Business Policy
Marketing is concerned with the ___________"p's". a. 2 b. 3 c. 4 d. 5
4
Which is a better bond rating? a. DDD b. CC c. A d. AA
AA
When products plot outside the Rough Cut: a. Sales are a little higher b. Sales are a little lower c. Sales are high d. Sales are zero
Sales are zero
As the Automation level is reduced for a product, your company will incur a retooling cost. True False
True
customer buying criteria is found In the Race Track Report a. in the race track report b. On the Perceptual Map c. On a Time line d. in Market Segment Analysis
in market segment analysis
What two product characteristics does the Perceptual Map depict? a. Size and Performance b. Price and MTBF c. Reliability and Performance d. Size and Price wrong answer not sure what is correct answer
size and performance
In Capsim, age refers to: a. The perceived age of the product b. The absolute age of the product c. The age of the raw material d. The age of the customer
the perceived age of the produt
A market segment is a group of customers with similar purchasing concerns. True False
true
After you have uploaded your decisions to the web site, you can change your official decisions as many times as you want prior to the instructor processing the round. True False
true
Capacity must be purchased one year in advance before production can begin. True False
true
Earning Per Share is calculated by dividing Net Profit by the number of shares outstanding. True False
true
If your firm has a low debt/asset ratio, interest rates are near prime. True False
true
In Capsim, each round is the equivalent of one year. True False
true
Increases in the promotion budget will eventually have diminishing returns
true
Increasing the Automation rating will decrease the needed HR complement. True False
true
Low-tech customers do not expect to pay High tech prices. True false
true
Lowering prices increases demand. True False
true
Small size and fast performance best identifies with a high tech product true false
true
The Ideal Spot for High Tech is found by taking the exact center of the circle and subtract 1.4 to the size coordinate then add 1.4 from the performance coordinate. True False
true
The higher the automation rating, the greater the amount of time and money needed to revise the product true false
true
The relative cost of a product's Material increases as: Size is decreased, Performance is increased and MTBF is raised. True False
true
The relative cost of a product's material increases as size is decreased. True False
true
The segments are all drifting towards the lower-right section of the perceptual map because customers want smaller and faster products. True False
true
When opening the Excel version of Foundation ®, you should enable Macros. True False
true
Whenever you change the position/coordinates of one of your products, the customers perceptually cut the product's age in half. True False
true
Whenever you change the position/coordinates of one of your products, the customers perceptually cut the product's age in half. True False
true
when an R&D effort is started in 2001. the product revision takes effect in 2002 true false
true
R&D completion time can be diminished a. by repositioning a product. b. when several products are put into R&D at the same time. c. the more a company changes a product's MTBF. d. None of the above
when several products are put into R&D at the same time
Which of the following is not addressed by R&D? a. Performance b. Size c. Workforce Complement d. None of the above
workforce complement
Decisions are made once per simulated year on what simulated date? a. 31 December b. 01 July c. 01 January d. None of the above
01 January
A product priced $1 above or below the segment guideline loses _____% of its appeal. (Buyers market) a. 5 b. 10 c. 15 d. 20
10
At what dollar amount above the segment guidelines is all consumer appeal lost? a. $3 b. $5 c. $10 d. $20
10
The maximum automation rating on any given production line is a. 3 b. 6 c. 7 d. 10
10
Which Automation rating pushes the revision date out the furthest? a. 1 b. 5 c. 9 d. 10
10
Changing the MTBF for a product has a direct impact on manufacturing cost because: a. MTBF is one factor that drives material costs. Higher MTBF translates into higher material costs (and more reliable products) while lower MTBF translates into lower costs (and less reliable products). b. Higher MTBF means lower prices due to bulk buying c. Higher MTBF increases marketing expenses (upper clientele) d. Higher MTBF changes require lower investments in the factory, which drive up the cost of your product.
MTBF is one factor that drives material costs. Higher MTBF translates into higher material costs (and more reliable products) while lower MTBF translates into lower costs (and less reliable products).
If you are marketing to High Tech customers, which criteria is most important to them in order of importance? a. Positioning, MTBF, Age, Price b. Price, Age, MTBF, Positioning c. MTBF, Positioning, Age, Price d. Positioning, Age, Price, and Reliability
Positioning, age, price and reliability
Foundation breaks decision-making down into four basic functional areas with two optional areas (professor's discretion). What are the six functional areas? a. R & D, Marketing, Production, Finance, HR and TQM (last two are optional) b. Price, Promotion, Planning, Production, Investments (optional), and Programming (optional) c. Position, Price, Reliability, Age, and Rough-cut (optional), and Fine-cut (optional) d. None of the above
R & D, Marketing, Production, Finance, HR and TQM (last two are optional)
On the perceptual map, a product's segment circles drift: a. Left b. Right c. Up & Left d. Down & Right
down & right
What does your company manufacture? a. Flux capacitors b. Electronic sensors c. Micro cyber-chips for war munitions d. Electro-magnetic field suppressors
electronic sensors
A product with a MTBF of 1000 hours below the segment guideline does not lose any of its appeal. (Buyers market) True False
false
All products must be retired in Capsim. True False
false
Changes made in R&D has no affect on the product revision date. True False
false
Changes to product attributes are made when the cells are yellow. true false
false
Decreasing the MTBF will typically increase customer apeal for High Tech consumers. True False
false
High tech customers are willing to pay any price to get the latest and best technology true false
false
If i lower my automation level I will raise my cost to double capacity true false
false
If you have a really lousy product (i.e. poor position, poor age, high price) you can just spend a lot in advertising and sales to make up for it and get the same results as a company with a superior product. True False
false
In Capsim, each team starts off with 2 products. True False
false
In Capsim, the term MTBF means multiple transient business format. True False
false
Paying dividends using debt always has a positive impact on EPS (Earnings Per Share). True False
false
Paying dividends using debt always has a positive impact on EPS (Earnings Per Share). True False
false
R&D completion time depends on just two things: number of projects in R&D & automation rating. True False
false
Taking an Emergency Loan when other alternatives are still available is acceptable business practice in Capsim. True False
false
The Foundation Fast Trackk report (FFR) is generated every other round true false
false
The Ideal Spot is not the area of highest buyer concentration. True False
false
The Low Tech Market segment prefers newer younger products. True False
false
The following are all acceptable ways to raise capital: short term debt, long term debt, C. emergency loan and stock issues. True False
false
The higher the Automation Level, the shorter the R & D completion time. True False
false
The more products your company has in R&D, the earlier the revision date is
false
There are 3 segments in Capsim true false
false
When a product is moved to a new location on the Perceptual Map, the Perceived Age (or Age) is cut by 30%. True False
false
Which segment circle drifts faster? a. Low Tech b. High Tech c. They both move at the same rate d. None of the above
high tech
What happens to a product's Perceived Age when it is repositioned in R&D? a. It is reduced by 30%. b. It is reduced by 50%. c. It is reduced by 10%. d. It remains the same
it is reduced by 50%
There are two market segments that constitute your customer base in Foundation. What are the two segments called? a. Size and Performance b. Price and Performance c. Low Tech and High Tech d. Reliability and Performance
low tech and high tech
My team needs to determine which TQM initiatives best serve _______ ________________ _______________. a. the other teams. b. our company's purpose. c. Green Programs only. d. None of the above
our company's purpose
What is the most important criteria to a "High Tech Segment" customer? a. Price b. Age c. Position d. MTBF
position
What is the most important buying criteria to a "Low Tech Segment" customer? a. Age b. Price c. MTBF d. Positioning
price
Which product attribute do Low Tech customers value the most? a. Age b. Positioning c. Quality d. Price
price
Low Tech customers emphasize buying criteria in which order? a. Price, Reliability, Positioning, Age b. Price, Positioning, Age, Reliability c. Positioning, Age, Price, Reliability d. Price, Age, Reliability, and Position
price, age, reliability and position
During the simulation, your customers' expectations will constantly change. What are your customers going to want? a. Positioning that is way upper right on the Perceptual Map b. Lower MTBF c. Products with smaller size and higher performance d. Products with larger size and higher performance
product with smaller size and higher performance
Adding capacity is purchased by entering a positive value in the: a. Finance page b. R & D page c. Balance Sheet page d. Production page
production page
New products are launched in what functional area? a. Marketing b. Production c. R & D d. Finance
r&d
My team desires to increase our margin per unit. We can: a. Lower the selling price b. Raise the material costs c. Raise the labor costs d. Raise the selling price
raise the selling price
