SOHO House was founded in 1995 in London as a private members’ club for individuals within the creative industries. SOHO House is aggressively expanding globally and has a diverse range of luxury properties spreading around the globe; from New York to Mumba and Barcelona to Hong Kong while also venturing into other industries to include homewares, cinema, restaurants, and hotels. Though SOHO House remains the leader in the private club sector, their recent diversification into other industries has impacted its customer's perception of their brand, specifically their loyal private club customer base.

An opportunity has arisen for you to join the Sales and Marketing team as the Director of Communications and Promotions. You are required to develop a communication strategy targeting current and prospective private club members.

Develop a new communication and pricing strategy for SOHO House’s private club.

• Discuss the integrated marketing communications concept to support your answer.
• Analyse the types of promotional tools that are best suited to SOHO House.

Identify the type of pricing strategy that best suits the target market.

The Fleming Foundation is a charitable organization founded by Gaylord Fleming and Sandy Fleming. The Flemings intended for the charity to provide programs in health care for the elderly, particularly those in poverty. The two main program divisions of the foundation are mental health for the elderly and housing for the elderly. In addition to these programs, the Foundation also provides health care educational programs and has a significant fund-raising effort to help the Foundation grow and accomplish the goals of the founders. The Foundation is organized into two operating departments—education and program management. These departments are supported by two service departments—information technology (IT) and administration. To summarize, there are four departments (two service departments and two operating departments) and two programs (mental health and housing for the elderly). The service department costs are allocated to the operating departments, and then the operating department costs are allocated to the programs.

There are $260,000 of costs directly traceable to each of the four departments. An additional $46,500 of indirect costs is shared among the four departments—$25,500 of which is allocated to the departments based on labor hours and $21,000 of which is allocated to the departments based on the number of personnel (head count) in the departments.

The cost, labor hours, and head count in these departments in the most recent year are as follows:

IT serves education, administration, and program management 20%, 20%, and 60% of its time, respectively. Administration serves education, IT, and program management 40%, 10%, and 50% of its time, respectively.

The costs of the two operating departments (education and program management) are allocated to the two programs (mental health and housing) as follows: the costs in Education are allocated on the basis of labor hours in the programs, while the costs in program management are allocated using the head count used in the two programs. The following table shows the labor hours and head count consumption by the two programs.

Required:

Determine the costs allocated to the mental health and housing programs using the (a) direct method, (b) the step method (assuming that IT goes first), and (c) the reciprocal method. (Round percentage calculations to 4 decimal places (e.g., 33.3333%). Do not round intermediate calculations. Round your final answer to nearest whole dollar amount.)

The Porsche Shop, founded in 1985 by Dale Jensen, specializes in the restoration of vintage Porsche automobiles. One of Jensen's regular customers asked him to prepare an estimate for the restoration of a 1964 model 356SC Porsche. To estimate the time and cost to perform such a restoration, Jensen broke the restoration process into four separate activities: disassembly and initial preparation work (A), body restoration (B), engine restoration (C), and final assembly (D). Once activity A has been completed, activities B and C can be performed independently of each other; however, activity D can be started only if both activities B and C have been completed. Based on his inspection of the car, Jensen believes that the following time estimates (in days) are applicable:

Jensen estimates that the parts needed to restore the body will cost $2000 and that the parts needed to restore the engine will cost $6000. His current labor costs are $500 a day.

1. Which project network is correct?
   

   (i)		(ii)
   (iii)		(iv)

   
   
   
2. What is the expected project completion time?
   
   Critical Path:  
   
   If required, round your answer to one decimal place.
   
   Expected time =  days
   
3. Jensen's business philosophy is based on making decisions using a best- and worst-case scenario. Develop cost estimates for completing the restoration based on both a best- and worst-case analysis. Assume that the total restoration cost is the sum of the labor cost plus the material cost.
   
   If required, round non-monetary answers to the nearest whole number. If required, round monetary answers to the nearest dollar.
   
   Best Case (Optimistic Times) = days
   
   Total Cost = $  
   
   Worst Case (Pessimistic Times) =  days
   
   Total Cost = $  
   
4. If Jensen obtains the job with a bid that is based on the costs associated with an expected completion time, what is the probability that he will lose money on the job? If required, round your answer to the nearest dollar.
   
   Bid Cost = $  
   
   If required, round your answer to two decimal places.
   
   The probability is
   
5. If Jensen obtains the job based on a bid of $19,500, what is the probability that he will lose money on the job?
   
   Note: Use Appendix B to identify the areas for the standard normal distribution. If required, round your answer to four decimal places.
   
   The probability of a loss is

Founded in 1906, Rayovac had become, over the course of the twentieth century, one of the best-known battery producers in the U.S. However in 1996, with its market share steadily eroding due to fierce competition from Duracell, Energizer, and Panasonic, it was purchased by the private equity firm Thomas H. Lee and Partners (THL). Over the next decade the firm embarked upon an ambitious acquisitions program which saw it grow from a $400 million annual revenue business in 1996 to an over $2.8 billion annual revenue business by 2005.

In 2003, the global battery market was worth about $24 billion in sales with the U.S. accounting for about one third of global consumption. About 73% of Rayovac’s revenues came from North America. Though the U.S. market was growing at an annual rate of 7.4%, fierce competition in the U.S. led to considerable price discounting and required significant advertising and promotional expenditures. Rayovac, as the number three player in market share behind Duracell (a division of Gillette) and Energizer, competed as a value brand rather than as a premium brand. It sold a high-quality product but at prices 10-15% below its main competitors. With the proliferation of personal electronic devices, Rayovac expected strong growth to continue, especially in emerging markets around the world as income grew there.

Q1: Do a SWOT analysis for Rayovac.

Strengths:

Weakness:

Opportunities:

Threats:

The Fleming Foundation is a charitable organization founded by Gaylord Fleming and Sandy Fleming. The Flemings intended for the charity to provide programs in health care for the elderly, particularly those in poverty. The two main program divisions of the foundation are mental health for the elderly and housing for the elderly. In addition to these programs, the Foundation also provides health care educational programs and has a significant fund-raising effort to help the Foundation grow and accomplish the goals of the founders. The Foundation is organized into two operating departments—education and program management. These departments are supported by two service departments—information technology (IT) and administration. To summarize, there are four departments (two service departments and two operating departments) and two programs (mental health and housing for the elderly). The service department costs are allocated to the operating departments, and then the operating department costs are allocated to the programs.

There are $420,000 of costs directly traceable to each of the four departments. An additional $42,000 of indirect costs is shared among the four departments—$22,500 of which is allocated to the departments based on labor hours and $19,500 of which is allocated to the departments based on the number of personnel (head count) in the departments.

The cost, labor hours, and head count in these departments in the most recent year are as follows:

IT serves education, administration, and program management 20%, 20%, and 60% of its time, respectively. Administration serves education, IT, and program management 40%, 10%, and 50% of its time, respectively.

The costs of the two operating departments (education and program management) are allocated to the two programs (mental health and housing) as follows: the costs in Education are allocated on the basis of labor hours in the programs, while the costs in program management are allocated using the head count used in the two programs. The following table shows the labor hours and head count consumption by the two programs.

Required:

Determine the costs allocated to the mental health and housing programs using the (a) direct method, (b) the step method (assuming that IT goes first), and (c) the reciprocal method.

The Porsche Shop, founded in 1985 by Dale Jensen, specializes in the restoration of vintage Porsche automobiles. One of Jensen's regular customers asked him to prepare an estimate for the restoration of a 1964 model 356SC Porsche. To estimate the time and cost to perform such a restoration, Jensen broke the restoration process into four separate activities: disassembly and initial preparation work (A), body restoration (B), engine restoration (C), and final assembly (D). Once activity A has been completed, activities B and C can be performed independently of each other; however, activity D can be started only if both activities B and C have been completed. Based on his inspection of the car, Jensen believes that the following time estimates (in days) are applicable:

Jensen estimates that the parts needed to restore the body will cost $3000 and that the parts needed to restore the engine will cost $5000. His current labor costs are $400 a day.

1. What is the expected project completion time?
   
   Critical Path: A-B-D
   
   If required, round your answer to one decimal place.
   
   Expected time = _______ days
   
2. Jensen's business philosophy is based on making decisions using a best- and worst-case scenario. Develop cost estimates for completing the restoration based on both a best- and worst-case analysis. Assume that the total restoration cost is the sum of the labor cost plus the material cost.
   
   If required, round non-monetary answers to the nearest whole number. If required, round monetary answers to the nearest dollar.
   
   Best Cost (Optimistic Times) = _______days
   
   Total Cost = $  _______
   
   Worst Cost (Pessimistic Times) =  _______days
   
   Total Cost = $_______  
3. If Jensen obtains the job with a bid that is based on the costs associated with an expected completion time, what is the probability that he will lose money on the job?
   
   If required, round non-monetary answer to two decimal places. If required, round monetary answer to the nearest dollar.
   
   Bid Cost = $  _______
   
   _______ probability time and cost will exceed the expected time and cost (If required, round your answer to two decimal places).
4. If Jensen obtains the job based on a bid of $16,800, what is the probability that he will lose money on the job?
   
   Note: Use Appendix B to identify the areas for the standard normal distribution. If required, round your answer to four decimal places.
   
   The probability of a loss is _______

Please fill out all of the blanks! Thank you!!!

Adam (A), Betsy (B) and Cathy (C) decided to form a partnership, which was founded on 01/01/2015. Adam contributed cash $20,000 and inventory with market value of $30,000. B contributed a piece of land with market value of $80,000 with unpaid mortgage in the amount of $30,000. C contributed PPE with market value of $50,000 and C’s expertise is deemed to be worth of $50,000 by all the 3 partners.

A: If ABC decided to use goodwill method to document the creation of the partnership, what are the journal entries and what are the values of capital under respective partners’ names?

B: If ABC decided to use bonus method to document the foundation of the partnership, what are the journal entries and what are the values of capital under respective partners’ names?

C: Assuming that every year the profit among different partners will be shared in the ration of 10%, 30% and 60%, and partners have to retain 75% of their share profits in the partnership in the case of profit. What are the balances of each partner’s capital by the end of each year using both goodwill and bonus method (2015 and 2016)?

c.1. The partnership made $10,000 in 2015 and had a loss of $20,000 in 2016 (Goodwill method).

c.2:The partnership made $15,000 in 2015 and had a loss of $25,000 in 2016 (bonus method).

Cupid's Kiss Limited (“CK”) was founded in early 1980s focusing on the manufacturing and trading of baby food and snacks in Hong Kong. After years of development, CK is now one of the well-known baby food producers in Asia. You are the audit manager-in-charge of the audit of CK’s financial statements for the year ended 30 September 2020. The audit is substantially completed. After reviewing the audit documentation, you and your audit partner are satisfied with the audit. There are no significant issues or difficulties encountered in the audit. It has been agreed with CK that the auditor’s report for the year ended 30 September 2020 will be authorised and approved in mid-November 2020. Just a week before the planned approval date of the auditor’s report, you read a news headline: “A popular product of Cupid's Kiss is proven to contain toxic ingredients with a high risk of causing health problems as the raw materials were contaminated. Cupid’s Kiss announced an immediate product recall.”

Required:
(a) Determine and explain whether Cupid’s Kiss toxic ingredients problem is an adjusting event or a non-adjusting event. Discuss its implications to its financial statements for the year ended 30 September 2020.

(b) Suggest relevant audit procedures in response to Cupid’s Kiss toxic ingredients problem.

(c) Determine and explain the auditor’s obligation to follow up on the toxic ingredients problem if the news is only known by the auditor after the issuance of the auditor’s report and the financial statements.

Procter and Gamble a Model of Innovative Outsourcing
Founded in 1837 by William Procter and James Gamble, the Procter and Gamble Company, or P&G as it is often called today, introduced many of the staples of American consumer culture, including Ivory soap, Gillette razors, Tide laundry detergent, Crest toothpaste, Tampax feminine hygiene products, and Pampers diapers—products that have changed people’s lives. Today, P&G sells its products in over 180 countries to five billion people—more than 70 percent of the world’s population.
During the 1990s, P&G experienced rapid global growth. Responding to the need to service internal corporate clients around the world, the company’s Global Business Service (GBS) estab- lished three Shared Service Centers in Costa Rica, the Philippines, and England. The centers stan- dardized the way certain services were delivered to P&G business units. The transformation enabled P&G to eliminate redundant activities, streamline internal services, better support multiple business units, and improve the quality and speed of service.
Standardization of services also allowed P&G to develop a major outsourcing program. After A.G. Lafley became CEO in 2000, he and other company executives decided that P&G needed to abandon the conventional in-house services model and partner with outsourced service providers who could drive down costs and help the company promote innovation.
In 2003, P&G’s GBS took what seemed to be a major leap of faith, awarding $4.2 billion worth of outsourcing contracts to support its IT infrastructure, finance and accounting, human resources, and facilities management operations. P&G turned to IBM for employee services; Jones Lang LaSalle for facilities management; and HP for IT applications, infrastructure, and some accounts payable functions. These companies each took on a portion of P&G employees and responsibility for some of the Shared Service Centers.For example, Jones Lang LaSalle took over facility management services such as building operations, mail delivery, security, car fleet operations, and dining. It also handled strategic occu- pancy services, tracking occupancy costs, and project management. Jones Lang LaSalle oversaw a $70 million annual capital budget and bore the responsibility for the delivery of 1000 projects at 165 sites in 60 different countries—including the construction of an office building in China and a new headquarters for P&G’s Russian operations in Moscow.
Over time, the number of P&G’s strategic outsourcing partners grew and each relationship was handled a little differently. In 2010, GBS decided to launch a smart outsourcing strategy called strategic alliance management to maximize the benefits gained by its outsourcing contracts. Gleaned from best practices refined over the previous years, this program (1) adopted a joint business planning process with outsourcing partners, (2) established appropriate measures to assess progress, and (3) developed an Alliance Management platform that brought together all the data, people, reports, and communications for each outsourcing partnership.
The joint business planning process involves employees from both GBS and the outsourcing service provider who come together to set targets. Specifically, the team identifies base measures (e.g., performance or revenue) with targets and then creates a list of projects and initiatives to help meet those targets. The team brainstorms innovative goals and “wicked problems”—problems that are likely to impact business performance.
To assess projects, GBS also adopted standard service-level agreement (SLA) measures that track performance both at the granular and aggregate levels. Aggregate level measures, for exam- ple, might include rating customer satisfaction.
Finally, GBS designed and developed an Alliance Management platform, a shared online space where team members could access data, people, performance reports, service-level mea- sures, training news, the joint business plan, an integrated alliance calendar, and any document specific to the relationship with a partner. GBS ensures accountability by assigning key roles for overseeing the management of each outsourcing relationship, including an executive sponsor, a relationship manager, a deal manager, a transition manager, and an alliance architect (to over- see the governance of the outsource agreement). This strategic alliance management process allows P&G to recognize and reward good performance through renewal decisions at the end of the relationship agreement and by offering contracts for new initiatives to the outsourcing partner.
For example, Accenture helped P&G develop the Decision Cockpit, an online portal through which global teams could share and analyze data in real time. Accenture had the knowledge and experience to scale the system, giving P&G greater agility. Furthermore, through the joint planning team, the two companies reduced the number of daily and monthly reports that some managers were required to review from 370 to 30. The innovation reduced management costs by 50 percent for some business units and saved over 400 miles of paper annually.
As a result of the success of this and other joint projects, P&G looked to Accenture to help consolidate and enhance the company’s virtual solutions. P&G’s virtual reality centers are used to create and test shelving, packaging, and in-store design. “In the past,” explains GBS’s Director of Business Intelligence Patrick Kern, “a test group of consumers would go into a physical space we configured like a grocery store to go on a shopping experience. Watching their behavior in store and conducting a focus group after, we’d learn why they chose what they chose and how packaging and shelf position impacted their buying decision. You can imagine how expensive it is to put up these stores, from setting up shelves for different configurations to getting all the product there.”
The virtual solutions substantially reduced cost; however, P&G noticed that service delivery was highly fragmented as different outsource partners implemented the virtual solutions. So, P&G awarded Accenture a multiyear contract to manage all of P&G’s virtual solutions content delivery, freeing up P&G to focus on other areas of innovation. As a result of this long-term successful col- laboration, the Outsourcing Center—an online repository of white papers, articles, Webinars, market intelligence, and news on outsourcing—awarded P&G and Accenture the Outstanding Excellence Award in the Most Innovative category in 2013.
That said, P&G’s decision to outsource GBS initiatives cost thousands of Americans their jobs, white collar jobs that until the turn of the twentieth century had remained in the United States. P&G, along with IBM and Microsoft, led the pack in outsourcing U.S. jobs to India and other countries that were home to a workforce with sufficient technological expertise and English-language skills. However, in 2013, reports were leaked indicating that P&G was planning to “backsource”—or bring back in-house—some of the IT work it had been outsourcing. Some analysts argued that P&G was succumbing to pressure, like General Motors, to repatriate jobs and boost employment in the United States. Others argued that P&G was seeking to gain control over crucial IT functions that impacted its competitive positioning in the market.
Yet, even if P&G backsources some of its IT functions, it still remains deeply committed to out- sourcing. By deeply involving its outsourcing partners in every stage of its projects, P&G promotes what they call a “win-win” strategy. Today, many analysts view Procter and Gamble as a model of successful outsourcing strategy.

1. How does P&G’s strategic alliance management system help it avoid the pitfalls of outsour- cing? What risks does the system not address

Electric Generator Corporation

The Electric Generator Corporation was founded in the early 1970s to develop and market electrical products for industrial and commercial markets. Recently, the company has developed a new electric generator, the EGI, with a revolutionary design. Although its initial cost is $2,000 higher than any competing generator, reduced maintenance costs will offset the higher purchase price within 18 months. The Electric Generator sales force has been instructed to concentrate all effort on selling this new generator, as the company believes it has a sales potential of $500 million.

Sandy Hart, the company's South Texas salesperson, has as her main customer the E. H. Zachary Construction Company of San Antonio, which is the largest nonunion construction firm in the world. Because of the importance of potential Zachary purchases of the EGI (estimated at $1 million), Sandy's boss asks her to take two days off and develop a plan for contacting and selling to Zachary. Monday morning, she is expected at the Houston regional sales office to present this plan to her boss, the regional sales manager, and the divisional sales manager. These two people will critique the presentation, and then the four of them will finalize a sales plan that Sandy will present to Zachary's buying committee.

Questions

1-What could Sandy have done differently?

2- What do you think about the current price?