mgmt quiz1

The options that a company has for assembling enough cameras to meet peak-

quarter orders form retailers include hiring “temporary” PATs, the use of overtime, and outsourcing assembly to contact

assemblers.

adding a second shift of “temporary” PATs and use of overtime.

the use of overtime and outsourcing assembly to contract assemblers.

just the use of overtime. setting up a temporary assembly line in the unoccupied storage and warehouse space

at the back of the company’s production facility and staffing the assembly line with temporary workers.

The factors that affect the productivity of PATs include PAT training and experience, the number of PATs laid off, base pay increases,

warranty claim rates, and P/Q ratings the size of incentive bonuses paid to workers, base pay increases, perfect attendance

bonuses, the size of the fringe benefits package, how favorably the overall size of a company’s compensation package compares with the industry-average compensation package, expenditures for PAT training and productivity improvement, and changes in

the number of models. P/Q ratings, warranty claim rates, the amount of overtime, the percentage of cameras

outsourced, and how many cameras are assembled each quarter. the complexity of the company’s camera designs; a company’s cumulative spending

for new product R&D, engineering and design; the number of models; camera body

ergonomics/durability; and the number of camera components. Perfect attendance bonuses, how much overtime is offered to PATs so as to boost their

take-home pay, how many PATs are laid off, the percentage of newly-hired PATs, the percentage use of temporary PATs, and PAT compensation levels.

Consumer purchases of digital cameras are seasonal with about 15% of consumer demand coming in quarter 1, 15% in quarter 2, 25% in quarter

3, and 45% in quarter 4. about 15% of consumer demand coming in quarter 1, 15% in quarter 2, 20% in quarter




3, and 40% in quarter 4.Which of the following most accurately describes your company’s

production/assembly operations?

Most all camera components are sourced from outside suppliers having plants or distribution centers near the company’s assembly facility; the company uses workstations staffed by 4-person teams to assemble cameras. In the most recent year, the current productivity of the assembly teams was 2,500 cameras per quarter or 10,000 per year. Some cameras are outsourced from contract assemblers that are paid a $25 fee for each

camera assembled. The company makes most all of its camera components in-house and assembles

cameras on a 100-person assembly line at the rate of 2,000 per hour. Assembly costs are

$2 per camera. The company operates a plant to makes the needed camera components and in an

adjoining building assembles the components into finished cameras using 5-person teams working two shifts daily. The teams assemble 5,000 cameras per year at a cost of $5 per

camera. About 80% of the cameras are assembled in-house using components sourced from

outside suppliers; company assembly occurs evenly across all four quarters at the rate of 20% per quarter. The remaining 20% are outsourced from nearby contract assemblers

during the peak holiday season fourth quarter when camera buying is at its peak. About 75% of the cameras are assembled in-house by 4-person teams using company-

produced components. In-house assembly averages $3.50 per camera. About 25% of the cameras are outsourced from nearby camera assembly companies that are paid $3.75 per camera assembled. Most of the cameras outsourcing occurs in Quarter 3 of each year when retailer demand is at its peak.

The market for digital cameras is projected to grow

about 20% annually through Year 15. 20% annually for Years 6-10, and then slow gradually to 10% annually by Year15.

at 8-10% annually during the Year 6-Year 10 period and at 4-6% annually during the

Year 11-Year 15 period at rates that increase 1% each year, starting from 6% in Year 6 and rising to 15% by

Year 15. at rates slowly decline from the current 22% annually down to 10% annually.

The decisions that company co-managers make each year are organized around components production and assembly, distribution and retailer relations, advertising

and promotion, customer service, and accounting. supply chain management, components production, assembly, sales force

management, advertising, and cash flow management. new product R&D, components production, work force management, sales and

marketing, and finance. new product R&D, production and assembly, marketing, customer service, and

finance.

marketing, product design, assembly/shipping, compensation and labor force, and finance.

A camera-maker’s price competitiveness in a particular geographic region is

determined by how favorably the company’s price compares to the highest price being charged by a

rival company in that same geographic region. whether a company’s price is at least 20% below the highest-priced camera brand in

the region. whether a company’s price is within 20% of the lowest-priced camera brand in the

region. how favorably the company’s price compares with the lowest price being charged by a

rival in that same geographic region. whether its price is above or below the average price of all companies competing in

that geographic region.

Which of the following currencies are not involved in affecting the revenues your company receives on camera shipments to retailers in the four geographic regions of the

world where it markets cameras?

Euros

Swiss francs, South African rand, Chilean pesos, and Turkish lira

U.S. dollars

Brazilian real and Taiwan dollars. Singapore dollars

The factors that affect a company’s P/Q rating include: how far above the lowest-priced brand a company’s price is, camera quality, and

assembly worker experience. the caliber of core components; a company’s cumulative spending for new product

R&D, engineering and design; the number of models; camera body ergonomics/durability; and the number of special utility features .price and camera

quality. camera performance and durability, warranty claim rates, and PAT experience

the percentage of cameras outsourced from contract assemblers, warranty costs, the number of models, how far a company’s price is above the industry average, PAT

productivity. the size of incentive bonuses paid to workers for defect-free assembly, warranty claim

rates, the age of assembly workstations, camera quality, and picture quality.

The company’s present assembly facility can accommodate

Up to 150 workstations.



Up to 300 workstations. Up to 500 workstations.

Which one of the following is not a factor in determining a company’s unit sales and market share of entry-level or multi-featured cameras in a particular geographic region?

P/Q ratings and number of models

The percentage of cameras outsourced, the size of promotional discounts, and the company’s credit rating

The length of warranty period, and the size of the budget for technical support budget

The number and length of special promotions each quarter and the number of retailers stocking the company’s lines of cameras

Wholesale selling prices and expenditures on advertising

Which of the following are components of the compensation package for members of

production assembly teams? Daily wages, fringe benefits, and a piecework bonus of $0.10 per camera assembled

Annual base pay, incentive bonuses, perfect attendance bonuses, and fringe benefits

Weekly salary, fringe benefits, and overtime pay

Hourly wages, fringe benefits, and overtime pay Annual base salary, teamwork bonuses, fringe benefits, and stock options

The interest rate a company pays on loans outstanding depends on

its credit rating. Its net profit margins, ROE, and amount of cash on hand to make interest payments

Its stock price, global market share, net profits, and balance sheet strength

How much it has borrowed against its credit line How many consecutive years the company has been profitable, its current ratio, and its

ROE

Which of the following is not an accurate description of the market for digital cameras?

There are about 50,000 retailers worldwide, most of which are local camera shops.

Retailers get their cameras from camera-makers on a just-in-time delivery basis. Camera buyers are very knowledgeable about digital cameras; many do Internet research

to educate themselves about features, performance, and prices of competing brands.

Retailers typically stock several brands of digital cameras. Local camera shops account for the biggest share of multi-featured camera sales, with

online retailers second; multi-store retail chains account for the biggest share of entry-level digital camera sales.

Which the following are the four geographic regions in which the company is currently selling its cameras?

Europe-Africa, Latin America, Asia-Pacific, and North America

Middle East, North America, South America, and Asia.

The European Union, North America, Southeast Asia, and Latin America

Most of Latin America, Europe, Japan/South Korea, and North America

Western Europe, Asia, North America, and South America

The company’s shipments of digital cameras to retailers in various foreign countries are subject to

exchange rate adjustments and potential delays due to dockworker strikes.

export fees equal to $5 per camera.

import quotas on the part of the countries to which the cameras are shipped

import duties imposed by the countries to which the cameras are shipped and the effects of fluctuating exchange rates.

freight surcharges of as much as $5 per camera when retailers insist on 1-week delivery.

Which of the following statements accurately describes the distribution of the company’s unit sales across the four geographic regions in which it sells cameras?

The company sells 50% in its biggest region, 25% in its second biggest region, 20% in the

third region, and only 5% in the fourth region. The company’s camera sales are distributed equally across the 4 regions, with 25% of unit

sales in each region. The company sells 40% of its cameras in each of 2 regions and 10% in each of the other 2

regions. The company sells 40% of its cameras its biggest region and sells only 10% of its cameras

in its smallest region. The company sells 60% in its biggest region, 20% in its second biggest region, 15% in the

third region, and only 5% in the fourth region

The company is headquartered and has its production facilities in

the United States.

China.

Germany.

Japan. Taiwan.

Which of the following are not measures on which a company’s performance is

judged/scored?

Credit rating and image rating

Earnings per share

Dividend payments, revenues, market share, and P/Q rating

Stock price appreciation ROE

Which the following are not factors in determining a company’s credit rating?

Its debt payoff capability

Its debt-equity ratio

Its times-interest-earned ratio

The percentage of the line of credit that has been used A company’s current ratio, how much it has in accounts receivable, and how many times it

has cut its dividend

mgmt quiz1

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