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NEW QUESTION: 1
Bryan Galloway is a strategist for JS Investments, a small money management firm. His goal is to analyze industries to determine whether there is justification for over- or under-weighting. His supervisor, Robyn Black, CFA, has asked that he document the process he uses to make his recommendations. However, just to be sure that Galloway understands industry analysis. Black asks him to provide examples of supply and demand analysis. Galloway makes the following two statements to prove that he understands the issue:
Statement 1: In analyzing supply in the tire and rubber industry, it is clear that the sale of each additional automobile will result in the sale of approximately two winter tires.
Statement 2: In analyzing demand for services in the healthcare industry, for every 100 new hospital beds required, 20 additional doctors are needed.
Black is not entirely confident in Galloway's abilities to analyze various industries, but decides to allow him to continue with his analysis.
Four of the largest holdings for JS Investments are a tobacco company, a soda drink company, an oil company, and a cable TV company. Black is worried that government intervention will have a serious impact on future growth for these companies and asks Galloway to further research each of the industries involved. However, just to make sure Galloway can handle this project. Black first asks him to review the basics of industry analysis.
In reviewing the factors affecting pricing considerations, Galloway concludes that all of the following are of direct importance:
Factor 1: Price changes in key supply inputs.
Factor 2: Product segmentation.
Factor 3: Ease of entry into the industry.
Factor 4: Degree of industry concentration.
Galloway also makes the following statements about the characteristics of the phases of the industrial life cycle:
Characteristic 1: Participants compete for market share in a stable industry.
Characteristic 2: Changing tastes have an important impact on the industry.
Characteristic 3: It is not clear that a product will be accepted in the industry.
Characteristic 4: Proper execution of strategy is critical.
Each of the phases is represented by one characteristic.
Did Galloway correctly identity the factors that directly affect pricing considerations?
B. No, competition for market share in a stable industry is not a pricing consideration.
C. No, changing tastes do not have a direct impact on pricing.
The four factors that contribute to pricing as listed in the relevant topic review are: product segmentation, degree of industry concentration, ease of industry entry, and price changes in key supply inputs. Galloway has correctly identified all four. (Study Session U, LOS 38.0
NEW QUESTION: 2
Which of the following is used to perform a root cause analysis?
A. Bar chart
B. Pareto diagram
C. Scatter plot
D. Ishikawa diagram
NEW QUESTION: 3
An organization has two Amazon EC2 instances:
* The first is running an ordering application and an inventory application.
* The second is running a queuing system.
During certain times of the year, several thousand orders are placed per second. Some orders were lost when the queuing system was down. Also, the organization's inventory application has the incorrect quantity of products because some orders were processed twice.
What should be done to ensure that the applications can handle the increasing number of orders?
A. Put the ordering and inventory applications into their own Amazon EC2 instances, and create an Auto Scaling group for each application. Use Amazon SQS standard queues for the incoming orders, and implement idempotency in the inventory application.
B. Put the ordering and inventory applications into their own Amazon ECS containers and create an Auto Scaling group for each application. Then, deploy the message queuing server in multiple Availability Zones.
C. Put the ordering and inventory applications into their own AWS Lambda functions. Have the ordering application write the messages into an Amazon SQS FIFO queue.
D. Put the ordering and inventory applications into their own Amazon EC2 instances. Write the incoming orders to an Amazon Kinesis data stream Configure AWS Lambda to poll the stream and update the inventory application.