Knowledge Checks

Cumulative Balanced Scorecard def & equation

(Under Performance Report) Def: like a report card for a company's managers. It shows how well they're doing in different areas like making money, marketing, running the business, managing people, and spending money wisely. It adds up all these scores to give an overall grade on how well the managers are doing. If they're not doing well in any area, it affects their overall score Equation: Cumulative Total Performance = Cumulative Financial Performance * Cumulative Market Performance * Cumulative Marketing Effectiveness * Cumulative Investment in Future * Cumulative Wealth * Cumulative Human Resource Management * Cumulative Asset Management * Cumulative Manufacturing Productivity * Cumulative Financial Risk

Demand and Ill Will

(Under Performance Report) > If your firm was not able to fulfill demand in quarter 3, then you created unhappy customers. > They wanted to buy your product, but you were not able to produce enough bicycles when they wanted them. > Furthermore, they told their friends about their experience. > This created customer ill will in quarter 4. > Customer ill will is reflected as a penalty against your firm's brand demand during quarter 4. > The sales lost to customer ill will are lost forever.

Total Performance

(Under Performance Report) > Total Business Performance indicator evaluates how well the executive team manages company resources. > It considers past performance and future competitiveness. > Uses a balanced scorecard to measure performance across various areas. > Emphasizes financial performance but also looks at marketing, operations, HR, cash, and investments. > Balances present profits with future investments for long-term viability. > Managers must excel in all areas measured. > Computed by multiplying several performance indicators. > Negative score in any indicator results in Total Performance of "0."

Total Performance equation

(Under Performance Report) Total Performance = Financial Performance * Market Performance * Marketing Effectiveness * Investment in Future * Wealth * HumanResourceManagement* Asset Management * Manufacturing Productivity * Financial Risk Our ex) = 7.613 * 0.138 * 0.740 * 12.217 * 0.547 * 0.756 * 0.452 * 0.813 * 1.000 = 1.439 Financial Performance: 7.613 Market Performance: 0.138 Marketing Effectiveness: 0.740 Investment in Future: 12.217 Wealth: 0.547 Human Resource Management: 0.756 Asset Management: 0.452 Manufacturing Productivity: 0.813 Financial Risk: 1.000

True or False? The Recreation segment is willing to pay more than the Speed segment.

False

Which company has the highest market share?

Pure carbon Cycle

True or False? The cumulative balanced scorecard will be computed by taking the average of each performance metric over the final four quarters of play.

True

Can you revise the brand(s) you designed last quarter? Yes No

Yes

In order to most efficiently allocate your marketing & sales budgets, what reports should you take into consideration? a. brand and ad judgments b. sales results c. competitive capacities d. competitive prices e. employee productivity

a. brand and ad judgments b. sales results d. competitive prices

A balanced scorecard (BSC) is used to measure the performance of the simulated business. Which indicators are used in the calculation of the BSC? Choose all that apply a. human resource management b. customer retention c. financial performance d. investment in future

a. human resource management c. financial performance d. investment in future

In the simulation, how can overtime pay be useful for the business? a. it can increase operating capacity if demands exceeds projections b. it can increase the job satisfaction of the workforce c. it can reduce the number of salespeople needed in sales outlets d. it can reduce production cost per unit for the bikes

a. it can increase operating capacity if demands exceeds projections

Which decisions directly impact the promotion of your brands? a. pricing b. fixed capacity increase c. advertising allocation & budget d. demand projection e. rebate

a. pricing c. advertising allocation & budget e. rebate

What is deceptive advertising? a. disappointing customers because you are not claiming the features they were hoping for in a product b. making advertising claims that are untrue

b. making advertising claims that are untrue

How would you define "penetration pricing"? a. offering better prices than the competition b. offering deep price cuts c. offering premium prices d. offering price rebates

b. offering deep price cuts

If a brand rating is less than 70, what should you do with this brand? a. price it lower b. advertise it more c. compare its features to the best rated brand(s) in the targeted segment in order to make adjustments to its design d. give it a higher priority in sales e. discontinue the brand

c. compare its features to the best rated brand(s) in the targeted segment in order to make adjustments to its design e. discontinue the brand

Brand Revenues minus Rebates minus Cost of Goods Sold" is the computation for.. a. net income b. net profit c. gross profit d. profit per unit

c. gross profit

What is considered a good price judgment? a. 80 to 84 b. 85 to 89 c. 90 to 94 d. 95 to 99

d. 95 to 99

In order to create an effective webpage content, what is most important? a. a positive cash balance b. designing attractive brands c. offering the best prices d. designing powerful ads

d. designing powerful ads

True or False? The segment Recreation is more price sensitive than the Speed Segment.

true