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CapSim Word Study Guide

1. When opening the Excel version of Capstone, you should do what to Macros? a. Enable b. isable c. Engage d. isar! e. oes not !atter #f there are two identical products, one that has 1$$% accessibility and one that has $% accessibility, a. the one with $% accessibility will not sell at all because consu!ers can&t find it. b. the product with 100% accessibility will outsell the other 2 to 1 providing all other attributes are identical. c. the one with $% accessibility will not sell at all because consu!ers do not 'now of it. d. the product with $% accessibility will only sell after all other products have sold in that seg!ent. e. the product with 1$$% accessibility will outsell the other ( to 1 providing all other attributes are identical. )ow !any products does every tea! start with? a. *ne product b. +our products c. ,en products d. ive products e. -one of the above What are three of the five /eg!ents? a. !raditional" #ow End" $er%ormance b. ,raditional, 0ow End, Cost End c. 0ow End, )igh End, !iddle End d. Median, /i1e, )igh End e. 2erfor!ance, /i1e, Cost 4 seg!ent !anager&s tas' is to a. decide which products enter the seg!ent. b. veri%y the products entering and leaving a segment" the margin potential %or those products" capacity level and the distribution system as compared to competitors. c. review !argin potential for each seg!ent and evaluate the capacity for each seg!ent co!pared to the co!petition. d. evaluate the capacity for each seg!ent based on total de!and and the co!petitor&s capacity5 evaluate the !argin potential of all products and the distribution syste!s. e. none of the above. What is the difference between the !ar'et seg!ents at the beginning of the round to the final round? a. ,hey all drift at an average rate of .75 down and to the right. b. !he %ine cuts overlap in the beginning and in year &' only the rough cuts overlap. c. ,he fine and rough cuts overlap in the beginning and by round 8 neither the fine nor rough cuts overlap. d. ,he traditional and low seg!ent rough cuts overlap but all the re!aining seg!ents do not. e. ,he )igh, ,raditional and 0ow seg!ent rough cuts overlap but all the re!aining seg!ents do not. #n order for a tea! to win at Cap/i!, they need to a. have a proactive strategy and contingency plan in place. b. have a contingency plan, a proactive strategy, open co!!unications and the ability to !a'e ad9ust!ents in a dyna!ic !ar'et. c. !onitor the other tea!s and then head into the areas that are not being used by the other tea!s. d. have a proactive strategy" contingency plan" open communications" strong (nowledge o% the industry and have a strong understanding o% the analyst report. e. have a strategy in place and be ready to co!pletely change it in round . if it isn&t wor'ing.

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4fter you have uploaded your decisions to the website, you can change your official decisions as !any ti!es as you want prior to the processing date and ti!e of the round. a. !rue b. +alse *nce you upload your official decisions during a round, how !any ti!es can you change the! before the end of the round? a. $ b. 1 c. " d. 3 e. )s many times as you want What trend can be explicitly observed in the industry in which your co!pany is operating? a. More and !ore products are sold directly to the private end consu!er. b. 2roducts beco!e !ore and !ore expensive. c. $roducts become smaller and smaller. d. Custo!ers show less and less brand loyalty. e. 4ll of the above. ,he econo!ic environ!ent for this si!ulation ga!e will include a. a favorable environ!ent featuring li!ited growth, high inflation, and reasonable interest rates. b. a %avorable environment %eaturing modest growth" low in%lation" and reasonable interest rates. c. a highly variable environ!ent featuring significant changes in growth, inflation, and drastic fluctuations in interest rates. d. a constant environ!ent featuring !easurable growth, constant inflation rates, and constant interest rates. e. econo!ic downturn and other surprises. M,;+ is !easured in a. day incre!ents. b. hour increments. c. !inute incre!ents. d. ($<!inute incre!ents. e. 13<!inute incre!ents. Custo!ers that want low prices and are willing to sacrifice !iniaturi1ation and perfor!ance are in the a. traditional seg!ent. b. high End seg!ent. c. low End segment. d. perfor!ance seg!ent. e. si1e seg!ent. Custo!ers that want s!all products and are willing to sacrifice perfor!ance are in the a. traditional seg!ent. b. high End seg!ent. c. low End seg!ent. d. perfor!ance seg!ent. e. si*e segment. #n Capstone=, pricing standards are set by> a. Customers +,ar(et Segment-. b. Co!petitors. c. ?ou, ,he Co!pany. d. a range of the prices fro! all ,ea!s. e. @ando! /election.

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#n the @ough Cut buying stage, AreliabilityB is expressed in ter!s of> a. ,ean !ime .etween ailure. b. how long the product will last. c. years. d. !onths. e. Mean ,i!e ;efore +ailure. M,;+ !easures what? a. 2rice b. 2erfor!ance c. /eliability d. Size e. Market Segment ,he two characteristics that the perceptual !ap evaluates are a. $er%ormance and Si*e. b. 2erfor!ance and 2rice. c. /i1e and 2rice. d. @eliability and 2erfor!ance. e. none of the above. ,he 2erceptual Map is a. a mar(eting tool used to compare products against customer perceptions. b. a !ar'eting tool used to co!pare perfor!ance against si1e. c. a !ar'eting tool used to co!pare reliability against price. d. a !ar'eting tool used to co!pare age against position. e. a !ar'eting tool used to co!pare ti!e against !otion. ,he seg!ents all drift to the lower<right section of the perceptual !ap. Why does this drift ta'e place? a. Custo!ers want s!aller and less expensive products. b. Custo!ers want reliable and affordable products. c. Customers want smaller and %aster products. d. Custo!ers want newer and faster products. e. -one of the above. *ver ti!e, the seg!ents will drift in which direction on the 2erceptual Map? a. up5 left b. up5 right c. down5 left d. down' right e. will re!ain still and constant When trac'ing !ar'et seg!ents on the perfor!ance and si1e perceptual !ap, which seg!ent !oves or AdriftsB the slowest? a. #ow b. ,raditional c. /i1e d. 2erfor!ance e. )igh

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What happens to a product priced at C1 above or below the seg!ent guideline when a seg!ent&s product supply outstrips de!and? a. #t loses "3% of its appeal. b. #t loses 1$% of its appeal. c. 0t loses 20% o% its appeal. d. #t loses 13% of its appeal. e. -one of the above. What&s the !easure for product reliability? a. @eturn rates of products sold b. Custo!ers& happiness state!ents c. E1pected time a product lasts d. 2rice e. 4ll of the above 4t what dollar a!ount above the seg!ent guidelines is all consu!er appeal lost? a. C( b. 23 c. C1$ d. C"$ e. -one of the above ,he prices in each seg!ent a. drop by 20.30 each year. b. drop by C1.$$ each year. c. increase by C$.3$ each year. d. vary depending upon relative !ar'et de!and. e. re!ain constant in each seg!ent. M,;+ in the seg!ents should be a. M,;+ D2erfor!anceE F M,;+ D)igh EndE. b. M,;+ D0ow EndE F M,;+ D)igh EndE. c. M,;+ D0ow EndE G M,;+ D/i1eE. d. a, b, and c. e. only a and c. Which of the following are not considered in the +ine Cut? a. 2ositioning b. )utomation c. 4ge d. @eliability e. 2rice #nside each fine cut circle, a. segments have an ideal spot where demand is at its highest. b. product seg!ents strive to be in the center. c. product seg!ents strive to be near the boundaries. d. de!and is at its highest as long as product seg!ents are within the circle. e. none of the above. ,he ,raditional ideal spot is a. near the upper<left corner of its circle. b. near the lower<right of its circle. c. near the center o% its circle. d. near the lower<left of its circle. e. near the upper<right of its circle.

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#ncreasing a product&s reliability will result in which of the following changes to production costs? a. 0ower !aterial cost b. 4igher material cost c. )igher labor costs d. 0ower labor costs e. @educing M,;+ has no effect on costs of production 4ge refers to> a. #nventory 4ge. b. $roduct )ge. c. Mar'et /eg!ent 4ge. d. all of the above. e. none of the above. What happens to a product&s 2erceived 4ge when it is repositioned in @H ? a. 0t is reduced by 30%. b. #t is reduced by ((.(%. c. #t is reduced by "3%. d. #t is reduced by 1$%. e. #t re!ains the sa!e. ,he preferred product perceived age for each sector pea's at> a. one year for high end and five years for low end. b. one year for high end and three years for low end. c. *ero years %or high end and seven years %or low end. d. 1ero years for high end and three years for low end. e. each seg!ent wants a perceived age of 1ero. 4t which point does the perceived age of a traditional product pea'? a. 2 b. 1.3 to ".3 years c. 7 d. $.3 to " years e. whenever it&s positioned 2ricing plays a role a. when repositioning a product. b. in the rough cut stage of the purchase decision. c. in neither stage of the purchase decision. d. in the fine cut stage of the purchase decision. e. in both b and d. What are the top buying criteria that low end custo!ers !ost value? a. 4ge b. $rice c. Iuality d. 2ositioning e. ,i!e Which of the following is not a type of !ar'et seg!ent in Cap/i!? a. 2erfor!ance b. ,raditional c. Standard d. /i1e e. -one of the above

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,he top two buying criteria for each seg!ent is> a. 2ositioning for low end and 2rice for high end. b. @eliability for low end and 2erfor!ance for high end. c. 2rice for low end and 2erfor!ance for high end. d. $rice %or low end and $ositioning %or high end. e. 2ositioning for low end and M,;+ for high end. 0ow ,ech custo!ers e!phasi1e buying criteria in which order? a. $rice" )ge" $ositioning" /eliability b. 4ge, @eliability, 2rice, 2ositioning c. 2ositioning, 4ge, 2rice, @eliability d. 2rice, 2ositioning, 4ge, @eliability e. 2rice, @eliability, 2ositioning, 4ge Each seg!ent places a. a different e!phasis on the 8 buying criteria. b. a di%%erent emphasis on the 5 buying criteria. c. so!e e!phasis on price and so!e e!phasis on reliability. d. so!e e!phasis on perfor!ance and so!e on si1e. e. both c and d. Which !ar'et seg!ent places the !ost i!portance on price? a. ,raditional b. 2erfor!ance c. #ow End d. /i1e e. )igh End What is the !ost i!portant criterion to a A0ow End /eg!entB custo!er? a. $rice b. 4ge c. M,;+ d. 2ositioning e. 2erfor!ance #f you are !ar'eting to )igh End custo!ers, which criteria are !ost i!portant to the! in order of i!portance? a. 2ositioning, 4ge, 2rice, M,;+ b. 2rice, 4ge, M,;+, 2ositioning c. 4ge, 2rice, 2ositioning, M,;+ d. M,;+, 2ositioning, 4ge, 2rice e. $ositioning" )ge" ,!. " $rice Which one is not an area in which Capstone separates co!pany activities? a. Mar'eting b. 2roduction c. @H d. #ogistics e. ,IM ,he following represent core co!pany activities that !ust be addressed each year except> a. @esearch and evelop!ent. b. Mar'eting. c. +inance. d. #abor 6egotiations. e. 2roduction.

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Which of the following is not addressed by @H ? a. 4ge b. @eliability c. -u!ber of products in each seg!ent d. 2lace!ent of each product inside a !ar'et seg!ent e. Wor(%orce Complement #n the Mar'eting 2lan, @esearch and evelop!ent addresses all but the> a. place!ent of each product inside a !ar'et seg!ent circle. b. nu!ber of products in each seg!ent. c. age of your products. d. automation o% assembly lines. e. reliability of each product. When an @H effort started in "$$1 co!pletes on /epte!ber 13, "$$", the product revision 'ic's in a. *ctober 1, "$$". b. immediately upon completion. c. January 1, "$$(. d. @H has no effect on product revisions. e. /epte!ber 13, "$$(. ,he relative cost of a product&s !aterial cost increases as> a. si1e is increased. b. perfor!ance is decreased. c. ,!. is raised. d. auto!ation stays the sa!e. e. all of the above. @H a. b. c. d. e. @H a. b. c. d. e. co!pletion ti!e can be di!inished by repositioning a product. the !ore a co!pany changes a product&s M,;+. when several products are put into @H at the sa!e ti!e. when a company ta(es advantage o% e1isting technology. none of the above. co!pletion ti!e depends on nu!ber of pro9ects in @H . auto!ation rating. si!ilarity to existing products. si1e of the product. a" b" and c.

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Which 4uto!ation rating reKuires the longest ti!e to reposition a product? a. 1 b. ( c. 7 d. : e. 10 #n Capstone a. the ter!s age and perceived age are not used interchangeably. b. the ter! M,;+ !eans !ultiple transient business for!at. c. the terms age and perceived age are used interchangeably. d. all products will eventually have to be retired. e. none of the above.

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When a product is !oved to a new location on the 2erceptual Map, the 2erceived 4ge Dor 4geE is> a. not affected. b. doubled. c. divided in hal%. d. tripled. e. other. Changing M,;+ will> a. have no impact on $erceived )ge. b. increase 2erceived 4ge. c. decrease 2erceived 4ge. d. change 2erceived 4ge. e. is undeter!ined. @H a. b. c. d. e. pro9ects can drive a product&s> si1e. age. reliability. perfor!ance. all o% the above.

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#f your tea! decides to introduce a new product, when should capacity and auto!ation be purchased? a. ,wo rounds prior to product release b. 7ne round prior to product release c. ,he round of product release d. ,he round after product release e. 2urchase of capacity and auto!ation is not necessary for new product release #f you purchase production capacity and auto!ation> a. it is available i!!ediately. b. it is available in 6 !onths. c. it is available in the ne1t year. d. it is available when you need it. e. none of the above. Mar'eting is concerned with . things. What are they? a. 2rice, @eliability, 4ge, and 2roduct b. 2lace, 4ge, 2ro!otion, and 2roduct c. $rice" $lace" $romotion" and $roduct d. 2roduct, 2lace, 2ro!otion, and @eliability e. #nnovation, 2roduct, 2lace, and 2ro!otion 4n increase in pro!otional budgets have> a. increasing returns over ti!e. b. level returns over ti!e. c. decreasing returns over time. d. decreasing then increasing returns over ti!e. e. increasing then decreasing returns over ti!e. 2ro!otion efforts are sub9ect to a. econo!ies of scale. b. increasing returns. c. diminishing returns. d. pro!otion expenditure. e. custo!er awareness.

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What effect do increases in the 2ro!otion ;udget have on a product&s 4wareness? a. #ncreasing returns b. Constant returns c. 2roportionally increasing returns d. 8iminishing returns e. -one of the above 4ssu!ing no additional product pro!otion, what percent of custo!ers, reached through last year&s !ar'eting ca!paign will carry over into the current year? a. ((% b. 3$% c. 9:% d. $% e. -one of the above )ow is the strength of the sales channel !easured? a. 4ccessibility on a scale of $ to 3$ b. )ccessibility on a scale o% 0 to 100% c. 4ccessibility on a scale of 1 to 3$ d. 4ccessibility on a scale of 1 to 1$$% e. 4ccessibility on a scale of 1 to "3 #f you drop your sales budget to 1ero, accessibility drops to $% in how !any years? a. 1 b. " c. ; d. . e. 3 #f your co!pany has a sales budget of C( !illion and drops it to 1ero, a. accessibility drops by C1 !illion every year. b. awareness drops to 1ero. c. accessibility drops to 0% in three years. d. sales will drop to 1ero. e. all of the above. 4ll of the following are direct i!plications of hiring a second shift except> a. increased production capacity. b. paying higher wages to second shift. c. training costs. d. increased ,!. . e. recruit!ent costs. )ow can asse!bly lines double their capacity? a. /peed up the production. b. )dd a second shi%t. c. ouble the !aterial. d. ;uild !ore asse!bly lines. e. 4sse!bly lines cannot be doubled. #f you increase auto!ation fro! ".$ to 3.$, the cost is> a. 212 per unit o% capacity. b. C13 per unit of capacity. c. C: per unit of capacity. d. C6 per unit of capacity. e. Cannot deter!ine with this infor!ation.

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What is one drawbac' of increasing auto!ation? a. !he product re<uires increased time=e1pense %or subse<uent short>move repositioning. b. *perating second shift beco!es !ore expensive. c. 4uto!ation causes large leaps in repositioning. d. 4uto!ation slows production capability. e. #t reKuires !ore e!ployees for the production line. #f you reduce auto!ation in the production co!ponent of Mar'eting, you will> a. slow down @H designs. b. incur a retooling cost. c. lose the ga!e. d. none of the above. #f you want to add 3$$,$$$ units of capacity to an asse!bly line with an auto!ation rating of 3, how !uch will it cost? a. 1,"$$,$$$ b. 1,($$,$$$ c. 1;"000"000 d. ".,$$$,$$$ e. "6,$$$,$$$ #f a line has a capacity of 1$$,$$$ units, the cost of changing the auto!ation level 1 unit either up or down is a. C6$,$$$. b. C.$,$$$. c. 2500"000. d. C6$$,$$$. e. none of the above. epreciation is calculated> a. using a (<year M4C@/. b. using a 3<year M4C@/. c. over a straight line 3<year period. d. over a straight line 1$<year period. e. over a straight line 13>year period. Which three factors drive labor cost? a. 2roduction capacity b. Wage and benefit rates c. 4uto!ation levels d. /econd shiftL*verti!e costs e. b" c" d #f current wages are set at C1$Lhour, what would be the !ini!u! starting pay that your co!pany would offer? a. C6Lhour b. 2&=hour c. C1$Lhour d. C1"Lhour e. none of the above #n the current contract, the wor'ers& wage rate is C"$.$$. Which of the following negotiation positions would be outside the starting and ceiling a!ounts? a. C16.$$ to C"3.$$ b. C18.$$ to C($.$$ c. 21&.00 to 2;3.00 d. C16.$$ to C"$.$$ e. ;oth a and d would be outside the rules.

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+or Wages, the negotiation /tarting 2osition cannot be less than MMMM% or !ore than MMMM% of the current contract. a. 735 1"3 b. 735 13$ c. 8$5 1"3 d. &0' 130 e. none of the above 0abor -egotiation includes> a. hourly wage. b. benefits. c. profit sharing. d. annual raise. e. all o% the above. ,o run perfectly, all )@ depart!ent !anagers should 'now that a. the negotiation starting point should not exceed 8$%. b. the starting point for benefits or wages should be between $<13$% of the current contract. c. all stri(e settlements should be hal%way between the demand and the negotiation ceiling. d. all of the above is correct. e. none of the above are true. ?our wor'ers go on stri'e because they have de!anded C"$Lhour and your wage negotiation ceiling is at C18Lhour. 4ssu!ing that there are no other labor de!ands, how long will the stri'e last? a. 2 wee(s b. . wee's c. 8 wee's d. 16 wee's e. ,here is no way to deter!ine how long the stri'e will last. #n the )u!an @esources section, wor'ers will stri'e one wee' for> a. every 1% your 4nnual @aise -egotiations Ceiling is beneath 0abor&s de!and. b. every C($$ your ;enefits -egotiations Ceiling is beneath 0abor&s de!and. c. every 1% your 2rofit /haring -egotiations Ceiling is beneath 0abor&s de!and. d. every C1 your Wage -egotiation Ceiling is beneath 0abor&s de!and. e. all o% the above. ,he +inance epart!ent can use which of the following !ethods to acKuire capital for co!pany activities? a. Current 8ebt" Stoc( 0ssues" .ond 0ssues" and $ro%its b. 2rofits, Current ebt, Withholding 2ensions, and /toc' #ssues c. 0iKuidating #nventory, /toc' #ssues, ;ond #ssues and 2rofits d. Credit 0ines, ;ond #ssues, /toc' #ssues, and 2rofits e. Current ebt, /toc' #ssues, ;ond #ssues, and coo'ing the boo's ?our finance depart!ent is pri!arily concerned with a. acKuiring the capital needed for co!pany activities. b. establishing a dividend policy that !axi!i1es the return to shareholders. c. setting credit policies for custo!ers and suppliers. d. profits. e. all o% the above. Capital needed for co!pany activities cannot be acKuired through> a. stoc's and bonds. b. profits. c. current debt. d. arbitrarily %iring employees. e. all of the above.

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Which financial obligation is best satisfied with ;ond #ssues? a. 4ccounts 2ayable b. 0ncreased production capacity c. Changes in 4L@ policy d. /alary increases e. 4ll of the above What happens to a co!pany when its debt<to<assets ratio increases? a. #ts credibility a!ong creditors suffers. b. #t envisages higher ris'. c. #ts short ter! interest rates increase. d. #ts bond rating is reduced. e. c" d What is your bond rate? ,he pri!e rate is 1$%5 your current bond rating slipped one category Dfro! 444 to 44E. a. 1".1% b. 10.3% c. 11..% d. 11."% Niven a pri!e rate of r and a short ter! interest rate of rO".3, the rating is ;. a. !rue b. +alse #f your interest rate is 1".1%, and when you issue new bonds, the bond interest rate is> a. 1$.7%. b. 1".1%. c. 1;.3%. d. 6.1%. e. 1"%. Niven a pri!e rate of r and a short ter! interest rate of rO".3, the ;ond rate is eKual to DrO(.:%E. a. !rue b. +alse ?ou pay no bro'erage fee if you> a. issue bonds. b. retire bonds. c. retire stoc's. d. ac<uire current debt. e. issue stoc's. #n Capstone what would the bond nu!ber be for a bond with an interest rate of 6.3% that !atures in "$$(? a. 6.3/$( b. "$$(/6.3 c. 9.3S200; d. .$(/6.3 e. 6.3."$$( ?ou are charged a MMMM bro'erage fee to issue stoc' and MMMM bro'erage fee to retire stoc'. a. 3%5 $% b. 3%' 1.3% c. 1.3%5 3% d. $%5 3% e. 3%5 3%

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,he Credit 2olicy 0ag has i!plications for> a. e!and. b. 2erfor!ance. c. 2roduction. d. /i1e. e. a" c. ;udgeting !oney to Iuality initiative will lead to these outco!es except> a. decrease @H ti!e. b. increase e!and. c. increase #abor Costs. d. increase efficiency. e. produce ad!inistrative savings. )ow can the @H cycle ti!e be reduced? a. #ncreasing auto!ation levels b. .udgeting money to <uality initiatives c. #ncreasing @H budget d. ecreasing product portfolio e. ecreasing capacity #nvesting in C2# can a. reduce ad!inistrative costs. b. reduce !aterial and ad!inistrative costs. c. reduce material costs. d. reduce labor costs and reduce @H cycle ti!e.

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1$$. #nvesting in CCEL/ix /ig!a can a. reduce labor and ad!inistrative costs. b. increase de!and and reduce labor costs. c. reduce labor material costs. d. increase de!and. 1$1. Within the 2rocess Manage!ent #nitiatives, channel support syste!s a. reduce !aterial cost. b. reduce labor costs. c. increase demand. d. reduce @H cycle ti!e. e. none of the above. 1$". ;ench!ar'ing reduces a. Material cost. b. @esearch and evelop!ent ti!e. c. 0abor Cost. d. )dministrative Cost. e. e!and. 1$(. Which of the following is an exa!ple of a ,IM initiative? a. Continuous 2rocess #!prove!ent b. Just<in<,i!e P#nventoryQ c. ?uality unction 8eployment E%%ort d. Channel /upport /yste!s e. Iuality #nitiative ,raining

1$.. Within the process !anage!ent initiatives, concurrent engineering a. reduces !aterial cost, inventors& carrying costs and ad!inistrative overhead. b. reduces labor costs. c. increases the effectiveness of the sales budget and therefore de!and. d. reduces /@8 cycle time. e. none of the above. 1$3. ,he situation analysis consists of MMMMMM parts. a. ( b. . c. 3 d. 6 e. 7 1$6. ,he situation analysis is a. a tea! exercise. b. designed to help your group understand the current !ar'et conditions. c. designed to help your group understand how the industry will evolve over the next 8 years. d. a five part analysis. e. all o% the above. 1$7. Which three custo!er groups Aride the wave of technologyB and are considered to be in the high technology seg!ents? a. $er%ormance" 4igh End" and Si*e b. 2erfor!ance, ,raditional, and )igh End c. 2erfor!ance, 0ow End, and /i1e d. ,raditional, )igh End, and /i1e e. ,raditional, 0ow End, and /i1e 1$8. When plotting the seg!ent locations for each round a. the goal is to determine the ideal spot location %or each segment during the & years. b. the goal is to deter!ine which products are the highest in de!and. c. you use price on one axis and perfor!ance on the other. d. you should use Microsoft Excel. e. all of the above. 1$:. Which of the following Kuestions is answered by the de!and analysis? a. What drives our profit !argins? b. )ow well do !y products perfor!? c. )re the mar(et segments growing at the same rateA d. oes the industry have adeKuate capacity to serve the !ar'et? e. 4ll of the above. 11$. ,wo points that should be considered in your strategy are a. the overall !ar'et is growing and prices are going down. b. the overall !ar'et is shrin'ing and prices are going down. c. the overall mar(et is growing and it is easy to con%use unit mar(et si*e with dollar mar(et si*e. d. the overall !ar'et is growing and prices are going up and down. e. none of the above.

111. What is the total cost in dollars for adding 1.$ !illion units of capacity to a production line with an auto!ation level of 1.$ and floor space costs per unit of C6? 4ssu!e auto!ation costs per unit of C.. a. C"6 !illion b. 210 million c. C".6 !illion d. C1 !illion e. none of the above 11". #f you are currently producing 1$$,$$$ units and your auto!ation level is 1$, how !uch will it cost you to double your capacity? a. C1,$$$,$$$ b. 25"900"000 c. C1$$,$$$ d. C1$,$$$ e. none of the above 11(. What is the right for!ula for capacity invest!ent? a. #nvest!ent R Capacity x DC. x 4uto!ationE b. #nvest!ent R Capacity x PC1$ O DC. x 4uto!ationEQ c. #nvest!ent R Capacity x PC. O DC6 x 4uto!ationEQ d. 0nvestment B Capacity 1 C29 D +25 1 )utomation-E e. #nvest!ent R Capacity x 4uto!ation 11.. #f your current capacity is 1$,$$$ units and your auto!ation level is 3.$, what is the difference of the invest!ent between doubling your capacity and doubling your auto!ation level? a. 290"000 b. C"$,$$$ c. C1$,$$$ d. C3"$,$$$ e. C"6$,$$$ 113. #f you are currently producing 1$$,$$$ units at an auto!ation level of 3, how !uch would it cost to !axi!i1e auto!ation? a. C3$$,$$$ b. C3$,$$$ c. 22"000"000 d. C3,$$$,$$$ e. none of the above 116. 4s a !anager you need to change the auto!ation level of your seg!ent fro! " to 3. ,he line has a capacity of C" !illion. )ow !uch would it cost? a. C1" !illion b. 225 million c. C1$ !illion d. C6 !illion e. none of the above 117. @apid !ove!ent of an existing product on the 2erceptual Map reKuires a. reliability ad9ust!ent. b. low automation levels. c. high auto!ation levels. d. none of the above.

118. #f a product&s 2rice was C"$, its Material C8, and its 0abor C7, the Margin 2er Snit would be> a. C1". b. C1(. c. C1. d. 23. e. C"$. 11:. #f the priceLproduct is C1$ and the !aterial costLproduct is C" and the labor costLproduct is C(, what is the gross !arginLproduct? a. C6 b. C" c. C. d. C( e. none o% the above 1"$. #n the Capstone si!ulation, what are the co!ponents of a product&s !aterial cost? a. Cost of #nventory on hand and the cost to store it b. /eliability component cost and positioning component cost c. ,he costs associated with inventory, shipping and handling d. 0evel of auto!ation and product reliability e. -one of the above 1"1. ,he reliability co!ponent cost of a product with a 17,$$$ hour M,;+ rating is> a. 23.10. b. C17.$$. c. C31.$$. d. C17$. e. cost cannot be deter!ined with infor!ation given. 1"". ,he best case !argin potential for a product with a top price of C($ and a !ini!u! cost of goods sold of C13 is> a. C.3. b. C". c. C.3$. d. C.3$. e. none o% the above. 1"(. 4 point or so!e points you consider for your strategy are a. strive to give your custo!ers the top two buying criteria. b. the perceptual !ap is !ore i!portant as a rough cut consideration than a fine cut distinction. c. !axi!i1e the effectiveness of @H , to achieve higher de!and you !ust have a substantially better offer, it does not !atter how good your product is if you stoc' out. d. all o% the above. e. none of the above. 1".. #n Capstone, the spreadsheets allow tea! !e!bers to a. !a'e changes to variables. b. observe the results of changes !ade to variables. c. design their own perfor!ance criteria with which to co!pare !ar'et seg!ents. d. all of the above. e. both a and b.

1"3. Each of the spreadsheets a. wor' independently. b. depend on values entered in other spreadsheets. c. wor' si!ultaneously. d. all of the above. e. both a and b. 1"6. -ew products are created on which spreadsheet? a. 2roduction b. /esearch and 8evelopment c. -ew 2roducts and @epositioning d. Mar'eting e. Mar'et @esearch and 4nalysis 1"7. Ssing the @H /preadsheet to design your products, you have which of the following pro9ects to choose fro!? a. @epositioning b. #nvention c. @eliability ad9ust!ent d. )ll o% the above e. -one of the above 1"8. What is the !ini!u! a!ount of ti!e that it ta'es to create a new product? a. ( !onths b. 6 !onths c. 1 year d. " years e. 3 years 1":. What are the drivers of Material Costs? a. )igher perfor!ance b. /!aller si1e c. )igher Mean ,i!e ;etween +ailure DM,;+E d. )ll o% the above e. -one of the above 1($. ,he !ar'eting spreadsheet is used to set which of the following> a. prices. b. pro!otion budgets. c. sales budgets. d. all o% the above. e. none of the above. 1(1. ,he 4L@ lag is a. a !ar'eting spreadsheet definition. b. the accounts receivable lag Din daysE. c. the ti!e between custo!ers receiving products and when they are expected to pay for the!. d. a" b" and c. 1(". What happens to a co!pany when it increases the 4L2 lag? a. #t i!proves its cash position. b. #t deteriorates its cash position. c. #t loses credibility. d. #ts suppliers withhold !aterial for production. e. a" d.

1((. ,he auto!ation level a. causes you to reKuire !ore !anpower with higher ratings. b. causes you to reKuire !ore !anpower with lower ratings. c. causes you to reKuire less !anpower with higher ratings. d. causes you to reKuire less !anpower with lower ratings. e. both b and c. 1(.. When going to a new auto!ation level a. there is a 1 year lag. b. there is a lag dependent on the a!ount the auto!ation level has been changed. c. there is no lag. d. the lag is dependent on the cost. e. none of the above. 1(3. -egotiation Ceilings which represent the !axi!u! !anage!ent is willing to pay are always a. 1"% above the starting positions. b. 3% above the starting positions. c. 10% above the starting positions. d. unli!ited. e. none of the above. 1(6. Maxi!u! issue is a. the upper limit in thousands o% dollars that teams can issue in stoc( this year. b. a!ount in thousands of dollars that tea!s wish to issue in stoc'. c. upper li!it of stoc' that can be bought bac' in thousands of dollars. d. a!ount of stoc', if any, to buy bac'. e. none of the above. 1(7. Cash position is a. the cash position at the beginning of the round. b. a pro9ection of the cash position at the end of the round. c. the cash position at the beginning o% the round and a proFection o% the cash position at the end o% the round. d. the financial position of the co!pany. e. none of the above. 1(8. What effects do 2rocess Manage!ent #nitiatives have? a. 4d!inistrative savings b. )igher production efficiency c. #ncrease in de!and d. @eduction of @H ti!es e. )ll o% the above. 1(:. ?our tea! will !a'e decisions for a. Mar'eting. b. +inance. c. )u!an @esources. d. 2roduction. e. all o% the above. 1.$. Which custo!er group or !ar'et seg!ent see's proven products using current technology? a. !raditional customers b. 0ow End custo!ers c. )igh End custo!ers d. 2erfor!ance custo!ers e. /i1e custo!ers

1.1. Which custo!er group or !ar'et seg!ent see's proven products, are indifferent to technological sophistication, and are price !otivated? a. ,raditional custo!ers b. #ow End customers c. )igh End custo!ers d. 2erfor!ance custo!ers e. /i1e custo!ers 1.". Which custo!er group or !ar'et seg!ent see's cutting edge technology in both si1e and perfor!ance? a. ,raditional custo!ers b. 0ow End custo!ers c. 4igh End customers d. 2erfor!ance custo!ers e. /i1e custo!ers 1.(. Which custo!er group or !ar'et seg!ent see's high reliability, advanced technology products that e!phasi1e high perfor!ance? a. ,raditional custo!ers b. 0ow End custo!ers c. )igh End custo!ers d. $er%ormance customers e. /i1e custo!ers 1... Which custo!er group or !ar'et seg!ent see's advanced technology products that focus on s!all si1e? a. ,raditional custo!ers b. 0ow End custo!ers c. )igh End custo!ers d. 2erfor!ance custo!ers e. Si*e customers 1.3. @epositioning !oves a product on the 2erceptual Map fro! its old location to a new one. When does the new location beco!e active? a. !he day the /@8 proFect completes b. ,he following year the @H pro9ect co!pletes c. ,he !onth the @H pro9ect co!pletes d. ,he day capacity and auto!ation is purchased e. ,he day capacity is purchased 1.6. #f a product&s 4uto!ation rating is substantially increased, it will> a. ta(e longer to move the product across the $erceptual ,ap. b. ta'e a shorter ti!e to !ove the product across the 2erceptual Map. c. not allow the product to !ove across the 2erceptual Map. d. have no effect on the product !oving across the 2erceptual Map. e. other. 1.7. ,here is MMMMMM lag in buying new Capacity and MMMMMM lag in changing 4uto!ation. a. $5 $ b. 1 year5 $ c. $5 1 year d. 1 year' 1 year e. T year5 T year

1.8. Which of the following is not a pri!ary concern for your +inance epart!ent? a. 4cKuiring capital b. /etting credit policies for custo!ers and suppliers c. Employee turnover d. Establishing a dividend policy e. Capital structure of the fir! 1.:. ,his strategy atte!pts to gain a co!petitive advantage by 'eeping @H costs, production costs and raw !aterial costs to a !ini!u! in order to co!pete on the basis of price. ,he product life cycle focus will enable sales for !any years on each new product introduced into the )igh End seg!ent. 2roducts will begin their lives in the )igh End, !ature into ,raditional and finish as 0ow End products before they are retired and their assets harvested. a. ;road Cost 0eader b. -iche Cost 0eader c. Cost #eader with $roduct #i%e Cycle ocus d. ifferentiation strategy with a 2roduct 0ife Cycle +ocus e. ;road ifferentiation 13$. ,his strategy will allow us to !aintain a presence in every !ar'et seg!ent. Co!petitive advantage will be gained by 'eeping @H costs, 2roduction costs and raw !aterial costs to a !ini!u!, enabling us to co!pete on the basis of price. We will price below average. We will increase auto!ation levels to i!prove our !argins and to !a'e it acceptable to run second shiftLoverti!e. a. .road Cost #eader b. -iche Cost 0eader c. Cost 0eader with 2roduct 0ife Cycle +ocus d. ifferentiation /trategy with a 2roduct 0ife Cycle +ocus e. ;road ifferentiation 131. ,his strategy will allow us to !aintain a presence in every !ar'et seg!ent. Co!petitive advantage will be gained by distinguishing our product with an excellent design, high awareness, and easy accessibility. We will develop an @H co!petency that 'eeps our designs fresh and exciting. *ur products will 'eep pace with the !ar'et, offering i!proved si1e and perfor!ance. ,he price of the products will be above average and capacity will expand as we generate higher de!and. a. -iche ifferentiation b. -iche Cost 0eader c. Cost 0eader with 2roduct 0ife Cycle +ocus d. ifferentiation /trategy with a 2roduct 0ife Cycle +ocus e. .road 8i%%erentiation 13". ,his strategy will concentrate on the ,raditional and 0ow End seg!ent. Co!petitive advantage will be gained by 'eeping @H costs, 2roduction costs, and raw !aterials costs to a !ini!u!, enabling us to co!pete on the basis of price Dlow pricesE. ,he product will be priced below average and auto!ation levels will be increased to i!prove contribution !argins and !a'e it acceptable to run second shiftLoverti!e. a. ;road Cost 0eader b. 6iche Cost #eader c. Cost 0eader with 2roduct 0ife Cycle +ocus d. ifferentiation /trategy with a 2roduct 0ife Cycle +ocus e. ;road ifferentiation

13(. ,his strategy will focus on the high technology seg!ents D)igh End, 2erfor!ance and /i1eE. Co!petitive advantage will be gained by distinguishing our products with excellent design, high awareness, easy accessibility, and product extenders. *ur @H co!petency will 'eep our designs fresh and exciting. *ur products will 'eep pace with the !ar'et, offering i!proved si1e and perfor!ance. ,he prices of our products will be above average and we will expand capacity as we generate higher de!and. a. 6iche 8i%%erentiation b. -iche Cost 0eader c. Cost 0eader with 2roduct 0ife Cycle +ocus d. ifferentiation /trategy with a 2roduct 0ife Cycle +ocus e. ;road ifferentiation 13.. ,he resources used in the /ales ;udget are a. E<!ail, ,rade /hows, Web Media and 2rint Media. b. 2rint Media, *utside /ales, and istributors. c. ,rade /hows, *utside /ales, istributors, and #nside /ales. d. 7utside Sales" 8istributors" and 0nside Sales. e. ,rade /hows, istributors, *utside /ales, #nside /ales, and 2rint Media. 133. When wor'ing with inside sales, each inside salesperson costs a. C(3,$$$. b. C1$$,$$$. c. 230"000. d. C1"3,$$$. e. C11$,$$$ plus a co!!ission of 1%. 136. When wor'ing with istributors, each distributor costs a. C(3,$$$. b. 2100"000. c. C3$,$$$. d. C1"3,$$$. e. C11$,$$$. 137. When wor'ing with *utside /ales, each salesperson costs a. C(3,$$$. b. C1$$,$$$. c. C3$,$$$. d. 2123"000. e. C11$,$$$ plus a co!!ission of 1%. 138. #n only one product seg!ent, di!inishing returns for distributors is reached at a. 73. b. 1". c. 13. d. .3. e. ($. 13:. #n only one product seg!ent, di!inishing returns for inside sales is reached at a. 73. b. 1". c. 13. d. .3 e. ;0.

16$. #n only one product seg!ent, di!inishing returns for outside sales is reached at a. 73. b. 12. c. 13. d. .3. e. ($. 161. ,he !ar'eting budget detail sales screen allows co!panies to allocate their pro!otion budget to different !edia channels. ,hese !edia channels are> a. 2rint Media, *utside /ales, irect Mail, ,rade /hows, and E<Mail. b. $rint ,edia" 8irect ,ail" !rade Shows" E>,ail" and Web ,edia. c. #nside /ales, *utside /ales, and ,rade /hows. d. irect Mail, E<Mail, Web Media, 2rint Media, and ,elevision. e. E<Mail, Web Media, 2rint Media, and #nside /ales. 16". When investing in print !edia, di!inishing returns apply after a. 2:00"000 per product. b. C7$$,$$$ per seg!ent. c. C3$$,$$$ per product. d. C($$,$$$ per seg!ent. e. C8$$,$$$ per seg!ent. 16(. ,he potential reach for E<!ail is rated as good for the a. ,raditional and 0ow End. b. )igh and 0ow End. c. 2erfor!ance and 0ow End. d. 2erfor!ance and )igh End. e. Si*e and $er%ormance. 16.. ,he potential reach for ,rade /hows is rated as good for the a. ,raditional. b. 4igh End. c. 2erfor!ance and 0ow End. d. 2erfor!ance and )igh End. e. /i1e and 2erfor!ance. 163. ,he 2ro!otion part of !ar'eting in Cap/i! allows tea!s to allocate their ti!e based on a. !ar'et seg!ents. b. each $roduct. c. pro!otion does not allow allocation of ti!e. d. each of the 3 designated pro!otional areas. 166. ,he ti!e allocation on the advanced !ar'eting !odule can be used to a. !a'e a greater effort by the sales staff which translates into increased de!and for that seg!ent. b. ma(e a greater e%%ort by the sales sta%% which translates into increased demand %or that product. c. there isn&t a ti!e allocation on the advanced !ar'eting !odule. d. increase the pro!otional budget resources to increase awareness. e. huh? 167. #n forecasting, it is not li'ely that you will ta'e half of the sales unless a. the product positioning is ideal. b. the product !eets the top " buying criteria and the price is low. c. the positioning, age and M,;+ are superior. d. the price is at the low end o% the range and the positioning" age and ,!. are superior.

168. Custo!er de!and is driven by a. price, product, pro!otion and ,IML2rocess #nitiatives. b. customer survey. c. positioning and price. d. !ar'et share. e. !ar'et share, positioning and price. 16:. ,he custo!er survey score is driven by a. !ar'et share. b. price. c. 5$Gs. d. price and !ar'et share. e. perceptual !ap, M,;+ and price. 17$. 2rocess Manage!ent #nitiatives a. improve business procedures" resulting in improved e%%iciencies and cost structures. b. i!prove product Kuality while reducing the ti!e and resources reKuired to design, !anufacture, warehouse and ship products. c. i!prove business procedures and product Kuality, resulting in i!proved efficiencies and costs structures. d. i!prove product Kuality and business procedures. 171. ,IM initiatives a. i!prove business procedures, resulting in i!proved efficiencies and cost structures. b. improve product <uality while reducing the time and resources re<uired to design" manu%acture" warehouse and ship products. c. i!prove business procedures and product Kuality, resulting in i!proved efficiencies and costs structures. d. i!prove product Kuality resulting in i!proved cost structures. e. i!prove product Kuality and business procedures. 17". ,his process !anage!ent initiative reduces !aterial cost and, to a lesser degree, labor costs. a. Concurrent Engineering DCCEEL/ix /ig!a b. ;ench!ar'ing c. Continuous $roduct 0mprovement systems +C$0d. Channel /upport syste!s e. Iuality #nitiative ,raining DI#,E 17(. ,his process !anage!ent initiative reduces !aterial costs and ad!inistrative overhead. a. ;ench!ar'ing b. Hendor=Iust>in>!ime 0nventory +I0!c. Continuous 2roduct #!prove!ent syste!s DC2#E d. Channel /upport syste!s e. Iuality #nitiative ,raining DI#,E 17.. ,his process !anage!ent initiative reduces labor costs. a. ;ench!ar'ing b. UendorLJust<in<,i!e #nventory DJ#,E c. Channel /upport syste!s d. ?uality 0nitiative !raining +?0!173. ,his process !anage!ent initiative increases the effectiveness of the /ales ;udget and therefore de!and. a. ;ench!ar'ing b. UendorLJust<in<,i!e #nventory DJ#,E c. Continuous 2roduct #!prove!ent syste!s DC2#E d. Channel Support systems e. Iuality #nitiative ,raining DI#,E

176. ,his process !anage!ent initiative reduces @H cycle ti!e, a. Concurrent Engineering +CCEb. ;ench!ar'ing c. Continuous 2roduct #!prove!ent syste!s DC2#E d. Channel /upport syste!s e. Iuality #nitiative ,raining DI#,E 177. ,hese ,IM initiatives reduce ad!inistrative overhead5 reduces the @H cycle ti!e and enhances the effectiveness of the pro!otion and sales budget. a. Concurrent Engineering DCCEE5 Channel /upport syste!s and Just<in<,i!e #nventory b. ?uality unction 8eployment and .enchmar(ing c. Continuous 2roduct #!prove!ent syste!s DC2#E and Just<in<,i!e #nventory d. Channel /upport syste!s and /ix /ig!a e. Iuality #nitiative ,raining DI#,E 178. ,he ,IM initiative reduces !aterial costs and labor costs. a. Concurrent Engineering +CCE-=Si1 Sigma b. ;ench!ar'ing c. Continuous 2roduct #!prove!ent syste!s DC2#E d. Channel /upport syste!s e. Iuality #nitiative ,raining DI#,E 17:. #f there are . products listed in the Capstone Courier in the traditional seg!ent that have a custo!er survey scoring of (", "8, "" and 1., then the top product&s de!and would be> a. ("%. b. 3$%. c. 6.%. d. ;;%. 18$. *ne of the ways of calculating the top product&s de!and is by a. !ultiplying the total !ar'et share for that product in that seg!ent by the total !ar'et de!and for that seg!ent. b. !ultiplying the top de!and percentage by the total !ar'et de!and for that seg!ent. c. divide the top product segmentGs score by the sum o% all other scores in that segment +not counting %ringe products-. d. divide the total de!and for that !ar'et seg!ent by the total nu!ber of products in that seg!ent Dnot including fringeE. 181. Co!bining si1e and perfor!ance creates a product attribute 'nown as a. M,;+. b. consu!er perception. c. positioning. d. physical perception. e. a co!pleted electric sensor. 18". Which state!ent is true? a. #ncreasing in capacity and changes in auto!ation can ta'e less than a year to i!ple!ent if the product already exists. /ales of capacity ta'e a full year to i!ple!ent. b. 0ncreases in capacity and changes in automation ta(e a %ull year to implement. Sales o% capacity are immediate. c. #ncreases in capacity, changes in auto!ation and sales of capacity ta'e a full year to i!ple!ent. d. #ncreases in capacity, changes in auto!ation and sales of capacity ta'e less than a year to i!ple!ent if the product already exists.

18(. ,he traditional !ar'et seg!ent is expected a. none of these. b. to grow at 1.% per year. c. to grow at a faster rate than the !ar'et. d. to ma(e up 2:.3% o% the electronic sensor mar(et in %ive years %rom now. e. to grow at a faster rate than the high end seg!ent. 18.. ,he sales channel effectiveness for the distributors is highest for a. )igh End. b. 2erfor!ance, )igh and /i1e. c. !raditional and #ow. d. 0ow End and )igh End. e. /i1e. 183. When investing in direct !ail, di!inishing returns apply after a. C7$$,$$$ per product. b. C7$$,$$$ per seg!ent. c. 2&00"000 per product. d. C8$$,$$$ per seg!ent. e. C3$$,$$$ per product. 186. ,he potential reach for direct !ail is rated as good for the a. 2erfor!ance and 0ow End. b. 2erfor!ance and )igh End. c. !raditional and #ow End. d. )igh and 0ow End. e. /i1e and 2erfor!ance. 187. ,his strategy will gain co!petitive advantage by distinguishing our products with an excellent design, high awareness, easy accessibility, and product extenders. We will develop @H co!petency that 'eeps our designs fresh and exciting. *ur products will 'eep pace with the !ar'et, offering i!proved si1e and perfor!ance. We will price above average. We will expand capacity as we generate higher de!and in our !ar'ets> )igh, ,raditional and 0ow End. a. Cost 0eader with 2roduct 0ife Cycle +ocus b. 8i%%erentiation Strategy with a $roduct #i%e Cycle ocus c. ;road Cost 0eader d. -iche ifferentiation e. ;road ifferentiation 188. /ales channel effectiveness for inside salespeople is highest for a. ,raditional, 0ow end and )igh End b. 2erfor!ance and )igh End c. 2erfor!ance, /i1e and )igh End d. $er%ormance e. )igh End 18:. ,he perfor!ance seg!ent places !ore i!portance on a. age and reliability. b. reliability and positioning. c. price and age. d. positioning and price.

1:$. Which !ar'et seg!ent places the !ost i!portance on reliability? a. ,raditional b. $er%ormance c. 0ow End d. /i1e e. )igh End 1:1. What product attributes do 2erfor!ance custo!ers value the !ost? a. 4ge b. 2rice c. 2ositioning d. /eliability e. *ther 1:". ,he Co!petitive #ntelligence *fficer a. thin(s li(e the competitor by determining how that competitor measures success" loo(s to the %uture as to what the competition will do in the ne1t year to two years" and evaluate how the competition can undercut your companyGs per%ormance. b. a co!petitor&s production position. c. !onitors the co!petition on the production analysis portion of the Courier and evaluates the co!petitor&s !ar'eting position in relation to their own. d. needs strong analytical s'ills in order to deter!ine the co!petition&s next !ove is and what threats the co!petition represent to all tea!s involved. e. !onitors and evaluates on the top two co!panies that are a threat to the existing tea! and tries to thin' li'e the co!petition and anticipate their next !ove through the production analysis portion of the Capstone Courier. 1:(. Custo!ers that want proven products and current technology of !oderate si1e and perfor!ance are in the a. traditional segment b. high End seg!ent c. low End seg!ent d. perfor!ance seg!ent e. si1e seg!ent. 1:.. Custo!ers that are willing to pay for products with cutting edge technology that are fast perfor!ing and s!all in si1e are in the a. traditional seg!ent. b. high end segment c. low end seg!ent d. perfor!ance seg!ent e. si1e seg!ent 1:3. What two factors are considered in both the rough cut and fine cut of the custo!er buying process? a. $rice and /eliability b. 2rice and 4ge c. 4ge and 2erfor!ance d. @eliability and age 1:6. When a seg!ent&s product supply exceeds de!and, how !uch appeal, to the custo!er, will a product priced C1 above or below the seg!ent price range lose? a. 3% b. 1$% c. 13% d. 20% e. $%

1:7. What section of the perceptual !ap is considered ideal for the low end seg!ent? a. Middle b. Spper @ight c. 0ower @ight d. Jpper #e%t e. 0ower 0eft 1:8. #ncreasing perfor!ance and shrin'ing si1e does what to the !aterial cost? a. -othing b. 0ncreases c. ecreases d. #ncreases for traditional custo!ers only. e. ecreases for traditional custo!ers only. 1::. ,he pro!otion budget affects> a. awareness. b. brand eKuity. c. perfor!ance. d. si1e. e. accessibility. "$$. What is the starting awareness percentage of a new product? a. 13% b. 63% c. .$% d. 23% e. "$% "$1. When investing in web !edia, di!inishing returns apply after a. 2300"000 per product. b. C7$$,$$$ per product. c. C7$$,$$$ per seg!ent. d. C6$$,$$$ per product. e. C6$$,$$$ per seg!ent. "$". When investing in ,rade /hows, di!inishing returns apply after a. C7$$,$$$ per product. b. C($$,$$$ per seg!ent. c. C8$$,$$$ per product. d. 2;00"000 per product. e. C3$$,$$$ per product. "$(. #n order to achieve 1$$% accessibility, a tea! !ust> a. none of these. b. have at least two products in the same segment. c. have a co!bined sales budget of C..$ !illion. d. create awareness in the previous year. e. spend C. !illion on distribution channels. "$.. )ow !any asse!bly lines are there? a. 4lways exactly five per co!pany b. *ne for all co!panies c. *ne per co!pany d. 6one o% these. e. *ne in each seg!ent.

"$3. #f you sell off a production line Dcapacity and auto!ationE, the a!ount of cash that the co!pany will receive will be a. 93% o% the original cost. b. average cost of production for the previous year D!ar'et priceE. c. 3$% of the boo' value. d. 3$% of the acKuisition cost. e. 63% of the boo' value. "$6. #nventory Carrying Cost is MMM% of the average cost of production. a. 1( b. . c. 1$ d. 8 e. 12 "$7. What is the !ost i!portant criteria to a A,raditional /eg!entB consu!er? a. 2rice b. M,;+ c. 2ositioning d. )ge e. 2erfor!ance "$8. What is the !ost i!portant criteria to a A)igh End /eg!entB custo!er? a. $ositioning b. 2erfor!ance c. 2rice d. 4ge e. M,;+ "$:. What is the !ost i!portant criteria to a A/i1e /eg!entB custo!er? a. $ositioning b. 2rice c. 4ge d. M,;+ e. 2erfor!ance "1$. #t ta'es MMMMMM years to invent a product. a. ( or . !onths b. 6 !onths c. ,ore than 1 year but no more than ; years d. More than ( years "11. 4 new unit of capacity costs C6 for the floor space plus C. ti!es a. hourly wage. b. automation rating. c. unit cost. d. M,;+. e. C$.63. "1". 4 functional !anager is responsible for a. one of the five !ar'et seg!ents. b. /@8" ,ar(eting" $roduction" inance" 4uman /esources" and !?,=$0. c. one of the five products in the starting product line. d. none of these. e. !onitoring co!petitors in their entirety.

"1(. )ow !any !ar'et seg!ents are there? a. ( b. . c. 3 d. 6 e. 7 "1.. Custo!ers go through a two<stage buying process> ,he @ough Cut and the +ine Cut. #n the @ough Cut, buyers focus on four product characteristics. Which one of the following is -*, one of these four product characteristics? a. 2erfor!ance b. )ge c. /i1e d. @eliability e. 2rice "13. When investing in E<!ail, di!inishing returns apply after a. C6$$,$$$ per seg!ent. b. 2900"000 per product. c. C8$$,$$$ per product. d. C8$$,$$$ per seg!ent. e. C3$$,$$$ per product. "16. What is a !ar'et seg!ent? a. Nroup of custo!ers with differing purchasing concerns b. 4rea of perceptual !ap where all points intersect c. Group o% customers with similar purchasing concerns d. Neographic area where custo!ers are located e. Co!!on area of buying patterns "17. ,he co!pany&s negotiation starting position for wages a. is never more than 130% o% the current contract. b. is always lower than what 0abor expects. c. is always exactly 8$% of the current contract. d. is always half of the increase wor'ers are as'ing for. e. none of these. "18. 0abor will stri'e for a !axi!u!> a. 1$ days. b. &5 days. c. 6$ days. d. ($ days. e. ,here is no stri'e !axi!u!. "1:. ,he interest rate on a bond MMMMMM byMMMMMMMM for eachMMMMMM in the bond rating category. a. 0ncreases' 0.3%' 8ecrease b. ecreases5 1..%5 ecrease c. #ncreases5 $.3%5 #ncreases d. ecreases5 1..%5 #ncrease e. #ncreases5 7.3% 5 ecrease

""$. ?ou are charged a MMMMMM bro'erage fee to issue bonds and MMMMMM bro'erage fee if you retire bonds prior to their !aturation date. a. $%5 3% b. 3%5 3% c. 3%5 $% d. 3%' 1.3% e. 1.3%5 3% ""1. E2/ DEarning 2er /hareE is calculated by a. adding net profit by the nu!ber of current shares. b. dividing net profit by the nu!ber of current shares. c. adding net profit to the nu!ber of shares outstanding. d. dividing net pro%it by the number o% shares outstanding. e. none of these. """. Which of the following is not a 2rocess Manage!ent #nitiative available to your co!pany? a. Concurrent Engineering b. GE,0 Sustainability c. Continuous 2rocess #!prove!ent d. S-E2 Nreen e. Channel /upport /yste! ""(. Which of the following is not one of the five parts to the /ituation 4nalysis> a. 2erceptual Map. b. e!and 4nalysis. c. Capacity 4nalysis. d. Consu!er @eport. e. orecasting )nalysis. "".. 2roducts !ust plot within MMMMMM units fro! the center of the circle on the 2erceptual Map to survive the rough cut. a. (.$ b. 5.0 c. 1.$ d. ".3 ""3. Iuality #nitiative ,raining can a. increase de!and. b. decrease @H cycle ti!e. c. decrease !aterial costs. d. decrease labor costs. e. decrease ad!inistrative costs. ""6. #nvesting in Uendor Just #n ,i!e can a. reduce !aterial costs and @H cycle ti!e. b. reduce ad!inistrative costs and labor costs. c. reduce @H cycle ti!e and increase de!and. d. reduce material costs and administrative costs. e. reduce !aterial costs and increase de!and. ""7. 4dding one additional unit of capacity costs a. C. x Change DdifferenceE in 4uto!ation 0evel b. 29 D +25 1 Current )utomation #evel-. c. C6 x Change DdifferenceE in 4uto!ation 0evel. d. C. O DC6 x Current 4uto!ation 0evelE. e. none of these.

""8. )ow !uch does it cost for M,;+ per 1,$$$ hours of reliability? a. C$.3$ b. C$..$ c. 20.;0 d. C$."$ e. C$.1$ "":. )ow are the /tarting 2osition and the -egotiation Ceiling related? a. ,he -egotiation Ceiling is always 13% above the /tarting 2osition. b. ,hey are not related. c. ,heir values are eKual. d. ,he -egotiation Ceiling is always 1$% beyond the /tarting 2osition. e. !he 6egotiation Ceiling is always 10% above the Starting $osition. "($. 0abor costs are driven by three factors> a. wage and benefit rates, auto!ation levels, and M,;+. b. wage and benefit rates, positioning, and second shift. c. wage and benefit rates, second shift, and M,;+. d. wage and bene%it rates" automation levels" and second shi%t. e. wage and benefit rates, second shift, and !aterial costs. "(1. ,he sales channel effectiveness for the outside sales people is highest for a. 4igh End and Si*e. b. 2erfor!ance, )igh and /i1e. c. ,raditional and 0ow. d. 0ow End and )igh End. e. /i1e. "(". ,he potential reach for web !edia is rated as good for the a. 2erfor!ance and )igh End. b. Size and Performance. c. ,raditional and 0ow End. d. )igh and 0ow End. e. 2erfor!ance and 0ow End. "((. 4 6 !onth pro9ect in @H costsMMMMMMMMMMMM5 while a 1" !onth pro9ect in @H costs MMMMMMMM. a. 1,$$$,$$$5 1,3$$,$$$ b. 63$,$$$5 83$,$$$ c. 300"000' 1"000"000 d. 73$,$$$5 1,$$$,$$$ e. 1,$$$,$$$5 73$,$$$ "(.. ,he potential reach for print !edia is rated as good for the a. 2erfor!ance and 0ow End. b. 2erfor!ance and )igh End. c. !raditional and #ow End. d. )igh and 0ow End. e. /i1e and 2erfor!ance. "(3. /toc' price is a function of> a. ;oo' value, Earnings per /hare, and -et 2rofit. b. ;oo' value, ividend, and @etained Earnings. c. Earnings per /hare, ividend, and @etained Earnings. d. Earnings per /hare, ividend, and -et 2rofit. e. .oo( value" Earnings per Share" and 8ividend.

"(6. Which of the following is true about the 4ccounts @eceivable 0ag and its i!plications on de!and? a. #f you offer no credit, de!and falls to about 6$% of nor!al. b. 4t ($ days, de!and is :$%. c. 4t .3 days, de!and is :3%. d. )t 90 days" demand is K&.3%. e. 4t :$ days, de!and is 1$$%. "(7. #f your co!pany offers no credit ter!s, de!and a. re!ains constant. b. falls "3%. c. falls 3$%. d. %alls 93%. "(8. 4 bond with the nu!ber 1".6/"$$3, indicates that> a. the interest rate is 1".6%5 due in May. b. the interest rate is 1"%5 due on June $3. c. the interest rate is 1"%5 due in June "$$3. d. the interest rate is 3%5 due on ece!ber 6. e. the interest rate is 12.9%' due on 8ecember ;1" 2003. "(:. #nvesting in Iuality +unction eploy!ent Effort can a. reduce labor and ad!inistrative costs. b. increase de!and and reduce labor costs. c. reduce @H cycle ti!e and increase de!and. d. reduce /@8 cycle time and enhance the e%%ectiveness o% the promo and sales .udgets. e. increase de!and. ".$. #nvesting in Concurrent Engineering can a. reduce /@8 cycle time. b. reduce labor and ad!inistrative costs. c. increase de!and and reduce labor costs d. reduce @H cycle ti!e and increase de!and. ".1. #nvesting in Channel /upport /yste!s can a. increase demand. b. reduce @H cycle ti!e. c. reduce !aterial costs. d. reduce labor costs. e. reduce ad!inistrative costs. ".". #f the previous year you reached 1$$% custo!er awareness in your co!pany, this year what will you need to do to !aintain this level? a. ,here is nothing to do. # have already reached as !uch awareness as # could. b. /pend the sa!e a!ount of !oney spent the previous year to reach the sa!e percentage of awareness this year. c. 0 would only need to create ;;% new awareness to maintain 100% this year. d. # need to spend at least half of the !oney spent the previous year to reach 73% of the population. e. -one of these. ".(. ,ea!s can produce up to MMMMMM products. a. : b. 7 c. & d. 3 e. 6

"... 4 production line with 1$$$ units of capacity has a !ax production capability of> a. 1$$$. b. 13$$. c. "3$$. d. 2000. e. as !any as needed. ".3. When purchasing increased Capacity and 4uto!ation, the new capacity beco!es available a. i!!ediately. b. in 1 year. c. in 6 !onths. d. in " years. e. none of these. ".6. Capacity is sold by a. entering a 1ero in the ;uyL/ell row on the 2roduction /preadsheet. b. entering a null value in the ;uyL/ell row on the 2roduction /preadsheet. c. entering a negative nu!ber in the ;uyL/ell row on the Mar'eting /preadsheet. d. entering a negative number in the .uy=Sell row on the $roduction Spreadsheet. e. entering a positive nu!ber in the ;uyL/ell row on the 2roduction /preadsheet. ".7. ividends are paid to the stoc'holders in a. se!i<annual install!ents at a rate per share that you establish at the beginning of the year. b. annual installments at a rate per share that you establish at the beginning o% the year. c. ?ou can choose fro! any of the above options. d. -one of the options are those listed in the Capstone ,ea! Me!ber Nuide.

".8. E!ergency loans are !ade at what rate over the nor!al Current ebt interest rate? a. 3% b. :.3% c. 1$% d. 1"% e. "3% ".:. ,he #deal /pot a. is the best perfor!ance spot of a seg!ent. b. drifts faster than the seg!ent. c. dri%ts at same pace as the segment. d. is located at the center of the seg!ent. e. drifts !ore slowly than the seg!ent. "3$. Where is proxi!ity to the #deal /pot particularly i!portant? a. in price<oriented seg!ents. b. in Kuality<oriented seg!ents. c. in all custo!er seg!ents. d. in high technology segments. e. in low technology seg!ents. "31. What is the si1e of the plant at the start of the si!ulation? a. 3 asse!bly lines with space to add 1 !ore. b. 3 assembly lines with space to add ; more. c. 3 asse!bly lines with space to add " !ore. d. 8 asse!bly lines. e. $ V the plan can be built to tea! specification.

"3". What are the 2rocess Manage!ent #nitiatives? a. C22, J#,, Iuality +unction eploy!ent Effort, Channel /upport /yste!s, Concurrent evelop!ent, NEM# ,IM /ustainability b. ;ench!ar'ing, J#,, Iuality +unction eploy!ent Effort, Channel /upport /yste!s, Concurrent Engineering c. C2#, ;ench!ar'ing, I#,, Channel /upport /yste!s, J#,, S-E2 Nreen d. C$0" J6E$ Green" I0!" ?0!" Channel Support Systems" Concurrent Engineering e. NEM ,IM /ustainability, CCE, J#,, I#,, Channel /upport /yste!s, Concurrent Engineering "3(. Each round is the eKuivalent of a. two years. b. none of these. c. one year. d. one Kuarter. e. one<half year. "3.. ,he Consu!er @eport rates product attributes as> a. Good" air" or $oor. b. Excellent, /atisfactory, or Snsatisfactory. c. Excellent, Uery Nood, Nood, +air, or 2oor. d. /atisfactory or Snsatisfactory. e. *ther. "33. #f you see a red flag on one of your spreadsheets, what does it !ean? a. ,he cell is loc'ed. b. ?ou need to surrender. c. ?ou have an error. d. !here is more in%ormation. e. ?ou need to reenter your data. "36. Which one of these criteria is not a top product characteristic of at least one seg!ent? a. /i1e b. 2erfor!ance c. 2rice d. $romotion e. 4ge "37. Custo!er 4wareness @eports> a. each co!pany&s level of accessibility. b. percentage of Custo!ers who bought the product. c. percentage o% Customers who (new about the product. d. percentage of Custo!ers who are in that seg!ent. e. each co!pany&s success in pricing. "38. +or positioning in the fine cut, which one is not right? a. ,raditional preferred position is located in the center of circle. b. 0ow End preferred position is located upper left of circle. c. 4igh End pre%erred $osition is located in the lower le%t o% the circle. d. 2erfor!ance preferred position is located in the lower right of the circle. e. /i1e preferred position is located in the lower right of the circle. "3:. Which one is not the source of acKuiring capital? a. 2rofits b. !>.ills c. Current ebt

d. e.

/toc' ;ond

"6$. 2rice accounts for MMMMMMMMMcusto!ers& decision<!a'ing in the low end sector. a. 73% b. :3% c. 3;% d. .7% e. .(% "61. What does not drive length of @H pro9ect? a. ,he productWs auto!ation level on the 2roduction line. b. ,he a!ount of !oney ?ou are willing to spend on it. c. ,he nu!ber of @H pro9ects underway at the sa!e ti!e. d. ,he proxi!ity of the productWs new location to an existing product in your co!panyWs line. e. !he labor stri(e. "6". With each year DroundE custo!er awareness for each product decreases by> a. ;;% b. "3% c. ($% d. 3$% e. none of the above "6(.

i!inishing returns for a single year on ,IM budgets beco!e noticeable at a. C(.$M. b. C1.3M. c. 22.0,. d. C3.$M. e. C1.$M.

"6.. )igh end custo!ers prefer a product age of $, at what age exceeds the fine cut for the product a. 3 years. b. ( years. c. 2 years. d. ".3 years. e. . years. "63. 2ro!otion expenditures reach di!inishing returns at what level? a. about 2;, b. C".3M c. C1M d. C.M e. none of the above "66. #n the )igh End /eg!ent, price as a buying criteria is accounts for which percentage of the consu!er

decision> a. 3(%. b. K%. c. "(%. d. 1:%. e. -one of the above.

"67. Co!panies with this strategy state their vision as follows> 0ow priced products for the whole industry, our

brands offer solid value. *ur pri!ary sta'eholders and bondholders, custo!ers, stoc'holders and !anage!ent. a. -iche Cost 0eader b. Cost leader with 2roduct 0ife Cycle +ocus c. ifferentiation /trategy with a 2roduct 0ife Cycle +ocus d. .road Cost #eader e. ;road ifferentiation
"68. #n the ,raditional /eg!ent, age as a buying criteria is accounts for which percentage of the consu!er

decision> a. 3(%. b. .(%. c. 5:%. d. ":%. e. -one of the above


"6:. 4n accessibility of 6$% !eans that MMMMMMMM. a. only 6$% of custo!ers have an easy ti!e finding a product, tal'ing to a salesperson and ta'ing b. c. d. e.

delivery. of the custo!ers who cannot easily locate the product, half will see' it out. .$% of custo!ers will not buy the product. a and b. a and c.

"7$. )ow !uch higher are second shift wages than the first shift wages? a. $% b. "$ % c. .$ % d. 30 % e. 6$ % "71. ,he accounts payable lag has i!plications for production. 4t MMMMMMMM days, suppliers withhold all

!aterial. a. 1"$ b. 130 c. 16$ d. 17$ e. none of the above


"7". ,he center spot of traditional products drifts MMMMMMM each year. a. D0.: per%ormance" >0.: si*e b. O$.3 perfor!ance, <$.3 si1e c. O$.: perfor!ance, <$.: si1e d. O1.$ perfor!ance, <$.7 si1e e. O$.7 perfor!ance, <1.$ si1e "7(. +inance ecisions should be !ade a. before the other depart!ents enter their decisions. b. at any ti!e. c. a%ter the other departments have entered their decisions. d. after the @H depart!ent has entered its decisions.

e.

none of the above.

"7.. #f you sell all the capacity on a production line, Capstone interprets this as a. a liKuidation instruction and will sell your re!aining inventory for one third of the average cost of b. c. d. e.

production. a li<uidation instruction and will sell your remaining inventory %or hal% the average cost o% production. a liKuidation instruction and will sell your re!aining inventory for 63 percent of the production cost. a liKuidation instruction and will sell your re!aining inventory for 1$ percent of the production cost. a liKuidation instruction but will continue to sell your re!aining inventory for 1$$ percent of the production cost.

"73. Custo!ers evaluate the sensor industry based on> a. 2ositioning. b. @eliability. c. 4ge. d. 2rice. e. )ll o% the )bove. "76. When the )u!an @esources !odule is activated, which areas !ust be addressed? a. Co!ple!ent Dnu!ber of wor'ersE b. Caliber Drecruit!ent of talent of wor'ersE c. ,raining Dti!e wor'ers spend in trainingE d. ;enefits Dretire!ent planning for wor'ersE e. a" b" and c "77. 4 product&s MMMMMMMMMM does not play a role in the rough cut a. 2ositioning b. 2rice c. @eliability d. )ge e. M;,+ "78. #n the +ine Cut, a product&s appeal is drive by its MMMMMMMMMMMMMMMMM. a. Color b. Customer Survey Score c. Ssage d. @ough cut position e. e!and "7:. ,he MMMMMMMMMMMMMM details sales volu!e in all seg!ents, reporting each product&s actual and potential

sales. a. ;alance /heet b. ,ar(et Share /eport c. )@L,IML/ustainability @eport d. @ound 4nalysis e. 4nnual @eport
"8$. 4uto!ation levels are given on a scale of MMMMM to MMMMM. a. $.$5 3.$ b. 1.$5 3.$ c. $.$5 1$.$

d. e.

1.0' 10.0 3.$5 1$.$

"81. Which of the following will give your co!pany an 444 bond rating> a. )ave contribution !argins higher than ($%. b. 4ave absolutely no debt. c. @etire all of the current outstand stoc'. d. 2ay a dividend that is less than E2/. e. @etire bonds before they are due. "8". 2roducts that are !odified through @H > a. 4re always !ore attractive to custo!ers. b. Will allow the co!pany to increase the price. c. 4re thought of as new products. d. )re perceived to be hal% the age as be%ore entering /@8. e. 4re always co!pleted in less than one year. "8(. ;uying criteria order for which two seg!ents is the sa!e> a. ,raditional and 0ow End. b. 2erfor!ance and /i1e. c. Si*e and 4igh End. d. )igh End and 2erfor!ance. e. 2erfor!ance and ,raditional. "8.. Which of the following will result in the highest interest rate> a. #ssuing ;onds. b. #ssuing /toc'. c. Current ebt. d. Emergency #oan. e. ;oth a co!bination of a and b. "83. #n the ece!ber custo!er survey, a product would not receive a perfect score of 1$$ if a. it was priced at the botto! of the expected range. b. it was perfectly positioned. c. it had an ,!. at the middle o% the e1pected range. d. it had 1$$% awareness. e. it had ideal age for seg!ent. "86. Each product can be pro!oted by a. 2rint !edia. b. irect !ail. c. Web !edia. d. ,rade shows. e. )ll o% the above. "87. Which one of the following state!ents regarding preferred position in fine cut is false? a. ,raditional custo!ers want products located in the center of the circle. b. #ow end customers want the newest technology at the cheapest price. c. )igh end custo!ers want high perfor!ance and s!all si1e. d. 2erfor!ance custo!ers prefer higher perfor!ance levels. e. /i1e custo!ers want s!aller si1e.

"88. ,he turnover rate a. is the percentage of wor'ers who left the co!pany last year, excluding down<si1ing. b. does not ignore down<si1ing factors. c. is not driven by recruiting spend or training days. d. is rooted in unavoidable factors li'e retire!ent, relocation and weeding out poor wor'ers Dabout 3%E. e. a and d. "8:. Wor'ers will not stri'e approxi!ately 7 days for a. C1 difference in wages. b. C($$ difference in benefit pac'age. c. percentage point difference in 2rofit /haring. d. 1 hour di%%erence in training. e. percentage point difference in 4nnual @aise. ":$. #n the advanced !ar'eting !odule the ter! AreachB refers to a. the potential number o% customers who would see the advertisement message. b. the potential nu!ber of custo!ers that can be reached by the sales personnel. c. the nu!ber of ti!es a !essage is repeated. d. the pri!ary seg!ent towards which pro!otions will be targeted. e. the fact that all seg!ent respond si!ilarly to each !edia type. ":1. Capital used for financing activities can be acKuired throughMMMMMMMMMMMMMMM. a. Current debt b. /toc' issues c. ;ond issues d. 2rofits e. )ll the above ":". ,he inner fine cut circles on the perceptual !ap have a radius of MMMMMMMM units. a. " b. 2.3 c. ".73 d. 1.3 e. ( ":(. Every year the ,raditional seg!ent circle drifts MMMM in perfor!ance and MMMMM in si1e. a. O1.$, <$.7 b. D0.:" >0.: c. <$.7, O$.7 d. O$.3, <$.3 e. O$.:, <$.: ":.. ,he growth rate for industry de!and in the MMMMM seg!ent is 18.(%. a. ,raditional b. 0ow End c. )igh End d. 2erfor!ance e. Si*e ":3. ,he cost to increase auto!ation to 8.$ is eKual to a. +irst /hift Capacity X PC8 X D. V 4uto!ation 0evelE. b. +irst /hift Capacity X PC8 X D. O 4uto!ation 0evelE.

c. d. e.

irst Shi%t Capacity L C25 L +& M )utomation #evel-. +irst /hift Capacity X PC. X D8 O 4uto!ation 0evelE. +irst /hift Capacity X PC. X D. V 4uto!ation 0evelE.

":6. Co!panies can enter a @ecruiting /pend budget up to an additional MMMM. a. 23"000 b. C7,3$$ c. C1$,$$$ d. C"$,$$$ e. C3$,$$$ ":7. ,he following describe the strategy of ifferentiation with 2roduct 0ifecycle +ocus, except> a. develops an @H co!petency to 'eep designs fresh and exciting. b. concentrates on the )igh End, ,raditional and 0ow End seg!ents. c. prices are below average. d. products !aintains pace with the !ar'et. e. capacity is expanded as de!and is increased. ":8. *ne way to enter sales forecasts and production schedules is to develop a worst caseLbest case scenario.

Where would you enter your best case scenario and where would you enter your worst case scenario? a. 7n the ,ar(eting spreadsheet enter your worst case %orecast in Nour Sales orecast cell" and on the $roduction spreadsheet enter your best case %orecast in the $roduction Schedule cell. b. *n the Mar'eting spreadsheet enter your best case forecast in ?our /ales +orecast cell, and on the 2roduction spreadsheet enter your worst case forecast in the 2roduction /chedule cell. c. Enter your best case forecast for both ?our /ales +orecast cell on the Mar'eting spreadsheet and in the 2roduction /chedule cell on the 2roduction spreadsheet. d. Enter your worst case forecast for both ?our /ales +orecast cell on the Mar'eting spreadsheet and in the 2roduction /chedule cell on the 2roduction spreadsheet. e. -one of the above.
"::. Which of the following state!ents is true about pro!o and sales budget? a. +ro! one year to the next, a third of those who 'new about a product forgot about it. b. #f a product ended last year with an awareness of 3$%, this year it will start with an awareness of c. d. e.

approxi!ately ((%. #f you have two or !ore products that !eet a seg!ent&s fine cut criteria, the sales budget for each product contributes to that seg!ent&s accessibility percentage. Co!panies !ust have at least two products in the seg!ent&s fine cut to achieve 1$$% accessibility. )ll o% the above.

($$. Which of the following is not one of the pri!ary concerns in the +inance epart!ent? a. 4cKuiring the capital needed for co!pany activities. b. Establishing a dividend policy that !axi!i1es the return to shareholders. c. /etting accounts payable and accounts receivable policies. d. riving the financial structure of the fir!, its relationship between debt and eKuity. e. 8eciding promo and sales budget. ($1. Which of the following is not the correct yearly drift rate for the corresponding seg!ent? a. #n the traditional seg!ent perfor!ance drifts by O$.7 and si1e by <$.7. b. #n the low seg!ent perfor!ance drifts by O$.3 and si1e by <$.3. c. #n the high end seg!ent perfor!ance drifts by O$.: and si1e by <$.:. d. #n the perfor!ance seg!ent perfor!ance drifts by O1.$ and si1e by <$.7. e. 0n the si*e segment per%ormance dri%ts by >0.: and si*e by D1.0.

($". ,he C42/#M si!ulation is based on which industry? a. sensor industry b. textile industry c. auto!otive industry d. electronics industry ($(. ?our MMMMMMMMMMM depart!ent controls the perfor!ance and si1e, therefore position of your sensor

products within the !ar'et. a. 2lanning b. +inance c. /@8 d. Mar'eting


($.. Custo!ers go through MMMMMMMMMMMMMMMMstageDsE as they !a'e their purchase decisions. a. fine cut only b. rough cut only c. %ine cut and rough cut d. none of the above ($3. 4ccount @eceivables lag i!pacts sales. 4t no credit ter!s, the appeal falls to about MMMMMM %, at ($ days,

appeal is MMMMM %, at 6$ days, appeal is MMMMMM%. a. :8.3, :", 63 b. 93" K2" K&.3 c. 7$, 83, :: d. none of the above, there is no i!pact
($6. 2roducts with prices, M,;+s or positioning in the seg!ents rough cut do contribute to the seg!ents

accessibility. a. ,rue b. alse


($7. Which !odule in C42/,*-E allows invest!ent in wor'force training? a. 4/ b. 2lanning c. +inance d. Mar'eting ($8. #nvest!ents in training leads to a MMMMMMMMMM and MMMMMMMMM. a. higher costs, higher turnover b. higher productivity" lower turnover c. lower productivity, lower turnover d. none of the above ($:. #n what circu!stance would a co!pany have a high !ar'et share relative to that of its co!petitors, though

it is not !a'ing best use of resources available to it? a. Mar'et share is the best yard stic' for !easuring how effectively and efficiently a co!pany is !a'ing use of its resources. b. Where competitors underper%orm" a company may have a higher mar(et share than that o% its competitors though it is not ma(ing best use o% its resources. c. ,here is no way a co!pany would have a high !ar'et share when it is not !a'ing best use of its resources.

d. e.

4 huge invest!ent in custo!er awareness and accessibility is a s!art way to increase !ar'et share. ;y selling your products at prices lower than those of your co!petitors, you are sure to have a large !ar'et share.

(1$. 4 perfect product Dwith 1$$% awarenessE starting with a survey score of 1$$, why is it that at 6$%

accessibility rating, 8$% of custo!ers have access to a product such that survey score declines fro! 1$$ to 8$? a. ;ecause accessibility for a product is dependent on how well co!petitors& products perfor!. b. 7% the 50% o% customers without accessibility" 20% o% them would ma(e an e1tra e%%ort to ac<uire the product. c. ;ecause accessibility rating is not reliable. d. 4ll of the above.
(11. What is !ost li'ely to happen on introduction of a new product, if you do not buy the production line, in

the year prior to the product&s introduction? a. Nou cannot manu%acture your new product. b. #f the product is !oved close to existing products on the @H spreadsheet, a few but insufficient nu!ber of the new product would be produced. c. ,he product would auto!atically cease to exist. d. ,he new product would stoc' out and there would be a loss in sales revenue. e. -one of the above.
(1". @H a. b. c. d. e.

pro9ect length can be as long as MMMMMMMMMMM. ( !onths " years 1 year ; years ,here is no li!it, it is dependent on positioning and M,;+.

(1(. )ow best would you describe the financial position of the co!pany, at the beginning of the si!ulation

when control of the co!pany is handed over to you? a. 7% moderate e1cellence b. Close to ban'rupt c. ;an'rupt d. )eavily indebted but not close to ban'ruptcy e. ;ad but with a!ple opportunity for i!prove!ent
(1.. )ow is Contribution Margin calculated? a. Material Cost V 0abor Cost b. 2riceYDMaterial Cost<0abor CostE c. $rice M +,aterial cost D #abor costd. 2rice V Material Cost e. 2rofit VDMaterial Cost O 0abor CostE (13. ,he percentage of wor'ers that left the co!pany last year is the> a. Co!ple!ent. b. /eparated E!ployees. c. 2roductivity #ndex. d. !urnover rate. e. -one of the above. (16. 4t the start of the si!ulation, all asse!bly lines have an auto!ation level between>

a. b. c. d. e.

".$ and ..$. ;.0 and 3.0. ..$ and 6.$. 3.$ and 7.$. 6.$ and 8.$.

(17. /eg!ent price ranges drop MMMMM per year. a. C1.$$ b. C$.6$ c. C$.:$ d. 20.30 e. C".$$ (18. Each year the co!pany receives bond ratings. ,he range of these bond ratings fro! best to worse is> a. 4 to +. b. 4 to C. c. to 44. d. to 444. e. ))) to 8. (1:. ,he a. b. c. d. e.

ece!ber Custo!er /urvey indicates a product&s custo!er awareness. how customers perceived the products in the segment. a product&s actual and potential de!and. the accessibility of each product. none of the above.

("$. 2eriod costs include a. @H . b. pro!otion. c. sales and ad!inistration expenses. d. all o% the above. ("1. 0owering the auto!ation level will result in a. receiving a cash pay!ent of C. per unit of capacity. b. a tax credit. c. a charge. d. i!!ediate changes to production lines. e. none of the above. ("". #f all of the capacity on a production line is sold a. all re!aining inventory is sold for half the average cost of production. b. a loss is written off on the inco!e state!ent. c. Capstone interprets the action as a liKuidation instruction. d. the co!pany will receive a cash pay!ent of 63% the original invest!ent on capacity. e. all o% the above. ("(. 4s a general rule, stoc' issues are used to> a. 2rotect you fro! getting a loan fro! ;ig 4l. b. +und the purchase of !ore !ar'et share. c. und long term investments in capacity and automation. d. +und yearly sales and pro!otional budgets.

e.

4ll of the above.

(".. Which seg!ent has the highest growth rate? a. ,raditional b. 0ow end c. )igh end d. $er%ormance e. /i1e ("3. 0oo'ing at the production, if the potential bar is higher than the actual one, a. the co!pany should spend !ore budget in sales. b. the co!pany over produced and !issed sales opportunities. c. the co!pany produced the right a!ount and !issed no sales opportunities. d. the company under produced and missed sales opportunities. e. the co!pany should spend !ore budget in !ar'eting. ("6. #f the potential bar is lower than the actual, a. the co!pany over produced and !issed sales opportunities. b. the co!pany lost sales because other co!panies over produced. c. the company pic(ed up sales because other companies under produced. d. the co!pany produced as !uch as last period and under produced nothing. e. the co!pany under produced and !issed sales opportunities. ("7. #nvesting !ore than C3,$$$,$$$ in the sa!e ,IM initiative over a two or three year period creates a. little or no additional improvement. b. high additional i!prove!ent. c. the sa!e i!prove!ent than last period. d. di!inishing returns. ("8. 4ccording to Capstone, Co!ple!ent is best defined as> a. the number o% wor(ers in your wor(%orce this year. b. letter fro! the si!ulation telling your tea! you did a good 9ob. c. the nu!ber of wor'ers needed to reduce your overti!e. d. none of the above. (":. Capstone&s definition of reach in the !ar'eting !odule is defined by the potential nu!ber of custo!ers

who would see the !essage. ;ased on this definition what seg!ent has AfairB reach with direct !ailing? a. 4igh End b. ,raditional c. 0ow End d. 2erfor!ance e. /i1e
(($. Where are the credit policies for custo!er and supplier set in Capstone.xls? a. ,ar(eting spreadsheet b. 2roduction spreadsheet c. +inance spreadsheet d. Credit spreadsheet e. -one of the above ((1. ,he pri!ary difference between the 2rofor!as and annual reports is> a. 2rofor!as report on product infor!ation5 annual reports report on financial data.

b. c. d. e.

$ro%ormas are proFections o% results %or the upcoming year' annual reports are results %rom the previous year. 2rofor!as are results fro! the previous year5 annual reports are pro9ections of results for the upco!ing year. 2rofor!as report on financial data5 annual reports report on product data. -one of the above.

((". What is the !ost i!portant ele!ent that ensures the accuracy of the 2rofor!as reports? a. 2roduction capacity b. ,ar(eting sales %orecasts c. @ H decisions d. +inancial decisions e. 4ll of the above (((. When should you purchase the production line to produce a new product? a. ,he year you create the product b. ,he year after you create the product c. !he year prior to its introduction d. ,he year of its introduction e. ,he year after its introduction ((.. Which tool can you use as a Kuic' co!parison tool when conducting a co!petitive analysis concerning

production? a. ;ond ratings b. /toc' price c. Customer survey d. Mar'et share e. -one of the above
((3. #n the 2erceptual Map each seg!ent has a set of circles where> a. ,he inner fine cut circles have a radius of . units. b. !he inner %ine cut circles represent the heart o% the segment where demand is strong. c. 4t the center of each inner fine cut circle is the ideal spot where de!and is strongest. d. a and b. e. a, b and c. ((6.

ifferent custo!er de!ands i!pact the seg!ents so that> ,he )igh End /eg!ents drifts at a faster rate than the other seg!ents. 4igh End" $er%ormance and Si*e dri%t at a %aster rate than the other segments. 4ll seg!ents drift at the sa!e rate but the custo!er expectations grow faster in the )igh End, 2erfor!ance and /i1e /eg!ents co!pared to the other seg!ents. d. 4ll seg!ents drift at the sa!e rate but the costu!er expectations grow faster in the )igh End /eg!ent co!pared to the other seg!ents. e. 4ll seg!ents drift at different rate and the overlap between the seg!ents increases over ti!e.
a. b. c.

((7. Which screens are necessary to !a'e a co!plete hu!an resource decision when the advance !odule has

been activated? a. $roduction @ human resources b. Mar'eting H hu!an resources c. +inance H !ar'eting d. )u!an resources H ,IM e. -one of the above choices are correct

((8. What is wor'ing capital? a. !he %unds needed %or the day to day running o% the company b. ,he cash on hand at the end of the day c. 2rofits less current liabilities d. ,he a!ount of funds a co!pany needs to run indefinitely e. ,otal sales less total expenses ((:. What happens if you increase the 4L@ lag days in the !ar'eting screen? a. /ales forecast increases b. Collection ti!e increases c. -othing d. ?ou pay a penalty e. .oth a and b are correct. (.$. Which of the following is an i!portant fact about wor'ing capital in Capsi!? a. ,he life blood of any organi1ation b. 4ll of the !oney tied up in things you one day wish to sell c. Can be seen on the balance sheet under the headings current assets and current liabilities d. ,he change of wor'ing capital can be seen on the cash flow state!ent e. )ll o% the above are important (.1. Which is false about production in Capsi!? a. !eams cannot produce beyond 100% capacity. b. ,ea!s should !atch their production schedule to the tea!s sales forecast. c. ,here is a one year lag between purchase and use of additional production capacity. d. ,here is a one year lag between purchase and use of additional production auto!ation. e. 4ll of the above are true.

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