CAPSIM

What percentage of additional awareness does the first $1,500,000 increase in promotion budget buy? (Hint: see curve on p. 13 of the Guide.) 10% 36% 20% 40% 50%

36%

Repositioning moves a product on the Perceptual Map from its old location to a new one. When does the new location become active? The day capacity and automation is purchased The year after the R&D project completes The month the R&D project completes The day the R&D project completes The day capacity is purchased

The day the R&D project completes.

A production line with 1000 units of capacity has a max production capability of: as many as needed. 2500 1500 2000 1000

2000

Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will be lost? 67% 50% 33% 0% none of the above

33%

A company can produce up to ______ products. 8 7 9 6 5

8

Which of the following is not a type of market segment in CapSim? Size None of the above Standard Performance Traditional

Standard

When a product is moved to a new location on the Perceptual Map, the Perceived Age (or Age) is: divided in half. tripled. other. doubled. not affected.

divided in half.

If a product's Automation rating is substantially increased, it will: take a shorter time to move the product across the Perceptual Map. other. have no effect on the product moving across the Perceptual Map. not allow the product to move across the Perceptual Map. take longer to move the product across the Perceptual Map.

take longer to move the product across the Perceptual Map.

The higher a company's automation level, the lower a company's labor costs. the easier it becomes to reposition products short distances. none of the above. the higher second shift labor wages. the more difficult it becomes to move a product long distances.

the lower a company's labor costs.

How much is the electronic sensor company worth at the beginning of the game? $1,000 $1,000,000 $100,000,000 $1,000,000,000 $10,000,000

$1,000,000

What is the sales revenue and type of company used in CapSim? $100 billion electronic sensor company $100 trillion electronic sensor company $100 million automotive part company $100 billion electronics manufacturer $100 million electronic sensor company

$100 million electronic sensor company

At what dollar amount above the segment guidelines is all consumer appeal lost? $20 none of the above $3 $10 $5

$5

The situation analysis consists of ______ parts. 5 3 7 4 6

5

How can assembly lines double their capacity? Add a second shift. Assembly lines cannot be doubled. Build more assembly lines. Double the material. Speed up the production.

Add a second shift.

What are three of the five market Segments? Traditional, Low End, Cost Median, Size, High End Traditional, Low End, Performance Low End, High End, Median Performance, Size, Cost

Traditional, Low End, Performance

What section of the perceptual map is considered ideal for the low end segment? Lower Right Middle Upper Right Lower Left Upper Left

Upper Left

Which of the following is true? Low End segment emphasizes the price criteria. Only a and b are true. Traditional segment emphasizes the age criteria. All of the above are true. High End and Performance emphasizes positioning.

All of the above are true.

Once you upload your official decisions during a round, how many times can you change them before the end of the round? 2 As many times as you want 5 1 0

As many times as you want

Which of the following is not one of the five parts to the Situation Analysis: Perceptual Map. Demand Analysis. Capacity Analysis. Consumer Report Forecasting Analysis.

Forecasting Analysis.

If the previous year you reached 100% customer awareness in your company, this year what will you need to do to maintain this level? I need to spend at least half of the money spent the previous year to reach 75% of the population. None of the above is relevant. I would only need to create 33% new awareness to maintain 100% this year. Spend the same amount of money spent the previous year to reach the same percentage of awareness this year. There is nothing to do. I have already reached as much awareness as I could.

I would only need to create 33% new awareness to maintain 100% this year.

New products are created on which spreadsheet? Research and Development Marketing Market Research and Analysis New Products and Repositioning Production

Research and Development

The automation level causes you to require less man power with lower ratings. causes you to require less man power with higher ratings. causes you to require more man power with lower ratings. causes you to require more man power with higher ratings. both b and c.

causes you to require less man power with higher ratings.

When an R&D effort started in 2001 completes on September 15, 2002, the product revision kicks in immediately upon completion. January 1, 2003 September 15, 2003 October 1, 2002 R&D has no effect on product revisions.

x October 1, 2002. September 15, 2003

Which customer group or market segment seeks proven products using current technology? Performance customers Size customers High End customers Low End customers Traditional customers

x Performance customers Traditional customers Low end customers

Small size and fast performance characterize which segment? Low End Traditional High End Size Performance

x Size. High end

The promotion budget affects: brand equity. performance. none of the above. awareness. size.

awareness.

What are the three types of R&D projects? Reliability adjustment Improvement b, c, d Repositioning Invention

b, c, d

The marketing spreadsheet is used to set which of the following: none of the above. promotion budgets. sales budgets. prices. all of the above.

all of the above.

The situation analysis is all of the above. designed to help your group understand how the industry will evolve over the next eight years. designed to help your group understand the current market conditions. a five part analysis.

all of the above.

Which Automation rating requires the longest time to reposition a product? 10 9 7 1 3

10

There is ______ lag in buying new Capacity and ______ lag in changing Automation. 1 year; 1 year 0; 0 ½ year; ½ year 1 year; 0 0; 1 year

1 year; 1 year

Stock price is a function of: Book value, Earnings per Share, and Dividend. Earnings per Share, Dividend, and Net Profit. Earnings per Share, Dividend, and Retained Earnings. Book value, Earnings per Share, and Net Profit. Book value, Dividend, and Retained Earnings.

Book value, Earnings per Share, and Dividend.

The segments are all drifting to the lower-right section of the perceptual map. Why does this drift take place? Customers want newer and faster products. Customers want smaller and faster products. Customers want reliable and affordable products. Customers want smaller and less expensive products. None of the above.

Customers want smaller and faster products.

Which of the following is true about the Accounts Receivable Lag and its implications for teh customer survey score? At 30 days, demand is 90%. At 90 days, demand is 100%. If you offer no credit, demand falls to about 60% of maximum. At 45 days, demand is 95%. At 60 days, demand is 98.5%.

If you offer no credit, demand falls to about 60% of maximum.

Which one is not an area in which Capstone® separates company activities? Production Finance Marketing Logistics R&D

Logistics

Large size and slow performance characterize which segment? High End Performance Traditional Low End Regular

Low End

Which customer group or market segment seeks proven products, are indifferent to technological sophistication, and are price motivated? Low End customers High End customers Traditional customers Performance customers Size customers

Low End customers

The relative cost of a product's material cost increases as: performance is decreased. automation stays the same. a and c MTBF is raised. size is increased.

MTBF is raised.

Which report found in the Capstone® Courier contains numeric and graphical sales information for all products? Market Share Report Financial Analysis Market Share Actual vs. Potential Perceptual Report All of the above

Market Share Report

How many products does every team start with? None of the above Ten Four One One for each market segment

One for each market segment

If your team decides to introduce a new product, when should capacity and automation be purchased? The round after product release Two rounds prior to product release The round of product release Purchase of capacity and automation is not necessary for new product release One round prior to product release

One round prior to product release

The two characteristics that the perceptual map evaluates are none of the above. Performance and Size. Size and Price. Performance and Price. Reliability and Performance.

Performance and Size.

Which customer group or market segment seeks high reliability, advanced technology products that emphasize high performance? Size customers High End customers Traditional customers Performance customers Low End customers

Performance customers

What is one draw-back of increasing automation? Operating second shift becomes more expensive. Automation causes large leaps in repositioning. The product requires Increased time/expense for subsequent short-move repositioning. Automation slows production capability. It requires more employees for the production line.

The product requires Increased time/expense for subsequent short-move repositioning.

The Capstone® Courier is: a workbook with seven pull down menus. a 12-page financial report from the past. all of the above. a 3-page annual report from the year just ended. a list of Proforma reports.

a 12-page financial report from the past.

Each segment places some emphasis on performance and some on size. a different emphasis on the 4 buying criteria. a different emphasis on the 8 buying criteria. both c and d. some emphasis on price and some emphasis on reliability.

a different emphasis on the 4 buying criteria.

Teams that do not win usually demonstrate that they compromise between two competing business strategies. they engage in group think. one or more team members are quietly shunned for various reasons. they are dominated by one individual. all of the above.

all of the above.

Capital needed for company activities cannot be acquired through: profits. current debt. all of the above. arbitrarily firing employees. stocks and bonds.

arbitrarily firing employees.

Team members may address all of the following except ___________ in Research and Development: age of your products. placement of each product inside a market segment circle. reliability of each product. automation of assembly lines. number of products in each segment.

automation of assembly lines.

Capacity is sold by entering a null value in the Buy/Sell row on the Production Spreadsheet. entering a positive number in the Buy/Sell row on the Production Spreadsheet. entering a negative number in the Buy/Sell row on the Marketing Spreadsheet. entering a negative number in the Buy/Sell row on the Production Spreadsheet. entering a zero in the Buy/Sell row on the Production Spreadsheet.

entering a negative number in the Buy/Sell row on the Production Spreadsheet.

If you reduce automation in the Production department, you will: incur a retooling cost. pay money to make your plant more efficient. lose the game. none of the above. slow down R&D designs.

incur a retooling cost.

If you purchase production capacity and automation: it is available in 6 months. it is available immediately. none of the above. it is available when you need it. it is available in the next year.

it is available in the next year.

Rapid movement of an existing product on the Perceptual Map requires none of the above. high automation levels. low automation levels. reliability adjustment.

low automation levels.

A change in MTBF affects: none of the above. age. material cost. positioning. project management.

material cost.

For successful teamwork, the Capstone® Team Member Guide advises every team to not to organize group sessions and team work so that group meetings are as flexible and spontaneous as possible. have at least two business strategies for choice. have one dominating leader. engage in group think. none of the above.

none of the above.

Each round is the equivalent of one quarter. two years. one-half year. one year. none of the above.

one year.

Inside each fine cut circle, segments have an ideal spot where demand is at its highest. none of the above. product segments strive to be near the boundaries. product segments strive to be in the center. demand is at its highest as long as product segments are within the circle.

segments have an ideal spot where demand is at its highest.

A bond with the number 12.6S05 indicates that: the interest rate I 12%; due in June 2005. the interest rate is 5%; due on December 6. the interest rate is 12.6%; due on December 31, 2005. the interest rate is 12.6%; due in May. the interest rate is 12%; due on June 05.

the interest rate is 12.6%; due on December 31, 2005.

R&D projects for existing products can lower the actual shelf life of products. change the MTBF specifications to match the needs of the segment. none of the above. all of the above. control product placement on the Perceptual Map.

x change the MTBF specifications to match the needs of the segment. control product placement on the Perceptual Map.

In which segment is proximity to the Ideal Spot particularly important? in high technology segments. in low technology segments. in quality-oriented segments. in price-oriented segments. in all customer segments.

x in all customer segments. in high technology segments

The Traditional ideal spot is near the upper-right of its circle. near the lower-right of its circle. near the center of its circle. near the lower-left of its circle. near the upper-left corner of its circle.

x near the lower-right of its circle. near the center of its circle.

R&D completion time can be diminished when several products are put into R&D at the same time. by repositioning a product. none of the above. when a company takes advantage of existing technology. the more a company changes a product's MTBF.

x when several products are put into R&D at the same time. when a company takes advantage of existing technology.

The preferred product perceived age for each sector peaks at: one year for high end and three years for low end. zero years for high end and seven years for low end. one year for high end and five years for low end. zero years for high end and three years for low end. each segment wants a perceived age of zero.

zero years for high end and seven years for low end.