Flatbread goes round the world Gruma S.A.B. de C.V is located near Monterrey, Mexico, and produces corn flour and other flour products, which it processes into tortillas and related snacks for markets worldwide. Its brand names include Maseca, Mission, and Guerrero. Its customers include supermarkets, mass merchandisers, smaller independent stores, restaurant chains, food service distributors and schools. The company began operations in 1949. In the early 1970s, Gruma launched its product on the Central American markets, specifically in Costa Rica. In 1976 it expanded to the United States and in 1987 it began expanding its operations across the globe, opening plants in Honduras, El Salvador, Guatemala and Venezuela. It now has plants in Europe and most recently China. The Asian market presents a very exciting development for Gruma. The company established their presence on continental China in the first instance and then gradually expanded their penetration of markets across Asia to the Middle East. It has already established distributorships in Japan, Korea, Singapore, Hong Kong, Thailand, the Philippines, Taiwan and India. How has a Mexican company with a niche food product like corn flour succeeded so well in international markets? According to Martinez and Haddock, the answer lies in the fact that many of the markets they have focused on are emerging markets which tend to follow the same path of development. These emerging markets exhibit a natural life cycle – a predictable pattern of consumer demand that is evident in steel, wheat, consumer products, and every other major economic sector. What Gruma are following in their international expansion is the tried and tested method of leveraging the similarities across from market to market and growing their company accordingly. The root of the success of Gruma has been their ability to observe the life cycle of emerging markets around the world and expertly time their entry into these markets. However, the other key factor has been their ability to adapt their products to local market tastes. Their key competitive advantage in international markets is based not on their product but the ability to roll any kind of flour, from corn to wheat to rice, into saleable flatbread. Most people from India do not eat corn tortillas, but they do eat a flatbread called naan, made from wheat, which Gruma sells in the United Kingdom and plans to sell in India. The Chinese don’t eat many corn tortillas, but they buy wraps made by Gruma for Peking duck. Gruma also follow a policy of deploying a senior ‘beachhead’ team to enter the new market in which they are building a presence. In China, the beachhead team had skills honed through many years of experience in Latin America and was already primed to develop the necessary market insights to feed into their marketing campaign. Thus, observed trends in China such as a decrease in home cooking among dual-career professionals, increasing penetration of fast food chains, an increase in cold storage in supermarkets and rapid improvements in the logistics and distribution channels were all utilized in thinking through the Gruma market-building strategy in China.

In connection with the given case study, develop a list of environmental factors which can be monitored to help decision makers recognize when it is the optimum time to enter a market.

Seaside Village is a retirement community, and many residents work together on a local charitable auction to raise money to support community endeavors. Basically, volunteers solicit residents and local merchants to donate items for the auction. The night of the auction, volunteers bring their donated items for display on tables placed around the floor of the town's school gymnasium. Virtually the whole town turns out to bid on items that are up for sale. The lucky purchaser makes payment at a collection booth that is staffed by two of the volunteers. At the end of the evening, the buyers collect their items. A volunteer takes the money home to count. The money is deposited to the charity's bank account on the following day. Following last year's auction, many complaints were heard. One merchant complained that he had donated an expensive LCD television, but it was not offered for sale at the auction. One of the buyers complained that the item she paid for was not to be found at the end of the evening. Another donor complained that he needed a receipt for tax purposes, and another person complained that some people were making up receipts for donations that were never made. The charity's board is considering expanded controls for next year's event, and is considering ten specific proposals received from various volunteers. Which five of these proposals are the most valid strengthening of the control structure? Donors will be sent a thank you letter, which will include a paragraph asking them to confirm that their donated item was present at the auction. Proceeds should be counted and recorded by two or more people immediately fol- lowing the auction, and taken directly to the bank for deposit in the night depository. The person taking the money to the bank will be required to perform a bank reconcili- ation at the end of the month to verify the deposit's posting. All volunteers should be emailed a blank receipt form. Volunteers are encouraged to reprint a generous supply and be sure to issue one to each donor. Prenumbered receipt books (with carbon copy film) should be used for donated items, and a log should be maintained of who received a receipt book. The receipts should be reconciled to donated items. A paid receipt prepared by collection booth volunteers must be presented by a pur- chaser before being allowed to leave the gym with an item of merchandise. An advertisement will be run in the local paper asking for support of the upcoming auction. The advertisement will include instructions to donors reminding them to always ask for a receipt for their gift, and encouraging them to call in to a special phone number to register to be eligible for a special prize drawing for donors! Only one person at a time will be allowed in the collection booth. Each collection booth volunteer will be limited to a one-hour shift. No volunteer is to remove funds from the booth. The charity's president will be required to perform an audit of the books and records related to the annual event. The president must issue a written audit report. Donated items must be taken to a local storage facility upon receipt. A warehouse custodian volunteer will log the items, and another volunteer will be authorized to lock and unlock the warehouse.

A). The strengths are as follows:

B). Use this problem as an opportunity to generally consider the benefits of limited access to assets, separation of duties, authorization, use of prenumbered documents, and proper independent verification/audit. Consider how the "other five" suggestions might be ineffective or harmful to the control environment. Be prepared to discuss other ideas (there are many -- e.g., logging the bid price and matching with payments, etc.) for improving controls at the auction

A FRIEND FOR LIFE

The Glades Company is a small manufacturer. It has produced and marketed a number of different toys and appliances that have done very well in the marketplace. Late last year, the product designer at the company, Tom Berringer, told the president, Paula Glades, that he had invented a small, cuddly, talking bear that might have a great deal of appeal. The bear is made of fluffy brown material that simulates fur, and it has a tape inside that contains 50 messages.

The Glades Company decided to find out exactly how much market appeal the bear would have. Fifty of the bears were produced and placed in kindergartens and nurseries around town. The results were better than the firm had hoped. One of the nurseries reported: “The bear was so popular that most of the children wanted to take it home for an evening.” Another said the bear was the most popular toy in the school.

Based on these data, the company decided to manufacture and market 1,000 of the bears. At the same time, a catchy marketing slogan was formulated: “A Friend for Life.” The bear was marketed as a product a child could play with for years and years. The first batch of 1,000 bears sold out within a week. The company then scheduled another production run, this time for 25,000 bears. Last week, in the middle of the production run, a problem was uncovered. The process of making the bear fur was much more expensive than anticipated. The company is now faced with two options: It can absorb the extra cost and have the simulated fur produced, or it can use a substitute fur that will not last as long. Specifically, the original simulated fur will last for up to seven years of normal use; the less-expensive simulated fur will last for only eight months.

Some of the managers at Glades believe that most children are not interested in playing with the same toy for more than eight months; therefore, substituting the less-expensive simulated fur for the more-expensive fur should be no problem. Others believe that the company will damage its reputation if it opts for the substitute fur. “We are going to have complaints within eight months, and we are going to rue the day we agreed to a cheaper substitute,” the production manager argues. The sales manager disagrees, contending that “the market is ready for this product, and we ought to provide it.” In the middle of this crisis, the accounting department issued its cost analysis of the venture. If the company goes with the more-expensive simulated fur, it will lose $5.75 per bear. If it chooses the less-expensive simulated fur, it will make a profit of $14.98 per bear.

The final decision on the matter rests with Paula Glades. People on both sides of the issue have given her their opinion. One of the last to speak was the vice president of manufacturing, who said, “If you opt for the less-expensive fur, think of what this is going to do to your marketing campaign of ‘A Friend for Life.’ Are you going to change this slogan to ‘A Friend for Eight Months’?” But the marketing vice president urged a different course of action: “We have a fortune tied up in this bear. If you stop production now or go to the more-expensive substitute, we’ll lose our shirts. We aren’t doing anything illegal by substituting the fur. The bear looks the same. Who’s to know?”

QUESTIONS

1. Is the recommendation of the marketing vice president legal? Is it ethical? Why or why not?
2. Would it be ethical if the firm used the less-expensive simulated fur but did not change its slogan of “A Friend for Life” and did not tell the buyer about the change in the production process? Why or why not?
3. If you were advising Paula, what would you recommend?

On January 3, 2017, Carl Castro, a construction worker from Phoenix, Arizona, accepted a job in San Diego, California, at a large residential development. He's not sure how long the construction will go on, but it is projected to be at least three years. He gave up his apartment in Arizona and leased a small house in California. He obtained a California driver's license. He plans to drive back to Arizona to visit friends and family for long weekends whenever possible. Is Carl a California resident, nonresident, or part-time resident?

a. Part-time resident, because he plans trips back to Arizona.

b. Resident, because he is in California for other than a temporary or transitory purpose.

c. Nonresident, because he maintains connections in Arizona.

d. Need for information.

Dillan and Denise Dover live and work in Needles, California. Dillan is a high school teacher in California and works every summer in Lake Havasu, Nevada, as a diving instructor. Denise visits Dillan on weekends. Are the Dovers California residents, nonresidents, or part-time residents?

a. Part-time resident, because Dillan works summers in Nevada.

b. Resident, because Dillan’s work in Nevada is temporary.

c. Nonresident, because Dillan maintains connections in Nevada and Denise visits him there.

d. Need for information

Franklin Jones lives in Portland, Oregon, and accepted a temporary six-month assignment in San Francisco, California, from his employer. The project took longer than originally planned, and Franklin stayed for a total of nine months. His wife and children remained in Oregon and Franklin flew home every Thursday night and flew back to California on Monday mornings. Is Franklin a California resident, nonresident, or part-time resident?

a. Part-time resident, because Franklin travels back and forth between the two states

b. Resident, because Franklin’s source of income supports his family.

c. Nonresident, because Franklin’s time in California is temporary and he has maintained all of his life activities in Oregon.

d. Need for information

Airman Cook and his wife, Emma Cook, are stationed at Vandenberg Air Force Base in California. Airman Cook is domiciled in North Carolina (a separate property state) and received $22,000 in military wages. Emma is a California resident and works in the nearby town of Lompoc, where she earned $18,000. They have filed a joint federal tax return. What are their filing options for California?

a. They can file married filing jointly.

b. They must file married filing separately.

c. They can choose between married filing jointly or married filing separately

d. None of the above.

Mary Brown and Zelda Smith each have two children and share a house. They each pay one-half of the rent, utilities, and food. Mary and Zelda each have separate checking accounts and pay all the other expenses for themselves and their children with their own funds. May they each file as head of household?

a. Yes, because they each maintained separate finances and did not contribute to the support of each other’sfamily.

b. No, because only one person in the home may claim the head of household filing status.

c. No, because they should register as registered domesticpartners.

d. Need more information.

For this assignment, you are going to put your imagination to use.

STEP ONE:

• Please choose an area to describe.
• It may be an area you have driven by but do not know what is in the area.
• It may be in a city, a town, or in the country.
• You get to choose the area for this assignment.
• Draw a map of the area. Create a visual image of the area. Include trees, buildings, equipment, roads, parks, bridges, etc.
• Your map does not need to be drawn to scale.
• Provide a key to your map in the lower right-hand corner.

STEP TWO:

• Write an essay sharing what you observed and why you guessed at the categories of people who live, work, or have lived or worked in the area.
• If the area is run down, shows signs of vandalism, is no longer occupied include in your essay.
• What do you think may go on both inside and outside the area? Homes, storage buildings, parks, motel/hotels both newer/run down or vacant properties
• Are here signs of poverty? Or, are there signs of the properties being well maintained?
• Does the area you chose show signs of low status consistency?
• What are the ramifications both positive and negative, of cultures with low status consistency?
• Try to think of specific examples to support your ideas.

Your essay needs an introduction, body, and conclusion. Grading for this assignment includes points mentioned above and the use of correct grammar and spelling.

Ken Washington, a 61-year-old male patient, arrived today for a follow-up visit from a recent hospitalization for a stroke. Up until his hospitalization, he has had hypertension but no other major health issues. He now has weakness in his left arm and leg, and his speech is difficult to understand. His wife tells you that she has noticed some blood in the toilet after he urinates. She also tells you that he has had some pain when he urinates and often only urinates a small amount. While he was in the hospital, Ken had a urinary catheter in place for 6 days.

Discussion Questions:

1. Is it significant that Ken had a urinary catheter in place for 6 days while he was in the hospital? Why?
2. Dr. Buckwalter plans to send Ken home with a urinary catheter in place. What information can you give him to help him prevent infection?
3. You note on the chart that Dr. Buckwalter wants to see Ken again in 2 days. You ask Ken to schedule an appointment for that time. Ken’s wife states that they are going out of town for a week and will not be able to return until after that time. What should you tell Ken about making an appointment for more than a week?

The Chocolate Ice Cream Company and the Vanilla Ice Cream Company have agreed to merge and form Fudge Swirl Consolidated. Both companies are exactly alike except that they are located in different towns. The end-of-period value of each firm is determined by the weather, as shown below. There will be no synergy to the merger.

The weather conditions in each town are independent of those in the other. Furthermore, each company has an outstanding debt claim of $470,000. Assume that no premiums are paid in the merger.

a. What are the possible values of the combined company? (Do not round intermediate calculations.)
  

b. What are the possible values of end-of-period debt and stock after the merger? (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations.)
  

c. How much do stockholders and bondholders each gain or lose if the merger is undertaken? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.)