Marketplace exam-- knowledge checks

Select the statements that correctly complete the sentence. The purpose of creating a tactical plan is to... -outline the order of tasks over time and across functions -identify all the things to do to realize the company's strategy -define specific actions your company is going to take -map out the path to achieving the company's goals

All of these are correct

Which of the following is TRUE about Brand Design?

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

During Q4, in what phase of the S-Curve framework is carbon fiber bicycle industry?

Early Growth

Which of the following is TRUE about compensation packages?

Employees are likely to be more productive if they are satisfied with their compensation.

Starting in Q4, 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?

Equity of the firm and current liabilities

Pricing bikes below cost is the best way to create demand in Marketplace. -True or False

False

Salary is always the most important component of the compensation package -True or False

False

The total cash available from equity financing in the first 3 quarters of the simulation is...:

$2,500,000

Employees designated as Service people will spend ___________ of their time servicing products and __________ of their time selling.

70%, 30%

You have 27 total salespeople in your bricks and mortar stores. For two quarters, their productivity has remained at around 60 bikes per person. You get some market research data that leads you to believe that a competitor, who has only 21 salespeople is able to get them to sell 80 bikes per person. Your employee satisfaction score is 75.3 while theirs is 82.9. Finally, your price judgment for your brands is 100 for Recreation, 100 for Mountain, and 100 for Speed while your competitor's price judgments are 98, 96, and 98 respectively. Your overall gross margins are about 42%. What strategies might you employ to increase the productivity of your salespeople? (check all that apply): -Raise prices -Adjust compensation to be more competitive -Increase projected demand without making any other changes -Consider reducing the salesforce by 3 or 4 people

Adjust compensation to be more competitive,Consider reducing the salesforce by 3 or 4 people

Which statement about the tactical plan process is in the recommended order?

After completing the Q4 decisions, load the Q4 data into the tactical plan, the vice presidents consider how all areas of the tactical plan are interconnected as they collaborate to fill out the Q5 column, doing the same for the Q6 column, go to the pro forma cash flow statement, import the tactical plan information, evaluate the cash balance and conventional loan needs.

Pro Forma statements allow...:

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

Select the situations when it is advisable to take a conventional bank loan? -The VP of Finance wants a margin of safety because there is $200,000 ending cash balance on the pro forma cash flow statement after all decisions are completed for the quarter instead of the $300,000 ending cash balance that is recommended. -In Q4, the executive team selects to invest in R&D to create enriched carbon fiber for a new line of bikes it wants to sell in Q5, but there is insufficient cash available. -Purchasing four additional printers in Q5 will keep the company's fixed capacity ahead of anticipated growth in demand to avoid stockouts and excessive use of overtime, but it would mean cutting the advertising budget or hiring fewer workers.

In Q4, the executive team selects to invest in R&D to create enriched carbon fiber for a new line of bikes it wants to sell in Q5, but there is insufficient cash available. Purchasing four additional printers in Q5 will keep the company's fixed capacity ahead of anticipated growth in demand to avoid stockouts and excessive use of overtime, but it would mean cutting the advertising budget or hiring fewer workers.

What are the two most influential measures in the Balanced Scorecard? (Check two): -Asset Management -Investment in the Future -Financial Performance -Financial Risk

Investment in the Future, Financial Performance

Which statement is correct? -Market research data collected during the current quarter is available to you at the start of the next quarter. -None of these -Market research data collected during the current quarter is available to you during this quarter. -Market research data collected during the next quarter is available to you during this quarter.

Market research data collected during the current quarter is available to you at the start of the next quarter.

While evaluating the tactical plan shown above, an investor notes several questions to ask as follow up when meeting with the company's executive team. Your job is to match the investor's question with the statement that best describes what the investor saw in the tactical plan that prompted the question. The Q5 plan does not look like it is designed for aggressive growth.

Marketing and advertising expenditures do not indicate a logical progression

A useful method to track expenses related to your brands is called Activity Based Costing or ABC. Certain costs are allocated across the firm while others should be tracked to the profitability of each brand. Which of the following costs should be tracked to the brand as an ABC method (check all that apply): -Interest expense -Material costs -New features (RD) -Production costs

Material costs, Production costs

Of the factors listed below, identify the one that is LEAST relevant in setting your operational capacity each quarter.

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

While evaluating the tactical plan shown above, an investor notes several questions to ask as follow up when meeting with the company's executive team. Your job is to match the investor's question with the statement that best describes what the investor saw in the tactical plan that prompted the question. Why are you bothering to invest in R&D?

New brands are not added and prices do not change Q4-Q6

What can we assume about the Total Market Potential data provided in Marketplace? -Estimates provided are reliable -Buying intentions are considered accurate -Purchase rates are highly predictable -None of these

None of these

While evaluating the tactical plan shown above, an investor notes several questions to ask as follow up when meeting with the company's executive team. Your job is to match the investor's question with the statement that best describes what the investor saw in the tactical plan that prompted the question. Does the company plan to become 100% e-commerce?

Store expenses are missing for Q6

At the end of Q1, you can expect to have negative profits (losses). This is because...:

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

After the test market phase is finished, you should be earning a profit on every unit you sell -True or False

True

The two downsides of taking an emergency loan from the loan shark are...:

You will have to pay very high interest rates, and the loan shark also requires a share of stock for every $100 that the company borrows.

While evaluating the tactical plan shown above, an investor notes several questions to ask as follow up when meeting with the company's executive team. Your job is to match the investor's question with the statement that best describes what the investor saw in the tactical plan that prompted the question. How will the planned work get accomplished if there isn't a budget allocation?

Brand feature R&D projects are listed for Q6and expense are not included

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

Cumulative RD Investment, Cumulative Cost to Open New Stores, Cumulative Cost to Open New Stores, Cumulative Depreciation

When a company brings new research and development (R&D) features to market in their brand designs:

Customers may be willing to pay more for bikes with the new R&D

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.

Fixed capacity; Operating capacity

Which of the following will give your team the best score in marketing performance in the Balanced Scorecard?

If the majority of the team's sales are in their primary target market and the 2nd largest amount of sales is in their secondary target market.

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? -Improve advertisements -Improve total compensation packages of sales employees -Improve total compensation packages for production workers -Offer more competitive prices

Improve total compensation packages for production workers

Which of the following statements is the most optimal setting for your manufacturing facility?

Operating capacity less than fixed capacity