BUS 475 Strategic Management Topics Answer Guide | June 2017

Rosa Maria attends an interview for a sales manager position at Pixxels Inc

Rosa Maria attends an interview for a sales manager position at Pixxels Inc. As part of the interview process, she is asked to reveal personal information. The company gets Rosa’s consent to share the information with a security company for background verification. Which of the following actions, if taken by the security company, will be unethical?

  • Requesting for additional information
  • Providing Pixxels Inc. reports on Rosa’s online behavior
  • Selling Rosa’s personal information to a third party
  • Contacting Rosa’s previous employer for verification

Explanation: Selling the information to a 3rd party would be a violation of Rosa Marie’s privacy.

In 2006, Dexel Electronics Inc. introduced audio systems in the market for electronic gadgets

In 2006, Dexel Electronics Inc. introduced audio systems in the market for electronic gadgets. Because of an increase in sales volume as well as a growing proportion of repeat purchasers, the company has now upgraded the old version of audio systems by introducing new features. Given this information, in which stage of the product life cycle does Dexel Electronics lie?

  • Introduction
  • Decline
  • Growth
  • Maturity

Explanation: Based on the information, the product is still in the growth stage as its customer base is growing and requesting new features.

A popular hypermarket chain came under criticism for failing to protect the e-mail addresses and credit card details of 50,000 customers

A popular hypermarket chain came under criticism for failing to protect the e-mail addresses and credit card details of 50,000 customers. CloudCom Inc., a web services company, identified that the lapse was because of a worm that had breached the hypermarket’s internal servers through an unauthorized e-mail, and that the anti-malware system failed to catch the worm. Which of the following actions should CloudCom take to restrict such malwares from entering the hypermarkeťs internal network?

  • Firewall
  • Use a virtual private network to connect its users
  • Update the anti-malware system’s database
  • Whitelist the malware

Explanation: New malware is constantly being updated and the protection database must be updated to catch new instances.

Dupon Inc. is a leading manufacturer of handheld game consoles

Dupon Inc. is a leading manufacturer of handheld game consoles. Each console manufactured by the firm has a different game. Although the video game industry faced a sharp decline in demand with the introduction of mobile games, Dupon still holds a significant market share for handheld games compared to its competitors. To hold the market share, Dupon provides discounts to customers purchasing more than one console. Which of the following stages of the product life cycle is Dupon’s products going through?

The decline stage

Explanation: This question relates to the product lifecycle. Dupon has passed its peak of growth and maturity stages and is now declining as a result of mobile gaming.

FarmFresh Inc. partners with multiple retailers to sell its organic products.

FarmFresh Inc. partners with multiple retailers to sell its organic products. If stocks fall below a product’s threshold, the retail managers raise purchase orders to FarmFresh. It takes two days for FarmFresh to process the orders and dispatch the products. The process proves to be ineffective when the retail stores do not have the stock to meet a sudden increase in demand. How can supply chain management (SCM) systems solve this problem and make the process more efficient?

  • Managers from the retail stores can raise purchase orders over telephone.
  • The retail stores can track the status of a shipment.
  • FarmFresh can have real-time access to sales information.
  • Customers can track the status of a product delivery.

Explanation: Real time data from supply chain management (SCM) systems will allow FarmFresh to automatically trigger orders when demand thresholds are met.

Sam’s stores, a popular retail store, uses barcode scanners to scan each product that it sells

Sam’s stores, a popular retail store, uses barcode scanners to scan each product that it sells. The data generated from the scanners are saved in a database. The database is updated every time a product is scanned and sold. This computer based information system helps managers access and analyze sales data. Which of the following systems is the store using for its business?

  • Expert system
  • Supply chain management system
  • Electronic commerce system
  • Transaction processing system

Dupon Inc., a leading manufacturer of handheld game consoles

Dupon Inc., a leading manufacturer of handheld game consoles, decides to enter the global marketplace. It decides to sell its products directly in a foreign country. The foreign government denies permission to the company on the grounds of protecting domestic manufacturers. However, the government is willing to change its decision if the company contributes to local employment. Which of the following strategies of entering the foreign market will present the least risk to the company while also meeting the government’s condition?

  • Direct investment
  • Direct exporting
  • Contract assembly
  • Joint venture

Explanation: Direct investment would allow the company to acquire controlling stake in a company that already employs people in the target country.

Mirabel Inc. has recently ventured into the home cleaning supplies market with its very own floor cleaner

Mirabel Inc. has recently ventured into the home cleaning supplies market with its very own floor cleaner, Flofix, which does not contain any harmful chemicals such as phenol. The company has used aggressive marketing strategies and innovative advertising campaigns to promote the product. The company’s revenue analysis shows that the sales for the product are increasing steadily. However, when the market survey team of the company surveyed a large number of consumers in the target market, the consumers mentioned that they had not switched over to the new brand of floor cleaner. Which of the following, if true, best explains how the sales for the company went up in spite of consumers not purchasing the product?

Organizational buyers purchase new products before consumers do.

Explanation: The only potential solution to this problem is that sales are continuing from a different source.

 
  • Student: Dimitri Bush
  • Textbook: Variety
  • Course: BUS 475 – 2017/18
 

BUS/475 Answer Guide Contents

Check out our latest updated June 2017 Study Guide. 

 

Your browser is out of date. It has security vulnerabilities and may not display all features on this site and other sites.

Please update your browser using one of modern browsers (Google Chrome, Opera, Firefox, IE 10).

X