Suppose that the owner and CEO of a firm that operates in a PERFECTLY COMPETITIVE market environment comes to see you for help. She has a few questions to ask you as the company Economist. This question is:

(i)     “At lunch the other day, I overheard an economist at the next table describe our perfectly competitive firm as being a ‘Price Taker’ in the market. Can you carefully and completely explain what it means to be a Price Taker AND why my firm is described that way, please?”

We want to be local and global, small and big, radically decentralized with central reporting and control. If we can solve those contradictions, we can create real organizational advantage'. - The former CEO of ABB

Questions:
1- Based on the international corporate strategy, how can a company be local or global?
2- Does the corporate strategy (local or global) depend on the sector, customers or industry?
3- How can companies solve the contradictions of being local and global?

Critical Thinking Assignment

Starbucks in 2009, the company launched an instant coffee brand: VIA Ready Brew.

Develop a one-page summary presentation. Include a solid introduction and conclusion to Howard Schultz, CEO.

What is the S-T-P?

What are Starbucks’ core competencies?

How would you recommend to launch the product?   (Think downstream marketing)

What are the calculated risks? (Think upstream...)

Key question: why did Starbucks develop this product?

We want to be local and global, small and big, radically decentralized with central reporting and control. If we can solve those contradictions, we can create real organizational advantage'. - The former CEO of ABB

Questions:
1- Based on the international corporate strategy, how can a company be local or global?
2- Does the corporate strategy (local or global) depend on the sector, customers or industry?
3- How can companies solve the contradictions of being local and global?

Americans should learn to live without these two imported products. But, they should not have to give up these two imported products. Justify your reasons for each statement.(8-10 sentences)

This is a sample response to help clarify the question:

The first important import that the US should be able to live without is crude oil. The US produces a large percentage of the oil it needs and only needs roughly 25% more to meet its demand. If the US can cut its usage by that last 25% or so, we would be able to be self-sufficient and not have to rely on other countries for this import. Thirty seven percent of the energy the US consumes is from petroleum, increasing the usages of natural gas and renewable sources, not only will the US benefit but also the environment will as well.

The US should be able to live without importing automobiles. I say this because motor vehicles is one of the top imports of the US at the same time as being the number three ranked export. I like the ability for a consumer to buy what they like with the amounts of cars to choose from. However, there are so many domestic cars, ranging from economy cars to large luxury vehicles. If these are such a good export, we should be able to live with not bringing in cars from other countries and look to drive American made cars.

The two products that I think Americans should not have to live without are somewhat similar. Both are beverages, but enjoyed differently. The first is real good Columbian grown coffee, sometimes it is the best part of getting out of bed in the morning! The US imports about $6.3 billion in coffee each year, which is the highest at 19%. As we tend to be labeled as work-aholics, coffee is a big player is keeping us on the go. The second import I think Americans should not have to give up is the import of beer. Beer is made with such cultural influences, and some of the best beers around are imported. I have been to Germany twice, and I will say, their beer is unmatchable. Even with the increase in craft brewing in the US, ending the importing Canadian beers, European beers and Mexican beers is just something I do not want to ever see.

Q#1: As an auditor for the CPA firm of Hinkson and Calvert, you encounter the following situations in auditing different clients.

Penn Station East Coast Subs began in Cincinnati, Ohio with founder Jeff Osterfeld. Feeling frustrated with the lack of growth and profits, Jeff decided to franchise his handful of restaurants in the late 1980’s. This strategy proved successful. Based on the internal environment of Penn Station, what factors contributed to the success of the business? What characteristics, culture, and management style did Jeff portray that lead to his overall success?

The value of goodwill is the excess of

The purchase price over the fair value of tangible and identifiable intangible net assets acquired.

The purchase price over the fair value of tangible net assets acquired.

The purchase price over the carrying value of tangible and identifiable intangible net assets acquired.

The purchase price over the carrying value of tangible net assets acquired.

At December 31, 2020, Cord Company's plant asset and accumulated depreciation and amortization accounts had balances as follows:

Depreciation methods and useful lives:
Buildings—150% declining balance; 25 years.
Equipment—Straight line; 10 years.
Automobiles and trucks—200% declining balance; 5 years, all acquired after 2017.
Leasehold improvements—Straight line.
Land improvements—Straight line.

Depreciation is computed to the nearest month and residual values are immaterial. Transactions during 2021 and other information:

1. On January 6, 2021, a plant facility consisting of land and building was acquired from King Corp. in exchange for 18,000 shares of Cord's common stock. On this date, Cord's stock had a fair value of $40 a share. Current assessed values of land and building for property tax purposes are $136,000 and $544,000, respectively.
2. On March 25, 2021, new parking lots, streets, and sidewalks at the acquired plant facility were completed at a total cost of $150,000. These expenditures had an estimated useful life of 12 years.
3. The leasehold improvements were completed on December 31, 2017, and had an estimated useful life of eight years. The related lease, which would terminate on December 31, 2023, was renewable for an additional four-year term. On April 30, 2021, Cord exercised the renewal option.
4. On July 1, 2021, equipment was purchased at a total invoice cost of $318,000. Additional costs of $12,000 for delivery and $43,000 for installation were incurred.
5. On September 30, 2021, Cord purchased a new automobile for $11,800.
6. On September 30, 2021, a truck with a cost of $23,300 and a book value of $7,800 on date of sale was sold for $10,800. Depreciation for the nine months ended September 30, 2021, was $1,755.
7. On December 20, 2021, equipment with a cost of $13,500 and a book value of $2,800 at date of disposition was scrapped without cash recovery.

Required:

2. For each asset category, prepare a schedule showing depreciation or amortization expense for the year ended December 31, 2021.

The Australian Securities and Investment Commission (ASIC) is taking Mountain Ltd to court for breach of the legislation under the Corporations Act 2001 in the 2018 financial year. The matter is still ongoing, and the company does not expect the matter to be resolved until November 2020. 1f found liable, the fines could be between $200,000 and $2,000,000. The company is somewhat confident that they will not be fined the full $2,000,000 but they are uncertain about the outcome. The company wants to ensure that they have reported the matter correctly in the financial accounts for the year ended June 2020. The date is August 1 and the directors have not signed off on the financial accounts. 1. Discuss whether an adjustment in the financial accounts is required or a note disclosure, give reason for your answer. 2. Discuss the effect the scenario has on the accounts and how they are presented.