19. value: 4.76 points GRADUATE LEVEL Topic: Strategic Groups Topic Overview: On
ID: 3195528 • Letter: 1
Question
19.
value:
4.76 points
GRADUATE LEVEL Topic: Strategic Groups
Topic Overview: One source of information about a client is the financial analysts who track the client’s company in the market. A good place to begin your understanding of the market’s view of the client is to familiarize yourself with the industry’s valuation and analysis of the company.
In order to complete this set of questions, go to Yahoo! Finance at http://finance.yahoo.com/ and type “Hewlett Packard” in the Search Box (HP’s ticker symbol is HPQ). Study HP’s results that are displayed on this page. Click on the “Industry” link, where you will learn more about the industry in which HP operates.
In the 2014 10-K document, HP mentions several types of industries in which they compete. What are these industries? Check all that apply.
high technology industry
information technology industry
medical devices industry
architectural information industry
20.
value:
4.76 points
GRADUATE LEVEL Topic: Strategic Groups
Topic Overview: One source of information about a client is the financial analysts who track the client’s company in the market. A good place to begin your understanding of the market’s view of the client is to familiarize yourself with the industry’s valuation and analysis of the company.
In order to complete this set of questions, go to Yahoo! Finance at http://finance.yahoo.com/ and type “Hewlett Packard” in the Search Box (HP’s ticker symbol is HPQ). Study HP’s results that are displayed on this page. Click on the “Industry” link, where you will learn more about the industry in which HP operates.
One of your goals as an analyst is to assist in determining ways in which the client’s company can produce a competitive advantage (generating above-average returns). The first step is to understand what some of the key measures or variables are regarding HP’s performance within their industry. Review your training manual to refresh your memory on the definitions for each of the measures noted below. Then select the measures that you believe will be the most useful to calculate the client’s company performance. Check all that apply.
market capitalization
price/earnings
price/book
net profit margin
price to free cash flow
return on equity
total debt/equity
dividend yield
21.
value:
4.80 points
Topic: Strategic Groups
A strategic group map is a powerful tool to show the client where their company, or a division of the company, is positioned relative to their competition. You need three variables to build a useful strategic group map: the measure of competitive advantage (the size of the circle) and two drivers of the competitive advantage, the horizontal (X) and vertical (Y) axis. Another key point is that the variables selected for the horizontal and vertical axis should be strongly related to the competitive advantage, but they should not be strongly correlated to each other. Weakly-correlated variables represent relatively independent drivers of competitive advantage. The overall goal of creating a strategic group map is to find key variables that help explain why one company has a significantly different competitive position in the market.
A more senior analyst has done some of the preliminary work for you on a strategy group map on HP’s server division. This analyst has stipulated that the size of the circle on the strategic group map will be based on global market share in the server market. The horizontal axis measure will be based on the number of new products introduced during the last 24 months. Use the knowledge that you have obtained from your employee training materials as well as the information that you have obtained about the HP Corporation to select the third dimension, i.e., the vertical axis, that you would use to create a strategic group map. Check all that apply.
number of customers for the total company
total annual dollars spent on server R&D
total annual dollars spent on the entire company’s R&D
average price of each server
total annual dollars spent on marketing for the entire company
Explanation / Answer
20. In the 2014 10-K document, HP mentions several types of industries in which they compete. What are these industries?
The Industries are Computer Hardware, Computer Software ,IT services and IT consulting
And the answer is :Information Technology Industry
21.
One of your goals as an analyst is to assist in determining ways in which the client’s company can produce a competitive advantage (generating above-average returns). The first step is to understand what some of the key measures or variables are regarding HP’s performance within their industry. Review your training manual to refresh your memory on the definitions for each of the measures noted below. Then select the measures that you believe will be the most useful to calculate the client’s company performance.
They are :
Market Capitalization
Net profit margin
Price to free cash flow
Return on equity
22.
A more senior analyst has done some of the preliminary work for you on a strategy group map on HP’s server division. This analyst has stipulated that the size of the circle on the strategic group map will be based on global market share in the server market. The horizontal axis measure will be based on the number of new products introduced during the last 24 months. Use the knowledge that you have obtained from your employee training materials as well as the information that you have obtained about the HP Corporation to select the third dimension, i.e., the vertical axis, that you would use to create a strategic group map.
They are:
Number of Customers for the total Company
Average price of each Server
Total annual dollars spent on marketing for the entire Company
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