The Middle East training department of AMEX Corporation was well respected for the quality of programs its staff developed and regularly presented to the over 10,000 AMEX employees. Department members were always ready for new challenges and prided themselves on developing the best training programs in the industry.

Marwa Al Amri, director of the AMEX training department, was excited that the presentation to top management has been well received. She believed, along with her senior staff, that the AMEX training development program was out of date and needed new materials and new training format. The changes that she and her staff wanted to make would cost around 40,000 OMR, requiring management approval and agreement that the program was a top priority for the coming year. The new training development program would be first such program to be made available to all the 10,000 employees.

During her first staff meeting following the management presentation, Marwa became aware that although all seven senior staff members agree on the importance of the program, there was little agreement on who should have the lead responsibility and how other work responsibilities’ should be divided to provide time for program development. Although no open disagreement had been voiced, Marwa came away from the meeting with the sense that she had considerable work to do to determine how project assignments might best meet the needs of the entire group.

Marwa believed that Ali Said Al Juffaily, her senior staff member in charge of management development programs, had the best experience for the job. Ali had been with AMEX for over seven years and had developed staffed and implemented seven new programs for managers at all levels in AMEX. His program evaluations were consistently outstanding, and top management held his work in high regard. Yet Marwa also knew that Faisal Ahmed, senior staff member in charge of manufacturing training programs, wanted the assignment. Faisal had less overall program experience than Ali, but the work he had done in quality training was truly outstanding. In fact, he had been asked to lead a workshop describing his program at the International Manufacturers Convention in Dubai. Marwa was proud of Faisal and believed he had an outstanding future in training and development. The other two senior staff members, Basma and Maitham, had not yet introduced their first programs. Although able trainers and good program managers, neither had the development and writing experience necessary for the training development project. The other member that represented was an Intercultural training manager- Li Wang, a Chinese male expatriate, who was the oldest but joined ARAMEX five years ago. The last member was Ernst Gunter, a German national and worked as ARAMEX’s Product Training Specialist.

Marwa decided to devote her staff meeting to a discussion of project allocations for the coming year. She was not prepared for the tenseness she felt as the meeting began.

Marwa: As you know, today’s agenda deals with our program planning for the next year. Obviously, if we are to undertake the training development project, we will have to evaluate workloads on all our projects. I would also like expressions of interest in which parts of the training development project each of you would like and ideas on what type of team should be established to manage its development. As we talk, please keep in mind not only your own interests but also the strengths and overall workloads of each of your individual staffs.

Ali: Marwa, this issue is troublesome for us as a group. We all want the training development program to work, but we know it takes one lead person, not all six of us working independently.

Faisal: Ali is right. One of us has to head up the group and be responsible for the lead. I guess I should say right now that I want to take that lead responsibility. I have worked with the largest group (manufacturing) in all AMEX and believe that experience qualifies me for developing a program that reaches large numbers of diverse people. My manufacturing unit represents almost 6,500 of the total unemployment.

Ali: (in tense voice) I don’t think we should be declaring who wants the job until we decide how the project might ideally be developed with all other responsibilities.

Li: (looking down and speaking softly) I think it’s best if all go home and think of this and discuss it later.

Ernst: Why so, Mr.Li? We are here to know about the plans for next year which is crucial…

Maitham: Well, I think we need to get down to facts. Neither Basma nor I have the experience to lead the project and we know it. Everyone knows the lead job is between you two (Ali & Faisal). We really can’t divide the other work and decide how we can support the project until we choose a leader.

Basma: Maitham is right. I would love to lead the project but with about five years more experience.

Faisal: Well, I just stated that I want the lead job and I think my experience is best suited for the job. What do you think, Ali?

Ali: (with a smile) I think this is an unprofessional way for us to be entering into this discussion. After all, the final decision is Marwa’s and she should not be forced to choose this way. Her agenda was a discussion of project assignments, not announcing who would take the lead assignments. Isn’t that right, Marwa?

Marwa: Yes, that was the agenda. But I am not averse to hearing what each of you really wants to do. Ali, how do you feel about the lead role?

Ali: How do I feel? Well, I am the senior member of this team. Everyone expects me to lead this project. If I don’t get this job, it will be a slap in the face. Sure, Faisal has done a good job in manufacturing, but what about the management programs? They may reach fewer people, but the people they do reach drive the entire company. What about experience? Frankly, I resent being put on the spot. This issue is not for general discussion? It is (to Marwa) your responsibility to make that decision.

Faisal: Ali, you’re doing it again. I have never raised this point before, but you just won’t confront things openly. Sure, you have a good record, but I am willing to say openly that I would like to take up this job, and not expect someone to hand me the assignment. It is too important to give it to someone just because they expect it.

Ernst: (in loud and angry undertone) You both are acting like some immature babies crying for spot. I should say that the management should dismiss you both from the team.

Faisal: (to Ernst) Really, Mr. Gunter? That comment was inappropriate and unwarranted.

Ernst: I believe that everyone is capable of leading. Perhaps, the management and Ms. Marwa should interview each of us to determine the next ideal candidate to lead the training development project. Prior experience matters, you know.

Faisal: Mr. Gunter, with all due respect, you have had a chance to lead a similar project three years ago. I believe it’s unfair to others’ who are capable and in the line for such opportunities to excel.

Li: Please allocate a leader yourself, Marwa.

Marwa: Wait a minute, you are both out of line. We are going to adjourn this meeting right now and I will see you both individually later in the day. We will meet again as a staff tomorrow morning.

Ali: (under his breath as she leaves the room) This training development program is already ruining some careers.

Questions:

Q1: What strategies and tactics (briefly describe any 2 ONLY) are in use to resolve the conflict? How effective was each?

Q2: a. What can Marwa do to resolve the tension and conflict? List any 2 ways ONLY.

b. Discuss the relevant conflict management style that Marwa can assume, as discussed in chapter. Cite your reasons for the same.

Jillian is the president of a company that makes small parts for the automotive industry. Customers are primarily auto manufacturers. Jillian's cousin, Frank, works at the company as a sales representative. A promotion to the sales manager position is open. Frank has applied and so has Lisa, another sales representative. While both Frank and Lisa are good employees, they are skilled in different areas, but Lisa has better evaluations from supervisors. Lisa is great with technology and with placing orders. She does an excellent job in following through with ordering problems. She is willing to work weekends and after hours. Frank, on the other hand, is better with customer relations, and customers seem to like him better, but does not follow through on orders as well as Lisa does. Jillian is unsure who to promote. She has several concerns. Her first concern is that it would be expected by her family that Frank should be promoted because he is family. Jillian's second concern is most customers are male, and Jillian suspects that the company's customers would respond better to Frank and purchase more parts from Frank because Lisa is female. Finally, Lisa and Jillian are childhood friends who are very close and Jillian knows that Lisa could use the extra money as a single mother. Define and discuss the WH framework for business ethics, and within that framework propose a solution. Be sure to fully address the populations, purposes, and guidelines included within "W" and "H."

Ezy and Frezy decided to put their passion for baking to good use and they eventually formed “Exim Bakery and Café” to serve pastries and cakes. They were short of cash so they asked their college mate Crezy, who is wealthy, to lend them RM50,000 for the business venture. Crezy agreed on condition that she gets paid RM5,000 per year from the gross returns of the shop and be informed on the progress of the business. She also wants to inspect the accounts. Last week, Ezy was showing her skills in making chocolate muffins in the kitchen and accidentally used diluted dish washing detergent in a bottle which she thought was vanilla essence. Tracy, a customer, bought and ate 5 muffins when it was still warm and fresh from the oven. She suffered severe stomach pain and had to be hospitalised. Recently, a company requested for Exim Bakery and Café to cater for a tea reception. Without consulting Ezy, Frezy convinced the company that Exim Bakery and Café is not able to take on the catering job and that she would highly recommend another café who will cater to the request just as well. In actual fact, the recommended café is a business that Frezy has just started with her boyfriend. They made a profit of RM50,000 for the catering job. Ezy was furious when she found out.

Does a partnership exist between Ezy, Frezy and Crezy? Discuss and support your answer with relevant principles of law.

Jillian is the president of a company that makes small parts for the automotive industry. Customers are primarily auto manufacturers. Jillian's cousin, Frank, works at the company as a sales representative. A promotion to the sales manager position is open. Frank has applied and so has Lisa, another sales representative. While both Frank and Lisa are good employees, they are skilled in different areas, but Lisa has better evaluations from supervisors. Lisa is great with technology and with placing orders. She does an excellent job in following through with ordering problems. She is willing to work weekends and after hours. Frank, on the other hand, is better with customer relations, and customers seem to like him better, but does not follow through on orders as well as Lisa does. Jillian is unsure who to promote. She has several concerns. Her first concern is that it would be expected by her family that Frank should be promoted because he is family. Jillian's second concern is most customers are male, and Jillian suspects that the company's customers would respond better to Frank and purchase more parts from Frank because Lisa is female. Finally, Lisa and Jillian are childhood friends who are very close and Jillian knows that Lisa could use the extra money as a single mother. Define and discuss the WH framework for business ethics, and within that framework propose a solution. Be sure to fully address the populations, purposes, and guidelines included within "W" and "H."

Amy, James and Laura are the directors of Elite Editing Pty Ltd (“Elite”), a company that provides online thesis editing for university students. The company is performing badly and Amy seeks the professional advice of Marie, a business advisor. Marie advises Amy that she has designed new software that can reduce overhead costs and help generate profit. Marie asks whether Amy and Elite would be interested in marketing and using this new software. Amy tells Marie that there is no way Elite could afford the new software but Amy would be keen to market the software herself. Amy and Marie establish a separate company called Proofmate Pty Ltd (“Proofmate”) and become its directors. Amy is the majority shareholder. The business of Proofmate is an overnight success. The board of directors of Elite is unaware of this new business. 5 Advise Elite Editing Pty Ltd as to whether Amy has breached section 182 of the Corporations Act 2001 (Cth). As part of your answer, you should consider section 182 and the supporting common law, and what remedies are available to Elite and ASIC.

Amy, James and Laura are the directors of Elite Editing Pty Ltd (“Elite”), a company that provides online thesis editing for university students. The company is performing badly and Amy seeks the professional advice of Marie, a business advisor. Marie advises Amy that she has designed new software that can reduce overhead costs and help generate profit. Marie asks whether Amy and Elite would be interested in marketing and using this new software. Amy tells Marie that there is no way Elite could afford the new software but Amy would be keen to market the software herself. Amy and Marie establish a separate company called Proofmate Pty Ltd (“Proofmate”) and become its directors. Amy is the majority shareholder. The business of Proofmate is an overnight success. The board of directors of Elite is unaware of this new business. 5 Advise Elite Editing Pty Ltd as to whether Amy has breached section 182 of the Corporations Act 2001 (Cth). As part of your answer, you should consider section 182 and the supporting common law, and what remedies are available to Elite and ASIC.

According to the website www.collegedrinkingprevention.gov, “About 25 percent of college students report academic consequences of their drinking including missing class, falling behind, doing poorly on exams or papers, and receiving lower grades overall.” A statistics student is curious about drinking habits of students at his college. He wants to estimate the mean number of alcoholic drinks consumed each week by students at his college. He plans to use a 99% confidence interval. He surveys a random sample of 55 students. The sample mean is 3.69 alcoholic drinks per week. The sample standard deviation is 3.56 drinks.

Construct the 99% confidence interval to estimate the average number of alcoholic drinks consumed each week by students at this college.

( ,  )

Your answer should be rounded to 2 decimal places.

Question 5

Estimating Mean SAT Math Score

The SAT is the most widely used college admission exam. (Most community colleges do not require students to take this exam.) The mean SAT math score varies by state and by year, so the value of µ depends on the state and the year. But let’s assume that the shape and spread of the distribution of individual SAT math scores in each state is the same each year. More specifically, assume that individual SAT math scores consistently have a normal distribution with a standard deviation of 100. An educational researcher wants to estimate the mean SAT math score (μ) for his state this year. The researcher chooses a random sample of 695 exams in his state. The sample mean for the test is 487.

Find the 90% confidence interval to estimate the mean SAT math score in this state for this year.

(Note: The critical z-value to use, zc, is: 1.645.)

( , )

Your answer should be rounded to 3 decimal places.

Question 6

Is smoking during pregnancy associated with premature births? To investigate this question, researchers selected a random sample of 128 pregnant women who were smokers. The average pregnancy length for this sample of smokers was 257 days. From a large body of research, it is known that length of human pregnancy has a standard deviation of 16 days. The researchers assume that smoking does not affect the variability in pregnancy length.

Find the 95% confidence interval to estimate the length of pregnancy for women who smoke.

(Note: The critical z-value to use, zc, is: 1.960)

( , )

Your answer should be rounded to 3 decimal places.

1- Why might a company decide not to pay out all of its free cash flow in dividends?

1. he company may need to purchase more inventory due to strong sales demand.

2. The company may want to buy a competitor.

3. The company may need to repair or replace some existing equipment.

4. Management may have decided that employees need a raise

2- Of the following, which ratio would be the best ratio to judge the financial leverage of a firm?

1. Debt-to-equity ratio

2. Times interest earned

3. Net debt to free cash flow

4. Debt ratio

3- What does a falling account receivable turnover ratio mean?

1. Management is becoming more efficient in managing collections.

2. Net sales are growing faster in relation to accounts receivable.

3. The amount of money needed to fund working capital is growing.

4. Accounts receivable will a source of cash on the cash flow statement

4- The Securities and Exchange Commission's main goal with a prospectus is to:

1. insure investors that it is a legitimate company.

2. make sure full disclosure to investors has been made.

3. identify for investors the fair value of the company.

4. identify companies that do not have the proper capital structure