Marketplace Exam

T/F: If your team does not have a clear strategic direction established by Quarter 4, your team will probably not have an opportunity to catch up with the leading firms in the industry.

True

What is the minimum Brand Judgment score needed to service the market? a. 70 b. 50 c. 80 d. 90

a. 70

Which of the following are calculated in the Investment in the Future metric of the Balanced Scorecard? (Check all that apply): a. Cumulative Cost to Open New Stores b. Cumulative Market Share c. Cumulative RD Investment d. Cumulative Depreciation

a. Cumulative Cost to Open New Stores, c. Cumulative RD Investment d. Cumulative Depreciation

The maximum number of units your production facility can produce each day is called _____; whereas _____ determines the number of workers to employ, and thus, the number of units that are produced each day. a. Fixed capacity; Operating capacity b. Operating capacity; Demand forecast c. Operating capacity; Fixed capacity d. Demand forecast; Fixed capacity

a. Fixed capacity; Operating capacity

Of the factors listed below, identify the one that is LEAST relevant in setting your operational capacity each quarter. a. New R&D features in bikes to be produced this quarter b. Overall demand forecast for this quarter c. Employee productivity d. Fixed capacity available this quarter

a. New R&D features in bikes to be produced this quarter

The maximum number of units your production facility can produce each day with perfect efficiency is called _____; whereas _____ determines the number units that needed based on demand and the number of workers to hire, and _________ is based on the productivity of workers. a. fixed capacity; operating capacity, effective operating capacity b. demand forecast; fixed capacity, operating capacity c. fixed capacity, operating capacity; demand forecast d. operating capacity; fixed capacity, effective operating capacity

a. fixed capacity; operating capacity, effective operating capacity

Which of the following is TRUE about Brand Design? a. Speed and having a lightweight frame are the primary needs and wants for customers across all market segments b. Each market segment evaluates features based on its unique needs and wants, so not all bike features will appeal to all market segments c. Comfort and ease of use are the primary design considerations for customers across all market segments d. Expensive, high-end features appeal equally to customers across all market segments

b. Each market segment evaluates features based on its unique needs and wants, so not all bike features will appeal to all market segments

The Financial Performance score in the Balanced Scorecard is a function of a. Operating profit divided by total equity (basically return on equity) b. Gross profit, operating profit, and quarterly investment in the future c. Retained Earnings and Cash Flow d. Earnings per share

b. Gross profit, operating profit, and quarterly investment in the future

The primary objective of the Brand Management effort in Marketplace is to...: a. Introduce you to some of the trade-offs inherent in production planning, and to see how they relate to the broader strategic decisions of the firm b. Help you understand the relationship between the abstract benefits sought by customers and the physical components included in the brands designed by your firm. c. Force you to think through the tradeoffs inherent in advertising and promotion planning, to see how advertising relates to the broader strategic decisions of the firm d. Give you experience in the study and evaluation of market opportunities

b. Help you understand the relationship between the abstract benefits sought by customers and the physical components included in the brands designed by your firm

If you invest in additional fixed capacity in Quarter 2, when will you be able to start using those new machines to produce additional bike units? a. Quarter 2 b. Quarter 3 c. Quarter 5 d. Quarter 4

b. Quarter 3

At the end of Q1, you can expect to have negative profits (losses). This is because...: a. The company has borrowed too much money b. The company doesn't have any bikes to sell at the end of Q1 c. The company has not correctly designed a bike to fit the target market d. The company has held too much cash

b. The company doesn't have any bikes to sell at the end of Q1

At the end of the 4th quarter, the company will be able to borrow money from the bank. The Line of Credit from the bank is a function of which of the following elements? a. The pro-forma income statement and the pro-forma balance sheet b. The equity of the firm minus any current debt c. The current ratio and the profit margin d. Return on investment and return on assets

b. The equity of the firm minus any current debt

Pro Forma statements allow...: a. your firm to see how it compares against industry benchmarks b. your firm to see the tentative effect of your decisions on your cash flows, income statement, and balance sheet c. your firm to layout its tactical plan

b. your firm to see the tentative effect of your decisions on your cash flows, income statement, and balance sheet

The Manufacturing Productivity score in the Balanced Scorecard will reward which of the following decisions a. Maximizing the total fixed operating capacity. b. Decreasing the worker productivity percentage. c. Accurate estimates of operating capacity available and used in the quarter d. Use of overtime to expand the firm's operating capacity.

c. Accurate estimates of operating capacity available and used in the quarter

When creating a Market Opportunity Analysis (MOA), which of the following would you include in that process? a. Identify patterns between segments b. Prepare a market profile for each segment c. All of these d. Look for patterns within and between segments

c. All of these

Suppose that your team is struggling to generate demand each quarter. Which of the following actions is LEAST LIKELY to have a positive impact on generating demand? a. Improve advertisements b. Improve total compensation packages of sales employees c. Improve total compensation packages for production workers d. Offer more competitive prices

c. Improve total compensation packages for production workers

The primary purpose of the Manufacturing decisions in Marketplace is to...: a. Help you understand the relationship between the abstract benefits sought by customers and the physical components which can be produced in the production facility b. Give you experience in the study and evaluation of market opportunities c. Introduce you to some of the trade-offs inherent in production planning, and to see how they relate to the broader strategic decisions of the firm d. Force you to think through the tradeoffs inherent in advertising and promotion planning, to see how advertising relates to the broader strategic decisions of the firm

c. Introduce you to some of the trade-offs inherent in production planning, and to see how they relate to the broader strategic decisions of the firm

When designing ads, you have the option to claim your company has the "Highest rated" bike in any segment (Rec, Mtn, or Spd). Which of the following must be true in order to make this claim? a. The brand must have been the highest rated in the corresponding segment (Rec, Mtn, Spd) in all prior quarters b. The brand must have had the highest gross profit in the previous quarter c. The brand must have been the highest rated in the corresponding segment (Rec, Mtn, Spd) in the previous quarter d. The company must have sold the most bikes in the previous quarter

c. The brand must have been the highest rated in the corresponding segment (Rec, Mtn, Spd) in the previous quarter

Employees designated as Service people will spend ___________ of their time servicing products and __________ of their time selling. a. 50%, 50% b. 100%, 0% c. 95%, 5% d. 70%, 30%

d. 70%, 30%

In the Balanced Scorecard, which of the following listed elements has the biggest potential impact (mathematically) on the total score OTHER than Financial Performance? a. Financial Risk b. Market Effectiveness c. Manufacturing Productivity d. Investment in the Future

d. Investment in the Future

Which of the following is NOT a major decision that must be made in the Brand Management area of Marketplace? a. Brand names (selecting brand names that project a defined image, purpose, or benefit of a brand) b. Brand designs (how many brands, and what features to include on each brand) c. Research and development (choosing RD investments, and incorporating new features into future bike brands) d. Scheduling production capacity (forecasting demand, deciding which bands to produce, and setting operating capacity)

d. Scheduling production capacity (forecasting demand, deciding which brands to produce, and setting operating capacity)

The key to estimating demand for any given quarter is to estimate: a. The number of brands that will be produced, multiplied by the number of sales people employed for that quarter b. The maximum number of units that could be produced in that quarter, minus losses due to low employee morale c. The number of brands that will be produced, multiplied by 1/5 the potential demand in each geographical sales region d. The number of units each sales person is likely to sell, multiplied by the number of sales people employed for that quarter

d. The number of units each sales person is likely to sell, multiplied by the number of sales people employed for that quarter

One tool the VP of Manufacturing has to mitigate risk in having stockouts is to use overtime, even though it is more costly. What is the impact of overtime on the Manufacturing Productivity measure of the Balanced Scorecard? a. Overtime could drive the Productivity score over 1.0 which is a bad thing. b. It actually improves Productivity by optimizing the availability of a fixed asset, in this case, the number of printers. c. There is ONLY a penalty incurred if you over-plan for operating capacity. d. There is a penalty equal to half the overtime required because overtime causes productivity to suffer.

d. There is a penalty equal to half the overtime required because overtime causes productivity to suffer.

To increase the demand for your products, which of the following are good strategies? a. Effective brand designs and pricing b. Providing the salesforce with specialty training c. Setting competitive compensation packages for salespeople d. Effective advertising e. All of the above

e. All of the above