Marketplace knowledge checks

Suppose a company is generating significantly more demand across all market segments than any other company. Which of the following is most likely responsible for their success?

Developed a portfolio of bikes for each market segment that has high brand and ad judgments and at competitive prices.

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.

Which of the following is TRUE about compensation packages?

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

If all speed bikes in the industry have a price judgment of 100, then everyone has perfectly priced their bike to maximize profitability without losing customers.

False

In the Balanced Scorecard, the Total Performance metric is the same as Financial Performance.

False

Pricing bikes below cost is the best way to create demand in Marketplace.

False

Which balanced scorecard metric is most directly affected by taking out a conventional or emergency loan?

Financial Performance and Risk

Equity financing in the first three quarters of the simulation is __.

$2.5 million for 25,000 shares at $100 per share

The two downsides of taking an emergency loan from the loan share are __:

(1) you will have to pay very high interest rates and (2) the loan shark requires a share of stock for every $100 that the company borrows.

Sales employees designated as Service people will spend __ of their time servicing products and __ of their time selling.

70%, 30%

What are the two most influential measures in the Balanced Scorecard? (Check two):

Investment in the Future, Financial Performance

Given that the Marketplace simulation ends in Q6, why should you continue to invest in R&D and printers in Q6?

It will have a positive impact on the Investment in the Future metric because you are setting up the company for long-term success

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):

Material costs, New features (R&D), 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

At the end of Q2, it was reasonable to have very little or negative profits (losses). This is because __.

The industry is in the embryonic phase of the industry life cycle. Therefore demand and revenue is low compared to the expenses of starting and growing the business.

After the test market phase is finished (after Q3), you should be earning a profit on every unit you sell.

True

The purpose of creating a tactical plan is to _______ (select all that apply)

outline the order of tasks over time and across functions, identify the necessary tasks to make the company's strategy a reality, define specific actions your company plans to take in the future, map out the path to achieving the company's goals

Proforma financial statements allow your firm to__:

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

When a company brings new research and development (R&D) features to market their brand designs, ____.

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

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 Cost to Open New Stores & Web Sales Centers, Cumulative Depreciation, Cumulative R&D Investment in New Brand Features &New Brands, Cumulative R&D Licenses, Cumulative Net Revenues (Cumulative Sales Revenue - Cumulative Rebates)

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 market performance in the Balanced Scorecard?

If the team has a high average market share in their primary and secondary market segments and is able to meet the demand without stock-outs.

Which of the following might be appropriate actions if you are concerned about limited operating capacity?

Improve compensation packages for production workers, Focus on driving demand toward most profitable brands, Increase prices

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 total compensation packages for production workers

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

Operating capacity slightly less than fixed capacity