1). To understand a product's expectancy (relative competitive strength), the best data to analyze is: Stock market results (p. x Capstone Courier)

Market size and growth

TQM investments Market segment results (pp. 5-9 Capstone Courier)

Selected Financial Statistics (p. 1 Capstone Courier)

2). Market size, demand, and growth rate help assess: Market share Valence Economies of scale Expectancy Organizational strength

3). What will be the total Demand in the Traditional segment next round?

4). Based on the data from the Production Analysis data only (ceterus peribus, p. 4 Capstone Courier provided), which of the following statements is correct.

Dot under-forecasted demand

None of the above

Bold has high valence

Bold is 'defending'

Coat has the lowest cost of goods sold

5). What would best explain a negative Contribution margin?

Poor customer value

Material and labor costs are greater than price

Low customer accessibility

Low customer awareness

High fixed costs

6). Referring to the Capstone Courier, which of the following statements is correct for product Duck?

It should increase plant capacity

It should 'attack' next round

It should 'defend' next round

Product Duck is not meeting customer preferences and therefore has low expectancy.

It should increase customer awareness

7). Referring to the Low End segment, which company most underestimated their product's expectancy? Digby

Chester

Andrews

Erie Baldwin

8). Although product Bead in the Low End segment had the highest December Customer Survey score, it did not win the largest market share. What factor best explains this?

Bead did not recognize the high market valence

Bead had too much outdated inventory that customers did not wish to buy

None of the above

Bead under-forecasted production

Bead's revision was too late to market

9). If a new product enters a market segment, according to Porter this would increase rivalry in the segment. What effect would this have (ceterus peribus, i.e. you don't have any other information) on strategic thinking of existing firms?

Existing firms must attack to increase expectancy

Valence would be higher as rivalry has increased

Valence would be lower, and t/f ceterus peribus an attack is less warranted

Existing firms must improve organizational strength and therefore 'attack'

Existing firms should 'avoid' the new rival

10). Which of the following statements are true when assessing market share results?

High market share always indicates high valence

High market share means the company should "attack" going forward?

High market share always indicates high expectancy

High market share is always insufficient to determine expectancy going forward

All of the above are true.

Low market share always results from low market valence

11). Referring to the Perceptual Map, if product Adam (High End segment) improved their customer value proposition, this would most accurately be described as:

Increasing market share

"Strategic bet"

Improving organizational strength

None of the above

A new product launch

12). Use the Andrews Team Annual Report AND Capstone Courier (you'll need both) to identify the root cause of product Acre's low Contribution margin.

High labor cost

Higher than normal pricing Under production

Low fixed costs

Inventory carrying cost

13). Which of the following factors relate to organizational strength assessment (as opposed to product strength assessment)?

MTBF

Market share

Plant capacity

Price

Customer value

14). Of the following, which would most increase the Contribution margin:

Lower cost of goods sold and decrease price

B and C

Decrease cost of goods sold (labor plus material costs) and raise price

Raise product quality and increase price

A and B

15). A very high Contribution margin (i.e. >40%) may be explained by:

None of the above

Lower than normal price

Lower than normal fixed costs

A higher than normal price

Higher than normal variable costs