AIRLINE HOPES TO CUT COSTS, REGAIN MARKET SHARE

Air Canada unveiled its long awaited discount carrier yesterday, but warned that customers shouldn’t expect fares to immediately be lower than those already offered by Air Canada. Steve Smith, president and chief executive officer of Zip Air Inc., said the new airline is being created to cut Air Canada’s costs – not to reduce fares. ‘Right now, the price is already low, particularly in this market,’ he said, adding that prices could fall over time as the new airline reduced expenses.

Observers see the wholly owned subsidiary as a way for Air Canada to lower labor costs and win back market share it has lost in recent years to Calgary-based WestJet Airlines Ltd. Mr. Smith said a new business model is emerging in the airline market – as it has in retailing – where lower-cost, no-frills service becomes the norm. He said the full-service model for short flights is ‘going the way of the dinosaur.’ Zip is aimed at meeting that challenge in the low end of the market, he said.

Zip’s costs will be at least 20 per cent lower than those at Air Canada’s comparable mainline flights, in part because Zip’s employees will be making less money than their counterparts at Air Canada. Mr. Smith said wages will be competitive with Zip’s competitors in the low-cost market. ‘For the employees, they have to understand that they will be working for zip,’ he joked. Pamela Sachs, president of Air Canada component of the Canadian Union of Public Employees, said the union will mount a legal challenge to Air Canada’s attempts to pay so-called B-scale wages to Zip employees. ‘Air Canada gives zip by zapping its employees. They are hurting the very people who have worked so hard for them and for so long,’ she said.

Other cost-cutting measures at Zip include offering snacks instead of meals, providing no in-flight entertainment and operating only one kind of plane. There will also be less room between seats – 32 inches or 33 inches – although the seats will still have more leg room than the smallest seats at WestJet. The reduction, along with the elimination of business-class seats, will allow Zip to add 17 seats to the 100 seats in the Boeing 737-200. (WestJet has 120 seats in its Boeing 737-200s). The company will operate independently of Air Canada, although it will buy maintenance services from its parent, as well as using the larger company’s pilots.

Based upon your own work experience, or upon your studies of organizations, answer the following with respect to the case.

1. (a) Do you think the organization has realized the importance of human capital? Justify your answer

   (b) As an employee what are the sources through which you can add value to the organization. (CLO: 1)

Please give answers of the following questions:

1. What are the strengths and limitations of using estimates of total economic value to

develop environment policy recommendations? How does your answer relate to your

worldview (anthropocentric or ecocentric)?

2. Do you think contingent valuation should be widely used as a tool for developing environmental policy recommendations? What do you think is the main strength of CV?

What do you think is its main weakness?

3. Suppose that you are asked to conduct a cost-benefit study of a proposed coal-fired

power plant. The plant will be built on the outskirts of a residential area and will emit a

certain volume of pollutants. It will require a substantial amount of water for its cooling

system. Industries in the region argue that the additional power is urgently needed, but

local residents oppose construction. How would you evaluate social and environmental

costs and weigh them against economic benefits?

4. As mentioned in the text, under U.S. law federal agencies must use cost-benefit analysis to evaluate major policy proposals. Do you agree with this requirement, in particular for environmental policies? How much weight do you believe should be given to the results of cost-benefit analyses when making policy decisions? Discuss how economic, health, and environmental criteria should be balanced in formulating regulations.

5. Suppose that the government of a developing country is considering the establishment of a national park in a scenic forested area. Local opposition arises from those who wish to use the forest land for timbering and agriculture. But the national park would draw both local and foreign visitors as tourists. Could cost-benefit analysis aid the decision on whether to establish the park? What factors would you consider, and how would you measure their economic value?

6. In what respects is “natural capital” similar to human-made capital, and in what respects does it differ? We often speak of a “return to capital,” meaning the stream of income generated by a capital investment. Can we speak of a return to natural capital? What are examples of investment in natural capital? Who is motivated to make such investments? Who would suffer if such investments were not made, or if “disinvestment” occurs due to resource depletion or environmental degradation?

7. Is the concept of optimal scale for an economy useful? If so, how would you go about

determining it? Do you think that economies such as those in the United States, Europe,

and Japan have reached optimal scale? Exceeded it? How about the economies of Latin America, Asia, and Africa? How would you relate the concept of optimal scale in the global economy to economic growth in national economies at different levels of development?

8. Distinguish the concepts of strong and weak sustainability, and give some practical examples, other than those cited in the text, for their application. Where is each concept most appropriate? Which economic policy measures are relevant to achieving sustainability?

Submitting your assignment  

1. Please collate your assignment as a single document in a Microsoft Word format.

2. Save the assignment as your candidate ID number, e.g. CON-000123456.

3. All marking is anonymous, which means your name should not appear on your work.

4. You must state which region/jurisdiction you are from in the header of each page.

5. You must ensure that all your work is properly referenced.

6. Penalties will be applied to those candidates who submit their assignment after the due date.

Word count

7. The total word count for this assignment should be between 2,000 and 2,500 words. This includes all in text references and appendices but excludes any footnotes, reference page or contents page. N.B. Appendices should only be used in exceptional circumstances and should consist of only brief extracts or tables.

8. The number of words per question should reflect the number of marks allocated.

9. Penalties will be applied for excessive overall word count.

All parts of the question can be answered in relation to a jurisdiction with which you are familiar.

Where a specific jurisdiction has been selected, this should be clearly stated in your answer.

Answer all parts of the question.

Question

Olivia is a director and money laundering reporting officer (MLRO) of NRO Bank, a small local bank based in a jurisdiction of your choice. She is responsible for a number of areas of the Bank's operations, including the Human Resources division and New Business Acquisition, as well as bearing the AML responsibilities.

Olivia has a strong personality and is trusted by the Bank's board, who rely on her to get things done. She is rarely challenged by other members of the board or other staff members.

The Bank has recently been the subject of a regulatory visit and the report that followed has been highly critical of both the board and the MLRO. Key criticisms included the following failings.

• • A failure on the part of the MLRO to process internal suspicious activity reports (SARs)/suspicious transaction reports (STRs) and externalise them to the Financial Intelligence Unit (FIU) (26 in total, with some as old as 18 months).

• • The MLRO deliberately misled the board into believing that money laundering was not a significant issue within the Bank. She deliberately failed to notify the board that internal SARs had been made.

• • The board of the Bank failed to meet regularly and did not monitor the internal AML reporting system and processes.

• • The MLRO was an extremely powerful individual and deemed unapproachable by members of staff.

• • The Bank prioritised business development over compliance.

• • From a corporate governance perspective, it was inappropriate for Olivia to control so many other areas of the Bank's operations while also carrying out the MLRO role.

Q)What remedial action do you believe the Bank should take in order to remedy the issues highlighted?

The country/jurisdiction to be selected is DUBAI

Case 3 – The Approach of Negotiation

Background:

American Dream Holdings, Ltd. (ADHL), is the 100 percent owner of eighty-eight subsidiary corporations, some of which operate in virtually every state of the United States and many of which operate in a limited number of states. One of the subsidiary corporations, EFC Corp., is the general partner of two thousand limited partnerships with operations scattered around the world. EFC Corp. is the flagship and largest of ADHL’s subsidiary companies.

ADHL also has 20 to 50 percent ownership interests in other business operations. ADHL is owned by two individuals: one, Mr. Major, with 80 percent, and the other, Mr. Minor, with 20 percent. The individual owners operate additional businesses not under the ADHL umbrella. Such additional businesses are considered affiliates. ADHL provides legal, financial, and administrative services including payroll and human resource management to all of its subsidiaries as well as to many affiliates. ADHL collects a

monthly fee for such services. The fee is based on estimated needs for the services and is due regardless of the number of hours actually spent on a particular company’s matters. ADHL does not assess or collect supplemental fees for work done in excess of the estimate.

The group of eighty-eight subsidiaries and ADHL employ two thousand individual employees. All employees participate in the year-end bonus plan that is based upon group net profit attainment. The organizational structure including departmental organization is dictated by ADHL executives. The chief operating officer of ADHL, Ms. Iwon, was initially selected and hired by the 80 percent owner to be EFC Corp.’s senior vice president. EFC Corp.’s chief operating officer, Mr. Toolate, was selected and hired by the 20 percent owner approximately two months after Ms. Iwon was hired.

Approximately one year after Mr. Toolate was hired, Ms. Iwon orchestrated a reorganization that included her being promoted to the parent holding company position. EFC Corp. is perpetually three months behind in paying fees to ADHL. EFC Corp. is recalcitrant in distributing financial reports to ADHL.

Case Questions:

Question 1: Using a systems approach, identify the system or systems and their subsystems as well as the various relationships and interdependencies you see. You may utilize a drawing such as a sociogram if you like.

Question 2: Using a systems approach, identify the various conflicts in the case including describing how each is a conflict. Be sure to note how each conflict you identify meets the definition of a conflict.

Question 3: Continue your diagnosis and assessment by analyzing the function served by or the effect of each conflict in the case; assessing whether the system structure is competitive, avoidant, or collaborative; and determining your strategy and/or strategies.

Cereal Inc.

Overview

You’re a product manager for Cereal Inc., in charge of the “Super-Bran Flakes” brand and are considering a new advertising campaign for the cereal. Previous campaigns emphasized a link between the cereal and consumer health by showing in print and media ads healthy active people eating the cereal after running, biking, rock climbing, etc. You have maintained your market share, though are always on the lookout for a breakthrough advertising campaign that would increase sales.

Your assistant has been reading recent medical research on the link between vitamin B₁₂ and cancer which suggests that high B₁₂ consumption is associated with lower incidences of some forms of cancer. Super-Bran flakes is fairly high in vitamin B₁₂, which is added artificially in the manufacturing process. You know that advertisements linking your cereal to cancer reduction would have the potential to provide a significant increase in sales.

The Research

The research on the link between vitamin B₁₂ and cancer is in the very early stages. A couple of recent studies on rats have identified a statistical correlation between consumption of B₁₂ and a reduced risk of some cancers. But correlation doesn’t mean causation -- it isn’t clear yet to researchers that the B₁₂caused the cancer reduction in the lab animals. Or if it did produce cancer reduction how much B₁₂ the average human would have to consume, and in what form (e.g., an artificial additive vs. naturally occurring) to significantly lower cancer risk. And researchers do not know if negative health effects might result from too much B₁₂ consumption.

Dilemma

Your assistant is suggesting that you produce a new line of advertisements that links vitamin B₁₂ with cancer reduction, saying “research shows that vitamin B₁₂ is associated with a reduced risk of cancer,” with the tag line that “Super-Bran flakes is a great source of vitamin B₁₂!” He argues that the ad is not deceptive because it is technically true, plus if it turns out that B₁₂ does not reduce cancer it probably won’t hurt consumers to eat more of your cereal.

You wonder whether “technically true” is the same as “not deceptive.” You are further concerned about research that shows that when consumers feel they are doing something healthy in one part of their diet they sometimes cut back on healthy alternatives in other parts of their diet. This challenges the assumption that eating more of your cereal will do no harm, as does the uncertainty about whether the overconsumption of B₁₂ mightcause negative health effects.

1. Do you agree with your assistant’s recommendation? On what ethical basis(es) do you justify your answer (i.e., profit maximization, utilitarianism, universalism).

2. If you don’t agree with the recommendation, what decision would you recommend, and why?

Q- After reading the short description of the following situation, answer each of the questions below to the best of your ability.

Dr. Fitz has long been interested in the effects of alcohol on human behavior. His latest experiment involved giving college students one of three kinds of drinks: 3 ounces of vodka mixed with a standard size glass of orange juice, 2 ounces of vodka mixed with a small glass of orange juice, or 3 ounces of a nonalcoholic but vodka flavored drink mixed with a standard size glass of orange juice. Dr. Fitz recruited most of his subjects from this college's track team because he is an assistant coach. He recruited the rest of his subjects from his introductory psychology class. Dr. Fitz assigned the women on the track team to the "2 ounce vodka group", the men on the track team to the "3 ounce vodka group," and the women from his class to the "non-alcohol group." The women and men on the track team participated in the study right after they had finished practicing and the women from his class participated at various times during the day. After each subject had a chance to drink the beverage, he or she was asked to sit in an automobile simulator where the task involved stepping on the brake pedal as soon as possible after seeing a red light flash on a screen at the front of the simulator. Much to his surprise, subjects in the "2 ounce vodka group" showed slower reaction times to the red light than subjects in the "3 ounce vodka group." The nonalcoholic group showed the fastest reaction times. As soon as the study was over, Dr. Fitz told the subjects about the true purpose of the study and had each subject sign an informed consent form. From his analysis of the results, Dr. Fitz concluded that drinking alcohol can slow reaction time for braking in college students who drive after drinking.

1. Based on his experiment, is Dr. Fitz conclusion correct? From the options mentioned below, kindly bold your respective choice.

1. No, because he did not randomly select his subjects.
2. No, because he knew some of his subjects better than others.
3. Yes, because subjects in both experimental groups has slower reaction times than subjects in the control group.
4. Yes, because his results agree with what we all know from our experience with those who drink and drive.
5. No, because there were too many confounds in this experiment to draw a valid conclusion of his data, including a and b.

2. Give Dr. Fitz some advice on how he might improve his future search on the effects of alcohol.

Scientists use the scientific method to
A.   Define new theories.
B.   Make hypotheses.
C.   Set up experiments.
D.   Gain new scientific knowledge.
  
   

Science has existed since
A.   The beginning of human history.
B.   The time of Galileo.
C.   The time of the ancient Greeks.
D.   The time of Newton.
   

A scientific hypothesis is
A.   An educated guess.
B.   A well-established set of results that has been tested over and over by experiments.
C.   A random set of assumptions scientists make before starting an experiment.
D.     An educated guess that tentatively answers a question or solves a problem in the physical world which can be tested by experimentation.
   

What is the difference between a law and a theory?
A    A law is a natural phenomenon about which competent observers can agree; a theory is a general statement about the relationship of natural quantities that has been tested over and over again and has not been contradicted.
B    A law is the synthesis of a large body of information that encompasses well-tested hypotheses about certain aspects of the natural world; a theory is a general hypothesis that has been tested over and over again and has not been contradicted.
C    A law is a general hypothesis that has been tested over and over again and has not been contradicted; a theory is the synthesis of a large body of information that encompasses well-tested hypotheses about certain aspects of the natural world.
D    A law is the synthesis of a large body of information that encompasses well-tested hypotheses about certain aspects of the natural world; a theory is an educated guess which can be tested by experiment.

Science and technology are
A   The foundation of all modern economic success.
B   Share no common traits whatsoever.
C   The same thing.
D   Related to one another in that technology allows humans to apply the organized knowledge of science for practical purposes and provides the instruments scientists need to conduct their investigations.
  

Science and technology are
   
A.      The foundation of all modern economic success.
B.      Share no common traits whatsoever.
C.      The same thing.
D.      Related to one another in that technology allows humans to apply the organized knowledge of science for practical purposes and provides the instruments scientists need to conduct their investigations.
Science, art and religion do not contradict one another because
   
A.       Only science matters, not religion or art.
B.       All three have different domains, and seek to answer different questions about the world.
C.       Only art matters, not religion or science.
D.       If you focus on one of the three, you can disregard the other two.

In science, facts
   
A.       May change over time.
B.       Are irrelevant.
C.       Are absolute.
D.       Are the result of theories.

Pseudoscience can be described as
   
A.      A theory or practice that purports to use the methods of science but actually has no scientific foundation.
B.      The study of physics, chemistry, earth science, and astronomy, and their relationship to one another.
C.      Science on a small scale.
D.      The science of mythical creatures.      

Q1 The highly contagious novel coronavirus SARS-CoV-2 also called coronavirus disease of 2019 (COVID-19) is a global health emergency of unprecedented proportions. The ongoing loss of life globally as well as the virus’ ability to spread rapidly through communities, has generated a need for significant changes to the foundations of the well and least developed countries. In the last few months, political leaders globally have been making new announcements to respond to COVID-19 impacts, on both people and the economy. These have been crucial steps to ensure public safety and financial stabilization. As it stands now, nobody knows how long this crisis will last, but we do know that when it finally recedes our world will look very different. This crisis has not just created new disasters, it has exposed the flaws of our existing system. Several leaders have done well including few female leaders like Taiwan’s president, Tsai Ing-wen; New Zealand’s prime minister, Jacinda Ardern; the German chancellor, Angela Merkel; and Denmark’s prime minister Mette Frederiksen. In the case of Ghana, the Ghanaian government has so far followed a step-by-step model, including initiating travel restrictions outside the country, restrictions on events and on places of social gathering including churches, schools, restaurants, theatres and gyms and now currently just lifted a 21-day partial locked down in two of the most affected regions in Ghana. Inequality in Ghana meant that now, in this time of deep need, we risk sacrificing the health and safety of vulnerable people for whom the social safety net has been weakened. Several proposals, both economic and health related are suggested to assist the entire nation. Health care workers and security personnel have become heroes. Government has been asked to show leadership in transforming or restoring the economy to one that works toward well-being for all as it takes steps to gradually relax the restrictions. It is believed that the brighter side to the crisis is the momentum and opportunity to shift our systems to prioritize our care and wellbeing in the long run.

a. Explain how decisional and informational roles of leaders can influence the effective management of the COVID-19 crisis in Ghana.

b. In the management of the health crisis, how can technical, human, and conceptual skills be relevant for the Minister of health to enable him rally around health workers?

c. The internal and external environment will cause changes for companies in Ghana (Large, Medium, and small-Scale Enterprises) during this crisis. Explain

d. Discuss two (2) ways by which transformational leadership style can be relevant to the management of the crisis at all levels of management. e. Explain four (4) ways by which scientific management play a role in the management of a modern crisis such as the COVID-19.