Discussion Question:

1.  Matt talks a lot about "Fair Market Rent" and how realtors and landlords make more money in poor neighborhoods than in nicer ones.  How is it possible to make more profit from renting run-down properties to poor people than from renting luxury apartments to wealthy people? What does this tell us about the relationship between wealth and poverty?

The composite scores of individual students on the ACT college entrance examination in 2009 followed a normal distribution with mean 21.1 and standard deviation 5.1.

1. What is the probability that a single student randomly chosen from all those taking the test scores 23 or higher?
   P( X >__?__ ) = P(z >__?__ ) = ____?__
2. 
   
3. What is the probability that a simple random sample of 50 students chosen from all those taking the test has an average score of 23 or higher?
   P( X̄ >_?__ ) = P(z >___?__ ) = ___?____

Question 6: Assume you are a credit manager in charge of approving commercial loans to business firms. Identify three aspects of a firm's cash flows you would review and explain the type of information you hope to gain from reviewing each of those five aspects. Question 7: Give some examples of ways in which manager's goals can differ from those of shareholders. Question 8: Describe the major differences between individual and institutional investors.

You want to buy a car which will cost you $10,000. You do not have sufficient funds to purchase the car. You do not expect the price of the car to change in the foreseeable future. You can either save money or borrow money to buy the car.

• Plan 1: You decide to open a bank account and start saving money. You will purchase the car when you have sufficient savings. The nominal interest rate for the bank account is 6% per annum compounded monthly.

a) You will make regular deposits in your bank account at the start of each month for the next 2.5 years. Calculate the minimum required monthly savings to be deposited into the bank such that you would have sufficient funds to purchase the car in 2.5 years. (1 mark)

b) You will make regular deposits in your bank account at the start of each week for the next 2.5 years. Calculate the minimum required weekly savings to be deposited into the bank such that you would have sufficient funds to purchase the car in 2.5 years.

c) You will make regular deposits of $2,000 at the end of each year. Calculate how long will it take for you to have sufficient funds to purchase the car. (1 mark)

• Plan 2: You decide to borrow $13,000 from the bank and purchase the car now, as well as cover some other expenses. The bank offers two options for the structure of the repayments.

- Option 1: The first repayment will not start until you graduate from university. Therefore, no month-end-instalments will be made for the first 36 months. Then, commencing at the end of the 37^th month, a total of 30 month-end-instalments of $X will be made over the life of the loan. The nominal interest rate is 6% per annum compounded monthly.

d) Calculate X. (2 mark)

e) Your parents agree to help you repay the loan by contributing a lump sum of $1,800 when you successfully graduate from university. Calculate the new value of X. (1 mark)

- Option 2: For the first 36 months (while you are still studying), you will be making month-end-instalments of $Y. Then, commencing at the end of the 37^th month (when you graduate from university), you will double the amount of monthly repayment for the remaining 30 month-end-instalments. The nominal interest rate is 6% per annum compounded monthly.

f) Calculate the value of Y.

Any help is appreciated, thank you very much in advance!

Assignment: A complete analysis should include a summary of the case, a SWOT analysis, a financial analysis, identification of strategic issues and challenges, and a strategic plan. You must support your case analysis with at least 3 sources in addition to the textbook.

The case describes the business model of one of the world’s largest e-tailers, Amazon.com, Inc. (Amazon). Amazon had been at the forefront of innovation, adding and refining technology and changing the way customers shopped. It had a sustainable and innovative business model that intensely focused on its long-term growth opportunities as opposed to short-term profit margins. The case discusses the business model innovation at Amazon and how it evolved from just an online bookstore into one of the largest e-commerce platforms in the world where customers could find and discover anything they wanted to buy online in a more convenient way. The case outlines the four pillars of Amazon’s business model — low prices, wide selection, convenience, and customer service. Amazon attracted customers through low prices, prompt delivery, an ever-expanding array of services and products, and exemplary customer service.In 2015, Seattle-based e-commerce giant Amazon.com, Inc.(Amazon) surprised investors by posting an unanticipated second quarterly profit in a row after struggling with profitability the previous year. In the third quarter ended September 30, 2015, Amazon’s revenues increased by 20% to US$23.2 billion, while net income was US $79 million, compared with a net loss of US$437 million in the corresponding quarter of the previous year. The revenue growth was attributed to the company’s rapidly growing cloud-computing business, higher sales in North America, and initiatives to attract more customers. On the back of these unexpected quarterly results, Amazon shares surged, making it the most valuable retailer in the world surpassing Wal-Mart Stores Inc as of July 2015. BUILDING AND EVOLVING THE BUSINESS MODEL Over the years, Amazon had disrupted the online retail industry and transformed itself from an e-commerce player to a powerful digital media platform focused on growth and innovation. It constantly reinvented its business model and found new ways to create value for its customers. According to analysts, Amazon’s business model was innovative because it combined the company’s online retail expertise with its ability to understand the needs of its customers. Amazon moved beyond books to foray into completely new product categories such as e-readers and enterprise cloud computing services. AMAZON’S GROWTH WHEEL In 2001, Bezos and his employees outlined a virtuous cycle called the “Amazon Flywheel”, which they believed powered their business. Bezos once invited well-known author and business consultant Jim Collins (Collins) to participate in Amazon’s executive retreat in 2001 to discuss the company’s future. As part of the discussions, Collins told Bezos and his executives that they had to decide what they were best at. Drawing on Collins’s concept of a flywheel, Bezos and his executives drew their own virtuous circle placing customer experience at the core of Amazon’s flywheel. Internally, it was referred to as Bezos’ napkin diagram as he drew it on a napkin... GROWTH NOW, PROFITS LATER Amazon generated revenues by selling millions of products to customers through its retail website and by charging third party sellers who sold products on Amazon’s website. It also served as a platform for independent publishers to publish books on Kindle with a 35% or 70% royalty option. In addition, Amazon generated revenue from its cloud business by providing web technology infrastructure to developers and enterprises. It followed a high fixed costs and low marginal costs business model. According to Eugene Wei, a former Amazon employee... RESOURCES AND PROCESSES THAT SUPPORT THE STRATEGY Amazon was one of the most innovative companies in the US. From the beginning, it had been at the forefront of innovation, adding and refining technology and changing the way customers shopped. On invention being a second nature at Amazon, Bezos said... CHALLENGES According to industry observers, Amazon over the years had disrupted other online retailers and brick-and-mortar stores and leveraged its e-commerce operations to become a retail Goliath. However, some critics felt that Amazon was too ambitious as it had been growing alarmingly and investing heavily. They felt that the strategy could backfire and that Amazon needed to be selective about the opportunities it pursued as it could not take customers and the competition for granted... THE ROAD AHEAD Going forward, the company planned to launch new digital products and service categories, build more fulfillment centers, power AWS, and expand the Kindle Fire Ecosystem. The company also planned to hire 100,000 people in North America for the holiday season.

1. EXCHANGE RATES: AUSTRALIAN DOLLAR (AUD) [15 marks]
   1. Consider the following hypothetical (separate) events from December 2020 to December 2021:

1. Speculators are seriously concerned about long-term effects on the Australian economy of the coronavirus.
2. India and China increase their demand for Australia’s metals such as iron ore and lithium.
3. US Federal Reserve lowers the US cash rate from 1.50% to 0.50%, while the Reserve Bank of Australia raises its cash rate from 0.50% to 1.00%.

For each event, identify the specific factor and explain the likely effect on the price of the Australian Dollar (AUD) in the foreign exchange market. Use a relevant demand and supply for AUD diagram in each of your answers.

                                                                                               [9 marks]

1. b.Suppose in Australia the AUD in 2020 strongly depreciated against major currencies. Is there likely to be a contractionary or expansionary effect on the Australian economy from the depreciation of the AUD? Explain your answer.

                                                                                               [3 marks]

c) Discuss the likely effects a large appreciation of the AUD would have on: (i) consumers travelling overseas; (ii) wheat exporters; (iii) import-competing Australian firms such as manufactures. [3 marks]

The following information should be used when answering the provided questions below:- 1 Introduction Belaria Shoes was formed by two brothers who were passionate about diversity in cultures existing in Italy in early 1970s. At this time, the country was undergoing a period of rapid industrial growth and many companies were established that paid low wages and expected employees to work long hours in dangerous and dirty conditions. Workers lived in poor housing, were largely illiterate and had a life expectancy of less than forty years. The Belaria brothers held a set of beliefs that stressed the social obligations of employers. Their beliefs guided their employment principles – education and housing for employees, secure jobs and good working conditions. Belaria Shoes expanded quickly, but it still retained its principles. Today, the company is a private limited company whose shares are wholly owned by the Belaria family. Belaria Shoes still produce footwear in Petatown, but they now also own almost one hundred retail shops throughout Italy selling their shoes and ` IN SEMESTER (INDIVIDUAL) ASSIGNMENT Module Code: BUSS 1009 Module Name: Strategic Management Level: 3 Max. Marks: 100 Scaled down to 50 boots. The factory (and surrounding land) in Petatown is owned by the company and so are the shops, which is unusual in a country where most commercial properties are leased. In many respects this policy reflects the principles of the family. They are keen to promote ownership and are averse to risk and borrowing. They believe that all stakeholders should be treated fairly. Reflecting this, the company aims to pay all suppliers within 30 days of the invoice date. These are the standard terms of supply in Italy, although many companies do, in reality, take much longer to pay their creditors. The current Belaria family are still passionate about the beliefs and principles that inspired the founders of the company. Recent history Although the Belaria family still own the company, it is now totally run by professional managers. The last Belaria to have operational responsibility was Jock Belaria, who commissioned and implemented the last upgrade of the production facilities in 1991. In the past five years the Belaria family has taken substantial dividends from the company, whilst leaving the running of the company to the professional managers that they had appointed. During this period the company has been under increased competitive pressure from overseas suppliers who have much lower labour rates and more efficient production facilities. The financial performance of the company has declined rapidly and as a result the Belaria family has recently commissioned a firm of business analysts to undertake a SWOT analysis to help them understand the strategic position of the company. SWOT analysis: Here is the summary SWOT analysis from the business analysts’ report. Strengths Significant retail expertise: Belaria Shoes is recognized as a successful retailer with excellent supply systems, bright and welcoming shops and shop employees who are regularly recognized, in independent surveys, for their excellent customer care and extensive product knowledge. Excellent computer systems/software expertise: Some of the success of Belaria Shoes as a retailer is due to its innovative computer systems developed in-house by the company’s information systems department. These systems not only concern the distribution of footwear, but also its design and development. Belaria is acknowledged, by the rest of the industry, as a leader in computer-aided footwear design and distribution. Significant property portfolio: The factory in Petatown is owned by the company and so is a significant amount of the surrounding land. All the retail shops are owned by the company. The company also owns a disused factory in the north of Italy. This was originally bought as a potential production site, but increasingly competitive imports made its development unviable. The Petatown factory site incorporates a retail shop, but none of the remaining retail shops are near to this factory, or indeed to the disused factory site in the north of the country. Weaknesses High production costs: Italy is a high labor cost economy. Out-dated production facilities: The actual production facilities were last updated in 1991. Current equipment is not efficient in its use of either labor, materials or energy. Module Name Strategic Management (BUSS1009) – Semester – Spring 20 – CW 1 (Assignment) – Session D – QP MEC_AMO_TEM_034_01 Page 3 of 10 Restricted internet site: Software development has focused on internal systems, rather than internet development. The current website only provides information about Belaria Shoes; it is not possible to buy footwear from the company’s website. Opportunities Increased consumer spending and consumerism: Despite the decline of its manufacturing industries, Italy remains a prosperous country with high consumer spending. Consumers generally have a high disposable income and are fashion conscious. Parents spend a lot of money on their children, with the aim of ‘making sure that they get a good start in life’. Increased desire for safe family shopping environment: A recent trend is for consumers to prefer shopping in safe, car-free environments where they can visit a variety of shops and restaurants. These shopping villages are increasingly popular. Growth of the green consumer: The numbers of ‘green consumers’ is increasing in Italy. They are conscious of the energy used in the production and distribution of the products they buy. These consumers also expect suppliers to be socially responsible. A recent television programme on the use of cheap and exploited labor in Ethiopia was greeted with a call for a boycott of goods from that country. One of the political parties in Italy has emphasized environmentally responsible purchasing in its manifesto. It suggests that ‘shorter shipping distances reduce energy use and pollution. Purchasing locally supports communities and local jobs’. Threats Cheap imports: The lower production costs of overseas countries provide a constant threat. It is still much cheaper to make shoes in Ethiopia, 4000 kilometres away, and transport the shoes by sea, road and train to shops in Italy, where they can be offered at prices that are still significantly lower than the footwear produced by Belaria Shoes. Legislation within Italy: Italy has comprehensive legislation on health and safety as well as a statutory minimum wage and generous redundancy rights and payments for employees. The government is likely to extend its employment legislation programme. Recent strategies Senior management at Belaria Shoes have recently suggested that the company should consider closing its Petatown production plant and move production overseas, perhaps outsourcing to established suppliers in Ethiopia and elsewhere. This suggestion was immediately rejected by the Belaria family, who questioned the values of the senior management. The family issued a press release with the aim of re-affirming the core values which underpinned their business. The press release stated that ‘in our view, the day that Belaria Shoes ceases to be a Module Name Strategic Management (BUSS1009) – Semester – Spring 20 – CW 1 (Assignment) – Session D – QP MEC_AMO_TEM_034_01 Page 4 of 10 Petatown company, is the day that it closes’. Consequently, the senior management team was asked to propose an alternative strategic direction. The senior management team’s alternative is for the company to upgrade its production facilities to gain labor and energy efficiencies. The cost of this proposal is $37·5m. At a recent scenario planning workshop the management team developed what they considered to be two realistic scenarios. Both scenarios predict that demand for Belaria Shoes’ footwear would be low for the next three years. However, increased productivity and lower labor costs would bring net benefits of $5m in each of these years. After three years the two scenarios differ. The first scenario predicts a continued low demand for the next three years with net benefits still running at $5m per year. The team felt that this option had a probability of 0·7. The alternative scenario (with a probability of 0·3) predicts a higher demand for Belaria’s products due to changes in the external environment. This would lead to net benefits of $10m per year in years four, five and six. All estimated net benefits are based on the discounted future cash flows.

Question One: Using academic principles and examples from the above case, assess the following concepts:- (a) Strategy (b) Strategic planning (c) Strategy development.

Question Two : Belaria shoes wishes to develop a strategy for guiding its operations in future. (a) Classify and examine the main factors which are likely to shape and influence the values and strategy of the above organization? (b) Discuss the likely problems with mergers as a means of external growth.

i want the answer of Q2.

Read the extract carefully and apply the problem-solution pattern of analysis to it.

Process Reengineering at IBM Credit

IBM Credit finances the computers, software and services sold by IBM Corporation. The company is considered one of the world's most profitable publicly- traded companies. Processing a finance application usually took between six days and two weeks. The application wound its way from the credit department to the pricing department, to an administrator who wrote out a formal quote letter. When IBM Credit realized that processing an application actually took only about 90-minutes, and the rest of the normal processing time was spent with the application sitting on a pile on a specialist’s desk waiting to be looked at, they decided to reengineer the entire process. Here’s what IBM Credit did: The four specialists who previously processed the application were replaced by a generalist called the deal structurer, who processed the application from start to end using templates on a new computer system which provided all the data and tools each specialist commonly used. The results of the reengineering program were: Turnaround time was reduced from a typical 7 days to 4 hours. Without any increase in staff numbers, IBM Credit has been able to achieve a hundred-fold improvement in productivity. It can now handle 100 times the number of credit applications that were handled before reengineering was undertaken. Source: ( Adapted from Grant 2008)

Questions:

a) What is the starting situation?

b) What is the problem?

c) What is the underlying cause of the problem?

d) What solution has been proposed?

e) How successful is the solution?

Hubel and Weisel (1963) recorded from individual neurons from visual cortex. They found that neurons in primary visual cortex

1. Desimone, et al (1984) presented macaque monkeys with stimuli that included bananas, black snakes, toilet brushes, and faces, and recorded from individual neurons from visual-temporal cortex. The results showed that

   		a. neurons responded to all of these stimuli in the same way.
   		b. neurons responded selectively to face stimuli.
   		c. neurons responded selectively to the snake stimuli.
   		d. neurons responded selectively to the faces and the toilet brush stimuli.

I keep talking about “neurons responding selectively” to things. What does it mean for a neuron to “respond selectively”?