Questions
using mysql and the schema is provided below. thanks In this lab, you will be manipulating...

using mysql and the schema is provided below. thanks

In this lab, you will be manipulating the database to add, delete and modify the values in the database. Please use a "select * from..." after each query to show the effects of your data manipulation query.

1. The title 'Time Flies' now has a new track, the 11th track 'Spring', which is 150 seconds long and has only a MP3 file. Insert the new track into Tracks table (Don’t hand-code any data for insert that can be looked up from the Titles table).

2. Create a new table called Members2 with the same fields as the Members table. (Use DESCRIBE to check if Members2 table is created).

3. Populate Members2 with the content of the Members table.

4. The area code for Columbus, Ohio has been changed from 277 to 899. Update the homephone and workphone numbers of all members in Members2 table accordingly.

5. Delete all members who work for the artist 'Sonata' from Members2 table.

The following are harder questions. They have to do with either multiple joins on tables, multi insert queries, or using the CASE keywords.

6. Members Doug Finney and Terry Irving are forming a new artist to be called "Doug and Terry." Add this record to the Artists table, using ArtistID 13, the address information of Doug Finney, no web address, today's entry date, and no lead source. Don’t hand-code any data for insert that can be looked up from the Members table.

7. Add the appropriate new records to the XrefArtistsMembers table for the artist "Doug and Terry". Doug is the responsible party. Don’t hand-code any data for insert that can be looked up from the Members table. (This will use the CASE keyword to get it to work. Go back to the Functions ppt to see an example of how CASE works)

DROP TABLES IF EXISTS Artists,Genre, Members, Titles, Tracks,SalesPeople,Studios,XrefArtistsMembers;
DROP TABLES IF EXISTS Authors,Publishers,Titles,Title_Authors,Royalties;
DROP TABLES IF EXISTS Products,Customers,Orders,Order_details;
DROP TABLES IF EXISTS Sailors,Boats,Reserves;

CREATE TABLE Artists (
   ArtistID int,
   ArtistName varchar (50) NOT NULL ,
   City varchar (25) NULL ,
   Region varchar (15) NULL ,
   Country varchar (20) NULL ,
   WebAddress varchar (40) NULL ,
   EntryDate date NULL ,
   LeadSource varchar (10) NULL
);

Insert Into Artists Values(1,'The Neurotics','Peterson','NC','USA','www.theneurotics.com','2003-05-14','Directmail');
Insert Into Artists Values(2,'Louis Holiday','Clinton','IL','USA' ,NULL,'2003-06-03','Directmail');
Insert Into Artists Values(3,'Word','Anderson','IN','USA',NULL,'2003-06-08','Email');
Insert Into Artists Values(5,'Sonata','Alexandria','VA','USA','www.classical.com/sonata','2003-06-08','Ad');
Insert Into Artists Values(10,'The Bullets','Alverez','TX','USA',NULL,'2003-08-10','Email');
Insert Into Artists Values(14,'Jose MacArthur','Santa Rosa','CA','USA','www.josemacarthur.com','2003-08-17','Ad');
Insert Into Artists Values(15,'Confused','Tybee Island','GA','USA',Null,'2003-09-14','Directmail');
Insert Into Artists Values(17,'The Kicks','New Rochelle','NY','USA',NULL,'2003-12-03','Ad');
Insert Into Artists Values(16,'Today','London','ONT','Canada','www.today.com','2003-10-07','Email');
Insert Into Artists Values(18,'21 West Elm','Alamaba','VT','USA','www.21westelm.com','2003-02-05','Ad');
Insert Into Artists Values(11,'Highlander','Columbus','OH','USA',NULL,'2002-08-10','Email');

CREATE TABLE Genre (
   Genre varchar (15)
);

Insert into Genre Values('alternative');
Insert into Genre Values('classical');
Insert into Genre Values('jazz');
Insert into Genre Values('metal');
Insert into Genre Values('R&B');
Insert into Genre Values('rap');
Insert into Genre Values('pop');

CREATE TABLE Members (
   MemberID int ,
   FirstName varchar (25) NULL ,
   LastName varchar (25) NULL ,
   Address varchar (60) NULL ,
   City varchar (25) NULL ,
   Region varchar (15) NULL ,
   PostalCode varchar (10) NULL ,
   Country varchar (20) NULL ,
   HomePhone varchar (16) NULL ,
   WorkPhone varchar (16) NULL ,
   EMail varchar (40) NULL ,
   Gender char (1) NULL ,
   Birthday date NULL ,
   SalesID smallint NULL
);

Insert Into Members Values(10,'Roberto','Alvarez','Rt 1','Anderson','IN','46019','USA','7651552983','7651628837','[email protected]','M','1968-01-18',2);
Insert Into Members Values(31,'Jose','MacArthur','51444 Vine','Santa Rosa','CA','99999','USA','6331289393',Null,'[email protected]','M','1978-06-24',1);
Insert Into Members Values(13,'Mary','Chrisman','1772 East 117th','Fishers','IN','46123','USA','3171820387',Null,'[email protected]','F','1973-03-01',1);
Insert Into Members Values(15,'Warren','Boyer','167 Alamo Dr','Alverez','TX','75601','USA','8221722883',Null,'[email protected]','M','1969-04-19',2);
Insert Into Members Values(32,'Doug','Finney','2020 Dubois','Savannah','GA','30003','USA','9821222929',Null,'[email protected]','M','1963-08-04',3);
Insert Into Members Values(19,'Terry','Irving','18a 7th St','Tybee Island','GA','30004','USA','5411252093',Null,Null,'M','1959-06-22',3);
Insert Into Members Values(21,'Michelle','Henderson','201 Bonaventure','Savannah','GA','30005','USA','8221928273',Null,Null,'F','1964-03-15',2);
Insert Into Members Values(34,'William','Morrow','PO Box 1882','New Rochelle','NY','10014','USA','9981722928',Null,'[email protected]','M','1965-03-17',2);
Insert Into Members Values(29,'Frank','Payne','5412 Clinton','New Rochelle','NY','10014','USA','9981737464',Null,Null,'M','1960-01-17',1);
Insert Into Members Values(35,'Aiden','Franks','167 East 38th','Alverez','TX','75601','USA','8321729283','8321723833','[email protected]','M','1983-09-02',2);
Insert Into Members Values(3,'Bryce','Sanders','PO Box 1292','Peterson','NC','27104','USA','6441824283',Null,'[email protected]','M','1966-06-11',2);
Insert Into Members Values(14,'Carol','Wanner','787 Airport Rd','Alverez','TX','75601','USA','6831223944',Null,Null,'F','1978-11-08',3);
Insert Into Members Values(33,'Brian','Ranier','23 Gregory Lane','London','ONT','M6Y 2Y7 ','Canada','6231842933',Null,Null,'M','1957-10-19',3);
Insert Into Members Values(7,'Marcellin','Lambert','142 Sample Rd','Alexandria','VA','20102','USA','8331929302',Null,'[email protected]','M','1959-11-14',3);
Insert Into Members Values(8,'Caroline','Kale','1515 Stone Church Rd','Allen','VA','20321','USA','7321223742',Null,Null,'F','1956-05-30',3);
Insert Into Members Values(9,'Kerry','Fernandez','15 Midway','Lynchberg','VA','21223','USA','2211229384','2211223939',Null,'M','1962-01-16',1);
Insert Into Members Values(26,'Tony','Wong','115 Maple St','McKensie','ONT','M8H 3T1','Canada','3311692832','3311692822','[email protected]','M','1955-11-01',2);
Insert Into Members Values(18,'Bonnie','Taft','RR4','Alamaba','VT','05303','USA','3721223292',Null,'[email protected]','F','1960-09-21',1);
Insert Into Members Values(20,'Louis','Holiday','15 Davis Ct','Clinton','IL','63882','USA','1451223838',Null,Null,'M','1969-07-27',2);
Insert Into Members Values(22,'Bobby','Crum','RR2','Pine','VT','05412','USA','1831828211',Null,Null,'M','1965-06-10',3);
Insert Into Members Values(28,'Vic','Cleaver','100 Maple','Reston','VT','05544','USA','8111839292',Null,Null,'M','1957-02-10',2);
Insert Into Members Values(30,'Roberto','Goe','14 Gray Rd','Columbus','OH','48110','USA','2771123943',Null,Null,'M','1967-09-12',1);
Insert Into Members Values(36,'Davis','Goodman','2020 Country Rd','Columbus','OH','48318','USA','2771152882','2771128833','[email protected]','M','1980-10-27',2);


CREATE TABLE SalesPeople (
   SalesID smallint ,
   FirstName varchar (20) NOT NULL ,
   LastName varchar (20) NOT NULL ,
   Initials varchar (3) NULL ,
   Base decimal(5,2) NULL,
   Supervisor smallint NUll
);

Insert into SalesPeople Values(1,'Bob','Bentley','bbb',100,4);
Insert into SalesPeople Values(2,'Lisa','Williams','lmw',300,4);
Insert into SalesPeople Values(3,'Clint','Sanchez','cls',100,1);
Insert into SalesPeople Values(4,'Scott','Bull','sjb',Null, Null);  


CREATE TABLE Studios (
   StudioID int,
   StudioName varchar (40) NULL ,
   Address varchar (60) NULL ,
   City varchar (25) NULL ,
   Region varchar (15) NULL ,
   PostalCode varchar (10) NULL ,
   Country varchar (20) NULL ,
   WebAddress varchar (40) NULL ,
   Contact varchar (50) NULL ,
   EMail varchar (40) NULL ,
   Phone varchar (16) NULL ,
   SalesID smallint NULL
);

Insert Into Studios Values(1,'MakeTrax','3000 S St Rd 9','Anderson','IN','46012','USA','www.maketrax.com','Gardner Roberts','[email protected]','7651223000',3);
Insert Into Studios Values(2,'Lone Star Recording','PO Box 221','Davis','TX','76382','USA','www.lsrecords.com','Manuel Austin','[email protected]','8821993748',2);
Insert Into Studios Values(3,'Pacific Rim','681 PCH','Santa Theresa','CA','99320','USA','www.pacrim.org','Harry Lee','[email protected]','3811110033',2);


CREATE TABLE Titles (
   TitleID int ,
   ArtistID int NULL ,
   Title varchar (50) NULL ,
   StudioID int NULL ,
   UPC varchar (13) NULL ,
   Genre varchar (15) NULL
);

Insert Into Titles Values(1,1,'Meet the Neurotics',1,'2727366627','alternative');
Insert Into Titles Values(3,15,'Smell the Glove',2,'1283772282','metal');
Insert Into Titles Values(4,10,'Time Flies',3,'1882344222','alternative');
Insert Into Titles Values(5,1,'Neurotic Sequel',1,'2828830202','alternative');
Insert Into Titles Values(6,5,'Sonatas',2,'3999320021','classical');
Insert Into Titles Values(7,2,'Louis at the Keys',3,'3838227111','jazz');


CREATE TABLE Tracks (
   TitleID int NOT NULL ,
   TrackNum smallint NOT NULL ,
   TrackTitle varchar (50) NULL ,
   LengthSeconds smallint NULL ,
   MP3 smallint NULL ,
   RealAud smallint NULL
);

Insert Into Tracks Values(1,1,'Hottie',233,1,1);
Insert Into Tracks Values(1,2,'Goodtime March',293,1,1);
Insert Into Tracks Values(1,3,'TV Day',305,1,1);
Insert Into Tracks Values(1,4,'Call Me an Idiot',315,1,1);
Insert Into Tracks Values(1,5,'25',402,1,1);
Insert Into Tracks Values(1,6,'Palm',322,1,1);
Insert Into Tracks Values(1,7,'Front Door',192,1,1);
Insert Into Tracks Values(1,8,'Where''s the Rain',175,1,1);
Insert Into Tracks Values(3,1,'Fat Cheeks',352,1,1);
Insert Into Tracks Values(3,2,'Rocky and Natasha',283,1,1);
Insert Into Tracks Values(3,3,'Dweeb',273,1,1);
Insert Into Tracks Values(3,4,'Funky Town',252,1,1);
Insert Into Tracks Values(3,5,'Shoes',182,1,1);
Insert Into Tracks Values(3,6,'Time In - In Time',129,1,1);
Insert Into Tracks Values(3,7,'Wooden Man',314,0,0);
Insert Into Tracks Values(3,8,'UPS',97,0,0);
Insert Into Tracks Values(3,9,'Empty',182,0,0);
Insert Into Tracks Values(3,10,'Burrito',65,0,0);
Insert Into Tracks Values(4,1,'Bob''s Dream',185,1,1);
Insert Into Tracks Values(4,2,'My Wizard',233,1,1);
Insert Into Tracks Values(4,3,'Third''s Folly',352,1,1);
Insert Into Tracks Values(4,4,'Leather',185,1,1);
Insert Into Tracks Values(4,5,'Hot Cars Cool Nights',192,1,1);
Insert Into Tracks Values(4,6,'Music in You',204,1,1);
Insert Into Tracks Values(4,7,'Don''t Care About Time',221,1,1);
Insert Into Tracks Values(4,8,'Kiss',218,1,1);
Insert Into Tracks Values(4,9,'Pizza Box',183,1,1);
Insert Into Tracks Values(4,10,'Goodbye',240,1,1);
Insert Into Tracks Values(5,1,'Song 1',285,1,1);
Insert Into Tracks Values(5,2,'Song 2',272,1,1);
Insert Into Tracks Values(5,3,'Song 3',299,1,1);
Insert Into Tracks Values(5,4,'Song 4',201,1,1);
Insert Into Tracks Values(5,5,'Song 5',198,1,0);
Insert Into Tracks Values(5,6,'Song 6',254,1,0);
Insert Into Tracks Values(5,7,'Song 7',303,1,1);
Insert Into Tracks Values(5,8,'Song 8',230,1,0);
Insert Into Tracks Values(5,9,'Song 8 and 1/2',45,1,0);
Insert Into Tracks Values(6,1,'Violin Sonata No. 1 in D Major',511,1,1);
Insert Into Tracks Values(6,2,'Violin Sonata No. 2 in A Major',438,1,1);
Insert Into Tracks Values(6,3,'Violin Sonata No. 4 in E Minor',821,1,0);
Insert Into Tracks Values(6,4,'Piano Sonata No. 1',493,1,0);
Insert Into Tracks Values(6,5,'Clarinet Sonata in E Flat',399,1,0);
Insert Into Tracks Values(7,1,'I Don''t Know',201,1,0);
Insert Into Tracks Values(7,2,'What''s the Day',332,1,0);
Insert Into Tracks Values(7,3,'Sirius',287,1,0);
Insert Into Tracks Values(7,4,'Hamburger Blues',292,1,0);
Insert Into Tracks Values(7,5,'Road Trip',314,1,0);
Insert Into Tracks Values(7,6,'Meeting You',321,1,1);
Insert Into Tracks Values(7,7,'Improv 34',441,1,1);
Insert Into Tracks Values(7,8,'Hey',288,1,1);


CREATE TABLE XrefArtistsMembers (
   MemberID int NOT NULL ,
   ArtistID int NOT NULL ,
   RespParty smallint NOT NULL
);

Insert into XrefArtistsMembers Values(20,2,1);
Insert into XrefArtistsMembers Values(31,14,1);
Insert into XrefArtistsMembers Values(3,1,1);
Insert into XrefArtistsMembers Values(10,3,1);
Insert into XrefArtistsMembers Values(13,3,0);
Insert into XrefArtistsMembers Values(7,5,1);
Insert into XrefArtistsMembers Values(8,5,0);
Insert into XrefArtistsMembers Values(9,5,0);
Insert into XrefArtistsMembers Values(32,15,0);
Insert into XrefArtistsMembers Values(19,15,1);
Insert into XrefArtistsMembers Values(21,15,0);
Insert into XrefArtistsMembers Values(34,17,1);
Insert into XrefArtistsMembers Values(29,17,0);
Insert into XrefArtistsMembers Values(15,10,1);
Insert into XrefArtistsMembers Values(35,10,0);
Insert into XrefArtistsMembers Values(14,10,0);
Insert into XrefArtistsMembers Values(33,16,1);
Insert into XrefArtistsMembers Values(26,16,0);
Insert into XrefArtistsMembers Values(18,18,1);
Insert into XrefArtistsMembers Values(28,18,0);
Insert into XrefArtistsMembers Values(22,18,0);
Insert into XrefArtistsMembers Values(30,11,1);
Insert into XrefArtistsMembers Values(36,11,0);

show tables;

In: Computer Science

Data Manipulation In this lab, you will be manipulating the database to add, delete and modify...

Data Manipulation

In this lab, you will be manipulating the database to add, delete and modify the values in the database. Please use a "select * from..." after each query to show the effects of your data manipulation query.

1. The title 'Time Flies' now has a new track, the 11th track 'Spring', which is 150 seconds long and has only a MP3 file. Insert the new track into Tracks table (Don’t hand-code any data for insert that can be looked up from the Titles table).

2. Create a new table called Members2 with the same fields as the Members table. (Use DESCRIBE to check if Members2 table is created).

3. Populate Members2 with the content of the Members table.

4. The area code for Columbus, Ohio has been changed from 277 to 899. Update the homephone and workphone numbers of all members in Members2 table accordingly.

5. Delete all members who work for the artist 'Sonata' from Members2 table.

The following are harder questions. They have to do with either multiple joins on tables, multi insert queries, or using the CASE keywords.

6. Members Doug Finney and Terry Irving are forming a new artist to be called "Doug and Terry." Add this record to the Artists table, using ArtistID 13, the address information of Doug Finney, no web address, today's entry date, and no lead source. Don’t hand-code any data for insert that can be looked up from the Members table.

7. Add the appropriate new records to the XrefArtistsMembers table for the artist "Doug and Terry". Doug is the responsible party. Don’t hand-code any data for insert that can be looked up from the Members table. (This will use the CASE keyword to get it to work. Go back to the Functions ppt to see an example of how CASE works)

DROP TABLES IF EXISTS Artists,Genre, Members, Titles, Tracks,SalesPeople,Studios,XrefArtistsMembers;
DROP TABLES IF EXISTS Authors,Publishers,Titles,Title_Authors,Royalties;
DROP TABLES IF EXISTS Products,Customers,Orders,Order_details;
DROP TABLES IF EXISTS Sailors,Boats,Reserves;

CREATE TABLE Artists (
        ArtistID int, 
        ArtistName varchar (50) NOT NULL ,
        City varchar (25) NULL ,
        Region varchar (15) NULL ,
        Country varchar (20) NULL ,
        WebAddress varchar (40) NULL ,
        EntryDate date NULL ,
        LeadSource varchar (10) NULL 
);

Insert Into Artists Values(1,'The Neurotics','Peterson','NC','USA','www.theneurotics.com','2003-05-14','Directmail');
Insert Into Artists Values(2,'Louis Holiday','Clinton','IL','USA' ,NULL,'2003-06-03','Directmail');
Insert Into Artists Values(3,'Word','Anderson','IN','USA',NULL,'2003-06-08','Email');
Insert Into Artists Values(5,'Sonata','Alexandria','VA','USA','www.classical.com/sonata','2003-06-08','Ad');
Insert Into Artists Values(10,'The Bullets','Alverez','TX','USA',NULL,'2003-08-10','Email');
Insert Into Artists Values(14,'Jose MacArthur','Santa Rosa','CA','USA','www.josemacarthur.com','2003-08-17','Ad');
Insert Into Artists Values(15,'Confused','Tybee Island','GA','USA',Null,'2003-09-14','Directmail');
Insert Into Artists Values(17,'The Kicks','New Rochelle','NY','USA',NULL,'2003-12-03','Ad');
Insert Into Artists Values(16,'Today','London','ONT','Canada','www.today.com','2003-10-07','Email');
Insert Into Artists Values(18,'21 West Elm','Alamaba','VT','USA','www.21westelm.com','2003-02-05','Ad');
Insert Into Artists Values(11,'Highlander','Columbus','OH','USA',NULL,'2002-08-10','Email');

CREATE TABLE Genre (
        Genre varchar (15)  
);

Insert into Genre Values('alternative');
Insert into Genre Values('classical');
Insert into Genre Values('jazz');
Insert into Genre Values('metal');
Insert into Genre Values('R&B');
Insert into Genre Values('rap');
Insert into Genre Values('pop');

CREATE TABLE Members (
        MemberID int ,
        FirstName varchar (25) NULL ,
        LastName varchar (25) NULL ,
        Address varchar (60) NULL ,
        City varchar (25) NULL ,
        Region varchar (15) NULL ,
        PostalCode varchar (10) NULL ,
        Country varchar (20) NULL ,
        HomePhone varchar (16) NULL ,
        WorkPhone varchar (16) NULL ,
        EMail varchar (40) NULL ,
        Gender char (1) NULL ,
        Birthday date NULL ,
        SalesID smallint NULL 
);

Insert Into Members Values(10,'Roberto','Alvarez','Rt 1','Anderson','IN','46019','USA','7651552983','7651628837','[email protected]','M','1968-01-18',2);
Insert Into Members Values(31,'Jose','MacArthur','51444 Vine','Santa Rosa','CA','99999','USA','6331289393',Null,'[email protected]','M','1978-06-24',1);
Insert Into Members Values(13,'Mary','Chrisman','1772 East 117th','Fishers','IN','46123','USA','3171820387',Null,'[email protected]','F','1973-03-01',1);
Insert Into Members Values(15,'Warren','Boyer','167 Alamo Dr','Alverez','TX','75601','USA','8221722883',Null,'[email protected]','M','1969-04-19',2);
Insert Into Members Values(32,'Doug','Finney','2020 Dubois','Savannah','GA','30003','USA','9821222929',Null,'[email protected]','M','1963-08-04',3);
Insert Into Members Values(19,'Terry','Irving','18a 7th St','Tybee Island','GA','30004','USA','5411252093',Null,Null,'M','1959-06-22',3);
Insert Into Members Values(21,'Michelle','Henderson','201 Bonaventure','Savannah','GA','30005','USA','8221928273',Null,Null,'F','1964-03-15',2);
Insert Into Members Values(34,'William','Morrow','PO Box 1882','New Rochelle','NY','10014','USA','9981722928',Null,'[email protected]','M','1965-03-17',2);
Insert Into Members Values(29,'Frank','Payne','5412 Clinton','New Rochelle','NY','10014','USA','9981737464',Null,Null,'M','1960-01-17',1);
Insert Into Members Values(35,'Aiden','Franks','167 East 38th','Alverez','TX','75601','USA','8321729283','8321723833','[email protected]','M','1983-09-02',2);
Insert Into Members Values(3,'Bryce','Sanders','PO Box 1292','Peterson','NC','27104','USA','6441824283',Null,'[email protected]','M','1966-06-11',2);
Insert Into Members Values(14,'Carol','Wanner','787 Airport Rd','Alverez','TX','75601','USA','6831223944',Null,Null,'F','1978-11-08',3);
Insert Into Members Values(33,'Brian','Ranier','23 Gregory Lane','London','ONT','M6Y 2Y7 ','Canada','6231842933',Null,Null,'M','1957-10-19',3);
Insert Into Members Values(7,'Marcellin','Lambert','142 Sample Rd','Alexandria','VA','20102','USA','8331929302',Null,'[email protected]','M','1959-11-14',3);
Insert Into Members Values(8,'Caroline','Kale','1515 Stone Church Rd','Allen','VA','20321','USA','7321223742',Null,Null,'F','1956-05-30',3);
Insert Into Members Values(9,'Kerry','Fernandez','15 Midway','Lynchberg','VA','21223','USA','2211229384','2211223939',Null,'M','1962-01-16',1);
Insert Into Members Values(26,'Tony','Wong','115 Maple St','McKensie','ONT','M8H 3T1','Canada','3311692832','3311692822','[email protected]','M','1955-11-01',2);
Insert Into Members Values(18,'Bonnie','Taft','RR4','Alamaba','VT','05303','USA','3721223292',Null,'[email protected]','F','1960-09-21',1);
Insert Into Members Values(20,'Louis','Holiday','15 Davis Ct','Clinton','IL','63882','USA','1451223838',Null,Null,'M','1969-07-27',2);
Insert Into Members Values(22,'Bobby','Crum','RR2','Pine','VT','05412','USA','1831828211',Null,Null,'M','1965-06-10',3);
Insert Into Members Values(28,'Vic','Cleaver','100 Maple','Reston','VT','05544','USA','8111839292',Null,Null,'M','1957-02-10',2);
Insert Into Members Values(30,'Roberto','Goe','14 Gray Rd','Columbus','OH','48110','USA','2771123943',Null,Null,'M','1967-09-12',1);
Insert Into Members Values(36,'Davis','Goodman','2020 Country Rd','Columbus','OH','48318','USA','2771152882','2771128833','[email protected]','M','1980-10-27',2);


CREATE TABLE SalesPeople (
        SalesID smallint ,
        FirstName varchar (20) NOT NULL ,
        LastName varchar (20) NOT NULL ,
        Initials varchar (3) NULL ,
        Base decimal(5,2) NULL,
        Supervisor smallint NUll
);

Insert into SalesPeople Values(1,'Bob','Bentley','bbb',100,4);
Insert into SalesPeople Values(2,'Lisa','Williams','lmw',300,4);
Insert into SalesPeople Values(3,'Clint','Sanchez','cls',100,1);
Insert into SalesPeople Values(4,'Scott','Bull','sjb',Null, Null);      


CREATE TABLE Studios (
        StudioID int,
        StudioName varchar (40) NULL ,
        Address varchar (60) NULL ,
        City varchar (25) NULL ,
        Region varchar (15) NULL ,
        PostalCode varchar (10) NULL ,
        Country varchar (20) NULL ,
        WebAddress varchar (40) NULL ,
        Contact varchar (50) NULL ,
        EMail varchar (40) NULL ,
        Phone varchar (16) NULL ,
        SalesID smallint NULL 
);

Insert Into Studios Values(1,'MakeTrax','3000 S St Rd 9','Anderson','IN','46012','USA','www.maketrax.com','Gardner Roberts','[email protected]','7651223000',3);
Insert Into Studios Values(2,'Lone Star Recording','PO Box 221','Davis','TX','76382','USA','www.lsrecords.com','Manuel Austin','[email protected]','8821993748',2);
Insert Into Studios Values(3,'Pacific Rim','681 PCH','Santa Theresa','CA','99320','USA','www.pacrim.org','Harry Lee','[email protected]','3811110033',2);


CREATE TABLE Titles (
        TitleID int ,
        ArtistID int NULL ,
        Title varchar (50) NULL ,
        StudioID int NULL ,
        UPC varchar (13) NULL ,
        Genre varchar (15) NULL 
);

Insert Into Titles Values(1,1,'Meet the Neurotics',1,'2727366627','alternative');
Insert Into Titles Values(3,15,'Smell the Glove',2,'1283772282','metal');
Insert Into Titles Values(4,10,'Time Flies',3,'1882344222','alternative');
Insert Into Titles Values(5,1,'Neurotic Sequel',1,'2828830202','alternative');
Insert Into Titles Values(6,5,'Sonatas',2,'3999320021','classical');
Insert Into Titles Values(7,2,'Louis at the Keys',3,'3838227111','jazz');


CREATE TABLE Tracks (
        TitleID int NOT NULL ,
        TrackNum smallint NOT NULL ,
        TrackTitle varchar (50) NULL ,
        LengthSeconds smallint NULL ,
        MP3 smallint NULL ,
        RealAud smallint NULL 
);

Insert Into Tracks Values(1,1,'Hottie',233,1,1);
Insert Into Tracks Values(1,2,'Goodtime March',293,1,1);
Insert Into Tracks Values(1,3,'TV Day',305,1,1);
Insert Into Tracks Values(1,4,'Call Me an Idiot',315,1,1);
Insert Into Tracks Values(1,5,'25',402,1,1);
Insert Into Tracks Values(1,6,'Palm',322,1,1);
Insert Into Tracks Values(1,7,'Front Door',192,1,1);
Insert Into Tracks Values(1,8,'Where''s the Rain',175,1,1);
Insert Into Tracks Values(3,1,'Fat Cheeks',352,1,1);
Insert Into Tracks Values(3,2,'Rocky and Natasha',283,1,1);
Insert Into Tracks Values(3,3,'Dweeb',273,1,1);
Insert Into Tracks Values(3,4,'Funky Town',252,1,1);
Insert Into Tracks Values(3,5,'Shoes',182,1,1);
Insert Into Tracks Values(3,6,'Time In - In Time',129,1,1);
Insert Into Tracks Values(3,7,'Wooden Man',314,0,0);
Insert Into Tracks Values(3,8,'UPS',97,0,0);
Insert Into Tracks Values(3,9,'Empty',182,0,0);
Insert Into Tracks Values(3,10,'Burrito',65,0,0);
Insert Into Tracks Values(4,1,'Bob''s Dream',185,1,1);
Insert Into Tracks Values(4,2,'My Wizard',233,1,1);
Insert Into Tracks Values(4,3,'Third''s Folly',352,1,1);
Insert Into Tracks Values(4,4,'Leather',185,1,1);
Insert Into Tracks Values(4,5,'Hot Cars Cool Nights',192,1,1);
Insert Into Tracks Values(4,6,'Music in You',204,1,1);
Insert Into Tracks Values(4,7,'Don''t Care About Time',221,1,1);
Insert Into Tracks Values(4,8,'Kiss',218,1,1);
Insert Into Tracks Values(4,9,'Pizza Box',183,1,1);
Insert Into Tracks Values(4,10,'Goodbye',240,1,1);
Insert Into Tracks Values(5,1,'Song 1',285,1,1);
Insert Into Tracks Values(5,2,'Song 2',272,1,1);
Insert Into Tracks Values(5,3,'Song 3',299,1,1);
Insert Into Tracks Values(5,4,'Song 4',201,1,1);
Insert Into Tracks Values(5,5,'Song 5',198,1,0);
Insert Into Tracks Values(5,6,'Song 6',254,1,0);
Insert Into Tracks Values(5,7,'Song 7',303,1,1);
Insert Into Tracks Values(5,8,'Song 8',230,1,0);
Insert Into Tracks Values(5,9,'Song 8 and 1/2',45,1,0);
Insert Into Tracks Values(6,1,'Violin Sonata No. 1 in D Major',511,1,1);
Insert Into Tracks Values(6,2,'Violin Sonata No. 2 in A Major',438,1,1);
Insert Into Tracks Values(6,3,'Violin Sonata No. 4 in E Minor',821,1,0);
Insert Into Tracks Values(6,4,'Piano Sonata No. 1',493,1,0);
Insert Into Tracks Values(6,5,'Clarinet Sonata in E Flat',399,1,0);
Insert Into Tracks Values(7,1,'I Don''t Know',201,1,0);
Insert Into Tracks Values(7,2,'What''s the Day',332,1,0);
Insert Into Tracks Values(7,3,'Sirius',287,1,0);
Insert Into Tracks Values(7,4,'Hamburger Blues',292,1,0);
Insert Into Tracks Values(7,5,'Road Trip',314,1,0);
Insert Into Tracks Values(7,6,'Meeting You',321,1,1);
Insert Into Tracks Values(7,7,'Improv 34',441,1,1);
Insert Into Tracks Values(7,8,'Hey',288,1,1);


CREATE TABLE XrefArtistsMembers (
        MemberID int NOT NULL ,
        ArtistID int NOT NULL ,
        RespParty smallint NOT NULL 
       );

Insert into XrefArtistsMembers Values(20,2,1);
Insert into XrefArtistsMembers Values(31,14,1);
Insert into XrefArtistsMembers Values(3,1,1);
Insert into XrefArtistsMembers Values(10,3,1);
Insert into XrefArtistsMembers Values(13,3,0);
Insert into XrefArtistsMembers Values(7,5,1);
Insert into XrefArtistsMembers Values(8,5,0);
Insert into XrefArtistsMembers Values(9,5,0);
Insert into XrefArtistsMembers Values(32,15,0);
Insert into XrefArtistsMembers Values(19,15,1);
Insert into XrefArtistsMembers Values(21,15,0);
Insert into XrefArtistsMembers Values(34,17,1);
Insert into XrefArtistsMembers Values(29,17,0);
Insert into XrefArtistsMembers Values(15,10,1);
Insert into XrefArtistsMembers Values(35,10,0);
Insert into XrefArtistsMembers Values(14,10,0);
Insert into XrefArtistsMembers Values(33,16,1);
Insert into XrefArtistsMembers Values(26,16,0);
Insert into XrefArtistsMembers Values(18,18,1);
Insert into XrefArtistsMembers Values(28,18,0);
Insert into XrefArtistsMembers Values(22,18,0);
Insert into XrefArtistsMembers Values(30,11,1);
Insert into XrefArtistsMembers Values(36,11,0);

show tables;

In: Computer Science

1.What is qualitative abnormality? a. abnormal symptoms for which statistical norms are established     b. a major deviation...

1.What is qualitative abnormality?

a. abnormal symptoms for which statistical norms are established     b. a major deviation from key social norms    

c. a consistent state of frustration and helplessness    d. symptoms diagnosed in women  e. symptoms of high quality

2. In the abbreviation, DSM, what does the “SM”stand for?

            a. scientific method      b. solo-micro      c. statistical  manual d. serious manic    e.  statistical manic-depressive

3. Your 22-year-old female patient displays symptoms of persistent anxiety for two weeks. As a clinical psychologist, how would you diagnose these symptoms?

a. Generalized Anxiety Disorder  b.  no diagnosis: these symptoms must be present for a longer period

c. phobia of the Othertype     d. hypomanic episode with panic   e. Phobia with anxiety symptoms

4. How many editions of the Diagnostic Statistical Manual of Mental Disorders have been released?

a.  3      b. 4      c.  5      d.  6       e. 7

5. A newly arrived male patient is extremely reluctant to undergo a simple procedure that requires a small incision (cut) on his neck; he fainted when the nurse showed him a digital picture of the proposed operation. If you know that this patient has a long history of phobic reactions, what type of phobia are you dealing with right now?

            a. neck-and-face phobia    b. nurse/doctor phobia  c. irresponsible pain fear

d. situational/medical/operational phobia  e. blood/injection/injury phobia

6. Why have there been several editions of DSM?

a. because the law requires the change every 3 years      b. because of new research and new evidence about disorders      c. because the law requires the change every 5 years      d. because different sates use different editions       

e. because some editions are designed for psychiatrists and others are for psychologists

7.Which three diagnostic categories are no longer in use in the United States?

a. phobia, mania, and panic disorder   b. hysteria, mania, and panic disorder     c. hysteria, madness, and neurosis    

d. obsessive-compulsive disorder, phobia, and madness   e. neurosis, phobia, and panic disorder

8.  What is the difference between obsession and compulsions?

a. there is no difference according to DSM   

b.  obsessions are actions, compulsions are thoughts    

c. obsessions are hallucinations, compulsions are delusions    

d. compulsions are hallucinations, obsessions are delusions  

e. obsessions are ideas, compulsions are behaviors  

9.  Which of these categories does not belong to the known types of OCD?

            a. Cheaters      b. Checkers   c. Doubters    d. Hoarders       e. Counters

10. People with this type of OCD accumulate enormous amount of things of relatively low value they do not need to have and will likely never use.

a. storage people   b. accumulators    c. hoarders   d. value jets   e. keepers

11. One hundred years ago, the symptom “neurasthenia” meant that:

a. a patient had madness    b. a patient developed alcohol addiction         c.  a patient was healthy    

d. a patient had a brain injury         e.  a patient had a weak nervous system

12. Generalized Anxiety Disorder typically occurs as a response to a:

a. pregnancy  b. manic episode    c. major depressive episode   d. weather change   e. life stressor

13. Three major criteria to diagnose mental illness: abnormality, dysfunction and



a. depression     b. illness     c. severe dysfunction   d. emotional problem      e. distress   

14. There is a category of phobias called “Other”. What does this category represent?

a. phobias hat are associated with fear of heights    b. phobias that are mild and do not require medical attention

c. phobias that do not fit in the basic four categories  d.  Phobias causing depression  

e. phobias in other members of your family

15. Phobias of the animal type are most common in this group:

a. children   b. adolescents (16-18)  c. young adults  (20-25)  d. adults (40-55)   e. mature adults (60-)

16. What is the clinical-psychological difference between anxiety and fear?

a. fear is common in women, anxiety is common in men   

b. fear is common in men, anxiety is common in women   

c. fear is specific, anxiety is free-floating    

d. fear refers to the future, anxiety refers to the past    

e. fear is an emotion, anxiety is a form of depression

17. What is quantitative abnormality?

a. symptoms diagnosed mostly in women  

b. a state of unreasonable joy    

c. a major deviation from cultural norms    

d. symptoms diagnosed mostly in men   e. abnormal symptoms for which statistical norms are established

18. Certain symptoms of schizophrenia are called “negative” Why?

a. because these symptoms stand for slowing down and withdrawing     b. because these symptoms were described negatively in the media  c.  because if you call them “positive,” some patients could feel bad    d.  because these symptoms are associated with violence  e. because they are viewed as not good for patients’ future

19.Delusion of grandeurwas discussed in class. What is this delusion about?

a. it is another name for hallucinations    b. beliefs about own superpowers and high social status   c. beliefs about being an unimportant person   d. beliefs in being strong and healthy        e. beliefs in being connected with the dead

20. The most common type of hallucinations in patients with symptoms of schizophrenia is:

a.  seeing monsters and demons   b. hearing voices   c. feeling cold    d.  hearing music    e. abdominal pain

21. Why do many people suffering from PTSD start using substances such as alcohol or cocaine?

a. because some doctors prescribe them        b. because people who suffer from PTSD are primarily drug users  

c. because people believe they do not have other means to reduce their painful symptoms      d. because they can be used to treat sleep problems      e. because they have hallucinations and delusions

22. Consider a case: an elderly female patient for many years claims she has multiple physical symptoms; in reality, however, she cannot be diagnosed with any specific illness. What will be the name for her condition?

a. pain disorder  b. dissociative  future   c. Attention deficit disorder   d. somatization disorder     e. dissociative fugue   

23. What do most medical professionals think of Multiple Personality Disorder?

a. most consider it valid and serious disorder       b. most of them deny its existence   c. most specialists say they have never heard of this disorder   d. most consider this disorder a form of depressive disorder      e. some agree, some disagree that this is a valid disorder   

24.Ralf is a 9 year-old boy; he was scared by sound of a thunderstorm in 2015. Nobody was injured and no destruction took place. How likely it is that Ralf, because of this incident, would develop PTSD later in life?

a. very likely    b.  somewhat likely    c. very unlikely   

d. almost certainly, he has already developed a stress-related disorder

25.Delusion of communicationwas discussed in class. What is it?

a. it is another name for hallucinations    b. beliefs that all journalists are demons    c. beliefs in being a communication major      d. beliefs in being connected to other people, God, or the Devil   e. beliefs about knowing many languages

26. Echolalia or echopraxia are symptoms that are common features of:

a.   PTSD   b. Autism    c.  Bipolar Disorder    d. delusion of reference   e. catatonia

27. Why don’tmost professionals such as firefighters, police officers,  and doctors working in emergency rooms develop symptoms of PTSD?  a. because they take medication in the morning   b. because they take special medication once a week c. because they are on therapy  d. because they typically don’t experience intense fear when witnessing traumas   e. because they have a genetic resistance to stress and fear

28. Symptoms such as failure to make eye contact, social withdrawal, lack of spoken language, and repetitive behaviors are among major symptoms of which disorder?

a.  PTSD   b. ADD   c.  ADHD  d. Tourette’s Disorder    e. Autistic Disorder

29.What is the third group of symptoms typically identified in Attention Deficit/Hyperactivity Disorder? (The first one is Inattention, the second is Hyperactivity)

a.  excessive anxiety    b. hallucinations    c. motor tics     d. obsessions and compulsions   e. impulsivity

30. A person witnesses a traumatic event but does notdevelop symptoms of PTSD.  How common is this?

a. this is very unusual: the person must develop a stress disorder   

b. this is unusual: most people develop a stress disorder under these circumstances  

c. this is common: most people in such circumstances don’t develop a stress disorder   

d.  this is common but only in men    e. women almost always develop a stress disorder in such circumstances  

31. People who develop schizophrenia fall under the rule of “three thirds”. What is this rule?

a. the rule explains that why women are not diagnosed with this illness     b.  the rule  explains the negative symptoms of this illness    c. the rule  explains the positive symptoms of this illness   d. the rule predicts how many people would likely to recover from illness   e. the rule explains that why children are not diagnosed with this illness  

32.On this stage of the addiction process, without the substance, the person suffers from pains, anxiety, depression, agitation, sleepiness, anger, or nausea. What is the name of this stage?

a. withdrawal   b. panic attack    c. tolerance   d. degradation    e. shame

33. Which is the most common, typical cause of stress?

a. personal health problems    b. lack of money    c. devotion to a cause   d. cultural adjustment   e. daily hassles

34.Delusion of reference was discussed in class. What is it?

a. beliefs that a person carries a special and very important knowledge of global significance  

b. beliefs that the government wants to kill this person   

c. beliefs about the earth being melted from within as a result of global warming

d. beliefs about the ability to predict scores in football and other sports     

e. beliefs about knowing many languages

35. Attention Deficit Disorder is different from ADHD. What is the difference?     

a. no inattention symptoms in ADHD    b. no positive symptoms in ADD  c. no negative symptoms in ADD   

d. no delusions in ADD   e. no hyperactivity symptoms in ADD

36.Conduct disorder is typically diagnosed in:

a.  women only   b. men only   c. criminals     d. 60-70 year olds           e. children and adolescents      

37. What is the probability that a 44-year old woman develops schizophrenia if she has not have symptoms before?

a.  about 30%    b. about 10%   c. about 5%   d. about 2%   e.  about zero

38. A 14-year-old girl has the following symptoms present for more than 3 years: physically cruel to people, deliberately destroyed others' property, often lies to obtain goods or favors, and has run away from home overnight 5 times. What would be your likely diagnosis?

a. manic episode   b. conduct disorder    c. fighting complex     d. gender violent syndrome    e. power disorder

39. Is it accurate to say that every person with a serious mental illness is insane?  Find the best answer.

a. yes, accurate: any serious mental illness is insanity   

b. yes, accurate but only for schizophrenia, which is the other word for insanity    

c. accurate only for personality disorders, which cause insanity     

d. not accurate because insanity stands for a person’s violent behavior

e. not accurate: insanity only means that a person is not legally responsible for his or her action    

40. Your patient complains about persistent preoccupation with fears of having a serious disease; you learn, however, that this patient’s belief is based on the person’s misinterpretation of her physical symptoms. What would be your diagnosis?

a. hypocrisy        b. hypochondriasis       c. conversion disorder    d. dissociative fugue    e. pain disorder

41. A few decades ago many doctors combined cold baths, laxatives, and bloodletting to treat their mental patients. What was the perceived goal of such treatments?      

a. to demoralize the patient        b. to clean the body of harmful elements      c. to research the placebo effect    

d. to help patient lose weight     e. to punish patients for their misbehavior

42. According to lectures, treating and preventing of suicidal behaviors should be based on at least three general strategies: reducing the intense psychological pain and suffering; expanding the constricted view by helping the individual to see options. What is the third strategy?

a. giving a person money to pay the bills       b. invite a relative from another town or city to come and live with this person   

c. encouraging a person to pull back from a new self-destructive act     d. to suggest a person to change eating habits   

e. encouraging a person to get a job

43.  As a therapist, you explain to your client that her worries are irrational and she must adopt a more realistic view of her life. What kind of a therapy are you using in this case?                        

a. behavioral    b. systematic relaxation    c.  electro-convulsive    d. biomedical      e. cognitive    

44.Dr. Drew Pinsky developed a multi-step program to fight addictive behavior? His therapy is:

a. a combination of cognitive and behavior therapy    

b. a kind of psychoanalytic therapy

c. a type of electroconvulsive treatment

d. a combination of psychoanalysis and electroconvulsive treatment

e. a combination of psychoanalysis and spiritual healing

45. What is the stigma of mental illness?

a. a type of behavioral therapy    b.  a negative view of psychological disorders

c.  a gender bias in diagnosing mental illness d.  a type of cognitive therapy

e. any reserac0based knowledge of mental illness

46.The famous “drug revolution” in treatment of mental illness took place in the:

a. 2001-2003     b. 1990s    c. 1980s   d. 1970s    e. 1960s

47. “The use of spiritual healingcould help your patients in their better understanding of their lives, the importance of positive thinking, hope, compassion, and good will.Which therapeutic approach does this statement reflect?”      a. behavior    b. cognitive    c. psychoanalytic    d. biomedical   e. none of the above

48. What psychotherapy?

a. any form of medical treatment   b. a type of verbal interaction between a clinician and his or her client

c. a form of medical care to treat most violent patients  d. a form of medical care to treat emotional problems

e. a type of treatment involving prescribed drugs

  

49. The Phineas Cage case linked psychological dysfunction with:

a. poverty b. brain injury    c. abuse     d. immigration     e. genetic factors

50. According to psychoanalysis, what triggers initial anxiety in people with serious emotional problems?

a. pregnancy in women and maturity in boys    

b. losing money or a job   

c. a traumatic event during childhood     

d. traumatic event during adulthood   

e. inability to find a good, reliable friend

In: Psychology

Part A: Case study – IKEA Part A of this EMA will be marked out of...

Part A: Case study – IKEA

Part A of this EMA will be marked out of 60 marks. The word limit is 2400 words.

Read the case study, which you can find in the assessment area and on the study planner in Week 23, and answer the following questions:

  1. Using concepts and theories from Block 1, explain why IKEA places high importance on innovation. You should consider how the various business functions within IKEA integrate to facilitate innovation.
  1. Globalisation has created a new and dynamic relationship between the ‘global’ and the ‘local’. Based on your work during Block 2, how would you advise IKEA to balance these two competing perspectives as it continues to pursue its global expansion strategy?
  1. Applying concepts from Block 3, explain how IKEA seeks to nurture long-term value creation.

Part B: Presentation

Part B of the EMA will be marked out of 20 marks.

Drawing on your work with the IKEA case study, create a presentation showing the main opportunities and threats that IKEA face over the next five years. Make sure to address the critical areas of IKEA’s global expansion strategy and its sustainability strategy.

Your presentation should use no more than 6 slides and 300 words. Your first slide should be a title page for your presentation.

IKEA

Introduction

IKEA is an internationally known global brand and pioneering home furnishings retailer. It has grown rapidly since it was founded in Sweden in 1943. Today, it is the world’s largest furniture retailer, recognised for its Scandinavian style.

IKEA carries a range of 9500 products, including home furniture and accessories. This wide range is available in all IKEA stores, and customers can order much of the range online through IKEA’s website. As of June 2019, there are 423 IKEA stores operating in 52 countries (IKEA Group, 2019a). A staggering €38.8 billion ($44.6 billion) worth of IKEA goods were sold in 2018 with a similar projected forecast for 2019 trading (Ringstrom and Dowsett, 2018).

IKEA’s strategy is underpinned by its vision, which it believes is the foundation of its growth. The IKEA vision states they aim ‘to create a better everyday life for the many people’ and ‘to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them’ (IKEA Group, 2019b).

1 Flat-pack pioneers

IKEA is associated with products that are simple, low cost but also stylish. This has given IKEA a very broad appeal to different groups of consumers and ensured that IKEA products appealed in both the business and consumer markets. Starting as early as 1956, the company were the pioneers of flat-pack furniture. This offered a great solution for all sorts of customers who were looking for stylish high quality furniture at an affordable price. The flat-pack approach to furniture design allows IKEA to reduce costs across the supply chain, from initial design, standardised manufacturing of components, to transport costs and warehousing. Part of the approach to cost saving is in store location. IKEA stores are commonly built on the outskirts of cities where business rates and operational costs are cheaper and customers can park easily.

Due to the way IKEA produces and sells its furniture it has also ensured that it is readily available and convenient. Conventional furniture makers often only begin production once an order has been placed by a customer. This means that it can often take several weeks for delivery. By contrast, IKEA’s products are instantly available in their stores and easy to transport home in customers’ own vehicles. The flat-pack business model has continued to be beneficial for IKEA as it allows a further significant cost saving at the end of the value chain. Effectively, IKEA have outsourced the highly costly assembly part of the value chain directly to customers who are willing to trade the extra work of self-assembly for a large saving on the retail price they pay. This helps IKEA maintain high profits.

The IKEA business model is reliant on a highly effective approach to procurement. With 31 trading service offices of procurement staff in 26 countries, IKEA sources from over 1400 worldwide suppliers. With the bulk purchasing power behind IKEA and the large procurement team it is able to negotiate prices between 20% and 40% lower than any of its competitors. Over time, IKEA has demonstrated that it can successfully manage global suppliers while also maintaining the quality of its products, key to maintaining its brand reputation. The network of service offices is crucial to their global procurement activity, as each office is geographically spread out so that they can cultivate strong working relationships with all local suppliers, wherever in the world they happen to be.

IKEA staff also visit all of the suppliers on a regular basis, not only to continue to build relationships with their suppliers but also to build on their quality control processes. As part of this, IKEA is a strong believer that it should only work with ethical suppliers and as such it inspects the working conditions and the social conditions surrounding the factories, ensuring it adds value to the local communities it works with. Some 66 per cent of IKEAs products are sourced from Europe. However, to keep costs down IKEA’s largest supplier is China, which provides 18% of all IKEA products. Production of a single product is spread across multiple suppliers and optimised in order to reduce prices. IKEA also purchases raw materials and hardware in bulk, which is sold to its suppliers to help them keep the final cost down.

IKEA’s supply chain is supported by cutting-edge IT infrastructure. The complexity of the supplier network and the large range of products has meant that over time IKEA has found it necessary to develop its own systems. This is more expensive than buying standard IT systems to manage its stocks. However, this does mean it can manage the demands of stores and ensure effective distribution of its stock between them. Ensuring that nothing stays in storage for long is key to keeping IKEAs inventory costs low as everything is built to shelf rather than built to order like most other furniture manufacturers.

2 Global expansion

IKEA has a long history of expansion beyond its natural markets in Western Europe.

IKEA has always adopted an ethnocentric strategy for internationalisation, weighing up the effect of the local culture against IKEA’s own to select relevant products. In the early days IKEA often ignored local tastes and preferences in favour of keeping costs low, but learned the hard way in the US that this wasn’t appropriate and adapted to the way furniture is purchased there. To do this greater control was handed over to the US subsidiary, allowing them to customise products for the local market. This led to increased costs, but this localisation approach was essential in order to see market growth in the US. This strategy has been repeated in other markets to help IKEA adapt to local culture and purchasing behaviour.

Over recent years, IKEA has been looking for growth by expanding into emerging markets with a growing middle class, such as China and India. In August 2018, the company opened its first Indian store in Hyderabad and saw around 40,000 customers on its first day (TNN, 2018). Further stores are to be opened in Mumbai and Delhi.

In order to remain successful IKEA needs to further adapt its product lines to local demand and ensure that pricing strategy is correct. “We are selling many products from our global portfolio at a lesser cost in India and working on lower margins, but we know the volumes will make up for this,” Amitabh Pande, Strategic Planner at IKEA India said (Das, 2018). On IKEA’s India website, the leading corner sofa-bed is tagged at about 37,500 Indian Rupees, while the same item is sold in the UK for about 43,000 Indian Rupees, representing a significant price difference between the two markets. Average income is still much lower in emerging markets, meaning prices have to be lower, and with many people still only using public transport central city locations are essential. Consequently, IKEA is having to change a traditional part of its business model. In developed markets, customers assemble the furniture themselves. In India this is not common practice, so IKEA has partnered with home services company, UrbanClap, to help customers put together their furniture after purchase (Das, 2018).

The company says it realised localisation of products to suit the needs of Indian families and customers was the key ingredient to win over a market that is extremely sensitive to price. In adapting to the Indian market IKEA undertook more than 1000 home surveys to see how Indians lived (Goel, 2018). “There is nothing more powerful than watching and talking to those people in their natural environment. We watched how they cooked, slept, and sat, and then we thought how we could tweak our existing products to suit them,” an IKEA India spokesman said (Das, 2018). Indian families tend to spend a lot of time together, far higher than global averages. So IKEA added more folding chairs and stools that could serve as flexible seating. Indians are also known to prefer hard mattresses for sleeping, a complete opposite to the global norm, which made IKEA work with its local suppliers to launch such mattresses just for Indian consumers (Goel, 2018).

Sustainable vision

Since it was founded IKEA has always had concern for people and the environment. The IKEA vision ‘to create a better everyday life for the many people’ puts this concern at the heart of the business. IKEA has responded to the public’s rising concern for sustainability in its choice of product range, suppliers, stores and communication. It has also spotted business potential in providing sustainable solutions. IKEA’s concern for people and the environment encourages it to make better use of both raw materials and energy. This keeps costs down and helps the company to reach its green targets and have an overall positive impact on the environment.

To meet its vision IKEA provides many well-designed, functional products for the home. It prices its products low so that as many people as possible can afford to buy them. However, in creating low prices IKEA is not willing to sacrifice its principles. ‘Low price but not at any price’ is what IKEA says. This means it wants its business to be sustainable. IKEA supplies goods and services to individuals in a way that has an overall beneficial effect on people and the environment.

IKEA does not produce its own raw materials, but it needs these to develop its products. Consequently, it works closely with primary sector suppliers to ensure a sustainable impact on the people and the environment in which it operates. IKEA designs its own products. At the design stage, IKEA checks that products meet strict requirements for function, efficient distribution, quality and impact on the environment.

IKEA uses a tool – the ‘e-Wheel’ – to evaluate the environmental impact of its products. The ‘e-wheel’ has several checkpoints, which are divided into five phases: raw material, manufacturing, distribution, use and end of life (IKEA Group, 2019c). This also helps suppliers improve their understanding of the environmental impact of the products they are supplying (see Figure 1).

Figure 1: The e-Wheel

Around 50 per cent of IKEA’s products are made from wood or wood fibres. IKEA ensures that the wood it uses comes from sustainable sources. It also works to ensure that at the end of a product’s life the wood can be recycled. IKEA creates many design solutions to minimise the use of materials. For example:

  • some furniture is made from recycled plastics
  • some rugs are made of material clippings that would otherwise be wasted
  • products such as water cans are designed to be stacked. This means that more can be transported in each load, reducing the number of lorry journeys and therefore lowering fuel costs.

Since 2015 IKEA has reached its goal of phasing out wooden pallets from its global transport network; it now uses only paper pallets and loading ledges. Cotton is used in many of IKEA’s products. Because conventional cotton farming is often harmful to the environment and the people who grow it, IKEA works with the cotton farmers so that 100 per cent of the cotton used is from more sustainable sources certified by the Better Cotton Initiative, of which IKEA is a founding member (IKEA Group, 2015).

Each of these ideas helps IKEA’s products to be more sustainable and reduce the impact on the environment.

A close working relationship with all suppliers is fundamental to IKEA’s sustainability vision. During manufacturing IKEA specifies to its producers that waste should be avoided. Where waste does occur IKEA encourages suppliers to try to use it in the manufacture of other products. IKEA has a code of conduct called the IKEA Way of Purchasing Home Furnishing Products (IWAY). This contains minimum rules and guidelines that help manufacturers to reduce the impact of their activities on the environment. The IWAY code of practice expects suppliers to:

  • follow national and international laws
  • not use child labour
  • not use woods and glues from non-sustainable forests
  • reduce their waste and emissions
  • contribute to recycling
  • follow health and safety requirements
  • care for the environment
  • take care of their employees.

A product in use should not have a harmful effect upon consumers or their environment. For example, it should not cause allergies. If it uses energy, it should do so efficiently. When a product comes to the end of its useful life, it should be possible to reclaim or recycle the materials that make up the product. Such materials can then be re-used for making other products. To monitor suppliers, IKEA regularly carries out an IWAY audit. This involves talking to employees and inspecting documents and records. IKEA visits suppliers on-site on a number of occasions to ensure that they are following the code of conduct.

By the end of 2020, IKEA aims to be running on 100 per cent renewable energy. So far, the company has installed more than 700,000 solar panels at IKEA locations around the world and owns approximately 157 wind turbines in Europe and Canada. A further 104 wind turbines are being constructed in the US. Last year, the company committed to rolling out solar across all its Australian east coast stores and warehouses. To date, IKEA has invested €2.5 billion in renewable energy and assisting communities most impacted by climate change (Energy Monitor Worldwide, 2015).

As a global organisation IKEA has chosen to undertake a leadership role in creating a sustainable way of working. IKEA has formed partnerships with UNICEF and other global agencies to combat child labour by raising awareness and addressing the root causes. It has educated suppliers to understand how and why sustainable production is vital. This has helped IKEA differentiate itself from its competitors.

Case study written by Matthew Hinton

In: Operations Management

Human resource management Case Gerald Mahoney was working in the women’s shoe department and doing the...

Human resource management Case

Gerald Mahoney was working in the women’s shoe department and doing the best that he could to sell a fairly expensive pair of boots to a young lady who obviously could afford to shop at a much classier store. For some unfathomable reason, however, she decided to shop at Marcy’s. After a few minutes of trying on several pairs of boots, Gerald was able to gently persuade Ms. Monahan to buy one of the store’s most expensive boots. He rang up the sale and was complimenting himself on his persistence when out of the blue the customer said:

“Why is an obviously highly talented man like you, who has just sold me a pair of shoes I probably don’t need or even want, working at a place like Macy’s? My name is Ms. Monahan, and I am the director of recruiting and training at Home Builders, and I can tell from the way that you have handled this sale that you would make a superb home salesperson. Here’s my card. Why not call me tomorrow morning, and we can arrange a time for you to come in?”

Gerald thanked Ms. Monahan for her kind words and told her he certainly would call her. He called the next day and she seemed quite receptive to his call. She asked him to fax over a resume and said that she would get back to him (or her assistant would), in order to set up an appointment for him to interview with her and some of the key salespeople in the firm. Gerald ended up faxing his resume three days after talking to Ms. Monahan. Her office emailed him with a link to an online blank job application, which he quickly filled out. A nerve-wrecking week went by, and Gerald finally received an appointment for an interview for the following week.

The interview started at 9. a.m.. First, before he met with anyone, Gerald took a battery of tests and filled out a set of questionnaires. The exams included everything from basic math to what

seemed to be an IQ test, to questions about self-image, his honesty, and his preference about the type of work he liked to do. Rather than having a long break for lunch they had a working lunch where HR went through the entire compensation package: a base salary plus commission, medical benefits, and a really good retirement plan where the firm contributed 5% of his salary.

His first interview that afternoon seemed to set the tone for the rest of the day. Gerald had a wonderful interview with the Sales Director, Sam Arden, and found it easygoing, laid-back. Sam, after telling Gerald about the firm and the job, asked Gerald some brief standard questions about his background and sales history and what made Gerald special enough to become a sales associate with Home Builders. Gerald expected these questions and was quite prepared. The next series of questions, however, were very different from anything he had experienced before. Sam would tell him a little story and then ask Gerald what he would do or say if he were the sales associate in the fictional story. No one had ever asked Gerald’s opinion about anything at his prior job and he felt he had finally found a firm that cared about what he thought. Gerald thought he sailed through these scenarios with flying colors.

After the interview with Sam, Gerald was directed to a small conference room where three people who identified themselves as area managers and one person from HR asked him a series of questions about his selling approach, his work habits, and his ability to work with a sales partner. This session was repeated in another room with another three area managers and another person from HRM. Both of these sessions included a series of follow-up questions that Gerald was happy to answer. In both of these interviews after the one with Sam, he was always asked to explain the most difficult sales situation he has ever faced and how he has handled it. However, apparently he was not the only candidate the company was looking at since in the second interview with the area managers and the HRM representative he sat together with a different candidate in the room and both were asked the same questions to which they often had similar but sometimes also very different answers. Gerald felt that his answers were overall much better than the responses of the other candidate. He even felt that the interviewers had to make suggestions to the other person in terms how to answer, basically giving the other candidate only the option to agree or disagree with the suggested answers. They never did this when they asked him questions. At 5 p.m. the last session ended and Sam walked in and told Gerald he would contact him in a week to let him know the decision of Home Builders.

In the days after Gerald left, some HRM personnel of Home Builders screened Gerald’s online profile accessing his Facebook and Twitter as well as Instagram account. From the list of his contact on those three social media HRM randomly picked a few individuals and contacted them in order to get some references. Gerald learned about it only by chance as one of his friends contacted him via email asking if he could respond to Home Builder’s request – Gerald answered affirmative. Later he would find out that ten other of his acquaintances, friends and even a coworker at Marcy’s had been contacted by Home Builders.

A week went by, and Gerald had not heard anything from Home Builders. He finally called and was told that a letter was in the mail to him and he should await arrival. Three days later, and with continued impatience at work and at home, Gerald received the letter. The first word he read, “congratulations”, sent him into an ecstatic frenzy. He then read further and realized that

12

this is not what he was told. Their job offer was commission-based only, and, assuming that medical and dental packages ran about the same cost and that coverage was the same as his current job, Gerald would lose paid vacation time but perhaps gain in terms of contributions to a retirement plan. Gerald though: “This is not the same great deal that I was told about during the interview process! Who sold who in the job?”.

At the same time as Gerald was asking this question to himself, Angie was standing at her (former) desk at Home Builders picking up her personal items and wondering how she had gotten into this mess. At one shoulder was the head of HR and at the other was one of the security officers. They were there to escort her out of the building as soon as she retrieved her personal items. Thinking back, the last hour or so had been a whirlwind. She had come to work like she had for the past several months, maybe a little late and a little hungover, but she was there. Shortly after she had sat down at her desk to start making phone calls, her supervisor had called her into her office. She asked her to accompany her to the HR Manager’s office. Once there, she saw a printout of her Facebook page, but at least they weren’t the postings she first had considered putting up. She was really glad that when she graduated from college she had purged her account of all previous personal pictures.

Angie knew, like all of the other employees, that management had recently been going through some of the social networking sites to review potential recruits before they decided to hire them, but she didn’t know anything about management reviewing current employees’ webpages. Well, she thought, my pages are pretty clean since I was warned about this by career services in college. However, what she saw next really bothered her. There was the highlighted section of her blog from last Thursday. She had forgotten about that! In the post, she had noted that she had a whopping hangover because of the night out on Wednesday and saw her post: “I think I’ll call in sick because I just can’t face working for that idiot with this headache. I’ll take a pill and relax today taking a sunbath”. Well, now they knew that she wasn’t sick. How could she have been that stupid?

As she sat there, she suddenly realized that this was no normal conversation – it looked more like an inquisition. And when the HR manager informed her that the company was going to terminate her employment by today – i.e. right away - and she would be required to pick up her personal belongings right now, she couldn’t believe it. What had happened to freedom of speech? What had happened to a person’s right to have a life outside of work? Could they monitor her personal communications that had nothing to do with work and then use them against her? She wasn’t sure, but she thought that was wrong. Nonetheless, here she was cleaning out her desk with a security guard next to her. She should have been more careful: the internet is full of references to people fired for things that they posted on their personal webpages. And it doesn’t necessarily matter if you set your pages to private. Your friends may still capture comments that you’ve made on their pages without you even knowing about it. In addition, recruiters may use your “friend” list to find people to call for references, and if your friend is unaware of the purpose of the call, they might say something that you’d rather wish they didn’t. Employers can look at who has recommended you on sites such as LinkedIn and may approach those references as well.

As Angie finished packing her personal belonging she noticed that the security guard had filmed her cleaning out her desk. While she was walking to the exit, she already saw the recording being streamed on the video monitors placed all around the corporate headquarters and other employees were watching it and staring at her while she was walked through the crowd followed by the security guard like a criminal. The subtitle of the video said: “This is how we deal with problematic employees!”... This seems to have been a modern version of the medieval pillory punishment which publicly exposed and shamed culprits. Some of her colleagues were also her friends and after her dismissal they did not want to meet her anymore. In the evening after her dismissal she started to have depressions and a first panic attack - both even got more intensive with time passing! A large part of her social network and friendship was cut off as a result and this further pushed her into a severe depression in the months after the incident. Angie soon needed psychoanalytic treatment and antidepressant medication to get by.

Not long ago her career in the company seemed to have been quite bright: she was asked to attend various workshops that were designed to train future junior managers. Apparently, she was in the roster of those employees who may be promoted into leadership positions she thought. Angie was familiarized in one of those workshops with strategic management and business strategies and analyzed her own company’s strategy using Porter’s concept of business strategies. A leadership workshop, as it was called, was also quite interesting: next to some presentations about some leadership theories and HRM issues she would be asked to engage into some role plays – one was about “democratic leadership” and the other about how to discipline subordinates. Now she was the one to be disciplined while she was never in the position to use what she has learned by herself. But, perhaps, at least she learned something in the workshop which will help her to address the way she was dealt with by the company: how they handled her case was not correct, she thought!

While Angie encountered this problem, Nora, one of several supervisors at Home Builders that has 50 sales teams, each with 10 members, was busy with performance evaluation. For this, Nora was supposed to use a graphical rating scale that has four performance indicators (1. Quality of work; 2. Quantity of work; 3. Politeness; 4. Integrity) with a 6 point scale ranging from 6 = (outstanding/best) to 0 = (problematic/poor). Employees will receive a corresponding performance bonus on top of their base pay depending on the rating. If they receive a rating of 1 on all four indicators (= 4) they will receive a 4% bonus and so on (a rating of 0 on the rating scale for all items will, of course, result in a 0% bonus) with a maximum of a 24% bonus pay. Nora can, of course, not observe all employees permanently and, therefore, usually simply looks at the subordinate’s work behavior and work outcome one week before the performance evaluations are due. Nora considers this as a “random sample” for evaluating work behavior and outcome. However, Nora’s subordinates are all aware of the fact that their performance is only monitored that particular week. Nora usually gives all employees scores between 4-5 (4= very good and 5 = excellent) in order to not upset anyone. Nora feels confident that this is fair since all subordinates demonstrated actually very good/excellent work in that particular week. Yet, there are significant differences in performances throughout the year. There are two subordinates in the team, who are actually outperforming any others in the company on all of the indicators!

But Anton has also to deal with another problem: one his subordinates, Carl, has been caught being involved in a scheme of fraudulent sales with a kick-back scheme. Anton is fuming since this particular team member had received a great reference from his previous supervisor - even highlighting the very high moral standard. Fact is that Carl was involved in some illegal schemes even at his previous employer as Anton found out later. The supervisor who provided the excellent reference only did not learn about those activities only since he omitted the regular auditing duties since he was too busy. Anton reports this fact to Ms. Monahan who decides that it is now payback time. Ms. Monahan is aware of the fact that the fraudulent subordinate’s wife is expecting soon to give birth to a child. Ms. Monahan instructs the HRM department specifically to wait to inform Carl about his immediate dismissal on the day when the birth of the new child has been confirmed to make him feel miserable. Of course, as is the practice at Home Builders, a short video clip will be created and screened on the video monitors of the company while Carl will be pictured being escorted outside of the premises by security personnel.

Question: Identify all the HRM issues and carefully analyze them while using relevant concepts and theories you have been familiarized with and suggest how Home Builders could have avoided the various problems.

In: Operations Management

Please include all inputs and outputs in details with pictures: General rules: Create homework, compose specifications...

Please include all inputs and outputs in details with pictures:

General rules: Create homework, compose specifications or any text by using a common document-creation tool, such as MicrosoftÂź Word.

Detailed Hints: Refer to the wwweb or lecture notes for this class to design, implement, and debug solid SW solutions. Be concise, complete, and precise.

Abstract: Compute the performance data for the schedulers of three types of Operating Systems. Do not get scared! Only the timing for each scheduler is of interest. You can compute these timing data by hand or by actually implementing a simulator. Either solution is feasible and permitted. The simulator measures key performance data, such as throughput, wait time, and turn-around time. You may also manually compute these numbers without having to run them in a simulation environment.

If you chose to “manually” compute the data, i.e. without implementing a SW simulator, the amount of “generated performance data” is allowed to be way less detailed than what is suggested here.

One OS is a strict batch system with a non-preemptive First Come First Serve (FCFS) scheduler. The second OS uses a non-preemptive, high-priority first (HPF) scheduler, while the third OS uses a preemptive round robin (RR) scheduler with a variable time-quantum with varying context switch overhead. Design meaningful input data, run them through all schedulers, generate output data, and interpret and discuss the results. To start your simulations, use the sample data from this HW assignment. In addition, provide 2 additional, meaningful input scenarios, more complex than the samples given here.

Detail: HomeWork 1 consists of the following parts with equal weight each:

  • Compute performance data for the scheduler of a non-preemptive FCFS batch system
  • Ditto for a non-preemptive HPF batch system, and
  • Ditto for a preemptive RR scheduler; you’ll vary time quantum and overhead.
  • Invent meaningful input data; run them through your schedulers to produce output
  • Discuss the generated data. Hand in your discussion in typed form

Input: Input to the schedulers is a list of processes, for which you happen to know the execution time in milliseconds. For your program input, each process is represented by a triple of decimal numbers id, time, priority. These multiple processes are scheduled and compete for the CPU resource. Here id is the name of the process; time is the time in milliseconds that process id needs to run to completion, and priority is the priority of process id. A plausible input sample for two processes with process id 1 and process id 4 is:

1          2          3

4          50        6

Depending on the scheduler, priority may be ignored. The meaning of triples is as follows:

1   2 3          process 1 uses 2 milliseconds to run, has priority 3

4 50 6           process 4 uses 50 milliseconds, has priority 6, with 0 being the highest

Use the definitions below to compute for each process Throughput, Wait Time, and Turn-around Time. Compute these for each of the 3 schedulers; also compute the average for all processes.

For the preemptive RR scheduler, vary the time quantum q from 1 to 5 milliseconds (ms). Also, for each q selected, vary the overhead o of a context switch from 0 ms up to q itself. There is no need to vary the o beyond q. When a process scheduled by the RR system has received all time needed to completion, do not add a final o unit in the computation of the total time for that process. Also the first time around, act as if the initial schedule overhead o is 0. Use the sample outputs below as a guide for the detail you should generate for this HW.

Definitions:

Throughput:                    Number of jobs (processes) completed per time unit

Waiting Time:                  The total time a process is in Ready Queue

Average Waiting Time:    Average Waiting Time of n processes is: total waiting time by n

Turn-around Time:          span of time of submission to completion time

       

Example 1:

Enter triples: process id, time in ms, and priority:

For example:

1 12 0

3 9 1

2 99 9

process 1 needs 12 ms and has priority 0, very high,

process 3 needs 9 ms and has priority 1.

and so on ...

1 2 3

2 1 2

Process list in FCFS order as entered:

1 2 3

2 1 2

End of list.

fcfs wait of p1 = 0

fcfs wait of p2 = 2

average wait for 2 procs = 1

fcfs turn-around time for p1 = 2

fcfs turn-around time for p2 = 3

average turn-around for 2 procs = 2.5

fcfs throughput for 2 procs = 0.666667 proc/ms

<><> end FCFS <><>

Process list in HPF order:

2 1 2

1 2 3

End of list.

hpf wait of p2 = 0

hpf wait of p1 = 1

average wait time for 2 procs = 0.5

hpf turn-around for p2 = 1

hpf turn-around for p1 = 3

average turn-around for 2 procs = 2

hpf throughput for 2 procs = 0.666667 proc/ms

<><> end HPF schedule <><>

Process list for RR in order entered:

1 2 3

2 1 2

End of list.

preemptive RR schedule, quantum = 1 overhead = 0

RR TA time for finished p2 = 2, needed: 1 ms, and: 1 time slices.

RR TA time for finished p1 = 3, needed: 2 ms, and: 2 time slices.

RR Throughput, 2 p, with q: 1, o: 0, is: 0.666667 p/ms, or 666.667 p/us

Average RR TA, 2 p, with q: 1, o: 0, is: 2.5

preemptive RR schedule, quantum = 1 overhead = 1

RR TA time for finished p2 = 3, needed: 1 ms, and: 1 time slices.

RR TA time for finished p1 = 5, needed: 2 ms, and: 2 time slices.

RR Throughput, 2 p, with q: 1, o: 1, is: 0.4 p/ms, or 400 p/us

Average RR TA, 2 p, with q: 1, o: 1, is: 4

preemptive RR schedule, quantum = 2 overhead = 0

RR TA time for finished p1 = 2, needed: 2 ms, and: 1 time slices.

RR TA time for finished p2 = 3, needed: 1 ms, and: 1 time slices.

RR Throughput, 2 p, with q: 2, o: 0, is: 0.666667 p/ms, or 666.667 p/us

Average RR TA, 2 p, with q: 2, o: 0, is: 2.5

preemptive RR schedule, quantum = 2 overhead = 1

RR TA time for finished p1 = 2, needed: 2 ms, and: 1 time slices.

RR TA time for finished p2 = 4, needed: 1 ms, and: 1 time slices.

RR Throughput, 2 p, with q: 2, o: 1, is: 0.5 p/ms, or 500 p/us

Average RR TA, 2 p, with q: 2, o: 1, is: 3

preemptive RR schedule, quantum = 2 overhead = 2

RR TA time for finished p1 = 2, needed: 2 ms, and: 1 time slices.

RR TA time for finished p2 = 5, needed: 1 ms, and: 1 time slices.

RR Throughput, 2 p, with q: 2, o: 2, is: 0.4 p/ms, or 400 p/us

Average RR TA, 2 p, with q: 2, o: 2, is: 3.5

<><> end preemptive RR schedule <><>

Example 2:

Enter triples: process id, time in ms, and priority:

For example:

1 12 0

3 9 1

2 99 9

process 1 needs 12 ms and has priority 0, very high,

process 3 needs 9 ms and has priority 1.

and so on ...

1 10 5

2 8 1

3 12 7

Process list in FCFS order as entered:

1 10 5

2 8 1

3 12 7

End of list.

fcfs wait of p1 = 0

fcfs wait of p2 = 10

fcfs wait of p3 = 18

average wait for 3 procs = 9.33333

fcfs turn-around time for p1 = 10

fcfs turn-around time for p2 = 18

fcfs turn-around time for p3 = 30

average turn-around for 3 procs = 19.3333

fcfs throughput for 3 procs = 0.1 proc/ms

<><> end FCFS <><>

Process list in HPF order:

2 8 1

1 10 5

3 12 7

End of list.

hpf wait of p2 = 0

hpf wait of p1 = 8

hpf wait of p3 = 18

average wait time for 3 procs = 8.66667

hpf turn-around for p2 = 8

hpf turn-around for p1 = 18

hpf turn-around for p3 = 30

average turn-around for 3 procs = 18.6667

hpf throughput for 3 procs = 0.1 proc/ms

<><> end HPF schedule <><>

Process list for RR in order entered:

1 10 5

2 8 1

3 12 7

End of list.

preemptive RR schedule, quantum = 1 overhead = 0

RR TA time for finished p2 = 23, needed: 8 ms, and: 8 time slices.

RR TA time for finished p1 = 27, needed: 10 ms, and: 10 time slices.

RR TA time for finished p3 = 30, needed: 12 ms, and: 12 time slices.

RR Throughput, 3 p, with q: 1, o: 0, is: 0.1 p/ms, or 100 p/us

Average RR TA, 3 p, with q: 1, o: 0, is: 26.6667

preemptive RR schedule, quantum = 1 overhead = 1

RR TA time for finished p2 = 45, needed: 8 ms, and: 8 time slices.

RR TA time for finished p1 = 53, needed: 10 ms, and: 10 time slices.

RR TA time for finished p3 = 59, needed: 12 ms, and: 12 time slices.

RR Throughput, 3 p, with q: 1, o: 1, is: 0.0508475 p/ms, or 50.8475 p/us

Average RR TA, 3 p, with q: 1, o: 1, is: 52.3333

preemptive RR schedule, quantum = 2 overhead = 0

RR TA time for finished p2 = 22, needed: 8 ms, and: 4 time slices.

RR TA time for finished p1 = 26, needed: 10 ms, and: 5 time slices.

RR TA time for finished p3 = 30, needed: 12 ms, and: 6 time slices.

RR Throughput, 3 p, with q: 2, o: 0, is: 0.1 p/ms, or 100 p/us

Average RR TA, 3 p, with q: 2, o: 0, is: 26

preemptive RR schedule, quantum = 2 overhead = 1

RR TA time for finished p2 = 32, needed: 8 ms, and: 4 time slices.

RR TA time for finished p1 = 38, needed: 10 ms, and: 5 time slices.

RR TA time for finished p3 = 44, needed: 12 ms, and: 6 time slices.

RR Throughput, 3 p, with q: 2, o: 1, is: 0.0681818 p/ms, or 68.1818 p/us

Average RR TA, 3 p, with q: 2, o: 1, is: 38

preemptive RR schedule, quantum = 2 overhead = 2

RR TA time for finished p2 = 42, needed: 8 ms, and: 4 time slices.

RR TA time for finished p1 = 50, needed: 10 ms, and: 5 time slices.

RR TA time for finished p3 = 58, needed: 12 ms, and: 6 time slices.

RR Throughput, 3 p, with q: 2, o: 2, is: 0.0517241 p/ms, or 51.7241 p/us

Average RR TA, 3 p, with q: 2, o: 2, is: 50

preemptive RR schedule, quantum = 3 overhead = 0

RR TA time for finished p2 = 23, needed: 8 ms, and: 3 time slices.

RR TA time for finished p1 = 27, needed: 10 ms, and: 4 time slices.

RR TA time for finished p3 = 30, needed: 12 ms, and: 4 time slices.

RR Throughput, 3 p, with q: 3, o: 0, is: 0.1 p/ms, or 100 p/us

Average RR TA, 3 p, with q: 3, o: 0, is: 26.6667

preemptive RR schedule, quantum = 3 overhead = 1

RR TA time for finished p2 = 30, needed: 8 ms, and: 3 time slices.

RR TA time for finished p1 = 36, needed: 10 ms, and: 4 time slices.

RR TA time for finished p3 = 40, needed: 12 ms, and: 4 time slices.

RR Throughput, 3 p, with q: 3, o: 1, is: 0.075 p/ms, or 75 p/us

Average RR TA, 3 p, with q: 3, o: 1, is: 35.3333

preemptive RR schedule, quantum = 4 overhead = 0

RR TA time for finished p2 = 20, needed: 8 ms, and: 2 time slices.

RR TA time for finished p1 = 26, needed: 10 ms, and: 3 time slices.

RR TA time for finished p3 = 30, needed: 12 ms, and: 3 time slices.

RR Throughput, 3 p, with q: 4, o: 0, is: 0.1 p/ms, or 100 p/us

Average RR TA, 3 p, with q: 4, o: 0, is: 25.3333

preemptive RR schedule, quantum = 5 overhead = 0

RR TA time for finished p1 = 20, needed: 10 ms, and: 2 time slices.

RR TA time for finished p2 = 23, needed: 8 ms, and: 2 time slices.

RR TA time for finished p3 = 30, needed: 12 ms, and: 3 time slices.

RR Throughput, 3 p, with q: 5, o: 0, is: 0.1 p/ms, or 100 p/us

Average RR TA, 3 p, with q: 5, o: 0, is: 24.3333

some outputs I have to cut because Chegg say the question is long

In: Computer Science

1. How much of a problem do you believe the policy of not disclosing errors to patients might be? Can you envision circumstances in which this would create ongoing problems for patients and their families?

 

A Near-Death Experience

I remember everything that happened that day before the surgery was supposed to take place. I remember rolling into the preholding area. I remember telling the anesthesiologist that I was very uncomfortable about the block. He told me not to worry, that he had done it a hundred times. He will tell you now that he has never said that again. In fact, he will tell you that when he saw the list of things I wanted, his immediate reaction was, “She is going to be a pain.” Today, his thinking has changed to, “This is a patient who has some experience and we need to have a conversation before the surgery.” So his practice has changed because of what happened that day.

From the beginning, I had a bad feeling about this surgery. I had signed many consent forms, but this was the first time I had looked at a form and had the word “death” pop out at me. I don’t know why I felt that way, but when I think back I would say to any patient, “If you have a bad feeling, honor that feeling. It does not matter how crazy you feel, honor that bad feeling.”

The last thing I remember is saying goodbye to my husband. Then we went into the preoperative holding area, and that was where they injected the block. The procedure consisted of going in past the blood vessels into the nerve. To do this they have to pull back on the needle; if there is no blood then they are sure they are into the nerve. But when the anesthesiologist pulled back on the needle there was no blood, so he put the medication in, and apparently it went into the blood vessel anyway. What they think happened was that he did not get any blood because it was a broken-down vessel. Bupivacaine is a cardiotoxic drug and within a minute I had a grand mal seizure followed by a full cardiac arrest. They called a cardiac code and started advanced cardiac life support right away, but after 15 minutes I was still unresponsive.

Luckily for me, there just happened to be a doctor there who had experience with this. He knew that the only way to save my life would be to get me onto cardiac bypass right away. Again, things were in my favor that day: there was a cardiac suite already prepared for another patient, with a cardiopulmonary bypass machine primed and ready. They bumped the other patient and within 35 minutes they had opened my chest and had me hooked up to a cardiopulmonary bypass machine so that the medication could be flushed out of my system.

My husband was not even out of the main lobby before I had the cardiac arrest. He got a phone call from the orthopedic surgeon who had stood by in horror watching the whole incident unfold. The surgeon said, “Mr. Kenney, there has been a problem with the anesthesia. We had to crack your wife’s chest; you need to come in.” My husband just dropped the phone and immediately returned. My husband didn’t know where to go, but a woman from admitting recognized him and brought him into a room. He was left alone in a small room until somebody came to get him. I think about that now. Somebody should have been with my husband.

The anesthesiologist and orthopedic surgeon waited for a while before they came to talk to him. As soon as they opened the door my husband physically went after them. He said, “What have you done to my beautiful wife?!” The orthopedic surgeon’s reply was, “It doesn’t look good. We don’t know what the outcome is going to be.”

When I woke up I was on a ventilator in the intensive care unit. No one wanted to talk about what had happened. Someone told me I had had an allergic reaction to the anesthesia. I knew intuitively that was wrong, so right away, as I lay there in the hospital, I felt unsafe and untrusting. That was not a good mental state to be in after what I had been through. My husband did not want to leave my side and did not want anybody near me; I’m sure he was marked by the staff as a difficult family member. I found out years later that they did not ever ask him to leave. They actually changed their practice because they saw that my husband’s voice helped calm me down. I was the first patient to change this practice.

I remember worrying about my children. There was no support for any of my family members. You could see that the staff felt bad for me, but nobody was talking. My orthopedic surgeon could barely look at me. I remember writing a note asking if he had replaced my ankle. He shook his head and looked down. It took me a good week to grasp that my ankle had not been replaced.

I felt abandoned. I had a rewired chest, broken ribs, and I looked as though I had been beaten up. I remember taking that first shower and having somebody wash me because I could not do it and feeling the most vulnerable I had ever felt in my life. I got my chart before I left the hospital and it said right on the front, “Allergy to PENICILLIN and BUPIVACAINE.” That was the route they were going.

Alone at Home

When I left the hospital, I received instructions on caring for my incision and information about a visiting nurse. That was all. I never got a phone call. All I got was a bill. I had had many day surgeries when they would call me the next day and ask how I was doing. This time they almost killed me and I didn’t even get a call.

A week after I got home I received a letter from the anesthesiologist, Dr. van Pelt. I did not know that he had tried to see me several times in the hospital, but that multiple things had stopped that from happening. In the letter he said he was sorry for what had happened and that he believed in open and honest communication. He gave me his home telephone number and cell number. I had no idea that what he was doing was so ahead of the time. My feelings at the time were that this was damage control. I filed the letter, and did not think about it for a long time.

When I got home, Christmas was coming. My kids were all still reacting to what had happened. I was trying to take care of their needs, and I was physically very limited. It was a slow recovery. At the time, I coped by focusing on being thankful to be alive and taking care of my family.

A couple of months later I was feeling better physically. My family and friends thought I had moved on, but I know today that I had not yet processed my emotions. Then, while at a wake for a 14-year-old child, I began to feel guilty. I felt guilty that I got to live and this child had died. It was like the floodgate opened, and every feeling I had been pushing down just came out. I began crying and felt as though I was never going to stop. I remember crying over folding towels. I just felt isolated and alone for months.

I needed a cortisone shot in my right ankle due to severe pain because I had not had the ankle replaced. I made an appointment to see my orthopedic surgeon. I went in and told him that I thought we should talk about what had happened. His entourage left the room and he told me what the day was like for him.

He said, “That day is burned in my memory like the birth of my children, although those were joyful occasions and this was not. Linda, you are a miracle.” By that time everybody was telling me I was a miracle and I did not believe it. He said, “No, Linda, you are a miracle from God,” and he began to cry.

My first reaction was, “What? What are you doing?” But then compassion came over me and I looked at him in a different light. I felt bad for him. It was the first time that anybody had showed me that they cared and that this had had an effect on them, too. As the patient, I needed this. It really made me feel better to see this reaction, but almost at once he stopped the story and would not finish. He got up, walked to the door, and left.

A few days after this meeting I called the hospital to ask if there were other patients I could talk to who had gone through this same thing. I knew I could not be the only one and I needed others to talk to. They never called me back. Months later I called my orthopedic surgeon again and asked whether he thought it would be reasonable for me to invite Dr. van Pelt for coffee. That was when I found out that Dr. van Pelt was no longer in Boston. I felt as though the floor had dropped out from under me. I thought I had missed the opportunity to ever hear the anesthesiologist’s perspective and get closure on our shared event.

Luckily for me, the orthopedic surgeon was very proactive. He reached out to the head of anesthesia department, who contacted Dr. van Pelt. This ultimately led to my phone conversation with Dr. van Pelt, which was wonderful for me because I got to hear how affected he was. I felt as though I finally had gotten to hear the truth from somebody.

I was the first person who had asked him how he was doing. This struck me as so odd. Eventually I met other people who had been on the code team and all they could do was cry. I remember meeting a nursing supervisor who had been taking care of the patient next to me and I told her I often wondered how the other patients going into surgery dealt with seeing this scene unfold right in front of their eyes. She said that for the people who stayed overnight, she went up to see them in their rooms. She took it upon herself to do this all on her own.

I called the hospital and told them that I could not read the writing in the chart, but that I would like to know who everybody was on my code team because I wanted to write them a letter. It was coming up on my 1-year anniversary and I really wanted to thank them for doing their job. I knew that for them it was just their job, but I wanted to articulate how this had affected my family and me and what it meant to us. I never got a phone call back. I have been told that they were just waiting for the lawsuit. The culture at the time was not to speak to anybody involved in a serious adverse event, but I did not know this.

Moving Forward

After a year I wrote a letter to the administration. I said that patients left their facilities all the time after something had gone wrong and asked why we were not supporting them. I offered to help them make the change. I received a letter back a couple of months later. It was very cold and written in legal terms. It made me so angry, I wanted to lash out and hurt them back. I remember thinking, “Now I know why patients sue!”

Then, finally, nearly 2 years after the event, Dr. van Pelt and I met. I was finally able to put a face to the man who was part of an event that had such an impact on my life. We had shared this extremely emotional event and I didn’t even know what he looked like. By this time I had met a number of clinicians and I believed the system had failed us both. I wanted to change that. I remember telling him I wanted to start an organization, although at the time I had no idea what it would look like. MITSS—Medically Induced Trauma Support Services—had a brainstorming brunch in April of 2002, and Dr. van Pelt was one of the many invited guests. This was where we developed the mission of MITSS and ideas for how we would carry it out. Dr. van Pelt was one of the first board members of MITSS.

I was so naïve; I really thought that if I started this organization all the hospitals would send us the people who needed our support. I was so wrong. Three years to the day after my adverse event, I scheduled an appointment with the risk manager of the hospital. I had MITSS brochures and I was going there to see if she would give them to all her patients and family members. I left early, all ready for the meeting, and after I left she called the house canceling the appointment. So can you imagine the look on her face when I showed up? But we have become good friends, and she tells me now that they did not know what to do. They did not know what I wanted. They assumed I wanted something, but all I wanted was to be part of a solution. They could not comprehend that. It has taken years for me to build credibility with this hospital. What struck me was that if we are not acknowledging that these events happen, not doing disclosure or apology, then how can we get to the support piece? It has been a journey. I am now starting to see some progress, but it has been slow.

The institution finally made changes and promised to put our brochures throughout the hospital. But when I would go in, I would find our brochures on the shelves in the closets. Then Dr. van Pelt and I had our pictures on the front page of the Wall Street Journal and suddenly it was a different game. After this publication, I had the opportunity to meet with the hospital, and we were given office space at the hospital. Once I began to learn what the challenges were for the medical community we could look for solutions together, because sometimes they just didn’t see them. They needed the patient’s perspective. It has been a rewarding partnership. I wish people would take the opportunity to embrace their patients when things go wrong because amazing things can happen.

Conclusion

Seven years after the incident described in this chapter, Linda Kenney had her long-postponed ankle replacement surgery. While every effort was made to allay her and her family’s fears before surgery, postoperatively she developed a surgical site infection that required rehospitalization and intravenous vancomycin antibiotics. After more years of acute issues and breakdown in the replaced ankle, Linda finally had the ankle replacement removed and a total ankle fusion in 2014. Her nonprofit organization, MITSS, has continued to grow during this time. It is now entirely consumer-led and is a leading source of information on supporting patients and healthcare professionals following medical harm.

Questions

1. How much of a problem do you believe the policy of not disclosing errors to patients might be? Can you envision circumstances in which this would create ongoing problems for patients and their families?

2. What adverse effects have you seen on clinicians who were involved in a medical error? What do you think could be done to alleviate these adverse effects?

3. Research some of the full-disclosure programs that have been developed and discuss their major components. What barriers do you see to provider disclosure following error? How do full-disclosure programs overcome the barriers to transparency that exist on both sides?

4. Much of this story is a lack of compassion in health care. Do you think there are forces that discourage compassion in day-to-day dealings with patients? If so, how do you think they could be overcome?

5. Which of the core competencies for health professions do you think are most relevant for this case? Why?

In: Nursing

Due to Covid-19 pandemic, stores are temporarily closed, but e-commerce growth in the market remains strong....

Due to Covid-19 pandemic, stores are temporarily closed, but e-commerce growth in the market remains strong. Most of the growth we have seen in athletic footwear, for example, has come from the online channel. Provide your information technology strategy for short-term, mid-term and long term range planning. (Atleast 2-3 pages of word)

CASE STUDY
Source: The Star Online, New Straits Times
THE economy may be slowing and the retail industry is going through a rough patch, but Al-Ikhsan Sports Sdn Bhd believes this is as good a time as any for it to shine. “The economy is soft, even globally. I think Malaysia is fairly stable in that sense. When the economy faces rough weather, that’s when the true strength of retailers can be seen. “When the economy does well, everyone does well. You can hide your inefficiencies and all that. But if you can grow your business when the economy is down, it shows the strength of the company. As the economy gets tougher, Al-Ikhsan will become more relevant,” says chief executive officer Vach Pillutla. At a time when most businesses are looking to downsize their physical presence, Al-Ikhsan is looking at ways to expand its number of outlets. The company currently has 131 stores under five different retail models, namely, the Al-Ikhsan Sports chain (116 outlets), Sports Warehouse (4), Football Republic (6), Sneaker Street (2) and Factory Outlets (3). The homegrown sports retailer has carved a name for itself in the market by selling products from international sporting brands such as Nike, Adidas, Puma and Umbro at an affordable price. Pillutla says it is planning to open 12 to 14 new doors every year, with 80% of its expansion plans focused on the entry- to mid-level concept. Although the retail industry has become increasingly competitive, he notes that the company’s advantage in staying ahead of the pack is its core mission to stay affordable.
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“Our core purpose will keep us going for the next few years. As long as we are able to communicate our core purpose properly to consumers, I think they will keep coming back,” he says. Tapping the bottom As consumers become a little more tight-fisted, retailers have been trying to diversify into either the more premium or niche markets to maintain margins and profitability. Pillutla notes that unlike most emerging markets, the local retail space has two very distinct segments: the high-end and entry-level segments. “Most emerging markets have a very big middle-class segment. It works like a typical pyramid, where the well-heeled consumers make up the smaller segment at the top and the entry level is much bigger. As the economy grows, the middle-class will expand and other consumers will aspire to move up the pyramid. “Malaysia is different in the sense that people are either at the top end or at the entry level. There’s very little middle-class. So brands and retailers who try to stay in the middle of the spectrum don’t do well because consumers who see a middle-class brand are either willing to trade up or trade down. So you either have to be at the upper-end or lower-end of the market, ” he explains. Hence, he believes that there is also money to be made at the bottom of the pyramid. “People at the bottom of the pyramid are also aspirational. They, too, want things and if you can make it affordable for them, you can tap that market. Consumers are the king. So we have to keep our brand focus and give them what they want,” he adds. Although margins may be thinner at the entry-level, Al-Ikhsan has a variety of retail concepts which can be pushed out to meet the needs of the market it is in and grow its volume. Pillutla says its Sports Warehouse brand, for example, which focuses on entry-level consumers, is a concept that still has legs to go, particularly in smaller towns. “Wherever that has a catchment of 50,000 people, we can do any one of our concepts. We started the Warehouse this year and it has shown very strong results so far. We can
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see another 35 to 40 Sports Warehouse outlets over the next three to five years. Our next position is to move down, deeper,” he says. That said, he maintains that Al-Ikhsan also has enough variety of products to cater to a wider range of consumers. “Our stores have products from different brands. We can have prices for certain products that go up to RM600. So while we make products affordable to consumers, we are also able to sell them at a certain level of prices if the brand can command that price. In that way, we can cater to a wider range. “But we always try to stay to our core purpose, to stay affordable. We are about making Malaysia fit and active since 1993 by making brands affordable to consumers. That is our strength and our core purpose. It cannot go away.” Al-Ikhsan was founded by Ali Hassan Mohd Hassan in 1993 in a small shop in Holiday Plaza, Johor. His entrepreneurial pursuit had started earlier on as a student in Universiti Teknologi Malaysia to fund his studies. He sold trinkets and such and managed to graduate with a diploma. When he started the business, he was diligent to ensure that he maximised every opportunity to keep sales going. He built a good rapport with his customers and kept his sports products affordable. Ali Hassan’s success in growing Al-Ikhsan was obvious when the retailer caught the eye of government-linked private equity firm Ekuinas, which bought a 35% stake in the company in 2016. Ali Hassan and his wife still holds the remaining 65% of the company and he has stayed on as its chairman. Pillutla thinks the company is only halfway through “what we are really capable of doing”. As long as the sports industry continues to grow, Al-Ikhsan will be able to grow in tandem. He adds that its retail concepts are also applicable to any emerging market, making it easier for it to expand overseas when the time is right.
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On the horizon Over the next three years, the company will continue to expand into tier-2 and -3 cities. It will also continue its focus on the entry-level concept stores like the Sports Warehouse. Another thing that the company will be paying close attention to in the coming years is its private label. Pillutla hopes to make its private label and licences more relevant to the masses as he views this as a good channel for Al-Ikhsan to have a deeper engagement with its consumers. “We want to create products that consumers want. I think our house brand can grow to be a significant brand pillar for us, maybe making up to 30% of the brands we have,” he says. With these strategies in place, the retailer is aiming to keep its double-digit growth every year – a target that Pillutla says is “absolutely achievable”. “That’s the job of professional CEOs like us. There’s a limit to what founders and entrepreneurs can do for a company because the thing about professional CEOs is that we don’t think from our hearts. “We see opportunities, we look at our current capabilities and we think in terms of how we can build that capability for future growth. We are a bit disconnected, so we don’t make decisions based on emotions. But that is not to say that one is right and one is wrong. It is just a way of working. “In business, you need data and experience to take a very informed action, so that you’ll have stronger chances of success. And we believe we have a formula here,” he says. “The challenge for us is more internal. We are no longer small. And we need to continue to drive and align our people towards our mission. As long as we understand our core, we can have market share,” he says.If all goes well, the company is eyeing listing plans in two to three years’ time. The company’s three concepts – Al-Ikhsan, Football Republic and Sneakers Street – are vital to promote sustainable growth for its retail sports business in order to mitigate the seasonal impact.
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“Our three concepts are catered for entry to mid-level consumers and up to high-end consumers. Football Republic is a specifically designed for personalisation or customisation of football’s boots and attire, targeting professional amateur players or fans”. “Sneakers Street category is a sports lifestyle concept that offers affordability for sneakers and accessories to consumers,” he said. Pillutla said the company aspires to have stability in its business earnings with promising growth for long-term sustainability, while adapting to the current market needs. “We want to aggressively expand our market reach, especially in East Malaysia and outside the country with about eight stores are expected to be opened this year. “For long-term expansion plan, we target to open up to 30 stores by 2021,” he said, adding that this would allow the company to reach about 145 Al-Ikhsan stores nationwide. Pillutla said the company also plans to open 15 Sneakers Street stores in the next three years, with initial four stores to be opened this year, followed by additional five Football Republic stores in the future from the current five stores. He said Al-Ikhsan is currently in the discussion with various parties to expand its business in other market in Southeast Asia region, while providing numerous choices to consumers. “We have ‘reasonable’ allocation for capital expenditure (capex) as it will be financed internally. The cost of each store will typically be depended on its size and location,” he said, citing that it is important for the company to have single-digit or lowest double-digit rent-to-sales ratio. Pillutla said capex should not be extremely high as the company on its self-sustaining mode to generate sustainable earnings, while reducing its debt. The company’s inventories is also important to keep its earnings healthily to avoid inventories not age beyond certain points. “We will also embark on digital platform – Omni Channel – to complement our existing retail stores. This allows customers to choose and buy our products virtually through
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mobile app or online platform. The initiative would also enhance our efficiency and productivity, as it easily helps us to monitor our inventories,” he said. "Our commitment is to keep Malaysia fit and active by making sports affordable for all. We also need to understand consumers well and must change ourselves based on what consumers want,” he said in a media interview here recently. Al-Ikhsan will launch a new e-commerce online platform (website) next month, a move that will help the company become a global player in the sports retail segment. “We are ranked 64th largest sports retailer in the world. Therefore, when consumers look at us, they don’t just perceive us as a Malaysian company but rather benchmark us as a global player,” Pillutla said. “I don’t think, even our founder Tuan Haji Ali, thought that we could reach this stage,” says Vach Pillutla, Chief Executive Officer of Al-Ikhsan from his office at Taman Tun Dr Ismail. The company, with its various concept outlets, is by far the largest sports retailer in Malaysia, commanding over 20 percent market share in the sports equipment, apparel and footwear segment. “Ten million people have walked through our doors every year. To put things into perspective, almost one third of the Malaysian population visited Al-Ikhsan stores.” He expects Al-Ikhsan’s e-commerce platform to contribute about 5.0 per cent of the total sales over three years. “In general, the overall retail sector grows about 4.0 per cent to 5.0 per cent annually, while the sports retail around 8.0 per cent to 9.0 per cent. “Globally, most markets are likely to remain stagnant but I think Malaysia continues to perform quite well in sports retail,” he said. He also said Al-Ikhsan continued to learn about consumers and offered products and services at prices preferred by customers. “As long as we continue to pursue it, we are not worry about competitions. For the next three years, we intend to open up to 14 stores annually in the Peninsular Malaysia with
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concepts including Football Republic and Sneakers Street, depending on the market and catchment to match consumers’ demand,” he said. He did not divulge further on how much capital the company would invest, saying that it had sufficient money to fork out internally. As stated earlier, Ekuiti Nasional Bhd (Ekuinas) acquired a 35 per cent stake in Al-Ikhsan in July 2016 for RM68.6 million. Ekuinas chief executive officer Syed Yasir Arafat Syed Abd Kadir said the first two years since the partnership with Al-Ikhsan were about stabilising the company, in particular improving its back-end support. “We need to ensure that we have strong back-end processes before exploring growth. We focus on effective resource planning - an inventory software system - as well as execute strategic business plans, recruit the right talent and strengthen existing brands under us,” he said. Syed Yasir Arafat said it was important for the government-linked private equity fund manager to strengthen Al-Ikhsan’s foundation and expand in certain areas, while offering different products not only active brands but promoting in-house products. “We have about 30 brands under Al-Ikhsan. We employ around 1,200 staff and command about 30 per cent local market share in multi-retailer segment.” Syed Yasir added that since Ekuinas invested in Al-Ikhsan, the former had managed to more than recoup its investment. “From Ekuinas’ perspective, Al-Ikhsan has strong liquidity and sufficient cashflow to grow, with good inventory management. Hence, Al-Ikhsan doesn’t require further capital injection to expand further,” he added. Al-Ikhsan founder and chairman Ali Hassan Mohd Hassan believes the sports retail business was growing with abundance of opportunities locally. “We are investing about RM1mil in each new outlet, inclusive of renovation and stocks.” Ali Hassan said strengthening the company’s position in the local sports goods retailing segment would discourage foreign companies from taking over the domestic market.
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He said it was important to stop these companies from expanding in Malaysia, as local players should be given the opportunities. He said prospects for sports goods in Malaysia were bright as the goods sold here were the second cheapest in the world after the US. Ali Hassan said by having a formidable presence in the urban and rural areas, it would be almost impossible for foreign sports goods retailers to gain a strong footing here. He said the company catered to customers who were serious in sports and those who were into sports fashion. He said Malaysians were brand conscious and more customers were willing to spend money on branded items. “Previously, there was a huge pressure from the sports brand principals as they demanded for growth based on the global trend. “Similarly, they expected growth from Al-Ikhsan in Malaysia due to opportunities in sight. Hence, we decided to partner with Ekuinas to support our future growth and become more competitive,” he said. Through the partnership, Ali Hassan said Al-Ikhsan had undergone due diligence exercise to evaluate the company’s weaknesses and strengthens. “Ekuinas had helped us to find new team members, while consolidating our stores and improving the back-end processes.
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In: Operations Management

TASK back to top In the contemporary management environment, mergers and acquisitions are hot topics; particularly...

TASK

back to top

In the contemporary management environment, mergers and acquisitions are hot topics; particularly as mergers and acquisitions are among the most commonly used strategies for growth. The pitfalls of mergers are well known and well-studied in the management literature.

Yet, there are some fundamental challenges that organisations keep stumbling over. One of them is integration. Preoccupation with due diligence and political factors surrounding merger negotiations too often leaves a crucial piece in the merger puzzle left till it is too late – integration of cultures and structures and people. It is well known today that poor results from mergers can so often be put down to people issues.

In this major assessment you are asked to analyse the following case and answer the questions below using a business report format. Further detail on the format of the business report are provided below.

Questions

Using the knowledge that you have gained from the subject up to and including Topic 9, Managing people, answer the following questions.

  1. Identify and explore the potentially conflicting values in the case using relevant management theory and concepts. Contextualise your answer with reference to literature on integration problems in mergers and acquisitions, with specific reference to people issues. (Maximum 400 words)
  2. Using theory and concepts from mergers and integration studies and with particular reference to structure and senior management, evaluate the process that is being applied to work out the details of the integration. Ground your answer in evidence regarding people and culture issues. (Maximum 700 words)
  3. Make specific recommendations on how these issues of conflicting values can be resolved. (Maximum 500 words)
  4. What process should the two senior executives and their HR teams follow to work through the detailed integration of the top management structure? (Maximum 500 words)
  5. Critique the usefulness or otherwise of the management and organisational theories and practices from this subject that you have applied in analysing this case. (Maximum 400 words).

Case study: Who goes, Who stays?

HBR CASE STUDY

The merger between two pharmaceutical companies generated headlines first-and then headaches. One reason: CEO Steve Lindell has two executives for every available slot. As the stock price drops and talented people head for the exits, he must quickly decide whom to keep and whom to let go. Pass the aspirin.

The merger announcement between DeWaal Pharmaceuticals and BioHealth Labs was front-page, top-of-the-hour news. Pictures of CEO Steve Lindell and chairman Kaspar van de Velde, beaming at each other like long-lost friends at a college reunion, had appeared in newspapers around the world. DeWaal, based in the Netherlands, was an established European drugmaker, and BioHealth, head-quartered just north of New York City, had in recent years become competitive at the highest tier of the market. Both companies made and sold a wide range of drugs, from over-the counter pain relievers to AIDS medications. The new mega company, DeWaal BioHealth, would reap the benefits of scale: it would consolidate plants and staff while having more products to push through its distribution channels. Global headquarters would be in New York, but European manufacturing and sales would continue to be directed from Rotterdam. The new company's combined revenues were projected to top $8 billion.

Now, two months later, the TV cameras had moved on to a new story, and the hard labor of integration loomed. Ever since the announcement, Steve had worked tirelessly on clearing the regulatory hurdles presented by the FTC and the European Commission. And he noted with a mixture of satisfaction and relief that all signs pointed toward approval in the near future.

Yet Steve knew that the anticipated victory would be just the beginning of the game. The real challenge would lie in bringing together two very different cultures as quickly and efficiently as possible. He had to get the new company moving, and the first hurdle-it looked more like a pole vault to Steve-was selecting the top layers of management. At the moment, there were some 120 people on two continents for about 65 senior-level jobs.

Steve drained his third cup of coffee of the morning and checked his watch. Already 11AM. He'd been at the office since 6:30 and in meetings for the past three hours. Now he had an hour to prepare for his meeting with Kaspar at one of New York's finest restaurants. Steve had suggested the company cafeteria, but Kaspar had cajoled him into making the drive to the city by invoking "the need to maintain a civilized life in this frantic world of ours." The meeting's agenda consisted of one item: deciding who would fill the high-level management posts.

The Exodus

As Steve gathered up the mass of papers he would need and stuffed them into his briefcase, there was a knock on his half-open door. Alison Whitney poked her head in and said, "Hey -- got a minute?"

Alison was BioHealth's director of sales and marketing. She had shot into that position a year ago, at age 33, after establishing herself as the company's best sales rep. She had an easy, bantering relationship with Steve and was known for having her finger on the organization's pulse.

"I'm just out the door. What's up?'

"Yeah, I know, I know. You're meeting with Kaspar - that's what I need to talk with you about. I'll keep it brief."

"Fire away."

"I just have to let you know, before you make any final decisions about people, that everyone, and I mean everyone, here at corporate is terrified. Right or wrong, they think Kaspar is calling the shots. We've already lost, what, five people? And I can tell you, without naming names, that I know of three or four others who are weighing serious offers right now. Like I said, I had to let you know."

This wasn't the first time Steve had heard that people were confused about who was in charge. The question had already been raised by a handful of Wall Street analysts and a Business Week reporter. The confusion puzzled and irritated Steve. He was, after all, the leader of the bigger organization and the new company's CEO -- end of story. True, Kaspar had lost none of the drive and charisma that had made him one of Europe's most respected CEOs, but he was 62 and widely presumed to be on the road to retirement. That's why he had agreed to the position of chairman, Steve figured. But Kaspar, with his ability to charm the media, seemed to be creating the perception that he had more say in key decisions facing the new company than Steve.

The two men had worked well together during the merger negotiations. They had carefully traded off the positions at the very top of the new organization. Kaspar had insisted on having his people lead HR, operations in Europe, and global marketing; Steve, in return, had held out for COO, CFO, and head of R&D. Overall, Steve had been happy with the horse trading. The reports of tension between the two were based only on rumors, but Steve knew rumors could sometimes become facts if they are not quickly dispelled. All this flashed through his mind as he faced Alison.

Steve exhaled a big rush of air. He already knew what Alison didn't: that DeWaal's Albert Schenk, based on his extensive knowledge of global markets, was going to take over as the new company's director of sales and marketing. Steve was planning to offer Alison a job as head of U.S. marketing, but he wasn't sure she'd take it. He hated the thought of losing her.

"Look, Alison, do me a favor. Try to calm people down a little. I can guarantee you that our best people will have jobs - I'll see to it one way or another. And remember: this deal is going to be rewarding financially to the people who stay-that includes you. So a little more patience is in order. Okay?"

After a pause, Alison quietly responded. "Sure. Okay. Well" She looked a little embarrassed. "Have a good lunch, and watch out for that third martini."

Steve, who rarely drank, forced a smile. With a short wave, Alison left, and Steve realized that his heart was pounding. Four more people about to leave? That was news he could have done without. Just this morning, he had learned that a leading brokerage was downgrading BioHealth's stock from buy to hold. Steve had watched nervously in the past two months as BioHealth's stock price dipped 20% once the initial euphoria over the deal wore off. He knew that part of the drop was attributable to a general softening of the market, but stories about difficulty with the integration process had certainly contributed. As the company's stock options became less valuable to his managers, could he really be so surprised that people were heading for the exits?

Steve picked up the phone and dialed Bruce Bollinger, who would accompany him into the city.

"Bruce, you ready to roll? Let's go."

Going Nowhere Fast

Bruce had been BioHealth's head of HR. It was widely known that Bruce wasn't exactly a workaholic, but in Steve's eyes he made up for his 9-to-5 mentality in other ways. Bruce and Steve went way back. They had worked together for years, and the two played golf together every chance they got. Bruce was known for his stand-up comedy routines at company functions and his good humor on the golf course, which he treated like a second office. More important, he wasn't afraid to give his boss tough messages when he thought Steve needed to hear them, and he had a way of cutting through the baloney at staff meetings. When Kaspar had insisted on naming Christian Meyer as the head of HR, Steve had reluctantly agreed to demote Bruce to director of corporate training.

As Steve walked out of his office, he heard Brace booming down the hall at him. "Did you see that Tiger pulled out another one? I watched all 18 holes. Unbelievable."

Steve waited for him to catch up and replied, "No, no, I missed it. These days, I'm not sure I'd recognize my clubs if they fell on my big toe."

"You've got to get out more" Bruce continued to analyze Tiger's round until they ducked their heads into the car.

As they drove along, at first rapidly and then haltingly in the stop-and-go traffic of Manhattan, Steve unburdened himself to Bruce about the tough staffing decisions that lay ahead.

"You know, I don't care what the investment bankers say, I like to go with my gut. I like to look people in the eye and find out what they've really got. And I'm not that impressed with a lot of the people from DeWaal. Somehow our guys just seem to get it, and I can't get a good read on the Dutch. All right, so eight of them have left us already. They don't want to move to New York. They're fearful. Alison tells me that our people are too. I mean, I knew the headhunters would be hovering, but I can't believe they got to Sandy Allen. I always thought she would take my job someday, and what really gets me is that I negotiated hard to get the CFO job for her. Anyway, I'm sympathetic to every someone's fears and I'm trying to be as objective as possible, but ... Brace, help me out here"

Bruce looked up from the interview notes and résumés he'd been flipping through. "I think this meeting today is crucial" he said. "We've got to get resolution on our key people. Don't worry, I'll take on Meyer."

Steve hated to admit it, but Christian Meyer had become a bit of a thorn in his side. He wanted to do a lot of testing of the executives-for IQ, for emotional intelligence, for who knew what else. And he constantly talked about the fairness of the process. Steve's view was that fairness was a noble goal - and one they would strive for - but he had to look at the big picture, And speed, as the market

"We need to get on with this even if we don't make the perfect choices right now, we can fix things later. Meanwhile, we've got to consolidate where we can and get the reps up to speed on all our products."

As they pulled up to the restaurant, Bruce got in a final word. "One more thing: if I see Kaspar working his charms on you and getting the upper hand, I'll signal you by knocking over my beer."

Trouble Abroad

They had reserved a small private room at the restaurant. Steve and Bruce were on time; Kaspar and Christian, staying at nearby hotel, walked in 15 minutes later. After an exchange of pleasantries, the four sat down and ordered.

Steve, remembering what he'd been told about European corporate etiquette, held back form jumping straight to business. He reminded himself that they had the rest of the afternoon. Still, unlike his counterpart, he wasn't much for small talk -- and Kaspar's discourse ran from the fate of the euro to Quentin Tarantino, from Afro-Cuban music to the problems of reaching the world's poorest people with desperately needed medications.

That last topic, in a roundabout way, finally got them to the task at hand as the coffee arrived. Both DeWaal and BioHealth had several foreign plants, and Steve wanted to nail down which ones would remain open and who would run them.

Steve's plan for Asia went like this: they would close the DeWaal plant in Indonesia, which was redundant, and keep the BioHealth plant in Shanghai. Steve believed it was imperative to maintain a presence in China, and he was prepared to offer someone from DeWaal the number two spot there to sweeten the pill.

Meanwhile, the Dutch company had an operation in Bangalore, India, and the U.S. company had one in Bombay. The Bangalore plant was extremely efficient, and Steve was prepared-in the interests of fairness and despite his fear of seeing the headline "Lindell Caves to van de Velde (Again)" -- to close down the Bombay operation, The question was who to put in charge. The Dutch fellow -- what was his name, Peter Krug? -- had headed up the Bangalore operations for three years, and his resume was impressive. But Steve had a candidate too. Vijay Naipaul, who had been in the United States the past ten years since coming to business school from Delhi, was an ambitious and talented executive. If not for the merger, Steve would have put him in charge of operations at the Bombay plant. Being in charge of India would be his dream job, and Steve had been told by his COO that Vijay might walk if he get the job. Steve hoed that Kaspar wasn't too attached to Krug.

He quickly laid out his thoughts on Asia, hoping to move on to the touchy question of R&D management.

Kaspar looked up from his espresso and broke into a broad grin. "Oh dear, Steve, what are you saying. You know they will have my head in Rotterdam if we close the Indonesia plant-ties to the former colonies and all that. And you know, there are outstanding people running that plant. Really and truly! As for India, well, yes, by all means close the plant, but can we decide so quickly who will run the remaining one? Christian tells me we have a ways to go in the process of deciding such matters -- isn't that so, Christian?"

Steve jumped in . "Well, I'm sure we could find another spot for Krug. Perhaps if he and Naipaul were co-leaders of the Bombay plant...."

He was interrupted by the sound of a beer bottle falling to the floor.

In: Operations Management

1. Please list and discuss the roles played by the concept of new technology as it...

1. Please list and discuss the roles played by the concept of new technology as it relates to the decision to build factory #5: Even if sales volume is flat, profits are low, and interest rates are high, why would a firm desire to build factory #5, at least in theory?

2. What is residential construction and sales volume, exactly? How many housing units are built, and sold, in this country in a typical year (before March, 2020)?

3. What are six of the occupations that are involved in this sector of the economy? That is, when there is a 20% drop in this activity, residential construction and sales volume, which workers lose their jobs? Why?

4. What could our government do to help cause a rise in residential construction and sales volume in our economy? Please list and discuss three actions that our government could take, at least in theory. What are the forces that may cause a rise or a drop in this area of the economy in the next 12 to 24 months?

***those are the lecture you can follow:

+ New Plant and Equipment Construction, Residential Construction and Sales Volume: One of the greatest factors influencing the volume of factory (new plant and equipment) construction is the R&D (research and development) of new technology. Of course, WE HAVE TO BUILD THE NEW FACTORY! In our factory #5 example, the R&D AND CONSTRUCTION of Factory #5 may result in a. a dramatic drop in the cost per unit (the cost per pair of shoes, in our hypothetical) and/or b. The introduction of a product that is
.. NEW! And IMPROVED!, thus causing a rise in Demand, where, if it captures the imagination of the consumer, we may RAISE THE PRICE and increase profits by a great amount. Let’s say that our price per pair currently is $30 per pair, and our cost per pair currently is $27, for a profit of $3 per pair. If a new method of mass producing shoes that saves on labor costs is “invented”, for lack of a better word, we will want and need to build this new factory. Let’s say that Factory #5 lowers the cost per pair to $21 by using less than half of the workers used by Factory #4. We will build this new factory! $30 per pair minus $21 per pair yields a profit of $9 per pair!!!! BUT WE MUST SELL THOSE NEW SHOES!!! If our rivals are building this factory, and we do not
. We will die. (We have rivals) - VERY few firms are true monopolies. Factory #5 may mass produce TWO million pairs of shoes compared to #4 with one million pairs in yearly output. We may build factory #5, then shut down factory #1
 thus resulting in FEWER WORKERS ON OUR PAYROLL
 SAD BUT TRUE
..Our sales could be dropping along with our profits. Interest rates may rise. We will still need to build that factory. Especially if the product mass produced by this new factory causes a rise in Demand. YET THERE IS A FINITE SUPPLY OF LOANABLE FUNDS AND EQUITY FINANCING available, thus, we have a tragedy: some firms are doing so well that they wish to expand---but are denied financing. What is the proper role of the government? The Obama Admin. lent money directly to Tesla in order for them to expand in Fremont. This may be called ‘industrial policy’. It worked out well. If not, Obama may have been a one term President, even though he was an excellent leader by any metric. Yet the government could be criticized for ‘playing favorites’ since THERE IS A FINITE SUPPLY OF FUNDING that the government may access. If the ‘new’ Mercedes Benz assembly plant built in Alabama (yes, this is on U.S. soil) represented a new and improved SUV, then why did this German firm build the plant here? On U.S. soil? Cheaper labor (the U.S. workers make less and have fewer benefits than their German counterparts),---incredible, but true
the firm will enjoy lower distribution costs (all those rich people on the east coast of the U.S. will buy our cars), and it is easier to ship them from Alabama than from Germany, while avoiding any possible hikes in tariffs the Trump Admin may levy NOW OR LATER---- do you trust Trump? Are you feeling lucky today? How about the next 20 years? I mean, your buyers are here on the East Coast, and Alabama offered HUGE tax incentives to Daimler (Mercedes Benz) to build the plant in Alabama instead of South Carolina, home to a BMW plant. Alabama had to ‘outbid’ South Carolina for the new factory. Also, the German firm avoids any and all possible labor disruptions by dockworkers in the U.S.---now, and for the next 20 years. We do not care if the firm’s headquarters are in Germany. If they build the factory on U.S. soil, then the expenditure is part of the Total Spending on U.S. goods and services = C+ I+ G+(X-M) equation. More on this later! “Residential Construction volume and Residential Sales volume” is not just some area of the economy---the Total Spending equation—that we have to study. It is WHERE WE LIVE. It is at the CENTER of OUR NUMBER ONE PROBLEM AS A SOCIETY: LACK OF ‘AFFORDABLE’ HOUSING UNITS. As you may know, government regulations play a huge role is this area of Total Spending. We start with the basic facts: There is a certain volume of new housing units built, about 1.1 million units per year in America (historical average), and total housing units SOLD each year (about 5 million units sold per year, historical average). Fine. Dry. What is the human element? WHO ARE THE SEVEN MILLION PEOPLE (more or less, in a normal year) who have jobs related to the building and the selling of residential units? On the building side, we have home building companies, who buy land, hire workers to assemble parts: lumber, tiles, windows, window coverings, dry wall, plumbing, electrical supplies, cement, dozens of other materials. These parts are made by workers---very labor intensive in many cases. On the ‘selling’ side, we have realtors who represent the buyers, realtors who rep the sellers (often a 100% commission job), title company workers, loan officers at a bank who may be paid a wage plus a bonus IF
.IF and when a deal goes through, termite inspectors, building inspectors, and many many others. THIS IS AN INCREDIBLY LABOR INTENSIVE INDUSTRY---and almost no other industry is more dependent upon the supply of loanable funds. (Capital markets) What forces are at work that may cause a 20% rise, or (possibly) a 50% fall in the volume of residential construction and residential sales activity? STAY TUNED!

+ Residential Construction Volume and Sales Volume: Forces that may cause a rise or fall: Okay! So we have established that roughly 1.1 million housing units are built per year in a normal year (historical average), from mansions to ‘ADUs’—(granny flats, in-law apts., many other names)—ADUs are often built 
.. ‘extralegally’ --- I love that phrase! ---without the proper permits
. And roughly 5 million housing units will be SOLD in a normal year----NOT THIS YEAR---more on that later----. WHAT ARE THE FORCES THAT MAY CAUSE OR INFLUENCE A RISE OR A FALL IN THESE BUSINESS SPENDING CATEGORIES? Okay: home building companies will buy land, employ labor, but LOTS of raw materials (plumbing, electrical, windows, window coverings, drywall, nails, dozens of other items) and use plant and equipment to BUILD HOMES AND SELL THEM FOR A PROFIT. The average house in the U.S. sold for about $350,000 last month. (before the pandemic hit the U.S. on a scale that will change spending patterns)
. Now, some homes in the South and the Midwest may sell for about $250,000---Grand Rapids, Michigan comes to mind------A small townhome in the Canoas Garden area of San Jose may sell for $700,000 (my realtor friend next door just listed one---he’ll get 2.5% of the sale as a commission---or—he’ll get-----nothing (if it does not sell)---he lives on 100% commission. I couldn’t do it. So let’s say a home building company in the central valley will build a home for $400,000 and sell it for $440,000—this is just an example. The company building the homes cannot simply build 8 homes, then 8 more, then 8 more
.. without selling some. With a time lag that may be variable, RESIDENTIAL CONSTRUCTION VOLUME IS TIED TO RESIDENTAIL SALES VOLUME! If home sales volume drops in March, macroeconomic theory, and common sense, will lead one to conclude that residential construction volume will drop 3 months or six months later. Thus, the forces that cause a rise or fall in SALES volume will also be the forces that cause a rise or fall in construction volume—with, in theory, a time lag. Also, in order to build a home, a home builder must apply for building permits. Let’s say that all of a sudden the volume of PERMIT APPLICATIONS tanks---drops in half
. New building volume will definitely drop----with a time lag. This volume is sometimes called a ‘leading economic indicator’. Okay: what causes a rise or fall in home buying (and selling ) volume? 1. ‘THE GENERAL STATE OF THE ECONOMY’. Let’s say that 5 million families—couples, single people, families---let’s say they are couples---are THINKING about buying a condo, (they may or may not)
.which means MOVING out of the situation they live in now
.. (stressful

many couples do fine together---until they buy a condo together

)---perhaps they are living in an apartment and paying $2800 a month in rent---the mortgage on the new home or condo will be a higher amount under our model. WHAT WILL MAKE THEM GIVE THEMSELVES THE ‘GREEN LIGHT’?? In theory, their income must be HIGH
. And RISING
. And EXPECTED TO RISE FURTHER IN THE FUTURE. Let’s say that a certain percentage of these couples, wherever they live in the U.S., will be BARELY ABLE to make the monthly payments---the mortgage---on the home loan. IN THEORY, they must have GREAT EXPECTATIONS regarding their future income. If they---either one of them, loses their job
. Or believe they MAY lose their job
. Or suffers a drop in hours at work
 or BELIEVE that they may soon see a drop in hours at work
. Then they WILL NOT WANT TO TRY TO BUY A HOUSE. Imagine how many people out there were considering buying a house or condo just a month ago
 and now
 no way

 Okay: IF the couple gives themselves the green light (one party is going to be more excited about the plan than the other party, most likely)






.. then








 they must get FINANCING! Let’s do a Midwest example then multiply by 3x for a townhome in San Jose: Let’s say a house costs $250K ($250,000) in Grand Rapids, Michigan. The couple has $50,000 to put down, which is a 20% down payment, which is considered the ‘historic average’ required down payment (a family can buy a house with less money down in some cases---also, each deal is different---also, the government is very much involved in this process, especially for military veterans). A $250,000 house with $50,000 down means this couple must borrow $200,000 from the financial and capital markets—the yearly loan pool. With a historic average 5% interest rate on the loan, including points and fees, this couple will have monthly mortgage payments of about $1200 a month (historic average for this house)
(3x all these numbers for that condo in San Jose). Let’s say that the lending institution---it can be a bank or some other financial entity--- requires that this couple DEMONSTRATE a gross income level of AT LEAST ---AT LEAST---THREE TIMES the monthly mortgage payment---remember, there are other costs associated with living in that house: insurance, property tax and maintenance/repair costs---the roof and the sewer line are the BIG ones. If this couple earns their income by dealing pot on the black market, they may not get loan approval from the bank---which I find interesting----the bank does the ULTIMATE ‘credit check’ on this couple. New mortgage firms make it seem easy and ‘fun’ to apply for a home loan. It is not. This couple, under this model (x3 for San Jose) must earn AT LEAST 3x $1200 a month or at least $3600 a month or about $43,000 a year, (sounds low, I know, I know,,,) to qualify for the loan. THIS IS JUST A MODEL
..Let’s say that all of a sudden interest rates (r) rise from 5% to 7 œ % ----owing to the Fed pursuing ‘contractionary monetary policy” -----(they are doing the OPPOSITE right now, more on this later). The couple, in theory now have monthly payments of about $1800 a month, forcing them to show to a lender gross income of 3x 1800= $5400 a month, or about $63,000 a year, higher than the national median level of income. MANY MANY FAMILIES IN THE U.S. earn over $43,000 a year but under $65,000 a year. A HUGE PERCENTAGE OF BUYERS----OR POTENTIAL BUYERS ---- WHO WOULD HAVE QUALIFIED AT 5% interest now CANNOT QUALIFY at 7 1/2 %. This is an inexact science, but there is NO DOUBT that there would be a huge drop in residential sales volume, immediately, and with a time lag of 3 to 6 to 9 to 12 months, a huge drop in home BUILDING volume as well. So we would see a huge wave of layoffs in ONE sector, followed by a huge wave of layoffs in ANOTHER sector. SO MANY roofers lost their jobs in the 2008 to 2009 recession
.that the industry really never fully recovered, according to some studies. These two industries are VERY dependent on the supply of loanable funds, and interest rates. OTHER FACTORS: TAX POLICY: this couple MAY now ‘deduct’ their monthly mortgage payments and property taxes from their declared income for FIT and SIT purposes—at least in theory. Okay
 it is complicated
 they have to make just the ‘right’ amount of money for it to work, but at least some couples in some parts of the U.S. can subtract the mortgage and the property tax from their declared income for FIT and SIT purposes.. Consult you tax professional! Here is the model: A couple in San Jose making, say, $160,000 MAY be able to deduct some or most of their mortgage payments and their property tax payments from their income------if they are in the 22% FIT bracket and the 9.3 or 10.23% SIT bracket, then “the government will be paying part of their mortgage for them”---in theory. It is complicated. There may be a ‘tax incentive’ for this couple to BUY a condo in san jose instead of renting that same condo in San jose. Why would this couple want to buy a condo in the first place? Why not keep renting? Obviously, if you rent, your landlord can evict you at any time (in theory) and a landlord can in theory conduct a yearly inspection of the property. My friend would call me every year to help him move all of his pot plants because the landlord was coming by. True story. Every year, there were more pot plants. Two of the dumbest things I have ever done: buying a truck
 and telling my friends that I had a truck
.ANOTHER FACTOR: LOCAL GOVERNMENT REGULATIONS! (G REGS) Wow, has this issue been in the news lately! If you want to build a housing unit on YOUR OWN land, you need a PERMIT from the government—possibly several governmental entities in fact
. A homeowner needs a permit to convert her garage into an ‘accessory dwelling unit’---- AND MANY GOVERNMENT ENTITES ARE SAYING NO! Many local governments are very anti growth: Cupertino, Palo Alto, Santa Cruz--- there is a huge battle: our governor states that we need 3.5 million new housing units in our state
. But local authorities are blocking any huge wave of new construction. In order to comply with GOVERNMENT REGULATIONS, a home builder must spend TIME and MONEY---let’s say that 30 years ago it would cost $10,000 and six months to apply for and get approval to build—no lumber, no nails, just approval. Let’s say that now it can cost two years and WELL OVER $100,000. PER UNIT, in some cities
.Over a 30 year time span, in theory, We will see a drop in the volume of residential construction. Another factor: The DEBT and THE DEFICIT: EVEN BEFORE THE PANDEMIC our government on the federal level was borrowing about $1,000 Billion a year form the yearly loan pool, with estimates of it rising to about $1300 Billion a year after this year---now it will be MUCH HIGHER THAN THAT----BUT FOR THE RIGHT REASONS----OUR GOVERNMENT MUST HELP ALL THE PEOPLE WHO HAVE LOST THEIR JOBS. NOW. RIGHT NOW. The DEFICIT--- THE AMOUNT OF MONEY OUR GOVERNMENT BORROWS FROM THE LOAN POOL--- is high, and rising. ‘Crowding Out” is the concept that SOME of that loan money that our G is borrowing would have gone to fund residential construction. In other words, FEWER HOUSING UNITS ARE BUILT EACH YEAR EVERY YEAR since about 1983 owing to the fact that our government has been borrowing ‘too much money’ from the loan pool. It will be getting worse from now on---the government will be borrowing even more each year, and the debt will rise at a faster pace---MUCH MUCH MORE ON THIS LATER. Finally, there are “CHANGES IN OUR CULTURE”: a person, 26 or 27 or 28 years old, might be ‘in the market’ to buy a condo a generation ago. Now, she might have much better ways to spend her money. People in that age group are delaying marriage, delaying family formation, and often delaying buying a condo EVEN THOUGH THEY HAVE THE MONEY. This is their right, of course. But it can help explain, in theory, very slowly, a long term drop in volume in housing starts and housing sales. Buying a house at age 30 and making that last mortgage payment at age 60—or earlier----used to be called ‘The American Dream’. Now, for many Americans, the dream is out of reach.


In: Economics