A new car that is a gas- and electric-powered hybrid has recently hit the market. The distance travelled on 1 gallon of fuel is normally distributed with a mean of 50 miles and a standard deviation of 8 miles. Find the probability of the following events:

A. The car travels more than 55 miles per gallon. Probability =

B. The car travels less than 47 miles per gallon. Probability =

C. The car travels between 42 and 53 miles per gallon. Probability =

A new car that is a gas- and electric-powered hybrid has recently hit the market. The distance traveled on 1 gallon of fuel is normally distributed with a mean of 45 miles and a standard deviation of 7 miles. Find the probability of the following events:

A. The car travels more than 53 miles per gallon.

Probability =  

B. The car travels less than 42 miles per gallon.

Probability =  

C. The car travels between 39 and 52 miles per gallon.

Probability =

A new car that is a gas- and electric-powered hybrid has recently hit the market. The distance travelled on 1 gallon of fuel is normally distributed with a mean of 55 miles and a standard deviation of 6 miles. Find the probability of the following events:

A. The car travels more than 59 miles per gallon.

Probability =

B. The car travels less than 51 miles per gallon.

Probability =

C. The car travels between 50 and 63 miles per gallon.

Probability =

A new car that is a gas- and electric-powered hybrid has recently hit the market. The distance travelled on 1 gallon of fuel is normally distributed with a mean of 50 miles and a standard deviation of 8 miles. Find the probability of the following events:

A. The car travels more than 54 miles per gallon.

Probability =  

B. The car travels less than 42 miles per gallon.

Probability =  

C. The car travels between 44 and 57 miles per gallon.

Probability =  

A new car that is a gas- and electric-powered hybrid has recently hit the market. The distance travelled on 1 gallon of fuel is normally distributed with a mean of 45 miles and a standard deviation of 7 miles. Find the probability of the following events:

A. The car travels more than 50 miles per gallon.

Probability =

B. The car travels less than 40 miles per gallon.

Probability =

C. The car travels between 37 and 51 miles per gallon.

Probability =

Hilton Hotel Vs Mariott Hotel

Hilton Worldwide Holdings Inc. (Hilton), a global class hotel operating out of 113 countries and
territories as of 2018, had a portfolio of 16 world class brands consisting of 5,000 properties. The
debate continues on whether Hilton can survive and thrive in the new age of travel and the
growing trend of e-commerce in the world. Hilton was able to differentiate itself from other
global hotels because of its unique employee centric HR practices like their recruitment, on
boarding, and training processes.
The leadership at Hilton believed in attracting, hiring, and retaining employees. This made
business sense because these employees would service their guests better. Over the years, the
company created a culture of high engagement of employees who went out of their way to
delight customers. Hilton employed a truly diverse workforce across a variety of positions in its
hierarchical structure ranging from valet to cleaning personnel, restaurant servers, concierge
providers, and managers which were recruited using global recruiters who were able to recruit a
large number of talented employees. The management kept its focus on the human aspect in
order to become profitable. The hotel was successful because it gave each its employee a special
work culture about caring for each other. The management felt that its continued focus on HR
policies and practices had acted as a competitive advantage for them...
Marriott, a hospitality giant, had a huge association with social media which generated a huge
response from its followers. Using a team structure and empowered self-managed teams,
Marriott was able to respond to global changes and to increase its flexibility by attracting on line
customers.

The Facebook page of Marriott attracted 1,874,121 likes and 4,041,532 visits while its Twitter
account was followed by 171,842 people as on March 2015. Its major move into gamification
came when it introduced a game on Facebook in 2011 for recruiting people, a game called ‘My
Marriott Hotel' as part of its recruitment gamification strategy on its Facebook jobs and careers
page. Mariott had earlier released a game named ‘Xplor' which gave players a virtual experience
of touring five gateway cities and solving challenges which led to their earning rewards that
could be redeemed against their stay in Marriott hotels. The company also tried its hand at
different apps like ‘Red Coat Direct', ‘Workspace on Demand', and ‘The Perfect Travel
Companion' in order to provide fast and convenient services at the customer's fingertips. Players
were then directed to Marriott's official recruiting page where they could submit their resumes
for a suitable position.

1-What HR Practice helped Hilton Hotel overcome the Globalization challenge?
2- How is Hilton hotel differentiating itself globally?
3-In your opinion, which hotel is applying a prospector strategy and why?
4-Clearly identify the recruitment sources used by Hilton hotel and Marriott hotel and why in
your opinion they are using them?

Central Adventures

Fatima Hopkins, the CEO of Central Adventures, is having difficulties with all three of her top management level employees. With one manager making questionable decisions, another threatening to leave, and the third likely ‘in the red’, Fatima is hoping there is a simple answer to all her difficulties, and needs some advice from her accountant on how to proceed.

Central Adventures owns and operates three amusement parks in Michigan: Central Funland, Central Waterworld, and Central Treetops. Central Adventures has a decentralized organizational structure, where each park is run as an investment center. Each park manager meets with the CEO at least once annually to review their performance, as measured by their park’s ROI. The park manager then receives a bonus equal to 10% of their base salary for every ROI percentage point above the required rate.

Central Funland is an outdoor theme park, with twelve roller coaster rides and several other attractions. This park has first opened 1965, and most of the rides have been in operation for 20+ years. Attendance at this park has been relatively stable over the past ten years. The park manager of Funland, Janet Lieberman, recently shared with Fatima a proposal to replace one of their older rides with a new roller coaster, a hybrid steel and wood rollercoaster with a 90 degree, 200 foot drop and three inversions. The proposal indicated that the ride would cost $8,000,000 with an estimated life of 20 years. In addition, this new style of coaster would require additional maintenance, costing $125,000 each year. However, it projected that this new attraction would boost attendance, earning the park an additional $1,190,000 per year in revenues. Janet ultimately decided not to invest in this new attraction.

Central Waterworld is an indoor water park, operating year-round. Run by park manager David Copperfield, Waterworld was built in 2016 and has increased attendance by 20% every year since. David recently sent you an email complaining that, based on the current bonus payout schedule, Janet Lieberman’s bonus last year was significantly higher than his. He points to the increasing attendance, and says that his park is being punished for having opened so recently (his park assets are much more recent than the roller coasters at Funland). He currently has an employment offer from another company at the same pay rate, which he says he will accept if his performance is not appropriately acknowledged.

Central Treetops includes a high ropes course and has a series of ziplines that criss-cross over the Chippewa River. For many years, it was a popular venue for corporate team-building activities, so it is equipped with a main indoor facility with cafeteria and overnight guest rooms. This park has lost popularity in recent years, and has been ‘in the red’ for the past two years. If the park is not profitable this year, you will need to decide whether to close it - permanently. Central Adventures has a $86,000 mortgage payment on the land and buildings for Treetops, which would still need to be paid if the park is closed. Incidentally, you recently had a conversation with the regional head of the YMCA, who would like to open a summer camp in the central Michigan region. If you decided to close Treetops, you are fairly certain that you could lease that land to the YMCA for $250,000 annually.

A partial report of this year’s financial results for Central Adventures shows the following:

In addition to the information above, there are $2,542,920 in corporate costs, which are currently allocated evenly between the three parks. These costs are primarily due to employee benefits costs, which are billed at the corporate level. If the Treetops park is closed, the allocated corporate costs would decrease by $12,000. Central Adventures has a required rate of return of 12 percent (set at the company’s weighted-average cost of capital) and are subject to 18% income taxes.

Fatima needs to see this year’s performance results before she can make any decisions. Is David’s complaint about the performance evaluation metrics valid? Is that also affecting management decisions in the form of Janet’s rejection of the proposed new rollercoaster? And is the company better off without Treetops? She sets off to the company accountant’s office to help get some answers.

a. Create a multilevel income statement for Central Adventures.

b.   Calculate the current annual ROI, residual income and EVA for the three parks.

c. Did Janet Lieberman (the Funland park manager) make the ‘right’ decision (i.e., was it in Central Adventure’s overall best interest for Funland to reject the new rollercoaster)? Explain your answer. Provide the appropriate financial analysis(es) to support your conclusion.

d.   Is David Copperfield’s (the Waterworld park manager) complaint valid? Or would a different performance metric tell the same story?

e. Provide a recommendation on whether to close Treetops. Provide the appropriate financial analysis to support your conclusion.

f.    Provide a recommendation on a different allocation base for corporate overhead.

--------Fatima Hopkins, the CEO of Central Adventures, is having difficulties with all three of her top management level employees. With one manager making questionable decisions, another threatening to leave, and the third likely ‘in the red’, Fatima is hoping there is a simple answer to all her difficulties, and needs some advice from her accountant on how to proceed.

Central Adventures owns and operates three amusement parks in Michigan: Central Funland, Central Waterworld, and Central Treetops. Central Adventures has a decentralized organizational structure, where each park is run as an investment center. Each park manager meets with the CEO at least once annually to review their performance, as measured by their park’s ROI. The park manager then receives a bonus equal to 10% of their base salary for every ROI percentage point above the required rate.

Central Funland is an outdoor theme park, with twelve roller coaster rides and several other attractions. This park has first opened 1965, and most of the rides have been in operation for 20+ years. Attendance at this park has been relatively stable over the past ten years. The park manager of Funland, Janet Lieberman, recently shared with Fatima a proposal to replace one of their older rides with a new roller coaster, a hybrid steel and wood rollercoaster with a 90 degree, 200 foot drop and three inversions. The proposal indicated that the ride would cost $8,000,000 with an estimated life of 20 years. In addition, this new style of coaster would require additional maintenance, costing $125,000 each year. However, it projected that this new attraction would boost attendance, earning the park an additional $1,190,000 per year in revenues. Janet ultimately decided not to invest in this new attraction.

Central Waterworld is an indoor water park, operating year-round. Run by park manager David Copperfield, Waterworld was built in 2016 and has increased attendance by 20% every year since. David recently sent you an email complaining that, based on the current bonus payout schedule, Janet Lieberman’s bonus last year was significantly higher than his. He points to the increasing attendance, and says that his park is being punished for having opened so recently (his park assets are much more recent than the roller coasters at Funland). He currently has an employment offer from another company at the same pay rate, which he says he will accept if his performance is not appropriately acknowledged.

Central Treetops includes a high ropes course and has a series of ziplines that criss-cross over the Chippewa River. For many years, it was a popular venue for corporate team-building activities, so it is equipped with a main indoor facility with cafeteria and overnight guest rooms. This park has lost popularity in recent years, and has been ‘in the red’ for the past two years. If the park is not profitable this year, you will need to decide whether to close it - permanently. Central Adventures has a $86,000 mortgage payment on the land and buildings for Treetops, which would still need to be paid if the park is closed. Incidentally, you recently had a conversation with the regional head of the YMCA, who would like to open a summer camp in the central Michigan region. If you decided to close Treetops, you are fairly certain that you could lease that land to the YMCA for $250,000 annually.

A partial report of this year’s financial results for Central Adventures shows the following:

In addition to the information above, there are $2,542,920 in corporate costs, which are currently allocated evenly between the three parks. These costs are primarily due to employee benefits costs, which are billed at the corporate level. If the Treetops park is closed, the allocated corporate costs would decrease by $12,000. Central Adventures has a required rate of return of 12 percent (set at the company’s weighted-average cost of capital) and are subject to 18% income taxes.  

Fatima needs to see this year’s performance results before she can make any decisions. Is David’s complaint about the performance evaluation metrics valid? Is that also affecting management decisions in the form of Janet’s rejection of the proposed new rollercoaster? And is the company better off without Treetops? She sets off to the company accountant’s office to help get some answers.

Required:

a.   Create a multilevel income statement for Central Adventures.

b.   Calculate the current annual ROI, residual income and EVA for the three parks.

c.   Did Janet Lieberman (the Funland park manager) make the ‘right’ decision (i.e., was it in Central Adventure’s overall best interest for Funland to reject the new rollercoaster)? Explain your answer. Provide the appropriate financial analysis(es) to support your conclusion.

d.   Is David Copperfield’s (the Waterworld park manager) complaint valid? Or would a different performance metric tell the same story?

e.   Provide a recommendation on whether to close Treetops. Provide the appropriate financial analysis to support your conclusion.

f.    Provide a recommendation on a different allocation base for corporate overhead.