...Bobby’s Burgers is a large restaurant chain that has nearly 10,000 units worldwide. They are experiencing incentive problems with their outlet managers. The managers are showing poor work ethic and are allowing their units to deteriorate in quality. CEO, Bobby Jones is considering offering a stock plan where each unit manager will receive 500 shares of stock in Bobby’s Burgers. He believes that this will motivate his managers. Is his logic sound? Analysis If I am critically evaluating the proposed stock plan, I am not sure if giving 500 shares of stock is necessarily the greatest idea to motivate your managers. In this case, the managers are being given the 500 shares as opposed to earning the 500 shares. Based on the information we have been given, the managers have done the exact opposite of earn the shares considering they are allowing their units quality to deteriorate. Rewarding them for their lack of effort may give them an even worse mindset than they already have. What is to stop them from thinking that they will continue to be rewarded for subpar performance? A better option would be to give them an opportunity to earn the shares as some kind of performance bonus. That way they will have truly earned it and performed their job better in the process. It would be a win for both sides. On the other hand, granting the stock options could potentially give the managers a better feeling of self worth. If they feel that they are part of something, they may be more inclined...
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...Analyzing Managerial Decisions: eBay.com by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning November 24, 2013 Analyzing Managerial Decisions: eBay.com Ronald J. Sanders Saint Leo University MBA540 Analyzing Managerial Decisions: eBay.com 1. How does ebay create value? Ebay brings together million of buyers and sellers to its online portal creating value through virtual shopping through auctioning for goods and services. Virtual auctioning serves as another concept of allowing consumers to shop from anywhere, other than conventional stores. Additional value is added by creating safe secure measure for buyers to make payment. Without a secure method of payment, customers will feel skeptical about making purchases. The feedback forum is a way for shoppers and sellers to learn about the product or service rendered through a rating using “stars.” 2. What potential contracting problems exist on ebay? The seller would possess asymmetric information regarding the item being sold and the condition the item is in. This outs the online buyer at a distinct disadvantage .One of the potential problems that may exist is the advertising of damage goods. Even though ebay has participants sign a user agreement, there no way to know if the product is significantly damage through a photos. Fraudulent selling of merchandise can be an issue because the product can easily be disguised and service inadequate. The product may not...
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...Analyzing Managerial Decisions: eBay.com Amy T. Swindell Oklahoma Wesleyan University Adult & Graduate Studies BMB014 Analyzing Managerial Decisions: eBay.com 1. How does eBay create value? eBay creates value by bringing together buyers and sellers in online forum that enables people to buy and sell a wide variety of goods. It is a mechanism for people who want to do their shopping from their home to do so. It also provides a safe and secure way for buyers and sellers to complete transactions. 2. What potential contracting problems exist on eBay? One of the contracting problems might be the selling of damaged or inferior products by fraudulent sellers. Another would be the misuse of eBay by trading banned items. Another would be that the seller may deliver a product that doesn’t meet the expectations of the buyer based on the item description or there could be non-payment of goods by the buyer or non-delivery of the goods by the seller. It is also difficult to judge the authenticity of buyers and sellers in advance, which creates a problem for eBay by having to verify the people involved in the transaction. Also, another problem would be transportation of goods from one place to another. eBay has no control on the delivery schedule of products as they have to rely on the transportation system the seller chooses. 3. How does eBay address these problems? eBay addresses these problems by insuring the buyers for non-delivery/damaged...
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...Analyzing Managerial Decision in an Organization In every organization, the aim and objectives of organizational manager is to be able to make effective and efficient decisions that aid in turning the organization around. They tend to develop a strategy that promotes economic growth and discourages competition. Organizational shareholders need to understand how a shift in demand and supply can affect organizational productivity and price stability. They need to examine their decisions in such a way that will not affect the pillar and foundation of the firm. They need to avoid all the roadblocks that hinder growth. Managers do make decisions that have significant effect on economic output, input, pricing capital expenditures and other strategic decisions. If decisions are not examined effectively, it will leads to organizational failure and collapse. Poor decision on pricing and productivity can drive down economic value for the firm. Bad economic decisions and policies within the firm can result to loss of profit and sustainability in the organization. According to (Brickley, Smith & Zimmerman, 2009) successful firms make decisions that effectively link decision making authority with good decisions right (p. 5). They introduced the organizational reward and performance system. The reward system motivates organizational stakeholders to be able to contribute tremendously to the development of the organization by increasing the market value. Strategies are developed by organizational...
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...Analyzing Managerial Decisions: Medford University by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning December 1, 2013 Analyzing Managerial Decisions: Medford University Ronald J. Sanders Saint Leo University MBA540 Analyzing Managerial Decisions: Medford University 1. Rather than approaching Medford University Human Resource department to propose a plan, President Kobayashi designated a task force to mull over the matter of fringe benefits. President Kobayashi designated a task force to reduce expenditures and develop a new fringe benefit package that was for the employees of the University. But while the analysis takes place, President Kobayashi does not want to disturb the value of the faculty or the staff. The president has designated a top administrator, to head the task force. He also appointed other various members to be a part of the task force, including the vice provost, who would function as the secretary of the task force.. These members are presumed to have specific knowledge that would help in the process of making the decision. If the president had asked the human resource department to put together a new benefits package, there may have been cause or concerns about who the package being created for upper class, the wealthy, and even show favoritism toward certain colleagues and staff members. 2) The president should supply the task force with a copy of the university’s financial report. The...
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...Analyzing Managerial Decision: United Airlines by Ronald J. Sanders HCM-540, MBOL5, Health Care Organization Instructor: Wenyuan Teng Saint Leo University Distance Learning November 10, 2013 Abstract United Airlines is one of many airlines that look to capitalize on it’s ability to provide air service to the consumer. Like other airlines, it is challenged to be creative and profitable in a changing market. The creativity may involve creating flights or analyzing the cost associated with providing a service. This paper offers some insight on the case study of United Airlines and provides some analysis on the managerial decisions within the company. The scenario given in the case study speaks about a situation of declining profits and the costs of operating were growing. A dialogue of cost and market organization will be noted and the recommended managerial decision of; whether the airline should run a specific flight or not. Introduction When making a business decision, many factors should be considered. The market structures in the economy are important in seeking whether the company is reasonable to continue to operate or not. The structure of the market or characteristics of the market environment that United Airline operates in is competitive market. Competition market is an economics term that refers to firms that have no influence on market price and take it as given. (Brickley Smith & Zimmerman, 2009). For United Airlines to operate...
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...Analyzing Managerial Decisions: Rich Manufacturing 1) Cost plus pricing is used by many companies for various reasons. Companies first “calculate average total cost and then mark up the price to yield a target rate of return.” (Brickly, Smith, Zimmerman, p. 211). Companies use this approach to protect themselves from increase in production costs by adding their desired rate of return. This approach is also used by many companies because of its simplicity. With supply contracts, it guarantees reimbursement of cost and producing profit with no risk of loss. (Accountingtools.com, para. 2). 2) Potential problem with using cost plus pricing is that it ignores marginal cost and price sensitivity of customers. (Brickly, Smith, Zimmerman, p. 211). Price sensitivity is essential to pricing strategy in order to maximize profit. In addition, cost plus pricing is not responsive to market changes. (Magloff, para. 6). When customer demand and competition are not considered, companies can end up pricing their product too low where competition takes away potential profits or end up earning low profits by pricing their product too high. (Accountingtools.com, para. 3). Another problem with cost plus pricing is that it does not encourage supplier to limit expenditures. Hence, suppliers will have no incentive to reduce production costs. (Accountingtools.com, para. 3). 3) In this case, Gina should not contest the price increase because the current contract states that Rich manufacturing...
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...Analyzing Managerial Decisions: eBay.com 1. How does eBay Create value? eBay created value by ways of connecting businesses and individuals together to sell, trade, buy or trade their products. Many have witness a safe, quick and easy way to move products across the globe. This save on trying to reach buyers and sellers through local or community papers, which limits the amount of people reached. eBay also has the website structured where it is easy to locate what the seller or buyer is seeking. These different sites show many of the same items that you can choose from, negotiate, as well as compare. Anther value is that buyers are able to purchase below the market value. Buyers and sellers have the option to see tips that are offered. You may be a new-comer and need assistance, which can be provided through eBay. Sellers do have the option to set up and advertise several products at discounted prices. 2. What potential contracting problems exist on eBay? There are many potential and actual problems that have exist on eBay. In order to sell or purchase, you will have to set up an eBay account, which a signed user agreement is part of the set. A possible contracting problem is if a buyer wins an action and doesn’t pay for the product in the time it should be paid then the seller is at a loss. Also, this could be the reverse, the buyer can purchase and the seller doesn’t deliver on time or the product may not turn out to be what the buyer thought if should be...
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...Analyzing Managerial Decisions: Eastman Kodak by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning November 24, 2013 1) What factors motivated Kodak to change its organizational architecture? There were several factors that persuaded Kodak to make changes to its organizational architecture in 1984. Kodak had come to the conclusion that its present organizational architecture did not fit the current business environment for the industry. The biggest factor that persuaded Kodak to make a change was the growing competition in the industry and losing the dominance it once had in the film market. The emergence of new product being made by Fuji Corporation dwindled away their market share. In the early 1980’s, Kodak saw their share price drop from a high of $85 to a low of $71 in 1984. This was cause for change to its organizational architecture. In order to stop the bleeding, Kodak realized it had to restructure and react quickly. With developing technology, Kodak was losing ground fast and was no longer the conglomerate it once was. 2) What mistakes did Kodak make in changing its architecture? Kodak was faced with trying to regain market share. It needed to quickly make changes to respond to shareholders concerns. There were obvious advances in technology that concerned Kodak. Kodak restructured creating 17 new business units with profit-loss responsibilities. Unit leaders were given increase decision-making...
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...Rich Manufacturing So many firms use cost-plus pricing for supply contracts because it is the easiest method in order to calculate cost and eliminate error. Most of the time when firms are working with numbers, they must find ways that are efficient and not time consuming. What managers do is simply target a rate of return thus saving time and increase efficiency. In fact, it can be more useful in some occasions than others. As stated by Brickley, Smith, and Zimmerman (2009), “cost-plus pricing is more useful when the rate of return that yields the profit-maximizing price on the product is relatively stable over the relevant range of cost variation for a given product and varies little across a related set of products. (p. 212). One of the potential problems I envision with cost-plus pricing is the attention to consumer demand. For cost-plus pricing, this aspect is very much ignored. According to Brickley, Smith and Zimmerman (2009), cost-plus pricing ignores the rise in costs and neglects how the price sensitivity of consumers. Disregarding demand can be detrimental to a company and is a crucial factor. “If demand is slow, then the mark-up percentage may be lower in order to lure in customers. On the other hand, if demand for the product is high and economic conditions are good, then the mark-up percentage may be higher as the company feels they can get the higher price for their product” (Peavler, 2013). Both of these factors demand and pricing, are critical to increasing...
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...Analyzing Managerial Decisions: Structuring Compensation Plans by HCM-540, MBOL5, Health Care Organization Instructor: Saint Leo University Distance Learning December 8, 2013 Analyzing Managerial Decisions: Structuring Compensation Plans Ronald J. Sanders Saint Leo University MBA540 Analyzing Managerial Decisions: Structuring Compensation Plans 1. Why do you think the compensation plans differ at the two firms? In particular, why do you think Kauffman’s pay commissions to salespeople, while Parkleigh does not? Why does Parkleigh offer employee discounts on purchases, while Kaufmann’s does not? A number of explanations exist for the difference between compensation plans of the two businesses. First, because Parkleigh’s operation philosophy may be that the sales incentive is the driver of sales rather than the fact that high customer service and friendly staff being the driver of sales, particularly when selling to the high end consumers. They may choose to have the sales staff keep the dressing rooms tidy and the clothes neatly placed. The appearance of displayed items has a favorable impression with patrons of the store which would increase store sales. Parkleigh’s employees may be offered the discount simply because he may think that if employees feel an ownership, the merchandise would be easier to sell to other customers. Because an employee is employed by store does not mean an employee can afford the products. Their products are more upscale and...
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...Washington Business Journal Job seekers went mobile, left small employers standing still (Guest Blog) Sponsored Links SurveyMonkey® Make better decisions with the world’s most trusted survey company. SurveyMonkey.com Become a more agile leader for your team Training and certification reinforces your communication and management skills. www.GlobalKnowledge.com Get Listed Here Bob Corlett Founder and President, Staffing Advisors- Washington Business Journal Email | LinkedIn | Facebook | Twitter Where do you think most job seekers begin their search for a new job? Most recruiters will tell you that candidates start by searching on the big job boards like Monster, Dice and CareerBuilder. And those recruiters will be wrong. Ten times more job seekers start their job search on Google than anywhere else. And where do small employers post their jobs? When I ask HR managers where they post their open jobs, they usually rattle off a list of job boards. But they almost never mention Indeed. Yet three recent studies found Indeed to be the number one external source of hire for employers in the US. How did that happen? It’s simple. Two out of three searches of any kind originate on Google. And Google job searches often lead job seekers to Indeed. See for yourself. Type your own title and location into the Google search bar and see what comes up. The first few jobs you will see are probably posted on Indeed. Consequently, Indeed has three times more unique visitors...
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...Chapter 2 Case Study 1. What are the potential sources of the problem? After reading the case study it seems that one problem between the hospitals and upper management seems to be lack of communication. It seems that Singh and Mrs. Manzoni have not affectively communicated to the hospital administrators what the goals of the company are and what is best for the company. I believe that Mrs. Singh and the hospital administrators value the importance of two different things. Mrs. Singh values the importance of correct data entry into the firm’s management information system. While, the hospital administrators seem to be placing more value on the importance of patient services. In addition, it seems Mrs. Singh does not know what motivates the employees to exert more effort. Economists would view the employees’ actions as the outcomes of maximizing personal utility (Brickley, Smith, & Zimmerman, 2009). During the retreat Mrs. Singh failed to effectively communicate to the administrators the high importance of accurately entering data. She should had stressed how incorrect data could possibly effect the aid that they receive. 2. What information would you want to analyze? I would actually choose to thoroughly analyze the data the management information system is currently asking for. I would also review past reports generated by the system and compare them. It would be highly imperative to insure that the system asked the appropriate questions in order to...
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...1980’s, other competitors obtained the ability bring new products to market in a much shorter timeframe (Brickley, 2009, p. 358). Film and related products became more readily available, resulting in a more competitive film production industry. With this changing market environment and technological advancement, Kodak lost its monopoly in the film production market and was forced to make a change. 2) What mistakes did Kodak make in changing its architecture? In order to regain some of its lost market share, the company made some rapid and unbalanced changes to its architecture. However when making changes to one area of the company, it failed to coordinate the changes to other areas. In 1984, the company restructured and changed its decision making process to become more decentralized. As a result, 17 new departments were created. These new business units had profit-and-loss responsibilities, and their corresponding managers were given the responsibility to decide on new products, pricing, and other important policies (Brickley, 2009, p. 359). The result of this major restructuring had very little impact of the company’s plan to regain market share and profits. In reaction to...
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...previous year. An increase of 200 additional students inquired to further their education at the college than the prior year. Most college presidents would attribute this to students believing the college is better if the cost is more. Like other major colleges such as Rice University, University of Richmond and University of Notre Dame, the perception is students of prestigious schools believe costs are related to a better education. To contrast this, 10 years ago, North Carolina Wesleyan College reduced it cost of tuition and fees by 22 percent and watched its number student application fall. Recommendations to resolve the school’s cash flow problems may include the future increase of tuition and fees. This case study deals with the managerial decision of setting tuition and financial. Many factors are associated with demand and price elasticity of demand. There is an economic relationship between demand and price? After reading this paper, student will have a better understanding of those things that may affect tuition and fees for colleges. Introduction An individual can demand so many things. The concept of demand can be easily explained. Every person has a demand. The purchasing power of a demand satisfies the want. The amount of product or service that is needed by a person at a given price is the demand of that product or service. The demand of a product has many factors such as income, price, and availability of substitutes and compliments (Brickley, 2009). As displayed...
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