ANSWERS GRADED A+
● What is GLO-BUS?. Answer: •Online, PC-based simulation -Specialized camera company
•Action-capture cameras •Unmanned aerial view drones -Head-to-head competition
•Headquarters and assembly facilities in Taiwan •Participation in four global regions
● YOUR COMPANY'S CURRENT SITUATION (YEAR 5). Answer: •Sound financial condition
•Equal footing with competitors including: -Sales volume •840,000 ACC; 140,000 UAVD
-Global market share -Revenues •$334.1 million -Profits •$15 million -Costs -Quality
● What can happen in a year?. Answer: •Each decision period in GLO-BUS represents one
year -Company age = 5 years -First decision year = Year 6
● WHAT DECISIONS WILL WE MAKE EACH YEAR?. Answer: •Design of products (up to
21 decisions) •Assembly operations and workforce compensation (up to 16 decisions) •Pricing
and marketing (up to 13 decisions) •Corporate social responsibility and citizenship (up to 6
decisions) •Financing of company operations (up to 8 decisions) •Manipulation of forecasts
(up to 17 decisions)
● HOW DO WE COMPETE WITH OTHER COMPANIES? (1/2). Answer: •Wide strategic
latitude •No built-in bias that favors any one strategy •How do companies in the "real world"
compete?
● HOW DO WE COMPETE WITH OTHER COMPANIES? (2/2). Answer: •Price
•Performance and quality •Annual number of weekly sales promotions •Length of promotions
in weeks •Promotional discounts offered •Website improvement/web page displays
•Advertising •Number of models •Size of retail network •Length of warranty period •Technical
support provided •Company image/brand reputation •
● STRATEGIC OPTIONS:. Answer: •Pursue strategy of: -Low-cost/low-price -Top-of-the-line
quality and performance -Value •Become market leader in ACC, UAVD, or both •Focus on
one, two, three, or all geographic regions •Universal strategy vs. individualized strategy for
each region
● WHICH STRATEGY IS BEST?. Answer: •It depends! -Competitors' strategies •Direct
opposition •Copycat strategies -Global environment •Mirrors real-world digital camera market