Cemerlang Inc. is a conglomerate company which has four subsidiaries located in Brunei, Malaysia, United Kingdom, and Switzerland. The exchange rates available for the company are MYR2.9000/BND, GBP0.4000/BND and BND1.2500/CHF. The following is the inter- subsidiary payments matrix for Cemerlang Inc in multiple currency.
|
RECEIVING |
PAYING SUBSIDIARY (in millions) |
|||
|
SUBSIDIARY (in millions) |
Brunei |
Malaysia |
United Kingdom |
Switzerland |
|
Brunei |
MYR58 |
GBP10 |
CHF12.5 |
|
|
Malaysia |
BND10 |
GBP12 |
CHF16.25 |
|
|
United Kingdom |
BND 20 |
MYR29 |
CHF 20 |
|
|
Switzerland |
BND15 |
MYR43.5 |
GBP6 |
|
|
RECEIVING SUBSIDIARY (BND in millions) |
PAYING SUBSIDIARY (BND in millions) |
|||
|
Brunei |
Malaysia |
United Kingdom |
Switzerland |
|
|
Brunei |
||||
|
Malaysia |
10 |
|||
|
United Kingdom |
20 |
|||
|
Switzerland |
15 |
|||
Transaction cost in BND with no netting:
In: Finance
Cemerlang Inc. is a conglomerate company which has four subsidiaries located in Brunei, Malaysia, United Kingdom, and Switzerland. The exchange rates available for the company are MYR2.9000/BND, GBP0.4000/BND and BND1.2500/CHF. The following is the inter- subsidiary payments matrix for Cemerlang Inc in multiple currency.
|
RECEIVING |
PAYING SUBSIDIARY (in millions) |
|||
|
SUBSIDIARY (in millions) |
Brunei |
Malaysia |
United Kingdom |
Switzerland |
|
Brunei |
MYR58 |
GBP10 |
CHF12.5 |
|
|
Malaysia |
BND10 |
GBP12 |
CHF16.25 |
|
|
United Kingdom |
BND 20 |
MYR29 |
CHF 20 |
|
|
Switzerland |
BND15 |
MYR43.5 |
GBP6 |
|
|
RECEIVING |
PAYING SUBSIDIARY (BND in millions) |
|||||
|
SUBSIDIARY (BND in millions) |
Brunei |
Malaysia |
United Kingdom |
Switzerland |
Total receipt |
Total Receipt/ (payment) |
|
Brunei |
||||||
|
Malaysia |
||||||
|
United Kingdom |
||||||
|
Switzerland |
||||||
|
Brunei |
||||||
Transaction cost in BND with multilateral netting:
In: Finance
Each year a certain magazine publishes a list of "Best Places to Live in the United States." These listings are based on affordability, educational performance, convenience, safety, and livability. Suppose the list below shows the median household income of the magazine's top city in each U.S. state for a certain year. (Round your answers to the nearest cent.)
| City | Median
Household Income ($) |
City | Median
Household Income ($) |
|---|---|---|---|
| Pelham, AL | 66,770 | Bozeman, MT | 49,301 |
| Juneau, AK | 84,099 | Papillion, NE | 79,129 |
| Paradise Valley, AZ | 138,190 | Sparks, NV | 54,228 |
| Fayetteville, AR | 40,833 | Nashua, NH | 66,870 |
| Monterey Park, CA | 57,417 | North Arlington, NJ | 73,883 |
| Lone Tree, CO | 116,759 | Rio Rancho, NM | 58,980 |
| Manchester, CT | 64,826 | Valley Stream, NY | 88,691 |
| Hockessin, DE | 115,122 | Concord, NC | 54,577 |
| St. Augustine, FL | 47,746 | Dickinson, ND | 71,864 |
| Vinings, GA | 73,101 | Wooster, OH | 43,052 |
| Kapaa, HI | 62,544 | Mustang, OK | 66,712 |
| Meridian, ID | 62,897 | Beaverton, OR | 58,783 |
| Schaumburg, IL | 73,822 | Lower Merion, PA | 117,436 |
| Fishers, IN | 87,041 | Warwick, RI | 63,412 |
| Council Bluffs, IA | 46,842 | Mauldin, SC | 57,478 |
| Lenexa, KS | 76,503 | Rapid City, SD | 47,786 |
| Georgetown, KY | 58,707 | Franklin, TN | 82,332 |
| Bossier City, LA | 47,049 | Allen, TX | 104,522 |
| South Portland, ME | 56,470 | Orem, UT | 54,513 |
| Rockville, MD | 100,156 | Colchester, VT | 69,179 |
| Waltham, MA | 75,104 | Reston, VA | 112,720 |
| Farmington Hills, MI | 71,152 | Mercer Island, WA | 128,482 |
| Woodbury, MN | 99,655 | Morgantown, WV | 38,058 |
| Olive Branch, MS | 62,956 | New Berlin, WI | 74,981 |
| St. Peters, MO | 57,726 | Cheyenne, WY | 56,591 |
(a)
Compute the mean and median (in $) for these household income data.
mean$ _______________
median$ ________________
(c)
Compute the range and standard deviation (in $) for these household income data. (Round your standard deviation to the nearest cent.)
range$ _____________
standard deviation$ ________________
(d)
Compute the first and third quartiles (in $) for these household income data.
Q1$ ____________________
Q3$ ____________________
(e)
Are there any outliers in these data?
There ---Select--- below the lower limit and ---Select--- above the upper limit.
What does this suggest about the data?
There are no outliers in the data, which is likely why the mean value is the same as the median.
There are no outliers in the data, which is likely why the mean value is greater than the median.
There are outliers in the data, which is likely why the mean value is less than the median.
There are no outliers in the data, which is likely why the mean value is less than the median.
There are outliers in the data, which is likely why the mean value is greater than the median.
In: Statistics and Probability
How can you Explain the United Nations' process of identifying and diagnosing problems through the four roles in the
( The SAGE Handbook of Globalization
The United Nations Meets the Twenty-First
Century: Confronting the Challenges of Global Governance)
In: Economics
Central bankers have a favourite mantra: Patch the roof while the sun is shining.
But 10 years after the Federal Reserve worked alongside the European Central Bank and the Bank of Japan to bring the global economy back from the brink, their ability to prevent the next downturn is limited.
Whether the world’s central banks are prepared to combat another slump is becoming less of a hypothetical question as the global economy shows signs of strain. The chances that the United States will enter a recession by next year have grown as manufacturing weakens and trade uncertainty drags on. In Germany, the unemployment rate has ticked higher, and industrial production is slowing. In Japan, weak factory production and waning exports heighten vulnerability.
A recession is far from inevitable — particularly one as deep and painful as the last. But the capacity for the type of decisive response that prevented an even worse outcome in 2008 has been hindered. Back then, central banks cut rates, bought up bonds, extended government backing to financial products, lent money to banks and in some cases coordinated with government authorities to make sure their rescue packages didn’t work at cross-purposes. It was an unprecedented period of experimentation, one that saved economies careening toward collapse.
But today, interest rates remain below zero in Japan and Europe. They are low by historical standards in the United States, leaving less room to cut in a downturn. Most central banks still hold huge amounts of the bonds and other securities they bought to prop up their economies the last time, which could make another buying binge more difficult and dampen its effects.
Monetary policy is also running low on credibility. Major central banks have failed to hit their 2 percent inflation targets during this expansion, heightening the risk that prices will slip dangerously low come the next downturn. And while promises of lower-for-longer interest rates have been a major source of stimulus in recent years, those pledges might lose some of their punch in a world where investors already expect permanently low rates.
Those constraints are especially worrying at a time when governments show little appetite for working together to offset a broad-based global slowdown. The United States and Europe are in the midst of a trade dispute that followed President Trump’s decision to impose tariffs on steel and aluminium and his threat to levy taxes on German and other European cars. Mr. Trump has criticized the European Central Bank for taking steps to protect the eurozone economy, accusing it of trying to weaken the euro and put America at a disadvantage.
Mr. Trump suggested last week that central banks were in something of an arms race, saying on Twitter that China and Europe were manipulating their currencies to gain an edge over the United States and that the Fed should start doing the same.
“We should MATCH, or continue being the dummies who sit back and politely watch as other countries continue to play their games — as they have for many years!” he wrote.
Central bank officials insist that they are prepared to act aggressively if another recession flares. The E.C.B. stands prepared to stimulate the eurozone, and the Fed is signalling that it could soon cut interest rates to try to get ahead of mounting risks in the United States.
But economists across the globe say central banks can no longer be sole saviours the next time a downturn hits. That reality is colliding with political constraints in the United States and Europe, where lawmakers may prove unable — or unwilling — to quickly roll out expensive stimulus packages.
“Fiscal policy has a much more active role to play, and it is not yet equipped to do so,” Olivier Blanchard, a former International Monetary Fund chief economist, said last month at a central banking forum in Sintra, Portugal, specifically referring to Europe.
When it comes to monetary policy, “surely there is not enough room to respond to even a run-of-the-mill recession,” he said.
Christine Lagarde, who has been nominated to succeed Mario Draghi as head of the European Central Bank and currently heads the International Monetary Fund, has warned that central banks are likely to be the main line of defence given fiscal constraints.
“High public debt and low interest rates have left many countries with limited policy room for manoeuvre,” Ms. Lagarde said in a June blog post. She added that in a downturn, nations would need to use their economic tools together, with “decisive monetary easing and fiscal stimulus wherever possible.”
Global economic growth has crept back after a deep recession, and as recently as early 2018 a coordinated international expansion was underway. But progress has shown cracks in recent months, with trade flows slumping and manufacturing indexes pulling back from Asia to Europe.
The Morgan Stanley economist Chetan Ahya estimates that if Mr. Trump’s trade war with China isn’t resolved and the administration follows through with its threats to increase tariffs, growth could fall enough that “we could wind up in a global recession in about three quarters.” Risks seem to have abated slightly after the recent Group of 20 meeting, where Mr. Trump suspended a tariff escalation and restarted trade talks with China.
But uncertainties persist. Those talks could crumble again, leading to additional import taxes. And beyond America’s trade wars, the threat of a disorderly British withdrawal from the European Union and a continuing slowdown in China pose further risks to international activity.
Those factors prompted Mr. Draghi to strongly signal in June that the central bank was planning to revive stimulus measures it had used during the eurozone debt crisis.
While Mr. Draghi insisted the bank still had “considerable headroom” to buy bonds as a way of pumping money into the economy, some analysts think he acted pre-emptively precisely because he knows the central bank’s capacity is finite. Better to use the bank’s limited resources now when they can still do some good.
In the United States, the Fed is also considering acting sooner rather than later as it tries to judge whether a rate cut is warranted. Emerging research suggests that moving quickly and decisively might be the central bank’s best defence.
While the Fed is in comparatively good shape because it has got rates off rock bottom — they’re at 2.25 to 2.5 percent — that leaves it just half as much room to cut borrowing costs as policymakers had back in 2007. In fact, the Fed’s chair, Jerome H. Powell, has started a yearlong review of just what its options are.
“Having low interest rates really challenges the existing tool kits of central banks,” Mr. Powell said during remarks in New York last month.
Fed officials say they are prepared to revive large-scale bond-buying programs to stoke economic activity when the next downturn comes. The central bank is also contemplating new policy approaches that would leave rates lower for a longer period after a downturn. Recent research suggests such policies would have had benefits — though in some cases small ones — if applied after the 2008 recession.
Japan offers a cautionary example that mere willingness to act doesn’t guarantee success. Haruhiko Kuroda, head of the Bank of Japan, has pulled out all stops to reignite the country’s economy, cutting rates into negative territory and buying government debt and stocks in a bid to bolster markets and stoke confidence. The government has helped, spending readily to stimulate demand.
Despite that effort, inflation remains mired below Japan’s target, which is bad news since it increases the risk of outright deflation should growth weaken.
It is now unclear how much room Mr. Kuroda has for action should a deep downturn come, according to Makoto Hara, the author of a recent book on Japan’s central bank.
“Those taboo policies have become normal,” he said. “They’ve continued them until they became numb to them.”
Central banks in major economies are in their diminished positions largely because sustainable growth, inflation and interest rates have all fallen, trends that are attributable to long-running structural forces in the economy including aging populations and weakening productivity.
In the United States, the nonpartisan Congressional Budget Office sees gross domestic product increases levelling off near 2 percent. The International Monetary Fund estimates that output could drift lower in emerging markets and advanced economies alike.
That has coincided with fiscal restraint across the globe, as governments try to rein in spending and avoid further bloating debt levels.
American politicians restrained government spending after the 2008 recession, even when unemployment remained high and growth was tepid. Recent tax cuts and spending increases, ushered in by Republican lawmakers, have increased the federal debt, but there does not appear to be a broader embrace of deficit spending underway, particularly as the 2020 presidential election approaches.
America’s budget deficit is on track to surpass $1 trillion this year, and some lawmakers are already looking for ways to cut, not add to, federal spending.
Central bank leaders have increasingly warned that their firepower will be limited without help from fiscal authorities.
“Monetary policy will continue to do its job no matter what happens to fiscal capacity,” Mr. Draghi said, just a few days after European leaders largely failed to set up a mechanism to jointly provide stimulus when needed. But aid from governments “would do the same job faster and with less side effects.”
Mr. Powell echoed that sentiment last month. “It’s not good to have monetary policy be the main game in town, let alone the only game in town,” he said.
In: Finance
Assignment 2: Prologue: Sustainability and Corporate Social Responsibility (CSR); Reading pgs. 13-14 of Prologue (Worth 9 pts. total)
In recent years, there has been an increasing awareness and growing interest in sustainability and social responsibility by both consumers and corporations.
Merriam-Webster defines sustainability as the ability of a system to maintain its own viability, endure without giving way, or use resources so they are not depleted or permanently damaged. Or, in other words, it’s the ability of a system to operate in such a manner that it is able to continue indefinitely. The United Nations has defined sustainability as the “ability to meet the needs of the present without compromising the ability of future generations to meet their own needs.” Others have defined sustainability as an expansion of the golden rule: “Do unto others, including future generations, as you would have done unto you.”
Sustainability has three overlapping pillars: environmental, social, and economic. They are not mutually exclusive and are often mutually reinforcing. The pillars are interdependent and none can exist without the other. Many have come to believe that a company will only be viable in the long run if all three of these factors are considered when making business decisions. As a result, many companies, including The United Nations and other public sector organizations, adhere to the notion of a triple bottom line (TBL or 3BL). TBL recognizes that a company’s performance should be viewed not only in terms of its ability to generate economic profits for its owners, as has traditionally been the case, but also by its impact on people (social) and the planet (environmental). Most of the leading companies in the world are now issuing corporate social responsibility (CSR) reports through which they communicate their social and environmental impact. Businesses are now viewing sustainability and social responsibility as opportunities for innovation and business development.
Part 1: Worth 6.5 pts. (1/2 pt. each)
Below are examples of green initiatives recently undertaken at The Coca-Cola Company. For each example, indicate whether this initiative would primarily impact the environmental (EN), social (S), or economic (EC) factors.
1. ______ Provided on-site wellness coaching for employees in the Baltimore sales facility to help to improve employee health.
2. ______ Diverted more than 2.5 million beverage containers from landfills by placing more than 3,000 recycling bins at NASCAR racetracks across the United States.
3. ______ Generated a positive economic benefit in every community in which Cocoa-Cola has facilities in the United States.
4. ______ Reduced beverage calories in U.S. schools by 88% since 2006.
5. ______ Prohibited marketing to children under the age of 12 in its global marketing policy.
6. ______ Deployed hybrid electric trucks, which generate approximately one-third fewer CO2 emissions than a regular truck, in several major U.S. cities.
7. ______ Minimized the amount of water used in the manufacturing and cleaning processes, resulting in a water use savings of over 2 billion liters since 2008.
8. ______ Recruited from a wide cross section of the communities that its services so that the representation of women and minority groups in management can be improved.
9. ______ Displayed total calorie counts on the selection buttons on company-controlled vending machines so that consumers can make informed choices.
10. ______ Generated a profit for the company’s shareholders.
11. ______ Removed the side walls on the corrugated trays that carry products, which resulted in savings of almost 2,400 metric tons of corrugated packaging.
12. ______ Provided training and career training for employees to help to provide a rewarding work life.
13. ______ Reduced the bottle cap size by .5 millimeters and shortened the bottle neck, which resulted in a total plastics savings of more than 11,000 metric tons since 2007.
In: Accounting
Case 6-1 Chobani
Chobani LLC, is a producer and marketer of Greek yogurt. The company was founded in 2005 by Hamdi Ulukaya, an immigrant from Turkey, who recognized the lack of options for high-quality yogurt in the United States. The company is headquartered in Norwich, New York, and it employs approximately 2,000 employees. It operates two manufacturing plants—its original facility in central New York and a second new state-of-the-art facility in Twin Falls, Idaho.
The mission of the company is “To provide better food for more people. We believe that access to nutritious, delicious yogurt made with only natural ingredients is a right, not a privilege. We believe every food maker has a responsibility to provide people with better options, which is why we’re so proud of the way our food is made.” Chobani’s core values are integrity, craftsmanship, innovation, leadership, people, and giving back.
The company’s beginning in 2005 occurred when Hamdi Ulukaya discovered a notice about an old Kraft yogurt factory in South Edmeston that was closed. He decided to obtain a business loan in order to purchase it. Between 2005 and 2007, Ulukaya worked with four former Kraft employees and yogurt master Mustafa Dogan to develop the recipe for Chobani Greek Yogurt. Between 2007 and 2009, the company started to sell its yogurt in local grocery stores including Stop and Shop and ShopRite. By 2010, Chobani Greek yogurt became the best selling Greek yogurt in the United States. The company pursued global expansion by entering Australia in 2011 and the United Kingdom in 2012. In 2013, the company opened its international headquarters in Amsterdam, and Hamdi Ulukaya was named the Ernst and Young World Entrepreneur of the Year.
Chobani has achieved its success in large part due to its ability to innovate in its product lineup. For example, in 2016, it launched a new line of yogurt drinks, more flavors of its Flip mix-in product, and even a concept café in Manhattan.
The company also created a food incubator program that is designed to provide resources, expertise (e.g., brand and marketing, packaging and pricing), and funding to small, young companies that have promising ideas for new natural foods that they aspire to develop.
Although Hamdi Ulukaya has been extremely successful in his founding and establishment of Chobani, he has recognized that there are some key lessons learned from his experience as the head of a young but very successful and industry-leading company. These include the importance of hiring people with functional experience such as marketing, supply chain, logistics, operations, and quality control, as they were essential to the smooth operation of the company. In addition, remembering to respect the competition and not to underestimate it is critical, as Chobani’s two main competitors, Dannon and Yoplait, launched their own Greek yogurt lines, and they were able to win back some of Chobani’s market share over time.
Discussion Questions
5. Think about managing change at a personal level. Why is it so hard for so many people to change their behavior or way of thinking? Are these personal challenges to managing change also relevant to managing change in organizations?
6. What can you learn from Hamdi Ulukaya about what is needed to become a successful entrepreneur?
In: Operations Management
Case 6-1 Chobani
Chobani LLC, is a producer and marketer of Greek yogurt. The company was founded in 2005 by Hamdi Ulukaya, an immigrant from Turkey, who recognized the lack of options for high-quality yogurt in the United States. The company is headquartered in Norwich, New York, and it employs approximately 2,000 employees. It operates two manufacturing plants—its original facility in central New York and a second new state-of-the-art facility in Twin Falls, Idaho.
The mission of the company is “To provide better food for more people. We believe that access to nutritious, delicious yogurt made with only natural ingredients is a right, not a privilege. We believe every food maker has a responsibility to provide people with better options, which is why we’re so proud of the way our food is made.” Chobani’s core values are integrity, craftsmanship, innovation, leadership, people, and giving back.
The company’s beginning in 2005 occurred when Hamdi Ulukaya discovered a notice about an old Kraft yogurt factory in South Edmeston that was closed. He decided to obtain a business loan in order to purchase it. Between 2005 and 2007, Ulukaya worked with four former Kraft employees and yogurt master Mustafa Dogan to develop the recipe for Chobani Greek Yogurt. Between 2007 and 2009, the company started to sell its yogurt in local grocery stores including Stop and Shop and ShopRite. By 2010, Chobani Greek yogurt became the best selling Greek yogurt in the United States. The company pursued global expansion by entering Australia in 2011 and the United Kingdom in 2012. In 2013, the company opened its international headquarters in Amsterdam, and Hamdi Ulukaya was named the Ernst and Young World Entrepreneur of the Year.
Chobani has achieved its success in large part due to its ability to innovate in its product lineup. For example, in 2016, it launched a new line of yogurt drinks, more flavors of its Flip mix-in product, and even a concept café in Manhattan.
The company also created a food incubator program that is designed to provide resources, expertise (e.g., brand and marketing, packaging and pricing), and funding to small, young companies that have promising ideas for new natural foods that they aspire to develop.
Although Hamdi Ulukaya has been extremely successful in his founding and establishment of Chobani, he has recognized that there are some key lessons learned from his experience as the head of a young but very successful and industry-leading company. These include the importance of hiring people with functional experience such as marketing, supply chain, logistics, operations, and quality control, as they were essential to the smooth operation of the company. In addition, remembering to respect the competition and not to underestimate it is critical, as Chobani’s two main competitors, Dannon and Yoplait, launched their own Greek yogurt lines, and they were able to win back some of Chobani’s market share over time.
Discussion
1. Start with a brief (1-2 paragraphs) summary of the case.
2. List the management issues short term & longer term you see in the case.
3.Propose a solution to fix the major current problem and a longer term course of action to prevent the problem.
In: Operations Management
1. True or False: In cluster sampling, subjects are pulled from the population in groups.
2. True or False: Sampling Error is only considered to be committed or caused by the researcher.
5. Which variable is described as the outcome variable?
A. Independent variable
B. Constant Variable
C. Dependent variable
D. Extraneous
6. Which of the following variables are continuous? Select all that apply
A. The number of people in the movie theater
B. weight of a package of hamburger meat
C. number of chairs sold in a month
D. the weight of a child
E. The height of a building
7. Which of the following are quantitative data? Select all that apply.
A. Age of your car
B. Color of your hair
C. Name of your pet
D. Length of your commute to campus
E. Height of your car
F. Height of 20 4 year olds
In: Statistics and Probability
| 9. Following is the sample ticket price for round trip in May: San Francisco to Chicago | ||||||||
| 1. Is there a Corelation in airline ticket prices among United and American Airlines? | ||||||||
| Day | United | AA | 2. Predicting the American Airline ticket Price based on the United Airline price? | |||||
| Monday | 234 | 244 | ||||||
| Tuesday | 230 | 232 | 3. Apply Regression analysis | |||||
| Wednesday | 229 | 231 | 4. Scatter Plot diagram | |||||
| Thursday | 220 | 225 | 5. Business decisions on the airline ticket price. | |||||
In: Statistics and Probability