Ch 18 Quiz
In making the decision between hiring a greater number of temporary workers and partnering with a tutoring and testing outsourcing firm, all of the following questions would be relevant EXCEPT:
Would TLS have any staff shortages if it limited itself to offering academic tutoring?
A Chinese company recently acquired the Zoomer brand of vehicles. Compared to other vehicles, Zoomers are expensive and are not fuel efficient. Which of the following, if true, would most support the Chinese company's decision to acquire Zoomer and promote it in the Chinese market?
A growing economic class views expensive cars as an indication of wealth and prestige.
Which of the following, if true, would strengthen the Kryptos CEO's argument?
At Kryptos, Accounting, Operations, and Human Resources are among the departments that already have the capacity to serve a much larger organization.
Which of the following, if true, would undermine the Kryptos CEO's argument?
Customers have strong connections to their Domino Grace brokers but little loyalty to Domino Grace as a company.
Tarnopol Learning Services (TLS) offers tutoring to high school students, college students, and adults returning to school. TLS's major product offerings include academic tutoring, standardized test preparation, and admissions consulting. Demand for standardized test preparation, which accounts for the majority of TLS's revenues, peaks before the most popular test dates. Demand for admissions consulting peaks late in the year, just before application deadlines. Demand for tutoring services varies less than demand for other TLS services, but it is highest near the end of academic semesters. Staff shortages during these times have been a persistent problem. In response, TLS is considering whether to 1) recruit and train a greater number of temporary workers during peak demand times; or 2) partner with a tutoring and testing outsourcing firm that would provide services to TLS customers using the TLS brand. An executive at TLS believes that the best way to measure the number of extra employees that TLS needs is to estimate the number of extra employees each product category requires and then add all of those estimates together. Which of the following points out a flaw in this approach?
It fails to account for the possibility that significant numbers of potential employees could work in different product categories.
Which of the following, if true, would most strongly support the Domino Grace CEO's argument?
Kryptos provides paths to advancement that are faster than those offered by most companies in the industry.
Domino Grace is a financial services firm. Currently, it offers competitive salaries and very generous benefit packages. The cost of those packages is very high, but the company believes that these benefits have helped it attract and keep top talent. Domino Grace is completing a merger with Kryptos, Inc. Salaries at Kryptos are slightly below industry averages, and the benefit packages it offers are considerably worse than those offered by Domino Grace. Domino Grace believes that the merger would be in the best interest of the company, but employees at Domino Grace are resisting this change in part because they are worried that they will lose their outstanding benefits after a merger is complete. The CEO of Domino Grace believes that the best way to overcome the employees' resistance to change is through education and communication. The Kryptos CEO believes that it will be necessary to force the employees to accept the changes. Which of the following, if true, would most weaken the Domino Grace CEO's argument?
Kryptos' latest offer involves paying a higher price to Domino Grace shareholders if the combined company adopts Kryptos' benefits policy.
Which of the following, if true, would form the strongest basis for a criticism of Tata's positioning of the Nano?
New highway regulations in India will require new cars to have a maximum speed of at least 80 percent of the maximum speed of most cars on the road.
An industry analyst examines the features of the Tata Nano and concludes that Tata will never be able to compete in the U.S. or European markets. This conclusion rests on which of the following assumptions?
Tata would not adjust its designs if it attempted to sell cars in the U.S. or Europe.
In the past, only India's elite could afford to buy a car. But recent dramatic changes in India's economy have produced a growing middle class and rapidly rising incomes. Now, to meet the new demand, established automakers are introducing smaller, more-affordable vehicles into India. But they will have to find a way to compete with India's Tata Motors, which has unveiled the least expensive car ever in this market, the Tata Nano. The Nano sells for only 100,000 rupees (about US $2,200). It seats four passengers, gets 50 miles per gallon, and travels at a top speed of 60 miles per hour. Based on the information above, Tata most likely believed that as a result of recent changes in India's economy, a growing number of Indian consumers ________.
would be willing and able to spend 100,000 rupees on a car
