CASE NO. 4

In 2015 China had 750 million urban commuters, making it the largest commuter market in the world, roughly five times the size of the 150 million U.S. commuter market. However, Chinese car ownership was comparatively low, with only 69 car owners for every 1,000 people living in mainland China versus 786 car owners for every 1,000 people in the United States in 2014. China also had a short supply of taxis. For example, Beijing had 60,000 taxis to cover a population of 11.5 million in 2015. Taxi drivers suffered poor pay, earning even less during rush hour when heavy congestion left them idling in traffic instead of completing fares. As a result, taxi drivers sometimes refused passengers traveling only short distances and elected to take their breaks during times of peak demand (e.g., rush hour). Many urban commuters had no choice but to rely on buses, trains, and bicycles for transportation despite dissatisfaction with the reliability, comfort, and personal space these modes offered.

These factors made China an attractive market for new companies offering ride-sharing and online chauffeuring services. However, ambiguity existed around the legal status of these upstart options. The Chinese government accused companies offering ride-sharing apps of providing illegal taxi services, created checkpoints to fine drivers without commercial taxi licenses, and even conducted raids of ride-share company offices, shutting them down in some cities. Nevertheless, the government also partnered with some local ride app companies to build an integrated online taxi-hailing service for the four major taxi companies in China.

Uber China

Uber entered China in 2013 with a pilot program in Shanghai, the country’s largest city. The ride-hailing app featured the UberBlack brand, the high-end service that delivered luxury sedans for each trip. Consistent with Uber’s process in other global markets, the app assigned drivers to requested rides using its GPS algorithms to find the closest driver. Uber also partnered with Baidu, China’s largest search engine, for maps and GPS and with Alipay, China’s largest mobile payment platform. Baidu’s partnership with Uber represented one of its competitive fronts in its effort to keep pace with the other two leading Chinese internet companies, Alibaba (Alipay’s parent company) and Tencent.

Chinese consumers did not initially warm to UberBlack, complaining about the high price of the service. Instead of contracting with private car owners, as Uber did in the United States, Uber China partnered with local car rental and chauffeur companies in an attempt to sidestep regulatory issues, so the UberBlack rate far exceeded a typical taxi fare for similar distances. As a result, when Uber expanded to Beijing and Shenzen, it did so with UberX, its lower-cost service that relied on mid-size sedans. By June 2015, Uber competed in 11 of the 15 most populous cities on the Chinese mainland, and Uber China represented the largest market for Uber outside of the United States. Uber China logged more than 1 million rides per day in 2015.

To address the needs of price-sensitive consumers, Uber China dramatically reduced its prices on UberX and introduced “People’s Uber” in October 2014. People’s Uber, a sub-brand unique to China, was officially defined as a non-profit ride-sharing program; Uber connected

passengers with drivers but did not receive a portion of the driver’s earnings. (In contrast, Uber kept 20% of the total fee per ride in the United States.) This structure allowed the service to operate legally when the government cracked down on for-profit ride-sharing services. People’s Uber also helped introduce the Uber brand to the masses, with the hope that a portion of passengers would trade up to its for-profit services, UberX and UberBlack. People’s Uber based its fares on the cost of owning and operating a car, which often fell below taxi fares for comparable trips. Drivers also benefited from the People’s Uber fare structure, as they were able to keep the total fare when driving for Uber but had to pay licensing fees when driving a taxi.

In its for-profit offerings, Uber China faced intense competition from local players Didi Chuxing and Yidao, which together controlled more than 89% of the ride-hailing market in 2015. To compete, Uber spent more than $2 billion subsidizing rides for both drivers and passengers. For example, one promotion paid first-time Uber users 30 yuan. Current users of Uber could receive a 10 yuan coupon up to three times a day, and drivers received a 10 yuan reward for completed rides up to five times a day. Although this program obviously attracted both passengers and drivers, it also led to abuse. Passengers and drivers set up fake accounts to skirt the limits on the promotion incentives they could earn. It also initiated a brutal price war with competitors.

In addition to battling for customers and drivers by using price as a weapon, Uber China diversified its services by adding green (hybrid) car services and limousine rentals. As of October 2015, Uber China had built a business valued at more than $8 billion.

Competitors

Didi Chuxing

In 2012, a year before Uber entered China, Didi Dache (“dache” roughly translates to “taxi calling” in Mandarin) was founded as a taxi-hailing app. It built a substantial customer base by establishing relationships with the largest taxi companies in China before branching out to offer ride shares. The company quickly became the leader in the ride-hailing market with 78.3% share by offering aggressive subsidies to both riders and drivers and by acquiring key

rivals.⁴ Specifically, in February 2015, Didi completed a $6 billion partnership with its domestic rival Kuaidi Dache to form Didi Chuxing.

Didi Chuxing’s vision was to be the one-stop travel platform for Chinese consumers, offering an array of sub-branded services named for their specific functions: Didi Taxi (taxi hailing), Didi Fast Ride (sedan ride-share equivalent to UberX), Didi Chauffeur (premium car ride-share equivalent to UberBlack), Didi Carpool, Didi Sub Driver (drivers for one’s own car when one is incapable of driving, such as after drinking), and Didi Bus (online bus booking). To achieve this goal it built partnerships with the three largest technology companies in China. As with Uber, Baidu provided maps for Didi’s app, and Alipay processed the company’s payments. The third key partner was Tencent, China’s largest internet company, which also owned the largest social media platform and the number one messaging service in China (WeChat). Didi users could hail cars with the near-ubiquitous WeChat app and pay with WePay (also from within the app). Unlike Uber’s app, which assigned drivers to passengers’ requests, Didi’s

app relied on drivers to respond to passenger requests. Drivers had the freedom to choose which ride requests to accept and which to refuse. To entice drivers into accepting shorter, less lucrative trips, consumers could add a tip as part of the request. As of 2016, Didi Chuxing logged more than 10 million trips per day and boasted a value of $36 billion.⁵

Yidao

A second Chinese company, Yidao, focused exclusively on its customized chauffeuring service and avoided competing on the basis of price. Yidao partnered with the largest car rental companies in China with the goal of building a platform for rental companies to interface with passengers. Unlike Didi Chuxing’s and Uber’s services, Yidao passengers submitted a request on the app, which then returned a list of drivers who had accepted the order. Passengers then chose a driver based on the detailed information about the driver that the app provided. As of October 2015, Yidao covered 101 cities (24 outside of China), completed more than 40,000 daily chauffeur-driven rides, and had over 4 million active users, with a value of about $1 billion.⁶

The Sale

On August 1, 2016, after spending more than $2 billion (13 billion Chinese yuan) of the $11 billion it had raised globally, Uber sold its Chinese operation to Didi Chuxing. Two years earlier, Travis Kalanick, Uber’s CEO, had sought to invest in Didi, but Cheng Weng, the Beijing-based CEO, spurned the offer. Weng predicted even then that Didi could outmaneuver Uber in China and even unseat it as the leading ride-share company in the world.

The sale involved a share-swap deal whereby Uber and outside investors in Uber China received 20% of the merged company. Through Didi’s ownership stake, the deal also gave Uber an ownership stake in Lyft, its largest U.S. competitor, and Grab Taxi, Uber’s largest rival in Singapore. Didi committed to operating Uber China as a standalone app under the Uber brand in China.

Looking back on Uber’s venture into China few key questions remain. Could Uber have been a successful standalone company if it had adopted a different globalization strategy?

Questions to Answer

1. What made the Chinese market attractive to Uber? Why did Uber believe it could succeed

in China?                                                                                                                

2. What makes Uber truly ‘global’ in its outlook? Do you think technology, and cultural

and political changes affected the orientation of Uber?                             

3. If you look back to the Uber China, what are the possible reasons that you would identify

that shattered the dream of Uber in the Chinese market.           

Assignment 2 Tic-Tac-Toe Game system design

Introduction This document describes the functionalities of the system and its design requirements. As first introduced in the Lab_Exercise_1, Tic-Tac-Toe is a simple game for two players. In this 1 assignment, you will implement a text-based Tic-Tac-Toe (TTT) game system that offers two game modes: 1) two human players playing against each other and 2) one human player playing against a built-in computer player in the game system. Your mission is to ensure the game playing is straightforward and easy to use.

This game is played on the “console.” That is, it is played in a UNIX terminal like in Linux and MACOS or a Windows command window. You are required to perform a storytelling/storyboard analysis to identify different components (also called subsystems) in this game system. Each subsystem corresponds to one specific functionality/role/actor/character depending on how you analyze the interactions within the game system.

For example, the TTT Drawing Subsystem that you implemented in the Lab_Exercise_1 is the subsystem responsible for displaying and drawing the game board during the game. So the functionality of TTT Drawing Subsystem is to show and draw the game board and other complex drawings needed for the game system. It, in fact, should be a collection of functions. The main control of the game system, or, the game host, will invoke these functions when showing some complex drawings, say, the game board, are needed. Another way to describe the TTT Drawing Subsystem is that it functions like a local “library” for the game system.

2 Assignment Requirements
● Functional Requirements
1) The (game) system provides a system welcome message and shows instructions on how to play this game. (10% ) 3
2) The system provides a virtual dice to allow the players to decide the order of playing. (5%)
3) The system has the functionality of two humans to play the game against each other. (10%)
4) The system also has the functionality of one human to play against the built-in computer player. (5%)
5) The system has a built-in computer player that will try to win when winning is possible. (20%)
6) During the game, the system checks and reports the outcome after each move by either player. The outcome could be a win, a draw, or a state of still in progress. (10%)
7) When the user enters the wrong input, the system will reject the input and request a re-submission. (5%)
8) Additional Requirement
○ User interaction consideration: the system should be easy to understand and easy to follow. (10%)
■ The information of the current state/stage of the game is available to the user.
● The current state of the game (i.e., win, draw, or in progress), if available.
● The current game board, if available. ● Whose turn now, if available.
● Other information you think that is necessary for playing.
■ To interact:
● Are the instructions clear?
● Easy to perform the requested infractions without mistakes or confusion?

● Required system execution flow of the game system
1) The system starts with a system welcome message.
2) Explain and provide the system commands to the user. If the user enters an incorrect command, explain and provide the system commands again. Here are the system commands: System Command Action
0 Exit the system
  1 Begin entering a new game
When the system command is 0, then exit the program. When the system command is 1, go to step 3.
3) The system then asks the user to select the game mode. If the user enters an incorrect game mode command, explain and provide the game mode command screen again. Here are the game mode commands:
Game Mode Command Action
  1 The human player plays against the computer player
  2 Two human players play against each other
When the user enters incorrect input, the system will ask the user to re-enter the selection.
4) Next, the system will interact with the user(s) to determine the play order by throwing a virtual dice. Make sure to explain the rule for determining the play order. The play order must be determined after completing this step. Then, go to step 5.
5) The tic-tac-toe game starts. During the game, the players take turns to select the cell he/she/it wants to take over. The system will accept the input from the player each time and then shows the current game board. If there is a win, the system will announce it and then go to step 2. Otherwise, the system will continue until all cells on the game board are filled. When this happens, the system will announce a draw and then go to step 2. When the user enters incorrect input, the system will ask the user to re-enter

Amir Labib gets a reduced rate from his auto insurance company because he represents in his application that he commutes less than ten miles a day to work. Three years later, he and his wife buy a new residence, farther away from work, and he begins a fifteen-mile-a-day commute. The rate would be raised if he were to mention this to his insurance company. The insurance company sees that he has a different address, because they are mailing invoices to his new home. But the rate remains the same. Amir has a serious accident on a vacation to Yellowstone National Park, and his automobile is totaled. His insurance policy is a no-fault policy as it relates to coverage for vehicle damage. Is the insurance company within its rights to deny any payment on his claim? How so, or why not?

In 2009, Peter Calhoun gets a life insurance policy from Northwest Mutual Life Insurance Company, and the death benefit is listed as $250,000. The premiums are paid up when he dies in 2011 after a getaway car being chased by the police slams into his car at fifty miles per hour on a street in suburban Chicago. The life insurance company gets information that he smoked two packs of cigarettes a day, whereas in his application in 2009, he said he smoked only one pack a day. In fact, he had smoked about a pack and a half every day since 1992. Is the insurance company within its rights to deny any payment on his claim? How so, or why not?

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer. Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose a random sample of companies yielded the following data:

B: Percent increase for company 26,25,27, 18, 6, 4, 21, 37

A: Percent increase for CEO 25, 25, 22, 14, −4, 19, 15, 30

Level of significance is 5%

a) What is the value of the sample test statistic? (Round your answer to three decimal places.)

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

At five weather stations on Trail Ridge Road in Rocky Mountain National Park, the peak wind gusts (in miles per hour) for January and April are recorded below.

Level of significance is 1%

b) What is the value of the sample test statistic? (Round your answer to three decimal places.)

Please read the following case study. Submissions should follow the Case Study Rubric (see below).

M.R., a 59-year-old man, has been seen several times complaining of tremor in his hands that eventually made it difficult for him to work as a computer programmer. A diagnosis of essential tremor was made, and he was prescribed propranolol (Inderal) 20 mg twice daily. M.R. had good effects with the drug and had no further problems until the following June, when acute respiratory distress developed while he was picnicking in a state park with his family. On the way to the emergency room, he suffered an apparent respiratory arrest. He was admitted to the hospital and placed in the respiratory intensive care unit. It was found that M.R. had a history of hay fever and allergic rhinitis during the pollen season but had never experienced such a severe reaction.

Question 1: Why did M.R. have such a severe reaction?

Question 2:  What appropriate measures should be taken to ensure that M.R. recovers fully and does not re-experience this event ?

Question 3: What might you want to teach M.R. about this drug and its potential adverse effects?

Question 4: Using layman's terms, how do you explain to M.R. what happened; and how this situation will be avoided in the future.

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All of the following requirements must be present to potentially receive full points for the Case Studies:

Include:

• Introduction
• Statement / Summary of the Problem
• Solutions or Recommendations / Answers to the questions
• Minimum of 3 scholarly references (less than 5 years old)

- Must be a minimum of 2 pages (not including title page or reference page)

Our firm’s “Attorney-­?Client Access Policy” specifies that unless it’s an emergency, our clients can gain access to one of our attorneys either by scheduling a telephone appointment or else by scheduling an in­?office appointment. We do not tell clients we’ll call them back “within 24 hours”. Instead we schedule telephone appointments for a date and time certain.

We define an “emergency” as being a situation where a person’s death is imminent, the police are trying to interrogate a client, or when someone is in the act of doing something that threatens the client’s safety. We tell our clients that if their physical safety is at risk they should call 911 before calling our office. Still, as you should be able to imagine if you’re the right candidate for this position, the occasional worried client does manage to bluff his or her way through and will wind up on the telephone with you.

It’s 3pm on a sunny Wednesday afternoon. The attorney is taking a much­?needed break to clear his head by fishing at the park. He is at his favorite spot and has a cell phone with him in case there is an emergency.

A client calls and winds­?up on the phone with you with the following recitation of facts:

“I’m an important client of the firm, have been for some time. I’m at the bank and have been here for over an hour trying to get them to listen to what attorney told me to do. The bank manager is here and unless he talks to the attorney he’s going to close my account. I consider this to be an emergency and I insist that you get the attorney on the phone right away or at least get him to call me back as soon as humanly possible!”

How do you handle this situation?

A) In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

At five weather stations on Trail Ridge Road in Rocky Mountain National Park, the peak wind gusts (in miles per hour) for January and April are recorded below.

What is the value of the sample test statistic? (Round your answer to three decimal places.)

B)

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

Do professional golfers play better in their last round? Let row B represent the score in the fourth (and final) round, and let row A represent the score in the first round of a professional golf tournament. A random sample of finalists in the British Open gave the following data for their first and last rounds in the tournament.

What is the value of the sample test statistic? (Round your answer to three decimal places.)

Do you agree or disagree with the selected aspects for an organization? Explain

An organization must look for opportunities to improve customer loyalty by developing then implementing programs focused on taking advantage of their respective customers to increase revenues. Customers satisfaction is the key for organizations when they are attempting to create loyal customers.

There are several aspects that an organization must consider when creating loyalty programs in order to see a return on their initial investment. One vital aspect of the entire project begins with performing the proper and effective research. Since, there are numerous program models, establishing the correct program for a business will take time. Organizations must avoid creating programs just because they able to do so. Organizations should utilize data from a variety of sources to analyze what consumers value most and would most likely respond to.

Another aspect that organizations must consider keeping customer loyalty programs simple and easy to manage. “Incentives are widely used for wellness”. The more complex the reward program the more difficult it will be for any business to retain customers. Most businesses utilize a point system such as the Hilton Hotel chain that provides incentives for using their services. The more points gathered by the customer the larger the discount for programs such as these rewards consumers at a certain percentage.

One final aspect that should be considered is marketing of the program for if it’s done incorrectly or not at all, then all the work exhausted in it’s creation would be pointless. “Monetary reward has been defined as an incentive that can make a person wealthier and materially successful if s/he meets the criteria for receiving the reward. Proper investment into marketing a provide greater visibility of your reward program to encourage consumers towards their brand.

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

At five weather stations on Trail Ridge Road in Rocky Mountain National Park, the peak wind gusts (in miles per hour) for January and April are recorded below.

Does this information indicate that the peak wind gusts are higher in January than in April? Use α = 0.01. (Let

d = January − April.)(a) What is the level of significance?


State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?

H₀: μ_d = 0; H₁: μ_d ≠ 0; two-tailed H₀: μ_d = 0; H₁: μ_d > 0; right-tailed     H₀: μ_d = 0; H₁: μ_d < 0; left-tailed H₀: μ_d > 0; H₁: μ_d = 0; right-tailed

(b) What sampling distribution will you use? What assumptions are you making?

The standard normal. We assume that d has an approximately uniform distribution. The Student's t. We assume that d has an approximately uniform distribution.     The standard normal. We assume that d has an approximately normal distribution. The Student's t. We assume that d has an approximately normal distribution.

What is the value of the sample test statistic? (Round your answer to three decimal places.)