READ THE ARTICLE QUESTIONS ARE AT THE BOTTOM

In a recent T-Mobile commercial, one black-hatted outlaw breaks with the rest of his gang. “Aw,” he says, “I can’t do this anymore.” The message is not subtle. Yes, we’ve all been robbing you for years, declares T-Mobile, but at least we’ve decided we’re done with it. There’s more than rhetoric here: T-Mobile recently broke with longstanding industry norms and abandoned termination fees, sneaky overage charges, and other unfriendly practices.

Although T-Mobile’s decision is welcome news for consumers, it doesn’t change the fact that the old extortions remained in place for about fifteen years, and that they remain in place for the vast majority of Americans still trapped in contracts with Verizon, AT&T, and Sprint. And it sheds light on a long-standing problem with how we think about and treat anticompetitive practices in the United States. Our current approach, focussed near-exclusively on monopoly, fails to address the serious problems posed by highly concentrated industries.

If a monopolist did what the wireless carriers did as a group, neither the public nor government would stand for it. For our scrutiny and regulation of monopolists is well established—just ask Microsoft or the old AT&T. But when three or four firms pursue identical practices, we say that the market is “competitive” and everything is fine. To state the obvious, when companies act in parallel, the consumer is in the same position as if he were dealing with just one big firm. There is, in short, a major blind spot in our nation’s oversight of private power, one that affects both consumers and competition.

This blind spot is of particular significance during an age when oligopolies, not monopolies, rule. Consider Barry Lynn’s 2011 book, “Cornered,” which carefully detailed the rising concentration and consolidation of nearly every American industry since the nineteen-eighties. He found that dominance by two or three firms “is not the exception in the United States, but increasingly the rule.” Consumers, easily misled by product labelling, often don’t even notice that products like sunglasses, pet food, or numerous others come from just a few giants. For example, while drugstores seem to offer unlimited choices in toothpaste, just two firms, Procter & Gamble and Colgate-Palmolive, control more than eighty per cent of the market (including seemingly independent brands like Tom’s of Maine).

The press confuses oligopoly and monopoly with some regularity. The Atlanticran a recent infographic titled “The Return of the Monopoly,” describing rising concentration in airlines, grocery sales, music, and other industries. With the exception of Intel in computer chips, none of the industries described, however, was actually a monopoly—all were oligopolies. So while The Atlantic is right about what’s happening, it sounds the wrong alarm. We know how to fight monopolies, but few seem riled at “The Return of the Oligopoly.”

Things were not always thus. Back in the mid-century, the Justice Department went after oligopolistic cartels in the tobacco industry and Hollywood with the same vigor it chased Standard Oil, the quintessential monopoly trust. In the late nineteen-seventies, another high point of enforcement, oligopolies were investigated by the Federal Trade Commission, and during that era Richard Posner, then a professor at Stanford Law School, went as far as to argue that when firms maintain the same prices, even without a smoke-filled-room agreement, they ought to be considered members of a price-fixing conspiracy. (By this logic, the Delta and US Airways shuttles between New York and Washington, D.C., would probably be price-fixers, since their prices do vary by how far in advance you buy, but are always identical.)

Like many things from the nineteen-seventies, the treatment of oligopoly was subject to an enormous backlash in the nineteen-eighties and nineteen-nineties. (Posner actually helped lead the backlash.) And with some justification: some of the cases were quite bad, like a long-forgotten federal war on the breakfast-cereal industry. Firms shouldn’t be penalized for practices that are parallel but not actually harmful, nor for mere “parallel pricing.” An interpretation of law that makes nearly every gas-station owner into a felon is questionable.

But just as the nineteen-seventies went too far, the reaction to the nineteen-seventies has also gone too far. As part of a general retreat from prosecution of all but the most extreme antitrust violations, the United States has nowadays nearly abandoned scrutiny of oligopoly behavior, leaving consumers undefended. That’s a problem, because oligopolies do an awful lot that’s troubling.

Consider “parallel exclusion,” or efforts by an entire industry to keep out would-be newcomers, a pervasive problem. Over the eighties and nineties, despite “deregulation,” the established airlines like American and United managed to keep their upstart competitors out of important business routes by collectively controlling the “slots” at New York, Chicago, and Washington airports. Visa and MasterCard spent the nineties trying to stop American Express from getting into the credit-card industry, by creating parallel policies (“exclusionary rules”) and blacklisting any bank that might dare deal with AmEx. It was only thanks to the happenstance that both put their exclusions in writing that the Justice Department was able to do anything about the problem.

The rise of the American oligopoly makes it an important time to reëxamine how antitrust enforcers and regulators think about concentrated industries. Here’s a simple proposal: when members of a concentrated industry act in parallel, their conduct should be treated like that of a hypothetical monopoly. Of course, that doesn’t make anything necessarily illegal, but abusive or anticompetitive conduct shouldn’t get a free pass just because there are three companies involved instead of one. (I have co-authored a detailed academic paper, with former New York antitrust bureau chief Scott Hemphill, about how this should play out.)

Meanwhile, the idea that an industry is nominally “competitive” should not provide excessive protection from regulatory oversight. Consider, again, the wireless carriers. The Federal Communications Commission is supposed to insure that the carriers, who are leaseholders on public spectrum, use that resource to serve “the public interest, convenience, and necessity.” Unfortunately, the agency, for more than a decade, has let the industry get away with all nature of monkey business, from termination fees through “guess your minutes” pricing plans and subsidization schemes. All this has been allowed under the theory that the industry is “competitive” and therefore not in need of oversight. But, to quote T-Mobile, “[t]his is an industry filled with ridiculously confusing contracts, limits on how much data you can use or when you can upgrade, and monthly bills that make little sense.” The F.C.C. could have done something about this years ago; the fact that it took a member of the industry to call out more than a decade’s abuse of consumers amounts to a serious failure on the part of the F.C.C.

Exploitation of concentrated private power is not a problem that will ever go away. In the United States, it has been a concern since the framing: the original Tea Party was actually a protest against a state-sponsored tea monopoly. The challenge is that power constantly mutates and assumes new forms. That’s why, whether overseeing private or public power, it’s important not to become fixated on form, but to attend to the realities that face consumers and citizens.

Illustration by Marcos Chin.

The article The Oligopoly Problem argued that oligopolies fall through the cracks of these regulations and leave consumers unprotected from harmful business practices where industries are highly concentrated. Read the article and respond to the following

1. What are examples of firms in an oligopolistic market that abuse their power? Explain how they abuse their power and describe the impact on consumers.

2. Do you agree with the author’s feelings about increased government oversight of such industries? Why or why not?

70. You've noticed that your client's right scapula wings while he performs the lowering phase of a push-up. Which of the following correctives would most likely benefit him?

1. Upper trapezius stretch
2. Posterior stability hold with head rotation
3. Hip hinge with mini-band
4. Plank roll

71. The downward dog corrective has been helping your client improve his dumbbell shoulder press technique. Over the weekend he strained his right wrist and it still bothers him. Which of the following steps should you take?

1. Have him attempt the downward dog and rate his wrist pain on a scale of 1-10
2. Choose a completely different corrective
3. Perform the downward dog with his elbows resting on the floor
4. None of the above

72. Research demonstrates a link between weak hip abductors and which of the following?

1. Iliotibial band syndrome (ITBS)
2. Strong hip flexion strength
3. Poor hip extension strength
4. None of the above

73. When your client performs the sphinx with reach exercise, why is it important to avoid a shoulder shrug in the support arm?

1. To minimize serratus anterior activation
2. To increase activation of the abdominals
3. To maximize serratus anterior activation
4. To increase activation of the upper trapezius

74. When your client performs the scapular activation drill with the arm held at an upward angle, which of the following positions is most appropriate?

1. A shoulder position far from a position of pain
2. A shoulder position at the first point of pain
3. A shoulder position at the maximum pain point
4. A shoulder position just short of pain

75. Why is it important to avoid telling your client that you're performing a postural assessment?

1. He/she will inevitably stand with better posture than normal
2. He/she will feel embarrassed and will not want to improve posture
3. To protect yourself against a lawsuit
4. None of the above

76. During a sagittal plane view postural assessment you notice that your client stands with his knees slightly flexed. Which of the following does that indicate?

1. His hamstrings are overly active
2. His hip flexors are inhibited
3. He has sufficient glute strength
4. He is a quad dominant person

77. During a frontal plane view postural assessment you notice that your client's left shoulder appears to be elevated/shrugged at rest. Which of the following is the most appropriate corrective?

1. Stretch for the left rhomboids
2. Stretch for the left upper trapezius
3. Stretch for the right pectoralis minor
4. Stretch for the left pectoralis

78. A client that demonstrates upper crossed syndrome typically has weakness in which of the following muscle groups?

1. Levator scapulae
2. Upper trapezius
3. Deep neck flexors
4. Pectorals

79. Which of the following negative effects can occur if your client performs a stretch or lacrosse ball mobilization drill while being stressed and in a heightened state of pain?

1. It can engage the sympathetic nervous system and impair tissue relaxation
2. It can engage the sympathetic nervous system and promote tissue relaxation
3. It can engage the parasympathetic nervous system and impair tissue relaxation
4. It can engage the parasympathetic nervous system and promote tissue relaxation

80. Stiff suboccipital muscles can impair which of the following cervical movements?

1. Cervical extension
2. Cervical rotation
3. Cervical flexion
4. Both B and C

81. The overhead reach is recommended as one way to assess your client's shoulder function for which of the following reasons?

1. It's one of the least challenging movements for the shoulder complex
2. It doesn't require activation of the deltoid muscle
3. It's one of the most challenging movements for the shoulder complex
4. None of the above

82. If the chin tuck with lacrosse ball loosened the suboccipital muscles, which of the following cervical movements should have a greater range of motion?

1. Cervical rotation
2. Cervical flexion
3. Cervical extension
4. Both A and B

83. Research demonstrates that activating the deep neck flexors can produce which of the following benefits?

1. Less pain in the shoulders
2. Less pain in the neck
3. Less pain in the low back
4. Both A and B

84. Which of the following is a hypothesized benefit of foam roller exercises?

1. Increased overlap of the sarcomeres within muscle
2. Restored water balance in the muscles and fascia
3. Significant reduction in scar tissue
4. Increased protective tension in fascial tissues

85. What is the purpose of performing the t-spine rotation drill from the quadruped position with one supporting arm on the ground?

1. To promote activation of the pectoralis muscle in the supporting arm
2. To minimize t-spine extension
3. To promote activation of the serratus anterior in the supporting arm
4. To promote lumbar flexion

86. Your client was able to improve his exercise technique through the cues you gave him, without any change in load. This indicates an improvement in which of the following?

1. Strength
2. Mobility
3. Motor control
4. None of the above

87. Which muscles are typically overactive in the lower crossed syndrome that was described by Prof. Janda?

1. Hip flexors/thoracolumbar extensors
2. Hip extensors/hip flexors
3. Hip flexors/thoracolumbar flexors
4. Hip extensors/thoracolumbar extensors

88. Which of the following is a position your client should avoid while performing the cat-camel exercise?

1. Lumbar flexion
2. Posterior pelvic tilt
3. Lumbar extension
4. An extreme end-range of motion stretch

89. During the modified Thomas Test assessment for your client's right hip, she demonstrates hip abduction in the resting position. Which of the following does this indicate?

1. Excessive length of the right tensor fascia latae
2. Excessive length of the right iliopsoas
3. Shortening/stiffness of the right tensor fascia latae
4. Shortening/stiffness of the right rectus femoris

90. Which muscle group is the hip thrust exercise intended to strengthen?

1. Peroneals
2. Glutes
3. Hip flexors
4. Abdominals

91. Research demonstrates a relationship between knee pain and which of the following?

1. Strong hip abductors
2. Weak abdominals
3. Stiff hamstrings
4. Weak hip abductors

92. Knee valgus is commonly associated with which of the following compensations?

1. Excessive pronation of the feet
2. Weak abdominals
3. Stiff hamstrings
4. Weak hip abductors

93. Your client, William, sits for many hours each day at his computer. Which of the following compensations are you likely to observe?

1. Posterior pelvic tilt
2. Shortened hip flexors
3. Both A and B
4. None of the above

94. Your client is a professional basketball player with a 40" vertical jump and he experiences no low back or knee pain. You assess his hamstring mobility at the popliteal angle and determine that it's less than normal. What should you do?

1. Recommend exercises to strengthen his hip flexors
2. Leave his hamstrings alone
3. Recommend static stretches for his hamstrings
4. None of the above

95. During a sagittal plane postural assessment you observe anteriorly rotated shoulders. Which of the following correctives is most likely to benefit the client?

1. Stretches for the middle trapezius
2. Strengthening exercises for the pectorals
3. Stretches for the rhomboids
4. Stretches for the pectorals

96. When your client lacks dorsiflexion, which of the following compensations is common to observe during a squat?

1. Poor hip extension
2. Knee valgus
3. Excessive anterior trunk shift
4. Excessive lumbar lordosis

97. Maximal contraction of the hip extensors results in relaxation of the hip flexors. This is an example of what neural arrangement?

1. Reciprocal innervation
2. Stretch reflex
3. Reciprocal activation
4. None of the above

98. Activating the hip abductors has been shown to increase mobility of which of the following muscle groups?

1. Lats
2. Abdominals
3. Calves
4. Hamstrings

99. Iliotibial band syndrome (ITBS) is caused by which of the following?

1. Strong hip extensors
2. Stiff hamstrings
3. An overuse injury of the IT band
4. Excessive strength of the hip abductors

100. What is the optimal depth you should train your client to squat from without pain?

1. The depth required for the client's life or sport
2. A half squat since anything lower isn't necessary
3. The height of a standard chair
4. A full squat where the hamstrings touch the calves

Write a member function that deletes all repetitions from the bag. In your implementation, assume that items can be compared for equality using ==. Use the following header for the function:

void remove_repetitions() Here is a brief outline of an algorithm:

- A node pointer p steps through the bag

- For each Item, define a new pointer q equal to p

- While the q is not the last Item in the bag ◼ If the next Item has data equal to the data in p, remove the next Item ◼ Otherwise move q to the next Item in the bag

This is what I have so far, the issue being it doesn't delete properly and does not print out the list. Thanks in advance!

template <class Item>
void bag<Item>::remove_repetitions(){
    std::cout<<"Working progress"<<std::endl;
    node<Item> *p;
    //node<Item> *temp;
    p=head_ptr;
    while(p!=NULL && p->link()!=NULL){
        node<Item> *q;
        node<Item> *target;
        for(q=p->link(); q!=NULL; q=q->link()){
            if(p->data()==q->data()){
                target = q;
                q->set_link(q->link());
                delete(target);
            }
        }
        p=p->link();
    }
}

//The main file

#include <cstdlib>
#include <iostream>
#include <set>
#include <algorithm>
#include "node2.h"
#include "bag5.h"

using namespace std;

// PROTOTYPE for a function used by this demonstration program
template <class Item, class SizeType, class MessageType>
void get_items(bag<Item>& collection, SizeType n, MessageType description)
// Postcondition: The string description has been written as a prompt to the
// screen. Then n items have been read from cin and added to the collection.
// Library facilities used: iostream, bag4.h
{
    Item user_input; // An item typed by the program's user
    SizeType i;

    cout << "Please type " << n << " " << description;
    cout << ", separated by spaces.\n";
    cout << "Press the <return> key after the final entry:\n";
    for (i = 1; i <= n; ++i)
    {
        cin >> user_input;
        collection.insert(user_input);
    }
    cout << endl;
}

int main()
{
    //demonstrate bag template class
    bag<int> bag_of_int;
    bag<string> bag_of_string;

    bag_of_int.insert(3);
    bag_of_string.insert("hello");
    bag_of_string.insert("goodbye");
    bag_of_string.insert("auf wiedersehen");
    bag_of_string.insert("goodbye");
    bag_of_string.insert("hello");
    bag_of_string.insert("goodbye");

    cout << "count of goodbye: " << bag_of_string.count("goodbye") << endl;
    cout << "count of guten morgen: " << bag_of_string.count("guten morgen") << endl;
    cout << "count of 3: " << bag_of_int.count(3) << endl;
  

    for(bag<string>::iterator cursor = bag_of_string.begin(); cursor != bag_of_string.end(); ++cursor)
        cout<<*cursor<< " ";
    cout<<endl;
  
   bag<int> bag_int;
   bag_int.insert (7);
   bag_int.insert (6);
   bag_int.insert (5);
   bag_int.insert (4);
   bag_int.insert (5);
   bag_int.insert (3);
   bag_int.insert (2);
   bag_int.insert (1);
   bag_int.insert (1);
   bag_int.insert (5);
   bag_int.print_value_range (5,20);
   bag_int.remove_repetitions();
   bag_int.print_value_range (5,20);
   return EXIT_SUCCESS;
  
}

#ifndef NODE2_H
#define NODE2_H

//the node header file with template implementations
#include <cstdlib>   // Provides NULL and size_t
#include <iterator> // Provides iterator and forward_iterator_tag

template <class Item>
class node
{
public:
        // TYPEDEF
        typedef Item value_type;
        // CONSTRUCTOR
        node(const Item& init_data=Item( ), node* init_link=NULL)
            { data_field = init_data; link_field = init_link; }
        // MODIFICATION MEMBER FUNCTIONS
        Item& data( ) { return data_field; }
        node* link( ) { return link_field; }
        void set_data(const Item& new_data) { data_field = new_data; }
        void set_link(node* new_link) { link_field = new_link; }
        // CONST MEMBER FUNCTIONS
        const Item& data( ) const { return data_field; }
        const node* link( ) const { return link_field; }
private:
        Item data_field;
        node *link_field;
};

// FUNCTIONS to manipulate a linked list:
template <class Item>
void list_clear(node<Item>*& head_ptr);

template <class Item>
void list_copy
     (const node<Item>* source_ptr, node<Item>*& head_ptr, node<Item>*& tail_ptr);

template <class Item>
void list_head_insert(node<Item>*& head_ptr, const Item& entry);

template <class Item>
void list_head_remove(node<Item>*& head_ptr);

template <class Item>
void list_insert(node<Item>* previous_ptr, const Item& entry);

template <class Item>
std::size_t list_length(const node<Item>* head_ptr);

template <class NodePtr, class SizeType>
NodePtr list_locate(NodePtr head_ptr, SizeType position);

template <class Item>
void list_remove(node<Item>* previous_ptr);

template <class NodePtr, class Item>
NodePtr list_search(NodePtr head_ptr, const Item& target);

// FORWARD ITERATORS to step through the nodes of a linked list
// A node_iterator of can change the underlying linked list through the
// * operator, so it may not be used with a const node. The
// node_const_iterator cannot change the underlying linked list
// through the * operator, so it may be used with a const node.
// WARNING:
// This classes use std::iterator as its base class;
// Older compilers that do not support the std::iterator class can
// delete everything after the word iterator in the second line:

template <class Item>
class node_iterator : public std::iterator<std::forward_iterator_tag, Item>
{
public:
       node_iterator(node<Item>* initial = NULL){ current = initial; }
      
        Item& operator *( ) const { return current->data( ); }
      
        node_iterator& operator ++( ) // Prefix ++
        {
       current = current->link( );
       return *this;
        }
      
        node_iterator operator ++(int) // Postfix ++
        {
       node_iterator original(current);
       current = current->link( );
       return original;        
        }
      
        bool operator ==(const node_iterator other) const { return current == other.current; }
      
        bool operator !=(const node_iterator other) const { return current != other.current; }
private:
        node<Item>* current;
};

template <class Item>
class const_node_iterator : public std::iterator<std::forward_iterator_tag, const Item>
{
public:
       const_node_iterator(const node<Item>* initial = NULL) { current = initial; }
      
        const Item& operator *( ) const { return current->data( ); }
      
        const_node_iterator& operator ++( ) // Prefix ++
        {
       current = current->link( );
       return *this;
        }
      
        const_node_iterator operator ++(int) // Postfix ++
        {
       const_node_iterator original(current);
       current = current->link( );
       return original;
        }
      
        bool operator ==(const const_node_iterator other) const { return current == other.current; }
      
        bool operator !=(const const_node_iterator other) const { return current != other.current; }
private:
   const node<Item>* current;
};

#include "node2.template"

#endif // NODE2_H

#ifndef BAG5_H
#define BAG5_H

//bag header file with template
#include <cstdlib>   // Provides NULL and size_t and NULL
#include "node2.h"   // Provides node class

template <class Item>
class bag
{
public:
    // TYPEDEFS
   typedef std::size_t size_type;
        typedef Item value_type;
   typedef node_iterator<Item> iterator;
   typedef const_node_iterator<Item> const_iterator;
  
        // CONSTRUCTORS and DESTRUCTOR
        bag( );
        bag(const bag& source);
        ~bag( );
  
        // MODIFICATION MEMBER FUNCTIONS
        size_type erase(const Item& target);
        bool erase_one(const Item& target);
        void insert(const Item& entry);
        void operator +=(const bag& addend);
        void operator =(const bag& source);
        void print_value_range(const Item& x, const Item& y);
        void remove_repetitions(); //<-- Implement this!!!!!

        // CONST MEMBER FUNCTIONS
        size_type count(const Item& target) const;
        Item grab( ) const;
        size_type size( ) const { return many_nodes; }
  
   // FUNCTIONS TO PROVIDE ITERATORS
   iterator begin( )
        { return iterator(head_ptr); }
   const_iterator begin( ) const
        { return const_iterator(head_ptr); }
   iterator end( )
        { return iterator( ); } // Uses default constructor
   const_iterator end( ) const
        { return const_iterator( ); } // Uses default constructor

private:
        node<Item> *head_ptr;        // Head pointer for the list of items
        size_type many_nodes;        // Number of nodes on the list
};

// NONMEMBER functions for the bag
template <class Item>
bag<Item> operator +(const bag<Item>& b1, const bag<Item>& b2);

// The implementation of a template class must be included in its header file:
#include "bag5.template"

#endif // BAG5_H

1. What additional revenue and market opportunities might the Children party businesses investigate? (300 words please)

Case study:

The children’s party market is no jelly and trifling matter. “It’s a huge industry,” Tim Jenkins writes after his interview with Amanda Frolich from Amanda’s Action Kids. According to Frolich, “People spend an absolute fortune on their children’s birthday parties and fortunately the recession hasn’t affected our business.”

Like Paul Lindley, founder of Ella’s Kitchen, who used his parenting experience to launch a successful start-up, the party business with low barriers-to-entry sees numerous parent small business concepts. Michelle Hill incorporated her own party business called The Land of Make-Believe after spending hours creating props, themed food, and thinking up games suitable for her five-year-old son’s shared birthday party. This birthday spectacular experience helped her identify a clear gap in the market.

According to Tim Jenkins, a modest £50 party spend per UK child equates to an annual £35 million for a single school-year group. With £250 not untypical for an outsourced party service, it is easy to value the industry in the hundreds of millions.

The Land of Make-Believe party concepts include themes for cheerleaders, pirates, and fairies; cowboys and Indians; witches and wizards; Fairy Godmother, Teddy Bear picnic, glamor, and Grease the musical with Pink Ladies and T-Birds. Party concepts that tend to appeal more to boys, perhaps relying less on dressing up and dancing, include club energy sports, go-karting, football, army games, reptiles and pets, and fire engine–themed parties. Leisure venues also offer some stiff competition with swimming pool visits, laser quest, bowling, cinema, and restaurant visits also popular. Business Model Essentials Successful party concepts need a certain “wow” factor that is popular with the children, but also satisfies parents’ social needs too. Thus, it is important to also consider appropriate services for parents. Maslow’s hierarchy of needs framework perhaps offers some useful cues: shelter, comfort, psychological self-actualization—be that social linger space, self-service hot beverages, a glass of wine, or a latte bar. Party providers need to balance novelty with tried and tested formulas, perhaps offering evolving theme linkages that might anticipate new film releases, particularly sequels. They look to reduce parental hassle with branded off-the-shelf invitation cards and party bags that appeal particularly to cash-rich, often time-poor, parents. Entrepreneur.com neatly summarizes the party service offering: “You’ll plan the theme, provide costumes (unless guests arrive wearing their own), décor, food, favors and other assorted goodies, entertainment, and clean up afterward so parents can enjoy the festivities instead of running themselves ragged.”

The business model usually has relatively low start-up costs—a website and a telephone number will generally suffice. Wardrobe, props, and base supplies are not insignificant items and should be carefully considered in financial planning. There is some wide variation in the complexity of offerings in the sector from a light touch and self-contained entertainer magician or comedian whose equipment might be limited to a costume, a music system, and some props that fit into a large suitcase or two to the full-service party-planning-solution provider offering a venue, full catering, the all-important candle-covered cake, decorations, and party bags. Three core components are required for a successful party operation, namely venue, catering, and entertainment. Fixed costs can be kept low, but are dependent on avoiding the purchase of a specialized vehicle and/or long-term premises by using a client-arranged venue. Children’s party planning is clearly not a job for someone craving regular Monday through Friday, 9 a.m. to 5 p.m. hours. The ability to successfully interact with children and their parents, balancing controlled fun and calm authoritativeness, is particularly important but often rather taken for granted.

Marketing Communication Angles

A reputation for running successful parties is crucial to stimulate positive word-of-mouth referrals via parental social networks, accentuated by frequent contact at school pick-ups and drop-offs, but also on social media, and in particular parenting website communities such as mumsnet.com, which offers local listings, discussion boards, and advice-based content. In addition to successfully hosting enjoyable parties, which should drive positive referrals, a number of low-cost marketing activities can be implemented to help generate future bookings such as

• Arranging to share a business card or small colour flyer via the party bag that is often given to departing guests.
• Posting flyers at local clubs and church halls.
• Advertising in directories (telephone and web).
• Donating a free party to a school/community charity auction.
• Writing advertorial content accompanied by strong images in the local press (note parental permission and ethical issues around publishing photos of children).
• Creating a website and social media presence on key sites.
• Performing at community group/school events.
• Printing car stickers to build brand awareness and share web and telephone contacts.

Rugged Earth Adventures

One ex-army officer’s start-up inspiration led to a birthday party business centered on a military outdoor adventure theme. Having experimented with a number of temporary locations, the business finally settled on a large piece of underutilized agricultural land that comprises a mix of scrub land, combined with lines of commercially unsuccessful shrubs and trees.

The customer segment that this business proposition appeals to is mostly parents of boys—approximately 75 percent of participants are male, aged between 6 and 10 years. The children participate in a two-hour party that sees them run around outside in a natural environment. Issued with a foam bullet Nerf gun and protective glasses, participants are initially put into two teams, jungle versus desert, utilizing authentic British army terminology. A second game, the less frenetic snipers-and-seekers, is a form of hide-and-seek using realistic camouflage costumes. Then the young people are carefully instructed on how to thoroughly cook their own sausage, which is served as a hot dog, and the party concludes with toasted marshmallows. During one of the well-timed rest periods, a picnic basket is offered to the participants around the campfire with a variety of foods—an array that is low in chocolate and big on fruit and vegetables, which is appealing to parents, but it also includes less healthy but popular cupcakes and crisps. With overprotective parents, toy guns that fire projectiles, and an open fire, the safety briefing is taken very seriously and uses a highly authoritative army style. Children are regularly reminded about safe behavior requirements around the fire pit, particularly when wearing flammable costumes. Compliant use of safety glasses is paramount, with regular and direct reinforcement of the safety rules taking place. Hosting and supervising parents are made to feel at ease, provided with access to self-service hot and cold drinks and a place to perch. An informal satisfaction polling takes place just prior to the end around the campfire; positive responses are anticipated, thanks to a fairly simple formula that is well executed. The opportunity afforded to parents to relax while watching a group of children enjoy a totally stress-free afternoon is actually quite enjoyable. The business income comes predominantly from weekend parties, with the current site offering a capacity of three or possibly four parties per day. Each party can entertain 10 to 24 young people and costs between £120 and £295 (£12 to £20/child, excluding cake and party bags, which are £5 per child extra). Activity days, attractive for dual working parents, are also offered during the Easter and summer school holidays, priced at £26 to £34 per day. The revenue generated covers operating costs after a very short operational period.

1. Your organization routinely uses scripts, but as some employees have left, there are scripts that contain only command lines and no one is certain of their purpose.What steps can be taken to ensure a way for others to know the purpose of a script?

a. Create text documentation of scripts and use the scriptdoc command to organize and display the documentation.

b. Use the whatis command to create and save new documentation for scripts.

c. Requirethatscriptwritersplacecommentlinesinsidethescriptsusingthe#symbol

to begin each comment line.

d. Require that scripts be named using the descriptive sentence naming function in UNIX/Linux.

2. Which of the following shells enables the use of scripts? (Choose all that apply.)

a. Bash

b. csh

c. sea

d. zsh

3. You frequently use the command ls -a and want to save time by just entering l to do the same thing.Which of the following commands enables you to set your system to view hidden files by only entering l?

a. put l= ls -a

b. setltols-a

c. set"ls-a"to"l"

d. alias l=" ls -a"

4. You have written a script, but when you run it there is an error.Which of the fol- lowing commands can you use to debug your script? (Choose all that apply.)

a. debug -all

b. sh -v

c. ./ -d

d. sh -x

5. You have written a shell program that creates four temporary files.Which of the fol- lowing commands can you use to remove these files when the script has completed its work?

a. trap

b. grep

c. del

d. clear

6. Which of the following commands works well for menus used in a script? (Choose all that apply.)

a. do

b. case

c. choose

d. Comm

7. You are currently in the source directory, which is the new directory you have just created for storing and running your scripts.You want to make certain that the source directory is in your default path.Which of the following commands enables you to view the current default path settings?

a. cat PATH

b. show path

c. sed PATH!

d. echo $PATH

8. You have created a script for use by your entire department in a commonly accessed directory. Only you are able to run the script, which works perfectly.Which of the following is likely to be the problem?

a. You did not link the script.

b. You did not give all users in your department execute permission for that script.

c. You did not designate to share ownership of the script.

d. There are two kinds of scripts, universal and private.You have created a private script and need to convert it to universal

9. Your current working directory contains a series of files that start with the word “account” combined with a, b, c, d, and e, such as accounta, accountb, and so on. Which of the following commands enables you to view the contents of all of these files? (Choose all that apply.)

a. ls account "a -e"

b. less account "a,e"

c. more account[ a,b,c,d,e ]

d. cat account{a to e}

10. For which of the following logic structures used within a script is fi the final line for that logic structure? (Choose all that apply.)

a. loop

b. case

c. for

d. If

11. Which of the following are examples of arithmetic or relational operators? (Choose all that apply.)

a. !

b. <

c. %

d. *

12. You have created a series of scripts that use the same environment variables. How- ever, when you run these scripts, some of them do not seem to recognize the envi- ronment variables you have set.What is the problem?

a. You need to use the export command so these variables have global use.

b. You are creating too many environment variables, because the maximum number is five.

c. You must use the home command to make these variables native to your home directory.

d. Only the system administrator can create environment variables and you should contact her to create the ones you need to use.

13. You have spent the last two hours creating a report in a file and afterwards you use cat to create a new file. Unfortunately the new file name you used was the same as the name you used for the report, and now your report is gone.What should you do next time to prevent this from happening?

a. Enter the cat -s command before you start.

b. Enter the command, set -o noclobber before you start.

c. Always use the cat -m command when you use cat to create a file, because this command checks to see if the file already exists.

d. After you created the report file you should have used the chmod a-o command to prevent the file from being deleted or overwritten.

14. You have remotely logged into a computer running UNIX or Linux, but you are not certain about which operating system you are using. However, when you display the contents of the          variable it shows which operating system you are using.

a. OP

b. OPTIND

c. OID

d. OSTYPE

15. What command can you use to view the environment and configuration variables already configured on your system?

a. var

b. envar

c. printenv

d. let -all

16. Which of the following are valid expressions? (Choose all that apply.)

a. let x=5*9

b. let x=y+10

c. let m=12/4

d. let r=128-80

17. When you type for wood maple spruce oak pine at the command line and then press Enter, what should you type next at the > prompt?

a. do

b. go

c. fi

d. Term

18. You want to store a long listing of your files in a variable called myfiles.Which of the following commands enables you to do this?

a. let ls -l=myfiles

b. echo ls -l > myfiles

c. myfiles=‘ls -l‘

d. let ls -l > myfiles

19. What error is in the following script code?

case “selection” in “ i ”) ./listscript ;; “ ii ”) ./numberscript ;; “ iii ”) ./findscript ;; esac

a. All references to ;; should be replaced with a back quote.

b. There should be a dollar sign in front of selection, as in “$selection”

c. There should be no double quote marks in the code.

d. The code must end with the statement,“out”.

20. You are working with a colleague on a script called value that updates several files. You want to test the script, but not update the files.Which of the following com- mands can you use?

a. test -noupdate value

b. trap -u value

c. set -u value

d. sh -n value

21. You only have to enter the name of a script to have it run, such as entering myscript. What setting enables you to do this?

a. You have set the SCRIPT environment variable to 1 instead of the default 0.

b. Right after you logged in you entered setup scripts.

c. Thefirstlineinyourscriptsisalwaysrun,whichenablesscriptstoberuninthisway.

d. You have placed the directory from which you run the scripts in your PATH variable.

22. What would you expect to find in the HOME environment variable?

23. What is the difference between a compiler and an interpreter?

24. What command would you use to place the cursor in row 10 and column 15 on the screen or in a terminal window?

25. What is the purpose of a login script?

New York (CNN Business)President Donald Trump has long cast OPEC as an evil force ripping Americans off by not pumping enough oil. Now he's pleading with Saudi Arabia and Russia to stop pumping so much oil. In the past, Trump has called OPEC a "monopoly" (it's not) that must be broken up. "They are robbing our country blind," he tweeted in November 2012. Since winning the presidency, Trump has repeatedly hammered OPEC for engineering higher oil prices to hurt American drivers. Donald Trump cannot win reelection without Texas. It's as simple as that." GREG VALLIERE, CHIEF US POLICY STRATEGIST AT AGF INVESTMENTS "OPEC, please relax and take it easy. World cannot take a price hike -- fragile!" the president tweeted in February 2019. Flash forward to 2020: Instead of slamming OPEC for artificially restraining production, Trump is urging the cartel to do just that. And rather than calling for OPEC to be broken up, Trump is elevating the group's status by encouraging it to stop the oil crash one that threatens to set off a surge of bankruptcies and job losses in Texas and throughout America's oil industry. Trump is even attempting to broker an agreement between Saudi Arabia and Russia to end their devastating price war by massively cutting production. The president's tweets on the subject Thursday helped US oil prices to spike 25% -- their biggest one-day gain in history. "It's amazing to have Trump get in the middle of this," Helima Croft, head of global commodity strategy at RBC Capital Markets, told CNN Business. "Think about the 180: For years, Trump hated collusion among the producers and wanted to get rid of OPEC." Texas is a huge prize in 2020 That reversal reflects shifting political realities. The coronavirus pandemic is causing millions of job losses ahead of the November presidential election. A prolonged downturn in the US oil industry would only amplify the economic pain, especially in Republican-leaning states. "What has changed is the political equation: Donald Trump cannot win reelection without Texas. It's as simple as that," said Greg Valliere, chief US policy strategist at AGF Investments. Oil prices spike by a record 25% as Trump talks up huge production cuts and Saudi Arabia calls for OPEC meeting Not only is Texas the second-biggest electoral prize (after California), it's also by far the nation's largest oil producer. In fact, Texas pumps more oil than every OPEC nation not named Saudi Arabia. But Texas is getting crushed by cheap oil. Russia, seeking to blunt the rise of US shale oil producers, refused last month to cut oil production. Saudi Arabia responded by surging output and slashing prices. Reflecting the urgency of the moment, Trump is meeting with the CEOs of ExxonMobil (XOM), Chevron and other leading US oil companies Friday to discuss the crisis facing the industry. Navigating this situation is a delicate balance. The White House doesn't want oil bankruptcies and job losses on its hands. But Trump doesn't want to be seen helping oil CEOs and Saudi Arabia at the expense of average Americans who want cheap gas prices. 'I would always raise hell with OPEC' The president has acknowledged his evolving views. "You always get a little torn," Trump said on March 20. "Until we became the leading producer, I was always for the person driving the car and filling up the tank of gas...If (prices were too high, I would always raise hell with OPEC." Now the oil crash is setting off real turmoil in the energy industry. Whiting Petroleum (WLL), a former rising star in the shale industry, this week became the first of what will surely be a wave of US oil companies to file for bankruptcy during this crisis. Nearly 100 US oil and gas producers could file for Chapter 11 over the next year, Buddy Clark, co-chair of the energy practice at Houston law firm Haynes and Boone, told CNN Business. And that may be the optimistic view. Rystad Energy warned this week that 140 US oil producers could file for bankruptcy this year if oil stays at $20 a barrel, followed by another 400 in 2021. Even the largest oil companies are cutting back. Debt-ridden Occidental Petroleum (OXY) slashed its dividend by 86% and announced pay cuts across the entire company. Chevron (CVX) is cutting production and spending in hopes of avoiding its first dividend cut since the Great Depression. "We have a great oil industry, and the oil industry is being ravaged," Trump said Wednesday during a press briefing. "We don't want to lose our great oil companies." Will Texas cap output? Now there is a debate playing out over whether and even how the United States should intervene in the oil war. Some independent oil producers are pushing Texas to -- for the first time in more than 40 years -- limit the state's output. A wave of oil bankruptcies is on the way Ryan Sitton, a commissioner on the Railroad Commission of Texas, the state's energy regulator, even held a call Thursday with Russia's energy minister to discuss options. "While we normally compete," Sitton said in a tweet, "we agreed that #COVID19 requires unprecedented levels of int'l cooperation." He added that he will speak to Saudi Arabia's energy minister soon. Shale pioneer Harold Hamm and others are pushing for Trump, the self-proclaimed "Tariff Man," to sanction OPEC by enacting tariffs that would punish Russia and Saudi Arabia for their ruinous oil war. But the American Petroleum Institute, the nation's largest oil lobby, is urging Trump to avoid intervening in free markets. Trump has so far taken modest steps, including instructing the Energy Department to take advantage of cheap prices by filling up the nation's emergency stockpile of crude. Debate over free markets OPEC has signaled it isn't willing to keep cutting production -- unless other countries join in and do so, too. The cartel will meet via video conference Monday with Russia and other countries outside the alliance, two sources at the OPEC secretariat told CNN Business. Although the final list of invitees has not yet been set, the United States, Canada and Mexico could reportedly be invited. But it's not clear how the United States would enact its own production cuts. US output is controlled by thousands of different companies across the nation who all have their own competing interests. The irony calling on OPEC to come to the rescue is that Trump and others for years have complained that OPEC distorts free markets. And Now that Saudi Arabia and Russia have stopped artificially restraining their production, they're being urged to step back in to calm markets. "This is the free market. We are living in the world of NOPEC right now," RBC's Croft said. "OPEC's cuts gave US producers a vital lifeline. Now that the lifeline has been withdrawn, you have figures in Washington wanting sanctions against OPEC." The above article was published on April 3, 2020 on CNN Business News. Read the article carefully and answer the questions below. (Do it by yourself). Q1. What are the major points in this article. Q2. How do you see the role of OPEC from the above article.

Step 1) Following the steps from prior weeks, add a new page to your website. Save this new page as AboutUs.html. Make sure that the name of the page does not have a space (see the screenshot below of the Save dialogue box).

Step 2) Add the <body> tag, navigation, and <header> tag. The header <h1> text should say “About Us”.

Hint: Refer to Week Three, Steps 3, 4, and 5 for a refresher on how to add these elements.

Step 3) Add a link to the external CSS page.

Hint: Refer to Week Three, Step 8 for a refresher on how to add the link to the MyStyle.css page.

Step 4) Save your page and open it in a web browser, such as IE or Chrome. Your page should render like the image below with the header and the navigation on the top right of the page.

Step 5) Add a <div> tag between the closing </header> and closing </body> tags. To avoid confusion with <div> tags that you will add later, name this tag “div1”.

<div name="div1">

</div>

Step 6) Add a new file folder named media to the folder where you’ve chosen to save your Week Five files (the screenshot below shows your file structure with the media folder in the same place as your HTML and CSS files).

Step 7) Copy the file named Swiss_Mountain_House.mp4 to the “media” folder.

Note: It’s important that you have the legal right to use any and all media files you add to web pages; you automatically own all rights to media files you created yourself, most other files you must obtain permission from the owner of the file. Some copyright owners grant free use of their work just for asking. Websites that offer free media files will state on their site that the files are royalty free. Never use someone else’s work without being sure you have the right to do so. In this case, your instructor has ensured you have the right to use these files.

Step 8) Within the opening <div> and closing <div> tags for “div1”, add the following code to add a video clip to your AboutUs.html page:

<video width="400px" controls>

   <source src="media/Swiss_Mountain_House.mp4" type="video/mp4">

   Use a browser (such as IE or Chrome) that supports the HTML5 video tag for mp4 files.

</video>

Note: The source “src” tag for the path is pointing to the media folder. The line under the <source> tag is verbiage that the user may see if the browser is not compatible with the HTML5 video tag, or if the file is missing. All browsers behave differently, but it is a good practice to provide the alternate text.

Step 9) Add the following HTML comment on the line above the beginning <video> tag. Note the syntax that delineates the start and stop of the HTML comment. The HTML interpreter will ignore everything between the opening and closing comment tags so you only see this comment when you look at the source. Notice that the HTML comment syntax is different from the JavaScript^® comment syntax.

<!-- Royalty-free video loops are from https://www.freeloops.tv/ -->

Step 10) Save and refresh the browser. Your page should render like the image below with an embedded video file below the header.

Step 11) Click the play arrow to test the 5-second video.

Note: There is no audio with this video.

Step 12) Copy the files named Cow-SoundBible.mp3 and Cow-SoundBible.wav to the “media” folder.

Step 13) Add a second <div> tag (named “div2”) after the closing </div> tag for “div1”, but before the closing </body> tag. Insert the <article> and <audio> element code below. Note that the source “src” tag for the path is pointing to the media folder and there is also a comment above the opening <audio> tag.

        <div name="div2">

<article >

Our cheese products come from the finest farms in Switzerland. Click the audio play button below to hear our happy cows!

</article>

<!-- Royalty-free sound clips are from http://soundbible.com/ -->

<audio controls >

   <source src="media/Cow-SoundBible.mp3" type="audio/mpeg">

   <source src="media/Cow-SoundBible.wav" type="audio/wav">

   <source src="media/Cow-SoundBible.ogg" type="audio/ogg">

   Your browser does not support the audio tag.

</audio>

        </div>

Step 14) Save and refresh the browser. The page will render like the image below with text and the embedded sound file below the video. Press the audio play arrow to test the audio.

Note:In Step 14, the line under the <source> tag is verbiage that users may see if their browsers are not compatible with the HTML5 audio tag, or if the audio files are missing. To simulate this situation, comment out the two lines for the MP3 and WAV files. When your interpreter cannot see the two commented-out lines, it will only read the file for the OGG file. Since that file is missing, your browser will either show the alternate text, or disable the audio control. All browsers behave differently, but providing these options allows different browsers to handle the situation gracefully. Without these options, a browser might display a broken link to a sound file with no explanation, which would confuse your users and give them the impression that your site is poorly constructed. Remember that in HTML the beginning comment tag is <!-- and the closing comment tag is -->. If you tested the missing file scenario above, be sure to uncomment the lines that point to the MP3 and WAV files.

Step 15) To float “div1” and “div2” side-by-side, use the "myColumns" CSS class from Week One to both <div> tags. Save your file after you are finished. The modified opening <div> tags will look like this:

<div name="div1" class="myColumns">

<div name="div2" class="myColumns">

Step 16) Open the MyStyle.css page in NotePad++. Add the following code to the end of the existing code, right after the closing curly brace } for the myColumns block, as follows:

.aboutUsMedia {

            width: 250px;

}

Step 17) Back in the AboutUs.html page, modify the opening <video>, opening <article> tag, and opening <audio> tags.

Note: The “aboutUsMedia” class will replace the “width” attribute for the <video> tag.

1. Remove the width="400px" statement from the opening <video> tag and replace it with the class="aboutUsMedia" statement. The code will look like the example line below:

<video class="aboutUsMedia" controls>

2. Add the class="aboutUsMedia" statement to the opening <article> and opening <audio> tags, as follows:

<article class="aboutUsMedia">

<audio class="aboutUsMedia" controls >

Step 18) Save and refresh the browser. The <video> tag, <article> tag, and <audio> tag are all resized to a width of 250px, and the two <div> tags are now floating side-by-side as shown in the image below.

Step 19) Add the following <footer> code between the closing </body> tag and the closing </html> tag:

<footer>

Click

<a href="https://www.nationalgrocers.org/" target="_blank">here</a>

to learn more about the National Grocers Association.

</footer>

Step 20) To push the <footer> to the bottom of the page, and to stop the floating of the footer to the right, add the following to the end of your MyStyle.css page.

footer {

            clear:both; /* this clears the float */

            display: block;

            position: absolute;

            bottom: 0;

            left: 0;

            right: 0;

background-color: lightgray;

text-align: center;

}

Step 21) Save your file and refresh it in the browser window. Your page should render like the image below with a formatted footer at the bottom of the page that includes a link. To test the external link, click the “here” hyperlink in the footer at the bottom of the page. The external page will open in a new window.

Note: Be sure to save all the files, as you modified the AboutUs.html and MyStyle.css files in the prior steps.

Part 4/A

`

Date: July 1, 2012; 12:30 PM

After the big igniter problem, the company is still reeling. The ramifications were severe; they lost several big customers over it, along with creating a huge amount of scrap. To make matters worse, they were not able to recoup their payment from TriTech because the igniters were delivered as they had been designed. It was their own fault, not TriTechs. After a few weeks, purchasers were able to find replacement parts, but delivery took several weeks, and at significant cost. During that time, Patrick had hourly employees take a two-week unpaid leave. After employees were asked to return, productivity was low—presumably because morale was low after the forced leave, and they were likely performing a work slow-down that was not sanctioned by the union. After what they have been through, Bill’s cannot afford to have poor productivity now—all of the gains made between March and May were wiped out with the igniter snafu.

Part 4/A - Answer the following questions:

1. First, describe your gut reaction to this situation. What do you think?

2. What can Patrick do to improve productivity? What types of leadership would be most appropriate? Use the information from Chapter 12 to answer this question.

3. How can this situation be applied to Power and Politics in Chapter 13? Be specific.

4. Based upon what you have learned from the text, what recommendations do you have for Patrick. Be specific.

Part 4/B

Date: July 15, 2012

Early in July, Patrick noticed that productivity numbers were very low and attributed the problem to a work slow-down. Knowing that the union had not sanctioned the slow-down, Patrick took a hard stand. He implemented strict new rules for bathroom breaks, smoking breaks, and lunch.   Productivity seemed to go up. He walked through the factory 3 times a day to be sure that the machines were running, and that they had an hourly employee working on them. Even though they complained about the new rules, employees seemed to be generally following them and working harder. He assumed this resolved the productivity issue once and for all.

But, three days after implementing the new rules, the earnings report came in, and things looked bleak. In the last 3 months, Bill’s had lost over a million dollars per month. At this rate, Bill’s could only survive another 4 months before they were completely insolvent.

Patrick would have no choice but to lay people off. He decided to lay off 100 people with the lowest seniority, and move other employees around to get the work done. Many hourly employees would have to change shifts and work days to accommodate the new schedule. Patrick knew this would cause problems for people’s personal lives, but he had no choice, what else could he do? They would also have to work harder since they continued to have the same amount of work, but had 100 fewer people to complete it.

After a week of planning with Susan and Janet (the managers of HR and Operations) and a few key supervisors, Patrick executed the layoff. Within an hour, union officials from within the plant and state union representatives were calling. They were threatening a walk-out. Patrick needs to fix things. Now.

Part 4/B -Answer the following questions:

1. First, describe your gut reaction to this problem. What do you think?
2. Over the course of the last 7 months, Patrick has faced multiple challenges. Please list what you believe are the five biggest problems Patrick has faced. Be specific. Why are those the biggest, and how do these impact the larger organization?
3. Chapter 14 discusses organizational structure and change. Based upon the information provided in the readings, what is Patrick’s first step in finding the causes of the problems at the plant? Be specific and refer to the text.
4. If Patrick decides to undergo significant organizational change to solve some of the problems at the plant, first he must diagnose the root cause. What questions would be appropriate to ask, and to whom would he ask them?
5. Based upon your knowledge of the entire case, list at least three issues that you believe could be root causes of the problems that Patrick has seen?

Part 4/C:

Date: July 20, 2012

It has been a taxing, exhausting first six months for Patrick. In that time, he learned a great deal about the financial and accounting systems, the hierarchy and reporting structures, and the market. However, upon reflection be began to notice that while he had spent a great deal of time thinking about money and structure, he hadn’t spent a lot of time thinking about the company itself. As he reflected, a number of things popped out at him. The next morning, he started to open his eyes to his surroundings and the results were enlightening.

First, he noticed the parking lot, and realized that there were actually two—one out front for the office people, and a much larger one behind the factory where hourly factory employees and supervisors parked.

Next, he noticed that when you walk into Bills’ there are several grills sitting in and around the offices. But none were Bill’s Grills—they were grills from competitors. There were several pictures from the old days—pictures of Bill in the original garage where the company started, pictures of their first factory in the old warehouse, and pictures of Bill at the company picnic. But, all the while he had been there, few had mentioned Bill’s name.

Finally, he went onto the factory floor.   Within minutes of entering, he noticed an employee bending steel for the gas line that connects the propane canister with the grill itself. After observing for a moment, he realized that the employee had removed the safety shield that kept her arm from entering the metal bending press. Further, when she bent the steel, it left a stress crack in the metal—one that went unnoticed. Knowing what he did about steel and pressure, Patrick was concerned that the crack would turn into a full-blown hole when under pressure from the propane coming out of the propane tank.   Patrick watched the employee bend three pieces of steel, each resulting in a stress crack. Out of curiosity, he stepped up to the employee, who continued to work, and asked “Did you know that you are making bad product?” She responded “Yes”, and went on with her work. “But why?” said Patrick, “this is a huge liability and potentially very dangerous for consumers.” Her response was simple: “Because my supervisor told me to. She said the order had to get out--if we missed this shipment, we would lose the account.” And, with that, she went back to work. ‘Ironic’ thought Patrick. All of this took place beneath a large banner that said “Quality is our Top Priority”. This exchange left Patrick thinking about the organization’s culture in a totally new way. What was he going to do?

Part 4/C -Answer the following questions:

1. Based upon the scenario above, what do you think about the organizational culture at Bill’s?
2. Think about the dimensions that make up a company’s culture. Based on what you’ve learned about Bill’s throughout this semester, and the company’s assumptions, values and artifacts, do they have a strong or weak culture? Why or why not?  
3. Does Bill’s need a culture change? If so, how?

Unhealthy Accounting at HealthSouth PROBLEM In 1996, key executives of HealthSouth, one of the nation's largest providers of health care services, began a massive fraud that eventually amounted to $2.7 billion.1 HealthSouth is a textbook case of unbridled greed combined with a lack of corporate governance, which illustrates the difficult situation that auditors face when clients perpetrate a massive, collusive fraud. HealthSouth was founded in 1984 by Richard Scrushy and coworkers at Lifemark, a Houston-based company that owned and managed hospitals.2 They took HealthSouth public in 1986, and by 1996, the company's market value had grown to $12 billion.3 According to the government's complaint, Scrushy, the chief executive officer, insisted that the company meet or exceed earnings expectations established by Wall Street analysts. Senior officers would present actual accounting earnings to Scrushy, and if they did not meet the forecasts, he reportedly told them to “fix it.” Unbeknownst to Scrushy (according to his testimony at trial), a team of senior accounting personnel, known as “the family,” held “family meetings” to determine ways to increase accounting earnings. They would look for “holes” in the balance sheet to be filled. The fictitious accounting entries they used to plug those holes were referred to as “dirt.” Methods included overestimating insurance reimbursements, overstating fixed assets, improperly capitalizing expenses, and overbooking reserve accounts.4 The “family” members started by manipulating contractual allowances by consolidating entry adjustments after the end of each quarter. The allowances accounted for the differences between what HealthSouth charged patients and the amounts the company could collect from the patients' health insurers. By lowering the allowances improperly, HealthSouth improved its net revenue and bottom-line earnings. To offset the contractual allowances, the company increased inventory, intangible assets, fixed assets, and even cash. The fictitious fixed asset line item at each facility was listed as “AP summary.”5 The company's CFO, William Owens, a former Ernst & Young (E&Y) senior manager and one of five CFOs who eventually pleaded guilty to the fraud, also used the acquisition of Horizon/CMS to book $400 million worth of goodwill as part of the cover-up. He pulled the trick off with the help of two HealthSouth colleagues and a finance executive from Horizon.6 On paper, HealthSouth maintained impeccable corporate policies. The company established a confidential whistle-blower hotline in 1997; developed a nonretaliation policy, which gave the compliance director direct access to the board; and established a centralized finance function. This centralized function seemed to be a particular advantage because other health care companies were falling apart as a result of problems in field offices. Reviewing these policies, it is not difficult to see why a massive fraud did not seem likely.7 Despite outward appearances, actual corporate governance was quite different. Many decisions were made at the executive level, which limited checks and balances along the way. The audit committee met only once a year. The accounting systems in the field did not interface with the corporate enterprise-resource-planning software, making it necessary for results to be consolidated at the corporate level, where it was easier to “cook” the numbers.8 Scrushy, a former gas station attendant, fit the profile of the overbearing CEO who set the wrong tone at the top. He reportedly managed by fear and intimidation. Scrushy installed security cameras throughout headquarters to watch employees. He allowed rank-and-file employees into his executive suite only when he wanted to berate them.9 According to the government's complaint, accounting personnel advised Scrushy in 1997 to abandon the fraud, but he refused, saying, “Not until I sell my stock.”10 The five CFOs realized the error of their ways, but most felt helpless to blow the whistle or even leave the company. One, Michael Martin, testified he tried to quit, but Scrushy reportedly said, “Martin, you can't quit. You'll be the fall guy.”11 Later, when Treasurer Leif Murphy decided to leave the company because of the fraud, Martin punched him twice at his going-away party and wrote on his farewell card, “Eat [expletive] and die.”12 Page C15 AUDIT APPROACH HealthSouth was the largest client of the Birmingham office of E&Y. The 2001 audit fee was $1.2 million, and the firm billed an additional $2.5 million for other services. Many of HealthSouth's senior accounting staff had been E&Y employees.13 In hindsight, there had been red flags for the auditors to pursue. For example, from 1999 to 2001, net income rose nearly 500 percent while revenue grew only 5 percent.14 The audit team also took no action when members learned that internal auditors were denied access to the corporate books. Finally, the team did not sufficiently investigate employee complaints. The auditors were not oblivious to HealthSouth's risky profile. Jim Lamphron, a partner on the audit, said they focused on two risk factors: (1) “Company officials harboring a strong interest in seeing a rising stock price” and (2) “Management ranks dominated [by] those at the top. … Specifically, we were focusing on Richard Scrushy.”15 Despite E&Y's awareness of important fraud risks, the “family” was adept at the cover-up, making it difficult to detect certain aspects of the fraud. The SEC said that HealthSouth employees knew that E&Y questioned additions to fixed assets at any particular facility only if the additions exceeded a certain dollar threshold ($5,000), so the company avoided exceeding that dollar amount by spreading the adjustments below this materiality limit to various accounts and locations. When the auditors did question an accounting entry, HealthSouth officials created false documents to cover their tracks. When E&Y auditors asked for fixed assets ledgers for various facilities, accounting personnel would regenerate the ledgers, replacing the AP Summary line with the name of a specific fixed asset that did not exist at the facility.16 DISCOVERY The fraud scheme was noticed by company whistle-blowers, whose concerns seemed to be disregarded. One anonymous e-mail was sent to the auditors saying the company “fleeced shareholders” and listed four suspicious accounting practices. E&Y's review determined that the issues raised by the author of the e-mail “did not affect the presentation of HealthSouth's financial statements.” Another e-mail, from Michael Vines and forwarded to audit partner Jim Lamphron, was passed to CFO William Owens and George Strong, the audit committee chairman. Owens provided fake invoices for the questioned entries and dismissed the seriousness of this e-mail, indicating that Vines was just a disgruntled former employee.17 (Vines had made frequent comments about the company's accounting on the employee electronic chat room and was regarded as something of a pest.)18 In October 1999, Diana Henze, assistant vice president of finance, noticed that earnings would jump with each iteration of quarter-end consolidations. She confronted Owens, who was controller at the time, and accused him of fraud. When she went to Kelly Cullison, the company's corporate compliance officer, she was told that the compliance officer “did not have access to the supporting documents” to determine whether or not the journal entries were legitimate. Henze brought the matter to her supervisor, cofounder Tony Tanner, who told her the entries were the result of reversing out a number of reserves and that the matter was closed.19 Henze said that she was subsequently passed over for a promotion that would have given her more involvement with the books. When she asked why a less-qualified person got the job, Owens told her, “You have made it clear you won't do what we asked.”20 Page C16 William Owens finally went to the authorities when his wife threatened to divorce him because she thought (correctly) that he would end up in jail.21 Owens agreed to wear a wire when meeting with Scrushy. Scrushy is on tape as saying, “You got accountants signing off on all this.” In an impromptu meeting at a lake, Scrushy is recorded as telling Owens, “Just remember, I got eight kids. I got a bunch of babies at home. They need their daddy.” Scrushy also told Owens, “If you want to go public with all this, get ready to get fired, and everyone goes down with you,” according to the transcript of the recording that Owens made.22 Once Owens came forth, the investigation quickly uncovered the massive fraud as other employees quickly cut deals with prosecutors. Scrushy was a local hero in Birmingham with supporters in all corners. A lavish donor to local colleges, libraries, and medical centers, he was also a regular preacher at area churches. He even aired his own TV talk show each day before he appeared in court and hosted his own website (www.richardmscrushy.com).23 His defense attorneys sought to depict him as a detached leader and visionary rather than a micromanager with unchallenged influence. In the end, he was acquitted of all charges in what many see as a blow to enforcement of the Sarbanes-Oxley Act (Scrushy had certified statements on the 10-K dated August 14, 2002, under the Sarbanes-Oxley Act).24 Jurors said key witnesses were not credible, and the prosecution failed to present substantial evidence linking the fraud to Scrushy: “The smoking gun wasn't pointing toward Mr. Scrushy.”25 Scrushy subsequently settled claims from the SEC by paying $81,000,000.26 However, in October 2006, he was convicted of improperly paying $500,000 to a campaign of former Alabama Governor Don Siegelman in exchange for a seat on a hospital regulatory board. He was sentenced in June 2007 to nearly seven years in prison.27 In July 2009, a jury awarded $2.88 billion in a civil suit brought by HealthSouth shareholders. It is believed to be the largest penalty ever levied against one executive. This case was brought before a lone judge, not a jury.28In April 2011, the Alabama Supreme Court denied Scrushy's appeal of the verdict.29 Scrushy was released from prison in 2012 and now is on the speaker circuit.

DISCUSSION QUESTIONS

What are several red flags that E&Y either was or should have been aware of in the audit of HealthSouth?

What procedures can auditors perform to detect fraudulent entries made during the consolidation process?

How can auditors determine a company's true “tone at the top”? What is the appropriate response by auditors to information from “disgruntled” employees?

HealthSouth concealed the fraud by keeping the fraudulent transactions below $5,000. What recommendation would you have to E&Y to improve its sampling practices?

REQUIRED: Prepare a report to management to address the questions above. Format: 11 pt or 12 pt; Times Roman; 1.15 space. No limit