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Senior Business Policy
Terms in this set (58)
The Finance Department can use which of the following methods to acquire capital for company activities?
Current Debt, Stock Issues, Bond Issues and Profits
Once you upload your official decisions during a round, how many times can you change them before the end of the round?
As many times as you want
Assuming no additional product promotion, what percent of customers, reached through last year's marketing campaign will carry over into the current year?
What are the three effects of an increase in Automation?
A decrease in labor hours.
Longer repositioning period in R&D.
How is performance scaled?
0 (low performance) to 20 (high performance)
When a segment's product demand outstrips supply,
A product's MTBF can go 4,900 hours below the range without affecting sales.
At 5,000 below the range, products will lose all appeal.
The Traditional ideal spot is
Near the center of its circle.
If your company has a sales budget of $3 million and drops it to zero,
accessibility drops to 0% in three years.
When purchasing increased Capacity and Automation, the new capacity becomes available,
in 1 year.
The economic environment for this simulation game will include
a favorable environment featuring modest growth, low inflation, and reasonable interest rates.
When a segment's product demand outstrips supply
products lose 20% for each dollar above or below the segment guideline.
Dividends are paid to the stockholders in
quarterly installments at a rate per share that you establish at the beginning of the year.
Which of the following is true about the Accounts Receivable Lag and its implications on demand?
At 60 days, demand is 98.5%.
The Perceptual Map is
a marketing tool used to compare products against customer perceptions.
Stock price is a function of:
Book value, Earnings per Share, and Dividend
Which three factors drive labor cost?
Wage and benefit rates.
Second shift/Overtime costs.
Emergency loans are made at what rate over the normal Current Debt interest rate?
Capacity is sold by
entering a negative number in the Buy/Sell row on the Production Spreadsheet.
The Ideal Spot
drifts at same pace as the segment.
What is one draw-back of increasing automation?
The product requires Increased time/expense for subsequent short-move repositioning.
Marketing is concerned with 4 things. What are they?
Price, Place, Promotion, and Product
A change in MTBF affects:
Within the process management initiatives, concurrent engineering
reduces R&D cycle time, the time needed to move products on the perceptual map and change the MTBF specifications.
Pricing plays a role
in the rough cut stage of the purchase decision.
in the fine cut stage of the purchase decision.
How can assembly lines double their output?
Add a second shift.
If a line has a capacity of 100,000 units, the cost of changing the automation level 1 unit either up or down is
R&D completion time depends on
number of projects in R&D.
similarity to existing products.
Budgeting money to Quality initiative will lead to these outcomes except:
increase Labor Costs.
When plotting the segment locations for each round
al is to determine the ideal spot location for each segment during the 8 years.
If a product's Price was $20, its Material $8, and its Labor $7, the Margin Per Unit would be:
If you want to add 500,000 units of capacity to an assembly line with an automation rating of 5, how much will it cost? (Hint: $6 for floor space and $4 times automation level.)
If you purchase production capacity and automation:
it is available in the next year.
Two questions that dominate customers' thinking are:
Size and Performance.
How can R&D time be reduced?
budgeting money to quality initiatives.
What is your bond rate? The prime rate is 10%; your current bond rating slipped one category (to AA).
The relative cost of a product's Material increases as: Size is ______; Performance is ______; and MTBF is ______.
decreased; increased; raised
In Capstone©, pricing standards are set by:
Customers (Market Segments).
The two characteristics that the perceptual map evaluates are
Performance and Size.
What is the starting awareness percentage of a new product?
Rapid movement of an existing product on the Perceptual Map requires
low automation levels.
What section of the perceptual map is considered ideal for the low end segment?
Which product attribute do Low End customers value the most?
Which Automation rating requires the longest time to reposition a product?
If you are marketing to High End customers, which criteria is most important to them in order of importance?
Positioning, Age, MTBF, Price
Which customer group or market segment seeks high reliability, advanced technology products that emphasize high performance?
Increasing a product's reliability will result in which of the following changes to production costs?
Higher material cost
Increasing performance and shrinking size does what to the material cost?
The traditional market segment makes up what percentage of sales, in dollars?
What is the most important criteria to a "Traditional Segment" consumer?
If you increase automation from 2.0 to 5.0, the cost is:
$12 per unit of capacity.
Inside each fine cut circle,
segments have an ideal spot where demand is at its highest.
Over time, the segments will drift in which direction on the Perceptual Map?
What is the most important criteria to a "Low End Segment" customer?
The higher a company's automation level,
the lower a company's labor costs.
In the Capstone® simulation, what are the components of a product's material cost?
Reliability component cost and positioning component cost
What percentage of the entire market segment does Low End make up for?
What percentage of additional awareness does the first $1,000,000 increase in promotion budget buy?
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