Which of the following is an example of global economies of scale? Johnson & Johnson makes…

  1. Which of the following is an example of global economies of scale?
    1. Johnson & Johnson makes fourteen different varieties of Band-Aid for various product segments in different countries.
    2. Intel has a big plant in Kiryat Gat (Israel) making i7 chips, which supplies the whole world, reducing the per-unit cost of each chip.
    3. Mutual funds invest their stocks in several different country funds, to offset the risk of one currency failing suddenly.
    4. Wal-Mart sells certain products very economically in some countries (like mobile AC units in Mexico), in order to attract customers, while other products may be at par with, or even more expensive than US prices..
  1. The term strategy can be defined as:
    1. A company’s market share, which allows it to outperform competition.
    2. A coordinated deployment of a firm’s resources to achieve competitive advantage.
    3. The sum total of a company’s financial, organizational, physical and human resources.
    4. All of the above.
  1. EB Company sells a large pack of “Cutie” diapers for $20. One pack of diapers requires two pounds of raw material and one hour of direct labor for manufacture. Raw material costs $3 per pound and direct production labor is paid $4 per hour. Fixed supervisory costs are $2,000 per month and EB rents its factory for $4,000 per month. How many packs of diapers should EB sell every month to break even?
    1. 500.
    2. 400.
    3. 600.
    4. 800.
  1. Amina Begum the Vice President (Sales) of MGT 460 Inc. manages a portfolio of three products in the computer division. The new Intel M ULV 773 processor-based Sleekline model has a low market share of around 5%, but has just been introduced, and since the market is booming, Amina is hopeful that it will grow into maturity.   Stallion, the Xenon-based system, has a market share of 88% in the industry segment it operates in, but the market is stable and not growing too fast. Finally, there is the Pentium4-based Thunderbird, which only sells in discount markets in rural areas.

Which of the following describes the product portfolio under Amina?

  1. Sleekline-question mark, Stallion-star, Thunderbird-cash cow
  2. Sleekline-question mark, Stallion-cash cow, Thunderbird-dog
  3. Sleekline-Star, Stallion-cash cow, Thunderbird-dog
  4. Sleekline-question mark, Stallion-dog, Thunderbird-cash cow

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