Apple has the highest market capitalization in the United States. In the last analysis on the stock market, Apple was worth 816.54 billion dollars. Apple is trying to compete with Samsung to make the best phones in the marketplace. They are having some difficulty justifying their high prices and are beginning to lose market share on phones. Apple decides to make an agreement with Amazon where if you have an iPhone, you will get a 10 percent discount of any items that are bought on Amazon.com. Tim Cook, the CEO of Apple raves at the sales of iPhones going through the roof! He has increased the market capitalization of the company to 972 billion dollars. It is about to become the first trillion dollar company in the history of the United States. Such a deal like this has never been seen and the Justice Department has to decide on how Apple's actions can be construed under the Sherman Act or the Robinson-Pactman Act.
1. Is this an example of a violation of any Anti-Trust laws in the United States? If so which one and why?
2. Apple and Amazon are making huge profits under this arrangement. Is this a horizontal or a vertical agreement between the companies? How would your know?
3. Let us say that because of the arrangement, Apple and Amazon grow to be the largest companies in the United States. Samsung tries to join Alibaba to rival the Apple-Amazon partnership, however the agreement does not seem to be gaining any traction. The justice department cannot figure out why this agreement works so well in the US and not in other countries. Apparently, Apple has been promoting a culture where the purchase of items off of Amazon using the iPhone and its unique software and people are gravitating towards it. Is this success by Apple and Amazon Anti-Trust? Did the companies do anything wrong? What did they do wrong and why?
In: Economics
Imagine that you are the CEO of Moet Hennessy Louis Vuitton SE (LVMH). You have just received share price valuation estimates for a potential buyout target, Rimowa, from two of your top financial analysts. Both analysts used the discounted cash flow (DCF) model to estimate the share price resulting in a valuation of $50, by the first analyst and $60, by the second analyst.
You made a buyout offer of $55 a share and Rimowa’s CEO rejected it. The German luxury luggage brand Rimowa is crucial to LVHM’s strategic expansion into brands that have heritage and a unique position. As the CEO of LVHM what would you do to meet LVHM’s strategic objective while minimizing the cost to acquire Rimowa? Briefly defend your recommendation.
In: Accounting
Johnson & Johnson and Crisis Management: Comparison of Two Leaders in Two Crises
Abstract
Crisis management communications is a critical skill for corporate leaders. Failure during crisis management may result in serious harm to the company and in some cases can lead to the exit of the firm from the industry. Successful crisis management may result in little or no damage to a company’s reputation in the industry. This case study will review the crisis management communication strategies of two CEOs at different times in a single company’s history.
Leadership in 1982 Crisis
When the Tylenol crisis happened in 1982, Burke directed the removal of 31 million bottles of Tylenol products valued at more than $100 million from store shelves (Kaplan). Burke took the lead role for all communications relating to the crisis. As the CEO, he was the face and spokesperson for Johnson & Johnson, providing leadership through the crisis. Burke appeared on the U.S. television news program, 60 Minutes, and allowed cameras to be present during strategy sessions (Yang). Burke did not delegate the responsibility of communication to a company spokesperson or division head (Prokesch). Multiple case studies, many through Harvard Business School, detail the way Johnson & Johnson and its leaders handled the crisis.
Leadership Now Crisis
Under Weldon, the company recalled more than 50 products during a 15-month period between 2009 and 2011. The product recalls spanned various subsidiaries, including products such as Motrin, Tylenol, Children’s Tylenol products, Rolaids, and Benadryl from the consumer products division of McNeil Consumer Health Care, the same subsidiary that was so successful with crisis management during the 1982 Tylenol crisis. The quality issues were so severe, with potential for adverse effects to the general public, that in July 2010 the FDA required action on the part of McNeil to address the quality issues at various manufacturing plants. The company submitted a remediation plan for McNeil to the FDA, and in March 2011 the FDA expanded oversight at three plants for McNeil, due to the company’s failure to make significant improvements in quality.
Questions Presented:
Compare and contrast the leadership strategies used by Burke and Weldon: What changes could have been made by either CEO to improve the situation he faced?
Compare and contrast the communication strategies used by Burke and Weldon. What changes could have been made by either CEO to improve the situation he faced?
Compare and contrast the crisis management strategies used by Johnson & Johnson in the two situations.
In: Operations Management
PLEASE read paragraphs and respond rather you agree or disagree! the answers are from the following questions 1. Do you believe that Nike has a responsibility to pay workers on foreign shores a living wage, in other words, should they JUST DO IT? 2. Are you willing to pay more for Nike products to make that happen? 3. Would you be willing to boycott Nike products if they continue to refuse to do so?
Your repond should be 200 words! thanks
1. I believe that Nike should pay workers on foreign shores a living wage. The company makes billions of dollars a year and a small decrease in profit will not hurt them. Every human being regardless where they are from or their economic status, should have their dignity intact. Nike pays millions of dollars to athletes to wear and market their brand. Why not pay workers in lower living wage workers if you have the money to spend on famous athletes? In the video, Michael Moore tries to convince the CEO of Nike, Phil Knight, to go to Indonesia and visit one of Nike’s factories. Phil refuses the offer because what he will see will not be pleasant.
2. I would not pay more money to Nike to make things happen. Nike pays famous athletes to wear their brand, then why should consumers pay more money to benefit those in lower wage countries? Nike makes billions of dollars in profits. Why not use part of those profits to benefits those employees? Instead of endorsing famous athletes, it’s best to use that money and increase the wages to those employees working in those horrible sweatshops.
Nike placed a code of conduct for their factories on how employees should be treated. When Michael Moore suggested for Phil Knight to visit one of factories, he declined. What makes you think that this code of conduct will be executed properly? Not even the CEO wanted to see his own factories. The CEO, executives, and upper management should make sure that all the factories and other branches follow through with their vision for the company. By starting from the top to the bottom, they can make that changes that are needed for a better workplace.
3. Nike isn't a brand that I currently purchase or would purchase in the future after reading and watching these videos. If people were to boycott this company, they will see more damages when it comes to the profits. It is evident that Nike is more interested in making more money for the company and its stockholders. Nike prefers to spend million of dollars in endorsements than helping their own employees.
In: Economics
Company A is considering buying the assets of Company B in a taxable transaction. Please consider what the income tax impacts are for the following issues:
1.Treatment of acquired assets by Company A.
2.Tax treatment of sale to Company B.
3.Tax Treatment of sale to shareholders of Company B.
4.Transfer of net operating loss carryforwards and tax credits of Company B to Company A.
In: Accounting
Problem 12-7 (Algo) Various transactions related to equity investments: fair value through net income [LO12-5]
The following selected transactions relate to investment
activities of Ornamental Insulation Corporation during 2021. The
company buys equity securities as noncurrent investments. None of
Ornamental’s investments are large enough to exert significant
influence on the investee. Ornamental’s fiscal year ends on
December 31. No investments were held by Ornamental on December 31,
2020.
| Mar. | 31 | Acquired Distribution Transformers Corporation common stock for $470,000. | ||
| Sep. | 1 | Acquired $1,005,000 of American Instruments' common stock. | ||
| Sep. | 30 | Received a $14,100 dividend on the Distribution Transformers common stock. | ||
| Oct. | 2 | Sold the Distribution Transformers common stock for $502,000. | ||
| Nov. | 1 | Purchased $1,470,000 of M&D Corporation common stock. | ||
| Dec. | 31 | Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: |
| American Instruments common stock | $ | 948,000 | |
| M&D Corporation common stock | $ | 1,537,000 | |
Required:
1. Prepare the appropriate journal entry for each
transaction or event during 2021, as well as any adjusting entries
necessary at year-end.
2. Indicate any amounts that Ornamental Insulation
would report in its 2021 income statement, 2021 statement of
comprehensive income, and 12/31/2021 balance sheet as a result of
these investments. Include totals for net income, comprehensive
income, and retained earnings as a result of these investments.
In: Accounting
Problem 12-7 (Algo) Various transactions related to equity investments: fair value through net income [LO12-5] The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys equity securities as noncurrent investments. None of Ornamental’s investments are large enough to exert significant influence on the investee. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020. Mar. 31 Acquired Distribution Transformers Corporation common stock for $520,000. Sep. 1 Acquired $1,080,000 of American Instruments' common stock. Sep. 30 Received a $18,200 dividend on the Distribution Transformers common stock. Oct. 2 Sold the Distribution Transformers common stock for $557,000. Nov. 1 Purchased $1,560,000 of M&D Corporation common stock. Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock $ 1,018,000 M&D Corporation common stock $ 1,640,000 Required: 1. Prepare the appropriate journal entry for each transaction or event during 2021, as well as any adjusting entries necessary at year-end. 2. Indicate any amounts that Ornamental Insulation would report in its 2021 income statement, 2021 statement of comprehensive income, and 12/31/2021 balance sheet as a result of these investments. Include totals for net income, comprehensive income, and retained earnings as a result of these investments.
In: Accounting
Carla Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan.
| January 1, 2020 | December 31, 2020 | |||
| Vested benefit obligation | $1,480 | $1,870 | ||
| Accumulated benefit obligation | 1,870 | 2,670 | ||
| Projected benefit obligation | 2,500 | 3,260 | ||
| Plan assets (fair value) | 1,690 | 2,630 | ||
| Settlement rate and expected rate of return | 10% | |||
| Pension asset/liability | 810 | ? | ||
| Service cost for the year 2020 | 400 | |||
| Contributions (funding in 2020) | 690 | |||
| Benefits paid in 2020 | 200 |
Prepare a 2020 pension worksheet. (Enter all amounts as positive.)
|
CARLA COMPANY |
||||||||||||||||||
|
General Journal Entries |
Memo Record Entries |
|||||||||||||||||
|
Items |
Annual Pension |
Cash |
OCI— Gain/ |
Pension Asset/ |
Projected Benefit |
Plan |
||||||||||||
| Balance, Jan. 1, 2020 |
$ |
|||||||||||||||||
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
| Service cost |
| Interest cost |
| Actual return |
| Unexpected gain |
| Contributions |
| Benefits |
| Liability increase |
| Journal entry for 2020 |
$ |
|
$ |
| Accumulated OCI, Dec. 31, 2019 |
| Balance, Dec. 31, 2020 |
$ |
|
$ |
|
$ |
|
$ |
eTextbook and Media
List of Accounts
Prepare the journal entries at December 31, 2020, to record pension expense and related pension transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
| Dec. 31, 2020 | |||
eTextbook and Media
In: Accounting
On 1 March 2020, goods valuing $1000 were bought from Mr. D.
On 15 March 2020, goods, valued at $200, returned to Mr. D .
On 1 May 2020, goods for $2000 were sold to Mr. E.
On 15 May 2020, Mr. E returned goods, valued at $500, to the business.
On 1 June 2020, goods, valued at $600, were bought from Mr. Z on credit.
On 15 June 2020, the due amount of $800 was paid to Mr. D through cheque.
On 15 July 2020, the due amount of $1500 was received from Mr. E through cheque.
Draw the T account of Purchases, Sales, Mr. D, Mr. E, Return inwards, Return outwards, Mr. Z and Bank.
In: Accounting
Prepare and record a 8-10 minute Kaltura presentation with a Power Point that summarizes your reflection on the learning experience within the MBA degree program. This is not reflection of this course, but rather an reflection of the comprehensive MBA program and your assessment of your achievement.
It should reflect your candid assessment of the level of achievement of degree’s overall Learning Outcomes listed below:
In: Operations Management