GLO-BUS-Sample Quiz Questions

Reducing total annual compensation costs for PAT's because such spending once it reaches $25 million annually and a cumulative total of $100 million, allows the size of PAT's to be reduced from 4 persons to 2 persons Boosting a company's P/Q rating (the size of this benefit varies with the current and cumulative amounts spent and show up in the P/Q rating's at the beginning of the following year.

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

Taiwan

The amounts by which the company's credit rating and customer service rating are above/below the regional average

Cameras and drones are both assembled by 4-person PATs, however installation of robotic upgrades to camera drone workstations permits the size of PAT's to be cut to 3 person

Potential buyers pay little attention to the search engine advertising they encounter when browsing for information about UAV drones, and their decisions ultimately purchase this or that brand are unaffected by these ads. When two brands of drones have slightly different prices and P/Q ratings (and all other buyer considerations are on balance, an even trade-off between the two brands ) then a bigger percentage of buyers in North America and Europe-Africa (as compared to the Asia Pacific and Latin America Regions will disregard which brand has the higher P/Q rating and purchase the lower price brand

Very often the most appealing competitive approach a company can employ is a "more value for the money" strategy (for example: selling 8-star cameras and drones at lower prices than other 8-star brands) where your competitive advantage is an ability to incorporate "upscale" product attributes with high buyer appeal at lower costs than rivals and thereby underprice rival brands of cameras and drones having comparable attributes and P/Q ratings

If EPS gives an instructor-assigned weight of 20 points, a company with an industry leading EPS performance of $5.00 (that is above investor -expected EPS of $3.70) gets a score of 20 points and a company with EPS of $3.00 (Which is 60% as good as they leader's of $5.00) gets a score of 12 points (60% of 20 points) If image Rating is given a weight of 20 points by your instructor, a company with an industry-leading Image Rating of 80 (10 points above the investor expected rating of at least 70) earns a score of 20 points. If ROE is given a weight of 20 points by your instructor a company with an industry-leading ROE performance of 30% that happens to be 5% points above the investor expected ROE at 25% earns a score of 20 points plus 5 point bonus for achieving an ROE that is five percentage points above the investor expected ROE

How the total compensation packages (not including overtime pay) of camera/drone PAT members compare to the all-company average compensation levels and the amount a company spends annually per camera/drone PAT on training and productivity-enhancing assembly methods the size of assembly quality incentives paid to camera/drone PATs, how favorably the overall size of the company's total compensation package (not including overtime pay) per camera/drone PAT member compares against the camera/drone all-company averages, and changes in the number of camera/drone models that have to be assembled.

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

The P/Q ratings of the various brands of UAV drones offered for sale in the region

The color and weight of camera body

A company's cumulative spending on product advertisement

People interested in purchasing a wearable action camera to record videos of their activities do not research to educate themselves about features, performance, and prices of the various brands and models.

its current ratio, its debt to equity ratio, and its interest coverage ratio

Europe-Africa euro- rands

Whether a company's credit rating is B or better and how many special utility features it has incorporated into its cameras The extent to which a company's online price for its action cameras at its website in each geographic region is above/below the all-company regional average online price

How much its average wholesale price to camera retailers in the region is above or below the regional average wholesale price. Whether its price is above or below the average price of all companies competing in that geographic region e. How favorably the company's price compares to the highest price being charged by a rival company in the same geographic region

People interested in purchasing a wearable action camera to record vedios of their activities do not research to educate themselves about features, performance, and prices of the various brands and models. Retailers typically carry anywhere from 2-4 brands of action capture cameras and stock only certain model of the brands they do carry, but in all 4 geographic markets there are around 20 full line action camera retailers that stock most of all brands and models

Reducing total annual compensation cost for PAT's because such spending once it reaches $25 million annually and cumulative total of $100 million, allows the size of PAT's to be reduced from 4 persons to 2 persons

The amounts by which the company's credit rating and customer service rating are above/below the regional average.

If ROE is given a weight of 20 points by your instructor, a company with an industry leading ROE performance of 30% that happens to be 5% points above the investor expected ROE of 25% earns a score of 20 points plus a 5 point bonus for achieving an ROE that is five percentage points above the investor expected ROE

The caliber of the built-in GPS/Wifi/Bluetooth components, rotor performance and flight controller features/ performance, and body frame construction

The company makes the majority of the needed camera components at facilities close to its Taiwan assembly plant; newly produced camera components are transferred by truck on a just in time basis to the company's camera assembly facilities where the company operates a 250 person assembly line capable of turning out 3250 cameras per hour. There is ample space at the cameras assembly facility to add two more 250 person assembly lines should they be needed later to fill incoming buyer orders.

6-8% annually for years 6-10 and then grow at a slower 4-6% annual rate during the years 11-15

The purchasers of drones in North America are less sensitive to cross brand differences in P/Q ratings than are dron purchasers in Latin America, rather, the biggest factor affecting the purchases decisions of North America Drone buyers are the retail prices being charged for the various brands of UAV drones

Annual base wage, assembly quality incentive ($ per unit assembled divided equally among PAT members), year end bonus for perfect attendance, and the dollar cost of a PAT member's fringe benefit package!

The most powerful strategy and competitive approach a company can employ is most often one of differentiating your company's cameras/drones from rival rands based on such attributes as product performance and quality, number of models, warranties, and other competitive factors that matter a lot to buyers and thereby outcompeted rivals with a product offering that has greater overall appearance to a highly profitable number of buyers.

The buyers of action cameras in Latin America and Asia pacific region are more sensitive to cross brand differences in P/Q ratings than are action camera buyers in North America and Europe-Africa

Shifting to robot assisted assembly results in added annual maintenance costs per workstation because robots require monthly maintenance and, also from time to time, breakdown and have to be repaired

The size of assembly quality incentives paid to PATs, the size of th fringe benefits package, how the total compensation packages (not inlcuding overtime pay ) of PAT members compare to the all company average compensation levels, and the amount a company spends annually per camera/drone PAT on training and productivity enhancing assembly methods. the size of incentive bonuses 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.

The size of the assembly quality incentives paid to camera/drone PATs, how favorable the size of a company's total compensation package (not including overtime pay) per camera/drone PAT member compare against the camera/drone all company average and changes in the number of camera/drone models that have to be assembled

Revenues

Singapore dollars, Euros, US Dollars, Brazilian Real, and Taiwan Dollars

its interest coverage ratio

The company's current credit rating, going rates of interest in world financial markets and the payback period (1, 5, 10 years)

How far its average wholesale price in the region is above or below the regional average wholesale price

The size of assembly quality incentives it pays to camera PAT members, warranty claim rates, or the percentage of camera assembly workstations that utilize robot assisted assembly methods.

The number of supplies the company utilizes for its purchases of drone materials and components

Beating one of the five investor expectation targets results in a bonus award of 1% for each 1% of the annual target is exceeded (up to a maximum of 40%), thus, if achieving the EPS target is worth 20 points, a company can earn a score of 28 points by beating the annual EPS target by 40% or more

Retailers in any geographic region can order action cameras one business day and receive them 5 business days later.

The purchasers of drones in Latin America and the asia-pacific regions are less sensitive to cross-brand price differences than are drone purchasers in North America and Europe-Africa; rather, the biggest factor affecting their purchase decisions are the P/Q rating of the various brands of UAV drons

Reducing annual maintenance costs for installed camera/drone workstations (this benefit show up at the beginning of the following year)

Its Debt to equity Ratio

Revenues and customer satisfaction

Because GLO-BUS has not built in Bias that favors any one strategy or approach to competing over all the others, there are multiple strategic approaches and sets of competitive efforts/actions that, if properly designed and well executed, are capable of producing competitive success in the global market for cameras/drones provided they are not overpowered or thwarted by even more potent strategic approaches and competitive actions/efforts that are well executed by rival companies

How much its average wholesale price to camera retailers in the region is above or below the regional average wholesale price.

Image sensor size, the size of the LCD display screen, the image quality of the videos and still pictures, and the number of photo modes for videos and still pictures

Cameras are assembled by 4- person PAT's while drones are assembled by 5-person PAT's due to the added number of components and more complicated assembly methods

The dollar-cost of a PAT member's fringe benefit package, assembly quality incentives ($ per unit assembled divided equally among PAT members), year-end bonus for perfect attendance, and annual base wage

up to 150 workstations, without expanding the size of the plant.

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

its credit rating.

The size of the company's year-end cash balance, the average of its ROE for the past three years, and how many times the company has been put on credit watch.

Consumer purchases of digital cameras are seasonal with about 20% of consumer demand coming in quarter 1, 20% in quarter 2, 20% in quarter 3 and 40% in quarter 4.

U.S. dollars, Taiwan dollars, Singapore dollars, euros, and Brazilian real.

The size of the incentive bonus paid to PATs, the percentage of cameras that were outsourced, and warranty claims costs.

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

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

hiring "temporary" PATs, the use of overtime, and outsourcing assembly to contact assemblers.

Retailers get their cameras from camera-makers on a just-in-time delivery basis.

P/Q rating, dividend payments, revenues, market share, and total number of cameras sold, and balance sheet strength.

Most all camera components are sources 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 sells 40% of its cameras its biggest region and sells only 10% of its cameras in its smallest region.

Increasing the number of models in the company's line of multi-featured cameras.

Delivery costs are 2.8% of revenues and represent the company's smallest cost component.

an enhanced image rating, provided company spending for socially responsible activities is meaningful and is sustained over a multi-year period.

Issue additional shares of stock and use the proceeds to pay down the debt outstanding on the company's line of credit.

Achieve a differentiation-based competitive advantage over rivals in both the entry-level and multi-featured camera segments that company managers are savvy enough to sustain; as the market demand for digital cameras grows worldwide and the company exploits its competitive advantage to win additional sales, the profit margins from a growing sales volume of entry-level and multi-featured digital cameras typically results in increase in EPS.

Are worth careful scrutiny by the managers of all companies because when the bench-marking data signals that a company's costs/operating profits for one or more of the benchmarks are clearly out-of-line (or unappealing), managers are well advised to take corrective action in the next decision round.

Actions to raise the base pay of PAT members by 10% or more each year, charging prices for entry-level cameras that are $5 or more above any other company in that industry in all four geographic regions, and spending more on new product R&D per entry-level camera that is the highest in the industry (as reported on p. 5 of each issue of the GLO-BUS Statistical Review.)

Avoiding contracting the assembly of cameras to outside suppliers/contractors.

Increasing total compensation of PAT members to boost their productivity in assembling multi-featured cameras.

Issue additional shares of stock and use the proceeds to pay down the loans on the company's line of credit.

When the market for high-end multi-featured cameras is crowded with companies using more or less copycat differentiation strategies to try to out-compete one another, thus making it difficult for any of these companies to earn attractively high profits.

Striving to keep the labor costs per camera assembled in-house to amounts that are well below the industry-average benchmark (as reported on p. 5 of each issue of the Glo-BUS Statistical Review).

explore correcting most or all of the company's competitive weaknesses (shown at the bottom of the latest Competitive Intelligence Report for the Europe-Africa region); in addition, managers should initiate actions that they believe will result in the company having at least two important competitive strengths vis-a-vis its Europe-Africa rivals in the upcoming decision round.

the Quarterly Snapshot data in the top sections of the Competitive Intelligence Report that shows each company's competitive efforts (advertising, tech support, prices, P/Q ratings, promotions, models available, and so on) in each geographic region.

so many other rival companies are marketing low-priced multi-featured cameras that intensive competition in the low-end multi-featured camera segment makes it quite difficult for every company competing for buyers of low-priced multi-featured cameras to capture big enough revenues and global market share to earn attractively large profits selling low-priced multi-featured cameras.