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Cross Cultural Communication

Given the cultural diversity in United States, it is extremely important to understand the different aspects of communication in order to recognize and overcome the barriers of cross-cultural communication. Communication is the attempt that makes people able to tell about what they are feeling and what they mean; we can say communication is the exchange of meaning. Cross-cultural communication is a process, in which people receive or send the messages; people background may be change from each other’s. However, people talk to each other, no matter what background culture they have, mostly people in U.S and across the countries are using verbal and non-verbal signs to communicate.

Cross-cultural communication is important for the cross border movement of the people; people are more globally connected, communication include the behaviors of the human being, that are perceived and interpret, cross-cultural communication is therefore complex, as it is the dynamic process through which meanings are exchanged. In every communication there is a sender and a receiver, communication have a symbolic behaviors, in which there are share of ideas, information and feelings. Ideas or information cannot be properly communicated, if there is no externalized and symbolized, before communicating.

There are uses of different language across the U.S; the understanding of every language is difficult, communication across the culture boundaries is difficult for everyone, the people of dissimilar background often face difficulties while talking to each other’s. Most of the communications are based on the symbols or manifested through symbols, communication capabilities are depends on the understanding the cultures, if cultures are misunderstood then there could be various problem. Every culture has its own style of conveying messages to others, the stereotyping and wrong concepts about the people often create conflicts between people or societies.

Language is one of the most crucial elements of communication and can cause confusion between people from different countries. Languages are the methods of how people communicate among themselves and how they communicate across cultures, either spoken or written. In United States of America people speak approximately 381 languages, that means there are different cultural behind each group of people. Although, there could be cross-cultural miscommunication occur, when there is greater difference between the sender and the receiver. Communication not always results in necessarily understanding, there could be misinterpretation of one’s communication (Ryan).

Cross-cultural communication usually involved the misinterpretation, misevaluation or misperception, because people from different culture come together to perform the communication. When a sender is from another culture and a receiver is from another, there are very less chances of accurately transmitting of a message. Various societies are affected by the cross-cultural communication, as communication can vary culture to culture; there are many challenges, which one has to face in cross-cultural communication, miscommunication can lead to conflicts within the people or societies, cross-culture communication is more depends on the one idea, behaviors or attitudes.

The people from different background can easily miscommunication each other because they do not have the same backgrounds and their thinking and view to see the societies are different. People from various backgrounds are conservative, however, some are from liberal thinking background, and there could be misunderstandings, if knowledge is not accurately shared (TANNE).

Another aspect of communication that affects our understanding is the use of non-variable signs and symbols. Non-verbal communication is highly important in any interaction, or communication with others, when verbal messages are not cleared or understandable by each other then non-verbal communication takes place. In cross-cultural communication, the behaviors are arsis from, common sense that what is appropriate and what is not. There are different symbols that promote the non-verbal communication, between the people from various backgrounds, the symbols or different systems includes the postures, gestures, touch, special relations, eye contact, silence, emotional expressions, physical appearances etc. There are also other non-verbal clues that participate in understanding of each other communication.

Facial expressions are most common source that are used in non-verbal communication, in all cultures, existing in U.S, facial expressions can participate to tell the receiver that a person is happy, angry, sad in fear. Facial expressions are hard to understand sometimes, that what is person trying to convey, cross-cultural communication involve a lot of facial expressions because the people who are not literate or are from other countries, in U.S, do not able to talk in English, they use facial expressions the most (Asante, Miike and Yin).

In many cultures, eye contact is also a valuable source of communicating with each other, however, little eye contact, may be seen as negatively, because the receiver may assume that there is lack of interest from the side of sender. If there is no eye contact then there could be feeling of mistrust or inattention, in U.S handshake and eye contact is considered as a basic source of non-verbal communication. However, in some parts of the world like Asia, Latin America and Africa avoid the eye contact.

Body gesture is also another technique that is uses in non-verbal communication, people generally use this method of doing conversations while cross-cultural communication, there are visual signals to greet people, often of the researchers said that handshake is process, from which friendship and business relationship get strengthen. In some culture, people wave their hand to good-byes.

Americans moderately express the feeling by body language and they freely gesture as compared to the Asians or Arab cultures, American use or touch hands and arms while communicating, however, in other cultures body touching is not a good thing, touching might create discomfort for them. The signs of non-verbal communication are different in cross-cultural communication; cultures have different signs to communicate with each other. Like in some countries or cultures, nodding their heads means “yes”, and in other cultures nodding their heads means “no”.

In cross-cultural communications, communications are often non-verbal. Cross-cultural communications are verbal also, the people who understand English, mostly communicate in English, especially in U.S, moreover, people from other backgrounds, often know to read and write English but they are unable to communicate with each other’s in English. For them non-verbal signs or symbols are best processes or techniques to tell their feelings, or express their emotions. Non-verbal communication is specific to one culture or backgrounds, and can be misunderstood in other cultures (Norales).

Every culture has the different perspective about the conversations or negotiations, like the people of North America prefers the large amount of space, Europeans are more close to each other’s while they are communicating or talking, they want smaller personal space.

In cross-cultural communication, humor, laughter or smiling is also seen from different ways, in U.S; Americans are fun loving and are confident so they put stress on humor, they love to do fun to themselves and to others. However, in some culture fun or humor may see as an aggression or dominance. Humor can be consuming in many cultures, like in Asian culture there is “masking smile”, they use the polite way to smile or laugh, for them laughter may be a sign of embarrassment rather than a sign of humor (Carteret).

Often people have certain preconception and stereotypes about those of different cultures and this can influence the comprehension in communication. The stereotyping has categorized the people of different cultures; the stereotyping has the direct influence on the communications factors or in cross-culture communication. The stereotyping regarding communication we have in our mind is related to stranger’s culture, ethnic group or race etc. If one stereotyping about the other person is inaccurate then there will be inaccurate cultural-level predictions about the stranger, wrong or inaccurate stereotyping can result in wrong attributions about the strangers or their behaviors.

Stereotyping may lead to the ineffective communication, we are confirmed or we are expecting confirm unconscious answer from the person while we are communicating, there could inaccuracy in making predictions that can lead the people to face conflicts. Stereotypes are the natural products in the communication process; there is the degree of association and psychological attributes that we communicate on an automatic pilot (Kim).

If we are in aggression or anger, still we talk politely to the people from other cultures, as we know they can misinterpret us, and there could be problems, we know modern nation, is a complex society and difficult to understand, so we can’t be loud in talking to strangers. In stereotyping of others cultures, we know about the business etiquette that what should be done and what should not be done. It also involves the introductions, greetings and conversations, like the people of Saudi Arab, while they are attending business meetings do not talk about their wives or families. However, in U.S business get strong when families are concerned, every country and culture have its own stereotyping which need to be understood (Gudykunst).

In businesses relationship, communication plays an important role, mostly conflicts and disagreements take place within the parties or group of people, due to misunderstanding of languages or symbols. Every country have its own behavior or style to do business, the stereotyping in business environments could be explained as, that Americans are Germans directly and openly discuss or talk about issues however; Chinese and Asian are rigid in this way, because for them it is difficult to say no. There could be barriers in the cross-cultural communication regarding to the cultures (IRIMIAŞ).

Another thing that causes a lack of understanding in cross-cultural communication is the tendency to evaluate what someone is saying before others have accurately conveyed their thoughts. There could be conflicts or misunderstandings when a person assume or misinterpret cross-cultural communication. The tendency to evaluate other quickly can also become obstacle in communication, when people from different cultures immediately evaluates each other’s behaviors, regarding to own thoughts or cultures, the right or proper assumption sometimes prove wrong and people can face various problems. There is need to listen people, from various background properly, and then answers should be give, there should be no self-assessments, it may ruin the relationships so one should not be judgmental (Miladinovic).

Conclusion:

Cross-cultural communication, the communication among the people across the countries; people vary from different cultures. Every culture has its own ways to talk and use gestures, the symbolic expressions vary from culture to culture, in U.S there are people from all over the world and from different cultures, people in U.S mostly use non-verbal languages to communicate with each other’s, there are need to understand the people and their languages to get safe form conflicts. Conflicts either take place between the people due to misunderstandings or due to misinterpretation of the behaviors or cultures.

Developing a cross-cultural mindset is important, there is need to demonstrate awareness and sensitivity, the non-verbal communication has unspoken codes, which are according to the cultures. The sense of smelling, touching, hearing and seeing is different in every culture, there are needs to understand the senses and there is need to observe the symbols, regarding cultures, like body movements, gestures postures etc.

Based on the stereotyping and self-evaluations about the other cultures can create differences and conflicts within the people, there is need to avoid the inaccurate stereotyping, there is need to control the anxiety, there is need to promote the effective way of communication with the strangers. A successful intercultural understanding, must be there, so there could be reorganization of the cultures; cultures cannot be same, every country and people have their own culture there is need to recognize and understand the cultures, and there should be acceptance of all cultures and their ways of communication.

Works Cited

Asante, Molefi Kete, Yoshitaka Miike and Jing Yin. The Global Intercultural Communication Reader. Routledge, 2013.

Carteret, Marcia. Non-verbal Behavior in Cross-Cultural Interactions. Nov 2010. 5 May 2016 <http://www.dimensionsofculture.com/2010/11/non-verbal-behavior-in-cross-cultural-interactions/>.

Gudykunst, William B. Cross-Cultural and Intercultural Communication. SAGE Publications, 2003.

IRIMIAŞ, Eugenia. “Behavioural Stereotypes in Intercultural Communication.” Acta Universitatis Sapientiae, Philologica 3.2 (2011): 167-174.

Kim, Young Yun. Becoming Intercultural: An Integrative Theory of Communication and Cross-Cultural Adaptation. SAGE Publications, 2000.

Miladinovic, Milena. Overcoming Obstacles in Intercultural Communication. 27 June 2014. 10 May 2016 <http://www.afs.org/blog/icl/?p=4881>.

Norales, Francisca O. Cross-Cultural Communication: Concepts, Cases and Challenges. Cambria Press, 2006.

Ryan, Camille. “Language Use in the United States: 2011.” American Community Survey Reports (2013): 1-16.

TANNE, DEBORA. “The Pragmatics of Cross-Cultural Communication.” Georgetown University, Washington (1984): 1-7.

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American Society

Question and Answers

Research C. Wright Mills—The Power Elite. According to his paradigm: Who are they? How do they live?—What characteristics and traits do they possess? How do they get into these positions of power and maintain them from one generation to the next? What is your opinion—do you feel there is a concentrated group—in American and the world that are Power Elite?

The power elite in the United States is present.  It is the single power elite. The scores version of ideas exists. They portray the government and politics as the pluralist. The elite power in viewing the pyramid way power of power structure. 

The power structure is pyramid type. The policies of the elite power are exemplifying.  The power elite theory is a single elite theory. These are the issues of the nation as a whole. Leading as the from the single power style.  The countries pride on their democracy. The leaders come and go in the democracy.

The characteristic of the power elite are the individual close-knit group, and they are not part of the conspiracy that manipulates events in their selfish interests. The elite power includes the respective civil liberties, follow establish constitutional principles and having the character of operating openly and peacefully. It is not like a dictatorship, and it does not rely on the terror and midnight interest to get it way.

 The Top command posts are the characteristics of the posts of society and are the power in the government. However, not just are governmental also financial education, social, civic and institution.  The power of the elite is grown by the collaboration of political, industrial and military organizations.  The next characteristic is shared attitudes and beliefs. According to Mills the difference over shadowed by agreement on a worldview. The worldview is the values, beliefs, and attitudes that shape the elites perception. The elite power is the power of the high-level power in the government.

In the situation of the 1970s when the politics of US a negative reputation.  The traditional distrust of the Politicians was the outsider, and they were not the part of the establishment. And to bring new ideas and new faces to Washington. The offices in the 1990s were made the complaint.  The distribution of the political power is the scenario.

The power is utilized in the political arena. The three portions of the pyramid are elite, middle level and the masses.  The elite is the power of the higher level are and will be using the situation of the political people who are at the upper level. The elite power is the power ruling the country and will be the scenario developed. The US has the government on the elite power in the organization (Socialstudieshelp.com, 2015).  

2. Research the Stratification in the American Society—How many classes are in the American Society and what are the characteristics and traits that identify each class? How have the demographics of class membership changed over time? How do you feel the United States should handle those individuals who are in the lower socio economic classes relative to social policies that could possibly help a significant number of people up the economic ladder?    

The social scientist in the US believes that the American society is stratified into the social classes.  The classes of eth individuals are o9n the basis of the wealth, educational attainment, occupation, income or membership in the subculture. The American recognizes the three-group upper class, middle class, and lower class.

Some scholars deny the existence of the classes. There are three classes of the American society and which are upper class, lower class, and middle class. They have different incomes of the classes. The upper-upper class is 3% of the population, and its earning is 1% of hundreds of millions to billions per year.

 The lower upper class is 2% earning million per year. The middle class is 40% and which will be divided into the upper middle class is 14% earning $76,000 or more per year. The lower middle class is 26%, which is earning $46,000 to $75,000 per year. The working classes are that earns $19,000 to $ 45,000 per year.  The lower class is 27% divided among the working poor, which is 13 % who are earning the $ 9,000 to 18,000 per year. In addition, the underclass is 14%, which is earning under $9,000.

The characteristics of the upper class are they have vast accumulated wealth and significant control over the corporations and political institutions. The corporate elite consist of high salaried stockholders and have the privilege but high achieved status. The upper middle class consists of high-educated salaried professionals. The occupation they held is like lawyers, engineers, and professors.

They are at mid-level managerial positions. The working class is the low-level class services. They have jobs like sales clerk, or housekeeper and income level is poverty line. The division in the occupation and education achievements is the upper, middle and lower class.

 The facilitation provided should be to give allowance or facilities to the lower classes and let the situation to be clear and will be having the situation of the work to be in the narrative. The classes’ demarcation should be of providing them with equal facilities in the scenario and will be having the classes’ difference to be removed by the benefits given.

The classes are of different types. The classes are divided into the upper class, middle class, and the lower class. The classes should be provided with the benefits according to the tax levies taken by the each group, and the scenario should be dealt in the form of group valuing. The groups are made in the form of such demarcation (Boundless.com, 2015).  

Reference

Boundless.com. (2015). American society is stratified into social classes based on wealth, income, educational attainment, occupation, and social networks. Retrieved May 10, 2016, from https://www.boundless.com/sociology/textbooks/boundless-sociology-textbook/stratification-inequality-and-social-class-in-the-u-s-9/the-class-structure-in-the-u-s-75/class-structure-in-the-u-s-442-10206/

Socialstudieshelp.com. (2015). THE POWER ELITE. Retrieved May 10, 2016, from http://www.socialstudieshelp.com/apgov_power_elite.htm

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International Political Economy

International Political Economy

1. Discuss the important international marketing concepts covered in the video

There are many concepts that have been discussed in the video. However, before that, the introduction to Tom Friedman has been given that he is the columnist for the New York Times. He gave important concept about the Globalizations, and they are divided into three layers we can say namely Globalization 1.0, Globalization 2.0 and Globalization 3.0 respectively. After that Friedman’s definition of the Flatness have been explained in the detail. The top flatteners have been discussed that were important. The viral marketing is discussed which is the distribution of free software. Open source software concept is discussed as writing set of principles for the software which source is available to others.

 Outsourcing is discussed as sub contract for the design or the manufacturing to the third party. Off shoring is discussed as the relocation of business from one to other country like Assembly of Apple products in China. The concept of the complex supply chain is discussed as system involved in moving products from supplier to customer. In sourcing is said that the penetration of large firms by other firms to support them. In forming is discussed as the rise of the search engines such as Yahoo and Google.

2. What lessons did you as an international marketer learn from this video clip?

I have learned many good concepts about the marketing or international marketing from the video. First Tom Friedman has been introduced that he is the famous columnist for the New York Times. Three-globalization concept that is existence in this world has been introduced that the world is segregated in these three. The world of flatness have been known, and ten best Flatteners have been discussed that the major points. Viral marketing is the great concept that where free software’s are available on a platform. Open source software is a great concept to learn as it also plays an important role.

The outsourcing is the great and very helpful concept as the businesses get their work done by the third parties who have enough resources. Off Shoring is the good concept that we can see implementing practically. Different call centers are the big examples of that. In sourcing also allows the businesses to help them in the form of support of logistics. In the complex supply chain, a whole system of people or organization is involved so that product or service could be moved from the supplier to the customers and finally I have learned that the rise in the search engines as if Google and Yahoo have been categorized by Informing.

Source

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Makeup

Q1

Locational Arbitrage can occur in the form of buying from the bank of Orleans and selling to the bank of Kansas. In this arbitrage it can be seen that the profit is $.01 per pound.

Q2

Duration gap is the difference between the assets and liabilities that are being held and an institution of a financial nature.

Q3

Maturity Matching is a principal that denotes that the current assets are to be matched with the current liabilities and long term assets are to be matched with long term liabilities. It helps in reducing interest rate as the matched assets and liabilities have similar durations so this lowers the interest rate.

Q4

The changes in risk premium does effect the commercial banks required rate of return in numerous ways as the risk premium increases the required rate increases and with the fall of required rate of return. So the relationship between these two variables is direct.

Q5

The ratio of the bank that puts assets in the numerator and capital in the denominator, the higher the ratio the lower the equity and the higher the funds borrowed.

Q6

a

b

c

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Economics

1.

a.

Company is primarily an athletic apparel and shoe manufacturer. Company will be producing athletic shoes and equipment mainly targeting youth and sports men. However, it products range will also include items which could be used by people of any age. Therefore, it can be stated that though, company is primarily producing products for young generation but it will also have segments targeting people from all sizes, and ages.

b.

Sales  $          100,000  $          150,000  $          200,000  $          2,500,000  $          300,000  $          350,000  $          400,000  $          450,000  $          500,000  $          550,000
Profits  $             10,000  $             15,750  $             22,000  $              300,000  $             37,500  $             45,500  $             54,000  $             63,000  $             72,500  $             82,500
Valuation $ 1000000

This graph shows that the sales of the apparel business is expected to increase by $50, 000 every year, and shows the related profits as well.

2.

a.

P= It is the price of good which company is selling

M=M represents the income of the consumers, which can change with time. SO it can change and is a variable is the equation

PR= This is the price of the related goods, which can change and can attract the consumers to switch products or substitute them for Sultan’s Athletic products

This shows the taste patterns of the consumers in the market

Pe= This is the expected price of the product in some future period

Expected price of the product in some future period

N= There no special number all consumers buy shoes even if they are not        exercising

b.

The variables which could affect the supply  side of the equation are given below:

P= It is the price of good which company is selling

PI= This is the price of raw material or inputs used in the manufacturing of shoes, clothes and other equipment.

Pr= It is the prices of related goods in the market which competitors are trying to sell.

T= It defines the available technology in the market used by the manufacturer

Pe= It is the producers price expectations based on the inflation projected by the central bank.

F= It represents the number of similar fi9rms which are operating in the industry.

3.

a.

TB 180A – A2
MB 180-2.5A
TC 200-15A+3A2
MC 20+5A
A TB TC MB MC
1 179 188 177.5 25
2 356 182 175 30
3 531 182 172.5 35
4 704 188 170 40
5 875 200 167.5 45
6 1044 218 165 50
7 1211 242 162.5 55
8 1376 272 160 60
9 1539 308 157.5 65
10 1700 350 155 70
11 1859 398 152.5 75
12 2016 452 150 80
13 2171 512 147.5 85
14 2324 578 145 90
15 2475 650 142.5 95
16 2624 728 140 100
17 2771 812 137.5 105
18 2916 902 135 110
19 3059 998 132.5 115
20 3200 1100 130 120
21 3339 1208 127.5 125
22 3476 1322 125 130
23 3611 1442 122.5 135
24 3744 1568 120 140
25 3875 1700 117.5 145
26 4004 1838 115 150
27 4131 1982 112.5 155
28 4256 2132 110 160
29 4379 2288 107.5 165
30 4500 2450 105 170
31 4619 2618 102.5 175
32 4736 2792 100 180
33 4851 2972 97.5 185
34 4964 3158 95 190
35 5075 3350 92.5 195
36 5184 3548 90 200
37 5291 3752 87.5 205
38 5396 3962 85 210
39 5499 4178 82.5 215
40 5600 4400 80 220
41 5699 4628 77.5 225
42 5796 4862 75 230
43 5891 5102 72.5 235
44 5984 5348 70 240
45 6075 5600 67.5 245
46 6164 5858 65 250
47 6251 6122 62.5 255
48 6336 6392 60 260
49 6419 6668 57.5 265
50 6500 6950 55 270

The table shows that the total benefit is incresaing with the total cost as wll whereas the total cost is greater then the total benefit. The marginal benefit is declining with the increase in the value of A, and the marginal cost is increasing.

The graph shows the curve of the total benefit and total cost. The total cost is greater than the total benefit at the highest value of A.

b.

This graph shows the declining trend of the marginal benefit and the increasing trend of the marginal cost.

According to this chart, look at the point of intersection between MB and MC. They intersect at Unit 21. It means that company should manufacture 21 units.

c.

i. MB at half A is 125

ii. MC at half A is 132

iii. But, if we continue producing more, company can produce 41 units where MB=MC. This is the optimal point.

d.

i. MC is 20.5

ii. MB  is 20.5

iii. If company will go beyond this point, it will only incur loss. Therefore, optimal point is that company only makes 10 units.

e

These estimations may not be practical for the company. Since, Company is expected to make thousands of dollars. How is it possible that it only makes only 21, 41 or 10 units in different scenarios? Therefore,   the model may not be a realistic presentation of the real scenario, where sports manufacturers make healthy sales and units.

4.

a.In this business of sport apparel and shoes, like any other business, many variables affect the demand and supply of the company’s products. Here, what’s important is to determine that how each factor will have an impact on the dependent factor in the model.  SO, all these factors must be factored out which could realistically have a profound impact on demand of the company’s products.

b. Dependent variable in this project is the demand for the products of Sultan’s Athletics Store. Independent variables are all the variables which could have effect on the demand of the product. These are on the right side of the equation stated above.

Qd  abPcMdPR  efPe    gN

Qs   hkPlPI   mPr   nTrPe  sF

c. Regression Analysis

Here, regression is run by keeping the other variables constant and effect of price on demand is determined here. Result is depicted in following table:

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.654562
R Square 0.428452
Adjusted R Square 0.411642
Standard Error 135.5019
Observations 36
ANOVA
  df SS MS F Significance F
Regression 1 467971 467971 25.48757 1.49E-05
Residual 34 624265.6 18360.75
Total 35 1092237      
  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 760.109 84.488 8.99665 1.63E-10 588.4087 931.8093 588.4087 931.8093
Price -53.0049 10.49909 -5.04852 1.49E-05 -74.3416 -31.6682 -74.3416 -31.6682

d. Interpretation:

Two important pieces of information here given here are:

Intercept:  Value of intercept is 760.109, it depicts that whether there is high price or lower price, this demand of 760 will be there. So, it is autonomous demand for the product of Sultan.

Slope: Slope of -53 indicates the negative relationship between the demand and price of Sultan Apparel.It means that if the price increase by 1 unit, demand will decline by 53.

Similarly, if the values for other independent variables are available, regression can apply for those as well to see the impact on demand of the products.

e.

If the price is changed, it can produce different results. This is shown in the following regression models:

If Price increases by 1, we get

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.991226
R Square 0.982529
Adjusted R Square 0.982015
Standard Error 23.69054
Observations 36
ANOVA
  df SS MS F Significance F
Regression 1 1073154 1073154 1912.108 1.8E-31
Residual 34 19082.22 561.2416
Total 35 1092237      
  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -107.965 11.17322 -9.66284 2.79E-11 -130.672 -85.2583 -130.672 -85.2583
P+1 16.62018 0.380084 43.72765 1.8E-31 15.84775 17.3926 15.84775 17.3926

However, if price decreases with increasing demand,

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.991226
R Square 0.982529
Adjusted R Square 0.982015
Standard Error 23.69054
Observations 36
ANOVA
  df SS MS F Significance F
Regression 1 1073154 1073154 1912.108 1.8E-31
Residual 34 19082.22 561.2416
Total 35 1092237      
  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 806.1446 11.17322 72.14974 8.74E-39 783.4379 828.8513 783.4379 828.8513
P -16.6202 0.380084 -43.7277 1.8E-31 -17.3926 -15.8478 -17.3926 -15.8478

5.

a b
Qty Marginal Utility Total Utility
1 40 40
2 35 75
3 30 105
4 25 130
5 20 150
6 15 165
7 10 175
8 5 180
9 0 180
10 -5 175

c.

Diminishing Marginal Utility is observed in case of Diminishing normal goods. If the goods are of special nature like wealth or knowledge it states that the good observed is of that specific nature

d.

Our Product Other Product
Price  $                          8  $                     16
Qty Marginal Utility of Product MU per Dollar Marginal Utility of other product MU per Dollar Other Product
1 40  $                 5.00 30  $                   1.88
2 35  $                 4.38 27  $                   1.69
3 30  $                 3.75 24  $                   1.50
4 25  $                 3.13 21  $                   1.31
5 20  $                 2.50 18  $                   1.13
6 15  $                 1.88 15  $                   0.94
7 10  $                 1.25 12  $                   0.75
8 5  $                 0.63 9  $                   0.56
9 0  $                      –   6  $                   0.38
10 -5  $               (0.63) 3  $                   0.19

The graph shows that the marginal utility of other products is lower at first but is greater with the increase in the units, whereas it is vice versa for our product.

e

Based on the results the consumer would consume first 8 units of our product and then use 3 units of Other product in order to maximize its revenue

6

a.

Quantity Price Total Revenue Marginal Revenue Elasticity
Q P TR MR E
1 50 50
2 49 98 48 -50.00
3 48 144 46 -24.50
4 47 188 44 -16.00
5 46 230 42 -11.75
6 45 270 40 -9.20
7 44 308 38 -7.50
8 43 344 36 -6.29
9 42 378 34 -5.38
10 41 410 32 -4.67
11 40 440 30 -4.10
12 39 468 28 -3.64
13 38 494 26 -3.25
14 37 518 24 -2.92
15 36 540 22 -2.64
16 35 560 20 -2.40
17 34 578 18 -2.19
18 33 594 16 -2.00
19 32 608 14 -1.83
20 31 620 12 -1.68
21 30 630 10 -1.55
22 29 638 8 -1.43
23 28 644 6 -1.32
24 27 648 4 -1.22
25 26 650 2 -1.13
26 25 650 0 -1.04
27 24 648 -2 -0.96
28 23 644 -4 -0.89
29 22 638 -6 -0.82
30 21 630 -8 -0.76
31 20 620 -10 -0.70
32 19 608 -12 -0.65
33 18 594 -14 -0.59
34 17 578 -16 -0.55
35 16 560 -18 -0.50
36 15 540 -20 -0.46
37 14 518 -22 -0.42
38 13 494 -24 -0.38
39 12 468 -26 -0.34
40 11 440 -28 -0.31
41 10 410 -30 -0.28
42 9 378 -32 -0.24
43 8 344 -34 -0.21
44 7 308 -36 -0.19
45 6 270 -38 -0.16
46 5 230 -40 -0.13
47 4 188 -42 -0.11
48 3 144 -44 -0.09
49 2 98 -46 -0.06
50 1 50 -48 -0.04

b.

The total revenue shows the elasticity behavior which is negative both for the lower quantity and high price, and higher quantity and lower price, and is highest at the 32 units and price of $19.

7

Months Sales Actual Sales Forecasted Difference
Jan-16  $            995,054  $            1,016,052  $   (20,999)
Feb-16  $        1,031,659  $            1,015,506  $     16,153
Mar-16  $            985,678  $            1,014,959  $   (29,281)
Apr-16  $        1,008,962  $            1,014,413  $     (5,451)
May-16  $        1,010,442  $            1,013,866  $     (3,424)
Jun-16  $        1,033,856  $            1,013,319  $     20,536
Jul-16  $        1,038,767  $            1,012,773  $     25,994
Aug-16  $        1,025,377  $            1,012,226  $     13,151
Sep-16  $        1,013,167  $            1,011,680  $       1,488
Oct-16  $            987,796  $            1,011,133  $   (23,337)
Nov-16  $            1,010,586
Dec-16  $            1,010,040
Jan-17  $            1,009,493
Feb-17  $            1,008,947
Mar-17  $            1,008,400
Apr-17  $            1,007,853
May-17  $            1,007,307
Jun-17  $            1,006,760
Jul-17  $            1,006,214
Aug-17  $            1,005,667
Sep-17  $            1,005,121

a.

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.170805
R Square 0.029174
Adjusted R Square -0.02192
Standard Error 20072.66
Observations 21
ANOVA
  df SS MS F Significance F
Regression 1 2.3E+08 2.3E+08 0.570969 0.45914
Residual 19 7.66E+09 4.03E+08
Total 20 7.89E+09      
  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 1016599 9083.006 111.9232 2.95E-28 997588.1 1035610 997588.1 1035610
Time -546.596 723.3686 -0.75563 0.45914 -2060.62 967.4324 -2060.62 967.4324

b.

i.

ii

Since this is a forecasted data based on alpha and beta obtained from forecasting data with time it can be observed that the results are linear and the sales in September is forecasted to be $ 1,005,121

8

Q L FC TC TVC MP MC TP AP AVC
0 0 50 50 0 0 0 0 0.00 0
10 0.6 50 56 6 16.67 0.60 16.67 27.78 5.60
20 1 50 66 10 25.00 0.40 41.67 41.67 3.30
30 1.3 50 79 13 33.33 0.30 75.00 57.69 2.63
40 1.7 50 96 17 25.00 0.40 100.00 58.82 2.40
50 2.3 50 119 23 16.67 0.60 116.67 50.72 2.38
60 3.2 50 151 32 11.11 0.90 127.78 39.93 2.52
70 4.4 50 195 44 8.33 1.20 136.11 30.93 2.79
80 6.2 50 257 62 5.56 1.80 141.67 22.85 3.21

a.

This graph shows that the marginal profit has a curving trend, first increasing and then decreasing constantly, whereas the marginal cost is relatively constant and is well below the marginal profit.

b.

This graph shows that the major part of the average cost is not based on the average variable cost and is held fixed in nature.

c. This graph shows the relation between the marginal and average profit, which n this case has the same trend of increasing and then decreasing, however the marginal profit is greater in value than the average profit.

d.

This graph shows the relation between the marginal cost and average variable cost, depicting the high average variable cost as compared to the marginal cost, and that the MC has a declining trend whereas the AVC has an increasing trend.

9

Output L K TLC TKC TC LAC LMC
10 1 0.7 0.5 7 3.5 0.35
20 1.2 0.8 0.6 16 9.6 0.48 0.61
30 2 1 1 30 30 1 2.04
40 3 1.5 1.5 60 90 2.25 6
50 4 2.2 2 110 220 4.4 13
60 5.2 3 2.6 180 468 7.8 24.8
70 6 4.2 3 294 882 12.6 41.4

a

b

10.

Q L Forecasted Q Difference
25 5 48.64 23.64
299 7 68.30 230.70
427 8 78.13 348.87
417 11 107.61 309.39
438 12 117.44 320.56
946 13 127.27 818.73
197 6 58.47 138.53
43 6 58.47 15.47
524 14 137.09 386.91
668 12 117.44 550.56
341 15 146.92 194.08
722 13 127.27 594.73
511 7 68.30 442.70
278 9 87.95 190.05
302 7 68.30 233.70
34 5 48.64 14.64
475 12 117.44 357.56
37 5 48.64 11.64
289 8 78.13 210.87
305 8 78.13 226.87
447 11 107.61 339.39
806 7 68.30 737.70

a                                                                     

There is a huge difference between the real and estimated Q                                               

b                                                                     

No the signs are inverse to the perceived values                                           

c                                                                     

Beta here is significant but alpha is not significant                                       

d                                                                     

At 14 units of labor it reaches its maximum potential                                               

e                                                                     

The Average Variable cost is  62.98              

f                                                                      

The Short-run Marginal cost is 215.02                       

g                                                                     

Law of Diminishing Returns set in after 14.25         

Level of Output 526 units

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Case Study The Springfield Nor’easters: Maximizing Revenues in the Minor Leagues

Case Study The Springfield Nor’easters: Maximizing Revenues in the Minor Leagues

  1. Analyze the marketing environment Nor’easters faces in Springfield. Which aspects of the marketing environment make you feel that Nor’easters can succeed in Springfield?

The very first one is the increase in the marketing expenses in selling of the tickets. The establishment of new theaters and the sport industry is new to him. The prices of the tickers are feasible for the organization however; it is not possible to increase the revenue. The reason is that income of the people in Springfield is not increasing from the last few decades. Due to the economic recession, overall business of Nor’easter effects along with marketing strategies. They are not able to play even a single game. The focus of the administration is on the increasing the sale of the tickets for the games. For this purpose, they have to pay attention to attract the customers and the audience. Effective advertisement helps the business to attract potential and existing customers. Therefore, the promotional activities are necessary. In case of the Nor’easters, there is lack of the promotional activities in order to attract the customers. Due to this reason, the organization also has to face the reduction in the revenues. The performance in games is also acceptable.

The city of Springfield was diverse and vibrant in the manufacturing. By the year 2008, the city lost many higher-wage-earning residents. This leads the city to drop in the wages and the incomes of the people. Due to this reduction and drop, the overall economy and incomes of the people affects. The lack of the spending of people makes them hard to buy the tickets to go for the entertainment. At this stage, organization had to review its pricing strategies especially in context of the change in market. For the new comers and the working class city, the high prices or the expensive entertainment is useless. They prefer to save money for bad time. Therefore, Nor’easters has to face decline in supporters, audience and also in the funds rising from the games. In addition, the neighboring country is also the home to world-class teams such as hockey, football and baseball. These attract the people from surrounding areas.

  • What do you consider the key findings of the survey research? Why?

The professional sporting events help to support students in the colleges due to the high tickets. However, the lack of the transportation and the high tickets effects negatively for the students to become the sport man or take part in various events. There is need for the organization to redesign its ticket offers to attract existing and potential people and students from the educational institutes to take part as the team players and as audience. On the other hand, the requirement of the Buckingham was to utilize the data of the survey that was three year old. The difference between them is the base for the change. The results are important to analyze before making any final decision. The decision making process is not an easy task for the management. The marketing conditions and the change in the market are also necessary to consider. The change is also necessary in the structure and the environment of the organization in order to get desire results.

The offerings to the teams will accord the local market. The proper facilities to the professional teams are necessary. This is the way to attract the audience and customers to buy the high cost tickets for the games and the events. In addition, this will also help to develop attraction among college students to enter in sports and games. This will be more effective for Nor’easters in Springfield. In addition, the objectives of the research must be clear and actionable. The realistic objectives help the organization to market its project and achieve the goals. The marketing is very important for the success of the project. The marketing research includes the analysis of the customers behaviors, new trends in market, pricing of the tickets, improve transportation means, SWOT of the internal and external environment of the city as well as organization.

  • Based on the results of the survey research, what ticket price (per ticket) you would set for the single ticket, the 5-ticket package, the half-season ticket package, and the season ticket package?

Team president and the General Manager realize that the research survey was difficult. There is need to develop the team and tries to solve the issues of the operations, government relations and the finance. The most important one is to resolve the financial issues for the teams. On the other hand, fixed price of the tickets are not feasible for the organization. There is need to introduce the new packages including the discount packages for the tickets. The seasonal tickets, discount offers to the institutes and the families, the entertainment, discounts to the frequent customers helps to gain the desire results. Clarity of the questions, management decisions and ease of the data analysis is important for the organization and the management to run the operations of the team. However, the idea was not feasible according to the management. The reason is the time that will consume on the project and the research survey.

The good idea is to offer discount on the 5 ticket package for the families or friends. Half season package for the different communities and also single ticket on some especial events. This is important for the management to offer discount and various ticket packages for the audience and the customers. Hence, the special exercises are important. In the event of the Nor’easters, there is absence of the special exercises keeping in mind the end goal to pull in the clients. Because of this reason, the association additionally needs to confront the lessening in the incomes. The contrast between them is the base for the change. The outcomes are imperative to break down before settling on any official choice. The basic leadership procedure is not a simple undertaking for the administration. In addition, there is also important to review the salaries of the players and teams to make them motivate for good performance.

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Case Study The Springfield Nor’easters: Maximizing Revenues in the Minor Leagues

Case Study The Springfield Nor’easters: Maximizing Revenues in the Minor Leagues

  1. Analyze the marketing environment Nor’easters faces in Springfield. Which aspects of the marketing environment make you feel that Nor’easters can succeed in Springfield?

The very first one is the increase in the marketing expenses in selling of the tickets. The establishment of new theaters and the sport industry is new to him. The prices of the tickers are feasible for the organization however; it is not possible to increase the revenue. The reason is that income of the people in Springfield is not increasing from the last few decades. Due to the economic recession, overall business of Nor’easter effects along with marketing strategies. They are not able to play even a single game. The focus of the administration is on the increasing the sale of the tickets for the games. For this purpose, they have to pay attention to attract the customers and the audience. Effective advertisement helps the business to attract potential and existing customers. Therefore, the promotional activities are necessary. In case of the Nor’easters, there is lack of the promotional activities in order to attract the customers. Due to this reason, the organization also has to face the reduction in the revenues. The performance in games is also acceptable.

The city of Springfield was diverse and vibrant in the manufacturing. By the year 2008, the city lost many higher-wage-earning residents. This leads the city to drop in the wages and the incomes of the people. Due to this reduction and drop, the overall economy and incomes of the people affects. The lack of the spending of people makes them hard to buy the tickets to go for the entertainment. At this stage, organization had to review its pricing strategies especially in context of the change in market. For the new comers and the working class city, the high prices or the expensive entertainment is useless. They prefer to save money for bad time. Therefore, Nor’easters has to face decline in supporters, audience and also in the funds rising from the games. In addition, the neighboring country is also the home to world-class teams such as hockey, football and baseball. These attract the people from surrounding areas.

  • What do you consider the key findings of the survey research? Why?

The professional sporting events help to support students in the colleges due to the high tickets. However, the lack of the transportation and the high tickets effects negatively for the students to become the sport man or take part in various events. There is need for the organization to redesign its ticket offers to attract existing and potential people and students from the educational institutes to take part as the team players and as audience. On the other hand, the requirement of the Buckingham was to utilize the data of the survey that was three year old. The difference between them is the base for the change. The results are important to analyze before making any final decision. The decision making process is not an easy task for the management. The marketing conditions and the change in the market are also necessary to consider. The change is also necessary in the structure and the environment of the organization in order to get desire results.

The offerings to the teams will accord the local market. The proper facilities to the professional teams are necessary. This is the way to attract the audience and customers to buy the high cost tickets for the games and the events. In addition, this will also help to develop attraction among college students to enter in sports and games. This will be more effective for Nor’easters in Springfield. In addition, the objectives of the research must be clear and actionable. The realistic objectives help the organization to market its project and achieve the goals. The marketing is very important for the success of the project. The marketing research includes the analysis of the customers behaviors, new trends in market, pricing of the tickets, improve transportation means, SWOT of the internal and external environment of the city as well as organization.

  • Based on the results of the survey research, what ticket price (per ticket) you would set for the single ticket, the 5-ticket package, the half-season ticket package, and the season ticket package?

Team president and the General Manager realize that the research survey was difficult. There is need to develop the team and tries to solve the issues of the operations, government relations and the finance. The most important one is to resolve the financial issues for the teams. On the other hand, fixed price of the tickets are not feasible for the organization. There is need to introduce the new packages including the discount packages for the tickets. The seasonal tickets, discount offers to the institutes and the families, the entertainment, discounts to the frequent customers helps to gain the desire results. Clarity of the questions, management decisions and ease of the data analysis is important for the organization and the management to run the operations of the team. However, the idea was not feasible according to the management. The reason is the time that will consume on the project and the research survey.

The good idea is to offer discount on the 5-ticket package for the families or friends. Half season package for the different communities and single ticket on some especial events. This is important for the management to offer discount and various ticket packages for the audience and the customers. Hence, the special exercises are important. In the event of the Nor’easters, there is absence of the special exercises keeping in mind the end goal to pull in the clients. Because of this reason, the association additionally needs to confront the lessening in the incomes. The contrast between them is the base for the change. The outcomes are imperative to break down before settling on any official choice. The basic leadership procedure is not a simple undertaking for the administration. In addition, there is also important to review the salaries of the players and teams to make them motivate for good performance.

This is better to come up with penetration pricing strategy in order to serve the customers in competitive market. The management is intending to come up with $ 40 price for one ticket for one individual. The purpose of low prices is to let immense audience to come in grounds and watch matches, as it will help them to increase their revenues.

In addition, the five ticket family package will be available for customers at $150. This is to mention that these ticket prices can be modified or converted according to season. The strategy is to come up with low prices in seasons to covert audience and attract them towards quality games. Interestingly, low prices of these tickets for customers will increase revenues are customers use to watch matches at home due to expense tickets. The most important thing is to be more profitable, which is based in penetration pricing strategy for customers in the season.

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International Presence (A Brief Review of Products/Services)

  • International Presence (A Brief Review of Products/Services)

The ZILLOW Company is an online real estate database company, which deal in sell, purchases and rents regarding house and different building around the globe. Regarding its international presence, this has been observed that due to information technology and its effective use, this company has a prominent position in an international real estate market in the presence of immense competitors. The most prominent services are ZILLOW mobile. Through this service, customers can navigate technology to ask different questions regarding real estate to have effective assistance from the company. Inaddition, market place and boundary maps are also important services for customers.

· A brief review of size and performance (total assets, number of employees, total

   sales/revenue, profitability and net income, ROA)

The performance and size of the company can be reviewed through various factors and ratio analysis is one of them. The Zillow Company has total assets of value $3,135.7 million as reported on the financial statement of 2015(Investors.zillowgroup.com, 2015, p. 43). The number of employees in the company as recorded in the year 2015 is 2014 full time employees as compared to the previous year that was 1215 full time employees. This increment in the number of full time employees is due to the inclusion of the Trulia in 2015.(Investors.zillowgroup.com, 2015, p. 47)The total sales volume for the Zillow Companyis $644,677 thousands in the year 2015, as compared to the last year’s revenue $325,893 thousands.(Investors.zillowgroup.com, 2015, p. 43)The company has recorded profit recorded as the Net loss in the year 2015 as $148,874 thousands. The previous year Net loss was $43,610 thousands.(Investors.zillowgroup.com, 2015, p. 43)The Return on Assets ROA can be computed as:

2015 2014
ROA -0.04748 -0.06712

Other than this there are profitability and efficiency ratios for the analysis of the profitability and efficiency of the company.

Ratio Formula Computation 2015 Computation 2014
Profitability Ratios
ROA Net Income/ Revenue (-148874)/3135700 -5% (-43610)/649730 -7%
Gross Margin Gross Profit/Sales (644677-61614)/644677 90% (325893-29461)/325893 91%
Operating Margin Operating Profit/Sales (-149531)/644677 -23% (-44695)/644677 -7%
Efficiency Ratios
ROE Net Income/ Total Equity (-148874)/2697053 -6% (-43610)/2697053 -2%
Current Ratio Current Assets/Current Liabilities 574094/80422 7.14 401337/49196 8.16
Quick Ratio Current Assets-Inventories/Current Liabilities 574094/80422 7.14 401337/49196 8.16

The gross margin of the company has declined even with the increment shown in the revenue,it is due to the increased ratio of the cost of revenue as compared to the increment in the revenue of the company.

The operating margin of the company has declined adversely in the year 2015 because of the increase in the sales and marketing expenses, technology and development expenses, admin and general expenses and on the restructuring costs. (Investors.zillowgroup.com, 2015)

The return on Equity is decreased in the year 2015 due to the increased net loss to the company, which is caused by the increased cost of revenue and operating expenses.

The current & quick ratio of the company is same as there are no inventories for this company. The Zillow Company has current ratio that is greater than three, which depicts that there may be chance that the company is not utilizing its current assets more effectively and is therefore is in abundance.

· Key competitors and their positioning (products/services quality, prices, and market share)

The main competitor is this company is TRULIA. In addition, the other competitors are ESTETELY, Homes, HOMESNAP, MOVOTO, Open Listings, REDFIN and UPNEST.  This is a fact that these competitors come up with effective pricing strategy along with quality services for customers. The management of these companies intends to come up with effective differentiation process, which makes services difference from ZILLOW. Some of the companies are using penetration-pricing strategies to attract and position better in minds of customers. Inaddition, the competitors, especially UPNEST and TRULIA are utilizing best possible distribution channels to have better placement and make customer’s minds regarding purchasing.

 Success Factors In Foreign Markets

The success in foreign markets has been justified through effective expansions. Die to good revenue growth, the company has come up with differentiation regarding online sales services for the customers. In addition, the success in foreign market is prominent due to effective diversifications. For instance, the management of this company has good relations with different distribution and channels in different countries, which let them to gain an early success in foreign market. In addition, the organizational culture is containing adaptationability regarding home culture in different markets, which is also a big reason of success for this company.

Entry Mode(S) Choice

The main choices for the management are investments and licensing. Both two methods are successful for ZILLOW. However, the management is emphasizing on investment as its priority to have good cultural attachments with all stakeholders in different business operations.

9. Expansion plan in the new country (5-year plan with objectives) ((Please see 5yrs file to complete this part))

Goals

The main aim of the company is to have high profitability in first years due to quality online services for customers. The high profitability will come through good market share. For this purpose, the management has to attach with people through cultural and society involvements, which will help it to gain success according to expectations.

Breaking Down

The five-year goals are competitive advantage, sustainability, customer satisfaction, cultural attachments and making good relations with all stakeholders such as local employees, suppliers and distribution channels. These goals have to be accomplished in annual goals, which are also pertinent to five years goals. Obviously, first the management has to achieve these goals annually and then gain high profitability.

Plans

The plan is to establish an effective organizational culture according to international standard, which will let the stakeholders to gather at the same path and achieve the goals for the company.

Responsibilities

The management of this company is responsible for this planning and implementation. The most important thing is to make different strategies with mutual consent of all stakeholders and then come up with effective and efficient implementation. This is on the management that how it can improvise and implement all the plans in future.

Objectives

The objective is to assist excellent customers in the competitive market. The customer satisfaction is a perfect measure for the management to derive success and accomplishments of planned objectives. This is necessary to mention that high profitability is not only main priority of this company, as customers services, care satisfaction will be considered as perfect measures for success for a long run.

References

Bizjournals.com. (2015, October 12). Success in swallowing Trulia propels Zillow shares to 52-week high. Retrieved May 9, 2016, from Biz Journal: http://www.bizjournals.com/seattle/blog/techflash/2015/10/success-in-swallowing-trulia-propels-zillow-shares.html

COOK, J. (2013, May 6). Zillow CEO Spencer Rascoff: International expansion is not in the cards for now. Retrieved May 9, 2016, from Geekwire: http://www.geekwire.com/2013/zillow-ceo-spencer-rascoff-expand-internationally-anytime/

Nielsen, R. (2016, February 1). These are the two types of companies Zillow would like to buy. Retrieved May 9, 2016, from Biz Journal: http://www.bizjournals.com/seattle/blog/techflash/2016/02/these-are-the-two-types-of-companies-zillow-would.html

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Sourcing plan

Sourcing plan for future requirements

Executive summary

The paper specifically associated with the detailed sourcing plan for the future requirement in the clothing business. Certain challenges are discussed in the paper to understand the formulations of the sourcing plan and made contingency planning to confront such challenges in a good manner. In the next section role of procurement and supply in managing purchasing expenditure and advance techniques for the improvement in purchasing discussed in the paper. The main theories of strategic sourcing are used in the paper like Leverage game theory in strategic sourcing as well as KRAJLIC MATRIX. RACI analysis also indicates the major composition of sourcing plan. The main measurement in sourcing plan indicates to understand the effective planning of purchasing, in last integrative negotiation strategy is use for the current sourcing plan for win-win relationships.

Table of contents

Executive summary. 2

Introduction. 4

Challenges in sourcing. 4

Technology and capacity weaknesses. 4

Transportation delays in global sourcing. 5

Longer inventory life cycles. 5

Custom and trade regulations. 5

Managing spend creep and ensuring cost containment 5

1.      Role of procurement and supply in managing purchasing expenditure. 5

1.1 Input from stakeholders. 5

2.      Techniques for the improvement in purchasing. 7

2.1 RACI analysis. 8

2.2 Leverage game theory in strategic sourcing. 9

2.3 KRAJLIC MATRIX.. 10

2.4 Traditional purchasing process. 10

2.5 Strategic sourcing. 11

3. Inclusion made in the contract 11

4.      Measurement of selection effective suppliers. 12

4.1 Price and quality. 12

4.2Delivery. 13

4.3 Supplier performance evaluation. 13

4.4 Feedback from suppliers. 13

4.5 Technical capabilities. 14

4.6 Risk identification. 14

4.7 Key deliverables. 14

5.      Aspects of purchasing or supply in negotiation. 15

Conclusion. 15

References. 17

Introduction

The sourcing plan creation has immense importance to meet the demands of customers.  The paper provides the detailed information regarding the execution of sustainable supply chain operations.  The area of expenditure is the purchasing clothing from Asia pacific that includes all types of fabric for the clothing business. In this regard, sourcing plan has been executed towards supply chain management for the initiation of major considerations in the production of clothing business. There are certain challenges faced under the composition of sourcing plan for the clothing business around the globe. The document provides detailed execution of procurement techniques and sourcing plan to intake major consolidations in supply chain management. (Faes & Matthyssens, 2009)

Challenges in sourcing

There are certain challenges in the sourcing plan that includes domestic as well as global procurement.  The main issues based on the capacity and technology weaknesses, delays in transportation in global sourcing, longer life cycles of inventory managing spend creep, trade and customs regulations and managing cost containment as well.

Technology and capacity weaknesses

When purchasing finish goods, lack of supplier technology and capacity reveals the major weakness in the sourcing that indicates the major threat for the company to regulate the firm supply chain management. Specifically in purchasing of clothing business, differentiation, as well as product development, are the main areas of company success.  Lack of technological capabilities and capacity utilization in the supplier selection process creates challenges in the planning of procurement.  (Olson & Wu, 2011)

Transportation delays in global sourcing

Longer cycle time as well as longer lead times initiates the major issues to meet the demands of the customer. For the sourcing plan, future requirements like measurements of distances should be taken to execute the best planning of sourcing finish goods.

Longer inventory life cycles

Longer distances of purchasing finish goods create issues in demand forecasting to the main planning of procurement to reveals best practices in the future requirements. 

Custom and trade regulations

The specifications of trade regulations need to be identity when purchasing from the global business environment.  The government rules and regulations and regulations of trade face challenge in the souring of finish goods.

Managing spend creep and ensuring cost containment

Implants of high charges towards differentiated sourcing and import of finish goods in the global supply chain operations. Highly motivated teams recognized to take best practices in the procurement for the future requirements.

1.                 Role of procurement and supply in managing purchasing expenditure

1.1 Input from stakeholders

There is the strong role of procurement in the supply chain management to execute the expenditures in the underlining of inputs.  There are certain activities included in the procurements that specifically include services, capital equipment, maintenance, repair and operating MRO for the exchange of integrated supply chain management towards sourcing plan. The primary goal of sourcing is optimized networks of the supply chain with the improvement in quality assurance with low-cost implementations.

 The role of procurement in the supply chain is right quality, right price, right place, right quantity, right time, right services and right source to retain the sustainability of supply chain management. Global supply chain operations, as well as shorten product life cycles, intake the major consolidations for the procurement and sourcing plan. Supply chain agility and flexibility has immense importance in the procurement of goods. Optimization of supply chain feasibility has been attained through agility of supply chain. The supply chain flexibility as well as strategic sourcing initiates for the confrontation of sustainable operation towards procurement.

Achievements in supply chain resilience are the main part of procurement to retain values of the supply chain.  In this regard, careful planning towards strategic souring builds to manage disruptions in the supply chain. Changing demands of the customer in clothing business creates challenges in purchasing.  In this regard, companies need to focus on the technological changes for best sustainability in supply chain executions. Procurement in an organization is the fundamental concept to retain the values of business. The integration of Sourcing, access, identification and management of the external resources is to meet supply chain strategic sourcing planning. Events and activities are included in the procurement before and after signing of contract. (Hasan & Alim, 2010)

The sourcing contracts specifically related to the need identification, planning, analysis and sourcing to integrate all function to generate effective outcomes. Supply chain management activities and contract management help in creating best result towards sourcing of clothing business.  The compliance of regulatory with the relationship of suppliers and planning of risk management provides the credibility in the best role of procurement in the supply chain executions. (MIAMI, 2015)

2.                 Techniques for the improvement in purchasing

There are certain techie needs to be identified in the purchasing for the improvement and sustainable supply chain operations. Single source procurement, two stage tendering, restricted tendering, request for quotations RFQs, request for proposals RFPs and open tendering are the main methods helps in improvement in purchasing with effective sourcing planning. Single source procurement is non-competitive technique and could be used only in the exceptional circumstances like emergency situations. In the single source planning that includes direct procurement form suppliers, sole-source selection, single source procurement and sole source procurement included in the acquiring of finish goods. (Steinru¨cke & Jahr, 2012)

 Two stage tendering as same as request for proposals where bidders assist technical requirements. The request for quotations specifically used for the small value procurements that are readily available for finished goods.  Invitation to quote is to select best quotation with high quality with low prices. Procurement through restricted tendering limits the request for tenders for the selection of contractors as well as suppliers. Selective tendering, limited bidding which is recognized as competitive bidding procurement methods reveals to generate effective outcomes in the sourcing plan.  On the other hand, open tendering technique recognized as competitive public procurement for the initiation of acquiring goods. Competitive bidding is identified under the open tendering. (Xiangling & Jaideep, 2014)

Request for proposal as well as the request for quotation are the common technique used for the procurement and attain competitive bidding in essential and adequate manner. Compelling type of proposals and unique documents has been identified for the execution of procurement method. Best price and best qualification of the supplier with effective cost assurance help in managing the supply chain execution in procurement. (Qureshi and Kumar, 2007)

In addition, there are others techniques in the supply chain management to initiates best quotation from suppliers. Supply market concentration, supply positioning, supplier referencing, supplier competitive strategies and supply market soundings are the most considerable procurement techniques in the supply chain management. In addition supplier selection process is also used for the execution of procurements technique for the procurement of goods.

2.1 RACI analysis

 The RACI analysis is the main methods that help in examining the role of stakeholders in the project execution. This analysis describes various roles and deliverables for the sourcing plan. It really helps in clarification of roles and responsibilities in the business processes. Responsible, accountable, consultant and inform are the abbreviated form of RACI analysis. 

Project: sourcing plan

Task Roles
  Procurements Engineer Designer Marketing
Business need recognition R A C C
Development of selection criteria RA C I  
Supplier sourcing RFI RA I    
Short listing suppliers RA C C  
Invitation of suppliers RFP RA I    
Visiting supplier facility C R A  
Negotiate RA C C  
Award contract RA      

R=Responsible

A= Accountable

C=Consultant

I=Inform

2.2  Leverage game theory in strategic sourcing

Applicability of game theory in sourcing process  
IMPACT   HIGH   Critical Strategic
LOW   Tactical acquisition Leverage

                        LOW                                                   HIGH

The buyer financial performance in terms of margin, revenues and risk exposure has best obtaining commercial terms. The impact and leverage of different categories of execution model indicate the specific knowledge and abilities in the sourcing practice. Efficient souring options raise its game as well as rapid payback by utilization of game theory.  Bidding metrics consolidates the spend category indicated by profile incorporated with the game theory principles to obtain efficient results towards strategic sourcing. (Genpact.com, 2013)

2.3 KRAJLIC MATRIX

Impact of profit   HIGH   Leverage products(Maximization of commercial advantage) Strategic products( Development of strategic relationships)
LOW   Non-critical products ( Effective procurement process) Bottleneck products (Supply continuity)
Supply risk  

                                                HIGH                                                              LOW

This matrix helps in demonstration of standardized strategic approach for the execution of best sourcing plan. This matrix helps in identification of supply chain risk in procurement of goods. Controlling of supply chain initiatives, centralized decision making, drive efficiency, product visibility and synergy identifications are the common characteristics of this matrix. Major improvements have been taken in this matrix like optimization, procedures, processes, system tools and standardization in the sourcing execution.    

2.4 Traditional purchasing process

 The process of traditional purchasing consist of different steps like soliciting bids, requisitions, shipping advice, payments, purchase orders and then invoices  for the unacceptable slow as well as labor intensive as slow.  The traditional purchasing model provides right quality and right quantity to negotiate in well manner. Divide and conquer approach in the purchasing also reveals that price concession from procurement of small batches. Many of the time certain companies does not focus on the career track positions that unable to survive in the competitive business environment. (Wei, Liu, Wang, & Wang, 2012)

2.5 Strategic sourcing

Evaluation of purchasing activities reveals to generate the strategic sourcing in essential and adequate manner. The strategic sourcing specifically integrated within the organization and reports to top management as well. The suppliers are resources and execution with eh suppliers are build under the strategic sourcing. In addition to this, resources focus on acquisition where the people create information. Creative & proactive, long-term decision frame and broad knowledge and skills are the main attributes of strategic sourcing.  The seven-stage process of strategic sourcing recognized in the following

1.    Understanding spends category

2.    Market of supplier assessment

3.    Development of supplier survey

4.    Development of strategy

5.    Request for proposal

6.    Selection and negotiation

7.    Communication with the new suppliers

3. Inclusion made in the contract

There are certain inclusions in sourcing plan that need to consider in the supply china to attain high operational excellence.  Execution of best possibility in cost budgeting for negotiation of suppliers to generate desired aim and objectives. There are certain factors influencing procurement decision making like fluctuations in pricing, handling finish goods, marginal benefits and delivery of goods.   The current research study implants the purchasing of clothing goods that are specifically involved in the cost-benefit analysis as well that need to consider in the current project of the sourcing plan. There are certain elements need to consider in the direct procurement includes acquiring production goods and maintenance repair operations MRO. The direct procurement has immense importance in the supply chain management that reveals to obtain desired aim and objectives in an effective way.  (Hasan and Alim, 2010)

There are certain activities included in the purchasing of goods that need to identify in the sustainable operations of supply chain management. Selection of vendors, the establishment of payments, negotiation with the suppliers and strategic vendor selection consider in the inclusion of development of the contract. The P2P process procures to pay has immense recognition in the effective contract and procurement planning.  Authorization of supplier selection as well as obtaining the quotation from suppliers is the main inclusion in the contract management for specification of procurement. (Blome, 2014)

Advance shipment notice as well as purchase order acknowledgment that is given to final receive of goods for the product associations.  After the receipts of goods, recording of the invoice has been taken for the evaluation of payment to suppliers to consolidate gain of effective procurement. E-procurement solutions also help in the procurement of goods which depends on of the size of an organization.   (Boone, 2012)

4.                 Measurement of selection effective suppliers

There is certain measurement of procurements that provides the credible values how the process of procurement going to be effective. Staffing, cost, leverage of technology and cycle time provide the values for the determination of efficacy in the procurement towards supply chain management. (Tate, 2011)

4.1 Price and quality

Price and quality of products is the major element that reveals the major consolidations towards the effective strategic sourcing.  The supplier price and quality initiate creation of win-win scenario for both buyers and supplier. Effective communication between supplier and buyer about product quality as well as the meet specification is to generate the best sourcing of goods. 

4.2Delivery

 Delivery of goods within given lead-time reveals the best sourcing plan in the given scenario. Achievement of lead-time efficacy sustains the supply chain operation to provide given output. Identification of non-compliance of supplier indicates for the confirmation of contract.   The value added features of suppliers specifically includes throughput time, the satisfaction of stakeholders, lead-time efficacy, operational performance and logistics indicate the best measurements of sourcing plan.

4.3 Supplier performance evaluation

For the evaluation of supplier performance AHP analytical hierarchy processes as well as lead time consolidations are recognized to indicate the performance characteristics of the supplier. Categorical method cost ratio model and weighted point model utilized for assessing the performance characteristics of suppliers.   The operational performance of supplier assesses under the demonstration of cooperation, quality and logistics performance towards supplier f goods and services.

4.4 Feedback from suppliers

The feedback from the supplier provides the indication of what are the major consequences in the supplier performance and inventory replenishment.   The feedback from the supplier helps in accumulations of identification of gaps in performance. Appropriate metrics are developed for the receipts of professional improvement in procurement. Collaboration and integration with the suppliers reveal the buffering stock and levels of stock to meet the customer requirements.  Elimination of waste, as well as sustainability in supply chain operation, provides the credibility of procurement efficiency. Wal-Mart, Best Buy, and another retail chain provides the best indicated example for the measurement of supplier evaluation programs. 

4.5 Technical capabilities

Packaging material, a system of production planning and quantity of capacity planning indicate the sourcing planning effectiveness. If the technical capabilities are lack in sourcing planning, then the planning goes to unusual means without any obtaining purpose of research. The design of finish goods, as well as a transformational change in logistics operations, generates effective technical capabilities in the sourcing plan. (Steinru¨cke & Jahr, 2012)

4.6 Risk identification

 Identification of risk, as well as visibility of finish goods in multi-layer supply chain, provides the achievement in the sustainability of supply chain.  Communication between the suppliers and company helps in generating effective outcomes. The role of supplier’s product specification demonstrates the value of procurement efficiency that reveals the how the procurement sustained in the supply chain operations. The probability of risk occurrences is that disrupts the procurement need to consider adequately. The determination of supply chain risk management SCRM provides the contingency planning before the occurrence of risk and becomes resilient.  (Finch & Peter, 2004)

4.7 Key deliverables

There are certain key deliverables in the sourcing plan that ensures the sustainability in the sourcing plan of clothing business. Efficacy of lead time with the high-quality products is the main of the study to retain best operations of supply chain management. Supply chain standards of quality of suppliers with controlling functions and logistics system reveals best sourcing plan for future requirements.   An optimized network of supply chain ensures the organizational goals in the sourcing plan. (Finch and Peter, 2004)

5.                 Aspects of purchasing or supply in negotiation

The negotiation strategies have immense importance in the supply chain management to quote the best price and quality to remain sustainable in the competitive business environment.   The strategies of negotiation based on the compromising, competitive, collaborative, and accommodating and avoiding negotiation strategies that provide in-depth values analysis for the delivery of services in sourcing plan. Certain strategies need to consider in the supply negotiations to get the best quotation from the suppliers. Distributive negotiation strategy is the major strategy in best procurement planning. Integrative negotiation strategy both the parties collaborative produced results with the win-win scenario.   This means that collaborative strategy is best negotiation strategy for the perfect sourcing plan. While on the other hand compromising negotiation strategy split into difference for both the parties. (Zachariassen, 2008)

 There is two bargaining strategy of the negotiation strategy that includes integrative and distributive strategy as well. Intensive and aggressive dealings are associated with the reduction in price as well as the reduction in delivery times, such type of negotiations based on the mutual understanding, need for trust, openness and sense of empathy to generate effective outcomes in a sourcing plan. For the current sourcing plan, integrative negotiation strategy is used that reveals major consolidations of win-win relationship for both parties. (Zachariassen, 2008)

Conclusion

Thus to sum up all discussion about the sourcing plan is that indicates the major consolidations of strategic sourcing of clothing items. The paper provides the clear indication of strategic sourcing that helps in generated best outcomes. The management of supply and procurement is every need of business to generate effective results. There is the strong role of procurement in supply chain expedite that reveals the profitable values to the organization.  RACI analysis for the identification of stakeholders values for the execution of project management. The main theories of strategic sourcing are used in the paper like Leverage game theory in strategic sourcing as well as KRAJLIC MATRIX to indicate the supply chain risk and best procurement standardization in essential and adequate manner. The contract inclusion is like termination options, logistical operation, delivery dates, prices and quality measurements and negotiation strategy needs to consider for best execution of strategic sourcing.  In last, the negotiation with the suppliers made in terms of quality, quantity and price with lead-time efficacy. 

References

Blome, C. (2014). Supply chain collaboration and sustainability. International Journal of Operations &amp; Production Management, , 34, 639-663.

Boone, T. (2012). Sustainable Supply Chains: Models, Methods, and Public Policy Implications (International Series in Operations Research & Management Science). Springer.

Faes, W., & Matthyssens, P. (2009). Insights into the process of changing sourcing strategies. Journal of Business & Industrial Marketing , 24 (3/4), 245 – 255.

Finch, & Peter. (2004). Supply chain risk management. Supply Chain Management: An International Journal , 183-196.

Genpact.com. (2013). Leveraging “Game Theory” in strategic sourcing. Retrieved May 10, 2016, from http://www.genpact.com/docs/resource-/leveraging-game-theory-in-strategic-sourcing

Guercini, S., & Runfola, A. (2005). SOURCING STRATEGIES IN CLOTHING RETAIL FIRMS: PRODUCT COMPLEXITY VERSUS OVERSEAS SUPPLY CHAIN . IMP .

Hasan, R., & Alim, M. A. (2010). Factors Affecting Supply Chain Management Efficiency in Cross Border Outsourcing:A case study of H&M and its Outsourcing Operations in Bangladesh. Retrieved november 12, 2014, from gupea.ub.gu.se: https://gupea.ub.gu.se/bitstream/2077/23882/1/gupea_2077_23882_1.pdf

MIAMI. (2015, March 24). For 2015, Procurement Organizations Focus on Supporting Enterprise Agility by Becoming More of a Trusted Advisor; But Capability Gaps in Key Areas May Cause Challenges. Retrieved May 9, 2016, from http://www.bloomberg.com/research/markets/news/article.asp?docKey=600-201503240930BIZWIRE_USPRX____BW5159-1

Olson, D. L., & Wu, D. (2011). Risk management models for supply chain: a scenario analysis of outsourcing to China. Supply Chain Management: An International Journal .

Puschmann, T., & Alt, R. (2005). Successful use of e-procurement in supply chains. Supply Chain Management: An International Journal , 10 (2), 122 – 133.

Qureshi, M., & Kumar, D. (2007). Modeling the logistics outsourcing relationship variables to enhance shippers’ productivity and competitiveness in logistical supply chain. International Journal of Productivity and Performance Management , 56 (8), 689 – 714.

Ramanathan, U., Gunasekaran, A., & Subramanian, N. (2011). Supply chain collaboration performance metrics: a conceptual framework. Benchmarking: An International Journal , 18 (6), 856 – 872.

Scm.ncsu. (2011). Sourcing Strategy. Retrieved May 10, 2016, from https://scm.ncsu.edu/scm-articles/article/sourcing-strategy

Steinru¨cke, M., & Jahr, M. (2012). Tactical planning in supply chain networks with customer oriented single sourcing. The International Journal of Logistics Management , 23 (2), 259 – 279.

Tate, W. L. (2011). The Essentials of Supply Chain Management Strategic Sourcing: Cost Management. Retrieved May 10, 2016, from http://www.scmr.com/article/the_essentials_of_supply_chain_management

Wei, Y., Liu, X., Wang, C., & Wang, J. (2012). Local sourcing of multinational enterprises in China. International Journal of Emerging Markets , 7 (4), 364 – 382.

Xiangling, H., & Jaideep, M. (2014). Minimizing downside risks for global sourcing under price-sensitive stochastic demand, exchange rate uncertainties, and supplier capacity constraints. Int. J. Production Economics , 147 (1), 398-409.

Zachariassen, F. (2008). Negotiation strategies in supply chain management. International Journal of Physical Distribution & Logistics Management , 38 (10), 764 – 781.

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Hillside Mine Bureau of Land Management

Table of Contents

List of Figures. 2

1.0 Project Understanding. 3

1.1 Project Purpose. 3

1.2 Project Background. 3

1.3 Technical Description. 5

1.4 Potential Challenges. 5

1.5 Stakeholders. 6

2.0 Technical Sections. 6

2.1 Task 1: Data Collection. 6

2.2 Task 2: Establishing Flows for Analysis. 6

2.3 Task 3: Survey. 9

2.4 Task 4: AutoCAD Drawings. 10

2.4 Task 4: Future Work. 10

2.5 Task 5: Project Management 10

2.5.1 Subtask 5.1: Client Interaction. 10

2.5.2 Subtask 5.2: Team Management 10

3.0 Schedule. 11

4.0 Staffing Plan/Cost of Engineering Services. 11

4.1 Staffing. 11

4.2 Cost of Engineering Services. 12

5.0 References. 12

List of Figures

Figure 1.1: Arizona’s Watersheds ……………………………….………………..,……..4

Figure 1.2: Sub-Watershed Region………………….. ..…………………….……….…5

Figure 2.1: Map of Francis Creek ………………………………………………….……6

Table 2.1: Peak flows of Francis Creek………………………………………….………7

Table 2.2: Peak flows of Burro Creek ………………………………………..…………8

1.0 Introduction

1.1 Project Purpose

The purpose of this project is to identify and map the potential damage to the Hillside Mine waste repository cap in the event of a catastrophic flood. Due to recent changes in yearly weather patterns the possibility of a 500 year event is greater.

Arizona has been in a state of drought for fifteen years. The potential for wildfires is greatly increased versus years with average precipitation. Given that the Boulder Creek watershed extends into higher forested elevations, the possibility for fire damage on Bozarth mesa may also be a concern. Flash flooding is much more likely in areas affected by devastating fires.

Another concern is from higher than average precipitation.  Arizona is expected to have one of the strongest El Nino weather patterns on record towards the end of the 2015 winter [1]. Additional precipitation could create oversaturation of soils, increasing the chance for localized flooding in the area. There is a direct relationship between rainfall and erosion on the cap.  The goal of this project is to identify the potential and probability of an event causing damage to the Hillside mine cap. If the current containment design is found inadequate, the project may lead to future designs.

The main objective is to keep contaminants, such as heavy metals and acids, out of Boulder Creek. The problem to solve is erosion. The hydraulic study contained within the scope of this project will identify the capacity of erosion to the waste repository cap.

1.2 Project Background

The Hillside Mine is located in the Eureka Mining District in Yavapai County, Arizona. It is located in a mountainous region in the mid-western portion of Arizona. The mine site is five miles north of Bagdad, Arizona, which makes it in close proximity of a small town.

Figure 1.1: Site Location

Boulder Creek is an intermittent stream starting at Camp Wood Mount and extending approximately 37 miles southeast. As seen in figure 1.2, the location of the site is found in the Bill Williams Watershed (#4 on map).

Figure 1.2: Arizona’s Watersheds. [6]

 A closer look at the sub-watershed can be seen in figure 1.3. Before the cap was placed on the Upper Tailings pile, Boulder Creek was in danger of contamination issues due to erosion of the tailings.  The current cap safely controls the erosion issues around the creek.   The location of this particular site makes it difficult for vehicles to reach area, which acts as a benefit considering recreational activity around the site may cause damage and decrease the lifespan of the engineered cap.

Figure 1.3: Boulder Creek Watershed. [6]

1.3 Technical Description

The project is heavily based in the hydrology field of engineering.  Considering that the Boulder Creek watershed is approximately 138 square miles and the flow depends heavily on winter storms and spring snowmelt, hydraulic modeling systems are required.[6] The US Army Corps of Engineers developed a program called HEC-RAS (Hydrologic Engineering Centers River Analysis System) which allows one to perform one-dimensional steady flow, unsteady flow, sediment transport, and water temperature modeling.   This modeling system will provide the information needed to anticipate how the stream will act under a catastrophic storm event. 

Along with hydrology, the project also includes a geotechnical aspect.  Knowing the land and the soil around the stream will lead to more precise erosion results.  Since the stream will be analyzed under a 500 year storm, erosion is cause for concern.  Too much erosion around the stream could possibly cause failure of the cap, which would release containments into Boulder Creek.

1.4 Potential Challenges

In order to establish the erosion potential of the mine surveying must be performed over a large area. Many hours will be spent gathering the necessary data to map the area. The elevation of the mine is around 3000 feet above mean sea level [6]. In Arizona this elevation can reach temperatures well above 90 degrees Fahrenheit for summer months. Day and night temperatures can vary by 40 degrees.  Winter temperatures can drop well below freezing. Crews must be prepared for this environment.

Other potential challenges when conducting this hydraulic study include steep terrain, weather, general access, and contact with plant and animal life.  Rain and snow are considerations for access to the mine. The roads are primitive and subject to washouts, and could become too muddy for travel.

The elevation of the mine is around 3000 feet above mean sea level.  In Arizona this region contains a range of potential risks. Local wildlife includes venomous snakes, poisonous spiders and scorpions. Cactus and chaparral can create difficulty when traversing rough canyon country. In addition the terrain is steep and rocky which adds difficulty when conducting a survey.

1.5 Stakeholders

The stakeholders consist of the Bureau of Land management, taxpayers, and local populations of the nearby mine, which in this case is the City of Bagdad. Additionally, any living organism within the watershed may be affected.

The BLM is a stakeholder because they are the organization that is trying to manage land on which the mine is located. The living organisms within the watershed have a stake in this project because their livelihood will be affected if the stream overflows and the cap’s integrity on the mine becomes compromised.

The contamination by mining is directly hazardous to people that participate in recreational activities at the Hillside Mine or Boulder Creek. Secondly, local ranching operations may also be affected by these contaminants. For example, cattle may use the Boulder and Burro Creek as a primary water source. Therefore, it can be said that the contamination released from mining has adverse impacts on almost all direct and indirect stakeholders.

2.0 Technical Sections

2.1 Task 1: Data Collection

Data gathered included: USGS stream data for Boulder Creek, precipitation data, Site Observations, and Survey data from the critical stream section.

2.2 Task 2: Establishing Flows for Analysis

The greatest difficulty in analysis of flows in Boulder Creek is a lack of data. Stream gauges are not established in this particular drainage area. In order to estimate peak flows the adjacent Francis Creek will provide a limited model of Boulder Creek.  Francis Creek has an almost identical drainage area and topography. Elevations, vegetation and geology are very alike when compared to the Boulder Creek drainage.

Text Box: Francis Creek
Text Box: Boulder Creek

Figure 2.1: Map of Francis creek in relation to site

Unfortunately only four data points are available for peak flows. These values were collected from a USGS stream gauge,which was in service from 1984 to 1994. Table 2.1 shows these peak flows and the date of record.

Table 2.1: Latitude  34°45’42”, Longitude 113°15’54” NAD27

Drainage area 134  square miles

Contributing drainage area 134  square miles

Gage datum 3,260 feet above NGVD29

Water Year   Date   Gage Height (feet)   Stream- flow (cfs)  
       
1990 Aug. 16, 1990 8.38 2,230
1991 Mar. 01, 1991 9.42 3,090
1992 Feb. 13, 1992 8.77 2,530
1993 Feb. 08, 1993 13.68 12,500

This gauging station will be used to provide a very limited model and will be compared to the Burro creek stream gauge. This gauge is an excellent source of data, however the contributing drainage, which includes both Francis and Boulder Creeks, is 601 square miles. Preliminary comparisons of flows on given dates indicate a direct relationship can be determined between the two gauging stations. The drainage area for Francis and Boulder creek is approximately 4.5 times smaller than the Burro Creek area. When the flood events are compared, the flows are roughly 4.5 times less for the Francis Creek gauging station. This would indicate that the use of the Burro Creek gauging station should provide enough accuracy to extrapolate flows for Boulder creek. Table 2.1 contains the peak flows recorded from 1980 to 2014 for the Burro Creek USGS gauging station.

Table 2.2: Mohave County, Arizona

Hydrologic Unit Code 15030202

Latitude  34°32’30”, Longitude 113°26’40” NAD27

Drainage area 611  square miles

Contributing drainage area 601  square miles

Gage datum 1,880 feet above NGVD29

Year                               Date                     Gauge Height            CFS

1980 Feb. 14, 1980 15.60 47,400
1981 Sep. 05, 1981 5.00 728
1982 Feb. 11, 1982 8.37 5,400
1983 Mar. 03, 1983 13.70 30,600
1984 Aug. 24, 1984 7.73 3,950
1985 Dec. 27, 1984 10.24 12,400
1986 Nov. 30, 1985 8.63 6,210
1987 Mar. 05, 1987 5.14 565
1988 Aug. 27, 1988 8.70 6,410
1989 Jan. 05, 1989 5.52 798
1990 Sep. 18, 1990 6.13 1,410
1991 Mar. 01, 1991 13.71 29,900
1992 Feb. 13, 1992 10.87 12,300
1993 Feb. 08, 1993 16.30 55,300
2004 Sep. 19, 2004 13.15 21,200
2005 Feb. 11, 2005 16.48 44,600
2006 Sep. 09, 2006 6.63 1,510
2007 Sep. 22, 2007 9.04 5,700
2009 Dec. 26, 2008 12.86 21,800
2010 Jan. 21, 2010 17.32 50,900
2011 Mar. 02, 2011 7.07 1,650
2012 Aug. 21, 2012 6.97 5,890
2013 Sep. 11, 2013 7.80 2,000
2014 Aug. 26, 2014 9.82 7,910

One method of analysis will be to graph flows based on the data in table 2.2 vs. time to extrapolate flows in 100, 500, and 1000 years. Once established these values will be compared to two other analysis methods.

Another method of analysis requires using a NOAA interactive map to generate point based data frequency estimates in tabular format. The frequency of events range from 1 to 1000 years with a precipitation duration ranging from five minutes to 60 days (table 3). This will give a baseline in determining the actual likelihood of past precipitation events form NOAA records (table 4). The rainfall/snowmelt events will be compared to stream flows. The result of this comparison is to label peak flows in Boulder creek with an event frequency. The timeframe is limited to 24 hrs. By the stream gauge data from tables 1 and 2. Graphical analysis should result in an accurate prediction of flows based on a storm event of 500 and 1000 year frequencies.

2.3 Task 3: Survey

Surveying was conducted north of the Hillside Mine inside of Boulder Creek. There is only a 120 yard span of Boulder Creek that has the potential of compromising the mine cap’s integrity. The total station was setup along the thalweg of Boulder Creek just 45 feet north of the mine cap and towards the western part of the 120 yard span. The second total station setup was towards the eastern part, which allowed hidden sections of the creek to be captured. Survey data was collected throughout Boulder Creek, which included the banks, thalweg, and other critical points that can contribute to the development of the topographic map of the project site. Prisms and prism rods where used to collect the survey points. The survey points were stored into a data collector which connects to the total station and allows the input data to be matched between the two devices. The data was extracted from the data collector onto a PC where AutoCAD Civil 3D can process the data. 

2.4 Task 4: AutoCAD Drawings

The surface created by the survey data is shown in the Appendix.  With an area of 230,000 sq ft. and a length of approximately 700 yards along the thalweg, this surface shows the most critical section along the tailing pile. An elevation model of surface was also created as another visual where one can see the elevation difference as shown in the appendix.   A profile drawing of the thalweg can be seen in the Appendix.  The alignment shows that thethalweg has an approximate 1.5% slope.  The three cross sections shown in the Appendix correspond to their labels.  The cross sections represent upstream, center, and downstream.  As seen in the drawings, the side slopes reach a vertical height of approximately 60 ft. from the stream bed.  This is a good sign considering the stream channel needs to hold a 500 year flood event. 

2.5 Task 5:HEC-RAS

The geometric data from AutoCAD as well as the flow data were inputted into the HEC-RAS program.  Along with using the cross sections from our AutoCAD surface, and average slope and manning’s roughness coefficient were implemented.  An average slope of 1.5% was used and a manning’s coefficient of 0.035.  HEC-RAS used all the data provided and created the models, as seen in the Appendix.  The main objective of these models are to make sure that the calculated flow does not exceed the cap boundary line.  The 100-year flow of 24,000 cfs did not come close to the cap line with approximately 40 vertical feet to spare.  The 500-year flow event as requested by the client resulted in a flow of 30,000 cfs. This flow did not cause any overtopping and had approximately 30 vertical feet to spare before hitting the cap line. Overtopping will not be an issue with any of these storm events.Each model can be seen in the Appendix.  KASH Engineering has determined that the site is not in danger of overtopping.  Although the storm events do not reach the cap line, the high amounts of energy of a stream flowing at this rate could cause undercutting and possible erosion issues. 

2.5 Task 5: Project Management

2.5.1 Subtask 5.1: Client Interaction

Kash Engineering will work closely with the client and notify the client of progress throughout the span of the project. Kash Engineering will also communicate with the client to ensure the project tasks that have been stated are completed.

2.5.2 Subtask 5.2: Team Management

The project workload will be divided throughout the Kash Engineering staff. Based on personal qualifications, workload, and available time, individual tasks will be completed in the most efficient manner possible.  The team will peer review all aspects of this project to ensure quality and consistency throughout the process.

3.0 Schedule

The project schedule is displayed below in figure 3.1

Figure 3.1: Project Schedule

The project will begin on the Jan 19th and be completed by May 16th. These tasks are essential to the completion of the project but are not entirely dependent on each other. The red line indicates the critical path of the project.

4.0 Staffing Plan/Cost of Engineering Services

This section includes an explanation of the positions required and the cost of service to                                                    complete the project

4.1 Staffing

Surveyor: The project surveyor is responsible for recording exact measurements of Boulder Creek.

Project Engineer: The Project Engineer is responsible for reviewing all project work and will determine that all client requirements are met. The Engineer will maintain a safe working environment by enforcing proper procedures and regulations.

Hydrology Analyst: The Hydrology Analyst will perform all hydraulic and hydrologic modeling.

Project Manager: The project manager will oversee the project from beginning to the end. The project manager will ensure the project is moving along according to plan and all tasks are being completed.

4.2 Cost of Engineering Services

Figure 4.1 shows the cost breakdown for the project. The estimated personnel costs for each position is shown along with number of hours per task each position will be working. Overhead is included in these billable rates. Additional expenses include travel costs and lodging. Figure 4.1 displays the cost analysis in detail.

Cost

Figure 4.1: Cost Breakdown for Project

Conclusion

In this study, we discussed about Hillside mine located in region of Arizona. The study emphasized on different reason for drought in this reasons regarding this mine. This was all about contaminants, such as metal and acids, which hindered human friendly weather. In this region, there was an issue, which had to be resolved. The objective has been justified with different results in lab. The two methods were prominent, as these were well enough to derive information through different graphs flows. In addition, in a lab, there was another method, named as NOAA, which has helped us to navigate data in form of frequency and in a tabular form. The potential damage has been observed through investigation in lab, as it is caused to contamination due to erosion of tailing.

Due to hydrology field of engineering, this was effective to derive results regarding clime damage. These results are mentioned as lack of rain and bad environment fro humans, which causes different diseases. The Francis creek and boulder are navigated in relation to the site, which has helped to derive the damaged area die to contamination. The use of different gauges in labs was helpful will let us to derive expected results from the surveys.

Use of Auto Cad drawing has helped to consider area of 230,000 sq ft. In this navigation, the three cross sections were mentioned and used to depict affected areas due to contamination. The steam bed consideration was good to derive information regarding almost 500-flood event. The ups stream, center and downstream have been navigated in this phase of examination in lab.  In addition, the interaction with client was effective, as the client was involved in the project with lucrative communication. From start to end, the interaction with client by KASH Engineering has helped to complete the project on time with expected results, shown in appendix.

5.0 References

  • D. D. Gillham, “Winter Preview: El Niño contributes to a tale of two seasons,” The Weather Network, Feb-2015.
  • “USGS TNM 2.0 Viewer,” USGS TNM 2.0 Viewer.
  • “What are Hydraflow Extensions?,” What are Hydraflow Extensions?, Mar-2015.
  • D. Feldman, Hydrologic Modeling System: HEC-HMS: US Army Corps of Engineers, Institute for Water Resources, Hydrologic Engineering Center, 2001.
  • G. W. Brunner, HEC-RAS River Analysis System: User’s Manual. US Army Corps of Engineers, Institute for Water Resources, Hydrologic Engineering Center, 2001.

[6] “USGS Surface Water for Arizona: Peak Streamflow,” USGS Surface Water for Arizona: Peak Streamflow. [Online]. Available at: http://nwis.waterdata.usgs.gov/az/nwis/peak/?site_no=09424432. [Accessed: 08-Mar-2016].

[7] USGS Surface Water for Arizona: Peak Streamflow,” USGS Surface Water for Arizona: Peak Streamflow. [Online]. Available at: http://nwis.waterdata.usgs.gov/az/nwis/peak?site_no=09424447. [Accessed: 08-Mar-2016].

[8] “Climate Data Online: Dataset Discovery,” Datasets. [Online]. Available at: https://www.ncdc.noaa.gov/cdo-web/datasets. [Accessed: 08-Mar-2016].

APPENDIX

APPENDIX A

[8]

APPENDIX B

APPENDIX C

APPENDIX D

APPENDIX E

APPENDIX F

APPENDIX G

100-year storm

500-year storm

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Advantages and disadvantages to your sales team; to your company

  1. In your business, describe salary, commission, and combination pay plans in terms of their advantages and disadvantages to your sales team; to your company.

These are the methods that are used for primary compensating sales people. The salary is the fixed amount that is provided to the sales representatives or the employees. Commission is the fixed or variable ratio or the percentage on the sales of the units or products. It also includes achieving the sales targets for the organization. Lastly it is combination of the basic salary and the incentive play in the form of the bonuses, commissions or the both. For the increase in the sales of the glass water repellent, there is need to offer the commission for the sales representatives. This is the extra push for them in order to make them effective and efficient. This is also a good method to increase the sales of the product. The commission and the sales target can achieve by face-to-face and door-to-door marketing of the product. In addition, the feedback from the customers is also important for the development of the product and the organization.

The bonuses and the commissions are favorable in terms of the increase in sales of the glass water repellent; however, commission with salary is disadvantage for the organization. The extra amount is deducted from the accounts in terms of the compensation to the sales persons. There is the solution to overcome these problems. The salary is based according to the sales of the units of the products. On the other hand, the commission will award on achieving the sales target set by the organization for the purpose to increase the sales. The bonuses will provide on the best performance and it will annually. The advantage is that the employees will work with commitment and determination in order to increase the sales and generates revenue for the organization.

  • For your business or product, what type of evaluation perspective for your employees are more appropriate and why: outcome based or behavior based. How will this improve your salesperson’s performance?

The subjective measures are important for the employees to evaluate their performance. These are important to directly observe the behavior of the employees and the sales agents during the work. It is also important for the development of the organization and the business. It is important because the aim of the business is to run long term in the market. The sales of the product or the glass water repellent are not one time. The sales person helps to develop the strong and loyal relationships with customers and the organization. Therefore, it is mandatory to observe the behavior and attitude of the employees during the performance. For the success of the organization it is also mandatory for the organization to keep the monitoring and evaluation of the employees. For this proposer, organization can also take the feedback from the customers.

On the other hand, the objective measurement is also necessary to improve the performance of the salespersons. In order to achieving the sales target the sales person can adopt any means. However, there is no misleading about the quality, standard and working of the product. The organization can use the task-oriented approach to increase sales. Objective measure also includes the output measures of the sales person. The appraisal system helps to improve the sales performance of the sale representative. The desirable behavior of the sales person is more much controllable. However, the number of the active accounts is more effective in order to measure the sales performance and behavior of the sales person with employer and the customer. In rare cases, the organization can go for the ratio measures, any kind of the deficiency can be manage and control by focusing on the behavior and attitude of the customers and coaching to them by the managers.

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Analysis and Interpretation of Financial Statements

Q1

Some limitations of financial statements are the level of dependence on financial statements, this perspective changes to historical prices.

The second limitation is based on the effect on inflation that are though reflected in the financial statements but are not elaborated. the yearly comparison is based on this inflation as well so horizontal analysis of the financial statements is not possible.

Another limitation is that the intangible assets are not recorded and this undermines the asset side and the equity proportion as well.

The Real solution to these problems is the efficient display of characteristic in terms of intangible assets and the information that is available to the prospective readers of those statements. To view inflation a second copy on consolidation should be made that would remove the effects of inflation from the whole scenario.

Q2

2014 2015
a i Net Profit Margin 15.00% 6.67%
ii ROE 15.00% 8.33%
iii Current Ratio 7.00 5.00
iv Acid Test Ratio 5 1.67
v Gearing ratio 10 3.43
vi Inventory Turnover Period 168 191

b

  1. The Profitability of the company is decreasing; this indicates a downward trend for the organization
  2. the Short term liquidity for the company is also decreasing highlighting a decrease in the trend for solvency
  3. the gearing ratio is decreasing and the inventory period is increasing indicating a downward trend for the organization

Q3

  1. Efficiency is the lowering of costs and effectiveness is successfully completing all the goals that are assigned. In whole efficiency is cost cutting and efficiency is meeting targets.
  2. Liquidity is short term and solvency is long term. Overall liquidity covers short term transfer of funds and Solvency is long term fluency of the funds of the company. The Short Term determines the ability to pay back current liabilities and solvency is the ability that covers long term debt coverage.
  3. Horizontal Analysis observes the company’s analysis as compared to its past performance and vertical analysis denotes comparison to its sales in the income statement and to the total assets in the balance sheet
  4. Return on assets and return on capital employed differ in form of their denominator. The first the involves division by total assets and the latter excludes current assets.

Q4.

This is not a good idea as it encompasses a huge liability that centers a self-funded business and adding insult to injury, this has a fixed interest rate. This rate does not fluctuate with the official changes in bank rate.

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The Null Hypothesis

  1. The Null Hypothesis:

Number of students does not affect the average grade of the class.

Alternate Hypothesis

Number of Students affect the average grade of the class.

2.)   I opted for confidence level of 0.01%.

3.)    The test Results of the test are

Chi-Square Tests
  Value df Asymptotic Significance (2-sided)
Pearson Chi-Square 2.190a 75 .002
Likelihood Ratio 12.912 66 .0005
Linear-by-Linear Association 3.41 2 .001
N of Valid Cases 2735    
a.     13 cells (56.5%) have expected count less than 12. The minimum expected count is .21.

4.)    2-tailed significance=0.002

5.)    Since Significance is 0.002< 0.01indicating a clear rejection of the null hypothesis.

6.)    It can be concluded that the grades are associated with the number of students in each class. This is due to the disturbance and the chaos created by each extra student. The scope of this study is a full semester since grades can only be determined at the end of each semester. The statistics clearly indicates the alternate hypothesis was accepted and after this assessment it can be seen that the grades do decrease in the short and long run. The relationship besides being significant is also having a considerable impact as well.

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Student council representative

Student Council Representative

Acting as student council representative, improvement in school has needed to be identified to take necessary action in adequate way. There are certain challenges faced by ERIKALANE elementary school like changing in demographics, elimination of funding, poor PTSA participation and decrease in reading score leads to major problems in running operations of school. This reveals that improvement in school plan need to be address to formulate the strategic planning in essential and adequate manner.  Analyze data, clarification of problem, create the action plan, implement action plan and monitoring progress are the major role of principals.

Addressing school improvement needs as well as monitoring for the implementation of planning is the major associated role for the school improvement. Establishment of school standards and criteria for selection of course assessed towards their capability and skills proficiency. Recognition of gap between current achievement and state standards for the efficacy in school improvement need to be identified. (Maryland.gov, 2016)  In my opinion, I would like that engagement and involvement of entire staff in analyzing data as well as making data drive decisions towards school improvement process. As the challenges towards ERIKALANE elementary school, increase parent participation in the student affair programs helps in demonstrating the skills and capabilities of student. When parents participate in the student counseling programs, it nurtures the student core capabilities and communicate gap of skills. Therefore in my opinion, acting as student council representative, improvement in school by parent participation reveals to generate improvement in school. I believe in the abilities of each and every student in the school in our team, together, execute and overcome this challenge in well manner.

Reference:

Maryland.gov. (2016). School Improvement Planning. Retrieved May 9, 2016, from http://mdk12.msde.maryland.gov/process/leading/index.html

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Productivity of the sales organization to include: sales analysis, cost analysis, and profitability

Customer satisfaction and sales analysis are important for the effectiveness of the sales organization. This process involves survey that helps the organization to determine the satisfaction level of the people towards the products and services of the companies. To evaluate the effectiveness of the sales organization the following steps could be conducted;

Sales Analysis:

There are different methods that are used to perform the sales analysis that helps the organization to know the effectiveness of the sales. Sales analysis depend on the organization level of analysis that is; is the organization is selling its products and services based on Zones, Regions, Districts or accounts etc. sales analysis also involves, the type of sales that is; type of products sales, types of accounts sales by the organization, type of distribution sales and order size sales. Organization can use different methods to analyze the sales that are; by comparing sales Quotas (effectiveness index), by comparing the sales with the previous period (i.e. sales growth) and comparing the sales with the sales of competitors (i.e. market share).

Cost Analysis:

To know the effectiveness of the sale organization it is important to know the cost incurred by the organization in achieving the desired level of sales. To analyze the cost of the sales, it is important for the organization to determine the compensation expenses, travel expenses, administrative expenses etc. These includes salaries, commissions bonuses, lodging, transportation costs etc. organizations after determining these cost they can organize total budget that includes actual cost and original cost. On comparing the actual cost with the budgeted cost, the organization can find out variance between these costs that is; either they incur a higher cost than expected of lower than expectations. Moreover, they can find out the difference between the cost of a percentage of the sale of actual products in a specific region and budgeted expenditure percentage (Ingram T. N., LaForge, Avila, Schwepker, & Jr., 2012).

Profitability:

Sales analysis and cost analysis data both help the organization to determine the profitability of the sales organization. Different methods are used to determine the profitability; income statement approach that focuses on net profit from the different levels of the sales organization, Activity bases costing that involves the cost of the individual unit. The third method is Return on asset-managed approach. On this, organizations can find out the productivity of the sales (Ingram, LaForge, Schwepker, & Williams, 2015).

  1. What type of evaluation perspective is appropriate for your employee and why? Outcome-based or behavior based? How will this help to control sales person performance?

Outcome –based perspectives: sales managers focus their interest on measuring the results with the help of little monitoring or directing the behavior of the salesperson. On the other hand, in Behavior-based perspective; sales manager, measure the result with considerable monitoring or directing the behavior of a sale person. This process also involves the subjective and complex assessment of the characteristics and behavior of the salesperson.

Behavior-based perspective is more appropriate for the employee because it involves, considerable monitoring, it involves the direction of high-level managers, it involves the subjective measure of the sales person, it also involves the activities and strategies of the sales person. All these points help the manager to increase the performance of the sale person (Ingram, LaForge, Schwepker, & Williams, 2015).

  • What three things you have learned, which you did not know before and will they be useful in the future?

 The three things that I have learned in this course about the sales management that I did not know before is the cost analysis, sales analysis, and profitability analysis to determine the productivity of the sales organization.  From the sales manager point of view, this information is important to know as this information involves different methods regarding analyze, determine and increase the performance of the organization as well as to increase the customer satisfaction etc. For the future, this information is helpful because it will help to determine the actual performance of the sales of products, and will help to know the satisfaction level of the people towards the products.

  • As a mean of self-evaluation, please give yourself a letter grade of what you perceive this level of participation to be

Based on the participation by me, in the discussion, material regarding the course, and material for the in-class projects etc.  I would like to grade myself A.

Reference:

Ingram, T. N., LaForge, R. W., Avila, R. A., Schwepker, C. H., & Jr., M. R. (2012). Sales Management: Analysis and Decision Making. M.E. Sharpe.

Ingram, T. N., LaForge, R. W., Schwepker, C. H., & Williams, M. R. (2015). Sales Management: Analysis and Decision Making. Routledge.

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Company visit and reflection

Company visit and reflection

  1. JPSHealth

CompanyInformation

            The JPS is a health Company. The company is more than supplier of health care products in the region is. The company acts as community welfare and provides outreach for the public development through health services.The company is engaged in healthcare education, innovation and its availability to individuals and the communities. The health resource efficiency and conservation is the primary and important goal of the company. The company also focuses on its vision and mission statement to promote health efficiency and conservation in order to facilitate the health needs and requirement of the people and the communities in order to facilitate healthy society. The company has great contribution for the development of the community and the individuals.

OperationalStrategy

            The operational strategy of the company is public outreach to promote health and resource disbursement.The works with the incorporation of individual effort for the purpose, the individual and community empowerment is the major goal to promote health. The health related knowledge awareness is brought in order to make sure that the individuals and the communities are in position to understand the needs and the requirement of thepatients and the health issues of individuals. Moreover, it is important that how to become self-sufficient, with less reliance on the government-funded sources for health purpose.Hence, this is the operational strategy of the company to work on health efficiency and conservation in order to bring cheap sources of health care in the community and public.

Value Chain

            Value chain is based upon two major areas of firm infrastructure and primary activities. The firm infrastructure includes human resource management, health care technology development and procurement. Similarly, the procurement component include inbound logistic, operations, outbound logistic, marketing and sales and services. The value chain of the company is majorly based on the human resource management and the utilization of human resource is done in order to archive value creation in the actions and the activities of the company. Human resource is utilized to bring community outreach and participation in order to achieve health conversation and efficiency.

Product

            The company is engaged in the in delivery of health care products and services with volunteer and non-volunteer efforts. The organizations has developed and provided health care resources and servicesin modal schools, academies and initiated health care camps for summer. Moreover, partnerships with both private and public sectors are initiated in order to make sure that the company is delivering its health care products and the services.  Environmental sustainability is also the key concern of the organizations and the efforts are being made to accomplish its task affectively. Childcare and miscellaneous developmental activities are also done in order to make sure that the JPS are achieving its intended purposes to promote health and health care facilities.

Process

            The organizational process is majorly based on the internal teams of the doctors and the medical faculty.The volunteers Also participate and the volunteers of the organization serve the communities and the individual in order to provide solution for energy conversion and efficiency. The volunteer and the regular work force give time and their capabilities in order to make sure that the services are delivering to the needy people. Therefore, major services are delivering to the people in order to make sure that services are given by the volunteer and the regular work force. The major processing line of the organization is based on the volunteer and the regular work force. These people are very committed and eager to work for the betterment of the communities and the societies. Therefore, their level of commitments also reflect form their work and they work hard in order to make sure that good quality health services are delivered and all  performance standards are met. Therefore, their performance standards are quite important and affective in order to provide best possible delivery in the delivery of the intended services to their clients.

Layout

            The layout of the organization is majorly based on the functional structure of the organization. The work is done with functional level. There are different functional levels in the organizations that include clinic, operational, finances, human resources and volunteers. Therefore, the functional level approach is used in order to make sure that the work is done in an appropriate manner. This is important for the patients and the employees as well. The functional lay out is best suited for the organization and its operations. Therefore, the basic lay put of the company is functional.

Supply Chain

            The supply chain of the company is majorly based on the provision of the funding and necessary equipment that is required in order to get the work done in health care realm. The major emphasis is given to the integration of the supply chain. The integration of supply chain is an important factor that is essential for the uninterrupted supply of health care products. These that are required in order to make sure that the supply chain is well integrated and all goods and the required material are provided in order to deliver best practices in the realm of organizations functions that are necessary for the organizations and the public health practices.

            The necessary equipment related to the maintenance, the health care products are acquired, and the other supplies are obtained in order to make volunteer efforts affective. The supply chain of the company is strong and the company makes every effort to integrate all the activities in the supply chain. Lack of integration of the supply chain activities results in the interrupted processes in the supply chain, therefore, the companies pay complete attention in that regard.

  1. The Capital Grille

CompanyInformation

            The Capital Grille is chain of restaurants in US. The company is engaged in the development of steaks. It has 51 numbers of locations. The brand has diverse locations in different states in the region. The steaks are liked by the clients. High quality meat is used in the development of the steaks and the other eatables things are served. These include beverages and sandwiches. This is the major line of the products for the company and it is important to note that the products of the company are noted for its quality and health factor.

OperationalStrategy

            The operational strategy of the company is customer driven strategy. The company focuses on the customer and their specific needs and the wants. Therefore, the operational efficacy of the company is achieved by the customer driven strategy. For that purpose, the quality and innovation is the major factor. The company exclusively focuses on the meat quality and the overall quality of the steaks. Therefore, large number of customer entices and prefers to eat the steak from the Capital Grille. The products are high quality and it is famous in the regions where the company provides services in an adequate manner.

            The customer needs and the wants are given first priority. The survey is conducted in order to assess their taste and other things that are needed in the dishes. This is an important in the making of the dishes. The customer consciousness is an important factor in that realm. The company has also realized that need and act in accordance with the needs and wants of the customers. The company has already done expansion and now it is focusing on the operational excellence of the products and the services.

Value Chain

            Value chain of the organizations is based upon two major areas. These areas of the firm include infrastructure and primary activities. The components of the firm infrastructure include human resource management, technology development and procurement. Moreover, similarly, the procurement component include inbound logistic, operations, outbound logistic, marketing and sales and services. The value chain of the company is majorly dependent on the procurement process. The company acquires high quality products from the market and use in the development of the steaks. The raw material is acquired in bulk and used in the steak production.

Product

            The major products of the company are steak. The steaks are developed for the dining. The streaks are developed with fresh and high quality meats. The meat is acquired from different locations and collected in order to grill and prepare the meat. The high quality meat is used and the steaks are prepared in order to make sure that the quality of the steaks is up to the standards. Besides the steak, beverages and the related products are also served. Hence, this major product line is served by the company in order to run their business.

            The steaks are famous products that are liked by large number of people and it is available in the restaurants and the shops. However, the company focuses on the development of high quality steaks that are different from the ordinary steaks that are available in the shops and the restaurants. The steaks provided by the company are enriched with the large number of ingredients and people love the taste and the quality of the steaks produced by the company.

Process

            The major process used in the making of grill includes the acquisition of the fresh meat from the market and grilling to make the steal dishes. The processes of the firm are highly innovative and technologically advanced. High-end grilling technology is used in order to make sure that the steaks are made up to the quality standards. The internal management and the employees jointly participate in the process and make sure that good quality steaks are developed in order to make the steaks.

            It is important for the company that it maintains the quality of the steaks and develops according to the customer expectations.The processing is an important function of the company. These are the processes and the operations of the company that converts input into out puts. Therefore, the company pays exclusive focus on the development of the agile and affective processes of the organization to make steaks. The hotel processes are used in order to make sure that all steaks are made with taste and nutrition.

Layout

            The lay out and the assembly line of the grilling is simple yet innovative. The meat is acquired from the market and placed in the grilling chamber. The grilling chamber is responsible for the grilling of the meat that is to be served for the customers. The assembly line equipment is latest and innovative processes are used in that regard. Therefore, the layout of the company is innovative and serves the intended purpose that is to provide high quality steaks to the customers in order to make them satisfied and pleasant.

            The assembly line of the restaurant is comprised of different chambers. These chambers are used to make the steaks. There are different chambers and every chamber is designed to contribute in the making of the steaks. The spices are stored in one chamber and the processed meats are in other. Similarly, there are chamber that grill the steaks. All these chambers are essential to make the steaks. The steaks in the raw form went form on chamber to another.

            During that period, the meat is processed and it is ready to use. The spices are applied and the grilling process is done. Once the steak is made, it is inspected by the testing department.  The quality of the steak is important in order to make sure that the steaks are developed according to the intended quality and the benchmarks. The quality control department plays an important role in that regard. The department tests the quality of the steaks and approved for selling.

Supply Chain

            The supply chain is majorly based on the acquisition of the meat form the different retailers in the market, the retailers are and the distributors contact with the company and fulfill its demand of meat. The high quality meat is acquired for the production of the grill. The supply chain of the company is highly integrated and it is make sure that the all elements in the supply chain are cooperating with each other. The disintegration of the supply chain could be harmful for the company. Therefore, extreme attention is given on that level to avoid disintegration in that regard. 

            The role of the distributers and market retailers is important in that regard. The retailers and the distributers are responsible for delivering fresh meat to different restaurants. The supply chain players are important for the company to make integration with them. The integrative process and the collaboration are important for the retailers and the distributers with the company. Otherwise lag time and missing inventories occur in the store department of the restaurant.

Comparison

            Both companies are different with each other in terms of the nature of the business and the operations and the processes. In the following assignment, different aspects of the business that include company Information, operational Strategy, value Chain, product, process, layout, supply chain and their comparison. These are the important aspects were compared and provide useful information and insight regarding both of the companies. The JPS is health care service company. The works with the incorporation of individual effort for the purpose, the individual and community empowerment is the major goal.

            The value chain of the company is majorly based on the human resource management and the utilization of human resource is done in order to archive value creation in the actions and the activities of the company. The company is engaged in the in cash and services delivery with volunteer efforts. The volunteers and regular people give time and their capabilities in order to make sure that the services are delivering to the needy people.The layout of the organization is majorly based on the functional structure of the organization.On contrary, the second company is Steak grill. This company is engaged in the making of steaks that is an eatable products. The products is consumed and used by large number of people across the world. The company is also engaged in the making of delicious and healthy steaks for the customers.

            The company acquires high quality products from the market and use in the development of the steaks. The major products of the company are steak. The major process used in the making of grill includes the acquisition of the fresh meat from the market and grilling to make the steal dishes. The supply chain is majorly based on the acquisition of the meat form the different retailers in the market, the retailers are and the distributors contact with the company and fulfill its demand of meat.

            Therefore, both companies differ with respect to the operations and the processes. One company is non-profit and the other is for profit. One company is engaged in the delivery of services in the health care sector and the other is engaged in the food. Therefore, it can be said that the both companies are different in terms of their nature of work and the organizations processes and the operations. Both companies are working affectively, pursuing their goals, and achieving their strategic objectives.

Summary

            The present assignment is personal reflection on the two company visits and their reflection. The two companies are JPShealthand the Capital Grille. The JPShealthis Service Company. The company is more than supplier of health care in theregion is. The company is engaged in health care education, innovation and its availability to individuals and the communities. The operational strategy of the company is public outreach. The second company is Capital Grille.

            The Capital Grille is chain of restaurants in US. The company is engaged in the development of steaks. The operational strategy of the company is customer driven strategy. The company focuses on the customer and their specific needs and the wants. The value chain of the company is majorly dependent on the procurement process. Therefore, the both companies differ with each other. The nature and the processes of the both companies are entirely different with each other.

            The supply chain of the company is majorly based on the provision of the funding and necessary equipment that is required in order to get the work done. The lay out and the assembly line of the grilling is simple yet innovative. The meat is acquired from the market and placed in the grilling chamber. Both organizations differ with their operations and processes. One company is services company and the other is commercial and for profit motive.

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Use of Six-sigma to reduce the medical error

Introduction

In chapter 12, there are five different techniques that managers can use them to find the problems and the causes to improve the quality of the organization, which are Quality control, total quality management, continuous quality improvement, reengineering and Six Sigma. However, for me as administrative of hospital, I am going to use six sigma techniques to reduce the medical errors at the hospital. This is effective and lucrative techniques, which can help us to identify different problems and let us propose different solutions regarding medical errors.

Use of Six-sigma to reduce the medical error

Health care is a very sensitive profession as in this field a little delay in the treatment or provision of the health care could resulted in great complicacies. Delay in providing health care service increase the cost of the health care service as well as it resulted as great stress and pain for the patient. Considering this aspect, in the following writing the purpose is to evaluate the effectiveness of six sigma technique in providing and enhancing the health care provision of health care services in hospital.

In an article named “Using Six Sigma Methodology to Reduce Patient Transfer Times from Floor to Critical-Care Beds” the writer has evaluated the effectiveness of six sigma by using the six sigma process to correct issues related to the transfer delays . For the evaluation the writer conducted a research in which he observed 714 bed tertiary care hospital. On the base of the result it was founded by the writers that with the six-sigma, eight key steps were identified in the transfer of patients from general medical floors to critical care areas. (Ozcan, 2009)

The problem solving six-sigma method resulted as around 60% reduction in the transfer time from general medical floor to the Intensive care units (ICU). Therefore, it is found that Six Sigma is an effective method to improve the quality in heath related project especially in the management of complex projects. (Esmat Gheysari & Mojdeh4, 2016)

Four Techniques

Technique 1

In another article, “Analyzing the Waiting Time Pattern For Non-Critical Patients in the Emergency Department Using Six Sigma Approach” the writers has organized a research to examine the time of non-critical patients in Emergency Department through the six sigma approach. The data was collected from the university KEBANGSAAN Malaysia Medical Centre in 2009. In the analyses stage the cause and effect diagram was used to identify the causes of the problems. (Noriza Majida & Sabri, 2013)

Technique 2

 On the base of the research it is found that waiting time is critical for the quality of health care and the Six-sigma is an effective approach to reduce the waiting time for the patient and so it is concluded that six-sigma is effective to manage the health care by improving the quality of health care. (tephan J. Silich & Nidal Abi Rafeh, 2012)

Technique 3

In another study named as “Effect of six sigma program on the number of surgeries cancellation” the writer has organized a study in which they have addressed the effectiveness of six-sigma technique to improve the quality of health care services. The researchers have organized this study by realizing that fact that cancelation of surgeries result are critical as it increase the cost of the treatment as well as it resulted in increased pain and stress for the patient. (Noriza Majida & Sabri, 2013)

Technique 4

In this evaluation, the researchers observed 850 cases through the six-sigma program and compared these cases with the 850 routine care programs. The cancelation of the health care cases was daily recorded and the reason behind the cancellation was also investigated. Following this the six-sigma program was implemented on the base of the reason and accordingly the necessary steps were taken to encounter the surgeries cancellation through six-sigma program. On the base of the research it was found that three categories including the patient, hospital system and physician were the main causes. In the ENT there was highest cancelation of surgeries which was around 74.19%. However, it was found that in orology surgeries there was no cancellation. Significant improve was observed with the implementation of six-sigma program as the cancellation rate was decreased from 3.6% to 1.4% cases. (Tephan J. Silich & Nidal Abi Rafeh, 2012)

On base of the aforementioned research studies and their resulted, it is concluded that quality has great important in health care and six-sigma is found as an effective way to improve the quality of health care services provision.

References

Bibliography

Esmat Gheysari, H. Y., & Mojdeh4, S. (2016). Effect of six sigma program on the number of surgeries cancellation. Iranian Journal of Nursing Midwifery Research, 191-196.

Noriza Majida, N. R., & Sabri, S. A. (2013). Analyzing the Waiting Time Pattern For Non-Critical Patients in the Emergency Department Using Six Sigma Approach. National Symposeum on Mathematical Science, 1492-1498.

Ozcan, Y. A. (2009). Quantitative methods in health care management. Jossey-Bass.

Tephan J. Silich, R. V., & Rafeh, N. A. (2012). Using Six Sigma Methodology to Reduce Patient Transfer Times from Floor to Critical-Care Beds. Journal for Healthcare Quality, 44-55.

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portfolio level

  • Smaller FI’s tend to lend money or buy debt instruments from consumers and/or businesses for which public source information is not readily available. Discuss ways in which these FI’s can manage credit risk at the individual loan/bond level and at the portfolio level.

Instead of looking for no credit risk, FI’s should accept loans with manageable credit risk. The can follow different ways to manage the credit risk at the individual loan/bond level and at the portfolio level that is given below;

FI’s need to structure the loans so that they can lessen risk, on looking at the structuring the loan, they can find out ability where they can modify the loan if the credit risk of the borrowers, during the life of the loan changed. Moreover, they can perform risk-based pricing but this method can be perceived as discrimination.

  • Explain the following statements: A) Convexity limits the usefulness of immunization solutions. B) Asset/liability managers will prefer that assets be more convex than liabilities. 

Convexity limits the usefulness of immunization:

Convexity is known as change in duration that occurs with the result of the change in Yield to maturity. If there is a large change in convexity then there is a large change in duration. Convexity occurs on long maturity bonds, low coupon bond, low yield to maturity bonds. On the other hand, immunization immunizes the interest rate risk and reinvestment risk.

As the convexity increases the duration of yield to maturity that consequently increases the interest rate risk and reinvestment risk increase so it limits the usefulness of immunization (Nielson & Consiglio, 2010)

Asset/liability managers will prefer that assets be more convex than liabilities

Asset/liability managers will prefer that assets be more convex than liabilities that mean, if the asset curve is more convex then there will be high-risk involvement. Moreover, it also shows the equity (financetrainingcourse, 2015)..

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  • What is a bank run? Why are banks vulnerable to them? What are the tools available to banks to prevent extreme damage resulting from a bank run? Bank runs illustrate which type of financial risk most strongly (interest rate, credit, sovereign, market, liquidity, currency, operational) 

Banks run can cause a real damage; it is the extreme level of crises that can face by the banks, in bank run situation the people or depositors are afraid and rush to withdraw their cash from the banks as they are afraid that bank will fail, or goes in a loss. In the bank run situation, the banks production can be reduced and banks can lead to demand for liquidity, it can cause a long economic recession. It could be the reason in loss of stakeholders, the customer will be lost, as they do not trust the banks, and the bank would be unable to strive in the market.

There are several techniques, which can prevent the banks runs, there could be the temporary suspension of the withdrawals, and the central banks need to act as a lender, of the last resort, like a central bank, can increase the supply of the liquidity. The financial crises or panics could also be preventive if there is the protection of the deposit insurance system, the U.S federal deposit insurance cooperation, could be helpful in this way. Government bank regulations can also use the techniques that can motivate the depositors to trust the bank during the bank reorganizations.

Bank liquidity is a most expected risk during the bank runs, as bank liquidity can affect the bank to face the crises for several years. There could be challenges and complexities in managing the functions of liquidity and liquidity crises can be promoted (Krugman & Wells, 2012).

  • Describe the CAMELS rating system for US banks. Be sure to highlight the rating scale and each of the components. US regulations are often believed to view management and capital to be substituted for each other (within certain limits). Why could this be a reasonable idea?

CAMELS rating system is a supervisory rating system. This system was introduced by the U.S. to classify overall condition of the bank. Every bank including credit Unions must use this rating system. Various banking regulators outside the U.S also used this rating system for classifying overall condition of the bank. Components of the bank condition involve Capital adequacy, assets, management capability, earnings, liquidity (liability and asset management) and sensitivity (that includes the interest rate risk and market rate risk).

            CAMELS involve 1 to 5 rating scale in which 1 is considered as the strongest and 5 is considered as the lowest. Banks who are considered at 1 rate scale then they are more stable and the banks who are considered at the 2 or 3 rating scale then they are working or performing at the average level but the bank who are rated at the 4 or 5 level than they are considered as working below average or have poor condition. Rate 1 is considered as strong that tells that the bank is performing above the average. Rate 2 is considered as the satisfactory that is a bank is performing at the average level. Rate 3 is considered as the fair that is the performance of the bank is flawed to some degree. Rate 4 is considered as marginal that is the performance of the bank is below average. The rate 5 is considered as unsatisfactory that is the performance of the bank is poor and need to action to improve the performance. CAMELS rating components have rates that are; capital adequacy has 20%, asset quality has 20%, management has 25%, earnings have 15%, liquidity has 10%, and sensitivity has 10% weights (Sarlin, 2014).

            US regulations are often believed to view management and capital to be substituted for each other because both terms are used to find out the performance of the bank. Capital describes the performance of the bank in quantitative terms on the other hand management describes the performance of the bank in qualitative terms that is on providing the capital, how many branches a bank becomes able to open.

  • Given the following risk weightings for bank asset categories:

Government Securities -0%

Government Agency Securities- 25%

Residential Mortgages- 50%

Small Business Loans- 100%

Consumer Loans-100%

And the requirement that banks maintain 5% leverage capital and 10% risk-based capital in order to be considered well capitalized. Calculate the minimum amount of capital needed by a bank holding $20 million in each of the five asset categories described above. Show your work.

5% of 20 million = 1 million and 10% of 20 million = 2 million

Government Securities = 0% x 1 million = 0

Government Agency Securities= 25% x 1 million = 0.25 million

Residential Mortgages = 50% x 2 million = 1 million

Small Business Loans =100% x 2 million = 2 million

Consumer Loans= 100% x 2 million = 2 million

Now Minimum capital amount that the bank has is equal to the 0 + 0.25 million +1 million + 2 million + 2 million = 5.25 million.

  1. Discuss the dilemma of “too big to fail” financial institution. Congress asserted that Dodd-Frank solved the problem. Is that true? Explain.

“Too big to fail” is the term that describes that there are certain firms, corporations, and financial institutions are so interconnected with each other that it will lead to the failure and this failure would be disastrous to the greater economic system. Congress asserted that Dodd-Frank solved the problem that is true. According to the act, the bank holding companies and big banks who have assets of $50 billion or more, will fail without leading to severe negative influence on other working firms. According to act i.e., consumer protection act by Dodd-Frank, the firms who are big or have more than $50 billion assets will face the burden of new regulations, stringent for the liquidity and capital and capital charges that increase the cost of being big (globalbanking, 2012).

  1. React to the following statement: Severe instances of interest rate, credit, and Sovereign risk often result in large declines in the market value of assets (Market risk)

Severe instances of interest rate are lenders, borrowers, a lender takes the risks, and given money to borrowers; borrowers may not pay back the loan. There are risks of inflation; the purchasing power of original money can be reduced in the future, supply and demand can also increase the factors that affect the interest rate. The rise of demand for credit will raise the interest rate. Inflation rate can also affect the interest rate badly, the higher the inflation is, and the higher the inflation rate will be, one may have to leave the market, or have to suffer a lot or have to face failure or losses due to the interest rates. Government and types of loans are also severe instances of interest rate. The instances or sovereign risks concern the investors, lenders, financial market and the financial regulators (bis.org, 2011 ).

  1. Discuss the most common statistics used to measure market risk. Identify them describe how they are constructed and discuss the weaknesses of them.

Risks factors affect the managers to take decisions, so there is a need to evaluate or measure the risk factors, preliminary data analysis, can be helpful in accessing the risk factors, there could be an assessment of short-term and long-term, interest rates. However, the obtained figures regarding the data may not be accurate. Value at risk is also widely used risk measurement, it can measure the future losses, this can be misunderstood the values and it can fail to predict model. Component analysis of effective dimensionally data, the spot interest or exchange rate, the stock market index could also be evaluated, study also be done at combination of stock market index, there could be positive or negative results obtained, shortfall, volatility, comforts are also the tools to measure the risk factors, they are constructed to evaluates the investment financials. However, there are chances to take the poor decisions. There could be technical issues in measuring all the dimensions of the market, which could be weaknesses of the models (Choudhry, 2011).

Reference:

Bis.org. (2011 , july ). The impact of sovereign credit. Retrieved may 9, 2016, from bis.org: http://www.bis.org/publ/cgfs43.pdf

Choudhry, m. (2011). Fixed income markets: instruments, applications, mathematics. John wiley & sons.

Financetrainingcourse. (2015, july 4,). Interest rate risk: convexity. Retrieved may 9, 2016, from financetrainingcourse.com: https://financetrainingcourse.com/education/2010/12/interest-rate-risk-convexity/

Globalbanking. (2012, march ). Just how big is the too big to fail problem? Retrieved may 9, 2016, from globalbanking.org: http://www.globalbanking.org/reports/too-big-to-fail.pdf

Krugman, p., & wells, r. (2012). Coursesmart e-book for economics: a pdf-style e-book. Palgrave macmillan.

Nielson, s. S., & consiglio, a. (2010). Practical financial optimization: a library of gams models. John wiley & sons.

Sarlin, p. (2014). Mapping financial stability. Springer science & business media.

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Lowell Mills

THE DISCUSSION PART:

The question was:

In what ways did working in the Lowell Mills shape a young woman’s self-image, world paradigm, and redefine her place in the society?  Consider the following questions as you respond:

  • The work environment in the Mills
  • The way women viewed their purpose and future
  • How working in the Mills may have impacted other areas of the women’s lives.

Your answer:

During the 19th and 20th century, the Lowell Mills, which is referred to the many mills, was operated in the city Lowell. It was the factory invented by the Francis Cabot Lowell, where the machines and the people can work under the one roof. The workforce of these factories was more than 75% of females. In the mills, there were textile processes, like spinning, weaving etc (Gilderlehrman, 2016).

By 1840, there were 8,000 textile workers, the girls were known as the mill girls, for many mill girls, employment was a source of freedom, they were free from the parental authority, and however, in the factories there were harsh working conditions and long working hours. There were injustice with the girls; girls were paid lower wages because mostly girls were from poor backgrounds.

  1. The way women viewed their purpose and future

They think about the next generations, the women realized that they were given lower wages, they see their future of next generations darker, when new factories offer them good wages, they realized that the mills girls were not getting the proper rights, then they did strikes, so they should also given the equal or fair wages. They strike for the dignity of women, to enslave them; they will not be a slave anymore and they want liberty.

  1. How working in the Mills may have impacted other areas of the women’s lives

The women were empowered, many people at that time believed that women should not leave their homes, many of women were restricted to were full dresses and were not allowed to get education or do jobs, however, working in mills changed the stereotyping of the society, the women were given the equal rights as men. The status and importance of women realized in the society, many other factories came into being and based on fairness, women wages and working hours were decided.

Reference:

Gilderlehrman. (2016). Lowell Mill Girls and the factory system, 1840. Retrieved May 4, 2016, from https://www.gilderlehrman.org/history-by-era/age-jackson/resources/lowell-mill-girls-and-factory-system-1840

Q1: check out these photos from Ipswhich Mills.  While these are later than the 1840s, it gives you a good sense of what a textile mill was like:

In these photos, we can see overall structure, cultre, and working environment of different departments. There are different departments such as finishing, looping, spinning room. It was before 1929, as different workers can be seen working in different departments. This has been observed that there were a good number of workers including males and females in this mill. However, the environment seems traditional, as we cannot see any safety measures. In addition, we can see different workers gathering at the same place and working with each other. One good point that we can observed that communication process was good among departments, as these departments were attached with each other.

http://ocp.hul.harvard.edu/ww/vcsearch.php?any=ipswich+mills

Q2: What was the National Women’s Trade Union League?  (see this site for info:  http://ocp.hul.harvard.edu/ww/nwtul.html)  How did it help working class women? 

The national women’s trade union league was formed in 1903 in order to appreciate women’s role at workplace and eliminate the sweatshop. In different textile mills and other workplaces, this has been revealed that working condition was not up to the mark. In addition, workplace was not safe for working women, as different incidents were happening regarding women rights and injustice. Interestingly, this league was quite successful because civil society was involved strengthening women at workplace. The main intention of this league was to compel different organizations to improve working conditions for women and appreciate their efforts through perfect allocation of women’s rights.

The question:

This is an exercise in examining socio-centric and ethical reasoning.  

Do the following:

  • Reflect on your mindset and a cultural belief that is a central tenet of your life.
  • Explore the benefits and challenges of egocentric thinking.
  • Identify the logic used to make the claims presented in the scholarly article.
  • Develop a logical argument with causal explanations or hypotheses, which can square egocentric thinking and cultural and religious, social or political beliefs with logic and reason.  Cite your source as evidence.
  • Be sure to adhere to the CSU-Global Guide to Writing and APA Requirements.
  • You are required to respond to at least two other classmates’ postings. Make sure to back up your replies and feedback to classmates’ initial postings with facts and insights informed by critical thinking skills.
  • Remember that critical thinking is not just your opinion; rather, it is a claim that provides evidence that helps you prove an argument.

Discussion question responses should be at least 200-300 words.

All learners should be prepared to critique the postings from at least two fellow students, but be sure to back up your thoughts and feedback with concrete facts and insights based on research. You may also want to cite other examples to support your position.

Include at least 1-2 scholarly sources that are not required or recommended readings for this course. The CSU-Global Library is a good place to find these sources.

Format your discussion, including all in-text citations and references, according to the CSU-Global Guide to Writing and APA Requirements .

Be sure to reach out to your instructor if you have questions about the assignment.

Your answer:

  1. In my point of view, it is a social reality, people are following patterns of cognitive bias and it is becoming a cultural belief, people are rational in judgment, they just think about the society before they do anything, our behaviors are associated with the biasness and for the sake of social world. The society is adopting such cognitive behaviors; I think such behaviors are important for survival in society as quick decisions can come out.
  2. The person, who is egocentric can never get satisfaction in life, as he/she except more from the people, and he want people to admire him always, due to egocentric he can never admire other, as he want to see himself a centre of attraction. The egocentric people can be a successful businessmen, Politian’s or lawyers as they are egocentric thinkers.
  3. In the song, the singer is admitting that the society is going in a wrong way, the behaviors are adopted by the society because the people admire this thinking, the one who is not believe on cognitive bias can face difficulties in society (Youtube, 2009).
  4. Egocentric people have their own thinking’s and beliefs, the norms and values are significantly shaped by the people of the society, everybody is deprived of the social norms and beliefs, egocentric thinking could be a barrier in one success, as they have their own cultural and religious beliefs, society and politics is also not favorable for them (Palomar, 2016).

References:

Palomar. (2016). Blocks to Critical Thinking. Retrieved may 4, 2016, from http://www2.palomar.edu/users/cthomson/Thomsons120/Blocks%20to%20Critical%20Thinking.htm

Youtube. (2009, Dec 22). Cognitive Bias VideoSong. Retrieved May 4, 2016, from https://www.youtube.com/watch?v=3RsbmjNLQkc

Q1: Given your comments, how might you deal with — people that might work for you from different cultures having different values and ethical standards?  

The training and development is a good initiative for workers from different cylotures. The main idea is to make them pertinent towards organizational mission, vision and strategy.

Suppose you were the manager of a large international group of medical employees some from Asia, others from the Middle East and yet others from South America.  How would you deal with potential diverse cultural views, values and ethics in a situation like this?  Their values and ethics could be in conflict with yours in some cases, how would you manage these potential conflicts?  Thoughts?

Effective work division according to skills, abilities, qualification and experience will help me to reduce conflicts at workplace. In addition, training and development an also reduce conflicts and motivate workers to achieve organizational goals at the same place.

Q2: Their egocentric way of thinking is close minded and definately not a fairminded thinker at all.  However, how do we get through to these people what they aredoing?  I’m not sure they care because if you do point it out, most, will not think they have an issue at all

This is a fact that egocentric thinking can restrain workers to work with creativity. I would like to get through flexibility in environment and effective communication process to let the employees work with their own ideas. It can increase productivity and creativeness at workplace.

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Woolworths Limited

Woolworths Limited

Question 1: With reference to the above statement describes what you understand by the concept of materiality and provide examples from your selected annual report. (450)

Materiality is the information that has been misstated or there is a omission in the report or the financial statements and due to that omission some big changes can occur. The economic decisions can be influenced by these misstatements. It states the balance and the errors that is in the financial statements. There are some big amounts that need to be stated correctly in order to be well but companies most of the time hide that due to their own benefits, and what happens at the end is that the people invests in the business (Accounting-simplified.com, 2016). However, by the end of the day they come to know that they have been chose the wrong company and faced loses.

If the company faces some big loses or anything, which is negative about the company, they hide or they make the value less to attract the customers and obviously the company is not up to the mark and that is the reason they could face big loses. These types of transactions mostly come in the concept of materiality because they are making big changes in the company and that needs to be fixed up.

However, if we look in to the annual report of the company and here we could find couple of materiality in the reports that have been mentioned. We can see that there are many issues highlighted which are based upon financial impacts, societal norm, stakeholder’s behavior, policy related performance and business peer norms. We can see that there are many problems regarding broad range of external stakeholders, which are customers, consumers, government, suppliers, investors, employees etc (Woolworthslimited, 2016).  

If we look at the example then CEO must be replaced, as we know there are couples of problems in the company. The status Quo is been maintained which needs to be eliminated and due to that the company can get heavy losses. The company is getting weaker and weaker we can see in the financials that the profits are not too much as they have also declined. Further, the tough competition is in the market. The company operations are been shaken and this thing needs to be fixed in order to be sustained.

There should be no conflicts in between the shareholders and the management and that needs to be fixed so that the operations would run smoothly. We can also see that the share price of the company also got down in the year 2015 which we can see that is 9.8%.  We need to look deeply on the annual statements so that there would be no misstatements given and there would be no overlapping of the AASB standards in the statements as need to be observed very keenly.      

Question 3: Evaluate the issues of materiality in your selected annual report in the context of AASB / IASB standards and framework. (550)

We can see that there are many issues in the 2015 report and first we will discuss some of the major points, which have been analyzed. We can see that sustainability materiality issues are Supplier relationships, communication and collaboration. Employee conditions, wellbeing and communications, End to end reduction of waste (incl. packaging), Labor rights in the supply chain, Low price and value for money model, environmentally responsible sourcing, Energy and emissions, Understanding and responding to customer needs, Product quality, safety, availability and range, Partners in the community. These are all the issues that have been discussed in the report.

If we talk about the AASB then their role is to give the framework and the guidelines so that there would be one standard overall and everyone could follow these standards (IASB, 2014). Which we have seen in the statement s shows that there are many problems in the company and the reports, which needs to be fixed. The use of AASB standards need to be reviewed and needs to be implemented as good as possible so that there would be no problems in the near future.

It needs to be review that there are many changes in the company if we look at the annual statements of 2015. If we look at the profit after tax then we can see that 12.5% have been decreased in the share. That is a huge loss for the company and that needs to be fixed up. If we look on the other parts, there is not enough change but there is a problem, which prevails in the report. Something is there that have not been shown in it and there is something which is opened. The AASB standards are not been meet in the annual report and that is the point which is the wrong thing.

   If we look at the group sales then the overall we can see that there is a loss of 0.2% if we compare that to the last year (Woolworthslimited, 2015). We can see in the financials that the fuel sales were reduced a lot and that is the point, which makes the completely big difference in the statements. We can also see that the company have an alliance with the Caltex in this year and that is the reason there is too much fluctuation seen in the company’s annual reports.

The standards of the AASB do not allow any kind of changes in the statements while you need to state all the changes that have been done in the annual report on the statements. There are different criteria’s which tells that there must not be any kind of misstatement and another suspicious data in the statement. Everything needs to be stated correctly in the right form so that the issues of materiality should be looked and no problems could be seen in it. We can further see that the administration expense is more in this year, which needs to be controlled and may b that is the part, which is shown in the increased amount. Further, if we look at the income tax expense we come to know that it is less as we compare to the last year and that need to be subtracted from the PBIT.

At the end, if we conclude then we would say that there are couples of misstatements that have been discussed in the above paragraphs and that needs to be fixed. Moreover, we can see that AASB have given the standards and that needs to be focused.

References

Accounting-simplified.com. (2016). Materiality. Retrieved May 09, 2016, from http://accounting-simplified.com/financial-accounting/accounting-concepts-and-principles/accounting-materiality.html

IASB. (2014). A Review of the Conceptual Framework for Financial Reporting. Retrieved May 9, 2016, from http://www.ifrs.org/current-projects/iasb-projects/conceptual-framework/discussion-paper-july-2013/documents/discussion-paper-conceptual-framework-july-2013.pdf

Woolworthslimited. (2015). Annual report of Woolworthslimited.

Woolworthslimited. (2016). Corporate Responsibility Governance. Retrieved May 09, 2016, from http://woolworthslimited2015.csr-report.com.au/governance.html

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Describe the principles of both Lean and Six Sigma and the history that brought them together

Questions and Answers

  1. Describe the principles of both Lean and Six Sigma and the history that brought them together.  Provide an example of how you would apply Lean Six Sigma principles to make a Job/Department in a company more efficient.<maybe slide 9>

The Six sigma is helpful in the organization means to be quality to the strive the near perfection. The six sigma is the data-driven approach and methodology eliminating the data-driven approach. It is the six deviation between the mean and nearest specification limit in the manufacturing transactional process from product to service. The statistical approach has described the process of qualitative approach and working the way out. The six-sigma approach to be achieved is the process must not produce the 3.4 defects per million opportunities. The six segments are defined outside customer specification. The six sigma is total quantity of chances of the defect.

The process of six sigma is calculated by the calculator. The objective of the six sigma methodology is the implementation of a measurement-based strategy which focuses on the process of improvement and variation reduction through the applications of six sigma improvement project. The concept of the normal curve was introduced by Carl Friedrich. The concept of six sigma could be traced in the form of the year 1920s, it was three sigma. The Motorola was coined the six sigma by Bill smith. In the 1980s, the Motorola chairman used the six sigma for the defect opportunity. They wanted to measure the defects per million.

The example of the  drugs which is to be the setup in the form of the prescription per year. The evaluation of the drugs would be the form of the work which is the formation of the making the work to be done. The defect of million per opportunity is given and will be defined. The number at six sigma is 99.9997%. which will be dealt in the form of the work done?  The other example is the nurses accidently fallen new born children. The percent of the number at six sigma is 99.9997 % also. The defect which needs to be evaluated in the form of the work to be done.  The business is employing the strategy, which is helpful in the work. The Six sigma technique is helpful in the finance, administration and customer service. The job of finance is the six sigma valued in the stance. It is also helpful in sales

            The practices are the Lead generation, sales proposal process, sales forecasting , new product launch, sales force efficiency and effectiveness, a voice of the customer. These six groups will be roughly into the categories. The category would consist of the four projects. The job criteria would be founding the ways for the six sigma and would be dealt in the project and will be defining the six sigma. The jobs of the six sigma, which would be are developing the scenario, are in the form of the work to be done. Defining the work to be noted in the form of the work to be initiated and noted. The six sigma is dwelling the work to be done in the form of the six sigma. It is the reasoning of the checking the difference between the opportunities which would be defining the work done to be imaged. The six sigma is the defining the defective opportunities in the work done and defining the work to be. The six sigma is defining the concept of the defective of per million opportunities. The six sigma is defined as the defect per million opportunities.

  • Describe French and Raven’s “Model of Interpersonal Power” including the 5 bases of power and the types of responses that will be gained by using them.  From class, describe your “Personal Action Orientation” and “Value System” and where you fall on the “Political Style Grid.”<maybe slide 12>

            The leader is reminded for the rewarding the people and will be a renowned expert in the field. The john French and Bertram Raven studied these phenomena half century ago. How prepare are we over the power of leader we accept. The best understands the power phenomena. The five bases are of power, which is as explained further. The fist one is legitimate, which is the belief that a person has formal right to make demands and to expect others to be complaining and obedience. The next one is the reward which is the personal ability to be compensated another for the compliance.

            The next is the expert, which is based on the high level of skills and knowledge. The next is the referent respect, which is the perceived attractiveness, worthiness, and the right to others respect. The last is the coercive, which is the punishment, could be made to the others for the non-compliance. The legitimate power is the president or Leader. The elected are some mandatory poles. This type is unpredictable and unstable.

            The power can be disappeared if you lose the title and be making the scenario. The reward power is the one in which people are being rewarded. The Raises, promotion are, desirable assignments, training opportunities, which are rewards examples by the people. The coercive power is used when the punishment or threaten is to be given.  

            The expert power is the  power knowledge and skill which enable to understand a situation,  suggest a solution, use solid judgment. The referent power is the which comes from the liking and respecting the another.  The power scenario is the same as the utilized by the way it is being used.  The politics actions are to these actions.  Predict politics is in the response to the politics and the will initiate the polities in the class. The  value system around the politics would be seeing is the politics as negative, politics as the neutral or the politics point of view is a positive one. The political style grid would be the political savvy and look the scenario of the politics. The politics is the matter, which is discussed, in the political view.

             The political discussion in the class would be the phase would be either derived over the stance of the welcomed one. The politics discussion in the class would be beneficial. The politics discussed would be the point of view, which would be discussed in the terms.  The politics are which were of the politics, which are need to be discussed, and working the ways out of the scenario. 

            The politics needed to be discussed it would either be negative, neutral or positive. The politics is the point discussed in the class over the topic of many. The value system of the around politics make it either it is positive , neutral and politics is negative. The power bases is the five types and the work done is the to be understood. The bases of the five powers will be in the form of the power division and will be discussed the matter. The matter of the power base is the scenario evident in the performance of power nature. The issue is the scenario to be ruled in the making of the power scenario.  The power base will be the form of the five power bases.

  • Describe the practitioner’s model (Current/Future State Gap Analysis) discussed in class to restructure organizations.  Describe the steps you would go through using this model to restructure an organization.<maybe slide 13>

            The current GAP analysis would be understanding the structure of the business and dwell in the current structure, which is done in the form of structure making the way. the current structure of the business which would be in the form of business structure. The structure are in which the company is working. The desired business capabilities, which are of the company and will be making the situation of the work more than the competitors will do. The work needed to be done in the form to be having the competitive advantage by its desired business capabilities. The desired business capabilities achieved would be having the scenario to having the capabilities and would be learning the competitive edge making over the competitor.

            The company desired capabilities will render the most efficient scenario to be done the following the aims of eth company. The structural design of the company would be the important scenario in the main structure. The following are of the benchmark and industry trends, which would be of the form to be achieved. The standards are which would be achieved by the company. The standards set by the company to be achieved and should be made to be achieving the standards. The Gap analysis should have been conducted are in the organization and will let the work to be done. The Gap analysis would be beneficial for knowing the company analysis and would let the company grow. The analysis should be held in the company to know its performance. 

            The Gap analysis are that is measuring the actual performance with the desired performance of the company. This performance comparison is the Gap analysis, which is catered by the company. The Gap analysis would be conducted in the form of the performance checking the performance.  The next is the proposed future structure, which is, need to be check, evaluated, and worked over the scenario. The proposed structure, which is needed to be checked based on the working the capabilities.  The organization is to be conducting the proposed future structure, which will be dealing in the structure of the organization.

            The step to plan the future of the organization and would be working the environment of the company which is dealt in the form. The future of the organization should be checked as the future need to be known. The better form are of the organization future need to be known in the present to make the planning and dealing the work done in the form of checking. The restructuring the organization is involved in the structure of the company. The main concern is which would be the restructuring of the organization. The mergers and acquisition would be resulting in the duplication of efforts and over lapping the staffs. If downsizing is the scenario then the employees are cut short to make the employees with the left environment. All of the downsizers face lower return on assets. The downsizing is the form of the dealing lower return on the assets and work over the structure. The downsizing the employees, which will result in the form of the return of assets, lower.  The downsizing will result in the employee losing. The downsizing will be resulting in the loss of the employees and which a will be concern of eth employees but the company will be having the failure of lower return on assets.   

  • Describe potential environmental influences and how they can impact organizational structure.  Provide an example of an organization facing a difficult environmental challenge and how they could overcome it by structuring themselves appropriately.<maybe slide 10-11>

Organizations do business in the environment in which favorable and unfavorable forces influence them and environmental forces are so strong that every organization has to adapt to them by making changes in their structure. This essay is also about this important aspect of a business and an organization has been discussed in relation to environmental challenge it has been facing and suitable responses for that organization. McDonald’s is renowned for its cleanliness and efficient food service but recently it has been facing environmental challenges in the United States where customers’ tastes have been changing and US labor regulator has ruled that McDonald’s is liable for how its franchisees adopt business practices.

It is found that McDonald’s has been going through one of its biggest environmental challenges in its home market. Analysts and critics are of the view that the company has been slow in changing its menu. The market has been shifting in terms of preferences and tastes of consumers in the United States. Rising demand for healthier and fresher food has been so intensive that the company has to adapt according to these demands of consumers. Demand for organic food is one of the main expressions in the fast food market. One of other challenges for the company is that US labor regulatory has said that the company is liable for actions of its franchisees as well which has raised questions on the company’s franchising model (FT). These environmental challenges have pushed the company to come up with changes in its structure.

One change already occurred in its structure when it introduced changes in its leadership. Moreover, the company changed its chief executive officer, Don Thompson and appointed Steve Easterbrook. This change was in response to the change in shift in customers’ taste in the home market. On the other hand, in China, it has been facing the challenge of customers’ lack of trust due to unhealthy meat. Chinese mainland customers lost trust in McDonald’s products when it was found that meat used in the company’s food product was not of good quality. Similarly, in an Indian market, it had been facing a challenge to provide beef-free burgers and other food products. These challenges should be viewed in the context of labor regulator who made it liable for franchisees’ business as well. Thus, value chain activities in the company’s business needed urgent re-structure. The company has already changed its CEO and now it has to bring changes in its value chain activities to make its structure responsive to changes in the environment. However, there is a gap between changes made at the top level and in value chan activities only because changes should be made across the hierarchy of the company so that all members and layers in the hierarchy can be integrated to become one unit.

Challenges originated from the environment and McDonald’s present steps to respond to these challenges give a hint to the fact that environmental issues are so important for the survival of business and sustainability of its success. This indicates a need for alignment of business and the environment and if this alignment is not perfect that environmental challenges may be a threat to a company as they might become a threat for McDonald’s. the company has introduced measures to respond to these changes and some further steps have also been proposed in this essay.

  • Describe the 5 cross-cultural dimensions discovered by Hofstede and Bond.  Determine how your national culture is described by these dimensions and how you could adjust your style to approach others from a very different culture than yours.<maybe slide 9>

Hofstede and Bond have discovered five cross-cultural dimensions which can describe the culture of a nation. These dimensions include power distance, uncertainty avoidance, individualism-collectivism, masculinity and femininity, and long-term vs. short-term orientation. These five dimensions discuss the culture and it does not mean that every member of a society has these dimensions in the same way but it is sure that nobody can deviate very much from the norm of the society. In this essay, a national culture of the United States has been described through the lens of cross-cultural dimensions of the United States (Geert-hofstede).

Power distance is the dimension which states that everyone in the society is not equal and there are layers in the society in terms of abilities, capabilities, racial background, or due to any other reason. The United States has low power distance score at 40 which means there is the tendency that bosses and people in authority often consult their subordinates and employees while it may be possible that subordinates contradict with their bosses. On the other hand, the United States is at the higher place in the individualism dimension at point 91, which means that it prioritizes independence of members of the society. A person is expected to be responsible for himself and for his family and he is accustomed to working with strangers and is not expected to be engaged in friendships.

In the dimension of masculinity and femininity, the US is scored at 62 which mean that it believes in fair competition in the society and any one can take any place in the society and organizations based on his or her expertise and capabilities. The US society is “can-do” society in which people can be successful based on their hard work and ability. In the dimension of uncertainty avoidance, its score is 46 which mean that it is open to accept innovative ideas and is willing to try different things at the same time. People have the courage to change future on their own and they do not believe in luck or chance. So far as long-term and short-term dimension is concerned, the United States has low score at 26 which means that it is strongly linked with its past and traditional values. It is also evident from its approach towards abortion and increase in church going people. Moreover, businessmen make quarterly financial reports which mean that they set short-term goals.

Above scores of the United States do not affect citizens of the United States in a way to make it difficult in interacting with different cultures. Therefore, it is not necessary to be changed very much to interact with individuals of any other culture. The US citizens are individualistic and accustomed to work with strangers which would be easy for them to be adaptable. They believe in can-do mentality therefore it is not necessary for them to change themselves. It is because they believe in expertise and capabilities of individuals therefore they are open for competition. If anyone would be successful then they would accept this position and let him enjoy his position. However, it is found that US has short term culture but it is should not be interpreted in terms of corporations and national priorities which are made with ling term perspectives, NASA’s spatial missions an are example of this perspective.

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Ford Motors valuation

Different methods of valuation have used for calculating value for Ford Motors. As per dividend discount model, the value of the share of this company is 110. It is higher than the current market value of the shares. It is indicating that intrinsic value is higher than its current market value. In the future, prices would improve due to lower market value than its intrinsic value. The value of the share is also higher in growth model and as per free cash flow method. Yes, its situation is indicating that it should be bought. Its financial situation is strong and in future, earnings are expected to improve. Next growth rate for 5 years is expected 11% for this company. Its cost of debt is much lower than the cost of equity. The cost of equity is 11% on the other hand; the cost of debt is 0.57%.

    Current market value of its share is $13. (Finance.yahoo.com, 2016)It is lower than calculated value of the firm stocks in every model. It can be concluded that this stock is undervalued. Ford Motors is also bale to acquire other companies due to its strong revenue position and net worth. It can acquire any other company based on its cash flow situation and other activities. The value of its total assets for 2015 is $ 224,925,000.  Acquisition strategy for Ford Motors should be based on its existing strategies. Acquisition strategy for Ford Motors is based on diversification. Ford Motors is acquiring other companies to diversify its portfolio and improve the satisfaction of customers. Another acquisition strategy for Ford Motors is the reduction in cost.

    General Motors is one of biggest competitors of Ford Motors. One of the important acquisition strategy for Ford Motors could be to reduce risks. One of potential acquisition for Ford Motors could be to acquire General Motors. Ford Motors can acquire this company to lead in the world. They both can provide better satisfaction to customers. Ford Motors can acquire it to reduce the cost of its production. General motors’ is a good brand name for customers all over the world. Another strategic initiative to acquire General Motors would be to satisfy the demand of customers in the United States. United States customers are showing high demand for automobiles. Acquiring General Motors will also result to improve the current price of the share. This acquisition with being better for both companies because both are facing the decline in their market value. It will help to improve the prices of shares. Ford Motors shares have decreased in prices by 15% on the other hand general motors’ prices decreased by 17%. This acquisition can help to improve the situation of both companies. (Caplinger, 2016)

    Many companies acquire their competitors to provide better facilities to customers by combining both resources carefully. They can also improve their market shares through acquisition. Ford Motors can gain its strength back in United States market by acquiring General Motors. Another benefit of this acquisition would be to improve liquidity and profitability. This type of acquisition is called horizontal acquisition. Horizontal acquisition refers to acquiring company having a same business line. Ford motors and General Motors have the same line of business this acquisition will help to improve operations and production processes. It is recommended for Ford Motors that it should buy its one of biggest competitor to reduce its competition and improve its market share.

    After evaluating Ford Motors, it is concluded that its worth is more than its current market value. There is a big difference between both values. For Motors should acquire other companies to improve its market share price. It has the opportunity to improve its market share. It has the potential to acquire Ford Motors due to the availability of resources and finance. This acquisition strategy is in consistent with its existing strategy because it will help to capture new generation like its previous acquisition with Livio.

            Acquisition strategy with Livio is to enhance connectivity with automobiles. It is reported by the CEO that this acquisition will help to connect with new generation by providing them more connectivity. (Wernle, 2013). Three types of valuations are used in calculating value of Ford Motors. First important method is dividend discount and second is growth model. Third important method is free cash flow method. Forecasted equity value of the company is 8821638867. Forecasted value of operating assets for this company is 9.60568E+16.Analysts can use different valuation methods to calculate value of company.

Valuation can be used for making best decision regarding selling or purchasing. Zero score can also be used to analyze the valuation of company based on few ratios. It can identify acquisition recommendation for the company. Ford Motors acquisition is in favor of acquisition. This acquisition is recommended for Ford Motors to General motors.

References

Caplinger, D. (2016, March 8). Better Buy: General Motors Company vs. Ford Motor. Retrieved May 9, 2016, from http://www.fool.com/investing/general/2016/03/08/better-buy-general-motors-company-vs-ford-motor.aspx

Finance.yahoo.com. (2016). Ford Motor Co. (F). Retrieved May 9, 2016, from https://finance.yahoo.com/q;_ylt=Au4PuwvL7uZRNN_LBh_mlzeHH8V_;_ylu=X3oDMTE1MTZtcHBuBHBvcwMxBHNlYwN5ZmlRdW90ZVNpZGViYXIEc2xrA3N1bW1hcnk-?s=F

Wernle, B. (2013, September 30). Ford: Acquisition will help speed connectivity. Retrieved May 9, 2016, from http://www.autonews.com/article/20130930/OEM06/309309971/ford:-acquisition-will-help-speed-connectivity

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Synthetic Derivatives

Question 1: Choose a specific type of financial risk (e.g. energy costs, food prices, investment yields, currency fluctuations) and describe the downside and likelihood 

            Power (electric) is a necessary resource, which organizations require to perform various industrial/intra-organizational tasks. There is need to understand that without continuous supply of power or electricity, organizations cannot perform its operations, in time, which may result the loss of strategic or competitive edge. In addition to that, the cost of power/electricity, directly affects the cost of operations/productions, which could become a serious challenge, for any organization.

            Contemporary organizations, firms or companies, have prepared various strategies to reduce risk (financial and operational), so that it could become more competitive and effective organization. It is also imperative to understand that investment could be of such sort that it should be offset by the returns. For instance, any investment that aims to increase efficiency must increase productivity, adds value to production, so that revenue could swell, justifying investment.  The concept of Synthetic derivates explains the above-discussed phenomenon, in detail.

Question 2: Explain how you would like to mitigate this risk. 

            Financial risk is another great challenge for organizations, companies or firms, which they try to mitigate by developing various strategies and by devising special instruments. Therefore, it can be said that contemporary corporate organizations strive or exploit instruments and resources to either eliminate or mitigate risk. However, the fact is that a risk can never be eliminated; only it can be mitigated. 

Question 3: Construct a synthetic derivative consisting of at least four traded positions to hedge aforementioned risk. 

            All organizations, without any exception, operate in corporate system to generate and swell revenues. These companies, firms and organizations develop various processes and operational details to effectively realize its goals, as the optimal use of resources, not only reduces overall cost, but also it gives competitive edge, to firms-organizations-firms, against their rivals. In recent years, because of globalization, new opportunities have produced and competition, because of the amalgamation of markets, has increased. This has compelled companies, firms and organizations to develop new strategies pertain to the exploitation, of opportunities.

            These contemporary strategies primarily focus on developing instruments, which reduce the size of risk. The classical corporate or organizational concept was that the capital structure was the prime factor that stopped companies, firms or organizations from exploiting an opportunity. However, the extensive research, on the subject, reveals that not just the capital structure, of an organization affects it ability to perform in corporate system and capacity to exploit opportunities, but also organizational structure and ability to reduce risk through various instruments.

Question 4: Describe how your com specific, footnoted linked). Real example

            Through investment of various natures, cost of energy can be reduced. For instance, an organization can invest on capital (machinery) and compliment it with latest technology. The modernizing of operations will increase effectiveness and will reduce consumption of energy. Another position is regarding the installing of independent energy system, which could reduce the overall cost of energy consumption. However, to identify and maintain such system could be expensive and complicated process. By periodic revisiting and scrutinizing of operational processes, that require electricity, operations could be optimized.

            This process requires very modest allocation, of resources and it can reduce the cost of production for firm.  Another alternative is to use the mix of alternative and conventional energy resources. It requires considerable amount of resources (in form of installation of power systems), but it is very effective and reduces both cost of production and financial risk, in case one of the systems stop to function

Question 5: Attach a picture of a graph clearly showing your derivative’s return labeling all axes and other pertinent information.         

            The table above explains the investment and returns. The arithmetic is based on synthetic derivative information.

Ce S t r V
102331.4 1036 1 0.0074 0.8226
43180910 43307 2 0.0460 0.7043
51211.21 27916 3 0.0002 0.3905
60532.61 2226 4 0.0463 0.0581
4869110 22184 5 0.0495 0.2160
13044002 45186 6 0.0383 0.7421
1448462 17426 7 0.0334 0.2191
483010.3 13889 8 0.0197 0.9597
33355.45 2690 9 0.0024 0.7104
6328739 41971 10 0.0359 0.5777
665955.8 12812 11 0.0446 0.0081
265964.5 31550 12 0.0032 0.9493
52736.01 6099 13 0.0120 0.9395
41226.69 2008 14 0.0416 0.4939
4797122 48573 15 0.0305 0.8573
129593.9 10602 16 0.0178 0.3843
100502.1 14083 17 0.0084 0.3610
232603.2 20225 18 0.0102 0.0283
1252997 38638 19 0.0159 0.9214
1984629 29637 20 0.0451 0.9959
27598.82 11211 21 0.0034 0.6940
1159823 45415 22 0.0123 0.7860
315817.8 12606 23 0.0449 0.5992
21116.89 4381 24 0.0112 0.4482
203443.5 16222 25 0.0187 0.8665
53573.5 13047 26 0.0072 0.7218
484615.3 17481 27 0.0426 0.3094
43849.38 13107 28 0.0069 0.1339
484506.4 42973 29 0.0076 0.2534
1945402 42080 30 0.0329 0.5506

References

Thomsett, M. C. (2012). Options trading: What Exactly Is a Synthetic Derivative? Retrieved may 6, 2016, from Financial Times Press: http://www.ftpress.com/blogs/blog.aspx?uk=Options-trading-What-exactly-is-a-synthetic-derivative

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Smart Bed

Chapter 1

a.

My product is smart bed   for the smarter sleep to provide from the feature bed system that works together consistently. The sensor technology in the mattress has provided with health and comfortable condition to consumer. The sensor track your sleeping habits as it is placed under mattress, the sensor gives the heart rate, respiration rate data to make sure you sleep comfortable.

b.

Years Sales Profits Valuation
1 100000  $             10,000  $          445,000
2 250000  $             25,000
3 300000  $             30,000
4 500000  $             50,000
5 450000  $             45,000
6 500000  $             50,000
7 450000  $             45,000
8 600000  $             60,000
9 650000  $             65,000
10 650000  $             65,000

This table shows that the expected sales and profits that the business would be generating for its next ten years after startup.  

Chapter 2

a.

  1. There is generally negative relationship in the price of a bed (P) and in and quantity demanded, as there is decrease in the quantity of the bed the price increases.
  2. The bed is easy to buy with the increase in the consumers incomes (M). The consumer demands increases with the increase in incomes and they can afford to buy bed so there is positive relationship.
  3. Prices of related goods and services (PR),
  4. Complementary Products and Services

For example, The price of smart bed can be affected by the increase in price of electricity, with the increase in price of electricity the price of smart bed could also be increases, with the demand curve, when shift to left. 

B-    Substitute Products and Services

For example, the regular mattress is the substitute of smart bed, so in an increase in regular mattress, prices will be resulted in the consumer attraction and there would be spike of people, who will come to buy smart bed instead of mattress.

(4) Taste patterns of consumers (ℑ)

The demand curve could be affected by the consumers taste and preferences, when the consumer receive the information about the product or smart bed, from the family, friend or advertisements, their willingness to own a good increases.

(5)The expected price (Pe) could be effect in the consumer’s mind, if the consumer comes to know that in the future, there will be increase in the smart bed prices, then they will be willing to purchase it now.

(6) With the increases in demand of consumers in the market (N), the market size in increases, and the demand curve will be shifted to the right. In result, the prices will be lower with the increasing demands of potential buyers or consumers.

B.

  • Price of the smart bed: From the increase in the smart bed prices, the revenue for the company will generated and the revenue will be higher, increasing in price will directly result in the profit.
  • Input Prices: The cost of bed would be increase with the increases in the prices of input prices; the input includes the, energy, land, labor etc. The supply could also be reduced with the higher input prices.
  • Price of goods related to production:

A-Complementary Products and Services

For example, the supply bed of smart could be increases with the in the prices of electronic sensors, the prices of electronic sensors are related with the prices of smart bed.

B-Substitute Products and Services 

For example, as the regular mattress is the substitute of the smart bed so with the increases in the prices of regular mattress, the prices of smart bed will be decreases and the company will supply will be reduced.

  • Technology: The production cost of smart bed would be decreases with the advancement in the technology; however, the supply of goods would be increases.
  • Expectations: The suppliers can reduce the supply of goods in present, with the expectation or believe that in future the demands for the smart bed will be increases.
  • Number of firms, which produce the smart bed: If the number producers increases in the market then there will be increases in supply of smart bed.

Chapter 3

a.

TB – A2+180A
MB -2.5A+180
TC 200-15A+3A2
MC 20+5A

b.

The marginal benefit and the marginal cost have the inverse relation, with the increase in the marginal cost of the product the marginal benefit is declining.

c.

i. MB at half A is 125

ii. MC at half A is 132

iii. But, if we continue producing more, company can produce 41 units where MB=MC. This is the optimal point.

d.

i. MC = 26.5

ii. MB = 25.5

iii. If company will go beyond this point, it will only incur loss. Therefore, optimal point is that company only makes 25 units.

e

This is to mention that these expectations may hinder the success of this company, as these are not practical. To earn maximum and expected money, there is a need of extra units at different places. Obviously, there is a need of high revenue growth and capital, which seems tough for Thus Company. Thus, this model is not pertinent to the real scenario, as bed manufacturers must have other strategy.

Chapter 4

a. The question, which arises for the planning of the smart bed business, would be the effect of the increasing or decreasing price on the demand of the product. The new venture planning needs to know that if the price of the product has to be raised, or if from the pressure from the competitors, or in the case the cost of production is increased, then how would the change in the price will affect the demand of the product.

b. The dependent variable as per the mentioned question is the demand of the product, i.e. smart beds. The production of the product is dependent on the demand of the product, and the demand is dependent on many independent variables. For our analysis, we are considering the “price” as the independent variable, and will analyze the effect of various changes in the price on the demand of the product.  

c. Regression Analysis

This is effective to keep other variables constant. Price and demand may be affected due to these constant variables.  Following are some results in the regard.

Regression Statistics
Multiple R 0.585381
R Square 0.845202
Adjusted R Square 0.641787
Standard Error 154.5019
Observations 45
  Coefficients Standard Error t Stat
Intercept 1089.73 84.488 9.966496
Price -49.0415 10.49909 -4.85215

d. Interpretation:

The information is divided in two different pieces.

Intercept:  The value of concept has been stated as 1089.73. It demonstrate high or low price of a particular product or services for customers.

Slope: the 49-scope depicts negative relation between demand and price. This is expected that if price of product increases then demand for unit will increase by 49 units.

Interestingly, if the company has other independent values of different variables the regression can be applied. The purpose is to derive the impacts of demand on different products.

e.

The price of any product or services may change, which can produce different results. This can be shown in following regression model.

Regression Statistics
Multiple R 0.853805
R Square 0.452022
Adjusted R Square 0.41787
Standard Error 545.0186
Observations 45
  Coefficients Standard Error t Stat
Intercept 897.2983 48.80042 9.664964
Price -41.4847 49.90945 -8.5215

However, if price decreases with increasing demand,

Regression Statistics
Multiple R 0.53805
R Square 0.520217
Adjusted R Square 0.178705
Standard Error 450.186
Observations 45
  Coefficients Standard Error t Stat
Intercept 972.9826 88.00423 6.649641
Price -414.847 99.09446 -5.21502

Chapter 5

a b
Qty MU TU
1 40 40
2 30 70
3 20 90
4 10 100
5 0 100
6 -10 90
7 -20 70
8 -30 40
9 -40 0
10 -50 -50

This table is based on the values, which are assumed as increasing the marginal utility of the each added product until the addition of the sixth item of the product, from where the product is consumed much. However, the total utility is depicted to be lowering as the marginal utility is seen negative from the sixth item addition, showing the diminishing marginal utility of the product.

c.

We can marginal utility, which is diminishing. This is diminishing regarding normal goods.  This is a fact that specific or knowledge goods may contain special nature, which can depict difference regarding price and demand.

d.

d Our Product Other Product
Price  $                       15  $                     19
Quantity Marginal Utility of our Product Marginal Utility per Dollar Marginal Utility of other product MU per Dollar Other Product
1 40  $                 2.67 30  $                   1.58
2 30  $                 2.00 27  $                   1.42
3 20  $                 1.33 24  $                   1.26
4 10  $                 0.67 21  $                   1.11
5 0  $                      –   18  $                   0.95
6 -10  $               (0.67) 15  $                   0.79
7 -20  $               (1.33) 12  $                   0.63
8 -30  $               (2.00) 9  $                   0.47
9 -40  $               (2.67) 6  $                   0.32
10 -50  $               (3.33) 3  $                   0.16

e

This is based on consumer intention. If they use first 8 units then they will have 3 units of other products in the market. The purpose is to maximize the profit for a long run.

Chapter 6

a.

Quantity Price Total Revenue Marginal Revenue Elasticity
Q P TR MR E
1 50 48
2 49 96 48 -50.50
3 48 142 46 -25.00
4 47 186 44 -16.50
5 46 228 42 -12.25
6 45 268 40 -9.70
7 44 306 38 -8.00
8 43 342 36 -6.79
9 42 376 34 -5.88
10 41 408 32 -5.17
11 40 438 30 -4.60
12 39 466 28 -4.14
13 38 492 26 -3.75
14 37 516 24 -3.42
15 36 538 22 -3.14
16 35 558 20 -2.90
17 34 576 18 -2.69
18 33 592 16 -2.50
19 32 606 14 -2.33
20 31 618 12 -2.18
21 30 628 10 -2.05
22 29 636 8 -1.93
23 28 642 6 -1.82
24 27 646 4 -1.72
25 26 648 2 -1.63
26 25 648 0 -1.54
27 24 646 -2 -1.46
28 23 642 -4 -1.39
29 22 636 -6 -1.32
30 21 628 -8 -1.26
31 20 618 -10 -1.20
32 19 606 -12 -1.15
33 18 592 -14 -1.09
34 17 576 -16 -1.05
35 16 558 -18 -1.00
36 15 538 -20 -0.96
37 14 516 -22 -0.92
38 13 492 -24 -0.88
39 12 466 -26 -0.84
40 11 438 -28 -0.81
41 10 408 -30 -0.78
42 9 376 -32 -0.74
43 8 342 -34 -0.71
44 7 306 -36 -0.69
45 6 268 -38 -0.66
46 5 228 -40 -0.63
47 4 186 -42 -0.61
48 3 142 -44 -0.59
49 2 96 -46 -0.56
50 1 48 -48 -0.54

b.

The graph shows that the marginal revenue is decreasing depicting the reducing ratio of the change in the quantity and the change in the total revenue whereas the total revenue shows the slope of the total revenue with the diminishing trend. 

Chapter 7

Time Months Sales Actual Sales Forecasted Difference
1 Jan-16  $            995,054  $            1,016,052  $   (20,999)
2 Feb-16  $        1,031,659  $            1,015,506  $     16,153
3 Mar-16  $            985,678  $            1,014,959  $   (29,281)
4 Apr-16  $        1,008,962  $            1,014,413  $     (5,451)
5 May-16  $        1,010,442  $            1,013,866  $     (3,424)
6 Jun-16  $        1,033,856  $            1,013,319  $     20,536
7 Jul-16  $        1,038,767  $            1,012,773  $     25,994
8 Aug-16  $        1,025,377  $            1,012,226  $     13,151
9 Sep-16  $        1,013,167  $            1,011,680  $       1,488
10 Oct-16  $            987,796  $            1,011,133  $   (23,337)
11 Nov-16  $        1,016,961  $            1,010,586  $       6,375
12 Dec-16  $        1,017,668  $            1,010,040  $       7,628
13 Jan-17  $        1,018,374  $            1,009,493  $       8,881
14 Feb-17  $        1,019,081  $            1,008,947  $     10,134
15 Mar-17  $        1,019,787  $            1,008,400  $     11,387
16 Apr-17  $        1,020,494  $            1,007,853  $     12,640
17 May-17  $        1,021,200  $            1,007,307  $     13,893
18 Jun-17  $        1,021,907  $            1,006,760  $     15,146
19 Jul-17  $        1,022,613  $            1,006,214  $     16,400
20 Aug-17  $        1,023,320  $            1,005,667  $     17,653
21 Sep-17  $        1,024,026  $            1,005,121  $     18,906

a.

Regression Statistics
Multiple R 0.708048724
R Square 0.291743044
Adjusted R Square -0.219217848
Standard Error 7266.422991
Observations 21
  Coefficients Standard Error t Stat
Intercept 1659901.105 9083.005984 111.9231907
Time -465.9553766 723.3686072 -0.755625185

b.

i.

The above graph shows the difference in the expected or forecasted sales and the actual sales. The difference is very inconsistent for the 20 years sales.

ii

Alpha and beta forecast based data can let us navigate different future or expected results. For Instance, we can see estimated sales as $ 1,005,121.

Chapter 8

Q L FC TC TVC MP MC TP AP AVC
0 0 50 50 0 0 0 0 0.00 0
10 0.6 50 59 11 13.67 1.15 6.67 16.11 4.90
20 1 50 74 15 22.00 1.75 21.67 26.67 2.70
30 1.3 50 92 18 30.33 2.05 45.00 39.62 2.07
40 1.7 50 114 22 22.00 2.45 60.00 40.29 1.85
50 2.3 50 142 28 13.67 3.05 66.67 33.99 1.84
60 3.2 50 179 37 8.11 3.95 67.78 26.18 1.98
70 4.4 50 228 49 5.33 5.15 66.11 20.03 2.26
80 6.2 50 295 67 2.56 6.95 61.67 14.95 2.69

a.

The above graph shows the inverse relationship between the marginal product and marginal cost, depicted from the increasing cost with the decreasing marginal profit.

b.

The relationship of the average production and average variable cost is shown in this graph. This shows that with the decline in the average variable cost the average production is increasing in the start and is then decreasing.

c.

The marginal and average production has the same trend showing their direct proportionality.

d.

This graph shows that the marginal cost is increasing with a constant change whereas the average variable cost has declined steeply at first but then has become somewhat constant, showing that the change in marginal cost is then not contributed from the variable cost part.

Chapter 9

Output L K TLC TKC TC LAC LMC
10 1 0.7 0.4 7 2.8 0.28
20 1.2 0.8 0.5 16 8 0.4 0.52
30 2 1 0.9 30 27 0.9 1.9
40 3 1.5 1.4 60 84 2.1 5.7
50 4 2.2 1.9 110 209 4.18 12.5
60 5.2 3 2.5 180 450 7.5 24.1
70 6 4.2 2.9 294 852.6 12.18 40.26

a

The graph shows the increasing trend of the total cost.

b

The long run marginal cost and the long run average cost both have the same trend and direct proportionality as depicted in the graph.

Chapter 10

a

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.640822
R Square 0.410652
Adjusted R Square 0.381185
Standard Error 196.3011
Observations 22
  Coefficients Standard Error t Stat
Intercept -41.501 129.9302 -0.54964
L 25.93543 13.46327 3.733073

The difference is large between the forecasted and real results                                

b                                                         

Inverse perceived values and the signs are different as well                                     

c                                                                     

Alpha has least significance and beta is highly significant.                                       

d                                                                     

Maximum potential is attained in 12 units                                         

e                                                                     

AVC= 77.77                          

f                                                                      

SMC= 280                             

g                                                                     

LDR=12                           

Output=527units

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Smart cup economics

Chapter 1

a. Product/service smart cup

The company in this project is producing the smart cups called Vessyl which can automatically tracks the liquid calories of a person in the course of a day. Company’s target will be health conscious people who are more concerned about their diet and are concerned about their daily liquid intakes. This product is ideal for checking the hydration of a person, and is ideal for athletes and other sports professionals and amateurs. The product is catering the people of middle age and the young age but it could also be involved and the people of the age and all sizes of the people.

b. 10-year expected profit for smart cup

Estimation of company’s Profitability
Valuation     2,000,000.00
Sales  $          150,000  $          200,000  $          250,000  $              300,000  $          350,000  $          400,000  $          450,000  $          500,000  $          550,000  $          600,000
Profits  $             15,000  $             21,000  $             27,500  $                36,000  $             43,750  $             52,000  $             60,750  $             70,000  $             79,750  $             90,000

2. Six principle variables demand for smart cup

P= Price of good

Y= Y is the income of the consumers,

Pr= It is the price of the close substitutes and related goods

Pt = taste patterns of the consumers

Pe= Expected price for future

N= In modern times, most of the people are health conscious so, all people are included in it.

b. Six principle variables supplier for smart cup

As demand gets influenced by some variables, similarly, there are variables on supply side this could affect the equation side of the work. Some of these variables are

P= Product Price sold

PI= the price of the raw material of the input of the devices

Pr= Price rates of company’s competitors.

T= The technology which is available in eth manufacturing firms

Pe= is the price expectation of the material of macroeconomic indicators such as inflation rates or oil prices in the market.

F= It includes the firms which are producing the similar products.

3.

a. Total cost and total benefits of smart cup

Total benefit and Total Cost  Formula
TB 200A – 2A2
MB 200-4.5A
TC 300-18A+4A2
MC 30+7A

Total benefits and total cost

TB TC
198 286
392 280
582 282
768 292
950 310
1128 336
1302 370
1472 412
1638 462
1800 520
1958 586
2112 660
2262 742
2408 832
2550 930
2688 1036
2822 1150
2952 1272
3078 1402
3200 1540
3318 1686
3432 1840
3542 2002
3648 2172
3750 2350
3848 2536
3942 2730
4032 2932
4118 3142
4200 3360
4278 3586
4352 3820
4422 4062
4488 4312
4550 4570
4608 4836
4662 5110
4712 5392
4758 5682
4800 5980
4838 6286
4872 6600
4902 6922
4928 7252
4950 7590
4968 7936
4982 8290
4992 8652
4998 9022
5000 9400

Total Benefit & Total Cost functions for smart cup

b. Marginal benefit and Marginal Cost Analysis for smart cup

With the help of chart the company should only developing 15 products

c. Producing at half the optimal level of activity for smart cup

Optimal level of Activity A/2

i. MB at half A is 130

ii. 138 is half A at the MC

iii. If A is cut to half, company’s optimal production can increase to 30 units.

Marginal benefit and Marginal Cost Analysis at A/2 for smart cup

d. Producing at twice the optimal level of activity for smart cup

Optimal level of Activity 2A

i. MC is 128

ii. 137 is MB

iii. If A is doubled that company can only produce 6 units and if company produces more than 6 units it will have to bear losses as it is depicted from the graph below:

At 2A, MB & MC Analysis for smart cup

e. This model is aunrealistic scenario, because as stated earlier that company has wide range of consumers and is expected to make significant sales but the production of under 50 units under this given cost and revenue function is unrealistic.

Chapter 4:

a. Planning for business operations of smart cup

Business must address the different variables which could affect the potential performance of the company. These during variables should be studied and their impact on product demand must he analyzed through regression analysis to make better informed decisions in business operations.

b. Regression analysis for smart cup

The dependent variables are stated on left side of the equation and independent variables are given on right sides of the formual.

Demand Function:

Qd  =P + Y+ Pr+ Pt+ Pe+ N

Supply Function

Qs= P+PI + Pr + T + Pe + F

c. Regression Analysis for smart cup

Regression is performed to analyze the  impact on the demand of the product, if the price changes.

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.989473
R Square 0.979057
Adjusted R Square 0.978441
Standard Error 15.46947
Observations 36
ANOVA
  df SS MS F Significance F
Regression 1 380363.6 380363.6 1589.455 3.94E-30
Residual 34 8136.352 239.3045
Total 35 388500      
  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -331.377 15.4266 -21.4809 2.33E-21 -362.727 -300.026 -362.727 -300.026
Price 21.70952 0.544536 39.86797 3.94E-30 20.6029 22.81615 20.6029 22.81615

d. Interpretation of smart cup

The following is the information about the important thing.

Intercept: The autonomous demand for the product is value of intercept is -331.37.

Slope: the price of product increases by 1 unit as the the slope of 21.71 is the demand of eth product and is relevant to the price of product, the demand for the product will increase by 21 times. This is not a common situation and it can be stated that number of other factors may be involved here which have impacted the demand. May be the taste of people is changing and people are more inclined to buy this  company’s products.

e. Conduct forecasting for smart cup

The regression model is shown which is deemed with the price of the changing factor:

If Price increases by 1, we get

Regression model for smart cup

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.989473
R Square 0.979057
Adjusted R Square 0.978441
Standard Error 15.46947
Observations 36
ANOVA
  df SS MS F Significance F
Regression 1 380363.6 380363.6 1589.455 3.94E-30
Residual 34 8136.352 239.3045
Total 35 388500      
  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -353.086 15.96374 -22.118 9.21E-22 -385.529 -320.644 -385.529 -320.644
P+1 21.70952 0.544536 39.86797 3.94E-30 20.6029 22.81615 20.6029 22.81615

Chapter 5

a. Marginal utility for smart cup

Quantity Total Utility Marginal Utility
0 0
1 11 11
2 20 9
3 27 7
4 32 5
5 35 3
6 36 1
7 35 -1
8 32 -3
9 28 -4
10 23 -5

b. Estimation of total utility for smart cup

c. Diminishing marginal utility for smart cup

Utility starts at the 7th unit. Before that though marginal unit is continuously declining but the total Utility was increasing. However, at 7th unit, it started declining again. It means that  consumer will only buy 6 units of a product as the purchase of 7th unit results in decline in its utility therefore, it will not be bought.

d. Price for smart cup

Quantity Marginal Utility MU per dollar of your product Marginal Utility of the other product MU per dollar of the other product
1 11 16.5 85 127.5
2 9 13.5 164 246
3 7 10.5 237 355.5
4 5 7.5 303 454.5
5 3 4.5 361 541.5
6 1 1.5 410 615
7 -1 -1.5 449 673.5
8 -3 -4.5 476 714
9 -4 -6 490 735
10 -5 -7.5 490 735

It is evident that other product is giving greater marginal utility as the company has large market share and has been the first company to introduce such products to measure calories. Therefore, as MU of other product is greater therefore, consumers are more willing to buy the products of the other company currently.  Since, the MU per dollar spent is greater for other product therefore, consumer will allocate the budge up to its requirement and maximum utility required.

Chapter 6

Production of smart cup

Quantity Demanded Price Total Revenue Marginal Revenue Elasticity of Demand
Q P TR MR E
1 50 50
2 49 98 48 -0.020
3 48 144 46 -0.010
4 47 188 44 -0.007
5 46 230 42 -0.005
6 45 264 34 -0.004
7 44 301 37 -0.004
8 43 336 35 -0.003
9 42 369 33 -0.003
10 41 400 31 -0.003
11 40 429 29 -0.002
12 39 456 27 -0.002
13 38 481 25 -0.002
14 37 504 23 -0.002
15 36 525 21 -0.002
16 35 544 19 -0.002
17 34 561 17 -0.002
18 33 576 15 -0.002
19 32 589 13 -0.002
20 31 600 11 -0.002
21 30 609 9 -0.002
22 29 616 7 -0.002
23 28 621 5 -0.002
24 27 624 3 -0.002
25 26 625 1 -0.002
26 25 624 -1 -0.002
27 24 621 -3 -0.002
28 23 616 -5 -0.002
29 22 609 -7 -0.002
30 21 600 -9 -0.002
31 20 589 -11 -0.002
32 19 576 -13 -0.002
33 18 561 -15 -0.002
34 17 544 -17 -0.002
35 16 525 -19 -0.002
36 15 504 -21 -0.002
37 14 481 -23 -0.002
38 13 456 -25 -0.002
39 12 429 -27 -0.002
40 11 400 -29 -0.002
41 10 369 -31 -0.002
42 9 336 -33 -0.002
43 8 301 -35 -0.003
44 7 264 -37 -0.003
45 6 225 -39 -0.003
46 5 184 -41 -0.004
47 4 141 -43 -0.004
48 3 96 -45 -0.005
49 2 49 -47 -0.007
50 1 50 1 -0.010

b. Total Revenue TR for smart cup

Marginal Revenue MR for smart cup

Elasticity of Demand E for smart cup

These graphs depict the relationship between the TR & MR and Elasticity of demand. First, id we analyze the MR & TR, it is evident firm graph that as the marginal revenue is declining,  TR is increasing but the stage comes when the MR becomes negative, so before, it becomes negative, TR is at its maximum and when company produces 26th unit, MR becomes zero, this is the point where the graph changes its curvature and become, concave and starts declining,. Therefore,  at unit 26, company has inflection point and it is also the maximum number of units which company should produce.

However, in case of elasticity of demand, it is apparent that demand for the product is inelastic and it first declines and then for large number of units remain same and it shows that consumers are inelastic but they respond to  price change, and E increases, however, when the price continue to decline, the demand continuous to increase.  But, ‘E’ starts to decline again indicating that Qd is not responding much to decline in price.

Chapter 7

a. Expected level of sales for smart cup

SUMMARY OUTPUT
Regression Statistics
Multiple R 0.903790167
R Square 0.816836666
Adjusted R Square 0.793941249
Standard Error 78033.17088
Observations 10
ANOVA
  df SS MS F Significance F
Regression 1 2.17243E+11 2.17E+11 35.67686 0.000333
Residual 8 48713406061 6.09E+09
Total 9 2.65956E+11      
  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 15066.66667 53306.80401 0.282641 0.784627 -107859 137992.4 -107859 137992.4
Time Trend 51315.15152 8591.169362 5.973011 0.000333 31503.88 71126.42 31503.88 71126.42

b. Estimation of regression line at point for the smart cup

Time Trend Actual Observations Sales Estimated Regression Line Sales = a + b*Time
1  $                             100,000.00  $                                                                       66,381.82
2  $                             160,000.00  $                                                                     117,696.97
3  $                             180,000.00  $                                                                     169,012.12
4  $                               20,000.00  $                                                                     220,327.27
5  $                             323,000.00  $                                                                     271,642.42
6  $                             350,000.00  $                                                                     322,957.58
7  $                             410,000.00  $                                                                     374,272.73
8  $                             420,000.00  $                                                                     425,587.88
9  $                             500,000.00  $                                                                     476,903.03
10  $                             510,000.00  $                                                                     528,218.18

ii. Forecast level of sales for smart cup

Time Trend Actual Observations Sales Estimated Regression Line Sales = a + b*Time
1 $                             100,000.00 $                                                                       66,381.82
2 $                             160,000.00 $                                                                     117,696.97
3 $                             180,000.00 $                                                                     169,012.12
4 $                               20,000.00 $                                                                     220,327.27
5 $                             323,000.00 $                                                                     271,642.42
6 $                             350,000.00 $                                                                     322,957.58
7 $                             410,000.00 $                                                                     374,272.73
8 $                             420,000.00 $                                                                     425,587.88
9 $                             500,000.00 $                                                                     476,903.03
10 $                             510,000.00 $                                                                     528,218.18
Demand Forecasted using Moving Averages
11 $                             600,000.00 $                                                                     451,245.45
12 $                            620,000.00 $                                                                    507,677.27
13 $                             630,000.00 $                                                                     556,280.30
14 $                             646,666.67 $                                                                     594,554.55
15 $                            661,666.67 $                                                                     624,166.67
16 $                             676,666.67 $                                                                     639,583.33
17 $                             691,666.67 $                                                                     653,750.00
18 $                            706,666.67 $                                                                     669,166.67
19 $                             721,666.67 $                                                                     684,166.67
20 $                             736,666.67 $                                                                     699,166.67
21 $                            751,666.67 $                                                                     714,166.67

Since, it is expected that trend is emerging among the new generation to become more health conscious, and people want to me more fit, therefore, the sales of this product are expected to grow fast. So, based on future demands in 2016, by using the moving averages methods, sales are forecasted for next year.

Chapter 8

Estimations of TVC, MC, MP, AC for smart cup

Q L W TVC MP MC TP AP AVC
0 0 1000 0 0
10000 60 1000 60000 600000 60000 600000 60 6
20000 100 1000 100000 2000000 40000 2000000 100 5
30000 130 1000 130000 3900000 30000 3900000 130 4.333333
40000 170 1000 170000 6800000 40000 6800000 170 4.25
50000 230 1000 230000 11500000 60000 11500000 230 4.6
60000 320 1000 320000 19200000 90000 19200000 320 5.333333
70000 440 1000 440000 30800000 120000 30800000 440 6.285714
80000 620 1000 620000 49600000 180000 49600000 620 7.75

Units are thousands here for labor and quantity produced

  1. Difference between MC and MP for the smart cup

Marginal cost depicts here that how much of the labor cost will be required to produce more units of the product. However, MP shows the product of the labor and quantity produced, so values are different for both.

b. Difference between AC and AVC  for the smart cup

Average product is divided by the number of units produced but the AVC is the average of total VC.

c. Intersection point of MP and AP

MP and AP have not intersected at any point in this graph.

d. Intersection point of MC and AVC for smart cup

AVC and MC intersect at 7000 units. So, when company will produce 7000 units, its AVC and MC will intersect.

Chapter 9

Long run cost scheduling for smart cup

Output L W K TC LAC LMC
10 1 0.5 1 10.5 1.05
20 1.2 0.5 1 20.6 1.03 -0.02
30 2 0.5 1 31 1.033333 0.003333
40 3 0.5 1 41.5 1.0375 0.004167
50 4 0.5 1 52 1.04 0.0025
60 5.2 0.5 1 62.6 1.043333 0.003333
70 6 0.5 1 73 1.042857 -0.00048

a. Total cost for smart cup

Total cost has a  linear graph as shown above.

b. LAC and the LMC functions of smart cup

Before the intersection of graphs, LMC curve is showing increasing trend but, the LAC function had hit its inflection point and was moving upwards before intersecting the LAC.

Chapter 10

Regression analysis of smart cup

Regression Statistics
Multiple R 0.636496
R Square 0.405127
Adjusted R Square 0.375383
Standard Error 196447.9
Observations 22
  Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -61985.9 130027.3297 -0.47671 0.638733 -333218 209246.4 -333218 209246.4
L 49.72482 13.4733318 3.690611 0.001449 21.61995 77.8297 21.61995 77.8297
  1. This depends on the representation of sample obtained from population. This statistic show the standard error of 13.47 which shows that estimated Q is 13.47 percent ways form the true Q value.
  2. Yes, the logic sign is appropriate.
  3. It is statistically significant at 1 percent.
  4. It was maximum when company was producing 722000 units of product as shown in tegarpg below:

Level of labor usage does average of smart cup

  • Average product is maximized when it reaches its inflection point.
  • MC is at its lowest position when AP is maximized.
  • There is no set point in this fluctuating graph as company has been experiencing fluctuations in its quantity produced. So, all the points form where company’s TP graph declines, it shows that contribution of extra labor is not helpful and are resulting in diminishing returns.