The local government is running a flu vaccination program. Are the following costs fixed, variable, or step costs?(
a) Costs of occupancy
(b) Costs of management
(c) Costs of part-time employee salaries based on service volume
(d) Costs of vaccine consumed
2. Clifftown’s Parks and Recreation Department is introducing a new summer program for children in elementary school. Programming runs from 8:00 a.m. to 5:00 p.m., Monday through Friday. The proposed camp is 10 weeks long and is planned for 50 children. Fixed costs, which include equipment and facilities costs, are estimated at $5,000 for 10 weeks. The facilities and equipment can accommodate up to 100 children per week, which is the maximum the depart-ment is willing to enroll in any given session. There will be 5 camp counselors each week for the 50 children, at a total cost of $2,000 per week for the 5 counselors. The department is comfort-able with each counselor being responsible for 11 children. Any more than that and an additional counselor will need to be hired. The camp will serve lunch and snacks on each weekday, at a weekly cost of $15.
(a) Identify the fixed, step, and variable costs.
(b) What would be the cost of the program for 50 children?
(c) What would be the cost of the program for 75 children?
3. Desert Vista Homeless Campus provides shelter and breakfast to individuals in need. Local governments and several nonprofit organizations provide financial assistance to the shelter and require weekly reporting. Desert Vista’s current facility can hold a maximum of 300 people. The base weekly cost to run the shelter is $1,500. The shelter also needs 3 cooks per 75 residents to prepare a sufficient amount of food for breakfast. Cooks are paid a flat fee of $50 for each meal prepared. Breakfast costs an average of $2 per meal to prepare, excluding staff costs.
(a) Identify the fixed, step, and variable costs.
(b) What is the cost incurred by the campus for 150 people over a 1-week period?
(c) What is the cost incurred by the campus for 200 people over a 1-week period?
In: Finance
GLOBAL BUSINESS AND STRATEGY
Impact of Culture on Business – Deloitte Insights The importance of culture is readily apparent when things go wrong. When two large companies merged last year, for example, it became clear that one company had a culture of “low cost” while the other had a culture of “quality service.” Employees received mixed signals for months until the new management team took the time to carefully diagnose and redefine many business processes throughout the company. Given the importance of culture and the consequences of cultural issues, many companies are proactively defining culture and issuing culture “manifestos.” The Netflix culture presentation, often used as an example, has been downloaded more than 12 million times since 2009. The presentation clearly describes a culture that combines high expectations with an engaging employee experience: Generous corporate perks such as unlimited vacation, flexible work schedules, and limited supervision balance a strong focus on results with freedom and appreciation for the expected achievement. The financial services industry, still restoring its brand after the 2008 financial crisis, is sharply focused on culture. One organization is using a variety of initiatives to help employees understand “how the bank does business,” including offering speaker series on topics such as compensation packages, customer satisfaction, and maintaining regulatory standards. Citigroup has an entire committee focused on ethics and culture and has implemented a series of web-based videos detailing real workplace ethical dilemmas.
America is focusing its corporate culture transformation on
encouraging employees to report and escalate issues or concerns, as
well as incorporating a risk “boot camp” into their current
training. Wells Fargo is increasing its efforts to gather employee
survey feedback to understand current trends and potential areas of
weakness in its culture. A new industry of culture assessment tools
has emerged, enabling companies to diagnose their culture using a
variety of well-established models. Yet despite the prevalence of
these tools, fewer than 12 percent of companies believe they truly
understand their culture. That’s where HR can help. As businesses
try to understand and improve their culture, HR’s role is to
improve the ability to curate and shape culture actively. An
organization’s capabilities to understand and pull the levers of
culture change can be refined and strengthened. HR has a natural
role to play in both efforts. As operations become more distributed
and move to a structure of “networks of teams,” culture serves to
bind people together and helps people communicate and collaborate.
When managed well, culture can drive execution and ensure business
consistency around the world. HR has an opportunity to assume the
role of champion, monitor, and communicator of culture across, and
even outside, the organization. Once culture is clearly described,
it defines who the company hires, who gets promoted, and what
behaviours will be rewarded with compensation or promotion.
Nordstrom has formed a People Lab Science Team in an effort to
define and curate a culture that will attract top talent and enable
the retailer to compete with tech companies such as Tableau and
Microsoft. The team takes a multidisciplinary approach to designing
programs to define and reinforce Nordstrom’s culture. Starbucks
analyzed thousands of social media entries to gain an objective
view of its culture through the eyes of its employees and take
specific actions to reinforce its cultural strengths and address
cultural weaknesses. Securitas Belgium has defined the behaviors
associated with its vision for culture, performed an analysis of
its current state, and developed a detailed, measurable change plan
for 150 of its managers. Software giant SAS was recently rated the
best place to work by the Great Place to Work Institute. It is also
highly successful, with 37 consecutive years of record earnings (it
earned $2.8 billion in 2012). SAS has identified trust as a
critical cultural attribute and regularly surveys its employees on
elements of trust: communication, respect, transparency, and being
treated as a human being. Once an organization develops a clear
understanding of its culture and decides on a direction for
cultural change, it is critical to move rapidly from analysis to
action. Moving from talking to doing is the only way to build
momentum. For companies pondering a cultural transformation, the
time to start is now—because many companies are already way
ahead.
Question 1 How do you see the cultural transformation for companies in South Africa? Comment
Question 2) Discuss the role of Religion and Education
in modern business transformation with appropriate examples.
In: Operations Management
Can someone write very similar code to this but have it read the Absolute value, Cos, Sin, and Tan. Also, have it pass from the main method.
import java.util.Scanner;
public class Manymethods{
public void Max ()
{
Scanner scan = new Scanner( System.in);
int [] arr = new int [4];
arr = new int [4];
int i = 0, s = 0;
for (i = 0; i < 4; i++)
{
arr[i] = scan.nextInt ();
if(arr[i] > s)
s=arr[i];
System.out.println(arr[i] + " " + s);
}
}
public void Min ()
{
Scanner scan = new Scanner( System.in);
int [] arr = new int [4];
arr = new int [4];
int i = 0, s = 0;
for (i = 0; i < 4; i++)
{
arr[i] = scan.nextInt ();
if(arr[i] < s)
s=arr[i];
System.out.println(arr[i] + " " + s);
}
}
public void Add ()
{
Scanner scan = new Scanner( System.in);
int [] arr = new int [4];
arr = new int [4];
int i = 0, s = 0;
for (i = 0; i < 4; i++)
{
arr[i] = scan.nextInt ();
if(arr[i] > s)
s=arr[i] +s;
System.out.println(arr[i] + " " + s);
}
}
public void Multi ()
{
Scanner scan = new Scanner( System.in);
int [] arr = new int [4];
arr = new int [4];
int i = 0, s = 1;
for (i = 0; i < 4; i++)
{
arr[i] = scan.nextInt ();
s = arr[i] * s;
System.out.println(arr[i] + " " + s);
}
}
public static void main(String[] args) {
Manymethods m = new Manymethods();
System.out.println("We will call Maxmethod now");
m.Max();
System.out.println("We will call Minmethod now");
m.Min();
System.out.println("We will call Additionmethod now");
m.Add();
System.out.println("We will call Multimethod now");
m.Multi();
}
}
In: Computer Science
Abstract Cart class
import java.util.ArrayList;
import java.util.HashMap;
/**
* The Abstract Cart class represents a user's cart. Items of Type T
can be added
* or removed from the cart. A hashmap is used to keep track of the
number of items
* that have been added to the cart example 2 apples or 4
shirts.
* @author Your friendly CS Profs
* @param -Type of items that will be placed in the Cart.
*/
public abstract class AbstractCart {
protected HashMap cart;
public AbstractCart() {
this.cart = new HashMap();
}
/**
* Calculates the total value of items in the
cart.
* @return total (double)
*/
public abstract double calculateTotal();
/**
* Add an item of type T to the Cart (HashMap: The
product is the key
* and the value is the count).
* If product doesn't exist in the cart add it and set
count to one.
* Otherwise increment the value.
* @param item
* @return boolean
*/
public void addItem(T item) {
//fill in
}
/**
* Adds every item in the Arraylist of Type T or any
subclass of T.
* @param items: An array of items
* @return true if items have been currently
added.
*/
public void addItems(ArrayList items) {
}
/**
* Removes an item of type T from the list.
* If the only one item, we remove that item.
* If item count is greater than one decrement the
count.
* If you are able to remove the item then return
true.
* If the item doesn't exist return false.
* @param item
* @return true
* in the list.
*/
public boolean removeItem(T item) {
//fill in
return true;
}
/**
* Removes all of the item of items of Type T or any
subclass of T from the cart.
* @param item
* @return true if items have been successfully
remove.
*/
public void removeItems(ArrayList items) {
//fill in
}
/**
* Check to see if the cart contains an item.
* @param item
* @return true if cart contains the item. Returns
False otherwize
*/
public boolean contains(T item) {
return
cart.containsKey(item);
}
}
AmazonCart
public class AmazonCart extends AbstractCart {
@Override
/**
* Calculate the total of all the items in the cart
include tax.
* @return total
*/
public double calculateTotal() {
double total = 0.0;
for(AmazonProduct item :
this.cart.keySet()) {
int itemCount =
this.cart.get(item);
total +=
(item.getPrice() + item.calcTax())*itemCount;
}
return total;
}
}
AmazonCartTest
import static org.junit.Assert.*;
import java.util.ArrayList;
import org.junit.Test;
public class AmazonCartTest {
@Test
public void testAddingItemToCard() {
Milk m = new Milk(2.5, "Lactose
Free", false);
AmazonCart amazonCart = new
AmazonCart();
amazonCart.addItem(m);
if(amazonCart.contains(m) != true)
{
fail("Error
AmazonCart-Line-13: Items not currently added to cart");
}
}
@Test
public void testCalculateTotal() {
Milk m = new Milk(3, "Lactose
Free", true);
DVD d = new DVD(10, "Black
Panther", true);
Shirt s = new Shirt(100, "Versace",
false);
AmazonCart amazonCart = new
AmazonCart();
amazonCart.addItem(m);
amazonCart.addItem(d);
amazonCart.addItem(s);
assert(amazonCart.calculateTotal()
== 120.33);
}
@Test
public void testAddingDupplicates() {
Milk m = new Milk(3, "Lactose
Free", true);
DVD d = new DVD(10, "Black
Panther", true);
Shirt s = new Shirt(100, "Versace",
false);
AmazonCart amazonCart = new
AmazonCart();
amazonCart.addItem(m);
amazonCart.addItem(m);
amazonCart.addItem(d);
amazonCart.addItem(d);
amazonCart.addItem(s);
amazonCart.addItem(s);
assert(amazonCart.calculateTotal()
== 240.66);
}
@Test
public void testRemovingItem() {
Milk m = new Milk(3, "Lactose
Free", true);
DVD d = new DVD(10, "Black
Panther", true);
Shirt s = new Shirt(100, "Versace",
false);
AmazonCart amazonCart = new
AmazonCart();
amazonCart.addItem(m);
amazonCart.removeItem(m);
amazonCart.addItem(d);
amazonCart.addItem(s);
amazonCart.addItem(s);
assert(amazonCart.calculateTotal()
== 224.3);
}
@Test
public void testRemovingItem2() {
Milk m = new Milk(3, "Lactose
Free", true);
DVD d = new DVD(10, "Black
Panther", true);
Shirt s = new Shirt(100, "Versace",
false);
AmazonCart amazonCart = new
AmazonCart();
amazonCart.addItem(m);
amazonCart.removeItem(m);
assert(amazonCart.removeItem(d) ==
false);
amazonCart.addItem(d);
amazonCart.addItem(s);
amazonCart.addItem(s);
assert(amazonCart.calculateTotal()
== 224.3);
}
@Test
public void testRemovingItem3() {
Milk m = new Milk(3, "Lactose
Free", true);
DVD d = new DVD(10, "Black
Panther", true);
Shirt s = new Shirt(100, "Versace",
false);
AmazonCart amazonCart = new
AmazonCart();
amazonCart.addItem(m);
amazonCart.addItem(m);
amazonCart.removeItem(m);
amazonCart.removeItem(m);
assert(amazonCart.removeItem(d) ==
false);
amazonCart.addItem(d);
amazonCart.addItem(s);
amazonCart.addItem(s);
assert(amazonCart.calculateTotal()
== 224.3);
}
@Test
public void testAddingArrayListOfItems() {
ArrayList mArray = new
ArrayList<>();
Milk m1 = new Milk(3, "Lactose
Free", true);
Milk m2 = new Milk(2, "Whole Milk",
true);
Milk m3 = new Milk(9.5, "Goats
Milk", true);
mArray.add(m1);
mArray.add(m2);
mArray.add(m3);
AmazonCart amazonCart = new
AmazonCart();
amazonCart.addItems(mArray);
}
@Test
public void testRemovingArrayListOfItems() {
ArrayList mArray = new
ArrayList<>();
Milk m1 = new Milk(3, "Lactose
Free", true);
Milk m2 = new Milk(2, "Whole Milk",
true);
Milk m3 = new Milk(9.5, "Goats
Milk", true);
mArray.add(m1);
mArray.add(m2);
mArray.add(m3);
AmazonCart amazonCart = new
AmazonCart();
amazonCart.addItems(mArray);
amazonCart.removeItems(mArray);
assert(amazonCart.calculateTotal()
== 0);
}
}
In: Computer Science
In: Finance
If none of the above conditions are met, simply print a blank new line
In: Computer Science
George was happy he did so well on his math test after doing poorly on the last one. He knew he had the ability, but just didn’t study last time. This time he felt confident in his ability and his practice of the material. When it comes to math George has developed a:
| a. |
Social comparison. |
|
| b. |
Mastery-oriented attribution. |
|
| c. |
Learned helplessness attribution. |
|
| d. |
Gender stereotyped expectation. |
5 points
Question 7
By middle childhood, children who hold flexible beliefs about what boys and girls can do:
| a. |
Are more likely to be androgynous. |
|
| b. |
Are more likely to notice instances of gender discrimination. |
|
| c. |
Get more encouragement from teachers to participate in gender-typed activities. |
|
| d. |
Show more in-group favoritism. |
5 points
Question 8
One factor that can reduce performance on intelligence tests is a child’s anxiety about being negatively judged based on a preconceived expectation of performance for his or her race, culture, or gender, also known as:
| a. |
Stereotype threat. |
|
| b. |
Knowledge threat. |
|
| c. |
Judgment threat. |
|
| d. |
Nature threat. |
5 points
Question 9
The most common psychological problem experienced by adolescents is:
| a. |
Suicidal ideation. |
|
| b. |
Anxiety. |
|
| c. |
Eating disorders. |
|
| d. |
Depression. |
5 points
Question 10
Sternberg identified three types of intelligence that work together in various ways, depending on the task at hand. He describe these three types as:
| a. |
Logical, spatial, and kinesthetic. |
|
| b. |
Mathematical, linguistic, and common sense. |
|
| c. |
Analytical, creative, and linguistic. |
|
| d. |
Analytical, creative, and practical. |
5 points
Question 11
A contributor to obesity in early childhood is:
| a. |
Heredity. |
|
| b. |
Lack of knowledge about proper nutrition. |
|
| c. |
Family stress. |
|
| d. |
All of the above. |
5 points
Question 12
Research has identified some advantages and disadvantages of being an only child. Overall, only children report:
| a. |
Higher self-esteem as compared to children with siblings. |
|
| b. |
Higher self-rated personality traits. |
|
| c. |
Better ability to negotiate conflict with peers. |
|
| d. |
All of the above. |
5 points
Question 13
The families of chronically delinquent youth are more often characterized as:
| a. |
Low in warmth. |
|
| b. |
High in conflict. |
|
| c. |
Use harsh and inconsistent discipline with low monitoring. |
|
| d. |
All of the above. |
5 points
Question 14
Effective sex education programs have been shown to delay the age of initiation of sex, and to reduce the frequency of sex and the number of sexual partners. Berk (2014) lists effective elements for sex education programs. Which of the following is NOT considered an effective element of sex education:
| a. |
Parents should avoid or delay talking with their children about sex. |
|
| b. |
Role-playing techniques for handling potential sexual situations, such as pressure from a date. |
|
| c. |
Clear, accurate messages based on an adolescent’s culture and experience. |
|
| d. |
Specific and accurate information about contraceptives. |
5 points
Question 15
Adolescents who are actively involved in a religious community tend to _______________ their peers who are not involved in religious activities.
| a. |
Score higher in empathy and prosocial behavior as compared to. |
|
| b. |
To show no significant differences from. |
|
| c. |
Score lower in empathy and prosocial behavior as compared to. |
|
| d. |
Report a more fragile sense of moral identity as compared to. |
5 points
Question 16
Although no one was nearby, Eric tells his mother that she is embarrassing him when she asks about his homework on the way to the car. He checks his hair in the mirror when he gets in the car and worries that someone will see that his hair is out of place. Eric is concerned with:
| a. |
His mother’s inappropriate behavior. |
|
| b. |
An imaginary audience. |
|
| c. |
A personal fable. |
|
| d. |
Idealism. |
5 points
Question 17
According to the U.S. Census Bureau, the industrialized country with the highest divorce rate is:
| a. |
The United Kingdom. |
|
| b. |
The United States. |
|
| c. |
Sweden. |
|
| d. |
Canada. |
5 points
Question 18
Olivia is preparing for a Friday test of vocabulary words. On Wednesday, Olivia checks her progress on learning the vocabulary words. She is pleased with how well she has learned some of them, but is having a harder time with others. She decides to look some up on the Internet to get additional help in understanding them. She checks her progress again on Thursday. Olivia is using the process of ____________ to help her reach her goal.
| a. |
Cognitive mapping. |
|
| b. |
Cognitive self-regulation. |
|
| c. |
Whole language approach. |
|
| d. |
Phonics approach. |
5 points
Question 19
Which of the following about children from divorced parents is NOT accurate?
| a. |
Children of high conflict families tend to transition better to a single parent home following divorce. |
|
| b. |
Children of low conflict families tend transition better to a single parent home following divorce. |
|
| c. |
Children adjust better when parents are able to coparent cooperatively following divorce. |
|
| d. |
Children adjust better when they have frequent and warm contact with the noncustodial parent. |
5 points
Question 20
As they are developing identities, many adolescents from immigrant cultures experience a clash, or ______________ due to conflicting pressures between family values and the host culture.
| a. |
Identity domains. |
|
| b. |
Acculturation stress. |
|
| c. |
Cultural bias. |
|
| d. |
Identity status. |
In: Chemistry
Best Buy ranks number 72 on the Fortune 500; it is the largest consumer electronics retailer in the world. Best known for its discounted high-quality products, customer centered approach, sustainable outreach, and extensive recycling program. Best Buy is listed as a “socially responsible” company. It was founded by Richard Schulze in 1966. Since then the company has undergone many changes.
College students, who wanted higher-end electronics, were the first customers they targeted. In 2000, when sales growth slowed, Best Buy acquired Geek Squad, a repair service. This acquisition led to their Concept 5 stores, where products are sold, and customers taught how to use them. This improved service turnaround time and increased customer satisfaction. By 2009, the company became the primary online and brick-and-mortar provider of consumer electronics.
Best Buy views itself as a customer-centered organization. The company uses www.BestBuy.com to learn more about its customer needs and preferences. Customers can use that website to rate every product purchased. In 2007, the Company published its first Corporate Social Responsibility Report (SR) as result of the customers concern for sustainability. Electronic waste was filling landfills, and their customers wanted to see this problem addressed. In response to their concerns, Best Buy implemented a wide-scale electronics recycling program. In 2009 Best Buy set a goal to reduce carbon emissions by 45%; by the end of 2016 they had reached nearly 47%.
Today Best Buy employs a Chief Ethics Office and maintains a blog for company employees; it covers ethical lapses and related issues. Employees can visit the website and read about the company policy regarding ethically questionable behaviors and learn tips on how to best defend themselves from crossing ethical boundaries. Hubert Joly was appointed CEO in 2012 after a scandal forced out CEO, Brian Dunn and Chairman, Richard Schulz.
Under Joly, Best Buy, once again, became a growth company. He implemented its “Renew Blue” strategy, adding new product lines and services and emphasizing both in-store and online customer opportunities. Its Geek Squad division began an in-store, online, and home advisory program. He expanded into both Canadian and Mexican markets. Operations in China and Europe were closed to reduce costs, and he closed some domestic stores, under his lean management mandate.
To improve customer service, the “Geek Squad hours were expanded to provide 24-hour service on site, at home, or through the Internet. The tech experts make about 4 million home calls a year. Walmart and Amazon their biggest competitors do not offer comparable at-home services. In March 2017, “Renew Blue” was officially closed by Joly and pronounced a success.
In 2017, Joly announced the company will implement “Best Buy 2020 - Building the New Blue.” Best Buy began a try-before-you-buy program which allows the customer to rent gadgets such as audio equipment, fitness trackers, smartwatches, and cameras. If the customer decides to keep the product, 20% of the rental fee is deducted and applied to the final cost of the product.
Best Buy will continue demonstrating new technology solutions, contracts and services and sustainability . The company plans to enhance their smart home areas in all stores, roll out its Best Buy Smart Home Powered by Vivint home automation and security offering to 450 stores, which will add 1,500 dedicated smart home employees. The “Geek Squad” expanded services will include “Smart Home ‘Total Tech Services, which will service every electronic product in your home no matter where the product was purchased and create a totally integrated technology system for your home.
Another service Best Buy will provide is the Smart Home Senior Care Services,” which is considered an “untapped white space opportunity.” The electronic “Assured Living” system will allow millennials /caregivers to look in on their aging parents while permitting the seniors to live independently. Mr. Joly envisions rolling out a broader business of sensor-based senior services, sold through health-and-wellness departments in Best Buy’s more than 1,000 stores. With an aging population in the U.S., there will be 70 million people who will be seniors in 2027. Best Buy sees this growth opportunity and will use the Smart Home Business and its ability to get into people’s home as a trusted adviser.
Question:
How does Best Buy deal with ethically questionable behaviors, in short essay form
In: Finance
Case Study 3:
QWERTY It is now June 2013. Qwerty Limited is an Irish based
company that designs, manufactures and sells a wide range of
wireless computer keyboards to retailers in both Ireland and
Northern Ireland. QWERTY is co- owned by twin brothers Paul and Joe
Hayes, who founded the company after graduating from their local
university with undergraduate degrees in Computer Science and
Electronic Engineering respectively. Since then, QWERTY has
experienced rapid sales growth (with modest but growing
profitability) and now employs 55 full-time employees from their
Limerick base. Paul and Joe are the only directors of the company.
Performance Measurement As a result of the on-going difficulties
experienced by QWERTY in acquiring adequate levels of credit from
their local financial institutions to fund their working capital,
Paul and Joe have decided with immediate effect, that if any of
their products are budgeted to be loss-making for the forthcoming
year, they should be discontinued immediately in an attempt to
protect the future viability of the company. Consequently, the 2014
budgetary data for one of QWERTY's most popular (and to-date
profitable) keyboards called “Exile”, is causing Paul and Joe a lot
of concern (see Appendix I for the 2014 budgetary data on “Exile”).
In an on-going attempt to reduce their costs, all of QWERTY's 2014
budgetary forecasts were jointly prepared by the company's
co-owners, having previously been contracted out to a small local
firm of Chartered Accountants. In addition to focusing on product
profitability as a key performance indicator, Paul and Joe are also
keen to consider the use of some non-financial metrics to guide
them in making future strategic decisions. Having discussed the
various options available, allied to the nature of the industry in
which they compete, they have collectively decided on “innovation”
as the key non-financial success factor for QWERTY to focus on in
the short to medium term, although they have yet to agree on any
specific performance measures.
Growth Opportunities Paul has always been more growth focused than
Joe and for the past year has been exploring various options to
expand the company. He has identified a venture capital investor,
with an interest in small technology companies. The investor has
made an offer to invest €/£ 2 million in QWERTY for 36% of the
equity. Paul and Joe agree that this is an attractive offer. An
agreement has been signed and this investment will go ahead within
the next three months. The venture capital investor is impressed by
Paul and Joe's management of QWERTY but has some concerns that it
does not have the corporate governance structures to sustain its
growth over the medium to long term. As a condition of the
investment the venture capital investor is insisting that he has a
position on the board of directors and a veto over major strategic
decisions made by the company. Paul and Joe are agreeable to these
conditions.
Paul is proposing that they use the funds raised from the new
investor to part-finance the acquisition of Screen Magic Limited
(“SCREEN”), an Irish company which manufactures computer screens.
Paul has had preliminary discussions with the owner (and managing
director) of SCREEN, who has told him he is keen to retire soon
after finding the last few years increasingly stressful trying to
resolve a complex tax issue affecting SCREEN and dealing with
increasingly onerous regulations on environmental standards in
manufacturing. He may be interested in selling SCREEN and has
provided information on the company (see Appendix II). Paul has
been pushing a “growth by acquisition” strategy for several years
because he believes QWERTY is too narrowly focused on one sector
and believes acquisitions almost always deliver significant value
through synergies and economies of scale. He is confident that if
QWERTY acquires another company he and Joe have the management
skills required to ensure a successful integration. Paul is eager
to agree the terms of the takeover of SCREEN before the venture
capital investor takes his seat on the board as he is not sure if
the investor would approve of the takeover. Bridging finance would
be available from QWERTY's bank to finance the acquisition pending
receipt of the new equity funds. This facility would be personally
guaranteed by Paul and Joe.
CASE STUDY 3 QUESTIONS
QUESTION 1: Discuss three (3) non-financial considerations that Paul and Joe should also consider prior to making their final decision as to whether or not to withdraw the “Exile” wireless keyboard from sale in 2014.
QUESTION 2: Critically evaluate Paul and Joe's new proposed policy in respect of discontinuing any products, which are budgeted to be loss making within QWERTY. In addition, suggest any improvement to the proposed policy that you consider appropriate.
In: Accounting
Case Study – Novelty Creations Howard Booth is disappointed. His company, Novelty Creations has just withdrawn from its latest venture after three unsuccessful months of trying to market a new product. The company markets a range of novelty ‘lifestyle’ products using a direct mail brochure and the internet. Products marketed include a rainwear range for dogs and cats, an automatic odour protection device for bathrooms and ‘make-your-own’ birthday card kits. In its outdoor collection it markets a range of garden lights in the shape of garden gnomes and self-erecting clothes dryers. It has over one hundred individual personal items including nose-hair clippers, blood pressure monitors and earwax removal systems. The company is always looking for new product ideas as the essence of keeping sales moving is novelty and interest. The product just withdrawn after three months in the brochure, and slightly longer on the website, was an extended toenail clipper whereby a person could clip their toe nails without having to bend down. Not all new products succeed, but Booth’s problem is that this is the tenth recent new product failure and he is worried that the company is losing direction. New product ideas come from an in-house team consisting of Booth and two other directors. All are from technical backgrounds. Customers are not consulted at the stage of idea generation as it is felt that they would be unable to grasp many early stage concepts. Idea generation sessions take place on the last Friday of every month and usually result in about ten new ideas being put forward and discussed. As the major shareholder of the company, Booth takes it upon himself to select which, if any, of these ideas should be taken further with a view to including them in the product portfolio. He uses his own judgement in this screening process as he feels that the growth of the company is down to his ‘feel’ for the market. Once a product idea is selected, Booth and his team find someone who can make the product and it is then incorporated in the brochure and on the website. He believes that the best test of a product is whether it sells or not and for this reason no marketing research is conducted before its inclusion in the product portfolio. Once the product is launched, a small sample of customers are contacted randomly and asked to complete a questionnaire regarding their views on this product and other company products. Booth is seriously concerned about recent product failures and is wondering if a different and perhaps more systematic approach to developing new products might be appropriate. He is looking for advice about what the company might be doing wrong and how it might improve its new product development procedures.
Question-
Evaluate the company’s approach to new product development and suggest how the company might improve its success rate for future new products. Do a SWOT analysis.Suggested approach The answer really lies in the fourth and fifth paragraphs i.e. customer are not consulted at the stage of idea generation, and the obviously misguided belief that marketing research is not necessary. Clearly, ‘a feel for the market’ has been successful in the past as it appears that the company has been relatively successful. However, customers are now more discerning as witnessed by new product failures. ‘Brainstorming’ springs to mind as a technique that might be appropriate in vetting new product ideas, ensuring that appropriate personnel are included in such brainstorming sessions, including potential customer. The next technique that springs to mind is ‘focus groups’ consisting of a good moderator and customers who have previously purchased the company’s products.
In: Operations Management