Suppose a particular test of cognitive ability has been found to have great practicality in selecting members of a high school debate team. How much practicality would this same test have for the following situations?

Law school application

Art school application

A police hostage negotiation unit

Executive level positions in a labour union

Actors in a theme park who spend their day dressed in a character costume

Imagine that you have been invited to deliver a speech at a town hall meeting. You are going to deliver a persuasive speech to persuade citizens in your community to vote yes toward the allocation of city funds towards a project or cause that you believe will benefit all members of your community.

Three airlines serve a small town in Ohio. Airline A has 48% of all scheduled flights, airline B has 33% and airline C has the remaining 19%. Their on-time rates are 81%, 69%, and 35%, respectively. A flight just left on-time. What is the probability that it was a flight of airline A?

Compare and contrast the following two traffic management measures highlighting the all potential pros and cons or each approach if they were introduced into your home city.

a) Road user charging at a cordon around the city.

b) Introduction of Bus priority measures at busy junctions within the town/city.

At what level would the following variables be measured

a. Distances between town

b. Intelligence measured by an IQ test

c. The ranks ordering of members of a class based on height

d. The numbering of those with blue eyes1, brown eyes 2, green eyes 3, and other clolrs 4

For this homework assignment, we present two ideal scenarios. Scenario #1: After graduation from high school, students begin jobs as construction workers and elementary school teachers. They expect their wages to remain relatively level throughout their careers. They marry five years after graduation from high school and raise large families with home schooling by the parents. Before marriage, both men and women work; once couples begin home schooling their children, one parent stays home, either the father or the mother. Scenario #2: After high school, students start pre-medical programs at college. They expect four years of college and four years of medical school, with costs of $40,000 a year. The students’ parents have no extra money, so the students borrow the tuition costs. After medical schools, they work for ten years as surgeons and medical specialists, then have one child that is sent to day care one year after birth and eventually to public school. Both parents work full time. In each scenario, what is the expected progression of income? For each career, what is the expected ratio of future income to current income (older construction worker vs young construction worker; surgeon vs college student). What is the likelihood of working with home schooled families vs one child in public school or day care? In each scenario, what is the expected progression of expenses? Consider current education costs and future costs of raising a family. In Scenario #1, why are expenses low before marriage and high after marriage? In Scenario #2, why are expenses high during college and medical school and low afterwards? In each scenario, do recent high school graduates save for future expenses or borrow from future income? Assume that all the students are good risks and we need not worry about defaults on loans. In which scenario is the real interest rate higher?

Motivated by findings from California that school districts with lower student-teacher ratios have higher average test scores, administrators in New York City recently reviewed the relationship between school- level student-teacher ratios and average test scores within their population of elementary schools. Data for fifth-grade test scores (reading and math) from 1,575 elementary schools yield Y ̄ = 631.7 and sY = 17.8

a) Construct a 95% confidence interval for the mean test score in the population (i.e., of schools in NYC).

b) When NYC administrators divided the population into schools with small (i.e., < 20) and large (i.e., ≥ 20) average class sizes, the 555 schools with small classes had a mean test score of 644 with a standard deviation of 11.7, while the 1,020 schools with large classes had a mean test score of 625 with a standard deviation of 21.1. Is there statistically significant evidence that the schools with smaller class sizes have higher average test scores? Explain.

c) Do these results (likely) represent a causal estimate? Why or why not?

Course: International Business

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Case Study-1

In 1990s Nestlé faced significant challenges in its market growth. Despite of the stagnant population in western countries the balance of power was increasing from large scale manufacturers like Nestlé, toward supermarkets and discounted chain stores. In result, Nestlé decided to lessen its focus on developed markets like North America and its home based market in Switzerland to emerging market like India and China. The driving force behind the decision of expanding its market share in emerging market is simple, as the population grows and government decisions favoring market economies brings attractive business opportunities for public living at intermediate income.

Although many of the counties are still living under poverty line, even living on $1 per day shows optimistic signs for the future markets. For example: as the current economic forecasts continues, there will be 9 billion people living on this planet as compare to today’s population of $7 billion today, and coincidently the increase in population is all in developing countries. Nestlé uses the strategy which correlates the ratio of increase in income to use of branded food products, which means as a person earns more and has less time for making food in his/her home, they will automatically substitute for branded products.

In general the company’s strategy has been to enter emerging markets early before its competitors and build a substantial customer base by selling products which suit the local population such as infant formula, milk, and noodles. Nestlé narrows down its market share to many small niche markets, as opposed to general or one for all strategies. Nestlé keeps the goal of commanding the niche markets by gaining at least 85% of market share in every food product it launches. For example, by pursuing such a strategy, Nestlé has taken as much as 85 percent of the market for instant coffee in Mexico, 66 percent of the market for powdered milk in the Philippines, and 70 percent of the market for soups in Chile. As the income level rises in each niche market, Nestlé introduces an upscale version of the same brand to increase its profit level. Although Nestlé has become a global brand, it uses local identity to gain exposure in local markets. The company owns 8500 brands but only 750 of them are known internationally.

Customization is the key to Nestlé’s global brand identity rather than universalism, which means Nestlé, uses global brand identity but, from the internal point of view, it uses local ingredients and other technologies that resonate with the local environment and brand name that is known globally. The customization of Nestlé’s products causes many hindrances in carrying out its distribution of products from local farmers to factories. For example, in Nigeria the infrastructure placed is crumbling, trucks are old and political conditions are not suitable to carry out the processes successfully, so Nestlé adopted a new strategy to deliver its products to local warehouses which are Loco convenient to local farmers for milk production. Although this might

seem as an expensive solution, the local farmers have tripled their milk production and the supply of milk, which Nestlé has calculated as beneficent for the long term growth.

The execution of the strategy matches the planning of the strategy which is to plan globally and implement locally. Nestlé gives autonomy to its local branches based in different countries to make pricing decisions, and distribution decisions. Nestlé has expanded its growth by diversifying its product base to tomato ketchup and wheat base products such as noodle and tofu. Nestlé has expanded into 5 countries and expects to supply all food products throughout the regions namely, Turkey, Egypt, Syria, Dubai and Saudi Arabia.

Nestlé is also buying local companies in China and adapting its own portfolio for the Chinese market. Since many Chinese find coffee too bitter for their liking, Nestlé is working on a new “formula” to offer Smoovlatte, a coffee drink that tastes like melted ice cream. The company wants to be seen as a company that makes healthy food. As Janet Voûte, Nestlé’s global head of public affairs, said “it is a core business strategy”.

Nestlé has used its brand name as strength to generate sales and to expand its market share, which includes it customization of products to fit its target market’s profile. Although Nestlé has not always started from scratch, the company has used acquisition as a penetration strategy to expand and penetrate new international markets, which eliminates any local barriers to its competition. A few weaknesses which are related to the company’s quality measure resulting in product recalls. The company has decentralized its strategy units into 7 subunits in charge for different product lines, for instance, one – for coffee and beverages; another one focuses on ice cream and milk products. Nestlé brings its management level employees all around the world for 2-3 week training in its headquarters in Switzerland to familiarize them with their global culture, strategy and given them access to the company’s top management.

Answer the below questions:

Question 01: Explain the modes of entry adopted by Nestle to enter the international market