Comcast is the largest cable provider in the United States. This activity is important because despite its impressive power, influence, and politics, Comcast failed to effectively influence stakeholders including customers, employees, regulators, networks, and other content providers.

The goal of this activity is to apply the knowledge of OB in order to understand why Comcast failed in its bid to acquire Time Warner, and allow you to provide realistic solutions for future acquisition attempts.

Read the case about Comcast’s failure to influence key stakeholders. Then, using the 3-step problem-solving approach, answer the questions that follow.

Like many companies in the telecom industry, Comcast has chosen to grow by buying competitors. After acquiring AT&T’s Internet business in 2001, the company has remained on the acquisition train ever since. Its largest purchase to date was NBC Universal in 2011 for $18 billion, but its most notable was its thwarted 2015 attempt to buy Time Warner for $45 billion. Despite its impressive power, influence, and politics, Comcast failed to effectively influence stakeholders including customers, employees, regulators, networks, and other content providers. More than 300,000 comments were filed with the Federal Communication Commission (FCC) by customers who opposed the merger. For perspective, the merger between AT&T and T-Mobile drew just over 40,000 comments.¹

Why Bother in the First Place?

Comcast is the largest cable provider in the United States despite having the worst customer satisfaction ratings in its industry. It has twice earned the dubious distinction of being the “Worst Company in America,” according to Consumer Reports’ customer satisfaction arm. Comcast’s customer service was so poor as to be considered legendary. And its reputation with various networks and cable channels such as Discovery, Disney, 20th Century Fox, and the NFL Network had been declining for years.² These partners are in effect customers, and Comcast has pressured them to pay higher fees to distribute their content through its cables.³

Industry trends were affecting Comcast’s current performance and its future prospects. Consumers have been cutting the cable and instead accessing their content via streaming alternatives such as Netflix and Amazon Prime. Netflix alone accounts for one-third of all Internet traffic. But apparently believing that being No. 1 was not enough, Comcast’s leaders decided that acquiring Time Warner would enable them to better serve existing and new customers, as well as to defend against increasingly diverse competition from Google, Dish Network, and others.⁴

Attempts to Influence the Players

Comcast was determined and resourceful in its attempt to make things go its way. A major part of its efforts focused on Washington, D.C., since no merger of that size goes through without regulatory approval. Comcast employs a force of more than 100 lobbyists, and its $17 million annual lobbying budget is second only to Google’s.⁵ Lobbying efforts were largely intended to influence officials in the FCC and Department of Justice (DOJ), the regulators who would ultimately decide how the merger would affect competition and consumer choice, and who would either block it or allow it to proceed. Members of these government departments were buried in data, wined and dined, and presented with dazzling arguments highlighting the potential benefits of the merger. But Comcast did not stop there. CEO Brian Roberts courted President Obama, golfing with him on Martha’s Vineyard. And Comcast Executive Vice President David Cohen hosted three fund-raisers for the president at his home, raising more than $10 million for the Democratic party.⁶ Roberts and Cohen presumably thought that associating with key players in the government would win them favor with regulators and members of Congress who might influence the merger and other policies favorable to Comcast.

For its part, the company argued that a merger of the two largest players wouldn’t stifle competition but instead allow them to provide more services to more customers. For instance, it currently provides Internet services to low-income and rural residents. Combining with Time Warner, the company claimed, would enable it to serve even more of these customers.⁷

The Other Side and Ultimate Outcome

Ultimately, the money, the relationships, the lobbyists’ arguments, and the pressure failed to work. Its opponents used many of the same bases of power, influence, and political tactics to argue against the merger that Comcast used to promote it, and the company withdrew its bid for Time Warner. It didn’t help that Comcast already had such a poor reputation with many of the parties from whom it needed support. It is noteworthy that in mid-2016 Charter Communications successfully acquired Time Warner in a merger worth $79 billion.⁸

Assume you are CEO Roberts, and you want to successfully acquire a large competitor in the future. Drawing on what you learned from the Time Warner experience, what would you do now to improve your chances?

Apply the 3-Step Problem-Solving Approach to OB

Step 1: Define the problem.Step 2: Identify causes of the problem by using material from this chapter, which has been summarized in the Organizing Framework for Chapter 12 and is shown in Figure 12.9. Causes will tend to show up in either the Inputs box or the Processes box.Step 3: Make your recommendations for solving the problem. Consider whether you want to resolve it, solve it, or dissolve it (see Section 1.5). Which recommendation is desirable and feasible?

Tom is single and 68 years old. He has excellent eyesight. In 2019, Tom earned W-2 wages of $130,277 from his full-time job at Six Minutes, ABS, Inc. Tom received 10,466 in interest income from an Exxon Corporation bond that he owned in a taxable account. Tom had few allowable itemized deductions on Schedule A, so he claimed the standard deduction.

For 2019:

1) Tom's Tax on Taxable Income is $_______________________. (Important: For your answer, enter whole numbers only. Do not enter a dollar sign ( "$" ) or a comma ( " , " ) in your answer.

On July 1, 20X4, Pillow Corp. obtained significant influence over Sleep Co. through the purchase of

3,000 shares of Sleep's 10,000 outstanding shares of common stock for $20 per share. On December 15, 20X4, Sleep paid $40,000 in dividends to its common stockholders. Sleep's net income for the year ended December 31, 20X4, was $120,000, earned evenly throughout the year.

Required: From the parent perspective

1. Prepare the journal entry to record the acquisition.
2. Prepare the journal to record the dividends received from sleep.
3. Prepare the journal entry to record the income reported by sleep

Assume you are a partner in a successful computer consulting firm bidding for a contract with a large insurance company. Your chief rival is a firm that has usually offered services and prices similar to yours. However, from a new employee who used to work for that firm, you learn that it is unveiling a new competitive price structure and accelerated delivery dates, which will undercut the terms you had been prepared to offer the insurance company. Assume you have verified that the new employee is not in violation of any non-compete or nondisclosure agreement and therefore the information was not given to you illegally.

Would you change prices and delivery dates to beat your rival? Or would you inform both your rival and potential customer of what you have learned? Why?

A telecommunications company provided its cable TV subscribers with free access to a new sports channel for a period of 1 month. It then chose a sample of 398 television viewers and asked them whether they would be willing to pay an extra $10 per month to continue to access the channel. A total of 27 of the 398 replied that they would be willing to pay. The marketing director of the company claims that the percentage of all of its subscribers who would pay for the channel differs from 8%. Can you conclude that the director's claim is true? Use the α=0.10 level of significance and the P-value method with the table.

a. State the appropriate null and alternate hypotheses

b. Compute the value of the test statistic.

c. Using α=0.10, can you conclude that the director's claim is true?

d. state a conclusion

-When first observed, an oil spill covers 8 square miles. Measurements show that the area is tripling every 6 hrs. Find an exponential model for the area A (in mi²) of the oil spill as a function of time t (in hr) from the beginning of the spill. (Enter a mathematical expression.)

A(t)=

-An internet analytics company measured the number of people watching a video posted on a social media platform. The company found 129 people had watched the video and that the number of people who had watched it was increasing by 30% every 3 hours.

A=

-A restaurant owner deposits $6,000 into an account that earns an annual interest rate of 6% compounded monthly. Find an exponential growth model for A, the value of the account (in dollars) after t years. (Enter a mathematical expression)

A=

**please show work

Your company has a marketing director named Walter who is under a lot of pressure to come up with a new strategic plan for the company to enter a new market. Walter knows that he needs a lot of time to complete the plan, but has difficulty establishing periods of uninterrupted time at work because of meetings with clients and other staff members, as well as questions from employees. He is considering several options, including (a) working at home during the day to avoid interruptions; (b) delegating parts of the plan to his subordinates; or (c) working on the plan on weekends. The director has come to you for advice.

a. What factors (pros and cons) should he consider in making this decision? Is there another option he should consider? If so, what is it?

b. Finally, what option would you recommend, and why?

Subject: Professional ethics in computing

Question

You lead a group of five software engineers involved in the testing of a new product. Your manager tells you that because of a company-wide layoff, you need to give notice to one member of your team. From your interactions with the team members, you can easily identify the two members who are least productive, but you are not sure which of them you should lay off. You know that the company keeps track of all Internet traffic to each person’s computer, although you have never shared this information with your team. You could use this information to determine how much time, if any, these two employees are spending surfing the Web. Is it wrong to access these records?

1.       All of the following individuals can file as head of household EXCEPT_______

·         Kathy is an unmarried taxpayer who pays all of the costs to maintain her home and provides more than half the support for her five-year old son with whom she lives.

·         Daniel is married taxpayer who lives with and provides more than half the support for his seven-ear old daughter. He also provided more than half the costs of maintaining their household. Daniel’s wife moved to Colorado in April and do not with Daniel or their during the remainder of the year.

·         Charlotte is a married taxpayer who lives with her mother-in-law Emalyn and her ten-year old daughter in Emalyn’s home. Charlotte provides ore than half the cost of maintaining the household and provides more than half of her daughters support. Charlotte’s husband is in the military and has been deployed all year.

·         Nelson is a married father who lives with and provides all of the support for his children ages 7 and 8. Nelson and his estranged wife have not lived in the same residence for at least two years.

​

1.       The best description of gross income is ____

·         All worldwide income derived from whatever source, unless excluded taxation by law.

·         Self-employment income received less expenses.

·         Income received for service performed, including wages, commissions, tips and generally, farming and other business income.

·         Income that is received for the investment of money or other property.

​

1.       What is the age requirement, if any, to contribute to a Roth IRA?

·         Taxpayers must be at least age 18, and less than age 70 1/2

·         There is no age requirement if the taxpayer meets the compensation requirements.

·         The taxpayer must be at least age 18, but there is no maximum age.

·         The taxpayer must be at least 18 but less than 70 ½, and meet the compensation requirements.

​

1.       Which of the following best describes earned income?

·         All worldwide income from whatever source derived, unless excluded from taxation by law.

·         Gross income less reductions that are allowable, regardless of whether personal deductions are itemized.

·         Income received for services performed including wages, commissions, tips and generally farming and other business income.

·         Income that is received from the investment of money and other property.

​

1.       The contribution that does NOT qualify an employee to claim the retirement savings contributions credit (Saver’s Credit) is _____

·         A contribution to Roth IRA

·         An employer’s matching contribution to an employee’s 401K plan

·         A nondeductible contribution to a traditional IRA.

·         A voluntary contribution to 403b tax-sheltered annuity.

​

1.       All of the following are additional requirements for taxpayer without a qualifying child to claim EITC, EXCEPT the taxpayer ______

·         Must reside in the U.S for more than half the year.

·         Cannot be dependent of another taxpayer

·         Must earn their income as an employee. They cannot be self-employed.

·         Must be between the ages of 25 and 65.

2.       Herman, who is not a dependent, states he wishes to EITC this year for his 35-year-old dependent child. Both reside in the U.S. Herman states that the child lives with him, is not married, is disabled, and has not worked during the year. What should Herman’s Tax Professional do to determine if the child can qualify Herman for EITC?

·         Enter Herman’s child on his tax return and identify him as a disabled qualifying child.

·         Advise the client of the tax definition of disabled, and apply sound judgement and common sense to see if the definition is met.

·         Ask for proof of the child’s income

·         Explain for Herman that a 35-year old child is too old to be a qualifying child for EITC.

3.       For a taxpayer with a qualifying child, which statement is NOT a requirement to claim EITC?

·         Must be at least 25 years old, but younger than age 65, on January 1, 2018

·         Have a child who is not claimed by more than one person for EITC.

·         Have a qualifying child who meets the relationship, age, residency, and joint return test.

·         Must not be a qualifying child of another person.

1.       Which taxpayer is required to file a federal income tax return for 2017?

·         Head of household (58), with a gross income $11,800

·         Married filing jointly (72 and 68) with a gross income $21,850

·         Married filing jointly (72 and 63) with a gross income $22,900

·         Married filing separately (72) with a gross income of $4,000

2.       Which of the following is included in federal gross income?

·         Qualified clergy housing allowances

·         Compensation for personal injuries

·         Interest on sale and local bends

·         Unemployment compensation

1.       An unmarried dependent taxpayer of another taxpayer is required to file a 2017 federal income tax return if they are not blind and age ____ with gross income of _____

·         2; $1,075 (all from interest)

·         16; $1,000 ($800 from wages: $200 from interest)

·         17; $1075 ($700 from wages: $375 from interest)

·         18; $6,300 (all from wages)

​

​​

GAAP is the accounting standard used in the US, while IFRS is the accounting standard used in over 110 countries around the world. GAAP is considered more rules based and IFRS is more principles based. Which standard do you feel is best suited for the US and if the SEC decides to switch over to IFRS how will that affect US companies?