Explain the principal agent theory in negotiation.

CH 7: Entrepreneurship Case BBG 101 -- Hart

One of the biggest challenges for entrepreneurs is getting the word out about their new venture. Perhaps that's why entrepreneurs have embraced social media as a communication tool.

If used skillfully, many believe, social media can help level the playing field between small businesses and their giant competitors. David avRutick, co-owner of Folbot, a small kayak retailer, claims that without Twitter, he wouldn't have as many sales as he does. “You can't buy that kind of exposure,” avRutick says.

Folbot competes against such household names as L.L. Bean and Cabela's—there's no way the smaller company could challenge the larger ones without widespread interactive communication. However, critics point out that social media sites vary widely in their value to small businesses. “The hype right now exceeds the reality,” observes Larry Chiagouris, a professor of marketing at Pace University's Lubin School of Business.

Despite the fact that the use of social media by firms with fewer than 100 employees doubled in one recent year, only 22 percent of those who responded to a separate survey reported a direct increase in profits as a result of social media use, while half said they broke even on the investment. Others caution that social media networking eats up valuable time, particularly for entrepreneurs whose day is chock-full of tasks ranging from design to distribution and manufacturing to marketing.

Most entrepreneurs support the use of social media, but with moderation. Chris Lindland, owner of Cordarounds.com, an online clothing retailer, advises patience. “My business has been visited millions of times, but I haven't made millions of sales,” he comments. But he believes patience pays off.

Questions for Critical Thinking

How will social networking change the business environment for entrepreneurs?

How might entrepreneurs use social media to secure financing?

Can you share with me an abstract of the alcohol advertising case study.

What are C-TPAT, CSI, AMR, and ACI ? and what are their importance for supply chain? Please explain and add examples if it is possible.

1. When making a decision it is human nature to make assumptions. Understanding the assumptions along with the consequences should those assumptions be incorrect is important. A best practice when making a decision is to make a list of any assumptions that exist. Discuss a decision you have made in the past in your professional life that was based on assumptions that proved to be incorrect. What were the consequences and how did you handle the resulting situation?
2. There are many different decision making models available such as: the rational model; the seven step model; and the Carnegie model to name a few. What are the pros and cons of managers using decision making models?
3. What factors should be taken into consideration when collecting data for a strategic decision?

Choose a real-world example of someone you would describe as a great leader. Examples would include; Steve Jobs, Colin Powell, Mahatma Gandhi, Elon Musk, Margaret Thatcher, etc. Prepare a 500-word essay describing their leadership successes as they relate to the "sources and types of power" discussed in chapter 8. Be sure to address their source of leader power (person vs position), type of leader power, and the overall impact of such power upon their leadership efforts.

-Power of the Position Based on what leaders can offer to others Reward power is the capacity to offer something of value as a means of influencing others: “If you do what I ask, you will be rewarded.” Control over pay, promotions, and parking places are examples of reward power. Coercive power is the capacity to punish as a means of influencing others: “If you don’t do what I ask, you will be punished.” Coercive power is leadership by fear and intimidation. Legitimate power is the capacity to influence others by virtue of formal authority or the rights of office: “Because I am the leader, you should do as I ask.” Examples are the boss who assigns jobs, the coach who decides plays, the captain who gives orders, and the teacher who assigns homework. Information power comes from having access to data and news of importance to others: “I have important information, so you should do as I ask.” Keepers of standards, rules, and regulations have information power.

-Power of the Person Based on how leaders are viewed by others Expert power is the capacity to influence others because of expertise, specialized knowledge, or skill. A mechanic, actor, or lawyer may be influential because she is recognized as the best in her profession. Ability in an art, science, a profession, or a trade are examples of expert power. Referent power is the capacity to influence others because of their desire to identify with the leader. Unselfish motives and virtuous character raise trust and respect. Being admired as a role model brings referent power. Rational power is the capacity to influence others because of well-developed reasoning and problem-solving ability. Intelligence increases rational power. Charisma power is the ability to motivate and inspire others by force of personal traits, including optimism, sense of adventure, and commitment to a cause. Charisma power transforms people to achieve superior performance.

Using the value chain model, describe how information technology might be used to provide a winning position for each of these businesses:

a. A global advertising agency
b. A local restaurant

c. A mobile applications provider d. An insurance company

e. A Web?based audio book service

Identify and explain the three assumptions associated with Spiral of Silence Theory.

Identify and define the two ways in which people receive information about public opinion.

?Ollah's Organic Pet Shop sells about 6 comma 0006,000 bags of? free-range dog biscuits every year. The fixed ordering cost is $3030?, and the cost of holding a bag in inventory for a year is ?$1.251.25.

Click the icon to view the table of z values.

z value   

a. What is the economic order quantity for the? biscuits?

The EOQ is

?(Enter your response rounded to the nearest whole number.?)

b. Suppose Ollah decides to order 280280 bags at a time. What would the total ordering and holding costs for the year? be? (For this? problem, don't consider safety stock when calculating holding? costs.)

The total ordering and holding costs are

?(Enter your response rounded to the nearest dollar.?)

c. Average weekly demand for? free-range dog biscuits is 9292 bags per? week, with a standard deviation of 2323 bags. Ollah uses a continuous inventory review system to manage inventory of the biscuits. Ollah wants to set the reorder point high enough that there is only a 2020?% chance of running out before the next order comes in. Assuming that the lead time is a constant 77 weeks, what should the reorder point? be?

The reorder point is ........bags. ?(Enter your response rounded to the nearest whole? number.)

Create a thoughtful Mission, Vision and Value Statement (s) for Sunrise Nursing Home.

The Sundown Nursing Home is a long-term care facility and Assisted Living campus that celebrated its 50^th year of operation as a long-term care provider. The staff at Sundown focus on making their senior living communities feel like a home. They work hard to provide a safe and loving place to call home and strive to be trustworthy, kind, and respectful of the resident’s rights.

An organizational mission is important to Sundown, but they have been working without one. The CEO has been in her position for the last twenty-two years, long before vision and value statements were taught in any college program. The organization hasn’t conducted a formal strategic plan.

The Sundown operation is a non-profit and faith-based organization. Church services are offered with a non-denominational spirit. Non-profit companies, such as Sundown, are formed by incorporators, and has a board of directors and officers, but no shareholders. These incorporators, directors, and officers may not receive a distribution of (any money from) profits, but officers and management may be paid reasonable salaries for services to the corporation. Sundown is a Non-Profit Corporation that has been in good standing with the Minnesota Secretary of State, in effect since January 15, 1968.

According to the The Centers for Medicare and Medicaid Services (CMS), Sundown has a 3-Star status, placing its ranking among the middle 40–60% of nursing homes in Minnesota. The three-star rating is selected from a scale of one through five stars, by CMS. The five-star rating of CMS consists of the domains of health inspections, nurse staffing, staffing, and success of reportable quality measures. Sundown received a three-star rating for health inspections, a two-star rating for quality measures, three-star rating for nursing staffing and a three-star rating for registered nurses only. Staffing at Sundown is based around Registered Nurses, Licensed Practical or Vocational Nurses, and Certified Nursing Assistants and Therapists. (Center for Medicare and Medicaid Services (2015). In 2010, collective bargaining occurred. Sundown now has two unions within their organizations; a nurses union and one for the environmental service workers.

Measures used to assess and compare the quality of healthcare organizations are classified as either a structure, process, or outcome measure. Known as the Donabedian model, this classification system was named after the physician and researcher who formulated it (United States Department of Health and Human Services). The Agency for Healthcare Research and Quality has a website that allows the consumer to make the right choices for their loved ones when placing them in care. Consumer Assessment of Healthcare Providers and Systems (CAHPS) surveys ask consumers and patients to report on and evaluate their experiences with health care. These surveys cover topics that are important to consumers and focus on aspects of quality that consumers are best qualified to assess, such as the communication skills of providers and ease of access to health care services. Sundown has never conducted a survey of its residents or staff.

At one hundred and sixty beds (160) beds, the Sundown location in southern Minnesota is the largest facility, caring for a total of four hundred and fifty-six residents (456), the largest census for the organization found in its Assisted Living units, as of January 1, 2017. In January 1, 2013, the total population was six hundred and thirty-two (632). Their facility, located in western Wisconsin is the smallest with only 82 beds. (Medicare Nursing Home Profile, n.d). Sundown averages $175.00 per day for patients receiving Medicare benefits of payment, which is 30% of their population, and $135.00 per day for patients receiving care via private pay, which is 30% of their census, and $105.00 per day based on those receiving Medicaid services, which makes up 40% of their census, or case mix. Five years ago, Sundown provided Medicare Short Term Stays for acute care patients needing in-house care and therapy, in order to return home. This move increased their Medicare volume from 10% to its current 30% census. This brought Sundown from operating at a loss, to its current 2% profit margin.

All five of Sundown locations accept Medicare and Medicaid for payment of care provided. This acceptance will accommodate residents who otherwise would not have the means to afford long-term care, helping to relieve stress on both the resident and their families. In a time where several Assisted Living facilities limit or refuse residents on Medicaid, due to low reimbursement, Sundown doesn’t refuse anyone admission based on payment source. Sundown makes a 2% profit margin with its current case mix. With pay for performance measures coming into play, their payment will transition over to payment based on quality of care, or CMS Star rating.

Sundown has several various services they provide, allowing patients to recover from surgery, injury or serious illness. Their team of qualified therapists work toward the specific goals of achieving the patient’s highest functional level of independence. The first form of services provided is short-term rehab, as mentioned earlier. Short-term rehab is specialized to provide care right after that patient has left the hospital. They then go to a service, like Sundown, right before the person can go home and live on their own. Usually short term rehabilitation will follow major surgery or after an illness. Sundown uses the enhanced revenue from its newly constructed short term rehab unit to offset the losses from the low Medicaid reimbursements. The goal of the recovery is to help a person rehab return to home with optimal functionality, where the person is deemed safe to return to an independent living situation.

Problem!

Recently, the Sundown CEO learned of a new hospital undergoing constructed next to the Sundown facility. The hospital also built two hotels, nearby. Surgical patients of the hospital will be encouraged to stay at the hotels, with a nurse specializing in their type of case, visiting them in their rooms the following day or two, to assess their status. This new model of care will eliminate the need for a short-term stay at Sundown, in several cases.

     Sundown CEO and Board of Directors have a strategic planning session finally scheduled for spring. The Board chair insisted on a Strategic Planning retreat due to the changing healthcare climate and the impacts of the Patient Protection and Affordable Care Act. They have much to discuss, analyze, and plan and you’ve been hired to conduct their analysis.

Your Objectives:

You will present them (me) with your Mission, Vision, and Value statements, as though you wrote in collaboration key stakeholders for Sundown.

You will present the CEO (me) with your Action Plan for moving the Key Strategic Initiatives forward.

You will present the CEO (me) with your Balanced Scorecard.

List 3 major challenges facing the Retail Grocery Industry

5. Suppose that the customers arrive at a hamburger stand at an average rate of 49 per hour, and the arrivals follow a Poisson distribution. Joe, the stand owner, works alone and takes an average of 0.857 minutes to serve one customer. Assume that the service time is exponentially distributed. a) What is the average number of people waiting in queue and in the system? (2 points) b) What is the average time that a customer spends waiting in the queue and in the system? (2 points) Recently, Joe has started receiving complaints regarding long waiting time from customers who want faster service. In response, Joe is considering hiring Jim to work with him at the stand. Assume that Jim can also serve customers at the same rate as Joe. Compute the average time that a customer spends waiting in the queue and in the system for the following cases: c) There is a single queue at the stand for both servers. (2 points)

Imagine that you manage human resources for a small business. You have recently prepared a report on the market rate of pay for salespeople, and the company’s owner says the market rate is too high. The company cannot afford this level of pay, and furthermore, paying that much would cause sales people to earn more than most of the company’s managers. Suggest three possible measures the company might take to help resolve this conflict.