GLO-BUS Statistical Review QUIZ 2
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1) A company’s 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 company’s 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 company’s 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 company’s 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...