Question: The marketing manager for McDonald’s has

> A student says, “It is inconceivable to me that a firm could report increasing net income yet run out of cash.” Clarify this seeming contradiction.

> Accounting typically does not recognize either assets or liabilities for mutually unexecuted contracts. What justification can you see for this treatment?

> Identify the underlying accounting principle that guides the items to include in the acquisition cost of inventories, equipment, buildings, and other similar assets. What is the rationale for this accounting principle?

> The word probable appears in the definitions of assets and liabilities and in the recognition criteria for liabilities with uncertain amount and/or timing. a. What is the meaning of probable as used in the definitions of assets and liabilities? b. How do

> What is the amount of the liability that the company recognizes in each of the following independent cases? a. A plaintiff files a lawsuit against the company. The probability is 90% that the company will lose. If it loses, the amount of the loss will mo

> For each of the following items, indicate whether the item meets all of the criteria in the definition of a liability. If so, how does the firm value it? a. Interest accrued but not paid on a note. b. Advances from customers for goods and services to be

> One of the criteria for the recognition of an asset or a liability is that there be an exchange. What justification can you see for this requirement?

> A group of investors owns an office building that it rents unfurnished to tenants. It purchased the building five years previously from a construction company. At that time, it expected the building to have a useful life of 40 years. Indicate the procedu

> Who might the accounting convention of conservatism hurt?

> Bonana Company, a U.S. clothing designer, manufacturer, and retailer, reported a balance in prepaid insurance of $24.0 million, based on its financial reports dated March 31, Year 8, the end of its fiscal year. Assume that all of this balance relates to

> Problem 25 presents financial statements for Bullseye Corporation for its fiscal years ending December 31, 2011, 2012, and 2013, as well as financial statement ratios. a. Prepare a set of pro forma financial statements for Bullseye Corporation for fiscal

> Effective financial statement analysis requires an understanding of a firm’s economic characteristics. The relations among various financial statement items provide evidence of many of these economic characteristics. Exhibit 7.28 pres

> Scantania is a Swedish company that manufactures trucks and other heavy vehicles and provides financing for its customers’ purchases. Exhibit 7.27 presents financial statement ratios for Scantania for 2011, 2012, and 2013. The amount on

> Depkline plc is a pharmaceutical company headquartered in the United Kingdom. Exhibit 7.26 presents financial statement ratios for Depkline for 2011, 2012, and 2013. Respond to each of the following questions. a. What are the likely reasons for the incre

> Gappo Group and Limito Brands maintain leading market positions in the specialty apparel retailing market. The products of Gappo (jeans, blouses, shirts) are more standardized than those of Limito. The products of Limito are more fashion-oriented and gli

> This problem compares the profitability and risk ratios of three leading discount chains: Cartoo, Taggle, and Wilmet. Cartoo is headquartered in Spain, and Taggle and Wilmet are headquartered in the United States. Exhibits 7.20 and 7.21 present profitabi

> Bullseye Corporation, headquartered in the United States, operates retail stores that offer clothing, household products, electronic products, sports products, toys, and entertainment products at discount prices. Bullseye differentiates itself from compe

> Top financial management wants to increase cash flow from operations. It asks you to implement the following strategies. Which of these, if implemented, will increase cash flow from operations contrasted to the amount if you do not implement the strategy

> Refer to Exhibit 6.35 for Fierce Fighters Corporation, which shows excerpts from its Statements of Cash Flows, with cash flow from operations presented with the indirect method, for three recent years. We use these years to illustrate a period of success

> Exhibit 6.34 presents statements of cash flow for eight companies for the same year: a. American Airlines (airline transportation) b. American Home Products (pharmaceuticals) c. Interpublic Group (advertising and other marketing services) d. Procter &amp

> On December 31, Year 6, the Merchandise Inventories account of a Japanese electronics firm had a balance of ¥408,710 million, based on the firm’s financial reports for fiscal Year 7. Assume that during Year 7, the firm purchased merchandise inventories o

> Exhibit 6.33 presents statements of cash flows for Spokane Paper Group, a forest products company, for three recent years. During this period, it faced financial difficulty, which you can see by noting the pattern of losses increasing with time. a. Spoka

> Exhibit 6.32 presents a statement of cash flows for Swoosh Shoes, Inc., for three years. a. Why did Swoosh experience increasing net income but decreasing cash flow from operations during this three-year period? b. What is the likely explanation for the

> Quintana Company presents the balance sheet shown in Exhibit 6.30 and the statement of cash flows shown in Exhibit 6.31 for 2013. The firm sold investments, equipment, and land for cash at their net book value. The accumulated depreciation of the equipme

> Refer to information about Carter Corporation in the preceding problem. a. What was the change in accounts receivable during 2012? b. Inventories increased by $624.1 during 2012. What was the change in accounts payable for inventories during 2012? c

> Exhibit 6.28 shows the consolidated income statements for Carter Corporation for three recent years. Carter uses the direct method for presenting its cash flows from operations, which appears in Exhibit 6.29. a. What was the change in accounts receivable

> GTI, Inc., manufactures parts, components, and processing equipment for electronics and semiconductor applications in the communication, computer, automotive, and appliance industries. Its sales tend to vary with changes in the business cycle since the s

> Financial statement data for Dickerson Manufacturing Company for the current year appear in Exhibit 6.25. Additional information includes the following: (1) Net income for the year was $568,000; dividends declared and paid were $60,000. (2) Depreciation

> Condensed financial statement data for Hale Company for the current year appear in Exhibits 6.23 and 6.24. During the current year, the firm sold for $5,000 equipment costing $15,000 with $10,000 of accumulated depreciation. a. Prepare a statement of

> (Based on a problem prepared by Stephen A. Zeff.) You work for the Plains State Bank as an analyst specializing in the financial statements of small businesses seeking loans from the bank. Digit Retail Enterprises Inc. provides you with its balance sheet

> Exhibit 6.20 presents data from the financial statements for Heidi’s Hide-Out, a bar and video-game club, with private party rooms for rent. Heidi’s deals with ■ Many employees, to some of whom it has

> The following selected information is based on the Year 7 financial statements adapted from those of Beyond Petroleum (BP). BP applies IFRS and reports its results in millions of U.S. dollars. Compute the missing information in each of the following four

> A multinational computer equipment manufacturer reported the following amounts for two recent years (in millions of U.S. dollars). The firm applies U.S. GAAP. a. Compute the ratio of net income divided by revenues for each year. b. Compute the ratio of

> Dyreng Plc. (Dyreng), a Belgianbased construction firm, reported the following information for Year 11. Dyreng applies IFRS and reports in thousands of euros (€). Further information available to you reveals the following six items, wi

> SeaBreeze Inc., a Taiwan-based semiconductor manufacturer, reported the following information for Year 12. SeaBreeze Inc. applies IFRS and reports in millions of yuan (Â¥). Further information available to you reveals the following five items

> Dragonfly Limited (Dragonfly), a diversified electronics firm headquartered in Singapore, reported the following income statement information for its year ended December 31, Year 7. Dragonfly applies Singapore financial reporting standards and reports it

> Broyo Corporation (Broyo), a large paper company, reported the following income statement for its year ended December 31, Year 13. Broyo applies IFRS and reports its results in millions of euros. Broyo supplied additional information about the followin

> Information from GoodLuck Brands’s income statements for the years ended December 31, Years 6, 7, and 8, is shown next. GoodLuck Brands is a U.S.-based manufacturer and distributor. The company applies U.S. GAAP and reports its results

> Information from Cementex Corporation’s (Cementex) income statements for the years ended December 31, Year 9 and Year 10, is shown in the following display. Cementex is a Mexican construction firm that applies Mexican accounting standar

> Exhibit 4.4 presents the balance sheet of Paul Loren Company for Years 10 and 9. This balance sheet uses the terminology, format, and accounting methods of U.S. GAAP, and Paul Loren reports results in millions of U.S. dollars. (Adapted from the financi

> Exhibit 4.3 presents the balance sheet prepared by Svenson, a Swedish telecommunications firm, for Years 7 and 6. Svenson applies IFRS and reports its results in millions of Swedish kronor (SEK). In addition to the items reported in Svensonâ€&

> Exhibit 4.2 presents the balance sheet prepared by Infotech Limited, an Indian information technology firm, for Years 12 and 11. Infotech applies accounting standards issued by the Institute of Chartered Accountants of India and reports its results in mi

> The following selected information is based on the Year 7 financial statements of the German healthcare firm, adopted from the financial statements Bayer Group. Bayer Group applies IFRS, and reports its results in millions of euros. Compute the missing i

> What is the purpose of temporary accounts?

> What are some of the top issues 3M should consider in developing the Flag Highlighter?

> Most of the ingredients needed for pizza could be acquired from local suppliers located in close proximity to the Domino’s stores in a given city, eliminating the extensive supply chain network that Domino’s utilizes with their hub-and-spoke approach. W

> 1. Review the tactical pricing approaches shown in Exhibit 11.4. Which of these did you see evidence of being part of the SBC pricing strategy? Discuss the evidence you observed. 2. The SBC executive noted that children who start their cycling experienc

> 1. What were the key execution problems noted in the video for the new Wild Ophelia brand (at both WalMart and Walgreen’s? 2. What steps could be taken to ensure that Vosges’ next attempt at distribution for Wild Ophelia is more successful?

> Define GoPro’s product in terms of the essential benefit and core product. How does an understanding of the essential benefit drive product development for a company like GoPro? What kind of enhanced products could GoPro offer to add to the consumer’s

> When going global, one of the most fundamental decisions marketers must make is the standardization/localization decision regarding the different elements of the marketing mix. For the Product component of the mix, Domino’s chose a localization strategy

> The salesperson in this video notes that expanding business with existing customers is one of the best ways to increase total sales. Why is this the case? What are some of the keys (from the video and your own ideas) for increasing the amount of busine

> SBC is effectively using social media to strengthen their brand community, but has made a conscious decision not to offer their bicycles via their websites or other digital channels. Do you agree with this strategy? Why or why not?

> 1. Should Creston Vineyard use a push or pull strategy in its channels? 2. Describe Creston Vineyard's distribution intensity strategy.

> 1. How can Walmart change its image with consumers? 2. Will a change in image allow Walmart to charge a price premium?

> What are the risks BMW faces as it continues to add new cars to its product line?

> By segmenting their product line into 7 segments, has New Balance selected the optimal amount of segments?

> 1. Dole creates partnerships with its vendors, are there any drawbacks with this philosophy? 2. What are some of the criteria that Dole should consider when selecting vendors?

> What are the advantages and disadvantages of Best Buy’s customer centricity strategy?

> What are the long-term consequences for Dole’s decision not to focus primarily on taste?

> You are the market research director for a consumer product company. You have been asked to evaluate China as a potential market for your company’s products and begin a search of secondary data. What types of information would you consider in assessing

> 1. Are people more likely to purchase gas from BP because of its commitment to the environment? 2. In light of the recent crisis in the Gulf of Mexico, how does BP convince the public that they are sincere about caring about the environment?

> 1. What central changes are contributing to the growth of Yum! Brands in global markets? 2. Give some examples of ways that you believe Yum! Brands will have to adapt its offerings to appeal to global customers in different countries.

> 1. Vosge has chosen a premium/luxury positioning strategy. What are the pros and cons of this marketing approach for Vosge? 2. What aspects of Vosge’s marketing strategy supports their experience/storytelling approach? What are the risks to this strate

> Go to the Strategic Business Insights (SBI) website (www.strategicbusinessinsights.com) and click through to the section on VALSTM. Find the VALSTM survey and complete the questionnaire. a. Are the results surprising? Why or why not? Do you see yourse

> The alumni director at your institution wants to know how to serve the alumni better. Design a survey of no more than 10 questions that the alumni director can use to ask alumni about their interest in getting more involved with their school.

> The marketing manager for Disney Cruise Line wants to know what demographic trends will affect the cruise line business over the next five years. What kind of research is needed to address this question? Conduct some secondary research and try to you i

> You are the marketing manager for Oxymoron Detergent and have been tasked with introducing this product into Argentina. What six factors would you need to consider in determining the proper channel of distribution for the introduction of Oxymoron deterg

> As we have discussed, understanding the consumers in a target market is critical to creating an effective value proposition. Assume you are the Vice President of Marketing for Regal Cinemas. What do you think is the demographic profile (including the a

> Imagine you are the Vice President of Sales for a large security company and you have been asked to put together a sales information system that collects, analyzes, interprets, and distributes information from the sales force. How would you do it? What

> This case about a familiar high-tech company covers some important themes: brand evolution, innovative advertising and alternative approaches to the creation of advertising content. Many students in class will likely be staring at laptops with the littl

> You are the marketing manager for a small company located in the United States that manufactures specialized parts for high-end ink-jet printers. The company’s largest customer (Hewlett Packard) has asked your company to supply parts to 10 of its distri

> This case should help convince students that virtually any product (certainly any consumer product) could benefit from the use of social media tools. Most of the largest companies have embraced social media (see https://medium.com/infographics/f500-comp

> Although many students will not have shopped at Restoration Hardware, this case is focused on two areas upon which most will be experts: shopping in retail stores and shopping via the internet. The case can be introduced by asking students to share how

> Students will likely be familiar with Uber. Many of them, especially those of drinking age, may have used Uber to get home after visiting a bar with friends. This responsible behavior (planning ahead to not drink and drive), may be an interesting scenari

> Amazon has proved to be a company that has mastered the service environment. And, they have no intention of stopping. From continued online experiments (with features being added to Prime membership), to entering deeper into consumers’ homes (with the Ec

> The Virgin Group may be a less familiar brand to students in the U.S., but many will have heard of Virgin Records and Virgin Airlines. The company’s experience in extending its brand provides a good foundation for helping students discern the criteria t

> This case provides an opportunity to elaborate on two important Product Management principles: New Product Development and the Product Life Cycle. It also is a good case for discussion of generational marketing and the need to understand the unique pref

> Amex faces a daunting challenge. They have been caught off guard with Chase’s excellent perception of which market is available and what would resonate with them. The professor could use the questions below to discuss Amex’s past (and now obvious) failur

> As described in the case, Nike is facing competitors (e.g. Under Armor) who are changing their distribution strategies from B2B to B2C. Nike has traditionally been a B2B company when it comes to distribution. Though it is not without experience in B2C di

> This case helps students get to the essence of marketing analytics. By using a company in India, where the multi-billion-dollar data infrastructure available in much of the west is absent, it may be easier to boil down your discussion of analytics by foc

> Marketing research is often looked at by students (and by some professional managers) as a dull, “academic” exercise that takes too much time, costs too much money, and doesn’t tell us anything that we don’t already know. However, as this case illustrate

> In the chapter you learned that harmonious performance of Marketing (big M) and marketing (little m) within a firm can lead to greater levels of success. Why is this true? What does it mean that these two need to be “harmonious?” What would be some li

> The story of Dunkin’ Donuts is useful for class discussion as it is a brand that most students will have experience with but one that might not readily come to mind as an example of skillful marketing management. An area of focus for the discussion shou

> Instructors leading a discussion about this case will find a review of the two HBR articles by Simanis & Duke and Mahajan to be very helpful*. One way to introduce the case is to ask students why a company would even bother marketing to a target market

> This case provides an opportunity to reinforce several key principles that are covered in this introductory chapter. While the case is largely focused on advertising tactics, there are examples of strategic marketing that can be discussed as well. A ke

> Select a specific branded product associated with a company and assume you are the marketing manager in charge of mobile marketing strategy for the product. a. Come up with a simple concept for a branded mobile app and explain how the specific purpose o

> Consider the concept of a landing page and its use in assisting the completion of specific desirable actions as well as its relationship with other forms of digital marketing communication. Identify one landing page associated with a display ad as well a

> Select a B2C company that you are familiar with, along with a product sold by that company. Identify a particular consumer target market. Imagine you have been tasked with developing a paid media strategy for the related product to that target. 1. Pick

> Consider a major purchase you have made recently. Review the AIDA model (Exhibits 13.7 and 13.8) and accompanying discussion. a. Think back on the process that led up to your purchase and reconstruct the types of promotion that you experienced during e

> This chapter discusses the role of the marketing manager in promotional strategy (Exhibit 13.3 and accompanying discussion). The trend today in both large and small firms is for much of the promotion function to be outsourced. a. Comment on this outs

> Exhorting firms to develop networks and alliances for purposes of value co-creation sounds like a good idea. However, is there a point at which such approaches can be taken too far (a) from a legal perspective, (b) from an ethical perspective, and (c

> Consider this statement: “It’s important in business today for all firms to work to cut out the middleman. Intermediaries represent costs that can be saved by finding ways to cut them out of the system. Down-channel buyers always benefit when this happ

> Review the section on change drivers and select any two within the set that you want to focus on. Pick an organization of your choice and answer the following questions: a. In what ways do each of the change drivers impact the firm’s ability to success

> Consider the issue of disintermediation in electronic channels. a. Do you believe that all channels will disintermediate down to simple direct channels over time? Why or why not? b. Does your opinion change if the question is asked only about B2C c

> The chapter discusses the importance of being “nimble” in all aspects of a firm’s operation – that is, to be in a position to be maximally flexible, adaptable, and speedy in response to change. a. Identify two firms in two different industries that yo

> Consider the concept of value co-creation. a. In your own words, explain the concept of value co-creation. b. What are some specific ways value can be co-created? c. Provide an example of a specific value network you believe results in a high level of v

> Assume that you are a marketing manager for Pantene shampoo and conditioner, two of P&G’s star products, and that several of P&G’s competitors have recently begun to cut prices to retailers and also to offer more aggressive channel allowances in order to

> Select any three of the pricing tactics identified in the chapter. For each tactic: a. Identify a brand (other than the examples in the chapter) that you believe is currently employing that tactic. b. Provide evidence to support the use of that tactic.

> Review Exhibit 11.3 on price-quality positioning, along with the accompanying discussion. a. Consider the low quality/high price quadrant. Identify a brand (other than the examples in the chapter) that you believe currently resides in this quadrant. H

> Pricing against competitors is common. Yet the approach carries some significant problems. a. What are the advantages of competitor-based pricing? b. What are the risks of using competitor-based pricing exclusive of other approaches? c. Identify a few