...their own assumptions to simulate a real-life business startup analysis. The proposed business venture is one of starting a milkshake shack in the island of Hawaii. Students will learn to distinguish between fixed and variable costs, apply some of their own assumptions, and determine whether it would be profitable to open up a new business. INTRODUCTION I present an alternative, more comprehensive teaching approach, for Cost-Volume-Profit (CVP) analysis from the commonly used approach which simply teaches students how to use a series of equations to solve various questions related to CVP analysis, in which unit selling price, total fixed costs, and unit variable costs are assumed to remain constant (Garrison et al. 2010; Choo and Tan, 2010). I use a multi-disciplinary approach in the context of a realistic case-analysis. I believe this approach offers useful insights and provides a useful learning tool for students pursuing an advanced Master’s Degree. The case at hand requires students to: (a) make assumptions about costs in a dynamic and interactive way, and (b) research a variety of marketing issues for the proposed business that simulates a real life business situation. This paper’s approach also helps students see the interrelationships between several concepts learned in basic graduate courses taken in their Master Degree program, and how CVP analysis can be an extremely useful tool for determining the potential success of a business they might consider opening...
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...Shakeaway, they currently have campaign to promote their Christmas winter products to be able to make these products successful they use the marketing mix along with the promotional mix which supports the marketing mix when marketing and promoting the product. The marketing mix is ideas to consider when Shakeaway is marketing their new winter milkshakes, the promotional mix is how Shakeaway communicates with different target audience and is one of the key element within the marketing mix. Marketing Mix: The marketing mix is made up of seven Ps, these known as, Product, Price, Place, Promotion, Packaging, People and Processes. Each element of the marketing mix is used in Shakeaway to help market the new winter milkshake they are currently campaign this Christmas. Product: The first part of the marketing mix Shakeaway needs to consider is the Product. Shakeaway has six new product that is added on their menus for limited edition for Christmas. When Shakeaway produce these products to sell it was important they considered, product development, product management, product features, packaging, branding and after sale service. Shakeaway uses product development to continue the launch of competitions worldwide to create new flavours for their customers, along with trying random and strange combinations of their imaginations to see if they blend well which is what Shakeaway new Christmas milkshake consist of. Along with even diversifying the business to branch off into new ideas to continue...
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...Being an milkshake addict, when I was first hired at the Nutrition Zone health food shop I thought I had died and gone to heaven. It was the perfect job: nothing to dangerous, friendly people, flexible hours, good money, and all the ice cream/ milkshakes I could eat. I was set. The two days of training before my first shift were a breeze Everything came pretty easily. I memorized the location of all the products and learned how to work the cash register. I even discovered that I even enjoyed making the difficult shakes as well. I thought I was ready for anything. Then night before my first shift I could barely sleep I was so excited; I woke up the next day ecstatic that finally the moment of truth had come: the first shift of my first job. I left for work fifteen minutes earlier than necessary to make sure I got there on time. When I got to the shop I parked my car and went in, said hello to everyone, washed my hands, put on my outfit, and started helping the first customer. After about an hour of pretty steady flow of customers there was a lull in the action so my boss decided to go get some lunch, leaving me and my co-worker, by ourselves. Almost immediately after my boss had left, a large group of older women came in to order milkshakes. Being new, I was slightly overwhelmed at the sheer size of the group, but what came next was something I'll never forget. I walked down to the end of the counter to greet them and to start getting their order. I said Hi...
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...Håkon Olaisen Case Study – “Does This Milkshake Taste Funny?” BUS 565-02 – Organizational Theory and Development Dr. Nanette Metz George Stein is a college student who is working at Eastern Diary during the summer to satisfy his immediate need for dating and car money. He chose to work for Eastern Diary because it was unionized and the wages paid were more than twice the minimum wage George had been paid on previous jobs. George, after a brief visit with the HR director, was assigned to work the night shift. The night shift was from 11:00 PM to 7:00 AM six nights a week (Sunday through Friday); the regular wages were paid, supplemented by 8 hours of guaranteed overtime each week. This implied that George would be able to save up a tidy sum of money during the summer. Eastern Diary manufactured milkshake and ice cream mix for a number of customers in the metropolitan area. The ice cream mix was sold in 5- and 10-gallon containers to other firms, which then added the flavoring ingredients, packaged and sold the ice cream under their own brand names. Their milkshake mix was sold in 5-gallon cardboard cartons, which contained plastic liner. Eastern Diary delivered these packages to various restaurants in the area. The design of the packaging enabled it to fit into automatic milkshake machines, used in many types of restaurants and drive-ins. The night shift consisted of a six-person crew of operators. Paul Burnham, a member of this crew, received each night`s production orders...
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...Understanding the Job MKT/571 April 5, 2013 Understanding the Job No one escapes milk. From birth to infancy, childhood, adolescence, and adulthood, milk accompanies every person’s journey through life. Milk is the first thing babies taste outside their mother’s protection and it is a primary ingredient of cheese, a widely favored addition to food served throughout one’s lifetime, or butter, that is just as popular and widely used flavor enhancer. Others use milk for practical applications at home. Everyone knows milk and its use at home and commerce is vast and extensive. However, its most basic utility is to provide nutrition. The following discussions describe the job of milk, specifically cow’s milk, using Clay Christensen’s milkshake analogy and explain the role of marketing in affecting consumer behavior by using strategies to attract target markets. The job of milk Breakfast usually involves food and milk. At the morning table, people use milk as a beverage to complement cereal, an additive to coffee, a simple refreshment to break the evening fast, or a complete source of protein for most. Using Clay Christensen’s model, people hire milk to satisfy hunger upon waking up in the morning, add flavor to other foods or drinks, and provide nutrition to men, women, and children who need calcium, vitamin D, protein, and other essential nutrients. Throughout the day, people hire milk to perform the jobs mentioned without limitation to time or place. Milk is convenient...
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...Paper: Does This Milkshake Taste Funny? Crisis Management Dr. Long Zhang Lauren Morales Date Submitted: 04/06/2015 In the case “Does This Milkshake Taste Funny?”, the ethical dilemma that faces George is whether to listen to a fellow co-worker and save time and money by allowing a contaminated mixture for milkshakes to be produced, or to refuse to remove filters for the mixture and report the issue to upper management. There are several reasons why George may have acted unethically. The first reason is that, removing the filters would be the easy way out; he and the night crew would do nothing more than they do on any other given night shift. Removing the filter's as his co-worker Paul had instructed would also ensure that all work objectives are completed and that the crew would be finishing the shift on time. Trevino and Victor (1992) state that “when monitoring [for a firm] is difficult or costly, employees may take advantage of the opportunity to pursue self-interested behavior at [the firm's] expense.” Also the homogenizer would pulverize any traces of whole maggots and the pasteurization process will likely kill the bacteria from the maggots making the chances of anyone finding out about the infestation very slim. Eastern Dairy would also likely save thousands of dollars by not letting 500 gallons of mixture go into the trash. However, I feel the reason to listen to Paul that would weigh heaviest on his mind is George's thoughts and fears on how others would...
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...Joshua R. Upthegrove MGT 585 – Dr. Pane Case Analysis 2: Does this Milkshake Taste Funny? In this scenario, George Stein, a young college student, employee, son, and boyfriend ends up facing an ethical dilemma, in which he must evaluate what possible scenarios, could be right or wrong. However, can George overcome the possible scrutiny from his colleagues, if he decided to go the route adverse their recommended action? With just a thought he can already hear their negative statements and derogatory comments (Robbins, De Cenzo & Coulter, 2013). Within this analysis, critical points are analyzed with respect to what might cause George to act in an ethical manner or an unethical manner, in the situation that stands before him at his workplace. As Alahmad (2010) indicated, ethics are a person’s concept of right and wrong. Will George do what’s right on his moral compass, or wrong? In a society so based on competition and innovation, one must always stay true and honest; in which case they won’t have to worry if they are keeping up and remembering the next lie. “If you tell the truth, you don’t have to remember everything.” (Alahmad, A., 2010). Background George is an East coast college student who has spent the entirety of his life in modern suburbia. Like most his age, his interests remain rather ordinary, gathering with the locals his age at the city spot (drive-in restaurant), fast cars, and of course girls. George had not necessarily wanted to be a college...
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...filters form the plant’s piping and allow the current production run of milkshake mix to be contaminated with maggots. On the one hand, if George could do Paul told him to do, he can have many benefits. George can go on the good job to make money and he can avoid to study. He could go back home on time. And, Working at Eastern Dairy seemed relatively easy for him since it paid twice the amount he used to earn in his previous job. One the other hand, if refuse to remove the filters, and report the maggot problem to management, he will have some advantages and disadvantages. First, he would be happy because he can avoid all innocent kids to drink milkshakes contaminated with pulverized maggots. Also, he will win praise from all kids’ parents because of social responsibility. However, he have some disadvantages about the job. He will lose the job and he cannot continue to get extra money from Eastern Dairy. Moreover, Eastern Dairy will compliant about having to close down his business. Also, Paul will express criticism of losing job. No matter how George choose, he have to face with an ethical dilemma. In the case, George was confronted with an ethical dilemma. His thoughts and actions were affected by several factors, including his personal moral values and corporate social responsibility caused by improper management of the company. This case is a good example about the lack of ethics. George doesn’t make right decision in the end of case because he have to struggle against...
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...Mc Donald’s case: I. Overall success: -Founded: 1955 - Franchising since: 1955 - History: Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955. McDonald's and the Golden Arches have since become an internationally-recognized symbol of quick-service hamburgers, fries, chicken, breakfast items, salads and milkshakes. - The business model works, and with national and international advertising, McDonald’s Corporation manages to serve 27 million Americans everyday. - 32,478 units gives employments to 1,5 million people (2009). - McDonald's brand is in 122 countries around the world. Over thirty thousand locations serve 51 million customers worldwide each day. - More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local businesspeople. - Revenue: $22,745 million (2009) II. Mc Donald’s and franchisee agreement: * Initial required cash liquidity: 300,000 (2009) * Total investment: $1,057,200 - $1,885,000 - Franchise fee: $45,000 - Terms of agreement: 20 years, renewal * Initial (franchise) fee * Royalty...
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...from it. It’s like those Sunday morning phone calls form ad companies telling you that you have won a free gift for shopping at Wal-Mart. Quality of the product is the main factor in fast food. You can make fast food taste good, but if the quality poor, then it’s no good for you. The best products, makes the best quality. So how do you know who’s right for your craving. How can you determine what fast food taste better, and the cost is better. In the 1940’s was the beginning of the burger era. It was the times to start a business, where in the future it will be, one of the greatest things that have happen. McDonald’s started out in 1940 as BBQ restaurant. It wasn’t until 1948 they closed down for a few months to change it into the franchise they are. It was a simple burger joint, you know the one’s that served only hamburgers, potato chips, and soda. It wasn’t until 1949 they started serving French fries and milkshakes to their customer’s. In-N-Out burger was founded in 1948. They started off as just a burger place with fries and a bottle drinks. In 1958 they replaced their sodas with fountain drinks. They made it easy for their customers to eat in their cars in 1961 by making wax paper lap mats for the car eaters. They were a small business, but knew what would make their customers happy. McDonald’s by 1958 had sold over 100 million in burgers; while In-N-Out had only 5 small restaurants open in California. By this point, McDonald’s was all over America and growing...
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...Case Study 2 – Does This Milkshake Taste Funny? Clinton E Harris Texas A&M University – Commerce February 15, 2014 Introduction George Stein is a college student hired by Eastern Diary. Without any training, George was immediately assigned to the night shift who operated without supervision. The night shift was led by another laborer named Paul Burnham who was given the production orders by the plant supervisor as he was leaving for the day. The night crew was given two objectives, to complete the assigned production runs and clean the machinery before the night shift was over. Stein’s dilemma began when contaminated milkshake mix was clogging the filtration system of the equipment. Burnham instructed Stein, after several attempts to clear the clogging, to remove the filters altogether to ensure the batch completed before the end of the shift. Removal of the filters meant that the maggots that were contaminating the mix would be allowed to flow into the customer’s end product. There are several key management deficiencies that led to the dilemma faced by Stein and the night crew. First, Burnham’s decision making process and the lack of quality standards are indications that the company’s cultural climate is not focused on producing a quality dairy product. Second, the absence of a formal leadership structure allowed a young crew of unsupervised workers to waste company time and resources which resulted in a poor decision to meet the expectation of completing the...
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...London School of Business & Management QCF level 4: BTEC Higher National Diploma Centre No Unit No & Unit Title Course Title Lecturer’s Name Assignment Title Assignment No Date Set Due Date Semester / Academic Year 79829 Unit 21: Human Resource Management HND Business Nooreen Jafferkhan Human Resource Management No: 1 02 October 2014 09 January 2015 September 2014 Unit Outcomes Covered: LO 1: Understand the difference between personnel management and human resource management LO 2: Understand how to recruit employees LO 3: Understand how to reward employees in order to motivate & retain them LO 4: Know the mechanisms for the cessation of employment GRADING OPPORTUNITIES AVAILABLE Outcomes/ Grade Descriptors P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P14 P15 V Outcomes/ Grade Descriptors M1 V M2 V M3 V D1 V D2 V D3 V V V V V V V V V V V V V V V COMMENTS: Assessor Signature: ______________ IV COMMENTS: Date: ___/___/___ 1 Tutor Notes Key Points: Your assignment should be handed in by the deadline. The assignment must be your own work and original. All sources of reference must be included. You will be expected to check spelling mistakes and grammar. Your name, student no and unit no should be in the footer of every page. It should bear an appropriate report structure (such as a Table of Contents, Introduction, Discussion, Conclusion, References, and Appendix (if...
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...A Case Method Approach of Teaching how Cost-Volume-Profit Analysis is connected to the Flexible Budgeting Process and Variance Analysis To start a successful business, students need to understand the steps necessary to achieve their desired profits. While Managerial textbooks teach each step independently, we demonstrate how these steps are integrated. We present a Multi-Disciplinary Case-Method approach to teaching Cost-Volume-Profit (CVP) Analysis. Finally, students prepare a Flexible Budget demonstrating the importance of distinguishing between activity and revenue/spending variances. INTRODUCTION “We first present an alternative, more comprehensive teaching approach, for Cost-Volume-Profit (CVP) analysis from the commonly used approach which simply teaches students how to use a series of equations to solve various questions related to CVP analysis, in which unit selling price, total fixed costs, and unit variable costs are assumed to remain constant (Garrison et al., 2010; Choo and Tan, 2010). We use a multi-disciplinary approach in the context of a realistic case-analysis. We believe this approach offers useful insights and provides a useful learning tool for students pursuing an advanced Master’s Degree.” (Machuga, 2012). This case requires students to: (a) make assumptions about cost behavior in a dynamic and interactive way, and (b) research a variety of marketing issues for the proposed business that simulates a real life business situation, and (c) use the...
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...Christopher Hernandez MGT 307 – N Case #2 Analyze the case from George Stein's perspective: 1) What factors play into the dilemma? There are a number of factors that play into George’s dilemma in this case, but before I begin to analyze those factors lets briefly reexamine the situation. George Stein is working at a milkshake/ice cream mix supply company called Eastern Dairy. George is working at Eastern Dairy for the summer and he works the night shift. The night shift is unsupervised and ran by 4 or 5 assembly workers. George has gotten along with all his fellow employees and together they have formed quite the comradery. Paul, one of the assembly workers on the night shift, has become somewhat of a self elected supervisor of the shift. All of the employees of the night shift get along very well and enjoy their time together thoroughly which has allowed George to really enjoy his time at work. One night they are faced with a problem regarding the filtration of the mix. All the filters are getting clogged up due to a bad batch of mix filled with maggots. Now, the employees can either repeatedly unclog the filters and reattach them over and over until all the mix has completed the filtration process or they can remove all the filters and allow the maggots to stay in the mix until it has gone through the homogenizer and the pasteurization process, which according to Paul will “Pulverize” all solid matter and destroy any bacteria. The issue with constantly removing...
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...Schwartz: Ch 3, p.56-62 (availability, anchoring), p. 48-51 (peak-end) 1. Many examples of irrational judgments presented in class and the readings involve subjective judgments, such as how much you would be willing to pay for something. A possible objection is that subjective judgments cannot be considered “irrational” because they just reflect individual preferences. Does it make sense to characterize a subjective judgment as “irrational”? Why or why not? Justify your answer, and explain how irrationality could or could not be assessed for a subjective judgment. Rational judgments are usually made using cost-benefit, efficient analysis....
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