivable 0ag and its i!plications on de!and? a. #f you offer no credit, de!and falls to about 6$% of nor!al. b. 4t ($ days, de!and is :$%. c. 4t 3 days, de!and is :3%. d. )t 90 days" demand is K&.3%. e. 4t :$ days, de!and is 1$$%. "(7. #f your co!pany offers no credit ter!s, de!and a. re!ains constant. b. falls "3%. c. falls 3$%. d. alls 93%. "(8. 4 bond with the nu!ber 1".6/"$$3, indicates that> a. the interest rate is 1".6%5 due in May. b. the interest rate is 1"%5 due on June $3. c. the interest rate is 1"%5 due in June "$$3. d. the interest rate is 3%5 due on ece!ber 6. e. the interest rate is 12.9%' due on 8ecember ;1" 2003. "(:. #nvesting in Iuality +unction eploy!ent Effort can a. reduce labor and ad!inistrative costs. b. increase de!and and reduce labor costs. c. reduce @H cycle ti!e and increase de!and. d. reduce /@8 cycle time and enhance the eectiveness o the promo and sales udgets. e. increase de!and. "$. #nvesting in Concurrent Engineering can a. reduce /@8 cycle time. b. reduce labor and ad!inistrative costs. c. increase de!and and reduce labor costs d. reduce @H cycle ti!e and increase de!and. "1. #nvesting in Channel /upport /yste!s can a. increase demand. b. reduce @H cycle ti!e. c. reduce !aterial costs. d. reduce labor costs. e. reduce ad!inistrative costs. "". #f the previous year you reached 1$$% custo!er awareness in your co!pany, this year what will you need to do to !aintain this level? a. here is nothing to do. # have already reached as !uch awareness as # could. b. /pend the sa!e a!ount of !oney spent the previous year to reach the sa!e percentage of awareness this year. c. would only need to create ;;% new awareness to maintain 100% this year. d. # need to spend at least half of the !oney spent the previous year to reach 73% of the population. e. -one of these. "(. ea!s can produce up to products. a. : b. 7 c. & d. 3 e. 6
". 4 production line with 1$$$ units of capacity has a !ax production capability of> a. 1$$$. b. 13$$. c. "3$$. d. 2000. e. as !any as needed. "3. When purchasing increased Capacity and 4uto!ation, the new capacity beco!es available a. i!!ediately. b. in 1 year. c. in 6 !onths. d. in " years. e. none of these. "6. Capacity is sold by a. entering a ero in the ;uyL/ell row on the 2roduction /preadsheet. b. entering a null value in the ;uyL/ell row on the 2roduction /preadsheet. c. entering a negative nu!ber in the ;uyL/ell row on the Mar'eting /preadsheet. d. entering a negative number in the uy=Sell row on the $roduction Spreadsheet. e. entering a positive nu!ber in the ;uyL/ell row on the 2roduction /preadsheet. "7. ividends are paid to the stoc'holders in a. se!i
"3". What are the 2rocess Manage!ent #nitiatives? a. C22, J#, Iuality +unction eploy!ent Effort, Channel /upport /yste!s, Concurrent evelop!ent, NEM# IM /ustainability b. ;ench!ar'ing, J#, Iuality +unction eploy!ent Effort, Channel /upport /yste!s, Concurrent Engineering c. C2#, ;ench!ar'ing, I#, Channel /upport /yste!s, J#, S-E2 Nreen d. C$" J6E$ Green" I!" ?!" Channel Support Systems" Concurrent Engineering e. NEM IM /ustainability, CCE, J#, I#, Channel /upport /yste!s, Concurrent Engineering "3(. Each round is the eKuivalent of a. two years. b. none of these. c. one year. d. one Kuarter. e. one a. Good" air" or $oor. b. Excellent, /atisfactory, or Snsatisfactory. c. Excellent, Uery Nood, Nood, +air, or 2oor. d. /atisfactory or Snsatisfactory. e. *ther. "33. #f you see a red flag on one of your spreadsheets, what does it !ean? a. he cell is loc'ed. b. ou need to surrender. c. ou have an error. d. !here is more inormation. e. ou need to reenter your data. "36. Which one of these criteria is not a top product characteristic of at least one seg!ent? /ie a. b. 2erfor!ance c. 2rice d. $romotion e. 4ge "37. Custo!er 4wareness @eports> each co!pany&s level of accessibility. a. b. percentage of Custo!ers who bought the product. c. percentage o Customers who (new about the product. d. percentage of Custo!ers who are in that seg!ent. e. each co!pany&s success in pricing. "38. +or positioning in the fine cut, which one is not right? a. raditional preferred position is located in the center of circle. b. 0ow End preferred position is located upper left of circle. c. 4igh End preerred $osition is located in the lower let o the circle. d. 2erfor!ance preferred position is located in the lower right o f the circle. e. /ie preferred position is located in the lower right of the circle. "3:. Which one is not the source of acKuiring capital? a. 2rofits b. !>ills Current ebt c.
d. e.
/toc' ;ond
"6$. 2rice accounts for custo!ers& decision a. ;;% b. "3% c. ($% 3$% d. e. none of the above "6(. i!inishing returns for a single year on IM budgets beco!e noticeable at (.$M. a. b. 1.3M. c. 2.0,. 3.$M. d. e. 1.$M. "6. )igh end custo!ers prefer a product age of $, at what age exceeds the fine cut for the product a. 3 years. b. ( years. c. 2 years. ".3 years. d. e. years. "63. 2ro!otion expenditures reach di!inishing returns at what level? a. about ;, b. ".3M 1M c. d. M e. none of the above "66. #n the )igh End /eg!ent, price as a buying criteria is accounts for which percentage of the consu!er
decision> a. 3(%. b. K%. c. "(%. d. 1:%. e. -one of the above.
"67. Co!panies with this strategy state their vision as follows> 0ow priced products for the whole industry, our
brands offer solid value. *ur pri!ary sta'eholders and bondholders, custo!ers, stoc'holders and !anage!ent. a. -iche Cost 0eader b. Cost leader with 2roduct 0ife Cycle +ocus ifferentiation /trategy with a 2roduct 0ife Cycle +ocus c. d. road Cost #eader e. ;road ifferentiation "68. #n the raditional /eg!ent, age as a buying criteria is accounts for which percentage of the consu!er
decision> a. 3(%. b. (%. c. 5:%. d. ":%. e. -one of the above "6:. 4n accessibility of 6$% !eans that . only 6$% of custo!ers have an easy ti!e finding a product, tal'ing to a salesperson and ta'ing a. b. c. d. e.
delivery. of the custo!ers who cannot easily locate the product, half will see' it out. $% of custo!ers will not buy the product. a and b. a and c.
"7$. )ow !uch higher are second shift wages than the first shift wages? a. $% b. "$ % $ % c. d. 30 % e. 6$ % "71. he accounts payable lag has i!plications for production. 4t days, suppliers withhold all
!aterial. a. 1"$ b. 130 c. 16$ d. 17$ none of the above e. "7". he center spot of traditional products drifts each year. a. D0.: perormance" >0.: si*e b. O$.3 perfor!ance, <$.3 sie c. O$.: perfor!ance, <$.: sie O1.$ perfor!ance, <$.7 sie d. e. O$.7 perfor!ance, <1.$ sie "7(. +inance ecisions should be !ade a. before the other depart!ents enter their decisions. b. at any ti!e. c. ater the other departments have entered their decisions. after the @H depart!ent has entered its decisions. d.
e.
none of the above.
"7. #f you sell all the capacity on a production line, Capstone interprets this as a. a liKuidation instruction and will sell your re!aining inventory for one third of the average cost of b. c. d. e.
production. a li
"73. Custo!ers evaluate the sensor industry based on> a. 2ositioning. b. @eliability. 4ge. c. d. 2rice. e. )ll o the )bove. "76. When the )u!an @esources !odule is activated, which areas !ust be addressed? a. Co!ple!ent Dnu!ber of wor'ers Caliber Drecruit!ent of talent of wor'ers b. c. raining Dti!e wor'ers spend in training d. ;enefits Dretire!ent planning for wor'ers e. a" b" and c "77. 4 product&s does not play a role in the rough cut a. 2ositioning 2rice b. c. @eliability d. )ge M;+ e. "78. #n the +ine Cut, a product&s appeal is drive by its . a. Color b. Customer Survey Score c. Ssage d. @ough cut position e!and e. "7:. he details sales volu!e in all seg!ents, reporting each product&s actual and potential
sales. a. ;alance /heet b. ,ar(et Share /eport )@LIML/ustainability @eport c. d. @ound 4nalysis e. 4nnual @eport "8$. 4uto!ation levels are given on a scale of to . a. $.$5 3.$ b. 1.$5 3.$ $.$5 1$.$ c.
d. e.
1.0' 10.0 3.$5 1$.$
"81. Which of the following will give your co!pany an 444 bond rating> a. )ave contribution !argins higher than ($%. b. 4ave absolutely no debt. c. @etire all of the current outstand stoc'. d. 2ay a dividend that is less than E2/. @etire bonds before they are due. e. "8". 2roducts that are !odified through @H> a. 4re always !ore attractive to custo!ers. b. Will allow the co!pany to increase the price. c. 4re thought of as new products. d. )re perceived to be hal the age as beore entering /@8. 4re always co!pleted in less than one year. e. "8(. ;uying criteria order for which two seg!ents is the sa!e> raditional and 0ow End. a. b. 2erfor!ance and /ie. c. Si*e and 4igh End. )igh End and 2erfor!ance. d. e. 2erfor!ance and raditional. "8. Which of the following will result in the highest interest rate> #ssuing ;onds. a. b. #ssuing /toc'. c. Current ebt. d. Emergency #oan. e. ;oth a co!bination of a and b. "83. #n the ece!ber custo!er survey, a product would not receive a perfect score of 1$$ if a. it was priced at the botto! of the expected range. b. it was perfectly positioned. c. it had an ,! at the middle o the epected range. it had 1$$% awareness. d. e. it had ideal age for seg!ent. "86. Each product can be pro!oted by a. 2rint !edia. b. irect !ail. Web !edia. c. d. rade shows. e. )ll o the above. "87. Which one of the following state!ents regarding preferred position in fine cut is false? a. raditional custo!ers want products located in the center of the circle. b. #ow end customers want the newest technology at the cheapest price. )igh end custo!ers want high perfor!ance and s!all sie. c. d. 2erfor!ance custo!ers prefer higher perfor!ance levels. e. /ie custo!ers want s!aller sie.
"88. he turnover rate a. is the percentage of wor'ers who left the co!pany last year, excluding down0.: <$.7, O$.7 c. d. O$.3, <$.3 e. O$.:, <$.: ":. he growth rate for industry de!and in the seg!ent is 18.(%. a. raditional 0ow End b. c. )igh End d. 2erfor!ance e. Si*e ":3. he cost to increase auto!ation to 8.$ is eKual to a. +irst /hift Capacity X P8 X D V 4uto!ation 0evel. +irst /hift Capacity X P8 X D O 4uto!ation 0evel. b.
c. d. e.
irst Shit Capacity L 5 L +& M )utomation #evel-. +irst /hift Capacity X P X D8 O 4uto!ation 0evel. +irst /hift Capacity X P X D V 4uto!ation 0evel.
":6. Co!panies can enter a @ecruiting /pend budget up to an additional . a. 3"000 b. 7,3$$ c. 1$,$$$ "$,$$$ d. e. 3$,$$$ ":7. he following describe the strategy of ifferentiation with 2roduct 0ifecycle +ocus, except> a. develops an @H co!petency to 'eep designs fresh and exciting. b. concentrates on the )igh End, raditional and 0ow End seg!ents. c. prices are below average. d. products !aintains pace with the !ar'et. e. capacity is expanded as de!and is increased. ":8. *ne way to enter sales forecasts and production schedules is to develop a worst caseLbest case scenario.
Where would you enter your best case scenario and where would you enter your worst case scenario? a. 7n the ,ar(eting spreadsheet enter your worst case orecast in Nour Sales orecast cell" and on the $roduction spreadsheet enter your best case orecast in the $roduction Schedule cell. b. *n the Mar'eting spreadsheet enter your best case forecast in our /ales +orecast cell, and on the 2roduction spreadsheet enter your worst case forecast in the 2roduction /chedule cell. c. Enter your best case forecast for both our /ales +orecast cell on the Mar'eting spreadsheet and in the 2roduction /chedule cell on the 2roduction spreadsheet. d. Enter your worst case forecast for both our /ales +orecast cell on the Mar'eting spreadsheet and in the 2roduction /chedule cell on the 2roduction spreadsheet. e. -one of the above. "::. Which of the following state!ents is true about pro!o and sales budget? +ro! one year to the next, a third of those who 'new about a product forgot about it. a. b. #f a product ended last year with an awareness of 3$%, this year it will start with an awareness of c. d. e.
approxi!ately ((%. #f you have two or !ore products that !eet a seg!ent&s fine cut criteria, the sales budget for each product contributes to that seg!ent&s accessibility percentage. Co!panies !ust have at least two products in the seg!ent&s fine cut to achieve 1$$% accessibility. )ll o the above.
($$. Which of the following is not one of the pri!ary concerns in the +inance epart!ent? a. 4cKuiring the capital needed for co!pany activities. Establishing a dividend policy that !axi!ies the return to shareholders. b. c. /etting accounts payable and accounts receivable policies. d. riving the financial structure of the fir!, its relationship between debt and eKuity. e. 8eciding promo and sales budget. ($1. Which of the following is not the correct yearly drift rate for the corresponding seg!ent? a. #n the traditional seg!ent perfor!ance drifts by O$.7 and sie by <$.7. #n the low seg!ent perfor!ance drifts by O$.3 and sie by <$.3. b. c. #n the high end seg!ent perfor!ance drifts by O$.: and sie by <$.:. d. #n the perfor!ance seg!ent perfor!ance drifts by O1.$ and sie by <$.7. e. n the si*e segment perormance drits by >0.: and si*e by D1.0.
($". he C42/#M si!ulation is based on which industry? a. sensor industry b. textile industry c. auto!otive industry electronics industry d. ($(. our depart!ent controls the perfor!ance and sie, therefore position of your sensor
products within the !ar'et. a. 2lanning b. +inance c. /@8 d. Mar'eting ($. Custo!ers go through stageDs as they !a'e their purchase decisions. fine cut only a. b. rough cut only c. ine cut and rough cut none of the above d. ($3. 4ccount @eceivables lag i!pacts sales. 4t no credit ter!s, the appeal falls to about %, at ($ days,
appeal is %, at 6$ days, appeal is %. a. :8.3, :", 63 b. 93" K2" K&.3 c. 7$, 83, :: none of the above, there is no i!pact d. ($6. 2roducts with prices, M;+s or positioning in the seg!ents rough cut do contribute to the seg!ents
accessibility. a. rue b. alse ($7. Which !odule in C42/*-E allows invest!ent in wor'force training? a. 4/ b. 2lanning +inance c. d. Mar'eting ($8. #nvest!ents in training leads to a and . a. higher costs, higher turnover b. higher productivity" lower turnover lower productivity, lower turnover c. d. none of the above ($:. #n what circu!stance would a co!pany have a high !ar'et share relative to that of its co!petitors, though
it is not !a'ing best use of resources available to it? a. Mar'et share is the best yard stic' for !easuring how effectively and efficiently a co!pany is !a'ing use of its resources. b. Where competitors underperorm" a company may have a higher mar(et share than that o its competitors though it is not ma(ing best use o its resources. c. here is no way a co!pany would have a high !ar'et share when it is not !a'ing best use of its resources.
d. e.
4 huge invest!ent in custo!er awareness and accessibility is a s!art way to increase !ar'et share. ;y selling your products at prices lower than those of your co!petitors, you are sure to have a large !ar'et share.
(1$. 4 perfect product Dwith 1$$% awareness starting with a survey score of 1$$, why is it that at 6
%$accessibility rating, 8$% of custo!ers have access to a product such that survey score declines fro! 1$$ to 8$? a. ;ecause accessibility for a product is dependent on how well co!petitors& products perfor!. b. 7 the 50% o customers without accessibility" 20% o them would ma(e an etra eort to ac
the year prior to the product&s introduction? a. Nou cannot manuacture your new product. b. #f the product is !oved close to existing products on the @H spreadsheet, a few but insufficient nu!ber of the new product would be produced. he product would auto!atically cease to exist. c. d. he new product would stoc' out and there would be a loss in sales revenue. e. -one of the above. (1". @H pro9ect length can be as long as . a. ( !onths b. " years 1 year c. d. ; years e. here is no li!it, it is dependent on positioning and M;+. (1(. )ow best would you describe the financial position of the co!pany, at the beginning of the si!ulation
when control of the co!pany is handed over to you? a. 7 moderate ecellence b. Close to ban'rupt c. ;an'rupt d. )eavily indebted but not close to ban'ruptcy ;ad but with a!ple opportunity for i!prove!ent e. (1. )ow is Contribution Margin calculated? Material Cost V 0abor Cost a. b. 2riceYDMaterial Cost<0abor Cost c. $rice M +,aterial cost D #abor cost2rice V Material Cost d. e. 2rofit VDMaterial Cost O 0abor Cost (13. he percentage of wor'ers that left the co!pany last year is the> a. Co!ple!ent. b. /eparated E!ployees. c. 2roductivity #ndex. d. !urnover rate. e. -one of the above. (16. 4t the start of the si!ulation, all asse!bly lines have an auto!ation level between>
a. b. c. d. e.
".$ and .$. ;.0 and 3.0. .$ and 6.$. 3.$ and 7.$. 6.$ and 8.$.
(17. /eg!ent price ranges drop per year. a. 1.$$ $.6$ b. c. $.:$ d. 0.30 e. ".$$ (18. Each year the co!pany receives bond ratings. he range of these bond ratings fro! best to worse is> a. 4 to +. 4 to C. b. c. to 44. d. to 444. e. ))) to 8. (1:. he ece!ber Custo!er /urvey indicates a product&s custo!er awareness. a. b. how customers perceived the products in the segment. c. a product&s actual and potential de!and. d. the accessibility of each product. none of the above. e. ("$. 2eriod costs include @H. a. b. pro!otion. c. sales and ad!inistration expenses. d. all o the above. ("1. 0owering the auto!ation level will result in a. receiving a cash pay!ent of per unit of capacity. a tax credit. b. c. a charge. d. i!!ediate changes to production lines. none of the above. e. ("". #f all of the capacity on a production line is sold all re!aining inventory is sold for half the average cost of production. a. b. a loss is written off on the inco!e state!ent. c. Capstone interprets the action as a liKuidation instruction. the co!pany will receive a cash pay!ent of 63% the original invest!ent on capacity. d. e. all o the above. ("(. 4s a general rule, stoc' issues are used to> 2rotect you fro! getting a loan fro! ;ig 4l. a. b. +und the purchase of !ore !ar'et share. c. und long term investments in capacity and automation. +und yearly sales and pro!otional budgets. d.
e.
4ll of the above.
(". Which seg!ent has the highest growth rate? a. raditional b. 0ow end )igh end c. d. $erormance e. /ie ("3. 0oo'ing at the production, if the potential bar is higher than the actual one, a. the co!pany should spend !ore budget in sales. b. the co!pany over produced and !issed sales opportunities. c. the co!pany produced the right a!ount and !issed no sales opportunities. d. the company under produced and missed sales opportunities. e. the co!pany should spend !ore budget in !ar'eting. ("6. #f the potential bar is lower than the actual, a. the co!pany over produced and !issed sales opportunities. the co!pany lost sales because other co!panies over produced. b. c. the company pic(ed up sales because other companies under produced. d. the co!pany produced as !uch as last period and under produced nothing. the co!pany under produced and !issed sales opportunities. e. ("7. #nvesting !ore than 3,$$$,$$$ in the sa!e IM initiative over a two or three year period creates a. little or no additional improvement. high additional i!prove!ent. b. c. the sa!e i!prove!ent than last period. d. di!inishing returns. ("8. 4ccording to Capstone, Co!ple!ent is best defined as> a. the number o wor(ers in your wor(orce this year. letter fro! the si!ulation telling your tea! you did a good 9ob. b. c. the nu!ber of wor'ers needed to reduce your overti!e. d. none of the above. (":. Capstone&s definition of reach in the !ar'eting !odule is defined by the potential nu!ber of custo!ers
who would see the !essage. ;ased on this definition what seg!ent has AfairB reach with direct !ailing? a. 4igh End raditional b. c. 0ow End d. 2erfor!ance /ie e. (($. Where are the credit policies for custo!er and supplier set in Capstone.xls? a. ,ar(eting spreadsheet b. 2roduction spreadsheet c. +inance spreadsheet d. Credit spreadsheet e. -one of the above ((1. he pri!ary difference between the 2rofor!as and annual reports is> 2rofor!as report on product infor!ation5 annual reports report on financial data. a.
b. c. d. e.
$roormas are proFections o results or the upcoming year' annual reports are results rom the previous year. 2rofor!as are results fro! the previous year5 annual reports are pro9ections of results for the upco!ing year. 2rofor!as report on financial data5 annual reports report on product data. -one of the above.
((". What is the !ost i!portant ele!ent that ensures the accuracy of the 2rofor!as reports? 2roduction capacity a. b. ,ar(eting sales orecasts c. @ H decisions d. +inancial decisions e. 4ll of the above (((. When should you purchase the production line to produce a new product? he year you create the product a. b. he year after you create the product c. !he year prior to its introduction he year of its introduction d. e. he year after its introduction ((. Which tool can you use as a Kuic' co!parison tool when conducting a co!petitive analysis concerning
production? a. ;ond ratings b. /toc' price c. Customer survey d. Mar'et share e. -one of the above ((3. #n the 2erceptual Map each seg!ent has a set of circles where> a. he inner fine cut circles have a radius of units. b. !he inner ine cut circles represent the heart o the segment where demand is strong. c. 4t the center of each inner fine cut circle is the ideal spot where de!and is strongest. d. a and b. e. a, b and c. ((6. ifferent custo!er de!ands i!pact the seg!ents so that> a. he )igh End /eg!ents drifts at a faster rate than the other seg!ents. b. 4igh End" $erormance and Si*e drit at a aster rate than the other segments. c. 4ll seg!ents drift at the sa!e rate but the custo!er expectations grow faster in the )igh End, d. e.
2erfor!ance and /ie /eg!ents co!pared to the other seg!ents. 4ll seg!ents drift at the sa!e rate but the costu!er expectations grow faster in the )igh End /eg!ent co!pared to the other seg!ents. 4ll seg!ents drift at different rate and the overlap between the seg!ents increases over ti!e.
((7. Which screens are necessary to !a'e a co!plete hu!an resource decision when the advance !odule has
been activated? a. $roduction @ human resources Mar'eting H hu!an resources b. c. +inance H !ar'eting d. )u!an resources H IM e. -one of the above choices are correct
