Question

In: Accounting

I. Based on the information provided below prepare a plan that moves Daniel towards his ultimate,...

I. Based on the information provided below prepare a plan that moves Daniel towards his ultimate, “ambitious” goal. Be sure to name the sections of your plan as you provide details:

Daniel has decided to start his own non-profit organization. His community lacks a center where adolescents and teens may safely congregate and “have fun”. More specifically he would like to offer a soccer league for participants ages 10-15. His center would also house a gymnasium where basketball and racquetball could be played, eventually forming leagues in these sports as well. The center would provide all equipment and uniforms. Most importantly he would like the center to offer a free breakfast and a free lunch program for all ages. Finally, he would like to have a daycare within the center. Hours of operation to be from 6:00AM – 6:00PM.

Presently Daniel has secured a location, an old abandoned warehouse. Through his local councilwoman he has been awarded a grant of $50,000 to go towards renovating the warehouse
The warehouse sits on an acre of property that Daniel envisions as soccer fields
Daniel played professional basketball and has some ties with manufacturers such as Adidas and True Balance
Daniel would like to “launch a grand opening” in two years. At that time he would like to offer the free meal programs with the day care to follow 2 years later. The free meals program would require an outlay of $75,000
Every other 2 years “or so” he would like to have the other programs in place
Daniel knows he will need help. He would like to establish a board of directors to assist him. He is comfortable in approaching county, city, and other civic leaders. He is well-respected within the community
The local bank has just announced a “community partnership program” through which it will commit $200,000 to any enterprise that employs local residents and provides other community services. Bank requires an application in which the proposal for use of the funds is detailed
Daniel also knows he may receive cost exemptions from the city for licensing and developing community service “outreach programs”. He is not sure if such exemptions exist at the state level
Though none of the sports are offered within 25 miles of the proposed center there are established leagues. More familiar with basketball, he knows a very few of the local adolescents play in those leagues. Some of his friends also coach in them
Daniel views this undertaking as a 10-year pursuit

II. Since the retirement of Joshua, former department supervisor, production in department has decreased significantly. Employees have taken more sick days or other absences. The mood in the department seems to be one of general dissatisfaction. Joshua has been replaced by Walter. A former marine, Walter believes in strict discipline because according to him, “Nobody likes to work unless forced to do so or they have no other choice.” He also believes that “the buck stops with him”. He therefore makes all decisions without employee input. Joshua always discussed labor policies with the employees. Though he chose the final decision he always did so with employees’ concerns in mind. Joshua celebrated employees’ birthdays and gave monthly awards for good performances. Walter believes employees are only there to work, nothing else.

A] To what theory of management’s perception of workers does Walter adhere? Explain. Based on that

perception what is his management style? Explain.

B] What theory of motivation most likely prompted Joshua’s actions? Explain.


III. A] Prepare a SWOT analysis of the following Company:

Company is in the process of reviewing its practices and effectiveness. Its market share has held steady. Company has noticed that its management force has “aged”. Many of its top managers have retired or are about to retire. Though replacements have been hired they are young and only have “academic education”.

Company had a management trainee program that they eliminated. Company has recently developed a new product. Market tests have indicated that the product is a “winner”. It is projected that within the next 10 years the new product will allow Company to increase its market share by at least 5%. However, the product’s emission may run afoul of EPA standards. This will not be known for at least 5 years. If the emissions are too high Company may remedy the problem at a substantial cost or discontinue production of the product. If it discontinues production its market share will decline sharply because its old products, though good, will only satisfy old customers whose technologies are not advanced.   

B] Based on you analysis what recommendations do you make to Company? Give the reasoning for your recommendations.


IV. Your friend has come to you for advice. Your friend is 40 years old and has worked in company for 10 years. Last year friend made a minor error in accounting that cost the company no money. Having worked for more than 5 years and having earned the company more than $100,000 over that period, you qualify for a promotion into upper level management. However, over the last 3 years you have noticed that company has only promoted employees 35 years of age and younger. What advice do you offer?


V. Company has just developed a new cleaning solution. This solution cleans heavy duty stains removing odors as well. Most of the chemical components are readily biodegradable. However, one chemical, CDX, does not biodegrade for 6 years after use. Over that 6 year period CDX remains very toxic to young animals and if ingested by young children (ages 2-5) very toxic to them as well. It causes severe, burning rashes in children and may be fatal to some young animals, both domestic and wild. Tests have shown that the cleaning solution will be the most effective of its kind on the market at a cheaper price than the present competing product. Moreover, the product will provide much needed revenue for Company’s future endeavors.

As to Company’s social responsibility provide economic and socioeconomic analyses (2 types) as to why Company should or should not place the solution on the market.

VI. Cite 3 advantages of promoting cultural diversity within your business organization.

Solutions

Expert Solution

Ans-2- (A) Walter's perceprtion regarding workers is based on the 'THEORY X ' of management given by Mc Gregor. The theory X presents a pessimistic view of employees’ nature and behaviour at work.

Assumptions of Theory X

  • An average employee intrinsically does not like work and tries to escape it whenever possible.
  • Since the employee does not want to work, he must be persuaded, compelled, or warned with punishment so as to achieve organizational goals. A close supervision is required on part of managers. The managers adopt a more dictatorial style.
  • Many employees rank job security on top, and they have little or no aspiration/ ambition.
  • Employees generally dislike responsibilities.

The management style of walter is "AUTOCRATIC MANAGEMENT STYLE".

The autocratic style implies-

  • The superiors do not take into consideration the ideas and suggestions of the subordinates.
  • The managers, leaders and superiors have the sole responsibility of taking decisions without bothering much about the subordinates.
  • The employees are totally dependent on their bosses and do not have the liberty to take decisions on their own.
  • The subordinates do not have a say in management’s decisions.
  • Whatever the superiors feel is right for the organization eventually becomes the company’s policies.
  • Employees lack motivation in autocratic style of working.

(B) Joshua's actions are based on 'THEORY Y' of management given by MC Gregor.

Ans-3- Strengths-

  • Steady market share.
  • Young workforce hired

Weakness-

  • Management force is aged
  • Inexperienced young workforce only with academic education

Opportunities-

  • New product developed indicated as winner by market tests.
  • Possibility to increase market share within 10 yrs

Threat-

  • Product emmissions afoul of EPA standards

According to the above SWOT analysis, it can be concluded that the company can go for launching that new product as it has many benefits within 10 yrs and till 5 yrs emissions are not known. After 5 years when emissions are too high then, company can remedy them by substantial cost is better option as if company will discontinue production then it will incur much loss and sharp decline in market share.

Ans-6- Advantages of promoting cultural diversity within our business organisation-

  • Diversity in the workplace leads to higher innovation rate.
  • Companies with greater workplace diversity achieve greater profits.
  • Workplace diversity leads to higher employee engagement.

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