Over the past 5 years from 2015 to 2020, DL Insulation has paid annual dividends of $0.46, $0.635, $0.71, $1.03 and $1.13 per share. What would you estimate the share price to have been at 30/06/2020? Would you have bought your company’s stock? (a required an actual return of 16%)

QUESTION 1

1. The combination of knowledge, skills, abilities, and other valuable characteristics among the workforce that determine its productive potential refers to the organization’s…

   		Person-job fit
   		Person-culture fit
   		Performance culture
   		Human capital

QUESTION 2

1. An organization gathers information about what employees do in their jobs and what knowledge, skills, and abilities are required to perform in those jobs. They do this by observing, interviewing, and distributing surveys to employees. They are performing a(n)…

   		Job analysis
   		Employment discrimination analysis
   		Organizational culture analysis
   		Realistic job preview

QUESTION 3

1. One manager interviews a set of job candidates. The manager’s ratings are heavily influenced by the mood that the manager is in. As a result, the same candidate would get different ratings depending on the day he/she was interviewed. This lack of consistency means the interview has low…

   		Social capital
   		Reliability
   		Validity
   		Generalizability

QUESTION 4

1. Job candidates have to perform a simulated job task. Their performance is used to determine whom to hire. Performance on this task is highly relevant to the job and has been shown to predict who performs well. Because of its relevance to the job and predictive power, this employee selection method has high…

   		Social capital
   		Reliability
   		Validity
   		Generalizability

QUESTION 6

1. An employer asks each applicant the same questions verbally and has a standardized scoring sheet to grade each answer. This is a clear example of…

   		An unstructured interview
   		A structured interview
   		An integrity test
   		A work sample

smartphone industry report with data from 2010 to 2020 export and import less than 3500 word

1. Do you think shareholders from target companies enjoy an average gain when acquired, while acquiring shareholders do not benefit anything? Why? Are there any common flaws in the negotiation for a merger? Can you comment on the value creation process in an acquisition?     

In 2018, Babcock Industries, a calendar year corporation, acquired a 10% interest in Caraway, Inc. for $65,000. Babcock appropriately used the fair value method to account for the investment.   At the beginning of 2021, Babcock acquired an additional 25% of the outstanding common stock of Caraway for $250,000. The following additional information is available at the date of purchase related to Caraway’s activity for the years 2018-2020:

Cumulative dividends paid by Caraway                                                          $150,000

Cumulative income reported by Caraway $400,000

Cumulative fair value adjustment in Babcock’s balance sheet

At 12/31/20 $ 35,000

Caraway’s balance sheet on the date of the additional purchase is as follows:

Accounts receivable         $100,000                                Mortgage payable                                $200,000

Inventories                             200,000

Building                                   400,000 Stockholders’ equity                          500,000

Total assets                             $700,000 Total liabilities and equity              $700,000

Babcock based its price for the additional 25% investment on the fact that Caraway has developed a patent that Babcock estimates is worth $300,000. The patent will expire in 10 years.

Subsequent to the investment, Caraway reports earnings of $200,000 and pays $90,000 in dividends. In addition, Babcock sells inventories to Caraway that cost $50,000 for a sales price of $80,000. At the end of 2021, 60% of the inventories are still held by Caraway.

Provide all journal entries needed to record each of the following:

-Babcock’s additional investment in Caraway at the beginning of 2021.

-Caraway reports total earnings of $200,000 for 2021

-Babcock adjusts Caraway’s earnings for amortization of the patent

-Babcock adjusts Caraway’s earnings for deferral of gross profit on the intercompany inventory sale

-Caraway pays total dividends of $90,000

The CEO of Starbucks and the Practice of Ethical Leadership

Sara Tangdall

Background

One year after becoming CEO of Starbucks, Kevin Johnson faced a leadership test when two black men were arrested in a Philadelphia Starbucks. The men were waiting to meet a business associate, but they didn’t purchase anything while they were waiting. The store manager asked them to leave, and they refused, explaining that they were there to meet someone. The manager called the police because the men refused to leave, and the police arrested them.

Another patron at Starbucks recorded the arrest on her cell phone, and it quickly went viral. In an interview after the arrest, the woman who took the video mentions that she had been sitting there for a while, and she wasn’t asked to leave even though she didn’t order anything. Additionally, the video shows the business associate of the black men show up during the arrest, and he asks the manager and the police what the men had done wrong. The general public and those who witnessed the arrest labeled it as discriminatory and racist.

This happened on a Thursday and the following Monday, Johnson said that the manager no longer worked at the store. The arrests led to protests and sit ins at the Philadelphia Starbucks the days following the event.

In his apology statement and follow up video release shortly after the arrests, Johnson said, “The video shot by customers is very hard to watch and the actions in it are not representative of our Starbucks Mission and Values. Creating an environment that is both safe and welcoming for everyone is paramount for every store. Regretfully, our practices and training led to a bad outcome—the basis for the call to the Philadelphia police department was wrong.”  

Before the incident, Starbucks had no companywide policy about asking customers to leave, and the decision was left to the discretion of each store manager. Because of this flexible policy, Starbucks had become a community hub--a place where anyone could sit without being required to spend money. Johnson mentioned this community in his apology when he said Starbucks works to create an environment that is “both safe and welcoming for everyone.”

Also in his apology, Johnson outlined the investigation he and the company would undertake. The apology detailed actionable steps Starbucks leadership would follow to learn from the situation, including meeting with community stakeholders to learn what they could have done better. Johnson took full responsibility for the actions of his employees, and he acknowledged that Starbucks customers were hurt by the arrests. Johnson acknowledged that employees needed more training, including about when to call authorities, and that the company needed to conduct a thorough analysis of the practices that lead to this incident.

After issuing his apology, Johnson went to Philadelphia and met with the two men face to face to involve them in dialogue on what Starbucks needed to do differently.

The week following the arrests, Starbucks announced it would temporarily close 8,000 stores to conduct unconscious bias training, which they did on May 29, 2018. A month after the arrests, Starbucks released a new “Use of Third Place Policy,” which states that anyone can use Starbucks and its facilities without making a purchase; it also explains what managers should do if a customer becomes disruptive. Additionally, the policy says that Starbucks seeks to create “a culture of warmth and belonging where everyone is welcome. This policy is intended to help maintain the third place environment in alignment with our mission ‘to inspire and nurture the human spirit – one person, one cup and one neighborhood at a time.’”

Practice of Ethical Leadership

How is Johnson practicing ethical leadership? Additionally, we can consider what we learn about his character through his actions and his impact.

1. Did his decision to close all Starbucks stores for unconscious bias training and to create a new “Third Space Policy” align with Starbucks’ mission and goals? If so, how?

2. Explain everything Johnson did right and what positive outcomes resulted from his actions?

3. What leadership traits did Johnson exhibit?

1. Evaluate the following statement


A. “Managers should specialize by acquiring only the tools needed to operate in a particular market structure. That is, managers should specialize in managing either a perfectly competitive, monopoly, monopolistically competitive, or oligopoly firm.”



B. The CEO of a major automaker overheard one of its division managers make the following statement regarding the firm’s production plans: “In order to maximize profits, it is essential that we operate at the minimum point of our average total cost curve.” If you were the CEO of the automaker, would you praise or chastise the manager? Explain.




C. You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales (GH¢125 million last year) and a low marginal cost of producing the product (GH¢0.25 per pill), your company has yet to show a profit from selling the drug. This is, in part, due to the fact that the company spent GH¢1.2 billion developing the drug and obtaining Food and Drugs Authority approval. An economist has estimated that, at the current price of GH¢1.25 per pill, the own price elasticity of demand for the drug is -2.5. Based on this information, what can you do to boost profits? Explain.



D. The opening statement on the Website of the Organization of Petroleum Exporting Countries (OPEC) says, “...OPEC’s eleven members are all developing countries whose economies are heavily reliant on oil export revenues. They therefore seek stable oil prices that are fair and reasonable for both producers and consumers of oil.” To achieve this goal, OPEC attempts to coordinate and unify petroleum policies by raising or lowering their collective oil production. However, increased production by Russia, Oman, Mexico, Norway, and other non-OPEC countries has caused the price of crude oil to fall dramatically in recent years. To achieve its goal of stable and fair oil prices, what must OPEC do to maintain the price of oil at its desired level? Do you think this will be easy for OPEC to do? Explain.