Practice test

Practice Test: Xerox Crisis Diagnosis and Leadership

Practice test on Xerox’s crisis origins, leadership transition, and early turnaround diagnosis in the A case.

6 questions · pass mark 50% · try 5 free

1 Which internal change most directly disrupted Xerox’s customer relationships?

  • The SEC investigation
  • A sales reorganization
  • The dividend increase
  • The Fuji Xerox buyout

The case identifies the sales reorganization as a key cause of damaged customer relationships and weakened performance.

2 Xerox customers experienced smoother billing and simpler pricing during the reorganization period.

  • True
  • False

The case says customers experienced increased billing issues and more complicated pricing plans.

3 When Anne Mulcahy became COO in May 2000, Xerox stock had fallen from roughly what level to what level over the previous year?

  • $63 to $27
  • $27 to $63
  • $60 to $40
  • $45 to $30

The case states that Xerox stock had dropped from about $63 per share to $27 in the previous year.

4 Which of the following were consequences of Xerox’s disrupted sales organization? Select all that apply.

Select all that apply

  • Loss of client relationships
  • Employee departures
  • Improved contract profitability
  • Competitors gaining market share

The case links the reorganization to lost client relationships, departures of sales personnel, and competitors taking market share; it did not improve contract profitability.

5 After Rick Thoman’s resignation, what role was Mulcahy elected to by the board?

  • Chief financial officer
  • President and chief operating officer
  • Chair of the audit committee
  • Head of Fuji Xerox

The board elected her president and COO after Allaire secured Thoman’s resignation.

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