CASE STUDY 8.1 - AMAZON'S SILENT RISE TO THE TOP

Amazon, the Seattle-based Internet retailer, was started in 1994 as the 'Earth's biggest bookstore'. Besides selling books, the company has diversified into selling music and entertainment, as well as apparel, furniture, food, toys and jewellery. In recent years, the company has also added cloud infrastructure services to its remit and has become a producer of digital content, including Amazon Kindle, e-book readers, Fire tablets and Fire TV. Over the years, Amazon has slowly but steadily built its brand and reputation. Far from being just an online retailer, Amazon has become a true digital innovator, rivalling the likes of Google and Apple in its innovative prowess. The company is constantly innovating new digital products and offers a breadth of digi­tal services, ranging from marketplaces bringing buyers and sellers of local services together to e-book lending services. This constant innovation of products that are, upon launch, almost immediately in high demand stems from founder Bezos' vision for creating what he calls the 'world's most consumer-centric company'.

Corporate Silence

When he started Amazon in 1994, Jeff Bezos' personal traits - a competitive spirit, a loathing of taxes and government intrusion, a lack of sentimentality and a mistrust of the media - proved to be the perfect foundation for a young start-up that quickly gained ground. Those values appear to be, however, still very much alive in the company today. despite the fact that the company has become far bigger in size. In fact, Amazon is these days somewhat notorious for its lack of communication with the media. Some say that most of its communication efforts are not out in the open, but take place behind closed doors in the form of its communication staff lobbying legislators to pass, for example, favourable legislation on transporting Amazon pack­ages through drones in the air and through longer delivery trucks on the ground. This may well be the case, as its media relations demonstrate a largely stony, silent effort. The company does not appear to be pushing its stories into the media, nor does it often seem compelled, even in the face of ongoing media criticism, to respond. This way of handling the press is perhaps not unique to Amazon; Apple, Google and other high-tech giants often say very little in the press. This may work when trying to keep new products under wraps, but it is perhaps less effective when the company is being criticized or attacked in the media, with its reputation hanging in the balance.

An Ongoing Dispute in Book Publishing

A recent issue that flared in the media was the struggle between Amazon and the Hachette book group. Hachette was very vocal on the negotiation and its fight, with Amazon saying very little. The issue involved the difference of opinion on the royalty payment for Amazon and the pricing of e-books, which were no longer set but open for discussion. Amazon did not want to abide by the price that was set by Hachette, so that it, in effect, can decide itself on the appropriate pricing of books. This, however, would affect authors who would see their profits dwindle, and could in some cases not even make a profit at all. When the dispute continued, Amazon eliminated discounts and delayed the delivery time for books provided by Hachette, badly affecting the sales of Hachette books and pushing customers away for those titles. Throughout the dispute, Amazon remained largely silent, even when many well-known authors, readers and loyal customers waded in. In a post on its website, the company did, however, release a brief formal statement in which it declared that 'we are not optimistic that this will be resolved soon', seeing the issue as at the heart of its business model and the future of the publishing industry. In the same post, Amazon also oddly enough criticized the media for its `narrow' coverage of the dispute with Hachette, but had undertaken no media efforts of its own to balance out such coverage.

A Great Place to Work?

A second issue that emerged in the media in 2015 was a critique of the company's corporate culture. The New York Times published a scathing critique of a competitive and intense workplace environment faced by Amazon's white-collar employees. Whilst earlier coverage had detailed the conditions for workers in its warehouses. the New York Times feature documented what it saw as cruelty towards employees in the company's corporate headquarters, including gruelling working conditions and the rather harsh, even bullying, treatment of staff suffering personal crises, such as cancer and miscar­riage. Confronted by the article, communication staff did not immediately respond to The New York Times or to the general media who, following the feature, had also started to write about the work conditions at Amazon. Jeff Bezos did, however, issue an internal e-mail to employees, saying that the article 'claims that our intentional approach is to create a soulless, dystopian workplace where no fun is had and no laughter heard'. Bezos writes: 'I don't recognize this Amazon and I very much hope you don't, either ... I strongly believe that anyone working in a company that really is like the one described in the NYT would be crazy to stay. I know I would leave such a company'. In the e-mail, he also encourages staff to report the kind of negative experiences and management practices reported in the New York Times feature: 'Even if it's rare or isolated, our toler­ance for any such lack of empathy needs to be zero.' Whilst the company has remained largely silent on the external front, the vice president of corporate affairs for Amazon, Jay Carney, interestingly did post a message on Medium a few months after the New York Times piece was first published. In it, he criticizes the lead journalist for not checking her sources and for offering a rather one-sided account of Amazon's corporate culture. Carney also writes that through all their conversations with the lead journalist on the arti­cle, they 'were repeatedly assured that this would be a nuanced story that dove into what makes Amazon an exciting and fun place to be, not just a demandingplace to work'.

Apart from the question of what conditions at its headquarters may really be like, these two recent cases do reveal an interesting fact about Amazon. In contrast to what its steady rise in terms of the value of its brand and reputation would suggest, the company has been operating a very minimal approach to its media relations. Its record in terms of pushing stories in the press shows that Amazon has done very little of the kind, and equally when issues emerge in the media - such as the two issues described in this case - the company often remains silent, and for a prolonged period of time. It seems that communication practitioners in the company believe - and they may, at times, be right - that too strong a response to such issues may escalate them even further, turning them into real talking points in the public domain and affecting the company's reputation in turn. At the same time, with such a tacit response there is a real risk of such issues lingering and turning into a real crisis for the company, which may be one reason why, after a few months of silence, the company's vice-present of corporate affairs tried to set the record straight on the New York Times article.

QUESTION

1. In your point of view, what are the potential risks and rewards for Amazon in staying out of the limelight, in response to media coverage on its business conduct? (10m)

Reading JAMAICA KINCAID (b. 1949)

"Girl"

Raised in poverty by her homemaker mother and car- penter stepfather on the small Caribbean island of Antigua, Elaine Potter Richardson was sent to the United States to earn her own living at age seven- teen, much like the protagonists of her first novels, Annie John (1983) and Lucy (1990). Working as an au

pair and receptionist, she earned her high-school equivalency degree and studied pho- tography at the New School for Social Research in New York and, briefly, Franconia College in New Hampshire. Returning to New York, she took the name of a character in a George Bernard Shaw play, at least in part out of resentment toward her mother, with whom she had once been very close. After a short stint as a freelance journalist, Kincaid worked as a regular contributor to the New Yorker from 1976 until 1995, in 1979 marry- ing its editor’s son, composer Allen Shawn, with whom she would eventually move to Bennington, Vermont and raise two children. “Girl,” her first published story, appeared in the New Yorker in 1978 and was later republished in her first collection, At the Bottom of the River (1983). Subsequent novels include The Autobiography of My Mother (1996), paradoxically the least autobiographical of her books; Mr. Potter (2002), a fictionalized account of her efforts to understand the biological father she never knew; and See Now Then (2013). Kincaid’s equally impressive nonfiction includes My Brother (1997), a mem- oir inspired by her youngest brother’s death from AIDS, and A Small Place (1988), an essay exploring the profound economic and psychological impact of Antigua’s depen- dence on tourism. Divorced in 2002, Kincaid is currently Professor of African and Afri- can American Studies in Residence at Harvard.

2. May he rest in peace (Latin).

Wash the white clothes on Monday and put them on the stone heap; wash the color clothes on Tuesday and put them on the clothesline to dry; don’t walk barehead in the hot sun; cook pumpkin fritters in very hot sweet oil; soak your little cloths right after you take them off; when buying cotton to make yourself a nice blouse, be sure that it doesn’t have gum on it, because that way it won’t hold up well after a wash; soak salt fish overnight before you cook it; is it true that you sing benna1 in Sunday school?; always eat your food in such a way that it won’t turn someone else’s stomach; on Sundays try to walk like a lady and not like the slot (replace o with u) you are so bent on becoming; don’t sing benna in Sunday school; you mustn’t speak to wharf-rat boys, not even to give direc- tions; don’t eat fruits on the street—flies will follow you; but I don’t sing benna on Sundays at all and never in Sunday school; this is how to sew on a button; this is how to make a buttonhole for the button you have just sewed on; this is how to hem a dress when you see the hem coming down and so to prevent yourself from looking like the slot (replace o with u) I know you are so bent on becoming; this is how you iron your father’s khaki shirt so that it doesn’t have a crease; this is how you iron your father’s khaki pants so that they don’t have a crease; this is how you grow okra—far from the house, because okra tree harbors red ants; when you are growing dasheen, make sure it gets plenty of water or else it makes your throat itch when you are eating it; this is how you sweep a corner; this is how you sweep a whole house; this is how you sweep a yard; this is how you smile to someone you don’t like too much; this is how you smile to someone you don’t like at all; this is how you smile to someone you like completely; this is how you set a table for tea; this is how you set a table for dinner; this is how you set a table for dinner with an important guest; this is how you set a table for lunch; this is how you set a table for breakfast; this is how to behave in the presence of men who don’t know you very well, and this way they won’t recognize imme- diately the slot (replace o with u) I have warned you against becoming; be sure to wash every day, even if it is with your own spit; don’t squat down to play marbles—you are not a boy, you know; don’t pick people’s flowers—you might catch something; don’t throw stones at blackbirds, because it might not be a blackbird at all; this is how to make a bread pudding; this is how to make doukona;2 this is how to make pepper pot; this is how to make a good medicine for a cold; this is how to make a good medicine to throw away a child before it even becomes a child; this is how to catch a fish; this is how to throw back a fish you don’t like, and that way something bad won’t fall on you; this is how to bully a man; this is how a man bullies you; this is how to love a man, and if this doesn’t work there are other ways, and if they don’t work don’t feel too bad about giving up; this is how to spit up in the air if you feel like it, and this is how to move quick so that it doesn’t fall on you; this is how to make ends meet; always squeeze bread to make sure it’s fresh; but what if the baker won’t let me feel the bread?; you mean to say that after all you are really going to be the kind of woman who the baker won’t let near the bread?

Help with these questions:

1. Describe the focus or focalization in "Girl." Do we see what one person sees, or observe one person in particular? Describe the voice of the narrator in "Girl." Who is the "you"? How do the focus and voice contribute to the reader's response to the story?

2. Look closely at the indications of time in the story. What actions take place at certain times? Does any event or action happen only once? Is there a plot in "Girl"? If so, how would you summarize it?

3. The instructions in "Girl" have different qualities, as if they come from different people or have different purposes. Why are two phrases in italics? Can you pick out the phrases that are more positive from the girl's point of view? Are there some that seem humorous or ironic?

4. What genre is “Girl”?  Is it a short story, essay, or something else?  Classify the text and justify your answer.  Use third person to answer all four questions and quote and/or paraphrase as necessary.  

Every business owner has an expertise.

They know how to provide goods, provide services,

and they typically know how to sell those.

They're really good at doing that.

They do not have an expertise in management of finances

and it's also not only not their expertise,

but they don't like doing it.

They need somebody almost like everybody needs a doctor,

but we don't need to go to medical school to do that.

Right? We just go to the doctor.

So people need a financial doctor every once in a while.

[ Music ]

>> B2B CFO is a partnership where we support executives

and CEOs to help them sleep better at night, by helping them

with their cash and profits.

I believe that young or small business owners should

understand their financial statements.

One of the key things that they need

to understand is how profitable they are.

They also need to understand what's driving profitability?

These things speak volumes to a bank

or to a lender, to an investor.

And if they don't understand those things, they're going

to have a hard time getting any capital to be able

to survive in the future.

>> Hosco Fittings manufacture stainless steel, cavity-free,

smooth-bore fittings, hosing and tubing, and accessories used

in fluid handling systems

for paint coatings and other materials.

>> Tom Murray is one of my clients.

He is the owner and CEO of Hosco Fittings.

>> My objective and the plan was to work for the rest

of my career at a large multinational corporation.

I would've been quite happy to do that.

I worked at Ford Motor Company for a while

and then eventually worked at ITW,

a very large multinational company, and Hosco was one

of the many brands that they had in their portfolio at the time.

It was determined by the bigger parent company

that it didn't fit.

It wasn't one of their core priorities.

So they decided to divest it.

>> I worked with him to develop the financial projections

that were needed in order to go out to banks.

>> We purchased the company and the business

and have been running it independently since then.

>> Oftentimes, for owners and CEOs,

they don't truly understand how the financials work,

but clearly Tom Murray did.

He understood it and he got it.

>> So this is our primary manufacturing facility

in Livonia, Michigan.

I can take you around and show you some of what we do here.

We're a very small business.

We have a total of ten people here.

We start with body blanks.

In this case, we're making ball valves used to close

or open the supply of fluid.

These are some of the hard assets that we have.

Here, we're inventorying hose and tubing

for the fluid handling system.

We could never afford to have someone

of Sheri's [assumed spelling] caliber as a full-time employee.

It was a perfect fit for us to have someone of her caliber,

her abilities to work with us.

>> So at this point let's go ahead

and we'll review the monthly financials for the month of May.

Some of the reports that I review with my owners

on a monthly basis are the monthly key metrics

for the current month.

We look at their income statement for the current month.

We look at the income statement for calendar year

to date and calendar year.

We can also look at the income statement

by month going forward.

So operating cash flow was strong.

It was above where our budget was,

the things that are driving that,

so inventory month on hand.

>> We meet on a monthly basis

for several hours to review financials.

She spends additional time throughout the month reviewing

some of our metrics and we share data back and forth.

So I would say on average it's probably ten

to 12 hours a month.

>> Some of this stuff is interesting for me,

because it has more of a trend wise, right,

what things that we're spending money on

and what things are we not.

On the income statement,

I'll show you top-line sales or revenues.

It will show you expenses.

So it's the answer to if you're making money

or if you're not making money at your business.

Then there's the balance sheet.

The balance sheet is kind of the offset to the income statement.

It shows an owner what do they own and how much

of it do they own with their own money and how much

of it do they own with somebody else's money.

Okay, so if we look at cash,

the accounts receivable days are at 70 days.

The accounts payable days are also in line

with where they should be.

>> Here on the floor sort of rolls

up into the financial statements that we look

at on a monthly basis, whether it's our working capital,

the inventory we have on the shelf, the labor and the people

who are out here doing the job, picking, manufacturing things,

the assets, the machine tools and equipment,

it all comes together out here on the floor.

[ Music ]

>> They shouldn't, in my mind, be looking at all the detail

that comes out of, say, QuickBooks.

[Background Music] They need to understand cash,

because if they ever expect to grow past, you know,

that one person with the laptop who has an Internet website,

they're going to need cash at a minimum for marketing

or for outside support.

So we're in a solid position

with operating cash flow going throughout the year.

>> We own the machinery and equipment.

And if we don't own it, the bank does.

So we have to make sure that we service our debt,

we're able to pay our taxes, make sure we make payroll.

>> It's been my experience that most business owners,

when I say most, 80 or 90%, do not understand cash flow

and the risks associated with cash flow.

That's not their passion.

Their passion is providing a good

or service or creating things.

We're talking about entrepreneurs.

We're talking about the geniuses of our society, actually.

And these geniuses are not interested in cash flow.

There is an assumption going in that everybody's going to be

so happy that they're just going to throw money at us

and it's just going to go in the bank

and then somebody's going to take care of it.

>> Being a small business owner is not all fun and games.

There are a lot of things that can keep you up at night.

It is very rewarding and exciting to be part of something

that you know at the end of today you've created

and done something that's good for you

and for everyone else involved in the business.

>> On a daily basis, I am helping owners be able

to realize their dream and the impact is immediate.

Can you guys think of anything else that's extraordinary

that we should be planning for on cash?

B2B CFO works with small and medium-sized companies to help them attain a clearer picture of their goals and finances. For companies unable to afford a full-time chief financial officer, B2B CFO is the ideal solution. With over twenty years of experience, the founder and CEO, Jerry Mills, has steadily built the largest supplier of temporary CFOs, helping growing companies understand the intricacies of the financial world. Jerry Mills says that some business owners are unable to achieve clarity in terms of cash flow and some do not want to, and that is when they need a “financial doctor.” Sheri Pawlik, who works for B2B CFO, says that the services offered by B2B CFO include spotting the drivers of profitability for a company. She believes that it is imperative for a firm’s CEO to understand financial statements as it will help them successfully land an investor or a lender in the future.

One such company that B2B CFO works with is Hosco Finishing System Components, a company that finds solutions for the paint delivery industry. The President, Tom Murray, having previously worked for Ford Motor Company, eventually found himself at ITW, another large multinational. The latter divested Hosco when it ceased to be compatible with ITW’s core priorities. B2B CFO helped Tom Murray kick-start his new career as the owner of Hosco. Since the purchase, he has been successfully running the company, which employs about ten people at its facility at Livonia, Michigan. Hosco Fittings manufactures stainless-steel cavity-free smooth board fittings, and hosing and tubing accessories used in fluid handling systems for paint coatings and other materials.

When Tom Murray engaged the services of Sheri Pawlik to manage his finances, she developed financial projections that he took to the banks to buy Hosco from ITW. On a monthly basis, she reviews the company’s financial statements, key metrics, and income statements. The income statements show top-line sales, revenues, and expenses, which indicate whether the company is making or losing money. She says that the balance sheet tells the owner what they own and how much of it they own with their own money and how much of it with somebody else’s. Sheri Pawlik believes that 101 books are not going to help an entrepreneur stay on the path to financial success; she says they need to “understand cash.” Tom Murray says that it is a solid operating cash flow that will keep the company well above water, with enough to pay banks, taxes, and make payroll.

According to Jerry Mills, nearly 90 per cent of “business geniuses” are not interested in cash flow. The entrepreneurs rather expect all of it to come together, and are more than willing to let set someone else deal with the nitty-gritties of finances. This is what B2B CFO and Sheri Pawlik do—make dreams come true today and help companies confidently look toward a sustainable future.

1. What are the advantages of hiring a temporary CFO for small- and medium-sized businesses?

2. How does B2B CFO help companies like Hosco get capital from financial institutions in order to survive?

3. Explain how firms like B2B CFO that offer temporary financial management services aid small- and medium-sized businesses.

This is the database

CREATE TABLE AIRCRAFT (
AC_NUMBER varchar(5) primary key,
MOD_CODE varchar(10),
AC_TTAF double,
AC_TTEL double,
AC_TTER double
);

INSERT INTO AIRCRAFT VALUES('1484P','PA23-250',1833.1,1833.1,101.8);
INSERT INTO AIRCRAFT VALUES('2289L','DC-90A',4243.8,768.9,1123.4);
INSERT INTO AIRCRAFT VALUES('2778V','MA23-350',7992.9,1513.1,789.5);
INSERT INTO AIRCRAFT VALUES('4278Y','PA31-950',2147.3,622.1,243.2);

/* -- */

CREATE TABLE CHARTER (
CHAR_TRIP int primary key,
CHAR_DATE date,
AC_NUMBER varchar(5),
CHAR_DESTINATION varchar(3),
CHAR_DISTANCE double,
CHAR_HOURS_FLOWN double,
CHAR_HOURS_WAIT double,
CHAR_TOT_CHG double,
CHAR_OIL_QTS int,
CUS_CODE int,
foreign key (AC_NUMBER) references AIRCRAFT(AC_NUMBER)
);

INSERT INTO CHARTER VALUES(10001,'2008-02-05','2289L','ATL',936,5.1,2.2,354.1,1,10011);
INSERT INTO CHARTER VALUES(10002,'2008-02-05','2778V','BNA',320,1.6,0,72.6,0,10016);
INSERT INTO CHARTER VALUES(10003,'2008-02-05','4278Y','GNV',1574,7.8,0,339.8,2,10014);
INSERT INTO CHARTER VALUES(10004,'2008-02-06','1484P','STL',472,2.9,4.9,97.2,1,10019);
INSERT INTO CHARTER VALUES(10005,'2008-02-06','2289L','ATL',1023,5.7,3.5,397.7,2,10011);
INSERT INTO CHARTER VALUES(10006,'2008-02-06','4278Y','STL',472,2.6,5.2,117.1,0,10017);
INSERT INTO CHARTER VALUES(10007,'2008-02-06','2778V','GNV',1574,7.9,0,348.4,2,10012);
INSERT INTO CHARTER VALUES(10008,'2008-02-07','1484P','TYS',644,4.1,0,140.6,1,10014);
INSERT INTO CHARTER VALUES(10009,'2008-02-07','2289L','GNV',1574,6.6,23.4,459.9,0,10017);
INSERT INTO CHARTER VALUES(10010,'2008-02-07','4278Y','ATL',998,6.2,3.2,279.7,0,10016);
INSERT INTO CHARTER VALUES(10011,'2008-02-07','1484P','BNA',352,1.9,5.3,66.4,1,10012);
INSERT INTO CHARTER VALUES(10012,'2008-02-08','2778V','MOB',884,4.8,4.2,215.1,0,10010);
INSERT INTO CHARTER VALUES(10013,'2008-02-08','4278Y','TYS',644,3.9,4.5,174.3,1,10011);
INSERT INTO CHARTER VALUES(10014,'2008-02-09','4278Y','ATL',936,6.1,2.1,302.6,0,10017);
INSERT INTO CHARTER VALUES(10015,'2008-02-09','2289L','GNV',1645,6.7,0,459.5,2,10016);
INSERT INTO CHARTER VALUES(10016,'2008-02-09','2778V','MQY',312,1.5,0,67.2,0,10011);
INSERT INTO CHARTER VALUES(10017,'2008-02-10','1484P','STL',508,3.1,0,105.5,0,10014);
INSERT INTO CHARTER VALUES(10018,'2008-02-10','4278Y','TYS',644,3.8,4.5,167.4,0,10017);

/* -- */

CREATE TABLE CREW (
CHAR_TRIP int,
EMP_NUM int,
CREW_JOB varchar(20),
primary key (CHAR_TRIP, EMP_NUM)
);

INSERT INTO CREW VALUES(10001,104,'Pilot');
INSERT INTO CREW VALUES(10002,101,'Pilot');
INSERT INTO CREW VALUES(10003,105,'Pilot');
INSERT INTO CREW VALUES(10003,109,'Copilot');
INSERT INTO CREW VALUES(10004,106,'Pilot');
INSERT INTO CREW VALUES(10005,101,'Pilot');
INSERT INTO CREW VALUES(10006,109,'Pilot');
INSERT INTO CREW VALUES(10007,104,'Pilot');
INSERT INTO CREW VALUES(10007,105,'Copilot');
INSERT INTO CREW VALUES(10008,106,'Pilot');
INSERT INTO CREW VALUES(10009,105,'Pilot');
INSERT INTO CREW VALUES(10010,108,'Pilot');
INSERT INTO CREW VALUES(10011,101,'Pilot');
INSERT INTO CREW VALUES(10011,104,'Copilot');
INSERT INTO CREW VALUES(10012,101,'Pilot');
INSERT INTO CREW VALUES(10013,105,'Pilot');
INSERT INTO CREW VALUES(10014,106,'Pilot');
INSERT INTO CREW VALUES(10015,101,'Copilot');
INSERT INTO CREW VALUES(10015,104,'Pilot');
INSERT INTO CREW VALUES(10016,105,'Copilot');
INSERT INTO CREW VALUES(10016,109,'Pilot');
INSERT INTO CREW VALUES(10017,101,'Pilot');
INSERT INTO CREW VALUES(10018,104,'Copilot');
INSERT INTO CREW VALUES(10018,105,'Pilot');

/* -- */

CREATE TABLE AC_CUSTOMER (
CUS_CODE int primary key,
CUS_LNAME varchar(15),
CUS_FNAME varchar(15),
CUS_INITIAL varchar(1),
CUS_AREACODE varchar(3),
CUS_PHONE varchar(8),
CUS_BALANCE double
);

INSERT INTO AC_CUSTOMER VALUES(10010,'Ramas','Alfred','A','615','844-2573',0);
INSERT INTO AC_CUSTOMER VALUES(10011,'Dunne','Leona','K','713','894-1238',0);
INSERT INTO AC_CUSTOMER VALUES(10012,'Smith','Kathy','W','615','894-2285',896.53);
INSERT INTO AC_CUSTOMER VALUES(10013,'Olowski','Paul','F','615','894-2180',1285.18);
INSERT INTO AC_CUSTOMER VALUES(10014,'Orlando','Myron',NULL,'615','222-1672',673.21);
INSERT INTO AC_CUSTOMER VALUES(10015,'O''Brian','Amy','B','713','442-3381',1014.55);
INSERT INTO AC_CUSTOMER VALUES(10016,'Brown','James','G','615','297-1228',0);
INSERT INTO AC_CUSTOMER VALUES(10017,'Williams','George','','615','290-2556',0);
INSERT INTO AC_CUSTOMER VALUES(10018,'Farriss','Anne','G','713','382-7185',0);
INSERT INTO AC_CUSTOMER VALUES(10019,'Smith','Olette','K','615','297-3809',453.9);

/* -- */

CREATE TABLE EARNEDRATING (
EMP_NUM int,
RTG_CODE varchar(5),
EARNRTG_DATE date,
primary key (emp_num, rtg_code)
);
INSERT INTO EARNEDRATING VALUES(101,'CFI','1998-02-18');
INSERT INTO EARNEDRATING VALUES(101,'CFII','2005-12-15');
INSERT INTO EARNEDRATING VALUES(101,'INSTR','1993-11-08');
INSERT INTO EARNEDRATING VALUES(101,'MEL','1994-06-23');
INSERT INTO EARNEDRATING VALUES(101,'SEL','1993-04-21');
INSERT INTO EARNEDRATING VALUES(104,'INSTR','1996-07-15');
INSERT INTO EARNEDRATING VALUES(104,'MEL','1997-01-09');
INSERT INTO EARNEDRATING VALUES(104,'SEL','1995-03-12');
INSERT INTO EARNEDRATING VALUES(105,'CFI','1997-11-18');
INSERT INTO EARNEDRATING VALUES(105,'INSTR','1995-04-17');
INSERT INTO EARNEDRATING VALUES(105,'MEL','1995-08-12');
INSERT INTO EARNEDRATING VALUES(105,'SEL','1994-09-23');
INSERT INTO EARNEDRATING VALUES(106,'INSTR','1995-12-20');
INSERT INTO EARNEDRATING VALUES(106,'MEL','1996-04-02');
INSERT INTO EARNEDRATING VALUES(106,'SEL','1994-03-10');
INSERT INTO EARNEDRATING VALUES(109,'CFI','1998-11-05');
INSERT INTO EARNEDRATING VALUES(109,'CFII','2003-06-21');
INSERT INTO EARNEDRATING VALUES(109,'INSTR','1996-07-23');
INSERT INTO EARNEDRATING VALUES(109,'MEL','1997-03-15');
INSERT INTO EARNEDRATING VALUES(109,'SEL','1996-02-05');
INSERT INTO EARNEDRATING VALUES(109,'SES','1996-05-12');

/* -- */

CREATE TABLE EMPLOYEE (
EMP_NUM int primary key,
EMP_TITLE varchar(4),
EMP_LNAME varchar(15),
EMP_FNAME varchar(15),
EMP_INITIAL varchar(1),
EMP_DOB date,
EMP_HIRE_DATE date
);
INSERT INTO EMPLOYEE VALUES(100,'Mr.','Kolmycz','George','D','1942-06-15','1987-03-15');
INSERT INTO EMPLOYEE VALUES(101,'Ms.','Lewis','Rhonda','G','1965-03-19','1988-04-25');
INSERT INTO EMPLOYEE VALUES(102,'Mr.','VanDam','Rhett','','1958-11-14','1992-12-20');
INSERT INTO EMPLOYEE VALUES(103,'Ms.','Jones','Anne','M','1974-10-16','2005-08-28');
INSERT INTO EMPLOYEE VALUES(104,'Mr.','Lange','John','P','1971-11-08','1996-10-20');
INSERT INTO EMPLOYEE VALUES(105,'Mr.','Williams','Robert','D','1975-03-14','2006-01-08');
INSERT INTO EMPLOYEE VALUES(106,'Mrs.','Duzak','Jeanine','K','1968-02-12','1991-01-05');
INSERT INTO EMPLOYEE VALUES(107,'Mr.','Diante','Jorge','D','1974-08-21','1996-07-02');
INSERT INTO EMPLOYEE VALUES(108,'Mr.','Wiesenbach','Paul','R','1966-02-14','1994-11-18');
INSERT INTO EMPLOYEE VALUES(109,'Ms.','Travis','Elizabeth','K','1961-06-18','1991-04-14');
INSERT INTO EMPLOYEE VALUES(110,'Mrs.','Genkazi','Leighla','W','1970-05-19','1992-12-01');

/* -- */

CREATE TABLE MODEL (
MOD_CODE varchar(10) primary key,
MOD_MANUFACTURER varchar(15),
MOD_NAME varchar(20),
MOD_SEATS double,
MOD_CHG_MILE double
);
INSERT INTO MODEL VALUES('DC-90A','Beechcraft','KingAir',8,2.67);
INSERT INTO MODEL VALUES('MA23-250','Piper','Aztec',6,1.92);
INSERT INTO MODEL VALUES('PA31-950','Piper','Navajo Chieftain',10,2.34);

/* -- */

CREATE TABLE PILOT (
EMP_NUM int primary key,
PIL_LICENSE varchar(25),
PIL_RATINGS varchar(25),
PIL_MED_TYPE varchar(1),
PIL_MED_DATE date,
PIL_PT135_DATE date
);
INSERT INTO PILOT VALUES(101,'ATP','SEL/MEL/Instr/CFII','1','2008-04-12','2007-05-16');
INSERT INTO PILOT VALUES(104,'ATP','SEL/MEL/Instr','1','2007-06-10','2008-03-23');
INSERT INTO PILOT VALUES(105,'COM','SEL/MEL/Instr/CFI','2','2008-02-25','2008-02-12');
INSERT INTO PILOT VALUES(106,'COM','SEL/MEL/Instr','2','2008-04-02','2007-12-24');
INSERT INTO PILOT VALUES(109,'COM','SEL/MEL/SES/Instr/CFII','1','2008-04-14','2008-04-21');

/* -- */

CREATE TABLE RATING (
RTG_CODE varchar(5) primary key,
RTG_NAME varchar(50)
);
INSERT INTO RATING VALUES('CFI','Certified Flight Instructor');
INSERT INTO RATING VALUES('CFII','Certified Flight Instructor, Instrument');
INSERT INTO RATING VALUES('INSTR','Instrument');
INSERT INTO RATING VALUES('MEL','Multiengine Land');
INSERT INTO RATING VALUES('SEL','Single Engine, Land');
INSERT INTO RATING VALUES('SES','Single Engine, Sea');

Answer the following questions based on the above database:

     

1. (4 Points) Create a view named “ATL_CHARTERS_V” that includes the following “For each charter of aircraft to Atlanta (STL), print the charter date, charter hours flown, and the corresponding customer last name, first name, area code, and phone number”. Your answer should include both the SQL statement for view creating along with the contents of the view (you get the contents of the view by select * from ATL-CHARTERS_V).

2. (4 Points) Modify the MODEL table to add the following attribute: (Note: use ALTER TABLE and UPDATE commands for this question.)

Attribute name	Attribute Description	Attribute type
MOD_LIFT_ WEIGHT	Amount of weight each model can lift	Numeric

Once the attribute has been added, update the values of all rows as per following values:

Attribute values for MOD_LIFT_WEIGHT

10,000 for Mod_code = DC-90A

5,000 for Mod_code = MA23-250

20,000 for Mod_code = PA31-950

3. (4 Points) Create a trigger named trg_charter_hours that will automatically update the AIRCRAFT table after a new CHARTER row is added. Use the CHARTER table’s CHAR_HOURS_FLOWN to update the AIRCRAFT table’s AC_TTAF, AC_TTEL, and AC_TTER values.

The meaning for the AIRCRAFT table columns are as follows:

AC_TTAF: Total time on the air frame

AC_TTEL: Total time on the left engine (Also used to record single engine hours) AC_TTER: Total time on the right engine.

So in the trigger, you need to increase all of them with value of CHAR_HOURS_FLOWN

4. (4 Points) Create a trigger named trg_cust_balance that will automatically update the AC_CUSTOMER table’s CUS_BALANCE before a new CHARTER row is added. Use the CHARTER table’s CHAR_TOT_CHG as the update source (Assume that all charter charges are charged to the customer balance.) In addition to the CHAR_TOT_CHG, add $25 for every quart of oil

used on the charter.

5. (4 Points) Create a stored procedure to update model charge per mile attribute. Procedure takes the model number as a parameter. The procedure increases the charge for this model by 25%.

6. (4 Points) Create a stored procedure that will take an Employee number and percentage, then update the corresponding employee’s hourly salary by the input percentage (increase the hourly salary, so you are giving the employee a raise).

Hint: Alter Employee table to add the hourly_salary field, update it with a value of 30 for all rows in the table, before creating the procedure.

1. Equilibrium price is $10 in a perfectly competitive market. For a perfectly competitive firm, MR=MC at 1200 units of output. At 1200 units, atc is $23 and avc is $18. The best policy for this firm is to ___ in the short run. Also, this firm earns ___ of ___ if it produces and sells 1200 units. a.shut down, losses, 15,600 b.shut down, losses, 9,600 c.continue to produce, losses, $15,600 d.continue to produce, profits, $15,600

2. Ultimately, market supply curves are upward sloping because of a.the law of diminishing marginal returns b.economies of scale c.average fixed cost falling continually as more output is produced d.the law of the short-run marginal cost revenue e.specialization

3. The long-run industry supply curve is the graphic representation of the quantity of output that the industry is prepared to a.supply at different prices after the entry and exit of firms is completed b.supply at a single price after the entry and exit of firms is completed c.purchase at different prices after the entry and exit of firms is completed d.purchase at different prices after the entry of firms is completed e.supply at different prices after the exit of firms is completed

4. When an industry is described as a decreasing-cost, increasing-cost, or constant-cost industry, the “cost” that is being referred to is a.marginal cost b.average total cost c.average variable cost d.sunk cost e.fixed cost

5. Which of the following comments is true? A.a perfectly competitive firm that seels to maximize profits will not be resource-allocative efficient b.If the demand curve and the marginal revenue curve weren’t the same curve for a perfectly competitive firm, then the firm would not be resource-allocative efficient c.resource allocative efficiency exists when a firm produces its output at the lowest possible per-unit cost (lowest atc) d.productive efficiency exists when firms produce the quantity of output at which price equals marginal cost e.c and d

6. A public franchise is a right granted a.to one firm by another firm, for example, McDonalds corporation grants restaurant owners a franchise to make its hamburgers b.to a firm by gov. that prevents other firms from producing the same product or service c.to a cooperative of buyers that allows the group to purchase goods at wholesale prices d.by gov. That enables a person to engage in arbitrage

7. Which of the following is the best example of a barrier to entry into a monopolistic industry? A.diminishing returns b.comparative advantage c.high elasticity of demand d.a public franchise

8. Which of the following is not an example of a legal barrier industry? A.beautician’s license b.patent c.exclusive ownership of raw materials d.public franchise e.copyright

9. A monopolist can sell 16000 units at a price of $100 per unit. Lowering price by $1 raises the quantity of demand by 500 units. What is the change in total revenue resulting from this price change? A.33,500 b.12,500 c.65,500 d.-33,500

10. Your school pays one rate for the first million kilowatts of electricity and a lower rate for any power it uses over one million kilowatts. What is occurring here? A.perfect price discrimination b.second degree price discrimination c.third degree discrimination d.economies of scale

Make sure that all statistical analysis to be done in Excel and/or StatCrunch and answer all parts:

You will be performing an analysis on heights in the US population, broken out by gender. You will need to know that US heights for males and females both follow an approximately normal distribution. The average height for women is 63.7 inches and a standard deviation of 2.7 inches. The average height for men is 69.1 inches and a standard deviation of 2.9 inches. You will use these numbers in your calculations.

Steps (all statistical analysis to be done in Excel and/or StatCrunch):

1. Collect the heights from 5 females and 5 males that you know. Make sure that you put all heights into inches. Include yourself in the analysis (as one of the 10).

2. Normal Distribution application:

a. Calculate z-scores for each of the selected people and provide interpretations for at least 2 of your z-scores (after looking up probabilities on the table). You also need to include interpretations that indicate how “rare” your observations are in the body of your paper. (Ex: Individual A from my sample with a height of ______ had a corresponding z-score of _____. This means that _______% of people are taller/shorter than him/her)

b. Include one graphic that shows the normal curve along with labels for the middle 68%, 95% and 99.7%. Also show where your own height is on the curve along with an interpretation of how relatively “tall” or “short” you are in comparison with the rest of your gender.

c. Calculate the mean of your male heights and female heights and compare this with the population mean (is it above/below – why is it not exact).

d. Calculate z-scores for the average heights of WNBA and NBA players (typically much taller than the average person) and also male jockeys (typically quite a bit shorter than the average person). Provide interpretations for each.

3. Binomial Experiment application:

a. In order to be considered for a tier 1 point guard in women’s basketball, you need to be 5’8”. Let’s consider a “success” as finding a woman who is 5’8” or taller. The probability of success is approximately 5%. If we consider a sample of 1000 women, calculate the mean and the standard deviation of the binomial random variable.

b. Calculate the range of “normal” observations (not unusual) for the number of women that we would expect to be 5’8” or taller in a sample of 1000 women and use it in a sentence.

c. Use a binomial calculator to calculate the probability of selecting*:

i. Less than 40 women who are 5’8” or taller

ii. Exactly 60 women who are 5’8” or taller

iii. Between 50 and 80, inclusive, women who are 5’8” or taller

iv. More than 70 women who are 5’8” or taller

v. At least 60 women who are 5’8” or taller

*Don’t just give answers here, use complete sentences. Graphs would be a nice addition here (StatCrunch screen grabs or Excel graphs).

d. Can we use the normal distribution as an approximation for the binomial in this case? Why or why not? If yes, what is the probability that we would choose less than 40 women who are 5’8” or taller using this approximation? How does this value compare with the value calculated in part c(i) above?

John and Nina Hartwick, married 14 years, have a 10-year old daughter, Rita. Eight years ago, they purchased a home on which they owe a mortgage of $160,000. The home is appraised at $220,000. They also owe $6,000 on a two-year old automobile. The automobile is worth $12,000. All of their furniture (value $15,000) and second car (value $6,000) is paid for, but they owe a total of $18,120 on two high interest rate credit cards (19.99%). John is employed as an engineer and makes $85,000 a year. Nina works from home as a part-time graphic designer and earns $22,000 a year. Their combined monthly income after deductions for taxes and their portion of employer-sponsored health care is $6,200. John is eligible for his company’s 401(k), but he does not contribute. His employer will match 100% up to 3% of his contributions. Nina’s company does not offer a 401(k).About six months ago, the Hartwick’s had what they now describe as a “financial meltdown”. It all started one Monday afternoon when the transmission on their second car had to be replaced. Although they thought it would be an easy fix, the mechanic told them the transmission would need a complete overhaul. Unfortunately, the warranty on the automobile’s drive-train component was for 5 years or 50,000 miles. Since this car was just over 6 years old, they would have to pay for the repair, and the mechanic said it would cost about $2,100 to rebuild the transmission. They thought about buying a new car, but they did not think they could afford two car payments. At the time, they had about $3,500 in their savings account, which they had been saving for a summer vacation, and now they had to use their vacation money to fix the transmission. They have $2,000 in their checking account. Their Traditional IRA is valued at $51,000, and is in a Certificate of Deposit that earns 3% per year.For the Hartwick’s, the fact that they did not have enough money to take a vacation was a wake-up call. They realized they were now in their mid-30s and had serious cash problems. According to John, “We do not waste money to do the things we want to do.” But according to Nina, “The big problem is that we never have enough money to start an investment program that could pay for our daughter’s education or fund more money into our retirement account.” They would both like to retire when they reach the age of 65They decided to take a big first step in an attempt to solve their financial problems. They began by examining their monthly expenses for the past month. See page 3 for cash inflows and outflows.Once the Hartwick’s realized they have a $250 surplus each month, they plan on replacing the $2,100 taken from their savings account to pay for repairing the transmission. Now it was time to take the next step.

1. How would you rate the financial status of the Hartwick’s before their second automobile broke down? Provide a discussion of the strengths (minimum of four) and weaknesses (minimum of four) of the Hartwick’s current financial situation.

Case: You are the owner of YumRunner, a food delivery service that allows customers to order food from their favourite restaurants and have it delivered to their homes through your app. Your company has been in operation for five years, and you service the Mississauga area only. YumRunner is a locally-owned and operated business. You’re eco-friendly in that your delivery persons ride bicycles and motorized scooters (as opposed to driving cars). You pay your delivery persons competitive wages and emphasize the importance of excellent customer service. As a result, YumRunner regularly receives positive online reviews, and has built up a steady clientele over the past five years. When you started YumRunner in 2015, you charged restaurants a 20% commission for each delivery order that was placed through your service (e.g. if a customer ordered a $10 meal from a restaurant through your app, YumRunner would earn $2 on it). Now, due to inflation and rising costs in labour, you have decided to raise your commission rate to 23%. This higher rate is in line with what many other food delivery services charge. You must now write to all of the restaurants who use your company’s delivery service to let them know of your commission rate increase. Your task: Write an indirect negative news letter to Jerry Capra, manager of Jerry’s Pizzeria, in which you explain your need to raise your commission rate. Your letter should clearly explain the reasons why your commission rate is increasing, while highlighting any alternatives or other reader benefits that you can. It is important that your letter maintains goodwill, as Jerry’s Pizzeria is a big client. You will need to invent an address both for Jerry’s Pizzeria and for YumRunner’s headquarters. Your letter should be between ¾ page and one page long, and follow all the proper formatting for an indirect business letter. Use formal writing style, and include a formal greeting which includes the receiver’s honorific title and last name, as well as a formal sign-off. Include all elements of a business letter (see p. 217 of your textbook for a sample). Use graphic highlighting to emphasize key information. Your message should be clear and well-written, and promote goodwill on behalf of your organization. Before you begin, consult the marking rubric on p. 2. *Tips: Do not copy the wording from this case; it would not be appropriate in your letter. You will need to invent several details to make the scenario more realistic, and to give your reader all the information he needs in order to understand why you are raising your commission rate (and to prevent him from cutting ties with YumRunner altogether). You wish to avoid having him email you with follow up questions (this wastes time), so be thorough in your letter! Remember the GOALS of a negative letter: • Help your reader understand and accept the bad news by making your message clear and fair. • Project a positive, professional image of you and your organization. • Convey empathy and sensitivity. Don’t sound accusatory! • Maintain goodwill.

For mallard ducks and Canada geese, what percentage of nests are successful (at least one offspring survives)? Studies in Montana, Illinois, Wyoming, Utah, and California give the following percentages of successful nests (Reference: The Wildlife Society Press, Washington, D.C.). x: Percentage success for mallard duck nests 17 86 59 47 29 y: Percentage success for Canada goose nests 24 18 18 51 51 (a) Use a calculator to verify that Σx = 238; Σx2 = 14,216; Σy = 162; and Σy2 = 6,426. Σx Σx2 Σy Σy2 (b) Use the results of part (a) to compute the sample mean, variance, and standard deviation for x, the percent of successful mallard nests. (Round your answers to two decimal places.) x s2 s (c) Use the results of part (a) to compute the sample mean, variance, and standard deviation for y, the percent of successful Canada goose nests. (Round your answers to two decimal places.) y s2 s (d) Use the results of parts (b) and (c) to compute the coefficient of variation for successful mallard nests and Canada goose nests. (Round your answers to one decimal place.) x y CV % % Write a brief explanation of the meaning of these numbers. What do these results say about the nesting success rates for mallards compared to Canada geese? The CV is the ratio of the standard deviation to the mean; the CV for Canada goose nests is higher. The CV is the ratio of the standard deviation to the mean; the CV for Canada goose nests is equal to the CV for mallard nests. The CV is the ratio of the standard deviation to the mean; the CV for mallard nests is higher. The CV is the ratio of the standard deviation to the variance; the CV for Canada goose nests is higher. The CV is the ratio of the standard deviation to the variance; the CV for Canada goose nests is equal to the CV for mallard nests. The CV is the ratio of the standard deviation to the variance; the CV for mallard nests is higher. Would you say one group of data is more or less consistent than the other? Explain. The x data group is more consistent because the standard deviation is smaller. The two groups are equally consistent because the standard deviations are equal. The y data group is more consistent because the standard deviation is smaller.

Read and answer the question:

Summary

Wal-Mart’s stock tumbled on the news that the company was investigating possible violations of the Foreign Corrupt Practices Act. According to information leaked to the press, Wal-Mart may have been bribing Mexican government officials in order to gain the zoning approvals it needed to build stores in the country. What makes the story especially interesting was the fact that the company appears to have known about the violations for several years, yet seemingly chose to do nothing.

While Wal-Mart had no legal obligation to disclose the fact that it was looking into the situation some years ago, analysts agree that the company had an ethical responsibility to make some disclosure, particularly given that the retail giant seems to have done little with the knowledge of a potential violation. Investigators will be looking to see whether the company gained an unfair competitive advantage as a result of its illegal activity.

If the company is found to have violated the Foreign Corrupt Practices Act it could face fines, and possibly have to return some of the profits it earned as a result. In addition, because it seems that top level executives were aware of the bribes when they occurred, there could be further penalties. Wal-Mart’s current CEO, Mike Duke, was head of Wal-Mart International at the time of the bribes.

Discussion Questions

1. If the allegations against Wal-Mart prove to be true, the company will certainly be penalized for its illegal behavior. Consider, though whether the Foreign Corrupt Practices Act puts U.S. firms at a competitive disadvantage in foreign markets. Does it actually encourage unethical behavior by firms?
2. Is it ethical for U.S. lawmakers to prohibit bribery in foreign markets? What are the implications of the Foreign Corrupt Practices Act on employment and economic development in countries like India and Mexico?
3. Suppose you are a U.S. supplier to Wal-Mart Mexico. Do you agree with the Foreign Corrupt Practices Act? How does it affect you? Do you feel that U.S. lawmakers have the right to limit the activities of U.S. firms in foreign markets?
4. How might the organization culture at Wal-Mart encourage managers to make unethical decisions? Discuss the expectations of shareholders. Do you think shareholders would look the other way if Wal-Mart bribed Mexican officials to speed up its approvals?