Question

In: Economics

Newport Industries is one of the first producers of a unique consumer product. The company has...

  1. Newport Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Newport's approach to pricing is a classic example of the skimming strategy.

    True

    False

  2. The ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years.

    True

    False

  3. In the evaluation of the promotion, it's best to establish a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.

    True

    False

  4. Bright Electronics has found it needs to reorganize, including a significant trim of its middle management. This action will likely result in

    acquiring additional firms.

    flattening the organization and empowering employees, allowing them to get closer to the customer.

    increasing the size of its traditional departments to handle 24/7 operations.

    centralizing its decision making to better control its total quality management program.

  5. Empowerment means:

    giving employees the authority to make decisions.

    making certain that employees always defer to management when making decisions.

    hiring employees that do not require training due to the costly nature of this activity.

    asking employees to write the policies which govern their jobs.

  6. School Days Centers specialize in helping students with difficulties. With locations around the country, each center consists of a manager and several tutor and counselors. The counselors and tutor have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that School Days is an inverted organization.

    True

    False

Solutions

Expert Solution

1. Newport Industries is one of the first producers of a unique consumer product. The company has chosen a low-price strategy, hoping this will enable them to quickly attract many customers while discouraging potential competitors from entering the market. Newport's approach to pricing is a classic example of the skimming strategy.

Ans: False. This is an example of penetration pricing. Wherein prices are kept low to gain market share in a short time.

2. The ability to integrate computers into the design and manufacture of products has had the greatest impact on production techniques in recent years.

Ans: True. The computer plays a significant role in the automation of menial tasks

3. In the evaluation of the promotion, it's best to establish a promotional strategy that can reach multiple targets rather than developing a separate promotion mix for each target group.

Ans: True. If we have to reduce costs.

4. Bright Electronics has found it needs to reorganize, including a significant trim of its middle management. This action will likely result in

Ans: centralizing its decision making to better control its total quality management program.

5. Empowerment means:

Ans: giving employees the authority to make decisions.

6. School Days Centers specialize in helping students with difficulties. With locations around the country, each center consists of a manager and counselors. The counselors have a great deal of flexibility to design programs specifically for individual students. In fact, these first-line employees are considered to be the key people in the organization, and the manager's main function is to assist these employees in matters such as scheduling and securing necessary materials. This type of arrangement suggests that School Days is an inverted organization.

Ans: False. This is a straight structure and not an inverted structure


Related Solutions

Unique Furniture Limited is one of the leading producers of wood furniture in Ghana and is...
Unique Furniture Limited is one of the leading producers of wood furniture in Ghana and is also well known in the housing estate industry. Its products include household furniture, office furniture and industrial furniture. In the housing estate industry, it has partnership agreements with contractors to roof houses, fix doors and windows and provide all the furniture in the estate houses and office accommodation units that are being constructed by the latter. Its unique finishings are enhanced by the modern...
Hyundai Heavy Industries Co. is one of Korea’s largest industrial producers. According to an article in...
Hyundai Heavy Industries Co. is one of Korea’s largest industrial producers. According to an article in BusinessWeek Online, the company is not only the world’s largest shipbuilder but also manufactures other industrial goods ranging from construction equipment and marine engines to building power plants and oil refineries worldwide. Despite being a major industrial force in Korea, several of the company’s divisions are unprofitable, or “bleeding red ink” in the words of the article. Indeed, last year the power plant and...
8. Franklin Company, which has only one product, has provided the following data concerning its first...
8. Franklin Company, which has only one product, has provided the following data concerning its first month of operations: Selling price $200 Units produced 1,000 Units sold 900 Variable product costs per unit $80 Variable selling and administrative costs per unit $20 Fixed manufacturing costs $36,000 Fixed selling and administrative costs $9,000 Required: a. What is the value of ending inventory using the variable costing method? b. What is the value of ending inventory using the absorption costing method? c....
The Hershey Company makes candy for the retail consumer market. One product is the well-known, Chocolate...
The Hershey Company makes candy for the retail consumer market. One product is the well-known, Chocolate Kiss. It manufactures this product in the following departments: Melting, Molding, and Wrapping. In the Melting Department, the food ingredients including unsweetened chocolate are placed in large melting vats along with sugar in specific proportions. They are melted together in order to perfect this well-known candy. The result is a gooey-blend of melted chocolate. This mixture is transferred from the Melting Department to the...
Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company...
Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 2009 and 2010 follow: Hershey: Consolidated Balance Sheets (millions) 2009 2010 Assets Current Assets Cash and Equivalents $   253.6 $   884.6 Accounts Receivable, Trade 410.4 390.1 Inventories 519.7 533.6 Deferred Income Taxes 39.9 55.8 Prepaid Expenses and Other Assets      161.8      141.1 Total Current Assets 1,385.4...
Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company...
Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 2009 and 2010 follow: Hershey: Consolidated Balance Sheets (millions) 2009 2010 Assets Current Assets Cash and Equivalents $   253.6 $   884.6 Accounts Receivable, Trade 410.4 390.1 Inventories 519.7 533.6 Deferred Income Taxes 39.9 55.8 Prepaid Expenses and Other Assets      161.8      141.1 Total Current Assets 1,385.4...
Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company...
Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 2009 and 2010 follow: 2009 2010 Hershey: Consolidated Balance Sheets (millions) 2009 2010 Assets Current Assets Cash and Equivalents $   253.6 $   884.6 Accounts Receivable, Trade 410.4 390.1 Inventories 519.7 533.6 Deferred Income Taxes 39.9 55.8 Prepaid Expenses and Other Assets      161.8      141.1 Total Current...
The ABC Company is one of the largest producers of power tools in the United States....
The ABC Company is one of the largest producers of power tools in the United States. The company is preparing to replace its current product line with the next generation of products: specifically, three exciting new power tools with the latest state-of-the-art features. Because of the limited amount of capital available, management needs to make some difficult choices about how much to invest in each of these products. Another concern is the effect of these decisions on the company’s ability...
The ABC Company is one of the largest producers of power tools in the United States.
The ABC Company is one of the largest producers of power tools in the United States. The company is preparing to replace its current product line with the next generation of products: specifically, three exciting new power tools with the latest state-of-the-art features. Because of the limited amount of capital available, management needs to make some difficult choices about how much to invest in each of these products. Another concern is the effect of these decisions on the company's ability...
The Consumer-Mart Company is going to introduce a new consumer product. If brought to market without...
The Consumer-Mart Company is going to introduce a new consumer product. If brought to market without research about consumer tastes the firm believes that there is a 60% chance that the product will be successful. If successful, the project has a NPV = $300,000. If the product is a failure (40%) and withdrawn from the market, then NPV = -$100,000. A consumer survey will cost $40,000 and delay the introduction by one year. With a survey, there is an 80%...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT