Read the following extract and answer the questions that follow. [20 marks]
Joe Gebbia and Brian Chesky were sharing a loft apartment in San Francisco in 2007 when they realised that attendees to a major design conference in town were going to struggle to find a room for the night.
With almost every hotel room in the city booked out, Gebbia and Chesky, who were struggling to pay their rent, seized their chance.
They threw the doors open to their place, offering strangers the chance to sleep on two airbeds on the floor and eat a home-cooked breakfast.
As the Airbnb website puts it: “Two air mattresses, a thousand dollars, three new friends, and many high fives later, the entrepreneurs realized an opportunity.”
With the addition of tech wizard Nathan Blecharczyk, the team decided to change the accommodation model by allowing people to list their own places to stay online, with the new business, Airbedandbreakfast.com, gaining revenue through a fee of between 6% and 12%, depending on the price of the booking.
Initially focusing on large-scale events where accommodation would be scarce, the trio raised cash for the venture in an unusual way – they sold $30,000-worth of special edition breakfast cereals they created, based on then-US presidential candidates Barack Obama and John McCain.
In 2008 the name was shortened to Airbnb and users were able to book whole properties, boats and even private islands, rather than just a couch to crash for the night.
In June last year, the business revealed it had booked its ten millionth night, with 75% of these bookings occurring outside its initial market of the US.

There have been hitches – such as the PR disaster of a woman writing on her blog that her apartment had been trashed by an Airbnb renter. Chesky wrote a contrite response, admitted the company had “dropped the ball” and introduced insurance and a 24-hour helpline to help solve future problems.
Airbnb now features listings in 33,000 cities in 192 countries. It has also raised a very handy $120 million in venture capital and is valued at $1.3 billion.
Chesky told CNN: “Sometimes it takes a fresh pair of eyes to look at a problem and see it as an opportunity, not just the way things are or have to be.”
“I think that being a young entrepreneur is a great opportunity to challenge the status quo and build the world as you think it ought to be.”
Source: https://www.smartcompany.com.au/business-advice/innovation/five-top-business-ideas-that-made-millions/
Accessed: 02/10/19

REQUIRED:
1. With reference to the extract, discuss two methods of generating business ideas that resulted in Airbnb.
2. Use the extract to discuss how a feasibility study can be used to ascertain whether a business idea is an opportunity.

Below you will find part of a job description for a part-time position in a campus bookstore. Read each task in the job description and identify those tasks for which training (rather than employee selection techniques) would be appropriate. In the next exercise, you will be asked to determine how to train the employees for each of the tasks you identify.

Textbook Clerk

Job Summary

The Textbook Clerk is a university work-study position. The student hired for this job is responsible for assisting the Textbook Supervisor with book inventories, shelving duties, and customer requests. Additionally, the Textbook Clerk performs general clerical and messenger duties and operates the cash register when additional assistance is needed. Work Activities

Inventory Duties - Inventories books by section and course number - Informs supervisor of number of books to be returned - Writes ISBN-13 on inventory sheet - Verifies all information as typed on each textbook requisition - Records price information

Shelving Duties - Shelves returned books - Straightens shelves - Removes previous semester's textbooks from store shelves at the end of each semester - Shelves used books in the stockroom by title - Shelves new books in the stockroom by publisher - Places shelf cards on appropriate shelf - Dusts shelves - Dusts books

Customer Relations Duties - Phones professors regarding new textbook editions - Mails book arrival notices to professors

Clerical Duties - Creates and prints shelf cards - Creates and prints book arrival notices - Types PU-6 Forms - Photocopies book orders and notices about book arrivals

Messenger Duties - Delivers materials or messages to other employees - Delivers materials to university departments 100

Cash Register Duties

- Writes name on register tab at beginning and end of shift - Watches customers entering store to make sure they do not take books and backpacks into store - Tabulates price of purchases using cash register - Counts appropriate change and gives it to customers - Pages employee on register list to assist with checkout when lines are long - Approves student's’ checks by validating university ID or by certifying driver's license - Approves out-of-town checks by verifying name, address, and phone number with driver's license - Pages supervisor to fill out void slips - Completes in-slip forms for returns - Sells laundry tickets, computer disks, and dissection coupons to students - Verifies textbook tags for price and author codes to ensure that the correct tag is still on the textbook - Pages supervisor if tag and code are incorrect

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A garden store prepares various grades of wood chips for mulch for sale in various tonnages for delivery to large garden construction sites around town. The grades are (a) fine, (b) standard and (c) course. The process requires red gum, machine time, labour time, and storage space.

The garden store owner has identified that the store can generate $90 profit per storage bin for fine, $90 for standard but only $60 for course chips.

Each load of chips require inputs in the following quantities:
Fine: 5 tonnes of material, 2 machine hours, 2 hours of labour and 1 storage bin Standard: 6 tonnes of material, 4 machine hours, 4 hours of labour and 1 storage bin Course: 3 tonnes of material, 5 machine hours, 3 hours of labour and 1 storage bin

Unfortunately, like every business, the garden store has limits in its production capacity. It is able to handle 600 tonnes of red gum at any one time, the machine can only operate for 600 hours before major maintenance must occur, it only has sufficient staff to provide 480 hours of labour time and it has 150 storage bins.

Required:

please give all calculations

(a) What is the marginal value of a tonne of red gum? Over what range is this price value appropriate?

(b) What is the maximum price the store would be justified in paying for additional red gum?

(c) What is the marginal value of labour? Over what range is this value in effect?

(d) The manager obtained additional machine time through better scheduling. How much additional machine time can be effectively used for this operation? Why?

(e) If the manager can obtain either additional red gum or additional storage space, which one should the manager choose and how much (assuming additional

quantities cost the same as usual)?

(f) If a change in the course chip operation increased the profit on course chips from $60 per bin to $70 per bin, would the optimal quantities change? Would the value of the objective function change? If so, what would the new value(s) be?

(g) If profits on course chips increased to $70 per bin and profits on fine chips decreased by $6.00, would the optimal quantities change? Would the value of the objective function change? If so, what would the new value(s) be?

William Smith, Sr., was the founder of Smith Enterprises, Inc. He owns 60% of the stock of Smith Enterprises (60,000 shares of 100,000 shares outstanding, stock basis $100 per share). The value of the stock was recently determined to be about $500 per share. Over the years, William, Sr., has done a very good job of getting his sons and daughters (and even grandchildren) involved in the business, and the other 40% of the Smith Enterprises stock is owned by is two daughters, his son and his granddaughter. William, Sr., has reached the point in his life where he is ready to retire from the family business that he founded. He has done a sufficiently good job of training up the younger generation in the management of the business that he feels able to completely withdraw from the business.

In a few concise, coherent sentences, advise William, Sr., of what steps he needs to take to assure that the tax consequences of the redemption of all of his stock in Smith Enterprises will be treated as a sale of stock (long-term capital gain/loss), rather than as distribution (dividend income). If William, Sr., cannot understand your advise, he will fire you and you will lose a $600,000-per-year client, so make sure that your advise is both correct and coherently presented.

Sage is a 26-year-old doctoral candidate in English literature at the local university. She is in good standing in her program and has plans to enter the job market in the fall. In your intake, she tells you she thinks she is “fat” and has been self-conscious about her body since the sixth grade, at which time she began menstruating and developing breasts earlier than the other girls in her class. She was teased for needing a bra and remembers feeling “chubby, too big, and just wanting to be small like [her] younger sister.” She started dieting in the seventh grade, following strict rules for weeks (e.g., she recalls the grapefruit only diet), then transitioning into what she called “bad” weeks. During these times, she would stock up on candy bars and other snack foods and eat them, often in her bedroom late at night. Her parents became concerned and tried to strictly limit her dieting. This led to eating “normal” during the day and binging on those candy bars she kept hidden in her bedroom at night if she felt sad, scared, or mad. She grew into a habit of eating to feel better – relief that was only temporary, as she would feel ashamed about what she had done and resolve to not do it again. In college, her pattern of emotional eating continued, which felt more distressing to her because of the pressure to look “as pretty and thin as the other girls.” In spring of her freshman year she experimented with throwing up after the late-night eating and found that, at least in the minutes that followed, she felt like she had much more control and believed this would help her to prevent the weight gain she so dreaded. She fell into a vicious cycle of late-night binges (typically consuming about 7 candy bars in 15 minutes, during which times Sage described feeling very out of control) followed by making herself throw up. In college, she engaged in these binge-purge episodes about 6 nights/week. At present, she is having a harder time hiding the episodes because she lives with her boyfriend; she estimates that they occur about 4 nights per week. The times when she feels the most compelled to binge and purge are when she has a major presentation coming up in her doctoral program and when she gets in a fight with her boyfriend. Her BMI is in the normal range, but she says she needs to lose weight. She wants to stop binging and purging because she does not want her boyfriend to find out, but she is also afraid that if she stops, she will gain weight.

1. List 3 examples subjective data

2. List 3 examples of objective data.

3. Do you think the patient has anorexia or bulimia?

4. What do you think would be a good treatment plan for this patient?

5. What would be a good therapeutic response to the patient stating she is " "she tells you she thinks she is “fat”?

Critical Thinking

The market for young people's food products has increased considerably in recent years. As a result, children have become high-potential customers and are now the focus of intense and specialized marketing and advertising efforts.

Children and adolescents have become attractive consumers and influencers: they have an increasing influence on their family's purchases.Childrenrepresent an important target audience for marketers because they have their own purchasing power, influence their parents' purchasing decisions, and are the consumers of tomorrow. Advertisers have an interest in seducing them from an early age.Thus, to be sure to attract young people, companies opt for a combination of different approaches and channels such as television advertising, contests and games, toys, the use of popular characters, the use of various attractive colors, school marketing, Internet and branded products etc.

Food and beverages products that target children have increased and these productsare dominated by foods that are high in calories, sugars, salt, fat, low in nutrients and therefore not compatible with national dietary recommendations.

Mr. Fahmy has already a business in the food sector and wants to open a new subsidiary specializing in natural and organic products for children. The goal is to provide healthy, nutritious food and use healthier ingredients.

Questions

1. Help Mr. Fahmy define his overall goals, objectives and strategies for his new business in the context of his mission and purpose.

2. Briefly describe the choices that Mr. Fahmy can make for each of the 4 Ps of the marketing mix.

3. Identify the target market and describe how Mr. Fahmy's activities will respond better than the competition to the needs of the consumer. (List consumer expectations for the product)

4. Describe the type of promotional methods that you recommend to Mr. Fahmy for the promotion of his product line. (Identify techniques such as word of mouth, personal sales, direct marketing, sales promotion, etc., on television, radio, social media, and newspapers).

5. Why is it important for a media planner to consider how different types of media could work together on a media plan?

In the following problem, check that it is appropriate to use the normal approximation to the binomial. Then use the normal distribution to estimate the requested probabilities.

It is estimated that 3.4% of the general population will live past their 90th birthday. In a graduating class of 784 high school seniors, find the following probabilities. (Round your answers to four decimal places.)

(a) 15 or more will live beyond their 90th birthday


(b) 30 or more will live beyond their 90th birthday


(c) between 25 and 35 will live beyond their 90th birthday


(d) more than 40 will live beyond their 90th birthday

Part 2

In the following problem, check that it is appropriate to use the normal approximation to the binomial. Then use the normal distribution to estimate the requested probabilities.

It is known that 80% of all new products introduced in grocery stores fail (are taken off the market) within 2 years. If a grocery store chain introduces 67 new products, find the following probabilities. (Round your answers to four decimal places.)

(a) within 2 years 47 or more fail


(b) within 2 years 58 or fewer fail


(c) within 2 years 15 or more succeed


(d) within 2 years fewer than 10 succeed

part 3

The method of tree ring dating gave the following years A.D. for an archaeological excavation site. Assume that the population of x values has an approximately normal distribution.

(a) Use a calculator with mean and standard deviation keys to find the sample mean year x and sample standard deviation s. (Round your answers to the nearest whole number.)

(b) Find a 90% confidence interval for the mean of all tree ring dates from this archaeological site. (Round your answers to the nearest whole number.)