Business Partnering 27.03.2023

An engaging infographic showing market dynamics and business strategies in an industrial setting, focusing on steel and wire products

Business Partnering Quiz

Test your knowledge on Bekaert's business performance and strategies with our engaging quiz. This quiz will challenge your understanding of various market dynamics, pricing strategies, and operational decisions impacting the company.

Key Features:

10 multiple-choice questions
Focus on revenue, cost management, and market strategies
Perfect for business enthusiasts and professionals

10 Questions2 MinutesCreated by AnalyzingData24

1. Bekaert experienced a decline in revenue in the USA market. What factors contributed to this decline?

A)Decrease in volume and mix

B)Decrease in volume and price

C)Decrease in price

D)Decrease in volume, price, and mix

3. Considering the USA market, Bekaert aims to increase revenue. Which strategy should they adopt?

A)Increase product prices across all categories

B)Focus on promoting high-margin products in SWS

C)Expand marketing efforts to increase product volume in BPR

D)Decrease product prices in RR and BPR

4. Plant imports major raw material from China. It takes approximately 90 days to convert from raw material to the final sale to customers. Despite raw material and final product prices being market-linked, material costs are showing an increasing trend. The possible mitigating actions would be:

A)Buy raw material in larger quantities and avail volume discounts

B)Enter into commodity hedging contracts for 90 days

C)Lock the selling price with customers on the date of purchase of raw material

D)Increase the selling price with customers to compensate for higher material costs

5. Labor cost includes Blue Collar, White Collar & Managerial employees, where 80% of the cost is fixed in nature. However, the labor cost as % of sales is increasing. Which one is not a possible reason for the increase in labor cost?

A)Lower volumes, thereby increasing per ton cost

B)Higher overtime due to labor absenteeism

C)More than expected Bonus payments on account of better previous month results

D)Higher production of lower diameter wires

6. You are contemplating on a few suggestions to control packing cost. Packing cost includes primary packing, pallets, spools, transport on spool returns. One suggestion you can pitch to the management to reduce packing cost

A)Penalize the customers for delays in returning spools

B)Launch a cashback loyalty program for customers for prompt return of spools

C)Increasing the length of wire that can be accommodated on each spool

7. You have been asked to benchmark SG&A cost with other plants and suggest ways to decrease the overall SG&A cost. Which suggestion would be beneficial for short term reduction in SG&A?

A)Lay off employees to reduce fix costs

B)Run an outsourcing center to external companies using existing employees to earn more revenue

C)Reduce Bad debt provision % based on reduced overdue receivables

8. China is one of the largest markets for Bekaert. However, due to an economic slowdown, Bekaert is facing fierce competition and losing market share to its competitors. What would be the best short-term pricing strategy?

A)Keep the prices the same to maintain premium pricing and retain market share

B)Reduce the selling price below gross profit but with a positive contribution margin, putting pressure on EBITU%

C)Set the prices at the break-even level to gain more market share

D)Offer volume discounts to customers at pre-economic downturn levels

9. Bekaert charges a 30% premium over competitors based on the premium quality of its product. Which one of the following, according to you, is not a premium quality attribute for which we cannot charge premium pricing to the customers?

A)Tensile strength

B)Corrosion resistance

C)Color

D)Surface finish

10. Bekaert has developed a new product that will be used in hydrogen generation for new mobility solutions. Since this is a new product, there are no major competitors in the market. What pricing strategy shall Bekaert choose?

A)Skimming Pricing

B)Penetration Pricing

C)Cost-Plus Margin-Based Pricing

D)Value-Based Pricing

Business Partnering 27.03.2023

Business Partnering Quiz

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