The chapter discussed the Internet as a disruptive innovation that has facilitated online retailing. It also, however, has presented challenges to brickand-mortar retailers. How might retailers such as Nordstrom, Neiman Marcus, or Macy’s need to change their in-store experience in order to continue to attract a flow of customers into their stores to expand sales using direct selling and
store displays of the actual merchandise? If the Internet continues to grow and sales of brick-andmortar retailers decline, how might the retailers attract, train, and retain high-quality employees if the industry is perceived as in decline?

b. Much has been said about competitive advantage gained from innovations such as the Internet, hightechnology gadgets, and apps. The chapter points out, however, that low-technology innovations such as the razor–razor-blade business model can also create value. Think of other low-technology innovations that are/were novel, useful, and successfully implemented so that the innovating firm gained a competitive advantage. Find information about the entrepreneurial story behind the innovation.

examine the effects of industrialization and globalization through an anthropologist’s lens using the concept of cultural relativism. The discussion will take the form of a debate in which you will examine sweatshops as places that offer valuable opportunities to workers. In your initial post, be sure to do the following:

Explain how industrialization and globalization—including technological innovation—contribute to the existence of sweatshops.

Defend your assigned position, citing specific information from the provided resources.

Use clear statements as to how cultural relativism influences your position.

examine the effects of industrialization and globalization through an anthropologist’s lens using the concept of cultural relativism. The discussion will take the form of a debate in which you will examine sweatshops as places that offer valuable opportunities to workers. In your initial post, be sure to do the following:

Explain how industrialization and globalization—including technological innovation—contribute to the existence of sweatshops.

Defend your assigned position, citing specific information from the provided resources.

Use clear statements as to how cultural relativism influences your position.

Vertical Analysis of Income Statement

Revenue and expense data for Innovation Quarter Inc. for two recent years are as follows:

a. Prepare an income statement in comparative form, stating each item for both years as a percent of sales. If required, round percentages to one decimal place. Enter all amounts as positive numbers.

The PARC Co. Inc. asked you to determine some of the after-tax cash flows (ATCF) for equipment used for research and development that is being considered. PARC expects the equipment to require the purchase of $190,000 worth of capital equipment (first cost) and to operate for five years. The capital equipment will have a resale value of $55,000 at the end of the 5^th year. PARC plans to use the sum-of-years’-digits depreciation method for income tax calculations. The income tax rate is 35%, and PARC uses an after-tax MARR of 10%. The equipment results in PARC's before-tax income of $40,000 each year. Answer the following questions.

(a) Show before-tax cash flows (BTCF) from n=0 to n=5.

(b) Calculate depreciation charges.

(c) Determine taxable incomes.

(d) Compute income taxes.

(e) Show after-tax cash flows (ATCF).

(f) Determine both the after-tax NPW and after-tax rate of return for this investment.

(g) Indicate if it is worth investing on this equipment.

Total Manufacturing Cost, Income Statement, Unit Cost, and Selling Price Two inventors, recently

organized as Innovation, Inc., consult you regarding a planned new product. They have estimates of the

costs of materials, labor, overhead, and other expenses for 2016 but need to know how much to charge for

each unit to earn a profit in 2016 equal to 15% of their estimated total long-term investment of $400,000

(ignore income taxes). Their plans indicate that each unit of the new product requires the following:

Direct material

4 lb. of a material costing $5/lb.

Direct labor

2 hrs. of a metal former’s time at $11/hr.

0.6 hr. of an assembler’s time at $8/hr.

Major items of production overhead would be annual rent of $46,460 for a factory building, $28,660

rent for machinery, and $21,700 of indirect material. Other production overhead is estimated to be

$233,280. Selling expenses are an estimated 30% of total sales, and non-factory administrative expenses

are 20% of total sales.

The consensus at Innovation is that during 2016 10,000 units of product should be produced for

selling and another 2,000 units should be produced for the next year’s beginning inventory. Also, an

extra 3,000 pounds of material will be purchased as beginning inventory for the next year. Because

of the nature of the manufacturing process, all units started must be completed, so work in process

inventories are negligible.

Required

a. Incorporate the above data into a schedule of estimated total manufacturing costs and compute

the unit production cost for 2016.

b. Prepare an estimated income statement that would provide the target amount of profit for 2016.

c. What unit sales price should Innovation charge for the new product?

Fostering Innovation This activity is important because as a manager, you must be able to create an atmosphere that encourages employee creativity, learning and exploration. This in turn improves the company’s ability to effectively respond to opportunities and threats. The goal of this exercise is to demonstrate your understanding of the steps managers can take to encourage innovation so employees can solve problems and create distinctive new products and services. Hover cursor over the names to read the description and then drag it to the characteristic that creates innovation in a company.

Creativity:

Learning organization:

Intraprenerurship:

------------------------------------------------------------------------------------------- Each need to go to one of the above categories.

Facebook: Encourages empoyees to experiment and even make mistakes

Logan: Was just given six months sabbaatical from her current job to lead the creation and launch of a new servie she recommended.

Jordan: encourages departmental teams to share both successes and failures with the larger organization

Jennifer: is very excited that the company wants her develeop personal mastery by experimenting, creating, and exploring what she wants

Rewards: some companies use contests, rewards, and even time off to encourage employees to generate and share new ideas

Bailey: works diligently to make sure the team understands and shares the organization's vision.

Jonathan: is not allowed to explore his ideas for imporoving the company's product, he may leave and start his own company offering a competing product.

Google:As part of its hiring process, google asks prosective brain teaser questions to see if candidates respond with original novel ideas.

Jorge: has been designated as the product champion for the company's fledgling new product.

Life Situation: Megan and Sean are looking for their first home in Ontario. They are in their late 20s and have been married for three years. They still have a small amount left to pay towards their student and car loans. They do not have any children but plan to in the near future. Both Megan and Sean have steady stable jobs with good advancement opportunities. They are making housing savings. They do not want to use RRSP Home Buyer’s Plan for down payment.

Monthly Budget

* Savings - usually each month they contribute $100 to their emergency savings, $300 to their RRSPs and $950 to their house savings

Net Worth

** They will be finished paying for the car loan in 16 months
*** They will be finished paying for the student loans in 28 months

Question 1

Suppose the couple uses CIBC. Research the current mortgage rates at CIBC and at a mortgage broker (your own selection). The rates quoted by the brokers are usually for fixed rate, closed mortgages. Fill in the table on the answer template with your information. You can adjust the table to reflect the information available from your source. You will not fill in every cell.

Question 1

Bank: CIBC                                                                                                      Date:                                                           

Broker:                                                                                            Date:                                                           

introduces the concept of probability and defines it. We frequently use probability in our daily lives to make decisions when we are not sure about the outcome. Read the following mind-boggling famous problem and decide.
“The Monty Hall problem" is a famous probability related conundrum faced by participants on the game show Let’s make a deal that premiered in 1963 and is still running some markets around the world. At the end of each day’s show, a contestant was invited to stand with host Monty Hall facing three big doors: Door no. 1, Door no.2, and Door no.3. Monty explained to the contestant that there was a highly desirable prize behind one of the doors and a goat behind the other two doors. The player chose the three doors and would get a prize whatever was behind it. The initial probability of winning was straight forward. There were three two goats and one car. As the participant stood facing the doors with Monty, he or she had a 1 in 3 chance of choosing the door that would be opened to reveal the car. However, Let’s make a deal that had a twist, which is why the show was immortalized in the probability literature. After the contestant chooses a door, Monty would open one of the two doors that the contestant had not picked, always revealing a goat. At that point, Monty would ask the contestant if he would like to change his pick-to switch from the closed door that he had picked originally to the other remaining closed door. For the sake of example, assume that the player has chosen Door no. 1. Monty would then open-Door no. 3; the live goat would be standing there on stage. Two doors would still be closed, nos. 1 and 2. If the valuable prize was behind no. 1, the contestant would win; if it was behind no. 2, he would lose. But then things got more interesting: Monty would turn to the player and ask whether he would like to change his mind and switch doors (from no. 1 to no. 2 in this case). Remember, both doors were still closed, and the only new information the contestant had received was that a goat showed up behind one of the doors that he didn’t pick.”

Address the following question in your post:
• Should the contestant switch the door? Make sure to discuss the reasons why he needs to switch or not switch.

(Round answers to 0 decimal places, e.g. 2,500. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)