Amcor is a global leader in responsible global packaging solutions supplying a broad range of rigid & flexible packaging products. It is a large company, with revenues of US$9.5 billion, 27 200 employees, 66 000 shareholders and 180+ sites in 43 countries. Amcor's history dates back to the 1860s when Samuel Ramsden arrived in Australia to seek his fortune in a new land. He established Victoria's first paper mill on the banks of the Yarra River in Melbourne. For most of its life this operation was known as Australian Paper Manufacturers. In the 1970s and 1980s the company added a range of diverse packaging interests to its traditional papermaking activities and in 1986 changed its name to Amcor Ltd. Amcor now serves markets around the globe by pursuing profitable organic growth, strategic acquisitions and divestments and the provision of packaging solutions in Australia, Europe, Latin America, Switzerland and the United States of America.Amcor’s is world’s largest producer of Polyethylene terephthalate (PET) bottles (such as those
used by Coca and many other household and industrial products). Other packaging products
produced include materials for industrial applications such as aerospace, agriculture, automotive,
energy and insulation. Amcor also manufactures flexible and rigid packaging for food, household
items, personal and homecare products, tobacco products, beverages, hospital sterilisation units,
medical devices, and pharmaceuticals. They also provide services in packaging design, materials,
testing and recycling. Amcor is currently structured into three business groups namely, Flexible
Packaging, Rigid Plastics and Tobacco and Specialty Packaging.
Amcor’s main competitors are Ball Corp, Mondi PLC, Sealed Air Corp, UPM Kymmene OYJ and
Weyerhaeuser Co. Amcor is committed to light weight packaging innovations which save
thousands of tonnes of the earth’s resources and reduce CO2 emissions through lower raw
materials usage and reduced fuel consumption for the transport of its products. Efficient use of raw
materials reduces the volume of material that needs to be managed through recycling programs
and reduces the quantity of packaging material sent to landfill. Amcor works strategically with
partners throughout their entire value chain, and is thus able to unlock powerful social,
environmental and economic opportunities throughout a product’s entire life cycle. For example,
Amcor’s rigid plastic bottle value chain starts with packaging planning and design, raw material
(plastic resins) purchase, manufacture and transport, conversion of raw materials into rigid plastic
packaging, establishing targets to reduce waste to landfill, greenhouse gas emissions and municipal
water use, and delivery to customers’ manufacturing sites for use in packaging their products.
The packaged products are then transported through an often-complicated supply chain for
ultimate display and sale by retailers around the world. At the end of the product life cycle
packaging can still add value, as a result of sophisticated re-cycling and energy recovery processes.
Issues: Budgetary control systems dilemma
Sue was learning more about the organisation every day. Her immediate boss was the Chief
Financial Officer, Nick Rafter, who organised a meeting with her. As Sue had a background in
Management Accounting, the CFO felt it was in her best interest to learn the budgetary process
within the organisation. He was one among the many CFOs across Amcor’s global manufacturing
plants. He was the CFO of the Australian business and had the following to say:
“In Australia, we operate over 50 packaging and recycling sites in all States and Territories and
are a leading manufacturer of fibre, metal, flexible plastic and glass packaging with annual sales
of around A $1.9 billion. Amcor Paper is a leading producer of recycled paper, brown liners and
fluting grades for the Australian and Asian markets. With the commissioning of a new Paper
Machine at our Botany site (NSW), Amcor Paper will increase efficacy and capacity to suit
Amcor’s internal and external requirements. As a leading packaging supplier to food, beverage
and industrial manufacturers in Australia and New Zealand, Amcor Corrugated Packaging offers
a full service, from design and testing through to automation and supply chain integration. Amcor
Carton board supplies carton board from its Petrie Mill in Queensland, the only carton board mill
in Australia, to packaging manufacturers across Australia and New Zealand. With eight plants
across Australia and New Zealand, Amcor Folding Cartons has the widest geographical coverage
of any carton manufacturer in the region.”He paused and then said to Sue,
“I can carry on about the Australian operations, but my immediate problem is the annual budget
process. It is a daunting task to bring together the budget for the 50 packaging and recycling sites
across Australia.”
He continued
“We have to identify responsibility centres and it is often confusing to separate out cost centres,
revenue centres, profit centres and investment centres. What we would like to do is to have
operating budgets across the 50 sites and have a consolidated set of financial budgets for the
whole Australian operation.”
At this point Sue interrupted Nick and asked him about the current budgeting process; Nick
explained how each site prepares its own operating budget which is coordinated at the head office.
Nick said:
“Each manager prepares the budget for his responsibility centre within each site, but they don’t
seem to get it right. There seems to be a lot of toing and froing (moving back and forth) after
preparing the initial estimates.
He closed by saying:
“Surely there must be a better way of doing this. What are your ideas about these issues”?
REQUIRED:
Examine and evaluate each of the following FOUR issues and write responses to each of
them in your own words.
5 marks for each issue.
Issue 1
Explain to Nick how the budgeting process at AMCOR can be used to achieve financial
accountability within a responsibility framework.
Issue 2
Explain to Nick how budgets can become more meaningful to the managers when they reflect
the strategic plan of the organisation.
Issue 3
Describe to Nick, with examples, how participative budgeting can give employees the feeling
that ‘this is my budget’, rather than the feeling that ‘this is the budget you can impose on me’.

Issue 4
“It is a daunting task to bring together the budget for the 50 packaging and recycling sites across
Australia,” said Nick to Sue in a conversation above. Write your comment(s) on this statement.

I need answers for d

This question uses the "Morphine" data set, available on Canvas. As usual, you have been randomly assigned one of 10 versions of this data. Your version is 10. On Canvas there is a .pdf document that describes the study this data is based on. You can find this under Additional Class Stuff / Data. Please read this before you start analyzing data. You will be asked some questions that require you to interpret results in light of the study's hypotheses, and these questions will not make sense if you haven't read the study description. 1. Use Analyze / Fit Y by X to tell JMP what your predictor and response variables are. Then select Means / ANOVA from the drop down menu. Report the values of the following statistics: a. SSG (JMP calls this "Treatment sum of squares"): b. SSE: c. MSG: d. MSE: e. The test statistic that tests H0:μM_S = μM_M = μS_S = μS_M = μM_M new: 2. Based on the result of this analysis, we can say (select all that apply): (you have five attempts) We reject H0 and conclude that all group means are equal We reject H0 and conclude that all group means differ from one another We reject H0 and conclude that at least one group mean differs from the rest The test statistic is bigger than we'd expect it to be if all group means were equal The test statistic is smaller than we'd expect it to be if all group means were equal The test statistic is about what we'd expect it to be if all group means were equal The average between group variation is large relative to the average within group variation The average between group variation is small relative to the average within group variation The average between group variation is not very different from the average within group variation 3. From the "Oneway Analysis" drop down menu, select Compare Means / Each Pair, Student's t. a. Select the pairwise comparisons that are significant, using a comparison-wise error rate of α=0.05 (you have three attempts) μM_S - μM_M μM_S - μS_S μM_S - μS_M μM_S - μM_M(new) μM_M - μS_S μM_M - μS_M μM_M - μM_M(new) μS_S - μS_M μS_S - μM_M(new) μS_M - μM_M(new) b. If we want to use a Bonferroni correction to control the family-wise error rate at α=0.05, what comparison-wise error rate should we use? c. Select the pairwise comparisons that are significant, using a Bonferroni correction to control the family-wise error rate atα=0.05 (you have three attempts) μM_S - μM_M μM_S - μS_S μM_S - μS_M μM_S - μM_M(new) μM_M - μS_S μM_M - μS_M μM_M - μM_M(new) μS_S - μS_M μS_S - μM_M(new) μS_M - μM_M(new) There is another popular multiple testing adjustment specially designed for cases when you want to compare each group mean to each other group means; i.e. when you want to run "all pairwise comparisons". This adjustment method is called Tukey's HSD (or Tukey-Kramer HSD). It is the option in JMP just underneath the "Each Pair, Student's t" when you select "Compare Means" from the drop down menu. Tukey's HSD lowers the comparison-wise error rate by making p-values larger, rather than by making the significance level smaller. d. Run this function in JMP, and identify which pairwise comparisons are significantly different, using the 0.05 significance level. (you have three attempts) μM_S - μM_M μM_S - μS_S μM_S - μS_M μM_S - μM_M(new) μM_M - μS_S μM_M - μS_M μM_M - μM_M(new) μS_S - μS_M μS_S - μM_M(new) μS_M - μM_M(new) 4. Now you'll interpret the results in light of the study's hypotheses. a. The researchers predicted that morphine tolerant rats receiving saline when expecting morphine would be extra sensitive to pain. The scientific hypothesis was that the expectation of morphine would cause rats to compensate by increasing their pain sensitivity. What statistical result would constitute evidence for this hypothesis? (you have three attempts) Observing a significant difference in the means of M_M(new) and S_S Observing a significant difference in the means of M_S and S_M Observing a significant difference in the means of M_S and S_S Observing a non-significant difference in the means of M_M and S_S Observing a significant difference in the means of M_M(new) and S_M Observing a non-significant difference in the means of M_M and M_S Observing a non-significant difference in the means of M_M(new) and S_M Observing a non-significant difference in the means of M_M(new) and S_S b. The researchers also predicted that placing morphine tolerant rats in a new environment before administering more morphine would "undo" the effect of morphine tolerance. What two statistical results would be consistent with this hypothesis? (There are two correct answers; select them both) (you have five attempts) Observing a significant difference in the means of S_S and M_M(new) Observing a non-significant difference in the means of S_S and M_M(new) Observing a significant difference in the means of M_M and M_M(new) Observing a significant difference in the means of S_M and M_M(new) Observing a non-significant difference in the means of M_M and M_M(new) Observing a non-significant difference in the means of S_M and M_M(new) c. Which of the following are appropriate interpretations for the comparison of the S_S and M_M groups (There are four correct answers; select them all)? (you have five attempts) The observed data are not inconsistent with the hypothesis that population mean tolerances for the M_M and S_S treatments are equal We FTR H0: μM_M = μS_S The difference in means between morphine tolerant rats who received more morphine and rats who never received any morphine is no bigger than what we'd expect to see by chance alone, if their population means were equal. We have significant evidence that μM_M and μS_S are not equal. We have significant evidence that μM_M and μS_S are equal. Morphine tolerant rats who received more morphine did not have a significantly different average pain tolerance than rats who never received any morphine. The difference in means between morphine tolerant rats who received more morphine and rats who never received any morphine is smaller than what we'd expect to see by chance alone, if their population means were not equal. The observed data are inconsistent with the hypothesis that population mean tolerances for the M_M and S_S treatments are not equal.

Morphine data set:

latency,Treatment

3,M_S

5,M_S

1,M_S

8,M_S

1,M_S

1,M_S

4,M_S

9,M_S

2,M_M

12,M_M

13,M_M

6,M_M

10,M_M

7,M_M

11,M_M

19,M_M

14,S_S

6,S_S

12,S_S

4,S_S

19,S_S

3,S_S

9,S_S

21,S_S

29,S_M

20,S_M

36,S_M

21,S_M

25,S_M

18,S_M

26,S_M

17,S_M

24,M_M(new)

26,M_M(new)

40,M_M(new)

32,M_M(new)

20,M_M(new)

33,M_M(new)

27,M_M(new)

30,M_M(new)

1. Doctors obtained the data below on the number of recovery days in the hospital using the new and old gastric bypass surgery procedures. Using the new and old surgery procedures, do the data provide sufficient evidence to conclude that the mean number of recovery days in the hospital is smaller with the new surgery procedure than with the old procedure? Use the appropriate statistical test to determine if using new surgery procedure results in a smaller mean number of recovery days. All appropriate statistical procedures/tests should be done with 5% P-value or 95% Confidence Interval.

Click here for the Bypass_surgery-PA#23 data. (3 points)

• a. P-value = 0.001. We are 95% confident that the data provide sufficient evidence to conclude that the mean number of recovery days in the hospital is smaller with the new bypass surgery procedure than with the old procedure.
• b. P-value = 0.025. We are 95% confident that the data provide sufficient evidence to conclude that the mean number of recovery days in the hospital is smaller with the new bypass surgery procedure than with the old procedure.
• c. P-value = 0.156. The test is inconclusive and we cannot conclude that the mean number of recovery days in the hospital is smaller with the new bypass surgery procedure than with the old procedure.
• d. P-value = 0.078. The test is inconclusive and we cannot conclude that the mean number of recovery days in the hospital is smaller with the new bypass surgery procedure than with the old procedure.
• e. None of the choices.

1.      Assuming the starting income new College graduates is normally distributed with a mean of $60,000 and standard deviation of $9,000.
A.        What is the probability of selecting a new College graduate at random and finding that he/she has a starting salary of less than $55,000?
B.      What proportion of new College graduates would be expected to have a starting salary of more than $48,000?
C.      What is the probability of randomly selecting a new College graduate with a starting salary between $60,000 and $75,000?
D.     What is the probability of selecting a new College graduate at random with a starting salary of less than $85,000?
E.      What percentage of new College graduates would be expected to have starting salaries between $50,000 and $70,000?

2.      Suppose a company wanted to know if there was a significant in the average income of its male and female customers.  Develop a null and alternate hypothesis for such a problem and give a conclusion based on the p-value results of .04.
Assume you are testing at the .05 level of significance.

3.      A company wants to know the useful life of a new revolutionary lightbulb it has just developed.  A mean of 64 of these bulbs revealed a mean useful life of 30,000 with a standard deviation of 1,500 hours.

A.      Use this information to develop a 95% confidence interval for the mean useful life of all new revolutionary lightbulbs.
B.      Use this information to develop a 98% confidence interval for the mean useful life of all new revolutionary lightbulbs.

4.      A pizza delivery company is concerned that it can no longer count on its average variable cost of $ 4.00 or less.  A sample of 36 pizzas revealed a variable cost of $4.05 and a standard deviation of $.25.  Testing at the .05 level of significance.  Develop null and alternate hypothesis for this claim and give a conclusion if your p-value is .06.

WACC Estimation

On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $20 million in new projects. The firm's present market value capital structure, here below, is considered to be optimal. There is no short-term debt.

New bonds will have a 6% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) The marginal tax rate is 25%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Round your answer to the nearest dollar.

   $  

2. Assuming there is sufficient cash flow for Tysseland to maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places.

     %

3. Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC? No numbers are required to answer this question. Select the correct choice from the options below:

   I. r_s will decrease and the WACC will increase due to the flotation costs of new equity.
   II. r_s and the WACC will not be affected by flotation costs of new equity.
   III. r_s and the WACC will increase due to the flotation costs of new equity.
   IV. r_s and the WACC will decrease due to the flotation costs of new equity.
   V. r_s will increase and the WACC will decrease due to the flotation costs of new equity.

On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $25 million in new projects. The firm's present market value capital structure, here below, is considered to be optimal. There is no short-term debt.

New bonds will have an 9% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20, so the dividend yield is $1.20/$30 = 4%.) The marginal tax rate is 40%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Write out your answers completely. For example, 13 million should be entered as 13,000,000. Round your answer to the nearest dollar.

   $   

2. Assuming there is sufficient cash flow for Tysseland to maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places.
     %
3. Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC? No numbers are required to answer this question.
   I. r_s and the WACC will decrease due to the flotation costs of new equity.
   II. r_s will increase and the WACC will decrease due to the flotation costs of new equity.
   III. r_s will decrease and the WACC will increase due to the flotation costs of new equity.
   IV. r_s and the WACC will not be affected by flotation costs of new equity.
   V. r_s and the WACC will increase due to the flotation costs of new equity.
   -Select-IIIIIIIVVItem 3

On January 1, the total market value of the Tysseland Company was $60 million. During the year, the company plans to raise and invest $25 million in new projects. The firm's present market value capital structure, shown below, is considered to be optimal. Assume that there is no short-term debt.

New bonds will have an 7% coupon rate, and they will be sold at par. Common stock is currently selling at $30 a share. The stockholders' required rate of return is estimated to be 12%, consisting of a dividend yield of 4% and an expected constant growth rate of 8%. (The next expected dividend is $1.20, so $1.20/$30 = 4%.) The marginal corporate tax rate is 40%.

1. In order to maintain the present capital structure, how much of the new investment must be financed by common equity? Enter your answer in dollars. For example, $1.2 million should be entered as $1200000. Round your answer to the nearest dollar. Do not round intermediate calculations.

   $  

2. Assuming there is sufficient cash flow such that Tysseland can maintain its target capital structure without issuing additional shares of equity, what is its WACC? Round your answer to two decimal places. Do not round intermediate calculations.

   %

3. Suppose now that there is not enough internal cash flow and the firm must issue new shares of stock. Qualitatively speaking, what will happen to the WACC?

   _____IIIIIIIVV

   I. r_s and the WACC will decrease due to the flotation costs of new equity.
   II. r_s will increase and the WACC will decrease due to the flotation costs of new equity.
   III. r_s will decrease and the WACC will increase due to the flotation costs of new equity.
   IV. r_s and the WACC will not be affected by flotation costs of new equity.
   V. r_s and the WACC will increase due to the flotation costs of new equity.

Please study the article below and answer to the following questions: 1. As an operation manager for a service company (Amazon, FedEx, UPS, pizza shop, pharmaceutical services, resident manager, coffee shops and bank tellers) what safety plan do you need to implement to minimize the risk for the delivery workers during the pandemic corona virus and also for “Safety stock versus MRP” 2. Do you think the employees in these businesses should continue to work during the “shelter in place” and restrictions now in March-April 2020 due to corona virus impact?

Workers push for more safety measures

Grocery delivery startup Instacart's delivery workers were set to begin a work stoppage Monday to press safety demands, as a walkout was planned by employees at an Amazon warehouse said to be the site of coronavirus infections. - Agence France-Presse

Under normal circumstances, delivering pizza, filling prescriptions or making bubble tea might not seem heroic. But when workers across the country are being told to stay at home, service workers and pharmacists are putting themselves at risk just by doing their jobs. - The New York Times

"This sounds dramatic, but I think people are really scared for their lives," said Sarah Clarke, an organizer with the group behind the Instacart strike.

They Are Still Working During the Coronavirus Outbreak

On March 20, in an effort to control the growing number of coronavirus cases in New York — New York City in particular — Gov. Andrew M. Cuomo issued an executive order requiring all nonessential businesses to keep their workers at home. Restaurants, grocery stores, pharmacies, convenience stores and hardware stores are all deemed essential, and all are allowed to remain open.

Damon Winter walked one block in Manhattan — on 72nd Street between Broadway and Columbus Avenue — to conduct an informal photographic census of the businesses still open and the people who were working in the hours before Governor Cuomo’s order went into effect.

Under normal circumstances, delivering pizza, filling prescriptions or making bubble tea might not seem heroic. But when workers across the country are being told to stay at home, service workers and pharmacists are putting themselves at risk just by doing their jobs. Simple actions like commuting to work or opening a door could expose them to the coronavirus.

In the past few weeks, New York City, a massive city by any measure, has shrunk. The block is one’s village. These are the people who make it tick.

Emdadul Chowdhury has worked at Gray’s Papaya, a city institution selling hot dogs and tropical drinks, since 2008, preparing food or tending the register. Only four people are working there now (compared with seven before the executive order), and it has gone from being a 24-hour operation to being open just six hours a day.

“Compared to last week, less and less people are coming into the store,” Mr. Chowdhury said. His main fear is of contracting the coronavirus on his commute from the Bronx, on a mostly empty D train. He wears gloves and a mask and washes his hands.

Chow Mok owns Zen Medica, a nutritional supplement store. “Every time people come in, we’re trying to tell them to stay calm, to relax. Stress is going to compromise the immune system,” she said.

“Protecting ourselves is helping to manage and support our own body’s defense, which is the immune system,” Ms. Mok added. “I get nervous too but having more freak-out attacks is not going to help anybody.”

She has a shipment of organic hand sanitizers, medicinal mushrooms and immune-support nutrients coming in. With fewer people walking through the door, most of her business has transitioned to shipments.

Donna Schofield owns Stationery and Toy, which sells office and school supplies, party supplies, board games and, lately, a lot of toilet paper, hand sanitizer and Clorox wipes.

“It’s kind of hard to stay afloat,” Ms. Schofield said. “I might be able to manage it. I’m just going day by day right now.”

“We leave the front door open so that nobody has to touch the handle,” she added. “We’re just going with the flow. I survived Sandy. I can probably survive this, too.”

Andrew Greaves has delivered packages for FedEx for five years. His route extends on 72nd Street from Riverside Drive to Central Park West. “It’s like Christmas all over again,” he said. “The more people are staying home, the more they order.”

Although the volume of packages has gone up during the pandemic, some aspects of his job are easier. “The more deserted the streets are, the easier it is to deliver a package in Manhattan,” Mr. Greaves said. Another good thing is that almost everyone is at home to accept a package.

“The only thing that is weird and different is the part where someone would have to sign for a package,” he said. People are hesitant to touch the scanner. Instead, FedEx is allowing him to write “C-19” in place of a customer’s signature.

“I’m thankful to still be working, that’s for sure,” Mr. Greaves said.

Sherif Eltahawy is a pharmacist and the owner of two pharmacies on 72nd Street: Joseph Pharmacy and Wellness Pharmacy. In addition to shortening his stores’ hours, he has asked all his workers to use masks and gloves and allows no more than five customers into each store at once.

“A lot of people are more panicked than is necessary,” he said. “It is understandable, but a lot of people are afraid that there’s going to be a shortage of their medications.”

Acetaminophen, hand sanitizer and cough medications are in short supply. “We’re trying to order from different vendors, different suppliers, to do the best we can to stock,” he said, “but it’s very limited.”

Althea Gordon has worked for nine years as a teller at Citibank. “I’m holding on to what’s going on,” she said. “It’s hard. It’s stressful. I’m taking precautions.” At work, she says, she is using a lot of hand sanitizer. “We wash our hands often and we use Lysol inside and outside.”

Citibank has shortened her branch’s hours, but it is still open six days a week. “People are nice when they come in,” Ms. Gordon said. “They tell us that they appreciate us.”

“I love to help people and I love to work with people,” she added. “That’s why I get up every day.”

Not surprisingly, Babacar Fall, the manager of Gartner’s Hardware, has seen an uptick in sales of face masks, gloves, cleaning supplies, hand sanitizers and thermometer batteries.

“The business never goes down, honestly. I have very good customers,” he said. “We’re doing better, compared to neighbors and everybody.” He came to New York from Senegal in 1984.

As the resident manager of an apartment building on the block, Blerim Havolli maintains and cleans the building. He has been doing this job for eight years. With the coronavirus, “I have to clean more than any other time,” he said.

He worries about people who enter the building to deliver food or packages. “You don’t know if one of them is infected or not,” he said.

“I’m trying to be very careful because I’m the guy who has responsibility of the building at this time,” Mr. Havolli said. “If I get sick, the building isn’t going to fall down, but nobody can clean up.”

Mr. Havolli has lived in New York City since 1999. Now a U.S. citizen, he immigrated from Kosovo as a refugee.

Juan Gutierrez has worked for three years as a chef at Friedmans. Normally he works 40 hours a week, but that has been reduced to 15 or 20.

“The business has gone down, I imagine, by 85 percent,” he said. “It’s difficult because the store used to have a lot of employees, and many of them are without work and they have families and kids.”

Before the executive order, there would be four or five others with him in the kitchen, but for now, he cooks alone, mostly for delivery. One of his colleagues started a GoFundMe page for his co-workers who are without work.

Rachel Pellerin moved from Florida a month and a half ago to start a church for deaf people with her husband. She works at Coco Fresh Tea & Juice to help finance that dream.

“We stayed open and so far we have been getting a lot of delivery orders,” she said. “I’m grateful to still be able to get paid, but at the same time it can be a little nerve-racking because I know the danger of being outside.”

She and her co-workers disinfect the shop at least once an hour.

Tahmid Khan worked at Dunkin’ Donuts for two years before quitting on Monday. He is a student in computer science at City College.

“I think that it’s irresponsible to keep the store open given the circumstance right now,” he said. “It’s not safe for me or for the customers. It was a $15-an-hour job. I don’t care if I lose it.” He moved to New York three years ago from Bangladesh.

“I think the Dunkin’ Donuts franchise should be more responsible about their operations,” he said. “I just don’t think that they don’t care about the workers or the customers at all. They just care about the money.”

Jayang Tenzin works at Pho Shop, a Vietnamese restaurant. “I’m just a server doing my work from my heart,” he said. “Times like this you have to be there for each other.” Mr. Tenzin moved to New York from Tibet eight years ago. “Got to chase the American dream,” he said.

He commutes an hour on the No. 2 train from Brooklyn. “It’s very quiet. It’s like a ghost town,” he said. “I come out of work, I don’t see anybody.”

Issouf Mande has delivered for Domino’s on an e-bike for two years. “I am scared of the virus because I’m going everywhere, opening every kind of door, going to any kind of house, meeting any kind of people,” he said.

“Most deliveries I deal with the doorman or just call the person and leave it in front of the door.”

Mr. Mande moved to New Jersey three years ago from Burkina Faso. He doesn’t understand why Domino’s is still open. “I think it’s not safe,” he said. “We meet so many people in deliveries. I don’t see enough protection.”

Benjamin Loucks has been homeless for two years. “There is no money to be made,” he said. “No traffic.”

Harvey Hogan was in his 31^st year as Director of Athletics at Wilson College, a coeducational, private liberal arts college that offered 16 sports and was a member of the Champions Intercollegiate Athletics Conference (CIAC). Mr. Hogan was proud of the fact that, although his budget was the smallest in the conference (which consisted of 10 schools), he had always operated in the black.

    However, the college faced some serious financial issues in the current school year due to a drop in enrollment during the spring semester. As a result, the Chief Financial Officer (CFO) told all department heads that their individual budgets could NOT go over what had been appropriated at the start of the year.

     Mr. Hogan met with the coaching staff and apprised them of the financial crisis that faced the college. He asked for their help but really did not foresee a problem since the Athletics Department had never gone over budget in his previous 30 years.

     On June 30^th, the fiscal year ended and the CFO (Ms. Newman) put an emergency call into Mr. Hogan. She scheduled a meeting with him so he could explain why he was over budget by $12,000.00. She told him that 4 sports had exceeded their budgets—men’s lacrosse, women’s volleyball, men’s tennis, and football.

     When Mr. Hogan returned to his office he immediately called each coach and scheduled meetings with them. According to the women’s volleyball coach, she had failed to check her monthly computer printouts because she was “too busy coaching and recruiting” to spend time on the printout. She said she was sure she stayed within her budget and did not overspend. After some investigating by Mr. Hogan, the coach admitted that she had been asked to serve as a chaperone for the intramural flag football team which travelled to New Orleans for the national tournament. She had transferred some volleyball funds to their account to help them cover their costs. She also paid for their uniforms, but indicated that it was the first time she had ever gone over budget.

     The football coach was also shocked to learn he was over budget by $5000.00. He discovered that the company that washed the team practice and game uniforms failed to send a monthly statement as he had requested. Instead, the owner of the cleaning company waited until the end of the school year to send a bill for $5000.00. Moreover, in previous years several football student athletes who were offered grants-in-aid did not report for practice choosing to enroll at other institutions. The coach assumed this would happen again. However, every scholarship athlete reported for practice which put him over by two grants ($40,000.00). While he was still in compliance with the conference, he was above the institutions limit.

     The men’s tennis coach has always ignored Ms. Newman’s directive to turn in all receipts by June 1^st. Instead, he regularly procrastinated until as late as mid-July when he would turn in receipts for the national tournament held in May. He was $2000.00 over budget.

     Men’s lacrosse exceeded its budget because the coach, who had built a nationally ranked team, had decided to take a trip north to play several games over spring break. He had no other excuse except that he felt the tough competition would help his national ranking and bring good publicity to the college and help his recruiting.

     In addition to these problems, another serious one surfaced. The track and field coach wanted a new computer. When he was told that the request would not be approved until the next year, he worked out a deal with a local computer store. The salesperson agreed to let him get a computer and hold the bill until the next year when he was told he could purchase the computer. Unfortunately, the salesperson was fired and the store owner demanded payment immediately.

     The final frustration came when 12 dozen pairs of athletic socks arrived. The bill had no identifiers on it so Mr. Hogan could not tell who ordered them. No one would admit it and it was a mystery as to how the purchase order got through the business office without the approval of the Athletics Director, Mr. Hogan.

     In the next meeting that Ms. Newman had with Mr. Hogan, she was furious. She asked Mr. Hogan “who is in control of the Athletics Department budget—you or your coaches!” What should Mr. Hogan do?

Questions for Discussion

1. It’s now the middle of July. What can Mr. Hogan do, if anything, about what happened in the last fiscal year? (5 pts.)

2. Make a list of all of the problems you see in the situation above. (10 pts.)

3. Describe how Mr. Hogan can remedy those problems to prevent them from happening in the future. (20 pts.)