Final Project: Leadership and Strategy Plan

For this Final Project, you select a pressing health problem affecting a community and develop a leadership and strategy plan for addressing the problem. You link this problem to a corresponding Healthy People 2020 objective(s).  

Scenario  
You are a new Health Program Planner recently hired by the Lake Troubled Shallows Department in Minnesota. Prior to your arrival, a comprehensive community health needs assessment was conducted by the Health Department. Based on the assessment, the following top five community health needs were identified. • Heart disease and stroke prevention • Diabetes screening • Physical activity • Maternal, infant and child health monitoring and treatment • Mental health and mental disorders screening and treatment

The executive director of the Lake Troubled Shallows Health Department has tasked you with targeting one of the aforementioned community health needs as a top priority during your first year. The director has asked you to develop a leadership and strategy plan to address your identified community health need.  

As part of the pre-planning stage of developing your leadership and strategy plan, first select and match one the Healthy People 2020 objectives to one of the top five needs identified by the Health Department.  

For instance, if you choose “physical activity,” review the various physical activity objectives under the general Healthy People 2020 Objectives. Then, select a specific, measurable sub-objective.  

You will need to review the current national data on your chosen objective.  

Next, for purposes of this assignment, you should assume that the health status of  
individuals residing in Lake Troubled Shallows is representative of the overall health  
status of individuals living within Minnesota. You can go to the Minnesota State Health  
Department’s website to find additional data on state level progress and resources to  
support your leadership and strategy plan at:  

http://www.health.state.mn.us/healthymnpartnership/hm2020/#fw
  
Lake Troubled Shallows Health Department’s Vision, Mission, and Guiding Principles:  

Vision: Healthy People Living in Healthy Communities  

Mission: To promote and protect health while preventing disease  

Guiding Principles:  
• Evidence-based practices  
• Collaboration and communication with community members and partners  
• Education and outreach  
• Empowering people to make healthy choices  

You have been given an initial program startup budget of $250,000 (including your  
salary and benefits) to aid you with initial program planning and implementation. (Note:  
you will develop an annual operating budget in the Assignment.).  


The Executive Director of the Lake Troubled Shallows Health Department has asked  
that you submit a “Leadership and Strategy” plan to her within the next 2–3 months. The  
next section contains the required components of the plan that you must submit to her.  

Assignment Instructions  
Once you have completed background research and identified a community health  
need, you develop a leadership and strategy plan to address it.  

Paper Format:  
13-to 15-page paper (not including title page), APA format  

Leadership and Strategy Plan  
• Executive Summary (1 page)  
• Table of Contents (1 page)  
• Manuscript (see components list below)  

The manuscript section of your Final Project will need to address the following  
components:  
• Introduction (1–2 pages):  
Select a problem from one of the five problems identified in the Background  
(Scenario) and match it to one Healthy People 2020 objective (sub-objectives  
that are measurable). Describe the rationale for selection of this problem and the  
magnitude of the problem (e.g., incidence, prevalence, impact on communities  
and society).  

? Strategic Plan (2 pages plus SWOT analysis worksheet, revised from Week 7):  
Use the SWOT analysis template completed in Week 7 as a starting point for this  
section. (You will include your completed template in the appendices of this Final  
Project.) For this Final Project, address the following based on your SWOT  
analysis:  
o Identify any connections between listed items in the quadrants (i.e., is there an opportunity that can be taken advantage of to address a particular threat or weakness?). o Propose strategies to maintain, enhance or leverage potential strengths (e.g., make appropriate assumptions about internal strengths of the Health Department). o Propose strategies to minimize weaknesses (e.g., make appropriate assumptions about internal weaknesses of the Health Department). o Propose options for leveraging or taking advantage of opportunities. o Explain the potential impact of threat/challenges and what you should do to address or prepare for the threat. o Explain potential strategic issues that the health department may need to address.  

• Program Description (2 pages): o Review the evidence for a program intervention—ideally, this will be quality, evidence-based public health information demonstrating best  
practices from peer-reviewed literature. Find at least three sources of  
evidence, preferably peer-reviewed. o Briefly describe the hypothetical program to address your chosen community health problem. Based on your SWOT Analysis, include 3–5  
specific and measurable program objectives that you hope to accomplish  
within 1 year (Refer to SMART Objectives Template as a guide for  
developing appropriate program objectives).  

• Leadership Challenges and Systems Thinking (3 pages):  
(Refer to Weeks 1 and 2 Learning Resources.) Describe and explain the leadership approach you will take to execute your plan. Include the leadership style(s) you will employ and the leadership skills necessary to be effective including emotional intelligence and cultural competence.  

o Briefly describe how you will apply systems thinking to your identified community health issue in order to communicate to others (stakeholders) with regards to how your proposed plan may impact the community. A common systems thinking tool is a casual loop diagram. Please review the resources from Week 2 related to systems thinking and create a simple casual loop diagram that relates to your program development. o Note: You can use PowerPoint (go to “Insert” then “SmartArt”) to create your casual loop diagram and copy and paste the graphic into the paper. o The following is an example of a simple casual loop diagram:  



Morbidity and Mortality risks of HIV/AIDs
Evaluation of evidencebased screening, treatment, and education Options
Community Awareness of risks and treatment options
Engagement of key stakeholders in the community
Development of public health initiatives
• Ethical Implications (0.5–1 page):  
(Refer to Week 3 Learning Resources.) Describe anticipated ethical issues or  
concerns of your leadership and strategy plan. What are some of the challenges  
anticipated?  

• Engaging Communities and Building Constituencies (1.5–2 pages):  

(Refer to Week 4 Learning Resources.) Describe how you will engage  
community partners and key stakeholders. Describe key partners and  
stakeholders and the level of engagement needed. Discuss anticipated conflict  
resolution and negotiation skills that will be required.  

• Budgeting, Financing, and Human Resources (1–1.5 pages):  
(Refer to Weeks 5 & 6 Learning Resources.)  
You have been given a budget of $250,000 in initial start-up funds, which  
includes your salary and benefits. You must develop an annual operating budget  
(in addition to the $250,000 start-up funding). o Explain the funding issues related to your Final Project community health problem. Include such characteristics as whether these issues are long-or  
short-term, how urgent they are, and which stakeholders might be most  
affected. Identify in your budget any additional staff that you will need to  
hire, including a brief description of their roles and responsibilities. o Complete the blank budget worksheet provided (similar to the one you completed in Week 5) indicating the funding opportunities and costs  
related to the chosen project. o Based on your research, as well as the information included in the budget worksheet, recommend some potential funding sources (including grant  
funding) and explain why you recommend them. In your explanation,  
include variations in funding and how these variations influenced your  
decision making. You are expected to search various funding sources  
such as community-level grants, state funding, nonprofit associations, etc.  

• Performance Management & Health Informatics (2 pages): o (Refer to Weeks 8 and 9 Learning Resources.) Based on your SWOT Analysis, include 3–5 specific and measurable process objectives that you  
hope to accomplish within 1 year. (Refer to SMART Objectives Template  
as a guide for developing appropriate program objectives.) o Explain how you will measure the objectives identified in your program description to determine if you have reached them. Include a description  
of how you will get the data with which to evaluate your objectives.  
Remember the need to be realistic in your use of data sources and,  
wherever possible, aim to use data that are being collected by others  
(e.g., BRFSS -Behavioral Risk Factor Surveillance System, America’s Health Rankings report -State Health Statistics at AmericasHealthRankings.org).  

• Reference List (minimum of 8–10 credible references; e.g., peer-reviewed,  
governmental websites)  

• Appendices  
The appendices will include completed versions of additional documents required  
to complete this Assignment: o SWOT Analysis Template (including SMART Objectives Template) o Excel Budget Worksheet

Students are to complete journal entries for each month, including adjusting and closing, trial balances, and financial statements consisting of Income Statement, Statement of Retained Earnings, and Balance Sheet in classified format. The minimum chart of accounts for the Peavy Cleaning Corporation practice case is the following (more or less may be used):

• Assets – Cash, Accounts Receivable – Regular Customers, Accounts Receivable – Warhawk Gym, Prepaid Insurance, Supplies, Cleaning Equipment, Truck and Land.
• Liabilities – Accounts Payable – Home Improvement, Accounts Payable – Big Sparkle, Notes Payable – Land, Notes Payable – Truck, Unearned Service Revenue
• Stockholder’s Equity – Common Stock, Retained Earnings, Dividends – Mark Peavy
• Revenue – Service Revenue, Sales Discounts
• Expenses – Auto Expense, Insurance Expense, Office Expense, Organization Expense, Rent Expense, Salary and Wage Expense

Please use the excel function data on stocks, bonds, bills to start discussion on time value.

First question:

Using the data and $100 invested in stocks, bonds and bills, confirm the values at 2011.

Terminal value at 2011= $100(1+r1)(1+r2)...(1+r84)

where r1= actual return given for 1928

r2=actual return given for 1929

r84=actual return given for 2011 for stocks, bonds and bills

Second Question:

Investing over 84 years is a little far fetched unless your grandfather was like Donald Trump's G.PA. Now consider dividing 1928-2011 to three sub-period of 1928-56 (28 years), 1956-1984 28 yr) and 1984-2011 (27 yr). Let's see how investment of $100 in stocks, bonds, bills using again the actual returns provided in each asset class (stocks, bonds, bills) perform? Compare, the future value of each investment as if in the second 28 years, and last 27 years you start with $100 investment in stocks, bonds, bills. What are the lessons we learn in this exercise as far as your future contribution to your own 401K is concerned?

Engineering Ethics Course

Codes of Ethics Assignment

Review the DIA Runaway Concrete case (Case below) and the ASCE code of ethics. Which of the ASCE’s fundamental canons do you believe were violated in this case? For each canon you select, justify your selection with an explanation.

Runway Concrete at the Denver International Airport

In the early 1990s, the city of Denver, Colorado, embarked on one of the largest public works projects in history: the construction of a new airport to replace the aging Stapleton International Airport. The new Denver International Airport (DIA) would be the first new airport constructed in the United States since the Dallas–Fort Worth Airport was completed in the early 1970s. Of course, the size and complexity of this type of project lends itself to many problems, including cost overruns, worker safety and health issues, and controversies over the need for the project. The construction of DIA was no exception.

Perhaps the most widely known problem with the airport was the malfunctioning of a new computer-controlled high-tech baggage handling system, which in preliminary tests consistently mangled and misrouted baggage and frequently jammed, leading to the shutdown of the entire system. Problems with the baggage handling system delayed the opening of the airport for over a year and cost the city millions of dollars in expenses for replacement of the system and lost revenues while the airport was unable to open. In addition, the baggage system made the airport the butt of many jokes, especially on late-night television.

More interesting from the perspective of engineering ethics are problems during the construction of DIA involving the concrete used for the runways, taxiways, and aprons at the airport. The story of concrete problems at DIA was first reported by the Denver Post in early August of 1993 as the airport neared completion. Two subcontractors filed lawsuits against the runway paving contractor, California-based construction company Ball, Ball, & Brosamer (known as 3Bs), claiming that 3Bs owed them money. Parts of these suits were allegations that 3Bs had altered the recipe for the concrete used in the runway and apron construction, deliberately diluting the concrete with more gravel, water, and sand (and thus less cement), thereby weakening it. 3Bs motivation for doing so would be to save money and thus to increase their profits. One of the subcontractors, CSI Trucking, whose job was to haul the sand and gravel used in the concrete, claimed that 3Bs hadn’t paid them for materials that had been delivered. They claimed that these materials had been used to dilute the mixture, but hadn’t been paid for, since the payment would leave a record of the improper recipe.

At first, Denver officials downplayed the reports of defective concrete, relying on the results of independent tests of the concrete. In addition, the city of Denver ordered core samples to be taken from the runways. Tests on these cores showed that the runway concrete had the correct strength. The subcontractors claimed that the improperly mixed concrete could have the proper test strength, but would lead to a severely shortened runway lifetime. The FBI also became involved in investigating this case, since federal transportation grants were used by Denver to help finance the construction of the runways.

The controversy seemed to settle down for a while, but a year later, in August of 1994, the Denver district attorney’s office announced that it was investigating allegations that inspection reports on the runways were falsified during the construction. This announcement was followed on November 13, 1994, by a lengthy story in the Denver Post detailing a large number of allegations of illegal activities and unethical practices with regard to the runway construction.

The November 13 story revolved around an admission by a Fort Collins, Colorado, company, Empire Laboratories, that test reports on the concrete had been falsified to hide results which showed that some of the concrete did not meet the specifications. Attorneys for Empire said that this falsification had happened five or six times in the course of this work, but four employees of Empire claimed that the altering of test data was standard operating procedure at Empire.

The nature of the test modifications and the rationale behind them illustrate many of the important problems in engineering ethics, including the need for objectivity and honesty in reporting results of tests and experiments. One Empire employee said that if a test result was inconsistent with other tests, then the results would be changed to mask the difference. This practice was justified by Empire as being “based upon engineering judgment” [Denver Post, Nov. 13, 1994]. The concrete was tested by pouring test samples when the actual runways were poured. These samples were subjected to flexural tests, which consist of subjecting the concrete to an increasing force until it fails. The tests were performed at 7 days after pouring and also at 28 days. Many of the test results showed that the concrete was weaker at 28 days than at 7 days. However, the results should have been the opposite, since concrete normally increases in strength as it cures. Empire employees indicated that this apparent anomaly was because many of the 7-day tests had been altered to make the concrete seem stronger than it was.

Other problems with the concrete also surfaced. Some of the concrete used in the runways contained clay balls up to 10 inches in diameter. While not uncommon in concrete batching, the presence of this clay can lead to runways that are significantly weaker than planned.

Questions about the short cement content in 3Bs concrete mixture also resurfaced in the November Denver Post article. The main question was “given that the concrete batching operation was routinely monitored, how did 3Bs get away with shorting the cement content of the concrete?” One of the batch plant operators for 3Bs explained that they were tipped off about upcoming inspections. When an inspector was due, they used the correct recipe so that concrete would appear to be correctly formulated. The shorting of the concrete mixture could also be detected by looking at the records of materials delivered to the batch plants. However, DIA administrators found that this documentation was missing, and it was unclear whether it had ever existed.

A batch plant operator also gave a sworn statement that he had been directed to fool the computer that operated the batch plant. The computer was fooled by tampering with the scale used to weigh materials and by inputting false numbers for the moisture content of the sand. In some cases, the water content of the sand that was input into the computer was a negative number! This tampering forced the computer to alter the mixture to use less cement, but the records printed by the computer would show that the mix was properly constituted. In his statement, the batch plant operator also swore that this practice was known to some of the highest officials in 3Bs.

Despite the problems with the batching of the concrete used in the runways, DIA officials insisted that the runways built by 3Bs met the specifications. This assertion was based on the test results, which showed that although some parts of the runway were below standard, all of the runways met FAA specifications. 3Bs was paid for those areas that were below standard at a lower rate than for the stronger parts of the runway. Further investigations about misdeeds in the construction of DIA were performed by several groups, including a Denver grand jury, a federal grand jury, the FBI, and committees of Congress.

On October 19, 1995, the Denver Post reported the results of a lawsuit brought by 3Bs against the city of Denver. 3Bs contended that the city still owed them $2.3 million (in addition to the $193 million that 3Bs had already been paid) for the work they did. The city claimed that this money was not owed. The reduction was a penalty due to low test results on some of the concrete. 3Bs claimed that those tests were flawed and that the concrete was fine. A hearing officer sided with the city, deciding that Denver didn’t owe 3Bs any more money. 3Bs said that they would take their suit to the next higher level.

As of the spring of 2011, DIA has been in operation for many years and no problems have surfaced regarding the strength of the runways. Unfortunately, problems with runway durability might not surface until after several more years of use. In the meantime, there is still plenty of litigation and investigation of this and other unethical acts surrounding the construction of this airport.

ASCE code of ethics

Canon 1.

Engineers shall hold paramount the safety, health and welfare of the public and shall strive to comply with the principles of sustainable development in the performance of their professional duties.

a. Engineers shall recognize that the lives, safety, health and welfare of the general public are dependent upon engineering judgments, decisions and practices incorporated into structures, machines, products, processes and devices.

b. Engineers shall approve or seal only those design documents, reviewed or prepared by them, which are determined to be safe for public health and welfare in conformity with accepted engineering standards.

c. Engineers whose professional judgment is overruled under circumstances where the safety, health and welfare of the public are endangered, or the principles of sustainable development ignored, shall inform their clients or employers of the possible consequences.

d. Engineers who have knowledge or reason to believe that another person or firm may be in violation of any of the provisions of Canon 1 shall present such information to the proper authority in writing and shall cooperate with the proper authority in furnishing such further information or assistance as may be required.

e. Engineers should seek opportunities to be of constructive service in civic affairs and work for the advancement of the safety, health and well-being of their communities, and the protection of the environment through the practice of sustainable development.

f. Engineers should be committed to improving the environment by adherence to the principles of sustainable development so as to enhance the quality of life of the general public.

Canon 2.

Engineers shall perform services only in areas of their competence.

a. Engineers shall undertake to perform engineering assignments only when qualified by education or experience in the technical field of engineering involved.

b. Engineers may accept an assignment requiring education or experience outside of their own fields of competence, provided their services are restricted to those phases of the project in which they are qualified. All other phases of such project shall be performed by qualified associates, consultants, or employees.

c. Engineers shall not affix their signatures or seals to any engineering plan or document dealing with subject matter in which they lack competence by virtue of education or experience or to any such plan or document not reviewed or prepared under their supervisory control.

Canon 3.

Engineers shall issue public statements only in an objective and truthful manner.

a. Engineers should endeavor to extend the public knowledge of engineering and sustainable development, and shall not participate in the dissemination of untrue, unfair or exaggerated statements regarding engineering.

b. Engineers shall be objective and truthful in professional reports, statements, or testimony. They shall include all relevant and pertinent information in such reports, statements, or testimony.

c. Engineers, when serving as expert witnesses, shall express an engineering opinion only when it is founded upon adequate knowledge of the facts, upon a background of technical competence, and upon honest conviction.

d. Engineers shall issue no statements, criticisms, or arguments on engineering matters which are inspired or paid for by interested parties, unless they indicate on whose behalf the statements are made.

e. Engineers shall be dignified and modest in explaining their work and merit, and will avoid any act tending to promote their own interests at the expense of the integrity, honor and dignity of the profession.

Canon 4.

Engineers shall act in professional matters for each employer or client as faithful agents or trustees, and shall avoid conflicts of interest.

a. Engineers shall avoid all known or potential conflicts of interest with their employers or clients and shall promptly inform their employers or clients of any business association, interests, or circumstances which could influence their judgment or the quality of their services.

b. Engineers shall not accept compensation from more than one party for services on the same project, or for services pertaining to the same project, unless the circumstances are fully disclosed to and agreed to, by all interested parties.

c. Engineers shall not solicit or accept gratuities, directly or indirectly, from contractors, their agents, or other parties dealing with their clients or employers in connection with work for which they are responsible.

d. Engineers in public service as members, advisors, or employees of a governmental body or department shall not participate in considerations or actions with respect to services solicited or provided by them or their organization in private or public engineering practice.

e. Engineers shall advise their employers or clients when, as a result of their studies, they believe a project will not be successful.

• Professional cards in recognized, dignified publications, and listings in rosters or directories published by responsible organizations, provided that the cards or listings are consistent in size and content and are in a section of the publication regularly devoted to such professional cards.

• Brochures which factually describe experience, facilities, personnel and capacity to render service, providing they are not misleading with respect to the engineer's participation in projects described.

• Display advertising in recognized dignified business and professional publications, providing it is factual and is not misleading with respect to the engineer's extent of participation in projects described.

• A statement of the engineers' names or the name of the firm and statement of the type of service posted on projects for which they render services.

• Preparation or authorization of descriptive articles for the lay or technical press, which are factual and dignified. Such articles shall not imply anything more than direct participation in the project described.

• Permission by engineers for their names to be used in commercial advertisements, such as may be published by contractors, material suppliers, etc., only by means of a modest, dignified notation acknowledging the engineers' participation in the project described. Such permission shall not include public endorsement of proprietary products.

f. Engineers shall not use confidential information coming to them in the course of their assignments as a means of making personal profit if such action is adverse to the interests of their clients, employers or the public.

g. Engineers shall not accept professional employment outside of their regular work or interest without the knowledge of their employers.

Canon 5.

Engineers shall build their professional reputation on the merit of their services and shall not compete unfairly with others.

a. Engineers shall not give, solicit or receive either directly or indirectly, any political contribution, gratuity, or unlawful consideration in order to secure work, exclusive of securing salaried positions through employment agencies.

b. Engineers should negotiate contracts for professional services fairly and on the basis of demonstrated competence and qualifications for the type of professional service required.

c. Engineers may request, propose or accept professional commissions on a contingent basis only under circumstances in which their professional judgments would not be compromised.

d. Engineers shall not falsify or permit misrepresentation of their academic or professional qualifications or experience.

e. Engineers shall give proper credit for engineering work to those to whom credit is due, and shall recognize the proprietary interests of others. Whenever possible, they shall name the person or persons who may be responsible for designs, inventions, writings or other accomplishments.

f. Engineers may advertise professional services in a way that does not contain misleading language or is in any other manner derogatory to the dignity of the profession. Examples of permissible advertising are as follows:

g. Engineers shall not maliciously or falsely, directly or indirectly, injure the professional reputation, prospects, practice or employment of another engineer or indiscriminately criticize another's work.

h. Engineers shall not use equipment, supplies, laboratory or office facilities of their employers to carry on outside private practice without the consent of their employers.

Canon 6.

Engineers shall act in such a manner as to uphold and enhance the honor, integrity, and dignity of the engineering profession and shall act with zero-tolerance for bribery, fraud, and corruption.

a. Engineers shall not knowingly engage in business or professional practices of a fraudulent, dishonest or unethical nature.

b. Engineers shall be scrupulously honest in their control and spending of monies, and promote effective use of resources through open, honest and impartial service with fidelity to the public, employers, associates and clients.

c. Engineers shall act with zero-tolerance for bribery, fraud, and corruption in all engineering or construction activities in which they are engaged.

d. Engineers should be especially vigilant to maintain appropriate ethical behavior where payments of gratuities or bribes are institutionalized practices.

e. Engineers should strive for transparency in the procurement and execution of projects. Transparency includes disclosure of names, addresses, purposes, and fees or commissions paid for all agents facilitating projects.

f. Engineers should encourage the use of certifications specifying zero-tolerance for bribery, fraud, and corruption in all contracts.

Canon 7.

Engineers shall continue their professional development throughout their careers, and shall provide opportunities for the professional development of those engineers under their supervision.

a. Engineers should keep current in their specialty fields by engaging in professional practice, participating in continuing education courses, reading in the technical literature, and attending professional meetings and seminars.

b. Engineers should encourage their engineering employees to become registered at the earliest possible date.

c. Engineers should encourage engineering employees to attend and present papers at professional and technical society meetings.

d. Engineers shall uphold the principle of mutually satisfying relationships between employers and employees with respect to terms of employment including professional grade descriptions, salary ranges, and fringe benefits.

Canon 8.

Engineers shall, in all matters related to their profession, treat all persons fairly and encourage equitable participation without regard to gender or gender identity, race, national origin, ethnicity, religion, age, sexual orientation, disability, political affiliation, or family, marital, or economic status.

a. Engineers shall conduct themselves in a manner in which all persons are treated with dignity, respect, and fairness.

b. Engineers shall not engage in discrimination or harassment in connection with their professional activities.

c. Engineers shall consider the diversity of the community, and shall endeavor in good faith to include diverse perspectives, in the planning and performance of their professional services.

Student Instruction Sheet Early Supplier Integration in the Design of the Skid-Steer Loader (John Deere Case; page 448; 6th edition of Schroeder) Instructions to Students:

1. Read the case carefully, assimilating all facts and data.

2. Read the Problem Solving Rubric attached. This is how the quality of your case will be gauged.

3. Please write a report covering the following bullet points - while minding the attached rubric on problem solving. (Do not do the Discussion Questions at the end of the case).

-Describe all of the problems faced by Scott Nolan and his company in this case. Be sure to provide justification of why all of these problems are important. Make sure you understand all of the contextual data provided in the case, especially the financial, quality, product development, schedule, and related data.

-For each problem, propose solutions, giving a complete rationale / justification. Be sure to use the data in the case and provide financial and business analysis (qualitative and quantitative) where necessar.

-For each solution, evaluate its potential impact and feasibility.

-You can organize your report so that you address problem, solutions and feasibility issues for each important problem – in separate sections.

4. Your answers should be concise, concrete, action oriented, and well-supported. Please limit your narrative to five pages, single-spaced. You can add appendices, charts, graphs, and exhibits as desired.

5. When you are finished, upload your file to the Dropbox named John Deere Case.

“Congratulations, Scott. You are the new supply management manager of our new Deere & Com- pany Commercial Worksite Products manufacturing facility in Knoxville, TN. As you know, we really need your help to make this new facility fully operational in 24 months. I am sure you realize that a critical responsibility of your new job is to integrate suppli- ers into the product development process for our own Deere manufactured skid-steer loader as quickly as needed. You will be reporting directly to me, and I need a proposal from you by the time we meet next week on June 15, 1996.” As Scott hung up the telephone with James Field, plant manager and his immediate boss, he realized that this was not a simple request. In his proposal, he knew he would need to (a) identify and justify which suppliers to integrate in the product development phase and (b) specify how to structure the interactions with these cho- sen suppliers. The recommendations in his proposal had to ensure that this new plant would be up and run- ning smoothly by the target date in July 1998. EXHIBIT 1 Example of Deere Skid-Steer loader. DEERE & COMPANY New Holland produced its own line of skid-steer loaders that competed directly with the Deere brand, it agreed to sell its excess capacity to manufacture essentially the same product for Deere & Company, allowing aesthetic changes for brand differentiation only. Market In 1995–1996, Deere’s average market share for the skid-steer loader varied between 1 to 3 percent. Market data indicated that this market niche was growing at 15–20 percent per year and was projected to reach overall sales of $1.2 billion, or approximately 60,000 units by year 2000–2001. Given these numbers, corpo- rate headquarters became increasingly interested in establishing the Deere skid-steer loader as one of the leading worldwide competitors in this market niche with a goal of more than tripling its market share. In order to reach such an aggressive goal, Deere realized its market penetration strategy needed to focus on fundamental order-winning criteria in such areas as: Product Features: Because the skid-steer loader is a fixed-investment asset, product features that improve ease of use (e.g., versatility of load place- ment), reduce operational costs (e.g., fuel-efficiency), and reduce maintenance requirements (e.g., self- lubricating parts) would make the difference between the Deere brand and competing products. Product Range: To better serve the customers, Deere knew that it needed to offer some product variety, as typically required for industrial equipment, given dif- ferent usage requirements. Therefore, a range of Deere & Company, headquartered in Moline, IL, had more than 150 years of history, making it one of the world’s oldest business enterprises. A well-respected company, Deere & Company had a core business port- folio in 1996 comprised of the manufacturing, distribut- ing, financing, and servicing of agricultural equipment (e.g., combines and tractors), construction and forestry equipment (e.g., log skidders and forklifts), and commer- cial and consumer lawn care equipment (e.g., lawn and garden tractors and mowers), as well as other techno- logical products and services. With more than 38,000 employees worldwide, Deere & Company conducted business in more than 160 countries. THE SKID-STEER LOADER The Product The skid-steer loader, a small loader with a 1,000- to 3,000-pound-load capacity, was targeted for construc- tion and ground care sites in need of light, versatile and easy-handling land-moving equipment. Deere & Company pioneered the skid-steer loader market more than 25 years ago, but, subsequently, the company had contracted the engineering and manufacturing to New Holland, an independent contractor. Although 416 Part Seven Case Studies models, perhaps differentiated on load capacity and available options (e.g., hand or foot controls) was needed. Product Delivery: Deere knew that demonstrating its skid-loader’s versatile functionality and being able to demonstrate and deliver the product to the actual work site was an important sales incentive. Price: Last but not least, the demand for skid-steer loaders was highly price sensitive. As a result, minimiz- ing cost of goods sold without sacrificing timely deliv- ery of a high-quality Deere skid-loader was imperative. The situation before 1996 was therefore pretty clear. As long as engineering and production of Deere brand skid-steer loaders were in the hands of a third party— one that, in fact, competed in the same market niche— there would be little opportunity to gain significant benefits over competing products and product features. The same argument held for cost considerations, mak- ing better delivery and service the only competitive advantages. Furthermore, expecting market demand for skid-steers would increase, New Holland had refused to sell additional production capacity to Deere & Company. As a result, Deere & Company decided that it needed to regain direct control of the design and manufacturing of this potential lucrative product. THE “GREENFIELD” KNOXVILLE DECISION In April 1996, corporate headquarters approved a capi- tal investment project of $35 million dedicated to regaining control of the design and manufacturing of the steer-skid loader. This capital investment decision also approved the placement of the design, manufacturing, and marketing functions in a new facility to be built near Knoxville, TN. The mandate was clear—engineer and manufacture a high-quality skid-steer loader that would be 20% lower in costs than that of the best competitor’s by August 1998, consistent with other identified order- winning criteria. SCOTT NOLAN, CQE, PE, AND NEW SUPPLY MANAGEMENT MANAGER?Nolan joined Deere & Company as a manufacturing engineer, after graduating from Iowa State University with a mechanical engineering degree in 1979. Along the way, he has received an MBA (in 1989) from the University of Iowa, as well as professional certification as a Certified Quality Engineer and as a Professional Engineer. In 1989, Nolan began working in supply man- agement for the Horicon, WI, lawn and garden equip- ment manufacturing facility. The opportunity to join a new Deere manufacturing facility in the role of supply management manager was a welcomed promotion and challenge. SUPPLIER INTEGRATION IN SKID-STEER LOADER DESIGN?Having worked in supply management for the seven past years, Nolan was well aware of the general princi- ple of involving suppliers in product development and manufacturing decisions and the frequently touted ben- efits of lower costs structures, faster product develop- ment cycle and reduced operational inefficiencies. He believed, however, that not all suppliers needed to be or should be involved, especially in the early stages of the new product development process. Furthermore, involv- ing suppliers should not be “lip-service”; the selected suppliers should be well integrated into the various product development activities. CONCLUSION Reflecting on this knowledge, Nolan realized that he must answer two important questions in his proposal— these being: (a) How to choose the suppliers that should be inte- grated early in developing the new Deere skid-steer loader? (b) And, equally important, what principles/practices/ techniques should be adopted to structure the inter- actions during the early product development phase with these selected suppliers so that the full-scale production of skid-steer loader units would begin by the target date in July 1998? With less than a week before his meeting with James Field, Nolan sat down in front of his home computer and began drafting the proposal.

1. Write the SQL code required to list the employee number, first and last name, middle initial, and the hire date. Sort your selection by the hire date, to display the newly hired employees first.

2. Modify the previous query and list the employee first, last name and middle initial as one column with the title EMP_NAME. Make sure the names are listed in the following format: First name, space, initial, space, last name (e.g. John T Doe). Hint: use + to concatenate the fields and use ' ' to add a space to your text. E. g. EMP_FNAME + ' ' + EMP_LNAME.

3. Write the SQL code that will list only the distinct project numbers in the ASSIGNMENT table, sorted by project number.

4. Using the EMPLOYEE and PROJECT tables, write the SQL code that will join the tables on their common attribute and display the the names and numbers of the projects and the employees who lead these projects.

5. Modify the query in 5 to display all employees and not just the ones who lead projects.

6. Using the EMPLOYEE, JOB, and PROJECT tables in the ConstructCo database, write the SQL code that will join the EMPLOYEE and PROJECT tables using EMP_NUM as the common attribute. Display the attributes shown in the results presented in the attached screen shot, sorted by project value.

7. Using JOB and EMPLOYEE tables, list the jobs and the names of employees who currently have these job categories. List all jobs, even the ones that do not have any matches in the EMPLOYEE table.

8. Write a query to list the names of all employees, the names of the projects to which they are assigned, and the name of employees who lead these projects.

Hint for Question 8: in this question, you will need to join EMPLOYEE to ASSIGNMENT to PROJECT to EMPLOYEE again. Being in the join twice, EMPLOYEE needs aliases:

SELECT ...
FROM EMPLOYEE E1
LEFT JOIN ASSIGNMENT ON ...
LEFT JOIN PROJECT ON ...
LEFT JOIN EMPLOYEE E2 ON ...

When you have aliases, every field from the table should be preceded by the table alias, e.g. SELECT E1.EMP_LNAME, not SELECT EMP_LNAME.

CODE:

/* Database Systems, Coronel/Morris */
/* Type of SQL : SQL Server */

CREATE TABLE ASSIGNMENT (
ASSIGN_NUM int,
ASSIGN_DATE datetime,
PROJ_NUM varchar(3),
EMP_NUM varchar(3),
ASSIGN_JOB varchar(3),
ASSIGN_CHG_HR numeric(8,2),
ASSIGN_HOURS numeric(8,2),
ASSIGN_CHARGE numeric(8,2)
);
INSERT INTO ASSIGNMENT VALUES('1001','3/22/2018','18','103','503','84.5','3.5','295.75');
INSERT INTO ASSIGNMENT VALUES('1002','3/22/2018','22','117','509','34.55','4.2','145.11');
INSERT INTO ASSIGNMENT VALUES('1003','3/22/2018','18','117','509','34.55','2','69.10');
INSERT INTO ASSIGNMENT VALUES('1004','3/22/2018','18','103','503','84.5','5.9','498.55');
INSERT INTO ASSIGNMENT VALUES('1005','3/22/2018','25','108','501','96.75','2.2','212.85');
INSERT INTO ASSIGNMENT VALUES('1006','3/22/2018','22','104','501','96.75','4.2','406.35');
INSERT INTO ASSIGNMENT VALUES('1007','3/22/2018','25','113','508','50.75','3.8','192.85');
INSERT INTO ASSIGNMENT VALUES('1008','3/22/2018','18','103','503','84.5','0.9','76.05');
INSERT INTO ASSIGNMENT VALUES('1009','3/23/2018','15','115','501','96.75','5.6','541.80');
INSERT INTO ASSIGNMENT VALUES('1010','3/23/2018','15','117','509','34.55','2.4','82.92');
INSERT INTO ASSIGNMENT VALUES('1011','3/23/2018','25','105','502','105','4.3','451.5');
INSERT INTO ASSIGNMENT VALUES('1012','3/23/2018','18','108','501','96.75','3.4','328.95');
INSERT INTO ASSIGNMENT VALUES('1013','3/23/2018','25','115','501','96.75','2','193.5');
INSERT INTO ASSIGNMENT VALUES('1014','3/23/2018','22','104','501','96.75','2.8','270.9');
INSERT INTO ASSIGNMENT VALUES('1015','3/23/2018','15','103','503','84.5','6.1','515.45');
INSERT INTO ASSIGNMENT VALUES('1016','3/23/2018','22','105','502','105','4.7','493.5');
INSERT INTO ASSIGNMENT VALUES('1017','3/23/2018','18','117','509','34.55','3.8','131.29');
INSERT INTO ASSIGNMENT VALUES('1018','3/23/2018','25','117','509','34.55','2.2','76.01');
INSERT INTO ASSIGNMENT VALUES('1019','3/24/2018','25','104','501','110.5','4.9','541.45');
INSERT INTO ASSIGNMENT VALUES('1020','3/24/2018','15','101','502','125','3.1','387.5');
INSERT INTO ASSIGNMENT VALUES('1021','3/24/2018','22','108','501','110.5','2.7','298.35');
INSERT INTO ASSIGNMENT VALUES('1022','3/24/2018','22','115','501','110.5','4.9','541.45');
INSERT INTO ASSIGNMENT VALUES('1023','3/24/2018','22','105','502','125','3.5','437.5');
INSERT INTO ASSIGNMENT VALUES('1024','3/24/2018','15','103','503','84.5','3.3','278.85');
INSERT INTO ASSIGNMENT VALUES('1025','3/24/2018','18','117','509','34.55','4.2','145.11');

/* -- */

CREATE TABLE EMPLOYEE (
EMP_NUM varchar(3),
EMP_LNAME varchar(15),
EMP_FNAME varchar(15),
EMP_INITIAL varchar(1),
EMP_HIREDATE datetime,
JOB_CODE varchar(3),
EMP_YEARS int
);
INSERT INTO EMPLOYEE VALUES('101','News','John','G','11/8/2000','502','4');
INSERT INTO EMPLOYEE VALUES('102','Senior','David','H','7/12/1989','501','15');
INSERT INTO EMPLOYEE VALUES('103','Arbough','June','E','12/1/1996','503','8');
INSERT INTO EMPLOYEE VALUES('104','Ramoras','Anne','K','11/15/1987','501','17');
INSERT INTO EMPLOYEE VALUES('105','Johnson','Alice','K','2/1/1993','502','12');
INSERT INTO EMPLOYEE VALUES('106','Smithfield','William','','6/22/2004','500','0');
INSERT INTO EMPLOYEE VALUES('107','Alonzo','Maria','D','10/10/1993','500','11');
INSERT INTO EMPLOYEE VALUES('108','Washington','Ralph','B','8/22/1991','501','13');
INSERT INTO EMPLOYEE VALUES('109','Smith','Larry','W','7/18/1997','501','7');
INSERT INTO EMPLOYEE VALUES('110','Olenko','Gerald','A','12/11/1995','505','9');
INSERT INTO EMPLOYEE VALUES('111','Wabash','Geoff','B','4/4/1991','506','14');
INSERT INTO EMPLOYEE VALUES('112','Smithson','Darlene','M','10/23/1994','507','10');
INSERT INTO EMPLOYEE VALUES('113','Joenbrood','Delbert','K','11/15/1996','508','8');
INSERT INTO EMPLOYEE VALUES('114','Jones','Annelise','','8/20/1993','508','11');
INSERT INTO EMPLOYEE VALUES('115','Bawangi','Travis','B','1/25/1992','501','13');
INSERT INTO EMPLOYEE VALUES('116','Pratt','Gerald','L','3/5/1997','510','8');
INSERT INTO EMPLOYEE VALUES('117','Williamson','Angie','H','6/19/1996','509','8');
INSERT INTO EMPLOYEE VALUES('118','Frommer','James','J','1/4/2005','510','0');

/* -- */

CREATE TABLE JOB (
JOB_CODE varchar(3),
JOB_DESCRIPTION varchar(25),
JOB_CHG_HOUR numeric(8,2),
JOB_LAST_UPDATE datetime
);
INSERT INTO JOB VALUES('500','Programmer',           '35.75','11/20/2017');
INSERT INTO JOB VALUES('501','Systems Analyst',      '96.75','11/20/2017');
INSERT INTO JOB VALUES('502','Database Designer',    '125',   '3/24/2018');
INSERT INTO JOB VALUES('503','Electrical Engineer',  '84.5', '11/20/2017');
INSERT INTO JOB VALUES('504','Mechanical Engineer',  '67.9', '11/20/2017');
INSERT INTO JOB VALUES('505','Civil Engineer',       '55.78','11/20/2017');
INSERT INTO JOB VALUES('506','Clerical Support',     '26.87','11/20/2017');
INSERT INTO JOB VALUES('507','DSS Analyst',          '45.95','11/20/2017');
INSERT INTO JOB VALUES('508','Applications Designer','48.1',  '3/24/2018');
INSERT INTO JOB VALUES('509','Bio Technician',       '34.55','11/20/2017');
INSERT INTO JOB VALUES('510','General Support',      '18.36','11/20/2017');

/* -- */

CREATE TABLE PROJECT (
PROJ_NUM varchar(3),
PROJ_NAME varchar(25),
PROJ_VALUE numeric(10,2),
PROJ_BALANCE numeric(10,2),
EMP_NUM varchar(3)
);
INSERT INTO PROJECT VALUES('15','Evergreen','1453500','1002350','103');
INSERT INTO PROJECT VALUES('18','Amber Wave','3500500','2110346','108');
INSERT INTO PROJECT VALUES('22','Rolling Tide','805000','500345.2','102');
INSERT INTO PROJECT VALUES('25','Starflight','2650500','2309880','107');

Calculate the cash flow over the life

Information gathered from various departments:

1. Six months ago Royal Oceania Cruises paid $30,000 to Wallaby Consultants for market research investigating the demand for a new ship (“Pacific Dream”). The report stipulates that there is strong demand from tourists, individuals aged 30-60, and from individuals who earn an income of $120,000+ per annum.

2. Two months ago, Royal Oceania Cruises invited its wealthiest and frequent cruise customers to an event held at “The Star” casino. The event had a total cost of $5,500 to cover payments for the event space, food and drink and service staff. The purpose of the event was to learn what would be desirable in the new “Pacific Dream” cruise ship. Roger Federer (from the Accounting department) suggests that the $5,500 event costs should be included as an opportunity cost incurred in year 0 of the “Pacific Dream” investment decision.

3. “Sea Princess” and “Ovation of the Seas” are the two other existing cruise ships in the Royal Oceania cruise fleet, both of these cruise ships have been depreciated over a 15-year life. The “Pacific Dream” will be purchased today for $32 million and will be the largest and most luxurious cruise ship operating in the Oceania region. The “Pacific Dream” will measure 348 metres in length, be able to reach a maximum speed of 30 knots and has a maximum passenger capacity of 2,000 customers. Due to the advanced navigational system, novel skydiving opportunities, and mini submarines allowing customers to uniquely observe sea life and creatures, Roger suggests that “Pacific Dream” should be depreciated over a 25-year life.

4. Due to the significant size of the “Pacific Dream”, Sydney Ports requires that the “Pacific Dream” be immediately fitted with a special thruster to manoeuvre within tight spaces. The current market value of a special thruster is $5 million, Roger expects the special thruster to have a useful life of 20 years.

5. The special thruster generates an unpleasant sound when in operation. Royal Oceania will immediately install a noise cancelling device to reduce the effects of the unpleasant sound generated by the special thruster. According to the Royal Oceania Cruises accounting books, an idle noise cancelling device (which has been written off for tax purposes) is currently stored in their North Sydney premises and is compatible with the “Pacific Dream” cruise ship. The Global Maritime Agency website shows that the current market value for the noise cancelling device is $750,000 and forecasts indicate that the noise cancelling device will be worthless 10 years from today. Roger informs you that the noise cancelling device was previously purchased for $2 million.

6. All cruise ships operating in Australian/international waters must purchase a maritime licence. The license must be purchased today and costs $555,000 and lasts for a three-year period. If a cruise ship does not have a license it cannot operate in Australian/international waters. The license can be claimed as an operating expense in the year in which the license was purchased. All operating expenses are tax deductible in the year the expense is incurred and the tax rate is 30% (hint: if an operating expense is incurred in Year 0, then you can record the tax deduction in year 0). The license cost has remained the same since it was introduced in 2005, and the cost is expected to remain the same in the future.

7. To heavily promote the “Pacific Dream”, Royal Oceania Cruises will spend $2.10 million p.a. during the first two years of operation. This campaign will involve sponsorship of the Wallabies during the 2019 World Cup in Japan and subsequently of the Socceroos in the lead up to the 2022 World Cup. Following the end of Year 2, advertising for the “Pacific Dream” will total $750,000 annually.

8. Hugh is slightly concerned by the large marketing costs associated with the “Pacific Dream” investment, so in agreement with Taylor they decide to reduce the total annual advertising expenses associated with the “Sea Princess” and “Ovation of the Seas” from $975,000 p.a. to $810,000 p.a. during the entire life of the “Pacific Dream” project.

9. During a lunchtime briefing the sales team provide you with the following sales information about the “Pacific Dream”, the sales information provided below accounts for seasonal patterns: • Average sales price per customer = $1,000 per cruise journey. • 25 “Pacific Dream” cruises run every year. • Average number of customers = 1,500 per cruise journey.

10. The introduction of the “Pacific Dream” is expected to cannibalise the sales of the “Sea Princess” and “Ovation of the Seas” during the entire “Pacific Dream” investment. In total, the sales team forecast that total sales across the “Sea Princess” and “Ovation of the Seas” will decline by $5 million annually.

11. The “Pacific Dream” is expected to increase Royal Oceania Cruises total annual fuel expenses by $2.33 million to $4 million. Based on forecasts of future fuel prices and depleting fuel resources, annual fuel expenses for the “Pacific Dream” will increase by 2% every following year. The current salary of the 200 crew members required to operate the “Pacific Dream” is expected to total $13,500,000 per annum. However, following the end of year 5 it is forecast that each crew member’s annual salary is expected to increase by $5,000. Further changes in salary are not expected in subsequent years.

12. Due to the introduction of the “Pacific Dream”, Royal Oceania Cruises fixed costs (excluding headquarter costs) will increase by $1.75 million to $3.90 million per year. Royal Oceania Cruises headquarters is based in Tower One in Barangaroo. Annual headquarter costs total $3.66 million and such costs are not expected to increase in the foreseeable future. Taylor wants to allocate an equal share of the annual total headquarter costs for Royal Oceania Cruises across the “Pacific Dream”, “Sea Princess” and “Ovation of the Seas”.

13. Without “Pacific Dream” Royal Oceania Cruises require 90 tonnes of food and drink per year where each kilogram costs $28/kg for all cruise ships. The introduction of the “Pacific Dream” will result in bulk buying discounts for Royal Oceania Cruises. With “Pacific Dream” each kilogram of food and drink costs $25/kg for all cruise ships, this brings the total food and drink for Royal Oceania Cruises to 170 tonnes per year, meaning 80 tonnes of food and drink is required annually for “Pacific Dream”.

14. All of the cruise ships in the Royal Oceania fleet dock at the Overseas Passenger Terminal in Circular Quay. “Pacific Dream” will also dock at Circular Quay and will increase the Royal Oceania Cruises total annual port charges from $2.30 million to $2.87 million. When cruise ships dock in Circular Quay they obstruct views of the Opera House and Harbour Bridge, which results in reduced sales for surrounding restaurants (e.g., Aria, Quay, Bennelong). As a result, Royal Oceania Cruises pays these restaurants $40,000 p.a. to account for the loss in sales, this figure is expected to increase by $20,000 per annum with the introduction of “Pacific Dream”.

15. The “Pacific Dream” cruise ship will mean that the Royal Oceania Cruises call centre will be relocated from North Sydney to a larger facility in Heathcote. The rent expense for the North Sydney centre was $150,000 per annum and the rent expense for the Heathcote centre is $87,000 per annum. The larger call centre is required to fit additional staff members which will increase annual call centre salary expenses by $50,000 to $100,000.

16. During a meeting involving Hugh, Taylor, and the accounting and sales team, it is agreed that the plan is to sell “Pacific Dream” in 10 years’ time. To maximise the selling price of the “Pacific Dream” in ten years’ time, a regular three-year refurbishment is required, the first refurbishment occurs at the end of year 3 and costs $1.66 million, the second refurbishment costs $2.88 million and the third refurbishment costs $1.96 million. The refurbishments take place during breaks between cruise journeys, and as a result there is no impact upon the operating revenues and other expenses associated with the operation of the “Pacific Dream”. The refurbishments keep the cruise ship equipped with the latest restaurants, shops and entertainment. The refurbishment costs can be claimed as a tax deduction.

17. In addition to the major refurbishment costs, the “Pacific Dream” will require annual minor maintenance expenses of $0.96 million. If Royal Oceania Cruises proceed with the “Pacific Dream” project the spare parts inventory must be increased by $1.33 million from existing levels and purchased immediately. The annual maintenance of $0.96 million includes the cost of replenishing the inventory required to operate the “Pacific Dream”. Royal Oceania Cruises will also have to purchase additional insurance for the “Pacific Dream” at $2.56 million per annum (hint: assume that cash flows relating to insurance occur at the end of the year).

18. After a conference call with your contact (Mick Jagger) at the Global Maritime Agency, you learn that if regular three-year major refurbishments are made to the “Pacific Dream” then in 10 years’ time the “Pacific Dream” will have an estimated market value of $22.90 million. Otherwise, the value of the “Pacific Dream” in 10 years’ time will be $15 million. In either case, the special thruster will have an estimated market value of $1.11 million in 10 years’ time.

19. The Australian Tax Office (ATO) has recently released updates to its tax rulings. Under taxation ruling 2000/18 “Passenger ships”, the effective life of cruise ships like the “Pacific Dream” qualify for an effective life of 30 years. According to the ATO, the special thruster has an effective life of 6 years and the noise cancelling device has a depreciation rate of 20% per year.

20. In order to pay for the “Pacific Dream”, Royal Oceania cruises will pay $4 million in cash and the rest using debt which will be obtained from the Commonwealth Bank. Roger emails you an amortisation schedule which shows you that the principal and interest payments on the debt are $3.75 million annually, the schedule also shows that the debt will be fully repaid by the end of the project’s life. In consultation with Wallaby Consultants, advisors at the Commonwealth Bank, Hugh and Taylor, the required return for “Pacific Dream” is 12.5%.

The Amazfit X Smartwatch with curved AMOLED screen and button free design by Huami (NYSE: HMI) finally went on sale by crowdfunding on Indiegogo after making its name known by the world at IFA 2019. The crowdfunding price starts at USD 149, comparably an appealing order for the first biters such as business, fitness elites and Amazfit fans.  

Amazfit X Curved Display, Titanium Unibody and Button Free Design

Featuring a button-free design with a 2.07-inch curved AMOLED display, titanium alloy uni-body, the Huami self-developed BioTracker™ PPG optical sensor, as well as a 7-day uninterrupted usage on a single charge^[1], the futuristic Amazfit X is setting a new trend in smart wearables industry since its launch in Berlin.

Big Curved AMOLED Display, Making Your Wearable Look Distinguished

Designed for business avant-garde, Amazfit X dedicates to surpassing the mainstream smartwatch functionalities. The cutting-edge Amazfit X features 2.07-inch AMOLED display curved at 92° curvatures to fit your wrist, while offering much more screen space. A 3-segment-motherboard connected through flexible circuit in order to adapt the device's curves. A friendly larger visionary experience for Apps can be organized to your daily use, and less scrolling to find what you need. The 326ppi HD resolution display shows 100% NTSC color saturation and peak screen brightness of 400 nits.

Fine Glass and Titanium Unibody, and the Button Free Experience at the First Touch

The Amazfit X features a minimalistic design that does away with buttons and watch crowns that can dig on your wrist. Instead this watch stays sleek with a pressure button that helps you access everything with a press of your finger.

Thanks to a force-sensing sensor, the first noteworthy design of Amazfit X is titanium alloy unibody without any buttons. Users can complete the operation through the force-sensing button on the right side of the watch. It responds to your touch with textured, natural vibrations, so your fingertips know they're in control.

The Amazfit X is made with a level of precision you'd expect from a finely crafted watch. The curved screen cover glass is required to be heated at 700°C. Then a 6-step bending process should be taken until the Amazfit X reaches a 92° super arc that wraps comfortably around your wrist. The TC4 titanium alloy, with high strength and excellent corrosion resistance, is used as material in aerospace with the purpose of weight reduction. Amazift X makes the metal with glass together in less than 39g with short fluoro-rubber strap, despite complicated high making-cost in the process.

Resonating with global pioneers to further activate a business and fitness lifestyle, 3D Corning Gorilla glass and anti-fingerprint coating makes Amazfit X scratch resistant and easy to keep clean, and more exquisite watch faces can be downloaded from Amazfit App.

Stress Level and More Precise Monitoring for the Health Driven Goal

Amazfit X is designed with the reliable heart rate monitoring system, reaching your fitness goals and health management effectively. Equipped with Huami self-developed BioTracker™ PPG optical sensor, Amazfit X supports high-precision 24/7 continuous heart rate measurement with heart rate zones.

Amazfit X can also detect stress 4 level when the user is feeling tense through heart rate variability. It monitors your heart rate throughout the day and will give you updates on where your stress levels are: Relaxed, Normal, Medium, and High.

Amazfit X brings the PAI™ Health technology for the elite users. The PAI incorporates the algorithm that can motivate you to move with meaning with a simple goal that is personalized to each user's experience. It tracks all of your activity based on your heart rate data and translates it into an easy-to-understand score giving you the health effects of your exercise. It is a single actionable metric, which can make sense of heart rate and an easy way to see if you're doing enough exercise to stay healthy. According to the HUNT Fitness Study^[2] research results, keeping your PAI value above 100 will help reduce the risk of death by cardiovascular disease and increase life expectancy.

Besides PAI, Amazfit X featured with SpO2 sensor which can measure oxygen levels or oxygen saturation in your blood^[3]. And the 6-axis IMU, along with the curved body can track your data more precisely.

Complete with a GPS+GLONASS dual-satellite positioning system, you can easily track your route even when you travel abroad through Amazfit X.

7 Days for A Single Charge and Just Fit All the Ways You Move

This innovative Amazfit X features a 200mAh curved lithium battery lasts 7-days on a single charge^[4].

Amazfit X provides 9 sports modes that support outdoor running, walking, outdoor cycling, indoor cycling, open water swimming, pool swimming, elliptical trainer, indoor fitness and treadmill. Its 5ATM water resistant^[5] design also allows you to advance activities under water, keeping track of your performance in open water swimming or triathlons is made easier than ever.

Amazfit X looks like a band but is a real smartwatch. When connected to the smartphone, it supports notifications push from SMS messages, emails, calendar and all contents will be displayed on the display. Built-in apps are also available for easy access. It allows Bluetooth music control to directly operate watch while exercising without having to pull out your phone.

Pricing and availability

Amazfit X will be available in 28^th April . Suggested crowdfunding price starts at USD149.

Huami Amazfit X Smartwatch will be available globally without shipping fee. Limited super early bird is offered. The crowdfunding prices will be the lowest, and will soon go up after the campaign end.

Specifications

Question 1:

Crowdfunding is not only a profitable and beneficial way of generating funds for the company but can also be a useful promotion tool. What role do you think crowdfunding has played in the promotion of Amazfit – X. How does this approach relate to the promotion mix ?

Question 2:

Evaluate the current Pricing Strategy used by Amazfit-X. What do you think might have been the main considerations in setting the current price for Amazfit-X?

Question 3:

Considering that product characteristics have a considerable influence on adoption rates for new products, what product characteristics of Amazfit-X will promote or hinder its adoption? Make recommendation to the company to address the later.

1 Mercer Farms, Inc. As a junior analyst for Mercer Farms (Mercer), you were looking forward to an exciting career. You imagined assignments evaluating new technologies in far-off, exotic locations. As your bus traveled through the heartland of U.S. cornfields, you wondered about your job choice. Your background research, however, has changed your first impression of being assigned to an agricultural consulting engagement. You have discovered that farming is no longer a small potatoes operation. Perhaps, given the changes in the size of farming businesses in the U.S., agribusiness might be a lucrative consulting specialty. Mercer Farms Inc. (hereinafter referred to as Mercer Farms) is an old, family-owned business that has acquired various smaller farms over the years and has managed to maintain a profitable business enterprise through economies of scale. So far, the firm has specialized in the production of Grade AA yellow corn. Michael Bell, Operations Manager for Mercer Farms, has proposed replacing the current production of AA yellow corn with a new genetically modified (GM) variety of yellow corn (see Exhibit 1). Allen Mercer, CEO of Mercer Farms, engaged Mercer to evaluate Mr. Bell’s proposal and make recommendations. The firm’s research staff has pulled together information regarding the new product (see Exhibit 2) and the past two year’s income statements for Mercer Farms (see Exhibit 3). Your team has a few days to review the materials and prepare its preliminary analysis before meeting with the client. Required Prepare a business report to the client setting forth your team’s analysis and recommendations. In the report, address any risks associated with the recommendations. The team will also deliver its analysis and recommendations in a formal, personal presentation to the client. You may wish to review microeconomics concepts 1, 2, and 4; management accounting concept 8, and statistics concept 8. The Exhibits follow on the next pages.  Copyright 2009, Richard Tontz Thanks to Dr. Janice Bell for her assistance with the accounting aspects of the case. 2 Exhibit 1: Bell Proposal Letter Mercer Farms Inc. 17342 Mendow Circle, San Jose, CA 95129 Phone (408) 555-CORN January 10, 2009 Mr. Allen Mercer 124 East Ocean Ave. Santa Barbara, CA 93105 Dear Uncle Allen: As we discussed last fall, I have been looking into switching the company’s output from Grade AA yellow corn to a new strain of Genetically Modified (GM) yellow corn. I think you will be pleased with the following results of my analysis and the potential impact on our profitability. Output and Revenue Analysis: Based on our output from last year, if we plant Grade AA yellow corn again we can anticipate: Total Revenue (TR) = $ 1,450,000 (290,000 x $ 5.00) If we switch to the new genetically modified (GM) yellow corn: Total Revenue (TR) = $ 2,653,750 (482,500 x $ 5.50) As you can see, our output would increase and the GM yellow corn is of somewhat higher quality generating a higher anticipated price. This change would increase output by 192,500 bushels or 66% and increase TR by $ 1,203,750. Cost Analysis: Our average production cost was $ 2.48 per AA yellow corn bushel this past year. We estimate it will be $ 2.70 per AA yellow corn bushel this year. If we switch to GM yellow corn, our processing, overhead and planting expenses will not change, but the increased price of GM yellow corn seed will raise average production cost per bushel to $ 3.25. AA yellow corn Cost: 290,000 x $ 2.70 = $ 783,000. GM yellow corn Cost: 482,500 x $ 3.25 = $ 1,568,125. Increased Cost: $ 785,125 Profit Analysis: Increased total revenue = $ 1,203,750 Increased cost = $ 785,125 Increased profit: $ 418,625 Total Profit: $ 1,085,625 I hope you are as excited about this potential as I am. There has been some bad press about the genetically modified products in Europe, but I think that’s just the usual fear of new technologies. Sincerely; 3 Michael Michael P. Bell Operations Manager Mercer Farms Inc. Exhibit 2: Estimated Production by Farm Projected Year 2009: Production Summary for AA Yellow Corn by Sub-division: 1. Adams: 200 acres 20,000 bushels (100 per acre) 2. Baker: 500 acres 50,000 bushels (100 per acre) 3. Chase: 300 acres 60,000 bushels (200 per acre) 4. Dotson: 800 acres 160,000 bushels (200 per acre) 5. Mercer Farms Total: 1,800 acres 290,000 bushels AA yellow corn Projected Year 2009: Production Summary for GM Yellow Corn by Sub-division: 1. Adams: 200 acres 22,000 bushels (110 per acre) 2. Baker: 500 acres 50,500 bushels (101 per acre) 3. Chase: 300 acres 90,000 bushels (300 per acre) 4. Dotson: 800 acres 320,000 bushels (400 per acre) 5. Mercer Farms Total: 1,800 acres 482,500 bushels GM yellow corn Exhibit 3: Mercer Farms: Income for the Two Years Preceding 2009 1st Prior Year 2nd Prior Year (Last Year) (Year Before Last) Sales and Changes in Value of Crop Inventories $1,254,250 $1,160,181 Expenses and Losses Cost of Production 720,360 677,138 Selling, General, and Administrative Expenses 313,200 269,352 Technological Expenses 93,960 79,866 Other 11,745 10,336 Income From Continuing Operations Before Taxes 114,985 123,489 Income Taxes 32,196 34,577 Net Income $82,789 $88,912 Basic Earnings Per Share $0.32 $0.35 4 Exhibit 4: Marketing and Price Analysis Mercer Farms Group - Marketing Division Background: The Marketing Division was asked to analyze the expected prices and probabilities for AA yellow corn and Genetically Modified (GM) yellow corn for the summer harvest. Analysis: Estimating the future demand and supply of the commodity derives the projected market prices. The factors considered in the demand portion of this analysis include population growth, consumer preferences, and income. Relative prices of substitutes and complements were considered as static or unchanged. The supply portion of the analysis considered current input prices, existing technology, existing stocks on hand (domestic and foreign), and government policies (domestic and foreign). Exchange rate estimates were taken from our International Division’s current forecast. Price Forecast: AA Yellow Corn (domestic): Price per bushel: $ 5.00. GM Yellow Corn (domestic): Two alternative price scenarios should be considered. The demand acceptance of GM products in general is in question. There have been numerous reviews by governments all over the world, but particularly in Europe.  Scenario #1: Price of GM Yellow Corn (domestic): $ 5.50. Europe adopts few restrictions on the importation of GM products, but prohibits European production.  Scenario #2: Price of GM Yellow Corn (domestic): $ 4.70. Europe adopts heavy restrictions on the importation of GM products. At this time, we consider the probabilities to be: Scenario #1: 60%; and Scenario #2: 40%. The futures markets will have determined which price will occur before it is time to plant the summer crop.

Case Study - Aussie Airlines and the Global Pandemic

Your Role

1. Your firm, DUA, has been the auditor of Aussie Airlines for the past three years.

2. You are the audit team manager and you are about to commence the risk assessment phase, as well as the risk response work plan for the audit of AA’s financial statements for the year ending 30th June 2020.

Context

1. Aussie Airlines (AA) is a large listed Australian airline and has been operating for more than fifty years.

2. In recent years, under pressure to improve profitability as fuel costs rose, the airline successfully undertook a comprehensive cost cutting and business efficiency drive, which returned it to profit three years ago. According to the CEO and Chairperson, Andrew Norris, “the operations of AA are now as lean as they could be; we have squeezed the fruit dry.”

3. In March 2020, the World Health Organisation declared a pandemic, people and governments have responded, and the volume of global business-related and leisure-related air travel has fallen by 95%.

4. It is not known how long the pandemic will last, how long restrictions on air travel will last—most guesses range from two to twelve months, a small minority fear it will be worse—and the Australian government has not yet announced how it’s economic response to the pandemic will specifically help the airline industry.

5. AA has ‘temporarily’ laid off 90% of its workforce, including cabin staff, pilots, and 95% of its airport ground crew. There are murmurs about a class action by employees if they do not receive adequate payments while they are laid off. Some fear the change may be permanent.

6. The company is not taking bookings from customers; the AA website says “for the foreseeable future”.

7. The CEO has told the press that while the current situation represents “an existential crisis”, he is absolutely confident that AA will get through it and come out stronger the other side.

8. The Chief Financial Officer, Clara Major, stopped you in the corridor to say hello and offered you these words: “Look, everything might seem dire but we have it in hand. We will be here this time next year, so keep that in mind.”

9. As expected, you have been offered access to any records and to people inside and outside the AA organisation that you feel will be necessary to complete your risk assessment and interim work.

10. You are also confident that AA’s internal controls remain very strong, although you do not know if or how they have been changed/enhanced to respond to the effects of the global pandemic on AA.

Forecast Financial Statements

On your second day at AA’s head office, you have been given the forecast financial statements for the full year to 30 June 2020, as well as the previous two years’ audited results.

Aussie Airlines: Consolidated Income Statement (Selected) Year Ended 30th June
Currency AUD Millions (figures are rounded)

Aussie Airlines: Consolidated Balance Sheet (Selected) As at 30th June
Currency AUD Millions (figures are rounded)

Notes:

You have received additional information from AA’s Chief Financial Officer and from your initial review of AA Board minutes:

1. Not all 2020 forecast Income Statements line items and Balance Sheet balances have been finalised at this point, though they are best guesses.

2. Intangible Assets constitute goodwill relating to an international airline business AA acquired five years ago. This business mainly services South East Asia, China, and Polynesia destinations.

3. Property, Plant & Equipment consists primarily of aircraft, aircraft engines, and aircraft parts.

4. Revenue Received in Advance relates to customers’ prepaid flights.

5. Aircraft are leased from third parties. A reduction in monthly payments and a restructuring of the lease terms are under negotiation but, so far, nothing has been agreed with the aircraft makers/lessors.

6. AA is currently negotiating with its bank to receive a grace period for repayment of short term and long-term debt as the company is currently in breach of its debt covenants per the loan agreement. If no deal is reached, this debt becomes due and payable on August 31st 2020.

7. AA is seeking a financial bail-out package from the government of $7million to fund its ongoing operating costs for 12 months while its fleet of aircraft is grounded. The Federal government has made positive noises about the request but has not yet committed to support the request and has told AA that it will take at least two months to reach a decision.

8. Under the current conditions, the CFO’s papers to the AA Board estimate that cash coming in from operations will, on average, be $0.5million per month while unavoidable operating costs are estimated to be $0.8million per month.

9. AA has an unused line of credit of $2.5million provided by its banking syndicate. It can access this money to fund its cash requirements. Currently, there are no other sources of cash beyond this line of credit.

QUESTION

1. Assuming that you have completed the work in previous questions and determined that AA is a going concern, select one material account from AA’s Balance Sheet and one material account from the Income Statement and prepare a brief plan for auditing each account. Give particular attention to the following:

   1. An assessment of the audit risk for the account, given the information in this case study and your assumptions.

   2. The relevant/significant audit assertions for this account.

   3. Name two controls that you would expect management to implement for this account. How would you test these controls.

   4. Describe two substantive testing procedures that you would perform in relation to this account to address the relevant/significant assertions.

NOTE: please refer to previous questions asked and answer them first please