Summary of Globalization

* Review Gail Wyatt's research on heterosexual's Black women's sexual experience (notes from slides). * According to the article â€Å"Married to the Holy Spirit† and class notes what are some potential consequences for attempting to maintain a faith-based abstinence life style? * What are some of the characteristics of different gender presentations of Black lesbians (e. g. , â€Å"femmes†, â€Å"studs†). * Identify the ways that Black lesbians deal with sexual prejudice in their lives (article: â€Å"It ain't all as bad as it may seem†). * Define â€Å"sexual concurrency. How does it influence male-female relationships and rates of HIV. Black motherhood * According to Chaney, how do Black women define â€Å"womanhood? † * How do parents, peers, healthcare workers, and the media influence Black women's sexual practices and attitudes toward delaying early pregnancy as they pursue their education (Dilworth article). * How has Black women's reproduction been controlled throughout history (Flavin article and notes). * Identify some specific socialization messages that Black women give to their daughters (Thomas article). Community Violence/Homicide Review the statists on community violence and homicide. What are some specific types of homicide? * What community characteristics increase the probability of community violence? * Discuss at least 3 different factors (they could be historical, social, or economic) that make Black women more vulnerable to violence or make it more difficult for them to recover. * Explain Black mothers' cognitive process and ways of finding meaning after the loss of a child to homicide. * What are some ways that Black women coping with community violence in housing projects. Sexual Assault/Intimate Partner Violence * According to a Black feminist perspective, what factors do researchers consider when explaining intimate partner violence (Potter article). * What are some factors that make the recovery process more challenging for Black victims of sexual harassment? * Regarding sexual assault, identify the characteristics of survivors and their assault, risk factors, and physical and mental health consequences. What are some culturally sensitive responses to treating Black survivors?

Financial Implication of Decision

Evidencing the increased emphasis on exit strategy was research conducted during the mid-1960s through the mid-1970s that analyzed the exit process and created a framework that business decision makers could use to determine when and how to exit. For example, Conrad Berenson posited an exit model in 1963 that identified five categories of criteria used to evaluate a product abandonment decision: 1. Financial security, which entails determining if the minimum return on investment is being met for the firm; 2.Financial opportunity, or calculating the return on alternative uses of the firm's resources; 3. Marketing strategy, which determines the value of the product above pure financial profit, such as brand-name worth and the value of established distribution channels; 4. Social responsibility, or criteria that encompass the firm's responsibilities to customers, employees, suppliers, and so forth; and 5. Organized intervention, which takes into account actions by government, society, o r labor groups as a result of the decision to exit.And you need to anticipate the impact of key business decisions on your accounting and financial reporting. * Is your organization raising debt or equity? Acquiring a business? Carving-out a non-core operation? Complex accounting and financial reporting issues can arise as a result of changes dictated by your entity’s capital agenda. * Are you undertaking a significant business transformation? Assessing how a shared services center can improve efficiencies in your reporting process?Streamlining your accounting policies can help you reduce risk and manage cost. * Does the business operate in multiple jurisdictions? An assessment of your statutory reporting processes can allow you to manage risk, increase consistency in financial reporting, and realize efficiencies. * Are you planning to upgrade or replace your existing ERP system? Early assessment of changing accounting requirements should be incorporated into planned migratio ns to avoid expensive rework later.

Museum Of Modern Art George Seurat

Art AS communication 3 December 2013 Museum Paper On November 9th, 2013, St. Josephs College hosted a field trip into New York City. The purpose of this field trip was to transport us into the city, and have the students visit a major art museum. There were a few different choices, the students had, but most went straight to the Metropolitan Museum of Art because the admission to the museum was whatever you want to contribute. However, we took a different approach.My friend and I went straight to The Museum of Modern Art, also known as the MOMA. I looked briefly the night before at each museum to get a feel for what I wanted to see, and what I did not. Once I saw this artist was at the MOMA, that's when I knew I wanted to actually see it in person. The artist that I very much wanted to see was George Seurat. Prior to this class, I have never heard of this artist. I never knew who he was, or knew the style in which he painted. It was only a few classes before the trip that I truly lea rned to appreciate this artist.I have never seen an artist who has the patience and delicacy to place these dots on a canvas, sometimes smaller than a crumb, to create a work of art. George Seurat was a French Post-Impressionist painter who drew in a style called pointillism. Pointillism is â€Å"the theory or practice in art of applying small strokes or dots of color to a surface so that from a distance they blend together. † (Merriam- webster. com) This style of painting is consistent with his other works through this time period. The piece of art I chose for my paper is the â€Å"Port-en-Bessin, Entrance to he Harbor† by Seurat.This painting was made in France in 1888 and is roughly 21. 65 inches by 25. 59 inches. The painting is oil on canvas and describes a harbor in France. When I first saw this painting I didn't realize it was a piece by Seurat. It looked as if it was work done in a different style than pointillism. I chose this one because, in my opinion, this style of painting deserves the most respect out of any of the artist. In this painting you can see how each little dot is done in order to create one large image. The first thing I noticed in this painting was the defining line between the shore and the water.Seurat uses different shades of green and a very pale color to illustrate the effect of grass and sand. For some reason that part of the painting kept me looking for a little bit and following the shore line up the painting. Next my eyes brought me to the water and the floating dock towards the middle ground slightly to the left of the painting. Here you can see he used two complementary colors to really attract your eyes to that point. The almost wood color f the dock and the light blue water really reinforce each other and keep you looking there for a brief second.The water had me confused at first. You can see within the harbor itself, there are three larger dark blue circles. I thought they were deeper parts of the water an d Seurat was trying to create depth here, but I soon ruled that out. I later realized with the weather that is portrayed here, that those are clouds exiting the harbor and that there was a lot going on here. I believe this is where Seurat wanted his focal point to be. The very center of the painting shows the sharp angles of the sails against the dark shadow of the cloud meeting the water.It is not just the contrast that brings your eyes here, but it is the way the boats are positioned. As with the shore line mentioned earlier, the boats are creating this line in which your eyes Just follow. Seurat uses directional force here starting with the boat on the right and creating this sense of movement towards the boat to the left, leading out into the ocean. He uses the shapes of the sails, and the direction they re advancing, to lead your eyes out, to the background, into the ocean where the rest of the boats are.Actually going into the city to see the original work in person was import ant to me because you can only appreciate this style of art once you are in front of it. Looking up this picture online doesn't do it Justice because the colors are off and it looks strikingly different from the original. Also an important thing to note is you can really see the small and medium dots he used in this painting. When you zoom in online, the resolution is off and it gets blurry before you can see detail.Not to discredit any other artist, but I think this style of painting requires much more time and dedication to create the final image. Overall, I have enjoyed this trip, and the class for that matter, because it showed me there is more to art when you can break it down using the elements and principles and see what the painting is really about. Works Cited â€Å"Pointillism – Definition and More from the Free Merriam-Webster Dictionary. † Dictionary and Thesaurus – Merriam-Webster Online. N. p. , 7 Aug. 2012. Web. 29 NOV. 2013. .

Equity and Trust Essay Example | Topics and Well Written Essays - 3500 words

Equity and Trust - Essay Example The settlor also uses the word â€Å"confidence† in that he was confident that Pamela will carry out his express wishes with advice from his solicitor. However, taken together the words expressing the trust may be interpreted as precatory as it is not altogether clear what the settlor’s intention are in terms of securing the kid’s future.5 However, since the settlor used the word trust in referring to the specific terms of the gift, there is no doubt that he intended to create a trust for the benefit of the children and intended that his wife determine how best to secure his children’s future as their trustee. Thus the certainty of intention has been satisfied in respect of the gift to Pamela. The requirement of certainty of subject and object will give effect to the settlor’s intention if sufficiently identifiable.6 Thus the certainty of subject matter is satisfied if the property to be transferred to the trust is identifiable and administratively possible.7 The settlor transferred 500,000 pounds to his wife Pamela with the specific instructions that the funds were to be held by her upon trust for their children. Thus there is no uncertainty relative to the subject matter of the trust and as such it is administratively possible. Therefore certainty of subject matter is sufficiently made out to constitute a valid declaration of trust. Certainty of objects is satisfied if the words used to create the trust identifies beneficiaries or a class of beneficiaries with sufficient clarity that the trustees or the courts can identify the beneficiaries.8 The gift to Pamela refers to their children and thus there can be no doubt that all children shared by Pamela and her husband are the beneficiaries of the trust and can be easily identified. It therefore follows that each of the three certainties are satisfied in the gift to Pamela and a valid, enforceable trust was created. b. The Gift for the Settlor’s Best Friends and their Re latives The gift of 100,000 pounds for the settlor’s best friends and their relatives must meet the certainty of objects requirement if it is to be a valid, enforceable trust. Essentially, when the settlor refers to a class of beneficiaries and does not specifically identify the members of the class, the courts require that there must be a conceptual certainty as to who makes up the members of the class of beneficiaries.9 The class of beneficiaries must be of sufficient certainty so that the trust itself is administratively possible. The trustees must be in a position to identify those who make up the members of the group forming the beneficiaries of the trust so that at some later time, otherwise, trustees may find themselves confronting a number of claims for breach of trust. For instance a trust for the residents of a specific community would be administratively impossible since the trustees would have an onerous task of having to identify those who are residents and wheth er or not present or future residents fall

Marketing Plan for Oak Creek Soccer Tournament Term Paper

Marketing Plan for Oak Creek Soccer Tournament - Term Paper Example The revenues generated from the tournament will be used for the promotion of this sport across the region to build better and competitive soccer teams. The entire marketing plans focuses on two primary objectives, first is how to give the maximum coverage to the entire event and secondly how to get the maximum possible responses from those inputs while providing exemplary social advocacy and entertainment to the people. Market Place Analysis for Oak Creek Soccer Tournament Young Soccer Club, which is working in collaboration with McLean Youth Soccer and Oak Creek Soccer Club was able to acquire plenty of information about the current situation of availability of the Soccer sport in Oak Creek Southeastern Milwaukee County. In the previous almost every sports event that has taken place in the Oak Creek was able to attract a large number of spectators leading towards success. These types of events have proven to the beneficial for the growth of many sponsor companies in the region and h ave led to the increase of interest of the sports among the people. This clearly shows that the people have the love of sports and need more opportunities to explore other arenas of sports and entertainment. The current sports related community is in the county is already well aware of this sport but due to lack of grass root professionalism and related events of this sport that provide quality and effective management can lead to success. In addition, the unavailability of many wide scale opportunities for Soccer sports but the availability of material resources like the Soccer ground and related equipment makes it a viable opportunity to explore. There are seven college levels teams for Soccer with most of those players have played the game only thrice in the last 6 months at the college level. Four local clubs manage six community teams that play the sport every fortnightly. Most of these community teams are active for over 5 years showing the commitment to the sport. There are t wo college level Soccer teams at the moment and two at the community level that are specifically limited to women, showing the involvement of the women in the sport. Most of the clubs are self-managed with little or no patron-ship from any concern. There have been held two club level Soccer tournaments in the past 5 years due to lack of resources and efficient management but every tournament had massive success and acceptance in Oak Creek Southeastern Milwaukee County. SWOT Analysis for Oak Creek Soccer Tournament The SWOT analysis is based on neutral market research done by the Young Soccer Club and other related Soccer associations including the Oak Creek Soccer Club and Wisconsin Youth Soccer. Strengths A potential growth opportunity for the sponsors A potential growth opportunity for the Soccer related sports businesses Growth of sport and social awareness in the Oak Creek Support from the local community, educational institutes and local clubs Willingness of the local clubs to become potential partners in the association and play a vital role in the success of the event The promise of the Milwaukee government to provide Soccer sport facilities to the educational institutes in the near future Available and maintained soccer ground Weaknesses Weak base of the soccer sport in the community Insufficient support from businesses and local politicians Insufficient promotion of

Research and develop knowledge on the Atrio PMS system and apply it to Paper

And develop knowledge on the Atrio PMS system and apply it to the Diva hotel( San Francisco) - Research Paper Example When people arrive at the hotel, they have to stroll past an amazing sidewalk of fame, which is the superb Diva sidewalk that has signatures of celebrity guests and entrance directly in its lobby. Recently, the hotel renovated its structure and now it offers most extraordinary features to its customers (Hotel Diva, 2012). Each room in the hotel has been renovated with the most superb amenities that comprise carpeting with cobalt, headboard sculptured with stainless steel, CD players set inside the room, two telephones that have touch-tone and allow global internet data ports, voicemail and fax machine, latest televisions with VCRs, pay-per-view movies, Nintendo, honor bar showcase that has special items of San Francisco, maid services, and fresh newspapers (Stowe, 2012). All dining facilities are superb: California Pizza Kitchen, which offers inside dining and room service, and Starbucks, which is adjacent to the lobby. Along with dining facility, there are top quality day laundry an d dry cleaning services, parking by valets that offer parking within and outside privileges, workout room with complimentary cardio services, video library that has a range of newly released films, a caretaker lounge that has magazines, brochures of tourism in San Francisco, literature on San Francisco, as well as green apples of Granny Smith and a gourmet coffee. The hotel is fully-equipped for business; it offers wireless high-speed internet access (â€Å"The Future of Hospitality is Here†, 2012). The target market of Hotel Diva comprises rich people looking for best quality services and complete access to all mandatory amenities. According to Creamer (2012), Diva Hotel has a reputation for offering customized services that are in accordance with customer demands; its management supports innovation and even has boutique properties that are providing access to ample services in a nearby location. The main objective of Hotel Diva is to exceed customer expectations by providin g superb quality services and instant access to the most diverse range of facilities (Hotel Diva, 2012). ATRIO Property Management System (PMS) PAR Springer-Miller Systems, Inc., commonly known as PSMS is the wholly owned subsidiary of PAR Technology Corporation, which is recognized globally for providing hospitality management systems that are guest-centric, so that hotels, restaurants and all companies of hospitality industry can effectively manage their operations (ParTech, Inc., 2011). The company is well-known for development of ATRIO system for hospitality industry that can revolutionize the operations of all companies present in this particular industry. ATRIO platform of solutions is believed to be the latest generation of hospitality management software, which have been purchased by and built for hotels so that they can maintain their IT infrastructure (â€Å"ATRIO Guest Experience Management†, 2012). Since technological advancements happen on an ongoing basis, it is crucial for companies to upgrade their IT systems so that they have well-designed IT infrastructures that will allow them to integrate all requirements of hotel businesses; ATRIO is the best alternative for IT solutions, as it allows hotel owners to save money and control their IT cost. Every hotel and resort has a choice of deployment either on premises or on cloud or even a combination of

Obesity Essay Example | Topics and Well Written Essays - 250 words - 10

Obesity - Essay Example In some instances, obesity is caused by genes disorders, psychiatric illnesses, medications, or even endocrine disorders. Stern & Kazaks (2009) explains that the notion that obese people normally eat little food, but they are overweight because of a slow metabolism process in their body, is false. This is majorly because there is little evidence to support these facts. The major treatment of obesity includes exercising and dieting. Dieting involves improving the quality of food an individual takes, by reducing the consumption of food products that are full of energy (Stern & Kazaks, 2009). This includes food substances such as sugar, fats, etc. It is also recommended that an individual should consume food substances that are rich in dietary fiber. Furthermore, there is a need of taking the anti-obesity drugs, for purposes of reducing the appetite of fatty foods. If the use of dieting and exercising is not sufficient, then it is possible to treat obesity through the use of a gastric balloon or surgery. Surgery may help in reducing the volume of an individual’s stomach, or the length of their bowel. This would in turn help in reducing the nutrients that have the capability of causing obesity. Obesity is a widely researched topic in European countries and also in United States. In a research carried out by National Center for Health Statistics, there is an increase in the number of people living with obesity in United States (John Hopkins Medicine, n.d). That is, more than one hundred million people are living with

Comparative business cultures Assignment Example | Topics and Well Written Essays - 2500 words

Comparative business cultures - Assignment Example (Mansfield & Pevehouse, 2000) A multicultural organization consists mainly of 6 key features namely pluralism, structural incorporation, complete amalgamation of unofficial networks, elimination of discrimination and prejudice, equivalent recognition of organizational objectives with all the diverse teams and nominal amount of inter-team conflicts (Cox, 1991). Learned behavior and their consequences been shared or transmitted via those members of the society. (Linton, 1954) Certain companies have created an organizational architecture and model of business behavior which seems innovative in its design and is unparalleled in business (Cole 1995). The purpose of the study is to ensure that the contribution of human behavior is towards the organizational growth which enables to achieve greater efficiency. (Scholte, 2005) Malaysian culture of business is quite different than other Asian countries like china, India, japan etc. (Beeson, 2000) Features of Multicultural Organization: In the following paragraph we are going to discuss about all the six features of a multicultural organization – Pluralism  refers to the mixed group of members in an organization and it also means taking proper measures to involve all the employees entirely that are different in terms of the central group dominating the organization.. There are a number of options for practicing acculturation within the organization, among which the most well-known being: 1. An unilateral procedure by which members of the minority culture take on the values and norms of the principal group within the workplace (this is called assimilation); 2. A course of action by which both majority and minority members of different cultural backgrounds accept some customs and rules of the other group (this is known as pluralism); 3. A state of affairs where there is modest scope of variation from each of the culturally different groups (this situation is referred to as cultural separatism). 4. Diversity trainin g—managerial endeavor to inform and instruct administration and employee about diversity’s advantages to the organization (Kreitz, 2007) The concept of acculturation on the other hand is related to the cultural (customs and attitudes) characteristic of amalgamation of the diverse teams, as contrasting to simply make themselves physically available in the same setting (Buenker & Ratner, 2005, pp.18-20). Full structural integration:  An organization generally comprises of people from various backgrounds and different locations. This involves dealing out with educational specializations and the variations in expertise and treating those evenly all through the organization. Full integration of informal networks:  integration in informal networks in a multicultural organization is fostered through supervising and mentoring programs, particular social occasions and sustaining the cultural groups for the minorities. This element focuses on the stages of enclosure of the m inority-culture employees in lunch/dinner gatherings, athletic and golf outings, and social associations conducted and repeated by organizational managers. It also takes into account the facets of counseling and several other informal developmental aspects within organizations. (Taggart & McDermott 1993) Absence of Prejudice: Any kind of prejudice or bias is

Choosing the Right School Essay Example | Topics and Well Written Essays - 1000 words

Choosing the Right School - Essay Example Therefore, the selection of a school is one of the most important decisions in the life of an individual. This paper discusses some of the factors that need to be taken into consideration while selecting for studying in up to a certain level. the paper addresses the concerns of adolescents, so they are primarily the audience for this paper. There are several factors that need to be considered while evaluating the choices available. An individual can not always decide to join a particular school of its quality of education is good because he/she might not be able to afford the expenses of the school. Schools that have a good reputation among the public and are known for their quality of education are generally quite expensive. An individual needs to select a school that has a good reputation and is also affordable. Affordability and quality are difficult to achieve in the same school, though the school that offers optimum benefits should be selected. The first and foremost trait one l ooks for in a school is the quality of education. The quality of education depends upon the level of commitment of the school administration and the whole staff of the school with their duties and responsibilities in the school. The quality is not merely an outcome of the selection of curriculum. In many schools, the curriculum is quite rich and thoughtfully designed, yet it does little to improve the intellect of the children. The real determinants of the quality of education are the tutors. Some teachers are so committed to their job that they encourage the students to approach them out of the regular duty hours if they have any problems, in education or otherwise. They do not even mind if the students come up with personal problems that have no educational significance. They are the spiritual guides and counselors of students in addition to being their teachers. In the company and under supervision of such a teacher, students tend to build strong ties with the education and take interest in the studies. This essentially speaks of the quality of education. In addition to the teachers, the school administration also plays a fundamental role in determining the quality of education. They may or may not participate directly in the education, but they have an important duty of establishing the educational setup, which has both direct and indirect impacts on the education. An individual should consult the students and their parents regarding these factors in a school before deciding to join it. Another factor that has a lot of weight in the consideration of a school for joining is the distance of the school from an individual’s home. The expenses of a school can significantly increase if the school is far away from the home because of the additional charges of transport to the school. Some people tend to live in a hostel in order to study in a particular school of their choice which has its own repercussions. Life in a hostel can be very unsuitable for some people. Living in a hostel is totally different from living in the home while studying. There are so many distractions in the culture of a hostel that an individual may find it very difficult to concentrate upon the studies while living in the hostel. In a hostel, the individual may have to share his/her room with others which can have negative impact on the individual’s tendency to gain education. Quite often, people acquire negative habits when they start to live in the hostel like smoking and drinking under the

Bombardier Transportation & the Adtranz Acquisition Essay Example for Free

Bombardier Transportation the Adtranz Acquisition Essay Bombardier had evolved from its humble beginnings as a snowmobile manufacturer based in Joseph-Arman an Bombardier’s garage to a global business in which it’s once core recreational products were over shadowed, on a revenue basis at least, by its offerings in transportation, aerospace, and capital. In every segment in which the company operated it was either number 1 or 2 globally. This was not the case for the Transportation group (BT) in Europe, where in 2001 it sat in fourth place behind Alstom, Siemens and Adtranz (AT). However, the AT acquisition presented the opportunity to vault BT to the forefront of the industry. At a price tag of US$715 million (23% of AT’s 2000 revenue) AT was a bargain and an opportunity worth considering for several reasons: Revenue Growth : Unlike all other Bombardier businesses, BT’s revenue was counter-cyclical so growth in the sector would provide better balance to its overall revenue (Figure C1 in Appendix C).With the addition of AT, BT’s annual rail-related revenue could grow to US$7.6 billion in 2001 (up from US$2.2 billion in 2000) with a backlog of US$14.5 billion. 1 While BT was a low margin business it was a cash generator that helped to finance other Bombardier businesses. Geographic Expansion : AT had a presence in a broader range of European markets and the region was viewed as the center of technological development. Asia and South America utilized European engineering and practices so AT provided BT better access to future markets. Completion of Product Portfolio : BT lacked propulsion system and train controls competence. This had been mitigated by outsourcing to competitors and suppliers; however it was a competitive weakness as was exemplified by AT’s exclusion from a key deal in the UK in 2000. AT excelled in these areas, and provided immediate cost synergies and long term strategic strength. Naturally the acquisition was not without its downside. There were many aspects of the deal that warranted consideration: Acquisition Size: While BT had a successfully track record of acquisitions it had never integrated a company of AT’s size. Based on 2000 figures, AT had nearly 40% more employees, just under 50%more in sales, and operated in 60 locales. The differing company structures were also of concern. Financial Performance: AT posted net losses going back 4 years in spite of restructurings. Even at a bargain purchase price, an unsuccessful integration could threaten BT’s income and cash flow. Due Diligence: AT was understandably reticent to let a competitor gain full access to its â€Å"books† should the deal not complete, so BT’s diligence process was not comprehensive. Furthermore BT’s European management had not participated in the deal; only amplifying the potential risks. Customer Loss: The acquisition could trigger the loss of customers or new contracts. Additionally, AT had earned a reputation for poor production and servicing that competitors could exploit. A comprehensive plan would be required to realize the projected synergies, tackle the above noted concerns, and should the deal clear anticipate and address regulator stipulations.

Women in the Criminal Justice System

Women in the Criminal Justice System The Canadian criminal justice system, an outwardly fair system of integrity and justice, is a perfect example of a seemingly equal situation, which turns out to be anything but for women (Gunnison et al., 2016, p. 32). The policies and programs imposed in the criminal justice system affect men and women in extremely dissimilar manners. In particular, both men and women are subject to imprisonment, but little attention has been given to the various needs and problems of imprisoned women as opposed to those of men (PRI, 2012, p. 1). This omission is primarily due to the fact that women constitute a minority in most prison systems that are predominantly designed, organized and administered with the male population in mind (Gunnison et al., 2016, p. 26). As such, women in the criminal justice system face many problems; some resulting from their lives prior to imprisonment, others resulting from their imprisonment itself. In order to understand how gender relates to crime and the criminal justice system, it is crucial to examine the situation of incarcerated women (Williams, 2004, p.6). Therefore, in this critical book review, I will analyze aspects of George Carons, Mouse on a String at the Prison for Women, paying close attention to its strengths and weaknesses, and will consider any emerging themes and connections in relation to the relevant course material. Mouse on a String at the Prison for Women by George Caron is a personal narration of his time working as a warden at the Prison for Women (P4W) in Kingston, Ontario. As the youngest warden in Federal Corrections at the time, Caron gives an inside view of life behind the bars for female offenders during the 1980s through the use of anecdotes, history and recollection. In his book, Caron recalls prison life and justice, as well as the many individuals that were incarcerated at P4W, particularly focusing on an inmate nicknamed Mouse. This memoir is very thorough as it touches upon many aspects of prison life, including drugs, illicit weapons, relationships, violence and sex. Throughout, Caron portrays both the justices and injustices that are present inside the prison, from kind-hearted nurses that do more than expected to inmates abusing the criminal justice system to meet their needs. This book is truly fascinating and intriguing, partly due to the mystery surrounding female prisons, but mostly because of the greater themes that are entwined within the inmates stories. Several common themes that were portrayed include: loss of freedom, compromise, fear and injustice. These themes were clearly evident in the transformation of some of the inmates and their journey towards redemption. In particular, Mary Ann, affectionately referred to as Mouse, embodied most, if not all of these themes as she progressed from a shy and insecure woman inside the prison and emerged as a confident and educated woman on her return into the community. A prevalent concept discussed in the course and mentioned periodically by Carol is the issue of dealing with mentally ill inmates. He states that some inmates entered the prison system and came with deep-rooted psychological and mental health issues and the prison environment was the final depository of those with scarred human frailties . . . (Caron, 2009, p. 177). According to research, female inmates are at higher risk of harming themselves or attempting suicide in comparison to men in prison, due to the higher level of mental illness and the harmful impacts of isolation from the community (Williams, 2004, p.7). Moreover, studies indicate that since a large proportion of women have mental healthcare needs, diverting them to a suitable gender-appropriate treatment program would address their needs much more effectively than the harsh environment of prisons (PRI, 2012, p. 6). This may also explain some of the factors behind the suicide of Ashley Smith, who had mental health issues b ut was placed in solitary confinement (CBC News, 2013, p.1). This further relates to the conflicting dual mandates of corrections, where incarceration should both punish individuals and rehabilitate them. As discussed in class and based on supporting research, prison is not the proper environment for female inmates as they require specialized mental-health facilities and trained professional mental-health staff to adequately address their needs (Gunnison et al., 2016, p. 286). In addition, female Aboriginal offenders are a key course topic that is also discussed by Caron. He mentions how he was saddened to see so many Aboriginal women in prison with backgrounds of poverty, unemployment, poor health, and alcohol and drug abuse (Caron, 2009, p.15). Carons observations are supported by recent research which found that factors like education, unemployment and poor living conditions are directly associated with arrest and incarceration of Aboriginal women in Canada (Gunnison et al., 2016, p. 84). Studies of institutions across Canada found the Aboriginal group to be less educated, more dysfunctional and from more aberrant family backgrounds than the non-Aboriginal group. Moreover, according to the 2011 Statistics Canada data, 22.7% of Aboriginal people aged 25 years and over had not completed high school and that year, the unemployment rate among Aboriginal people was 13.9%, compared to 8.1% among non-Aboriginal people (Scott Smith, 2011, p.1- 2). The vast maj ority of inmates had dependents but no steady employment and considerable prior involvement with the criminal justice system. Furthermore, Wesley (2012) found that Aboriginal women reported more physical abuse and suicide attempts in their lives than non-native women (p. 3-4). Essentially, the needs of Aboriginal peoples, who are systematically overrepresented in all aspects of the criminal justice system, are not being adequately addressed in the traditional prison system (Wesley, 2012, p. 6). Supported by the Native womens suicide in P4W, female Aboriginal offenders needs were not met then and based on recent research, they are not being met now either (Caron, 2009, p.15). All texts carry perspectives and biases, so it is possible that the author of this book already had some preconceived notions about prison and unconsciously or consciously wrote those notions in his book (McCullagh, 2000, p. 39). The author is a young male with a native background and this can affect how he views prison and consequently how his story is written (Caron, 2009, p. 15). Some voices that are missing from the book are the voices of the inmates, as their stories are simply told from the authors point of view. As such, it would be interesting to read some of the inmates own thoughts and beliefs regarding life inside P4W without the authors personal interpretation. Before reading this book, I already had prior experience volunteering with offenders and programs in prison. As such, it is possible that my pre-conceived notions and beliefs regarding incarceration may have impacted my interpretation of the book. Also, I grew up in a culture where it was very rare that a woman would commit an offence, much less be incarcerated. Therefore, I have a very different perspective of female criminality and incarceration than the author. As previously mentioned, this book is very interesting and I enjoyed reading it. I thought that an important component of the book is that the author did not avoid revealing tragic events that occurred and presented the reality of incarceration through the perspectives and stories of different inmates. This allowed a much more immersive and engaging experience for the reader. Some the parts that I disliked were the authors occasional crude description of the female inmates. This seemed to sexualize the inmates as there were repeated comments about attractiveness and breast size. For example, the author describes one of the inmates as a very attractive twenty-eight-year-old woman with long, blonde hair and large, firm breasts. She was a sexy woman who used her assets well (Caron, 2009, p. 60). Nevertheless, I would recommend the book to anyone interested in womens prisons, whether for educational purposes or casual reading, as it gives a good account about the P4W and life behind bars for female inmates. This book had several key strengths that made for a memorable reading. A particular strength is the depth of emotions that the reader is exposed to through the unique writing style of the author. The author wrote in such a way that the reader was emotionally invested in the inmates and could only anticipate what happens to them. For example, Mary Anns background story allowed the reader to have a glimpse into her past and circumstances that led to her criminality (Caron, 2009, p. 48-50). This allowed the reader to sympathize with Mary Ann and understand that while the criminal act itself is wrong, Mary Ann was only a confused and vulnerable woman at the time. This observation is important as it is very common that some matters are depicted as being solely black or white. However, after reading the personal story of Mary Ann, it allows for the possibility of a gray area different apart from the seemingly only two choices available. Moreover, throughout her story, the reader witnessed the immense growth that Mary Ann went through as she acknowledged her mistakes and sought for forgiveness. By the end of Mary Anns story, she had transformed from a mere statistic of female offending to a real individual in the eyes of the reader. Another strength of the book is the many facets of prison life that are mentioned. The author discusses both legal and illegal events that occur inside the prison, allowing for a more thorough understanding of the reality of prison. Some of the actions of the author may be considered as illegal and overstepping his bounds as warden, but the reader is able to clearly see why the actions may be morally appropriate, if not legally. For example, the author arranged for beer to be smuggled inside the prison in order to treat an inmate who was medically ill (Caron, 2009, p. 77). This was illegal as no alcohol was allowed inside the prison, but it allowed the reader to recognize that the prison staff truly wanted to help inmates despite the possibility of punishment. Despite its strengths, this book also had some weaknesses. A major weakness of it was the lack of discussion regarding the incidents that contributed to P4W being closed. During the time period of the book, there were many external complaints and reports written petitioning for the closure of P4W (Arbour, 1996, p. 31). However, despite the significance of these complaints, the author did not mention at all any problems that may warrant the closing of the prison. One would assume that something this important should have been discussed in length or at least mentioned in the book. In conclusion, Mouse on a String at the Prison for Women by George Caron is a fascinating account of life behind bars for female offenders at P4W. Discussing female criminality, one cannot stop mentioning their lives after being sentenced. Thus, it is important to look at incarcerated female offenders as a unique subset of the offending population and should be treated as such. This is why Carons memoir is important as it allows the reader to get a glimpse into how gender intersects with our understanding of crime and the criminal justice system. References Arbour, L. (1996). Commission of Inquiry into Certain Events at the Prison for Women in Kingston (Commission of Inquiry into Certain Events at the Prison for Women in Kingston (Canada), Solicitor General Canada). Ottawa, Ont.: Public Works and Government Services Canada. Caron, G. (2009). Mouse on a string at the Prison for Women. Renfrew, Ont.: General Store Pub. House. CBC News. (2013). Ashley Smith coroners jury rules prison death a homicide. CBC News. Retrieved March 21, 2017, from http://www.cbc.ca/news/canada/new-brunswick/ashley-smith-coroner-s-jury-rules-prison-death-a-homicide-1.2469527 Gunnison, E., Bernat, F. P., Goodstein, L. (2016). Women, crime, and justice: balancing the scales. Chichester, West Sussex, UK: John Wiley Sons. Mccullagh, C. B. (2000). Bias in Historical Description, Interpretation, and Explanation. History and Theory, 39(1), 39-66. Retrieved March 21, 2017, from http://thedailyjournalist.com/wp-content/uploads/2014/01/Bias.pdf PRI. (2012). Access to justice: discrimination against women in criminal justice systems. Penal Reform International. Retrieved March 20, 2017, from https://www.penalreform.org/resource/access-justice-discrimination-women-criminal-justice-systems/ Scott, K., Smith, K.. (2011). Aboriginal peoples. Retrieved March 21, 2017, from http://www.statcan.gc.ca/pub/11-402-x/2011000/chap/ap-pa/ap-pa-eng.htm Wesley, M. (2012). Marginalized: The Aboriginal Women s experience in Federal Corrections. Retrieved March 19, 2017, from https://www.publicsafety.gc.ca/cnt/rsrcs/pblctns/mrgnlzd/mrgnlzd-eng.pdf Williams, L. M. (2004). Women, crime and the criminal justice system. New York, NY: Feminist Press at the City University of New York.

Acquisition Of An Aircraft Manufactory Management Essay

Acquisition Of An Aircraft Manufactory Management Essay In this section, Balogun Hope Hailey (1999) (cited at Johnson and Scholes, 2002) and leadership theory (Handy 1993) will be use to analysis the evaluation of the challenges faced by Rolls Royce acquisition of a competitor. 9 Leadership Analysis 10 Appendix D-Value Chain 19 Introduction Rolls-Royce was established by a small group of employees for engine in 1981; today the brand means more than engineering excellence (Roll Royce website). Simon Robertson was Chairman from 2004 to now (Rolls-Royce Annual Report 2009). By the mid 1980s, a headquarters was set up in London. The company has four different ancestral companies and products in Bristol, Coventry and  Derby. There are several allied group at Hucknall, Leavesden and in Scotland at East Kilbride and Hillington (Roll Royce website). Roll-Royce has four key markets includes civil aerospace, defense aerospace, marine, energy and nuclear more recently. Rolls Royces main rival is GE Engines. Rolls Royce was better position than its competitors as most of its engines are relatively new. Analysts predict that airlines are likely to ground older planes, leaving Rolls Royce with the lucrative spares and maintenance market. (Walker, 2010) Rolls-Royce revenue are increased  ¿Ã‚ ¡916 million from 2008 to 2009. The revenues are grown from three main market, including marine market increasing 17% arrived at  ¿Ã‚ ¡2589 million, defense aerospace add 19% arrived at  ¿Ã‚ ¡2010 million and the most raise at 36% in energy businesses had a strong performance in 2009, which from  ¿Ã‚ ¡755 million to  ¿Ã‚ ¡1028 million with revenues up by 36 per cent to over 1 billion. The revenue from civil aerospace business was decreased 21 million from 2008 to 2009. Because of the group maintains that a number of currency cash balances throughout of the whole year. The significant foreign exchange rates in 2009, and cash balances were reduced  ¿Ã‚ ¡141 million by retranslation at end of the year and hence total cash flow was dropped at  ¿Ã‚ ¡(183) million(Rolls-Royce Annual Report 2009). Analysis of the Current Business Environment Affecting the industry Macro-environment The PESTLE analysis (Appendix A) will forces on civil aerospace engine sector. Under the economic recession that is directly influence on the civil aerospace engine sales and redundant some staffs. But for the future view, the governments supported from RD. Aerospace industry trend is expected to receive large orders for civil aircraft mainly from the emerging Asian countries, such as China, India etc. Much of the regulations are followed by International Civil Aviation Organization. The aerospace industries put the money on new materials finding and using, in order to reduce the climate changes, and innovated to reduce the noise. In future trends, aerospace industry needs to tackle the problems of climate changes and engine noise. Joint venture is the normal way in order to developing industries; hence the revenant laws will be followed. Micro-environment Porters Five Forces analysis (Appendix B) described that the threat of entry in civil aerospace engine is lower, because the industry needs high technology machine and high skills of employees to using and it is quite expensive for entry the industry. Threat of substitution in aerospace engine industry also lower, because finding new materials or new technology to replace is difficult or quite expensive. Aerospace engine industry has several suppliers; they have the choice to find out the best suppliers, such as there has several material suppliers in existing market, the engine industry have higher power to choice the quality and negated with the price. It can be influence on the industry compatibility but not strongly. Hence, there is Low to Medium power of suppliers. The power of buyers is quite strong, which from medium to High power of buyers. It is influence on the industry, for example prices, technology training, and the repair and overhauls expertise of whole industry supply chain system and dedicated support of established worldwide customers. The industries have the large commercial buyers and have huge influences on industry revenues. It is medium to high for the competitive rivalry in aerospace engine industry; there has several existing competitors, such as Hampson Industries; Honeywell International; Safran; and GE etc. Although it is difficult to entry and substituted in this industry, some of these competitors have stronger engineering, manufacturing and marketing capabilities than Rolls-Royce (Datamonitor, 2009). Main opportunities and threats For Aerospace industry, the current threats are financial crisis and the barrier entry. The industry requires high technology and finds new material in order to reduce the noise and climate changes. We expect to grow the market share by exploring new geographic location in 2010 and by increasing the product portfolios (Metal central news 2009) It is difficult and more expensive for the innovation of new technology and finds new material for using within the aerospace industry. More recently, aerospace industry is increasing slowly in Europe countries. But there are still has the opportunity in Asian market, such as China and India etc (ICAO annual report, 2008). The industries are suggested the government to reduce the barrier entry into the market, due to increasing technology and find out the new materials (BBC News, 2009). Technology has the opportunity for industry developing in the future. Current technology was complained by several organizations, such as Greenpeace etc, it has published the second edition of the Energy Revolution scenario, which shows a global plan for a sustainable renewable economic future. It shows where the industries need to be to avoid a climate change disaster (Greenpeace, 2009). Under the pressure of those organizations that effects on the developing new technologies, due to reduce noise and climate changes. It still has the threats in entry barriers; lower barrier can help industry to find other materials or technology innovation, but not sure is the best way. Analysis of Rolls Royce Strategic Capabilities Roll Royce strategic capabilities analysis will be followed by Gerry et al (2009), which states the way of diagnosing organizational capabilities includes analyzing value chain to understanding the value to their customers; and resources to the relative performance of organizations. At the end of this section the summary of strengths and weaknesses will be given. 3.1 Value Chain Analysis (Appendix D) Primary activities The company is a leading supplier of civil, defense, marine, and energy. From the value chain primary activities shows that Rolls Royce has inventory control system, equipment maintenance, for finished engine products will to their inventory, and then distributed to their customers. Customer support, repair service, and training will be given for customers. Qualities service Corporate Care is engine maintenance cost programme available in the market for Rolls-Royce engines because it includes the experience and technical excellence of the engine manufacturer, the repair and overhaul expertise of Rolls-Royce, and the dedicated support of an established worldwide customer support organization. It can reduce the risks and costs maintains, reduce capital investment for fewer spare parts and tools, it is benefit from a world-wide network of support focused on the needs of corporate company operators. The network is always for 24/7. Strong orders The company has recorded increase in its order book. Such as civil aerospace engine total order book increased at a compound annual growth rate (CAGR) of 21%, from  ¿Ã‚ ¡35.9 billion in FY2007 to  ¿Ã‚ ¡45.9 billion in FY2008. Strong order indicates significant demand for the companys products in the market. Rolls-Royce, the engine manufacturer, has won a $2 billion ( £1.2 billion) contract, with United Airlines placing its first new aircraft order in 12 years (The times, 2009). It also assures a stable flow of revenues in the medium term period. Support activities Technology Development For support activities technology development are directly concerned with new technology to reduce noise and new material improvements to reduce climate changes and increase costs efficiency. There are some relevant programmes in some university in order to improve the new technology development and high technology employees training and recruitment. Because of high technology that skills training will be given for their staff. Both GE and Rolls Royce have invested more in research and development. General Electric has announced it will spend six billion dollars between now and 2015 on innovative healthcare technology (BBC News, 2009). Human Resource Management Rolls-Royce has registered comparatively strong revenue per employee. During FY2008, the company recorded revenues of  ¿Ã‚ ¡9,082 million with a total of 39,000 employees. The revenue per employee of the company stood at $432 (Rolls Royce Preliminary Result, 2009), which is higher than that of its close competitors GE. The revenue per employee of GE stood at $331 (GE Annual report, 2009) significantly lowers than that of Rolls-Royce. Relatively strong revenue per employee of the company, as compared to its competitors, indicates stronger productivity. Firm infrastructure The main competitor General Electric (GE) report shows that energy Infrastructure segment revenues decreased 4%, or $1.4 billion, in 2009 as higher prices ($1.3 billion) were more than offset by lower volume ($1.6 billion), the stronger U.S. dollar ($0.7 billion) and lower other income ($0.5 billion), primarily related to lower earnings from associated companies and marks on foreign currency contracts. GE Capital losses seem to have peaked although commercial real estate continues to be challenging said by BBC News (2010). Because of revenue mix and higher RD, Rolls Royce has lower profits (BBC News, 2009). There has challenging for Rolls Royce in RD department underlying economic downturn. Main Strengths and Weaknesses The main weakness for Rolls Royce was lack of inventory. Rolls-Royce has been receiving higher orders in the past few years. Strong order indicates significant demand for the companys products in the market. At the mean time, it puts higher pressure on the companys that controlled inventory. The companys inventory has increased at 19% at compound annual growth rate (CAGR)  ¿Ã‚ ¡1,845 million in FY2006 to  ¿Ã‚ ¡2,750 million in FY2009. The inventory turnover ratio declined from 4.5 to 3.6 from FY2006 to FY 2009. The lower ratio states poor sales and excessive inventory conditions. It describes the company are under the pricing risks from their competitors. It has quality service Engineering and Product Support for after sales, the aim of providing the customer with the right training, includes current service operations, maintenance practices and trouble-shooting procedures. The company has a widely geographic. Rolls-Royce primarily operates across regions, such as Americas, Asia, Australia, Europe, Middle East and Africa. The diversified and fairly spread revenue ensures that the company does not rely on any one market for a majority of its revenues, at the mean time, it reducing its business risk in the highly variable industry. Investments in research and development are major to take advantage of the expertise on their in-house know, and the constant searching to effects on the capabilities of business partners, also influence on research funds and leverage the applied of needs in each global markets. RD department and plays core competency role lead to the company. The company has high relative for employee productivity. It also assures a stable flow of revenues in the medium/long term period. Quality services provide Rolls Royce has distinctive capability to competitive with competitors. (SWOT analysis summary in appendix C) Evaluate of Rolls Royce possible future strategies There are two future strategies using in the future, one is acquisition of an aircraft manufactory and the other is acquisition of a competitor. Ansoffs matrix (Richardson and Evans, 2007), and Suitability, Feasibility and Acceptability (SFA) (Johnson and Scholes, 2002) analysis will underling in this section. 4.1 Acquisition of an aircraft manufactory Rolls Royce was one of the aircraft suppliers (BBC News, 2007). It describes a related diversification in vertical forward integration strategy with Rolls Royce. It is more suitable for Rolls Royce current position. The company core business is engine service; it will help extending core along the supply chain to improve information based and strengthen competitive position. Due to explore new competence that the company investment in new arena. Because of aircraft suppliers, the company has more necessary resources to supported, such as technology and finance. Aircraft industry more likely to engine industry, which has lower competitive rivalry in aircraft manufactory because of high cost and high technology, it also has high profits for Rolls Royce entry into this area. There is the different area, management styles are different, and it is more risks to facing for the company. Under economic recession in 2008 that aircraft industry market shares are decreased, hence, the writer thinks this acquisition is not as the right time and right cost. 4.2 Acquisition of a competitor Rolls Royce was the famous engine company; acquisition of their competitors strategy the major is market development and market penetration. This strategy is suitable for company current conditions. Through the economic downturn, the shares are decreasing and market declining, in order to maintain market shares, acquisition of competitors is the right time and right costs strategy, which can build on strengths through the innovation and continued investment. It is medium to lower risk by exploiting current strategies. The company tries to range widely market from the same country (market development) or go abroad (market penetration). It will help them to extending their current supply chain lines and improving their market shares without increasing competitive rivalry. Rolls Royce share price is starting to reflect the very long-term visibility of future profits. But the valuation hardly looks over-generous for one of the worlds great manufacturing businesses. Unlike Cadbury, Rolls Royce are lucky, the Government has a golden share in the company (Wighton, 2010). The secret is a long-term strategy that has at last come good Sir Rose, whos Rolls Royce years long-serving chief executive, he states the benefits of expanding after-sales service rather than relying solely on sales of new engines (OConnell, 2009). Although the company faces to change or adoption the culture problems at acquisition, there are more benefits and lower risks than acquisition of aircraft manufactory; the writer is recommendation of company acquisition for competitors. 4.3 Alternative strategy Rolls Royce could be use strategic alliance to compete with their rivalry. The alliance is significance to continue company parent firms of current and anticipated core businesses, markets, and technologies (Parkhe, 1993). They may share the resources of products, distribution channels, manufacturing or inventory capability, new product funding etc. through the alliance, the alliance aimed to get the benefits that will be better than individual efforts. 5. Evaluation of the Challenges Faced by Rolls Royce as it Implements Strategic Change In this section, Balogun Hope Hailey (1999) (cited at Johnson and Scholes, 2002) and leadership theory (Handy 1993) will be use to analysis the evaluation of the challenges faced by Rolls Royce acquisition of a competitor. Changing strategy Followed by Rolls Royce acquisition with their competitors, some of things need to evaluate and implement change. Rolls Royce acquisition with competitors is beneficial for the nature of change in an organization to be incremental. At this way, it will build for skills, routines and beliefs in the organization. Hence, the change is efficient and seems to a winner with their commitment (Johnson and Scholes, 2002). It not needs to fast to change it, because there has several existing rules or aspects of their original organization, and focus on earn the profits with organization. For engine industry, this not goes fast with new technology growth or finds new material to use. This will be aspect their experts has diversity of experiences, views and opinions with an organization, but supposing that organization has followed a strategy with Rolls Royce, and leading to a very homogeneous way of seeing the world. Rolls Royce needs to select the acquisition company system which are better or suitable for Rolls Royce, and improved it. The aim to company acquisition is that they want to produce their product in the world wide, and get more or new markets. At the mean time, supply chain database needs to improved, operational data technology needs to improve. The company also needs to improve their utilizing global support network applying by the industry development. Leadership Analysis Mr. Robertson is Independent Non-Executive Chairman of the Board of Rolls-Royce Group PLC in 2005. Robertson was appointed to the Board in 2004 (Rolls Royce website). His appointment comes at an important time for Rolls-Royce with the UK aero-engine maker having just been selected to provide Trent engines to the launch customer for the new Boeing 7E7 Dream liner. Based on his points, Rolls Royce has also won the lions share of orders to power the new Airbus A380 super-jumbo (Harrison and Michael 2004). It is show that he has very knowledgeable in this specific area; he can provide leadership in virtually in the situation. Robertson was a big Tory donor; the Conservatives would work with Rolls-Royce to develop strategies for a manufacturing revival, in a sign of his partys determination to find the corporate vote with business-friendly policies (Eaglesham, 2009). Rolls Royce has initiative new economic strategy based on the foundation stone of the government policies. This is defined by Robertson (2009) What does this mean? It is includes research and innovation; education and skills. This strategy is benefits for Rolls Royce future development; it is supported by government to improve transport, research and innovation, and education and skills (Eaglesham, 2009). It is illustrates the leader has the general style of leadership that is appropriate to the organisation and the context. 6. Conclusion Rolls Royce has a good company performance, although there has some risks facing in the company under the economic recession. Rolls Royce has also expanded its energy and marine businesses in recent years, it also expects a pickup in sales as new aircraft such as Airbuss A380 and Boeings 787 move into full production mode after years of hold-ups (Wilson, 2010). New product and worldwide range decision makes challenging and opportunity for the company. Strong leadership management leads to company to the right direction and make more profits. The author have strong recommend for investors to invest in Rolls Royce. Reference: Aerospace Technology (2008) A Dream Run Rolls-Royce Trent Engine, Available on: http://www.aerospace-technology.com/features/feature2019/ Arman, H., and Foden, J (2010) Combining methods in the technology intelligence process: application in an aerospace manufacturing firm, RD Management, Volume 40, Issue 2, Pages 181-194, Wiley [Online]. Available on: http://www.interscience.wiley.com Arman, H., and Foden, J (2010) Technology management at Rolls Royce: A framework for manufacturing technology innovation must be systematic, robust and transparent, Industrial Research Institute, Vol53 (2) Pp. 33(10), Ebsco [Online]. Available on: =http://www.ebscohost.com/ BBC News (2010) General Electric first quarter earnings fall 18%, Available on: http://news.bbc.co.uk/1/hi/business/8625793.stm (Accessed: 23 April 2010) BBC News (2007) Rolls Royce wins BA engine deal, Available on: http://news.bbc.co.uk/1/hi/business/6518419.stm Boeing website, Available on: http://www.boeing.com/commercial/787family/background.html Datamonitor (2009) Rolls Royce Group plc, Emeral [Online]. Available on: http://www.emeraldinsight.com/Insight/viewPDF.jsp Eagelesham, J (2009) Cameron seeks manufacturing revival, FT [Online]. Available on: http://www.ft.com/cms/s/0/4429b008-1bd0-11dd-9e58-0000779fd2ac.html European Commission Enterprise and Industry (2009) Regulatory Environment, Available on: http://ec.europa.eu/enterprise/sectors/aerospace/regulatory-environment/index_en.htm European Commission Enterprise and Industry (2009) Research, Available on: http://ec.europa.eu/enterprise/sectors/aerospace/research/index_en.htm GE annual report (2009), Available on: http://www.ge.com/ar2009/pdf/ge_ar_2009.pdf Greenpeace (2008) Energy Revolution Report, Available on: http://www.greenpeace.org/raw/content/international/press/reports/energyrevolutionreport.pdf Gurau, C (2007) Porters generic strategies: a re-interpretation from a relationship marketing perspective, The Marketing Review, Vol: 7(4), pp. 369-383(15), Swetswise [Online], Available on: www.swetswise.com Harrison, M (2004) Rolls-Royce chooses Simon Robertson as its new chairman, The Independent, Available on: http://www.independent.co.uk/news/business/news/rollsroyce-chooses-simon-robertson-as-its-new-chairman-532237.html Handy, C (1993) Understanding Organisations, Penguin Books ICAO annual report (2008), Available on http://www.icao.int/icaonet/dcs/9916/9916_en.pdf Mondag Business Briefing (2009) Defense spending and aircraft grows, Available on: http://www.thefreelibrary.com/Throttling+Back:+Midyear+Outlook+For+The+Global+Aerospace+And+Defence-a0204500118 Naval technology (2008) Rolls-Royce sets a First in Defence E-Commerce, available on: http://www.naval-technology.com/contractors/propulsion/rolls/press2.html OConnell, D (2009) Rolls-Royce flies high despite airlines nosedive, The Sunday times [Online], Available on: http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article6736024.ece Parkhe, A (1993) Strategic alliance structuring: A game theoretic and transaction cost examination of interfirm corporation, Academy of Management Journal, Vol. 36, NO. 4, PP.794-829 Parliament UK (2005) The UK aerospace industrys current performance Available on http://www.publications.parliament.uk/pa/cm200405/cmselect/cmtrdind/151/15106.htm Parliament UK (2005) Conclusions and recommendations, Available on: http://www.publications.parliament.uk/pa/cm200405/cmselect/cmtrdind/151/15109.htm Parliament UK (2009) Aerospace: Research and Development Question Asked by Lord Jones, Available on: http://www.publications.parliament.uk/pa/ld200910/ldhansrd/text/100113w0001.htm Pfeifer, S (2008) Rolls-Royce and BAE in recruitment push, FT [Online]. Available on: http://www.ft.com/cms/s/0/0601ba74-f389-11dc-b6bc-0000779fd2ac.html Rolls Royce annual report (2009), Available on: http://www.rolls-royce.com/reports/2009/index.shtml Richardson, M., and Evans, C. (2007) Strategy in Action Applying Ansoffs Matrix, Manager: British Journal of Administrative Management, Vol: 59, I (3), Ebsco [Online]. Available on: http://www.ebscohost.com Rncos E-Services Pvt. Ltd (2009) Global Press Release Distribution Civil Aerospace to Dominate the US Market, Available on: http://www.usgovernment-news.com/?prID=28195 SBAC Aviation and Environment Briefing Papers (2009), Available on: http://www.aerospace-technology.com/downloads/whitepapers/design/file1173/ Staff of Metal Center News (2010) Distributors Delighted 2009 is in the Past, Metal Center News, Ebsco [Online]. Available on: http://www.ebscohost.com Strategic Direction (2008) Create communities of practices to improve organizational performance: The technology-intensive case of Rolls-Royce, Strategic Direction, Vol 24 (1) pp. 18-20, Emerald [Online]. Available on: http://www.emeraldinsight.com The times (2009) Airbus order brings $2bn in sales for Rolls-Royce, Times [Online]. Available on: http://business.timesonline.co.uk/tol/business/markets/united_states/article6949382.ece Walker, B (2009) Rolls-Royce job losses, BBC News [Online]. Available on: http://www.bbc.co.uk/radio4/today/reports/archive/features/rollsroyce.shtml Wighton, D., (2010) Rolls keeps rolling along, Times [Online]. Available on: http://business.timesonline.co.uk/tol/business/columnists/article7024303.ece Wilson, A (2010) Rolls-Royce sees profit flat in 2010, Telegraph [Online]. Available on: http://www.telegraph.co.uk/finance/newsbysector/industry/7646705/Rolls-Royce-sees-profit-flat-in-2010.html

Nathaniel Hawthorne’s Young Goodman Brown Essay -- Young Goodman Brown

Nathaniel Hawthorne’s Young Goodman Brown   Ã‚  Ã‚  Ã‚  Ã‚  Nathaniel Hawthorne’s â€Å"Young Goodman Brown† captivates the reader through a glimpse of the Puritan church. The story also shows the struggle of good versus evil in the main character Goodman Brown. The role of the Puritan church is crucial in shaping Goodman Brown’s personality and helping the reader understand why he was reluctant to continue his journey.   Ã‚  Ã‚  Ã‚  Ã‚  Ã¢â‚¬Å"Puritanism, movement arising within the Church of England in the latter part of the 16th century that sought to purify or reform, that church and establish a middle course between Roman Catholicism and the ideas of the Protestant reformers† (Puritanism 1). The term Puritanism was referred to as an insult that was attached by traditional Anglicans who wished to purify the Church of England. The Encarta Online Encyclopedia states that the term Puritanism has often been used as a term of abuse in a way that does little justice to historical Puritanism. For instance, when a rigid moralism, the condemnation of innocent pleasure, or a religious narrowness is characterized as Puritanical (1). Puritanism was founded on the principles and beliefs of John Calvin, and one of the major ideals they focused on was the doctrine of predestination. Calvin believed that the grace of God was the ticket into Heaven and that his grace could not be earned. God’s gra ce was bestowed upon a select few regardless of what they did to earn it. This doctrine stated that God determines a man’s destiny, whether it be redemption or condemnation, regardless of any worth or merit on the person’s part.   Ã‚  Ã‚  Ã‚  Ã‚  Great pains were taken to warn members and especially children of the dangers of the world. Religiously motivated, they were exceptional in their time for their interest in the education of their children. Reading the Bible was necessary to giving the righteous life. Three diversions were banned in the Puritan society: drama, religious music, and erotic poetry. They believed that these led to immorality. Music in worship created a dreamy state which was not conducive to listening to God.   Ã‚  Ã‚  Ã‚  Ã‚  Each Puritan congregation was to be individually responsible to God, as was each person. The New Testament was their model, and their devotion so great that permeated their entire society. People opposing theological views were asked to leave the community or to be converted. Their... ...heir followers to doubt themselves and their community so much that a reality in which one could achieve grace did not exist. Hawthorne describe this mindset in the story of Goodman Brown. Hawthorne loaded the story with tones of references to the Puritan religion. Works Cited Campbell, Donna M. â€Å"Puritanism in New England.† Literary Movements (2002).Hill Center Lab, Kentucky State University. 1 July 2002.   Ã‚     Ã‚  Ã‚   http://www.gonzaga.edu/faculty/campbell/en1310/purdef.html Dudley. William, and Teresa O’Neill, Eds. Puritanism: Opposing Viewpoints. San Diego:  Greenhaven Press, Inc. 1994. Feldmeth, Greg D. â€Å"US History Resources†. 29 June 2002.   Ã‚  Ã‚  Ã‚  Ã‚   http://home.earthlink.net/~gfeldmeth/USHistory.html Hawthorne, Nathaniel. â€Å"Young Goodman Brown†. Literature and the Writing Process.   Elizabeth McMahan, Susan X Day, and Robert Funk. 6th ed. Upper Saddle River: Prentice, 2002. â€Å"Puritanism†. Microsoft Encarta Online Encyclopedia Deluxe (2002). Internet Explorer.  Ã‚  1 July 2002. Keyword: Puritanism. Wilson, John F. â€Å"Puritans†. Discovery Channel School.2002. World Book Online. 29 June 2002. http://www.discovery school.com/homeworkhelp/worldbook/atozhisotry/p1452140.html

Planning a 12 week scheme of work Essay -- essays research papers

PGCE Assignment 2: Planning a 12 week scheme of work. Introduction This assignment has been designed to plan and produce a twelve week scheme of work in association with Unit 1: BTEC ND e-Media Production course. The course is designed to develop learners’ skills and knowledge in reading, analysing and deconstructing of e-media. Reece and Walker (2000) discuss, there are several building blocks to be considered when planning for effective learning. I will discuss the sections of the planning process that need to be considered planning for a lesson. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Lesson content and building blocks of lesson planning. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The methodology of Teaching and learning. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The theories of learning and what influences planning. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Assessment through the use of a self-evaluation pro-forma. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Motivational and Equal Opportunities issues. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Self –Evaluation. Lesson content and building blocks of lesson planning Benjamin Bloom developed an analysis of academic learning behaviours in the field of education, known as Bloom’s Taxonomy. These behaviours were categorized into three interrelated and overlapping learning domains; Cognitive, Affective, and Psychomotor domains. In this section I will describes in point each of these three learning domains. The Cognitive Domain The Cognitive Domain is a person’s intellectual ability. Cognitive learning behaviours are characterized by observable and unobservable skills such as comprehending information, organizing ideas, and evaluating information and actions. There are six levels of intellectual behaviour important in learning within the cognitive domain; 1.  Ã‚  Ã‚  Ã‚  Ã‚  Knowledge is a starting point that includes both the acquisition of information and the ability to recall information when needed. 2.  Ã‚  Ã‚  Ã‚  Ã‚  Comprehension is the basic level of understanding. It involves the ability to know what is being communicated in order to make use of the information. 3.  Ã‚  Ã‚  Ã‚  Ã‚  Application is the ability to use a learned skill in a new situation. 4.  Ã‚  Ã‚  Ã‚  Ã‚  Analysis separates information into part for better understanding. 5.  Ã‚  Ã‚  Ã‚  Ã‚  Synthesis is the ability to combine existing ele... ...es: Recommended Reading [http://www.ac.wwu.edu/~assess/slo.htm] Other Sites: o  Ã‚  Ã‚  Ã‚  Ã‚  Explorations in Learning & Instruction: The Theory Into Practice Database (Taxonomy) o  Ã‚  Ã‚  Ã‚  Ã‚  Bloom's Taxonomy [The Teaching and Educational Development Institute] o  Ã‚  Ã‚  Ã‚  Ã‚  Bloom Resources o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.reach.ucf.edu/~acg4401/Handouts/blooms.htm o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.stedwards.edu/cte/bloomtax.htm o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.aphs.sa.edu.au/soc_env/skills/bloom.html o  Ã‚  Ã‚  Ã‚  Ã‚  http://its.foxvalley.tec.wi.us/iss/curric-assessment/COLUMN.html o  Ã‚  Ã‚  Ã‚  Ã‚  http://www-ee.eng.hawaii.edu/~tep/EE367/Coop/bloom.html o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.utexas.edu/student/lsc/handouts/1414.html o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.cityu.edu/facultystaff/teachingtips.asp [Teaching Tips, City University (Bellevue, WA)] o  Ã‚  Ã‚  Ã‚  Ã‚  Guide to Theories of Learning o  Ã‚  Ã‚  Ã‚  Ã‚  Internet Resources for Higher Education Outcomes Assessment [http://www2.acs.ncsu.edu/UPA/assmt/resource.htm] Planning a 12 week scheme of work Essay -- essays research papers PGCE Assignment 2: Planning a 12 week scheme of work. Introduction This assignment has been designed to plan and produce a twelve week scheme of work in association with Unit 1: BTEC ND e-Media Production course. The course is designed to develop learners’ skills and knowledge in reading, analysing and deconstructing of e-media. Reece and Walker (2000) discuss, there are several building blocks to be considered when planning for effective learning. I will discuss the sections of the planning process that need to be considered planning for a lesson. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Lesson content and building blocks of lesson planning. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The methodology of Teaching and learning. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  The theories of learning and what influences planning. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Assessment through the use of a self-evaluation pro-forma. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Motivational and Equal Opportunities issues. †¢Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Self –Evaluation. Lesson content and building blocks of lesson planning Benjamin Bloom developed an analysis of academic learning behaviours in the field of education, known as Bloom’s Taxonomy. These behaviours were categorized into three interrelated and overlapping learning domains; Cognitive, Affective, and Psychomotor domains. In this section I will describes in point each of these three learning domains. The Cognitive Domain The Cognitive Domain is a person’s intellectual ability. Cognitive learning behaviours are characterized by observable and unobservable skills such as comprehending information, organizing ideas, and evaluating information and actions. There are six levels of intellectual behaviour important in learning within the cognitive domain; 1.  Ã‚  Ã‚  Ã‚  Ã‚  Knowledge is a starting point that includes both the acquisition of information and the ability to recall information when needed. 2.  Ã‚  Ã‚  Ã‚  Ã‚  Comprehension is the basic level of understanding. It involves the ability to know what is being communicated in order to make use of the information. 3.  Ã‚  Ã‚  Ã‚  Ã‚  Application is the ability to use a learned skill in a new situation. 4.  Ã‚  Ã‚  Ã‚  Ã‚  Analysis separates information into part for better understanding. 5.  Ã‚  Ã‚  Ã‚  Ã‚  Synthesis is the ability to combine existing ele... ...es: Recommended Reading [http://www.ac.wwu.edu/~assess/slo.htm] Other Sites: o  Ã‚  Ã‚  Ã‚  Ã‚  Explorations in Learning & Instruction: The Theory Into Practice Database (Taxonomy) o  Ã‚  Ã‚  Ã‚  Ã‚  Bloom's Taxonomy [The Teaching and Educational Development Institute] o  Ã‚  Ã‚  Ã‚  Ã‚  Bloom Resources o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.reach.ucf.edu/~acg4401/Handouts/blooms.htm o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.stedwards.edu/cte/bloomtax.htm o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.aphs.sa.edu.au/soc_env/skills/bloom.html o  Ã‚  Ã‚  Ã‚  Ã‚  http://its.foxvalley.tec.wi.us/iss/curric-assessment/COLUMN.html o  Ã‚  Ã‚  Ã‚  Ã‚  http://www-ee.eng.hawaii.edu/~tep/EE367/Coop/bloom.html o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.utexas.edu/student/lsc/handouts/1414.html o  Ã‚  Ã‚  Ã‚  Ã‚  http://www.cityu.edu/facultystaff/teachingtips.asp [Teaching Tips, City University (Bellevue, WA)] o  Ã‚  Ã‚  Ã‚  Ã‚  Guide to Theories of Learning o  Ã‚  Ã‚  Ã‚  Ã‚  Internet Resources for Higher Education Outcomes Assessment [http://www2.acs.ncsu.edu/UPA/assmt/resource.htm]

Neuro Pasta Case Analysis

That is when two firms – one profitable and one unprofitable merge together such that the loss of the one firm is offset by the other firm. Also, in certain situation Merger also helpful in increasing the debt capacity. 0 Diversification – Diversification will create value by reduction in unsystematic risk. The firms will diversify in order to move in to different businesses than what they are currently into. 0 Control – Merger will lead to more control to the acquiring managements as they will be handling the bigger management than before.However , the acquired firm's manager may be asked to leave the firm. 0 Purchase of assets below replacement cost – Merger can also happen in order to place the ageing assets or they want to acquire more assets which are currently operating with full capacity. 0 Synergy – This is the reason because of which most of the mergers happen. Synergy will result in more value than the additive values of the acquiring and acquired firms ( V ABA > VA +VI) From the standpoint of society, Most of the points are relevant to company like ICC.As Icily may look for diversification, that is they are currently into Indian and Chinese cuisine however the merger will help them to diversify into Italian cuisine. Also synergy effects will be there which will ICC. Sections, Group 2 3 Friendly Merger Hostile Merger Friendly merger happens when both the Both the firms will not be receptive acquiring company and target companies are receptive. Merger will happen through the agreement In hostile merger the acquiring company will use between the two companies. Lot of techniques to gain the control over the target company as they will not be agreeing for the merger.Acquiring firm uses techniques like proxy fights, tender offer to gain the power. In hostile merger the acquiring company will allow tender offer in order to acquire biding more than the actual value of stock. This money bid by the acquiring company will be m ore than the actual value of the share in order to gain power is the premium. Sections, Group 2 4 During the time of merger or acquisition, the interest expense is not tax effective which means taxation authorities may take a look as if it is for tax avoidance.This also means to take care that the profits of the parent company are not subsided by showing the interest expense of the target company and vice versa. This is particularly applicable only at the time of acquisition and not later. Hence, it is added later explicitly. Retained earnings are something presented on the other side of cash in the balance sheet. It is not the actual cash which the company can use when its balance gets low. But, it is actually the stockholder's claim which is apparently seen as cash and hence it is not actually available to the company.A similar situation would prevent the potential suitor/bidder to think twice before replacing the management Secondly, Enron's management can agree with the potentia l suitor on a mutually beneficial per share price which in turn would be lower than the high price if the bidder were to go for a hostile merger or a takeover. They may negotiate with the potential suitor in the price per share with an intention of Log-rolling to benefit both the parties. Thirdly, as Enron's management should consider positioning itself not as Just a brand but as a Brand owned by a trusted individual like CEO or a family. For e. G.It is not advertised that who owns Domino's and pizza hut because it is positioned in terms of pizza as a brand but we it is widely known who own has partnered Cataracts I. E. Data. B) Nero may adopt shareholder rights option, Golden parachute strategy as measures encouraged my Enron's management to Retire the Debt before the Acquisition and reissue and equal amount of debt post-merger. This is because the stockholders can tire at a lower performer rate and later can refinance to neutralize coinsurance effect. Also, they may think of Emplo yee poison pill strategy as anti-take over strategy but it would be unethical at times.It can still be thought of positively by Just threatening the bidder by showing support and strength of relationship between Management and talented employees that if the knot is broken, the target company may not be able to fare well in future. Sections, Group 2 8 c) Firstly, the terms and conditions should be seen that is the management being replaced while considering the lower offer? If not, then anyway the managers are in benefit as they will still exist in their positions. Also, they should negotiate for a higher compensation in lieu for the lower bid.Still, if the bid is lower than our minimal expectation then we may think repurchasing shares from market showing confidence in our growth and future. This is will help the stock price rise and in turn pushing the potential bidders to increase the bid price at least near or above the true value. Also, they may give a call for a White Knight com pany to make a Friendly offer, further influencing the potential acquirer to increase the bid price. D) In the case as stated, the management is young and might want to have larger pie of the expected growth seeing which the acquirer has made a bid.In the initial stage itself, the target company (Nero) should make clear with the acquirer (ICC) to set the terms of retaining the management. The pillar strength should be clearly shown as the managerial ability of the Management and thus justifying Enron's position in retaining management seats. If things do not work out, they may go threaten with the inevitable Employee poison pill strategy which may be assumed to work in Enron's favor. Sections, Group 2 9 To give a tempting and irrespective bid, we shall place our bid comparing by keeping our upper limit as expected ROE.As given in exhibit 2, the ROE starting 1996 is consistently above 42% with expected 51% in 1999. Hence, we can place our bid starting 25% above the share price I. E. $ 1. 875 ? $1. 85 and have a target to settle till 40% above $1. 5 which is $ 2. 1 . Also, retaining the Enron's management below $2. 1 should be considered as an option which would be tempting for the Enron's managers exulting lesser restriction towards acquisition. Also, retaining management would be dishes where experienced folks in initial phase would be an added advantage to get acquainted with the system. Action Group 2 10 Yes, we believe that Synergy in any form such as Tax benefit, Revenue increment, reduction in Operational expenses due to some common operations will create value in an average completed merger. The value as mentioned above is created in following fours forms but not limited to only four: – Combined revenue increase than the individual added ( Data motors – JELL) Tax infinite due to Combined debt increase or increased Debt taking capacity due to lesser risk Reduction in Operational Costs due to implementing common facilities, common operations, cheap raw material in case of vertical integration/expansion etc. Tech Maidenhair – Astray) Reduction in capital required for maintaining same efficiency as today From the above mentioned benefits, depending on the type of merger, the source of value creation would change. Like whether it is Vertical integration (Supplier benefit), Horizontal integration (increase market share and higher control over prices in retain cases), conglomerate acquiring (for diversification) etc.

Variable Cost and Contribution Margin

CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT 12-1The three major influences on pricing decisions are 1. Customers 2. Competitors 3. Costs 12-2Not necessarily. For a one-time-only special order, the relevant costs are only those costs that will change as a result of accepting the order. In this case, full product costs will rarely be relevant. It is more likely that full product costs will be relevant costs for long-run pricing decisions. 12-3Two examples of pricing decisions with a short-run focus: 1. Pricing for a one-time-only special order with no long-term implications. . Adjusting product mix and volume in a competitive market. 12-4Activity-based costing helps managers in pricing decisions in two ways. 1. It gives managers more accurate product-cost information for making pricing decisions. 2. It helps managers to manage costs during value engineering by identifying the cost impact of eliminating, reducing, or changing various activities. 12-5Two alternative starting points for long-run pricing decisions are 1. Market-based pricing, an important form of which is target pricing.The market-based approach asks, â€Å"Given what our customers want and how our competitors will react to what we do, what price should we charge? † 2. Cost-based pricing which asks, â€Å"What does it cost us to make this product and, hence, what price should we charge that will recoup our costs and achieve a target return on investment? † 12-6A target cost per unit is the estimated long-run cost per unit of a product (or service) that, when sold at the target price, enables the company to achieve the targeted operating income per unit. 2-7Value engineering is a systematic evaluation of all aspects of the value-chain business functions, with the objective of reducing costs while satisfying customer needs. Value engineering via improvement in product and process designs is a principal technique that companies use to achieve target cost per unit. 12-8A value-added co st is a cost that customers perceive as adding value, or utility, to a product or service. Examples are costs of materials, direct labor, tools, and machinery.A nonvalue-added cost is a cost that customers do not perceive as adding value, or utility, to a product or service. Examples of nonvalue-added costs are costs of rework, scrap, expediting, and breakdown maintenance. 12-9No. It is important to distinguish between when costs are locked in and when costs are incurred, because it is difficult to alter or reduce costs that have already been locked in. 12-10Cost-plus pricing is a pricing approach in which managers add a markup to cost in order to determine price. 2-11Cost-plus pricing methods vary depending on the bases used to calculate prices. Examples are (a) variable manufacturing costs; (b) manufacturing function costs; (c) variable product costs; and (d) full product costs. 12-12Two examples where the difference in the costs of two products or services is much smaller than th e differences in their prices follow: 1. The difference in prices charged for a telephone call, hotel room, or car rental during busy versus slack periods is often much greater than the difference in costs to provide these services. 2.The difference in costs for an airplane seat sold to a passenger traveling on business or a passenger traveling for pleasure is roughly the same. However, airline companies price discriminate. They routinely charge business travelers––those who are likely to start and complete their travel during the same week excluding the weekend––a much higher price than pleasure travelers who generally stay at their destinations over at least one weekend. 12-13Life-cycle budgeting is an estimate of the revenues and costs attributable to each product from its initial R&D to its final customer servicing and support. 2-14Three benefits of using a product life-cycle reporting format are: 1. The full set of revenues and costs associated with each product becomes more visible. 2. Differences among products in the percentage of total costs committed at early stages in the life cycle are highlighted. 3. Interrelationships among business function cost categories are highlighted. 12-15Predatory pricing occurs when a business deliberately prices below its costs in an effort to drive competitors out of the market and restrict supply, and then raises prices rather than enlarge demand.Under U. S. laws, dumping occurs when a non-U. S. company sells a product in the United States at a price below the market value in the country where it is produced, and this lower price materially injures or threatens to materially injure an industry in the United States. Collusive pricing occurs when companies in an industry conspire in their pricing and production decisions to achieve a price above the competitive price and so restrain trade. 12-16(20–30 min. ) Relevant-cost approach to pricing decisions, special order. . Relevant revenue s, $4. 00 ( 1,000$4,000 Relevant costs Direct materials, $1. 60 ( 1,000$1,600 Direct manufacturing labor, $0. 90 ( 1,000900 Variable manufacturing overhead, $0. 70 ( 1,000700 Variable selling costs, 0. 05 ( $4,000 200 Total relevant costs 3,400 Increase in operating income$ 600 This calculation assumes that: a. The monthly fixed manufacturing overhead of $150,000 and $65,000 of monthly fixed marketing costs will be unchanged by acceptance of the 1,000 unit order. b.The price charged and the volumes sold to other customers are not affected by the special order. Chapter 12 uses the phrase â€Å"one-time-only special order† to describe this special case. 2. The president’s reasoning is defective on at least two counts: a. The inclusion of irrelevant costs––assuming the monthly fixed manufacturing overhead of $150,000 will be unchanged; it is irrelevant to the decision. b. The exclusion of relevant costs––variable selling costs (5% of the sellin g price) are excluded. 3. Key issues are: . Will the existing customer base demand price reductions? If this 1,000-tape order is not independent of other sales, cutting the price from $5. 00 to $4. 00 can have a large negative effect on total revenues. b. Is the 1,000-tape order a one-time-only order, or is there the possibility of sales in subsequent months? The fact that the customer is not in Dill Company’s â€Å"normal marketing channels† does not necessarily mean it is a one-time-only order. Indeed, the sale could well open a new marketing channel.Dill Company should be reluctant to consider only short-run variable costs for pricing long-run business. 12-17(20–30 min. )Relevant-cost approach to short-run pricing decisions. 1. Analysis of special order: Sales, 3,000 units ( $75$225,000 Variable costs: Direct materials, 3,000 units ( $35$105,000 Direct manufacturing labor, 3,000 units ( $1030,000 Variable manufacturing overhead, 3,000 units ( $618,000 Other v ariable costs, 3,000 units ( $515,000 Sales commission 8,000 Total variable costs 176,000 Contribution margin$ 49,000Note that the variable costs, except for commissions, are affected by production volume, not sales dollars. If the special order is accepted, operating income would be $1,000,000 + $49,000 = $1,049,000. 2. Whether McMahon’s decision to quote full price is correct depends on many factors. He is incorrect if the capacity would otherwise be idle and if his objective is to increase operating income in the short run. If the offer is rejected, San Carlos, in effect, is willing to invest $49,000 in immediate gains forgone (an opportunity cost) to preserve the long-run selling-price structure.McMahon is correct if he thinks future competition or future price concessions to customers will hurt San Carlos’s operating income by more than $49,000. There is also the possibility that Abrams could become a long-term customer. In this case, is a price that covers only s hort-run variable costs adequate? Would Holtz be willing to accept a $8,000 sales commission (as distinguished from her regular $33,750 = 15% ( $225,000) for every Abrams order of this size if Abrams becomes a long-term customer? 12-18(15-20 min. Short-run pricing, capacity constraints. 1. Per kilogram of hard cheese: |Milk (8 liters [pic] $2. 00 per liter) |$16 | |Direct manufacturing labor |5 | |Variable manufacturing overhead |4 | |Fixed manufacturing cost allocated | 6 | |Total manufacturing cost |$31 | | | |If Colorado Mountains Dairy can get all the Holstein milk it needs, and has sufficient production capacity, then the minimum price per kilo it should charge for the hard cheese is the variable cost per kilo = $16 + $5 + $4 = $25 per kilo. 2. If milk is in short supply, then each kilo of hard cheese displaces 2 kilos of soft cheese (8  liters of milk per kilo of hard cheese versus 4 liters of milk per kilo of soft cheese). Then, for the hard cheese, the minimum price Colora do Mountains should charge is the variable cost per kilo of hard cheese plus the contribution margin from 2 kilos of soft cheese, or, 25 + (2 [pic] $10 per kilo) = $45 per kilo That is, if milk is in short supply, Colorado Mountains should not agree to produce any hard cheese unless the buyer is willing to pay at least $45 per kilo. 12-19 (25–30 min. ) Value-added, nonvalue-added costs. 1. |Category |Examples | | |Value-added costs |a. Materials and labor for regular repairs |$800,000 | |Nonvalue-added costs |b.Rework costs |$ 75,000 | | |c. Expediting costs caused by work delays |60,000 | | |g. Breakdown maintenance of equipment |55,000 | | |Total |$190,000 | |Gray area |d.Materials handling costs |$ 50,000 | | |e. Materials procurement and inspection costs |35,000 | | |f. Preventive maintenance of equipment |15,000 | | |Total |$100,000 |Classifications of value-added, nonvalue-added, and gray area costs are often not clear-cut. Other classifications of some of the cost cat egories are also plausible. For example, some students may include materials handling, materials procurement, and inspection costs and preventive maintenance as value-added costs (costs that customers perceive as adding value and as being necessary for good repair service) rather than as in the gray area.Preventive maintenance, for instance, might be regarded as value-added because it helps prevent nonvalue-adding breakdown maintenance. 2. Total costs in the gray area are $100,000. Of this, we assume 65%, or $65,000, are value-added and 35%, or $35,000, are nonvalue-added. Total value-added costs: $800,000 + $65,000 $ 865,000 Total nonvalue-added costs: $190,000 + $35,000 225,000 Total costs$1,090,000 Nonvalue-added costs are $225,000 ? $1,090,000 = 20. 64% of total costs.Value-added costs are $865,000 ? $1,090,000 = 79. 36% of total costs. |3. |Effect on Costs Classified as | | |Value-Added |Nonvalue-Added |Gray | |Program | | |Area | |(a) Quality improvement programs to | | | | |à ¢â‚¬ ¢ reduce rework costs by 75% (0. 5 ( $75,000) | |–$ 56,250 | | |†¢ reduce expediting costs by 75% | | | | |(0. 75 ( $60,000) | |– 45,000 | | |†¢ reduce materials and labor costs by 5% | | | | |(0. 5 ( $800,000) |–$ 40,000 |  Ã‚     Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   | | |Total effect |–$ 40,000 |–$101,250 | | | | | | | |(b) Working with suppliers to | | | | |†¢ reduce materials procurement and inspection costs by 20% (0. 0 ( $35,000) | | | | |†¢ reduce materials handling costs by 25% | | |–$ 7,000 | |(0. 25 ( $50,000) | | | | |Total effect | | |– 12,500 | |Transferring 65% of gray area costs (0. 5 ( | | |– 19,500 | |$19,500 = $12,675) as value-added and 35% | | | | |(0. 5 ( $19,500 = $6,825) as nonvalue-added | | | | |Effect on value-added and nonvalue-added costs |–$ 12,675 |–$ 6,825 |+ 19,500 | | |–$ 12,675 |–$ 6,825 |$ 0 | |(c) Maintenance programs to | | | | |†¢ increase preventive maintenance costs by 50% | | | | |(0. 0 ( $15,000) | | |+$ 7,500 | |†¢ decrease breakdown maintenance costs by 40% | | | | |(0. 40 ( $55,000) | |–$ 22,000 |  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   | |Total effect | |– 22,000 |+ 7,500 | |Transferring 65% of gray area costs (0. 65 ( $7,500 = $4,875) as value-added and 35%| | | | |(0. 5 ( $7,500 = $2,625) as nonvalue-added | | | | |Effect on value-added and nonvalue-added costs |+$ 4,875 |+ 2,625 |– 7,500 | | |+$ 4,875 |–$  Ã‚  19,375 |$ 0 | |Total effect of all programs |–$ 47,800 |–$127,450 | | |Value-added and nonvalue-added costs calculated in requirement 2 | | | | |Expected value-added and nonvalue-added costs as a result of implementing these |865,000 |225,000 | | |programs | | | | | |$817,200 |$ 97,550 | | If these programs had been implemented, total costs would have decreased from $1,090,000 (requirement 2) to $817,200 + $97,550 = $914,750, and the percentage of nonvalue-added costs would decrease from 20. 64% (requirement 2) to $97,550 ? 914,750 = 10. 66%. These are significant improvements in Marino’s performance. 12-20(25(30 min. ) Target operating income, value-added costs, service company. 1. The classification of total costs in 2012 into value-added, nonvalue-added, or in the gray area in between follows: ValueGrayNonvalue-Total AddedAreaadded(4) = (1) (2) (3) (1)+(2)+(3)Doing calculations and preparing drawings 77% ? $390,000$300,300$300,300 Checking calculations and drawings 3% ? $390,000$11,70011,700 Correcting errors found in drawings 8% ? $390,000$31,20031,200 Making changes in response to client requests 5% ? $390,000 19,50019,500 Correcting errors to meet government building code, 7% ? $390,000 27,300 27,300 Total professional labor costs 319,800 11,700 58,500 390,000 Administrative and support costs at 44% ($171,600 ? $390,000) of professional labor costs 140,712 5,148 25,740 171,600 Travel 15,000   15,000 Total$475,512$16,848$84,240$576,600Doing calculations and responding to client requests for changes are value-added costs because customers perceive these costs as necessary for the service of preparing architectural drawings. Costs incurred on correcting errors in drawings and making changes because they were inconsistent with building codes are nonvalue-added costs. Customers do not perceive these costs as necessary and would be unwilling to pay for them. Calvert should seek to eliminate these costs by making sure that all associates are well-informed regarding building code requirements and by training associates to improve the quality of their drawings. Checking calculations and drawings is in the gray area (some, but not all, checking may be needed). There is room for disagreement on these classifications.For example, checking calculations may be regarded as value added. 2. Reduction in professional labor-hours by a. Correcting errors in drawings (8% ? 7,500)600 hours b. Correcting errors to conform to building code (7% ? 7,500) 525 hours Total 1,125 hours Cost savings in professional labor costs (1,125 hours ? $52)$ 58,500 Cost savings in variable administrative and support costs (44% ? $58,500) 25,740 Total cost savings$ 84,240 Current operating income in 2012$124,650 Add cost savings from eliminating errors 84,240 Operating income in 2012 if errors eliminated$208,890 3. Currently 85% ? 7,500 hours = 6,375 hours are billed to clients generating revenues of $701,250.The remaining 15% of professional labor-hours (15% ? 7,500 = 1,125 hours) is lost in making corrections. Calvert bills clients at the rate of $701,250 ? 6,375 = $110 per professional labor-hour. If the 1,125 professional labor-hours currently not being billed to clients were billed to clients, Calvert’s revenues would increase by 1,125 hours ? $110 = $123,750 from $701,250 to $825,000 ($701,250 + $123,750). Costs remain unchanged Professional labor costs$390,000 Administrative and support (44% ? $390,000) 171,600 Travel 15,000 Total costs$576,600 Calvert’s operating income would be Revenues$825,000 Total costs 576,600 Operating income$248,400 12-21(25–30 min. Target prices, target costs, activity-based costing. 1. Snappy’s operating income in 2011 is as follows: | |Total for | | | |250,000 Tiles |Per Unit | | |(1) |(2) = (1) ? 250,000 | |Revenues ($4 ( 250,000) |$1,000,000 |$4. 00 | |Purchase cost of tiles ($3 ( 250,000) |750,000 |3. 0 | |Ordering costs ($50 ( 500) |25,000 |0. 10 | |Receiving and storage ($30 ( 4,000) |120,000 |0. 48 | |Shipping ($40 ( 1,500) |60,000 |0. 24 | |Total costs |955,000 |3. 82 | |Operating income |$ 45,000 |$0. 18 | 2.Price to retailers in 2012 is 95% of 2011 price = 0. 95 ( $4 = $3. 80; cost per tile in 2012 is 96% of 2011 cost = 0. 96 ( $3 = $2. 88. Snappy’s operating income in 2012 is as follows: | |Total for | | | |250,000 Tiles |Per Unit | | |(1) |(2) = (1) ? 250,000 | |Revenues ($3. 80 ( 250,000) |$950,000 |$3. 0 | |Purchase cost of tiles ($2. 88 ( 250,000) |720,000 |2. 88 | |Ordering costs ($50 ( 500) |25,000 |0. 10 | |Receiving and storage ($30 ( 4,000) |120,000 |0. 48 | |Shipping ($40 ( 1,500) |60,000 |0. 24 | |Total costs |925,000 |3. 0 | |Operating income |$ 25,000 |$0. 10 | 3. Snappy’s operating income in 2012, if it makes changes in ordering and material handling, will be as follows: | |Total for | | | |250,000 Tiles |Per Unit | | |(1) |(2) = (1) ? 50,000 | |Revenues ($3. 80 ( 250,000) |$950,000 |$3. 80 | |Purchase cost of tiles ($2. 88 ( 250,000) |720,000 |2. 88 | |Ordering costs ($25 ( 200) |5,000 |0. 02 | |Receiving and storage ($28 ( 3,125) |87,500 |0. 35 | |Shipping ($40 ( 1,500) |60,000 |0. 4 | |Total costs |872,500 |3. 49 | |Operating income |$ 77,500 |$0. 31 | Through better cost management, Snappy will be able to achieve its target operating income of $0. 30 per tile despite the fact that its revenue per tile has decreased by $0. 20 ($4. 0 0 – $3. 80), while its purchase cost per tile has decreased by only $0. 12 ($3. 00 – $2. 88). 12-22 (20 min. ) Target costs, effect of product-design changes on product costs. 1. and 2.Manufacturing costs of HJ6 in 2010 and 2011 are as follows: 2010 2011 Per UnitPer Unit Total (2) = Total (4) = (1)(1) ? 3,500 (3)(3) ? 4,000 Direct materials, $1,200 ? 3,500; $1,100 ? 4,000$4,200,000$1,200$4,400,000$1,100 Batch-level costs, $8,000 ? 70; $7,500 ? 80 560,000 160 600,000 150 Manuf. operations costs, $55 ? 21,000; $50 ? 22,000 1,155,000 330 1,100,000 275 Engineering change costs, $12,000 ? 14; $10,000 ? 10 168,000 48 100,000 25 Total$6,083,000$1,738$6,200,000$1,550 3. [pic]= [pic] ? 90% = $1,738 ? 0. 90 = $1,564. 20 Actual manufacturing cost per unit of HJ6 in 2011 was $1,550.Hence, Medical Instruments did achieve its target manufacturing cost per unit of $1,564. 20 4. To reduce the manufacturing cost per unit in 2011, Medical Instruments reduced the cost per unit in each of the four cost categories—direct materials costs, batch-level costs, manufacturing operations costs, and engineering change costs. It also reduced machine-hours and number of engineering changes made—the quantities of the cost drivers. In 2010, Medical Instruments used 6 machine-hours per unit of HJ6 (21,000 machine-hours (3,500 units). In 2011, Medical Instruments used 5. 5 machine-hours per unit of HJ6 (22,000 machine-hours ( 4,000 units). Medical Instruments reduced engineering changes from 14 in 2010 to 10 in 2011.Medical Instruments achieved these gains through value engineering activities that retained only those product features that customers wanted while eliminating nonvalue-added activities and costs. 12-23(20 min. )Cost-plus target return on investment pricing. 1. Target operating income = target return on investment ( invested capital Target operating income (25% of $900,000)$225,000 Total fixed costs 375,000 Target contribution margin$600,000 Target contri bution per room-night, ($600,000 ? 15,000) $40 Add variable costs per room-night 5 Price to be charged per room-night $45 Proof Total room revenues ($45 ( 15,000 room-nights)$675,000 Total costs: Variable costs ($5 ( 15,000)$ 75,000 Fixed costs 375,000Total costs 450,000 Operating income$225,000 The full cost of a room = variable cost per room + fixed cost per room The full cost of a room = $5 + ($375,000 ? 15,000) = $5 + $25 = $30 Markup per room = Rental price per room – Full cost of a room = $45 – $30 = $15 Markup percentage as a fraction of full cost = $15 ? $30 = 50% 2. If price is reduced by 10%, the number of rooms Beck could rent would increase by 10%. The new price per room would be 90% of $45 $ 40. 50 The number of rooms Beck expects to rent is 110% of 15,000 16,500 The contribution margin per room would be $40. 50 – $5$ 35. 50 Contribution margin ($35. 50 ( 16,500)$585,750Because the contribution margin of $585,750 at the reduced price of $40. 50 is l ess than the contribution margin of $600,000 at a price of $45, Blodgett should not reduce the price of the rooms. Note that the fixed costs of $375,000 will be the same under the $45 and the $40. 50 price alternatives and hence, are irrelevant to the analysis. 12-24(20(25 min. )Cost-plus, target pricing, working backwards. 1. Investment$8,400,000 Return on investment18% Operating income (18% ( $8,400,000)$1,512,000 Operating income per unit of XR500 ($1,512,000 ( 1,500)$1,008 Full cost per unit of XR500 (1,008 ? 0. 09)$11,200 Selling price (($11,200 + $1,008))$12,208 Markup percentage on variable cost ($1,008 ( $8,450)11. 93%Total fixed costs = (Full cost per unit – Variable cost per unit) ( Units sold = ($11,200 – $8,450) ( 1,500 units = $4,125,000 2. Contribution margin per unit = $12,208 – $8,450 = $3,758 Increase in sales = $10% ( 1,500 units = 150 units Increase in contribution margin = $3,758 ( 150 units =$563,700 Less: Advertising costs 500,000 Increase in operating income$ 63,700 Road Warrior should spend $500,000 in advertising because it increases operating income by $63,700. 3. |Revenues ($12,208 ? 1,400 units) |$17,091,200 | |Target full cost at 9% markup ($17,091,200 ? 1. 9) |$15,680,000 | |Less: Target total fixed costs ($4,125,000 – $125,000) | 4,000,000 | |Target total variable costs |$11,680,000 | |Divided by number of units | ? 1,400 units | |Target variable cost per unit |$ 8,342. 86 | 12-25(20 min. ) Life-cycle product costing. 1. [pic]Contribution margin per unit = Selling price – Variable cost per unit = $50 – $25 = $25 |Total fixed costs over |= |Design fixed costs |+ |Production fixed |+ |Marketing and distribution | |life of robot | | | |costs | |fixed costs | = $650,000 + $3,560,000 + $2,225,000 = $6,435,000 BEP in units = [pic] 2a. Option A: |Revenues ($50 [pic] 500,000 units) |$25,000,000 | |Variable costs ($25 [pic] 500,000 units) |12,500,000 | |Fixed costs | 6,435,000 | |Operating incom e |$ 6,065,000 | 2b. Option B: Revenues | | | Year 2 ($70 [pic] 100,000 units) |$ 7,000,000 | | Years 3 & 4 ($40[pic]600,000 units) | 24,000,000 | | Total revenues |31,000,000 | |Variable costs ($25 [pic] 700,000 units) |17,500,000 | |Fixed costs | 6,435,000 | |Operating income |$ 7,065,000 | Over the product’s life-cycle, Option B results in an overall higher operating income of $1,000,000 ($7,065,000 – $6,065,000). 12-26(30 min. )Relevant-cost approach to pricing decisions. |1. Revenues (1,000 crates at $117 per crate) | |$117,000 | | |Variable costs: | | | | | Manufacturing |$35,000 | | | | Marketing | 17,000 | | | | Total variable costs | | 52,000 | | |Contribution margin | |65,000 | | |Fixed costs: | | | | | Manufacturing |$30,000 | | | | Marketing | 13,000 | | | | Total fixed costs | | 43,000 | | |Operating income | |$ 22,000 | Normal markup percentage: $65,000 ? $52,000 = 125% of total variable costs. 2. Only the manufacturing-cost category is relevant to con sidering this special order; no additional marketing costs will be incurred. Variable manufacturing cost per crate = $35,000 ? 1,000 crates = $35 per crate.The relevant manufacturing costs for the 200-crate special order are: Variable manufacturing cost per unit $35 ( 200 crates$ 7,000 Special packaging 3,000 Relevant manufacturing costs$10,000 Any price above $50 per crate ($10,000 ? 200) will make a positive contribution to operating income. Therefore, based on financial considerations, Stardom should accept the 200-crate special order at $55 per crate that will generate revenues of $11,000 ($55 ( 200) and relevant (incremental) costs of $10,000. The reasoning based on a comparison of $55 per crate price with the $65 per crate absorption cost ignores monthly cost-volume-profit relationships.The $65 per crate absorption cost includes a $30 per crate cost component that is irrelevant to the special order. The relevant range for the fixed manufacturing costs is from 500 to 2,000 crat es per month; the special order will increase production from 1,000 to 1,200 crates per month. Furthermore, the special order requires no incremental marketing costs. 3. If the new customer is likely to remain in business, Burst should consider whether a strictly short-run focus is appropriate. For example, what is the likelihood of demand from other customers increasing over time? If Burst accepts the 200-crate special offer for more than one month, it may preclude accepting other customers at prices exceeding $55 per crate.Moreover, the existing customers may learn about Burst’s willingness to set a price based on variable cost plus a small contribution margin. The longer the time frame over which Burst keeps selling 200 crates of canned peaches at $55 a crate, the more likely it is that existing customers will approach Burst for their own special price reductions. If the new customer wants the contract to extend over a longer time period, Burst should negotiate a higher pr ice. 12-27(25–30 min. )Considerations other than cost in pricing decisions. 1. |Guest nights on weeknights: | | |18 weeknights ? 100 rooms ? 0% = 1,620 | | |Guest nights on weekend nights: | | |12 weekend nights ? 100 rooms ? 20% = 240 | | |Total guest nights in April = 1,620 + 240 = 1,860 | | |Breakfasts served: | | |1,620 weeknight guest nights ? 1. 0 = 1,620 | | | 240 weekend guest nights ? 2. = 600 | | |Total breakfasts served in April = 1,620 + 600 = 2,220 | | |Total costs for April: | | |Depreciation |$ 20,000 | |Administrative costs |35,000 | |Fixed housekeeping and supplies |12,000 | |Variable housekeeping and supplies (1,860 ? $25) |46,500 | |Fixed breakfast costs |5,000 | |Variable breakfast costs (2,220 ? 5) | 11,100 | |Total costs for April |$129,600 | |Cost per guest night ($129,600 ? 1,860) |$69. 68 | |Revenue for April ($68 ? 1,860) |$126,480 | |Total costs for April | 129,600 | |Operating income/(loss) |$ (3,120) | 2. |New weeknight guest nights | | |18 weeknights ? 100 rooms ? 5% = 1,530 | | |New weekend guest nights | | |12 weeknights ? 100 rooms ? 50% = 600 | | |Total guest nights in April = 1,530 + 600 = 2,130 | | |Breakfasts served: | | |1,530 weeknight guest nights ? 1. 0 = 1,530 | | | 600 weekend guest nights ? 2. = 1,500 | | |Total breakfasts served in April = 1,530 + 1,500 = 3,030 | | |Total costs for April: | | |Depreciation |$20,000 | |Administrative costs |35,000 | |Fixed housekeeping and supplies |12,000 | |Variable housekeeping and supplies (2,130 ? $25) |53,250 | |Fixed breakfast costs |5,000 | |Variable breakfast costs (3,030 ? $5) | 15,150 | |Total costs |$140,400 | |Revenue [(1,530 ? $80) + (600 ? 50)] |$152,400 | |Total costs for April | 140,400 | |Operating income |$ 12,000 | Yes, this pricing arrangement would increase operating income by $15,120 from an operating loss of $3,120 to an operating income of $12,000 ($12,000 + $3,120 = $15,120). 3. The weeknight guests are business travelers who have to stay at the hotel on weeknights to conduct business for their organizations. They are probably not paying personally for their hotel stays, and they are more interested in the hotel’s location in the business park than the price of the stay, as long as it is reasonable. The demand of business travelers is inelastic.In contrast, the weekend guests are families who are staying at the hotel for pleasure and are paying for the hotel from their personal incomes. They are willing to consider other hotel options or even not travel at all if the price is high and unaffordable. The demand of pleasure travelers is elastic. Because of the differences in preferences of the weeknight and weekend guests, Executive Suites can price discriminate between these guests by charging $30 more on weeknights than on weekends and still have weeknight travelers stay at the hotel. 4. Executive Suites would need to charge a minimum of $35 per night for the last-minute rooms, an amount equal to the variable cost per room. Variable cost per room night = $25 per room night + $5 ? breakfasts = $35. Any price above $35 would increase Executive Suites operating income. 12-28 (25 min. ) Cost-plus, target pricing, working backward. 1. In the following table, work backwards from operating income to calculate the selling price |Selling price |$ 10. 14 (plug) | |Less: Variable cost per unit | 3. 75 | |Unit contribution margin |$ 6. 39 | |Number of units produced and sold | ? 00,000 units | |Contribution margin |$3,195,000 | |Less: Fixed costs | 3,000,000 | |Operating income |$ 195,000 | a)Total sales revenue = $10. 14 [pic] 500,000 units = $5,070,000 b)Selling price = $10. 14 (from above) Alternatively, |Operating income |$ 195,000 | |Add fixed costs | 3,000,000 | |Contribution margin |3,195,000 | |Add variable costs ($3. 75 ? 500,000 units) | 1,875,000 | |Sales revenue |$5,070,000 | [pic] )Rate of return on investment = [pic] d)Markup % on full cost Total cost = ($3. 75 [pic] 500,000 units) + $3,000,000 = $4,875,000 Unit cost = [pic] Markup % = [pic] Or [pic] |2. |New fixed costs |=$3,000,000 – $200,000 = $2,800,000 | | |New variable costs |= $3. 75 – $0. 60 = $3. 15 | | |New total costs |= ($3. 15 ? 500,000 units) + $2,800,000 = $4,375,000 | | |New total sales (5% markup) |= $4,375,000 [pic] 1. 4 = $4,550,000 | | |New selling price |= $4,550,000 ? 500,000 units = $9. 10 | | |Alternatively, | | | |New unit cost |= $4,375,000 ? 500,000 units = $8. 75 | | |New selling price |= $8. 75 [pic] 1. 04 = $9. 10 | |3. |New units sold = 500,000 units ? 90% = $450,000 units | Budgeted Operating Income | |for the Year Ending December 31, 20xx | |Revenues ($9. 10 [pic] 450,000 units) |$4,095,000 | |Variable costs ($3. 15 [pic] 450,000 units) | 1,417,500 | |Contribution margin |2,677,500 | |Fixed costs | 2,800,000 | |Operating income (loss) |$ (122,500) | 12-29(40–45 min. ) Target prices, target costs, value engineering, cost incurrence, locked-in cost, activi ty-based costing. 1. |Old CE100 | |New CE100 | | | |Cost Change | | |Direct materials costs |$182,000 |$2. 20 [pic] 7,000 = $15,400 less |$166,600 | |Direct manufacturing labor costs |28,000 |$0. 50 [pic] 7,000 = $3,500 less |24,500 | |Machining costs |31,500 |Unchanged because capacity same |31,500 | |Testing costs |35,000 |(20% [pic] 2. 5 [pic] 7,000) ? 2 = $7,000 |28,000 | |Rework costs |14,000 |(See Note 1) |5,600 | |Ordering costs |3,360 |(See Note 2) |2,100 | |Engineering costs |21,140 |Unchanged because capacity same |21,140 | |Total manufacturing costs |$315,000 | |$279,440 | Note 1: 10% of old CE100s are reworked. That is, 700 (10% of 7,000) CE100s made are reworked. Rework costs = $20 per unit reworked ( 700 = $14,000. If rework falls to 4% of New CE100s manufactured, 280 (4% of 7,000) New CE100s manufactured will require rework. Rework costs = $20 per unit ( 280 = $5,600. Note 2 : Ordering costs for New CE100 = 2 orders/month ( 50 components ( $21/order = $2,100Unit manu facturing costs of New CE100 = $279,440 ? 7,000 = $39. 92 2. Total manufacturing cost reductions based on new design= $315,000 – $279,440 = $35,560 Reduction in unit manufacturing costs based on new design= $35,560 ? 7,000 = $5. 08 per unit. The reduction in unit manufacturing costs based on the new design can also be calculated as Unit cost of old design, $45 ($315,000 ? 7,000 units) – Unit cost of new design, $39. 92 = $5. 08 Therefore, the target cost reduction of $6 per unit is not achieved by the redesign. 3. Changes in design have a considerably larger impact on costs per unit relative to improvements in manufacturing efficiency ($5. 08 versus $1. 50).One explanation is that many costs are locked in once the design of the radio-cassette is completed. Improvements in manufacturing efficiency cannot reduce many of these costs. Design choices can influence many direct and overhead cost categories, for example, by reducing direct materials requirements, by reducing d efects requiring rework, and by designing in fewer components that translate into fewer orders placed and lower ordering costs. 12-30(25 min. )Cost-plus, target return on investment pricing. 1. Target operating income = Return on capital in dollars = $13,000,000[pic]10% = $1,300,000 2. |Revenues* |$6,000,000 | |Variable costs [($3. 50 + $1. 0)[pic]500,000 cases | 2,500,000 | |Contribution margin |3,500,000 | |Fixed costs ($1,000,000 + $700,000 + $500,000) | 2,200,000 | |Operating income (from requirement 1) |$1,300,000 | * solve backwards for revenues Selling price = [pic]$12 per case. Markup % on full cost Full cost = $2,500,000 + $2,200,000 = $4,700,000 Unit cost = $4,700,000 ? 500,000 cases = $9. 40 per case Markup % on full cost = [pic]27. 66% 3. Budgeted Operating Income | |For the year ending December 31, 20xx | |Revenues ($14 [pic] 475,000 cases*) |$6,650,000 | |Variable costs ($5 [pic] 475,000 cases) | 2,375,000 | |Contribution margin |4,275,000 | |Fixed costs | 2,200,000 | |Operating income |$2,075,000 | *New units = 500,000 cases[pic]95% = 475,000 casesReturn on investment = [pic]15. 96% Yes, increasing the selling price is a good idea because operating income increases without increasing invested capital, which results in a higher return on investment. The new return on investment exceeds the 10% target return on investment. 12-31(20 min. )Cost-plus, time and materials, ethics. 1. As shown in the table below, Garrison will tell Briggs that she will have to pay $460 to get the air conditioning system repaired and $440 to get it replaced. |COST |Labor |Materials |Total Cost | |Repair option (5 hrs. [pic] $30 per hr. $100) |$150 |$100 |$250 | |Replace option (2 hrs. [pic] $30 per hr. ; $200) | 60 | 200 | 260 | |   | | |   | |PRICE (100% markup on labor cost; 60% markup on materials) |Labor |Materials |Total Price | |Repair option ($150 [pic] 2; $100 [pic] 1. 6) |$300 |$160 |$460 | |Replace option ($60 [pic] 2; $200 [pic] 1. 6) | 120 | 320 | 440 | 2 .If the repair and replace options are equally effective, Briggs will choose to get the air conditioning system replaced for $440 (rather than spend $460 on repairing it). 3. R&C Mechanical will earn a greater contribution toward overhead in the repair option ($210 = $460 – $250) than in the replace option ($180 = $440 – $260). Therefore, Garrison will recommend the repair option to Briggs which is not the one she would prefer. Recognizing this conflict, Garrison may even present only the repair option to Ashley Briggs. Of course, he runs the risk of Briggs walking away and thinking of other options (at which point, he could present the replace option as a compromise). The problem is hat Garrison has superior information about the repairs needed but his incentives may cause him to not reveal his information and instead use it to his advantage. It is only the seller’s desire to build a reputation, to have a long-term relationship with the customer, and to have th e customer recommend the seller to other potential buyers of the service that encourages an honest discussion of the options. The ethical course of action would be to honestly present both options to Briggs and have her choose. To have their employees act ethically, organizations do not reward employees on the basis of the profits earned on various jobs. They also develop codes of conduct and core values and beliefs that specify appropriate and inappropriate behaviors. 12-32(25 min. )Cost-plus and market-based pricing. 1.California Temps’ full cost per hour of supplying contract labor is Variable costs$13 Fixed costs ($168,000 ? 84,000 hours) 2 Full cost per hour$15 Price per hour at full cost plus 20% = $15 ( 1. 20 = $18 per hour. 2. Contribution margins for different prices and demand realizations are as follows: | | |Contribution Margin per | | | | |Variable Cost per Hour |Hour |Demand in Hours |Total Contribution | |Price per Hour |(2) |(3) = (1) – (2) |(4) |(5) = (3) ? 4) | |(1) | | | | | |$16 |$13 |$3 |124,000 |$372,000 | |17 |13 |4 |104,000 |416,000 | |18 |13 |5 |84,000 |420,000 | |19 |13 |6 |74,000 |444,000 | |20 |13 |7 |61,000 |427,000 | Fixed costs will remain the same regardless of the demand realizations.Fixed costs are, therefore, irrelevant since they do not differ among the alternatives. The table above indicates that California Temps can maximize contribution margin ($444,000) and operating income by charging a price of $19 per hour. 3. The cost-plus approach to pricing in requirement 1 does not explicitly consider the effect of prices on demand. The approach in requirement 2 models the interaction between price and demand and determines the optimal level of profitability using concepts of relevant costs. The two different approaches lead to two different prices in requirements 1 and 2. As the chapter describes, pricing decisions should consider both demand or market considerations and supply or cost factors.The approach in requir ement 2 is the more balanced approach. In most cases, of course, managers use the cost-plus method of requirement 1 as only a starting point. They then modify the cost-plus price on the basis of market considerations—anticipated customer reaction to alternative price levels and the prices charged by competitors for similar products. 12-33Cost-plus and market-based pricing. 1. Single rate = [pic] $11. 91 per test-hour (TH) Hourly billing rate for HTT and ACT = $11. 91[pic]1. 45 = $17. 27 2. Labor and supervision = [pic]= $4. 64 per test-hour Setup and facility costs = [pic]= $503. 275 per setup-hour Utilities = [pic]= $36. 80 per machine-hour (MH) 3. |HTT |ACT |Total | |Labor and supervision |$295,104 |$196,736 |$ 491,840 | |($4. 64? 63, 600; 42,400 test-hours)1 | | | | |Setup and facility cost |100,655 |301,965 |402,620 | |($503. 275? 200; 600 setup-hours)2 | | | | |Utilities | 184,000 | | | |($36. 80? ,000; 5,000 machine-hours)3 | |184,000 |368,000 | |Total cost |$579,759 | $682,701 |$1,262,460 | |Number of testing hours (TH) |? 63,600 TH |? 42,400 TH | | |Cost per testing hour |$9. 12 per TH |$ 16. 10 per TH | | |Mark-up | ? 1. 45 | ? 1. 5 | | |Billing rate per testing hour |$ 13. 22 per TH |$ 23. 35 per TH | | | | | | | 1106,000 test-hours [pic] 60% = 63,600 test-hours; 106,000 test-hours[pic]40% = 42,400 test-hours 2800 setup-hours ? 25% = 200 setup-hours; 800 setup-hours ? 75% = 600 setup-hours 310,000 machine-hours ? 50% = 5,000 machine-hours; 10,000 machine-hours ? 50% = 5,000 machine-hours The billing rates based on the activity-based cost structure make more sense.These billing rates reflect the ways the testing procedures consume the firm’s resources. 4. To stay competitive, Best Test needs to be more efficient in arctic testing. Roughly 44% of arctic testing’s total cost [pic] occurs in setups and facility costs. Perhaps the setup activity can be redesigned to achieve cost savings. Best Test should also look for savings in the labor and supervision cost per test-hour and the total number of test-hours used in arctic testing, as well as the utility cost per machine-hour and the total number of machine hours used in arctic testing. This may require redesigning the test, redesigning processes, and achieving efficiency and productivity improvements. 12-34(25–30 min. )Life-cycle costing. 1. Total Project Life-Cycle Costs | |Variable costs: | | | Metal extraction and processing ($100 per ton ? 50,000 tons) |$5,000,000 | |Fixed costs: | | | Metal extraction and processing ($4,000 ? 24 months) |96,000 | | Rent on temporary buildings ($2,000 ? 7 months) |54,000 | | Administration ($5,000 ? 27 months) |135,000 | | Clean-up ($30,000 ? 3 months) |90,000 | | Land restoration |475,000 | | Selling land | 150,000 | |Total life-cycle cost |$6,000,000 | 2. Projected Life Cycle Income Statement | |Revenue ($150 per ton [pic] 50,000 tons) |$7,500,000 | |Sale of land (plug after inputting other numbers) |500,000 | |Total life-cycle cost | (6,000,000) | |Life-cycle operating income ($40 per ton ? 50,000 tons) |$2,000,000 | Mark-up percentage on project life-cycle cost = [pic] [pic] = 33? % 3. |Revenue ($140 per ton [pic] 50,000 tons) |$7,000,000 | |Sale of land | 400,000 | |Total revenue |$7,400,000 | |Total life-cycle cost at mark-up of 33? % |$5,550,000 | |($7,400,000 ? 1. 33333) | | |New Life would need to reduce total life-cycle costs by |$ 450,000 | |($6,000,000 – $5,550,000) | | |Check | | |Revenue |$7,000,000 | |Sale of land |400,000 | |Total life-cycle cost |(5,550,000) | |Life-cycle operating income |$1,850,000 | |Mark-up percentage = [pic]= 33? | | 12-35  (30 min. ) Airline pricing, considerations other than cost in pricing. 1. If the fare is $500, a. Air Eagle would expect to have 200 business and 100 pleasure travelers. b. Variable costs per passenger would be $65. c. Contribution margin per passenger = $500 – $65 = $435. If the fare is $2,100, a. Air Eagle w ould expect to have 180 business and 20 pleasure travelers. b. Variable costs per passenger would be $175. c. Contribution margin per passenger = $2,100 – $175 = $1,925. Contribution margin from business travelers at prices of $500 and $2,100, respectively, follow: At a price of $500: $435 ? 200 passengers = $ 87,000At a price of $2,100: $1,925 ? 180 passengers= $346,500 Air Eagle would maximize contribution margin and operating income by charging business travelers a fare of $2,100. Contribution margin from pleasure travelers at prices of $500 and $2,100, respectively, follow: At a price of $500: $435 ? 100 passengers= $43,500 At a price of $2,100: $1,925 ? 20 passengers= $38,500 Air Eagle would maximize contribution margin and operating income by charging pleasure travelers a fare of $500. Air Eagle would maximize contribution margin and operating income by a price differentiation strategy, where business travelers are charged $2,100 and pleasure travelers $500.In deciding between the alternative prices, all other costs such as fuel costs, allocated annual lease costs, allocated ground services costs, and allocated flight crew salaries are irrelevant. Why? Because these costs will not change whatever price Air Eagle chooses t