1. A companys managers should probably give serious, consideration to changing from a low cost/low price strategy for entry-level cameras to a different strategy when

a.The companys market share of entry-level camera sales is below 30% in all four geographic regions, its credit rating is below an A, and its ROE is below 18%.

b. Sizable unfavourable shifted in exchange rates can occur in one or more region, thereby causing the companys EPS to fall far below Investor Expectations.

c.The low price end of the market for entry level cameras is overcrowded with competitors, making it difficult to earn attractive profits in the low price end of the entry level cameras marketplace.

d. the companys operating profits per entry level camera sold are not close to the higher in the industry in at least three geographic regions ( based on information reported on p. of the most recent GLO BUS Statistical Review).

e. a big fraction of the companies in the industry are marketing 4 or more model of entry level cameras with a P/Q rating of 4 stars or higher.

2.Which of the following combination of actions will likely provide the biggest competitive benefits in helping a company achieve a differentiation based competitive advantage over some/many of its rivals that are selling multi featured cameras?

a. Charging prices for multi featured cameras that are $5 or more above any other company in the industry in all four geographic regions and offering buyers a choice of 3 models of multi featured cameras with a P/Q rating of 3.5 stars or higher.

b. Charging prices for multi featured cameras that are $10 higher than any other company in the industry in all four geographic regions and striving to market multi featured cameras with a targeted P/Q rating that is about 0.5 stars above the prior years industry average (as shown In the graph at the bottom of p. 4 of the most recent GLO BUS Statistical Review).

c. Offering buyer 5 models of multi featured cameras with a P/Q rating of 4 stars or higher and a warranty period of 2 years, spending above average amounts on quarterly advertising in all four geographic regions, and having 2 quarterly promotions of 4 weeks each with a discount of 16% or higher in all 4 geographic regions

d. Striving to have a total compensation pay package for full-time PAT members that is the highest in the industry, outspending all other companies in the industry in corporate social responsibility and citizenship, and charging process for multi-featured cameras that are $2-$3 below the most-expensively priced multi-featured camera in the prior year in all four geographic regions

e. Spending heavily on quarterly PAT training and productivity improvement, outspending all other companies in the industry on corporate social responsibility and citizenship, and marketing multi-featured cameras with a 4-star or higher P/Q rating

3.Which one of the following is NOT a way to improve the P/Q rating of a companys brand of multi-featured cameras?

a. Increasing the number of models in =the companys line of multi-featured cameras

b. Improving the calibre of core component used in making the companys multi-featured cameras

c. Spending additional money to improve the brand-specific components used in making the companys multi-featured cameras

d. Adding more special utility features

e. Increasing expenditures for new product R&D, engineering, and design

4. Actions that can lead to higher labour productivity in assembling cameras do NOT include

a. increasing the quarterly bonus for perfect attendance

b. reducing the number of entry-level and/or multi-featured camera models being assembled

c. using higher calibre core components in both entry-level and multi-featured cameras (using better component speeds up camera assembly)

d. increased quarterly expenditures for PAT training and productivity improvement

e. increasing total annual compensation per full-time PAT member

5. Which of the following actions does not help make a companys brand of entry-level cameras more competitive and attractive to buyers vis--vis the brands of rival firms?

a. Increasing the P/Q rating of the companys entry-level cameras from 3 stars to 4 stars in all four geographic regions

b.Not outsourcing the assembly of entry-level cameras to contract suppliers (which risks damaging the companys image rating)

c. Increasing the number of entry-level camera models in the companys product line from 3 models to 5 models

d.Increasing advertising expenditures by $500,000 per quarter in the two geographic regions where the companys market shares of entry-level camera sales are lowest

e.Increasing the price discount offered during the companys promotional campaigns for entry-level cameras and also increasing the length of the warranty period for entry-level cameras