...Surviving the $15 Minimum Wage: McDonald’s Struggle to Remain Competitive Rasel Ahammed Dario Colon Gonzalez Gregory A. Delts Valerie Demas Keller Graduate School of Management Professor Vera Daniels MGMT 530: Managerial Decision Making November 27, 2015 Table of Contents Page 3: Executive Summary Page 4: Introduction-Overview of Decision Problem Page 4: Problem Statement Page 5: Objectives Page 6: Summary of Key Objectives Page 6: Alternatives Page : Description of Alternatives Page : Selection Page : Consequence Table with Original Values Page : Ranking Alternatives Page : Scoring Model: Title Page : Weighted Scoring Model: Title Page : Consequences Page : Risk Profile: Title Page : Implementation, Monitoring, and Control Page : Timeline Page : Summary Page : Works Cited Executive Summary McDonald’s restaurant chain, long considered an industry and community leader, has begun to experience a reversal of its corporate fortunes. They have seen a steady decline in total profits, sales, and a weakening of their corporate image. To add to their troubles, New York State Governor Andrew Cuomo, and a growing number countrywide are in the process of approving a bill almost doubling the minimum wage for fast food workers from $8.75 to $15. The problem is, knowing that there will be a dramatic increase in salary expenses in the next few years, how can McDonald’s alter its business practices...
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...Scope of Topic: Is a $15 minimum wage in large American cities fair to the affected businesses? On Nov 2014, San Francisco has voted to raise the minimum wage to $15 over a course of the next three years. This article intends to analyze the impact of the decision on businesses. The ripple effects of the wage hike are felt not just businesses that employ blue-collar workforce but also by larger corporations and the US economy as a whole. The wage hike is primarily aimed at providing economic stimulus to blue-collar workforce, who must live off their hourly wage. The article will be segmented into two parts – Fair and Unfair. Reasons that highlight both standpoints will be listed out and discussed in each segment. Fair to US Businesses Reduces employment and training costs. Employee turnover, ranging from 50 to 200%, is a serious problem among many businesses that employ a major chunk of the blue-collar workforce. (For example, an employer with annual turnover of 100% means that the firm is employing two different people for one position). All this translates to roughly 30 to 150% of yearly pay . Increases consumer spending due to increase in Purchasing Power Parity (PPP). Research undertaken by the federal government and also research agencies, indicates that wage hike results in approx. $50 B in spending. This increased spending can be captured by businesses in general. GDP grows by $22B , which leads to better business. Research by EPI, a research group funded...
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...raise the minimum wage incrementally to cover the increased costs of living, increase productivity, and reduced turnover. BACKGROUND: The federal government began regulating wages with the Fair Labor Standards Act of 1938. This established a price floor of what we know to be minimum wage, it also defined the standard work week, and guaranteed time and a half for overtime hours. The original purpose of stabilizing the minimum wage was to, “protect all employees from any alterations in the economy” (Andrade). Currently 29 states and Washington D.C. have set their minimum wages above the federal minimum of $7.25. People argue that a high minimum wage hurts small businesses and inflates...
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...The Politically Incorrect Guide to Capitalism: A Summary Naomi Craig Mount Vernon Nazarene University The Politically Incorrect Guide to Capitalism: A Summary The Politically Incorrect Guide to Capitalism is a 2007 publication from Regenery Publishing, Inc., and written by Dr. Robert P. Murphy. The central idea of this work aims at dispelling myths and notions that capitalism is based on greed, and inherently evil. This aim of this report is to summarize the work of Dr. Murphy by providing a brief history of the author and recapping the major points of his book. Author’s Professional History Dr. Robert P. Murphy received his Bachelor of Arts in Economics from Hillsdale College in 1998, and his Ph.D. in 2003 from New York University (Institute for Energy Research, 2012). He was a college professor for nearly three years before pursuing his writing and research endeavors. He is a now senior fellow in business and economic studies at the Pacific Research Institute, an economist with the Institute for Energy Research, a research fellow with the Independent Institute, and an associated scholar with the Ludwig Von Mises Institute. In addition to the topic of this summary, he has written another book titled “The Politically Incorrect Guide to The Great Depression and The New Deal,” and regularly writes articles for financial publications including Forbes and Barron’s (Institute for Energy Research). Summary of Literature Dr. Murphy presents many commonly held...
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...Smith, Advertising Department Supervisor From : Jason Vu, Advertising Associate Date : March 24, 2010 Re : New Approach for Extra Income As a consequence of the recent increase in minimum wages, there is an increase in the discretionary income of our current advertising base. People with more money tend to spend more. Our current advertising approach does not take this into consideration. This is a proposal to modify the approach in our advertising strategy so that we can take advantage of the coming shift in our advertising base and enhance our advertising revenue by expanding our potential client base. The rationale behind the proposal and its implementation will be elaborated in the following report. When people have achieved basic survival needs such as food, shelter, and relatively secured physical and financial safety, they seek to attain things that they haven’t yet possess, such as status symbols or a sense of belonging to an exclusive group. If we can encourage our existing advertisement consumers to spend their extra income, hence shift the demand of our current advertising base to consume more upscale products, then we stand to gain an expanded and more profitable set of ads buyers. This project is a market study in potential new products in which ads targeted for the new minimum wage consumers segment can be created. This project will determine the current advertising consumers’ income. The result of this project will be used in devising a strategy to create and...
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..."Shellie" Cobbs Human Capital Management HRM 531 Linda Johnson March 15, 2015 Employment Law Compliance Plan atwood and allen consulting memorandum to: Traci Goldeman from: Shellie Cobbs subject: Employment Law compliance plan for Landslide Limousine date: March 15, 2015 cc: Bradley Stonefield I have researched several employment laws for Mr. Stonefield’s Landslide Limousine Company and there are four laws that I will outline for Mr. Stonefield to consider complying with in his new business venture. I will discuss in this memo the Civil Rights Act of 1964 regarding employment discrimination, The Americans with Disabilities Act of 1990 regarding people with disabilities, Equal Pay Act of 1963 regarding wage discrimination between men and women, and lastly the Texas Minimum Wage Act regarding the least amount of an hourly wage payable in the state of Texas. I will give a brief summary of each of the four Acts and consequences for noncompliance. Civil Rights Act of 1964 The Civil Rights Act of 1964 is regulated and enforced by the Equal Employment Opportunity Commission (EEOC). As a new business, if you receive any federally funded monies such as grants, assistance, or subsidies The Civil Rights Act of 1964 applies to you. The EEOC “enforces laws that prohibit discrimination based on race, color, religion, sex, national origin, disability, or age in hiring, promoting, firing, setting wages, testing, training, apprenticeship, and all other terms and conditions...
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...http://www.thefiscaltimes.com/Articles/2013/08/06/Are-the-Fast-Food-Workers-Right-About-Minimum-Wage Summary of the article: The article is focused in a current controversial issue that involves the fast-food industry and how right are their workers about increasing their minimum wage to $15. The article mentions how a basic living standard is what fast- food workers make to support themselves. The labor Bureau reported that 28 percent of core front-line fast-food workers regularly work 40 or more hours per week, compared to 75 percent of the country’s workforce as a whole. More than two-thirds of workers across the country are over the age of 20, and 68 percent are the main wage earners in their families, and more than a quarter of Americans working in fast-food restaurants are parents, raising at least one child. People who work in fast-food jobs are paid so little that having to rely on public assistance is the rule, rather than the exception, even for those working 40 hours or more a week. Fast food is a $200 billion-a-year industry. The wage for core front-line workers at fast-food restaurants nationally is $8.69 an hour. Only 13 percent of the jobs provide health benefits. The fast-food industry’s low wages and meager benefits, often accompanied by part-time. The article also explains that on the other hand the food industry could react differently to this demand reducing the headcounts. Eventually, putting pressure on those employers will emerge that have trained...
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...describe the major features of the US Department of Labor Website at http://www.dol.gov/dol/topic/health-plans/cobra.htm. The first feature is Wages Subtopics. Wages Subtopics provide additional information employees can use to help monitor their wage benefits. By choosing from the Wages subtopics list it will also help employees narrow their browsing. This information is useful so that employees and employers understand employee qualification for benefit programs. The Department of Labor enforces the Fair Labor Standard Act (FLSA), which sets basic minimum wage and overtime pay standards. These standards are enforced by the Department's Wage and Hour Division. This law was enacted in 1938. It protects workers by setting standards for minimum wage, overtime pay, record keeping and youth labor. FLSA covers full-time and part-time workers in the private sector and in federal, state, and local governments. The law may apply to you because of the type of company or organization for which you work, known as enterprise coverage, or the type of work you do, called individual coverage (Roseburg, 2013). Minimum Wage Non-exempt employees must be paid a national minimum wage established by the US Congress. As of July 24, 2009 that wage is $7.25 per hour. Some states have set their own minimum wage. The employer must pay federal or state wages-whichever is higher. Overtime Pay Employers must give overtime pay to non-exempt employees who work over 40 hours per week. They must pay these...
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...INSTRUCTOR’S MANUAL Learning Objectives 1. Determine a taxpayer’s regular tax liability and identify tax issues associated with the process. 2. Compute a taxpayer’s alternative minimum tax liability and describe the tax characteristics of taxpayers most likely to owe the alternative minimum tax. 3. Calculate a taxpayer’s employment and self-employment taxes payable and explain tax considerations relating to whether a taxpayer is considered to be an employee or a self-employed independent contractor. 4. Describe the different general types of tax credits, identify specific tax credits, and compute a taxpayer’s allowable child tax credit, child and dependent care credit, American opportunity credit, lifetime learning credit, and earned income credit. 5. Explain taxpayer filing and tax payment requirements and describe in general terms how to compute a taxpayer’s underpayment, late filing, and late payment penalties. Lecture Notes 1) Regular Federal income Tax Computation a) Tax Rate Schedules i) Schedule depends on filing status. ii) Each separate range of income subject to a different tax rate is referred to as a tax bracket. iii) Each filing status has its own tax rate schedules which consists of tax brackets taxed at 10 percent, 15 percent, 25 percent, 28 percent, 33 percent, 35 percent, and 39.6 percent. iv) The IRS provides tax tables that present the gross tax for various amounts of taxable income under $100,000...
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...state, also will provide a brief summary of each law and the consequences of noncompliance with those laws. Employment law in Michigan and Detroit are regulated by state and federal law, one of the major federal law that affects almost every organization in the United States, the Fair Labor Standards Act (FLSA) (Cascio, 2013, p. 456). The Fair Labor Standards Act (FLSA) The FLSA establishes minimum wage, overtime pay, record keeping and child labor standards covering full-time and part-time workers in the private sector and in federal, state and local government. (azleg.gov, 2013, p.3) and also is credited for the establishment of the first minimum wage in 1938 of .25 cents an hour. The FLSA covers both exempt employees (exempt from the overtime provisions of the law) and nonexempt employees (Cascio, 2013, p. 456) and these federal regulations are enforced and administred by The U.S. Department of Labor (DOL). Although both states, Michigan and Arizona, have to remain compliant with the FLSA to avoid fines and other punishments for non-compliant, they have slightly different state law in regards to employment topics covered under the FLSA such minimum wage and overtime, that the HR Directors at Clapton Commercial Construction would have to adjust to with an expansion to Arizona. Minimum Wage Law In 2007 President Bush signed legislations increasing the federal minimum wage, which is currently $7.25, in states where the state minimum wage mandates a higher rate of pay the...
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...Minimum wage in Hong Kong Table of Contents 1. Part 1: Minimum Wage law in Hong Kong 2 2. Introduction 2 3. Minimum Wage – Economic Theory 2 4. Introduction in Hong Kong – May 2010 3 5. Impacts – 15 months later 5 5.1. Employment 5 5.2. Firms profitability 6 5.3. Inflation 7 6. Economic cycle considerations 9 7. Part 2: Housing issues in Hong Kong 9 8. Introduction 9 9. Housing situation in Hong Kong 9 10. Housing Demand in Hong Kong 11 11. Housing supply in Hong Kong 14 12. The Current Government Policies 15 12.1. Policy 1: 15 12.2. Policy 2 16 12.3. Policy 3 16 13. Conclusion 17 14. Bibliography 18 Part 1: Minimum Wage law in Hong Kong Introduction The Hong Kong Government introduced of a Minimum Wage in Hong Kong in May 2011, in response to increased incomes disparity in the territory. It uses economic theory to predict certain impacts such as level of employment, profits of firms, inflation effect and potential positive effects on the economy in general. Minimum Wage – Economic Theory Economic theory tells us that when artificial price floors are introduced in the market, they force prices to remain above the level that balances supply and demand. The same is true with minimum wage; it raises the quantity of labor supplied and reduces the quantity of labor...
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...employment laws for Austin, Texas prior to hiring employees. I am aware he will have 25 employees within the first year of operation. This memo will address the applicable laws as well as the consequences for noncompliance with specific employment laws. I will discuss four of the more relevant employment laws that Mr. Stonefield should be concerned about. Texas Minimum Wage Act Companies must obey state and national minimum wage laws. Texas is no different. The current minimum wage for Texas is $7.25 per hour. It is a violation of the Texas Minimum Wage Act to pay an employee less than $7.25 per hour. In some jobs, employers can include tips, food, and housing as part of the minimum wage. According to Texas Workforce Commission (2013), “The Texas Minimum Wage Act establishes a minimum wage for non-exempt employees. It also requires covered employers to provide each employee with a written earnings statement containing certain information about the employee's pay, and designates the Texas Workforce Commission as the agency responsible for disseminating information about state minimum wage requirements. The Texas Minimum Wage Act contains provisions concerning agricultural piece rate workers, exempts a variety of organizations from its...
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...Overview of the Federal Minimum Wage The Fair Labor Standards Act (FLSA), a law that guarantees employees and youth a fair minimum wage and overtime pay. It is regulated by the Wage and Hour Division (WHD) of the U.S. Department of Labor (DOL); it mandates employers to pay all nonexempt employees a federal minimum wage no less than the determine amount set by the government (U.S. DOL, 2011). Unfortunately, the federal minimum wage still sits at $7.25 per hour and has remained the same since George W. Bush signed a law to change it on July 24, 2009 (Risher, 2013; U.S. DOL, 2011). So, why did so many government officials decline the increase of the federal minimum wage and why do they fear the positive impact that the increase will have on America? This paper intends to briefly discuss six laws, all pertaining to federal minimum wage introduced to the House of Representatives within a year and highlight one member of the senate who disapproved the law for passing. In addition, this paper will briefly point out statements made about why some Senators chose to decline the bill; and finally, this paper intends to briefly explain any legal issues preventing the wage increase and implications for management. Start of Hope: Minimum Wage Fairness United States senators and representatives have introduced numerous federal minimum wage bills to the House of Representatives in order to amend the Fair Labor Standards Act (FLSA) during their term. These bills were designed to either...
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...Your basic rights as an employee There are minimum rights and entitlements set out in law, which apply to ALL employees, whether it is written in your employment agreement or not. Your employment agreement cannot trade off or provide for less than these minimums. The law protects you at work by setting the minimum rights you have as an employee with paid time off work the minimum you can get paid public holidays sick leave bereavement leave giving you the right to refuse to do work that would likely harm you making sure that all workers, including young people, are safe at work and not unlawfully discriminated against. Your employer must: * Pay you at least the minimum wage * Provide you with annual leave * Provide or compensate you for public holidays if you work, or normally work the day the public holiday falls on * Provide you with a written employment agreement * Not deduct money from your wages, without your agreement in writing * Provide a safe workplace for you to work in * Not discriminate against you. One of the main principles of the law on employment is called “good faith”. This means that employers, employees and unions must deal with one another honestly and openly. Minimum terms and conditions vs negotiable terms and conditions All employees, regardless of the type of work they perform or whether they are full time, part time or casual, are entitled to an employment agreement in writing. These may be either individual or collective...
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...Supply and Demand Simulation Summary In the city of Atlantis, there are several issues dealing with macroeconomics and microeconomic principles that affect the supply and demand equilibrium. The simulation attempts to teach the student about demand and supply shifts or curves that in real life fluctuate with the needs and availability of what people desire and suppliers offer. The apartment rental company, GoodLife, employs the student as a manager who is responsible for making key decisions that affect the economy of Atlantis. The simulation positions the student to learn from his or her experience by showing the affects of their decisions. According to the simulation, Atlantis is a small city with adequate parks and easy access to freeways and highways. The city is well maintained in such a manner that it is considered desirable and encourages residents to be engaged in outdoor activities. In addition, pollution or crime is very low which drives a high demand for population increase. Apartments and detached homes are kept in good condition. Microeconomic Principles Microeconomics according to investopedia.com, is the branch of economics that deals and analyzes the market on an individual basis, of individual consumers, and the relationship between the buyer and seller and those factors that influence the choices made between the two (Investopedia, 2014). In the simulation of supply and demand the influencing factors are the availability of apartments to be rented; moreover...
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