Assume that a third grocery store, Quick Stop Groceries, enters the market share and cus- tomer loyalty situation described in Section 16.1. Quick Stop Groceries is smaller than either Murphy’s Foodliner or Ashley’s Supermarket. However, Quick Stop’s convenience with faster service and gasoline for automobiles can be expected to attract some customers who currently make weekly shopping visits to either Murphy’s or Ashley’s. Assume that the transition probabilities are as follows:
5. A major traffic problem in the Greater Cincinnati area involves traffic attempting to cross the Ohio River from Cincinnati to Kentucky using Interstate 75. Let us assume that the probability of no traffic delay in one period, given no traffic delay in the preceding period, is 0.85 and that the probability of finding a traffic delay in one period, given a delay in the preceding period, is 0.75. Traffic is classified as having either a delay or a no-delay state, and the period considered is 30 minutes.
a. Assume that you are a motorist entering the traffic system and receive a radio report of a traffic delay. What is the probability that for the next 60 minutes (two time periods) the system will be in the delay state? Note that this result is the probability of being in the delay state for two consecutive periods.
b. What is the probability that in the long run the traffic will not be in the delay state?
c. An important assumption of the Markov process models presented in this chapter has been the constant or stationary transition probabilities as the system operates in the future. Do you believe this assumption should be questioned for this traffic problem? Explain.
Given that motorist has already knows that there is a traffic delay, probability of delay in next 60 minutes will be possible if both the consecutive periods is in the “delay” state.
Period A Period B
Delay ——-> Delay ——> Delay
Since both delay events should occur together(consecutive) to get required probability, hence
Probability that next 60 minutes (two consecutive periods) will be in the delay state
= P(Delayt/Delayt-1) * P(Delayt/Delayt-1)
= 0.75 * 0.75
Probability that in long run the traffic will not be in the delay state is equivalent to probability that all the time in No-delay state.
First of all calculate the probability of the current period in delay state given that preceding period in No-delay state
P(Delayt/No-Delayt-1) = 1 – P(No-Delayt/No-Delayt-1)
= 1 – 0.85
Now the required probability is,
P(All time No-Delay state) = 1 – P( one period in delay state)
= 1 – ( P(Delayt/Delayt-1) + P(Delayt/No-Delayt-1) )
= 1 – (0.75 + 0.15)
After being promoted to store manager for a new branch of a large department store chain, Kathryn was concerned about communication in the store. Six department heads reported directly to her, and 50 full-time and part-time sales associates reported to them. Given this structure, Kathryn worried about staying informed about all store operations, not just those coming to her attention as senior manager. What steps might Kathryn take to establish and maintain an effective system of upward communication in this store?
Self-Assessment: Confl Self Assessment: Confl ict Management Strategies
There is need to improve upward communication processes in the organization. The current communication system lacks in effective connectivity between the people in the shop floor level(supervisors and sales associates) and the store manager. Since there is only possibility of the six department heads meetings the supermarket head, there is every possibility that there exist communication gaps in the organization. Hence inorder to rectify the same there should be establishment of the communication channels between the store manager and the sales associates. Some of the possibilities can be like there can be communication in the form of emails from the store manager to the sales associates. There can also be channels of communication in the form of general body meeting once in a month or a fortnight. Also, there can be letter boxes and notice boards which facilitate communication in the verticals. However the effectiveness of upward communication rest with the commitment of the store head towards transparency and intended weightage, he expects to provide to the sales associates.
The desired marketing return on sales (or marketing ROS) appearance the percent of net sales available to net marketing addition. It can be calculated as:
Marketing MOS = Net marketing contribution/net sales
The desired marketing return on investment (or marketing ROI) determine the marketing productivity of a marketing investment. It can be calculated as:
Marketing ROI = Net marketing contribution/marketing expenses
Where Net marketing contribution = Net sales — cost of goods sold — marketing expenses.
Prediction of company A marketing return on sale and investment based on above formula.
List several challenges facing today’s human resource managers.
1. Managing Diversity: As a result of globalization, companies are forced to recruit people of other countries. These people vary from their current workforce in various ways such as age, geographical location, religion, race and nationality. It is the duty of the HR managers to handle this workforce Diversity without compromising with the mission of the company.
2. Finding and Retaining Talent: in the era of globalization, it is very difficult for the human resource managers to find and retain the talent employees. There is huge demand of the talented people in industry. It is the duty of the HR manger to make sure that talented people does leave the company. Simultaneously, they also need to make sure that that recruit people for the company.
3. Ensuring Employee Fit: It is the duty of the HR manger to find suitable candidates for the company. Every company spends thousands of dollars in the recruitment of the employees. Wrong selection by the HR manger can affect the efficiency of the company.
4. Ensuring Employee Competence: Employees should be placed in different departments as per their Competence. Addition to this, HR manger need to make sure that employees get regular training.
5. Reduce the recruitment cost: HR mangers are in constant pressure from the management to reduce the recruitment cost as most of the people feel that HR department is the liability on the company.
After a long weekend, Kara stared at her computer with a sick feeling in her stomach: her boss had added her as a friend on Facebook. Kara did not feel particularly close to her boss, nor did she like the idea of mixing her social life with her work. Still, it was her boss. Kara reluctantly accepted her boss as a Facebook friend. Little did she know her troubles were only beginning.
Kara’s boss soon began using her online information to manipulate her work life. It began with inappropriate innuendos regarding Facebook photos. Eventually, Kara’s boss manipulated her work hours, confronted her both on and off Facebook, and repeatedly called Kara’s cell phone questioning her whereabouts. “My boss was a gossiping, domineering, contriving megalomaniac, and her behavior dramatically intensified when she used Facebook to pry,” Kara said. Eventually, Kara was forced to quit. “I feel like I got my freedom back and can breathe again,” she said.
Although many individuals recall bullies from elementary school days, some are realizing bullies can exist in the workplace, too. In a recent poll, 37 percent of employees report being victims of a bullying boss. And these bullies don’t pick on just the weakest in the group; any subordinate may fall prey. As Kara found, bullying is not limited to male bosses: 40 percent of bullies are women, and women are their targets 70 percent of the time.
How does bullying affect employee motivation and behavior? Surprisingly, though victims may feel less motivated to go to work every day, they continue performing their required job duties. However, some are less motivated to perform extra-role or citizenship behaviors. Helping others, speaking positively about the organization, and going beyond the call of duty are reduced as a result of bullying. According to Dr. Bennett Tepper, fear may be the reason many workers continue to perform. And not all individuals reduce their citizenship behaviors. Some continue to engage in extra-role behaviors to make themselves look better than their colleagues. Other victims of bullying may be motivated to actively retaliate against their bullying supervisor, or engage in acts of workplace withdrawal.
What should you do if your boss is bullying you? Don’t necessarily expect help from co-workers. As Emelise Aleandri, an actress and producer from New York who left her job after being bullied, stated, “Some people were afraid to do anything. But others didn’t mind what was happening at all, because they wanted my job.” Moreover, according to Dr. Michelle Duffy of the University of Kentucky, co-workers often blame victims of bullying in order to resolve their own guilt. “They do this by wondering whether maybe the person deserved the treatment, that he or she has been annoying, or lazy, [or] did something to earn it,” she says.
1. How does workplace bullying violate the rules of organizational justice?
2. What aspects of motivation might workplace bullying reduce? For example, are there likely to be effects on an employee’s self-efficacy? If so, what might those effects be? Do you think bullying would motivate you to retaliate?
3. If you were a victim of workplace bullying, what steps would you take to try to reduce its occurrence? What strategies would be most effective? Least effective? What would you do if one of your colleagues were a victim?
4. What factors do you believe contribute to workplace bullying? Are bullies a product of the situation, or do they have flawed personalities? What situations and what personality factors might contribute to the presence of bullies?
Organizational justice determines the psychological course by which workers arrive at a judgment of whether their workplace as either fair or unfair Organizational justice deals with how employees experience feelings, their behavioral reactions to these feelings, and how perceptions and attitudes of an organization change. Workplace bully creates a sense of mistrust, effects the performance of the ençb3re, increases absenteeism and turn over. Workplace bully creates a negative impression on the organization and the en1oyee who is victim to this practice would lose trust in the organizational policies.
Following are the some aspects of motivation that workplace bullying might reduce:
Yes, work place bullying would be retaliated.
Controlling the water hyacinth. Entomologists are continually searching for new biological agents to control the water hyacinth, one of the world’s worst aquatic weeds. An insect that naturally feeds on the water hyacinth is the delphacid. Female delphacids lay anywhere from one to four eggs onto a water hyacinth blade. The Annals of the Entomological Society of America (Jan. 2005) published a study of the life cycle of a South American delphacid species. The following table gives the percentages of water hyacinth blades that have one, two, three, and four delphacid eggs:
a. One of the water hyacinth blades in the study is randomly selected, and x, the number of delphacid eggs on the blade, is observed. Give the probability distribution of x.
b. What is the probability that the blade has at least three delphacid eggs?
1. How does return on invested capital (ROIC) affect a company’s cash flow? Explain the relationship between ROIC, growth, and cash flow.
2. If value is based on discounted cash flows, why should a company or investor analyze growth and ROIC?
3. Under what circumstances does growth destroy value?
1 Firstly, according to the mathematical decomposition provided above we can state that increase in ROIC results in higher cash flow by keeping all other factors constant.Secondly, when the ROIC is less than cost of capital, an increase in the growth rate leadsto the decrease in the company’s value.Ideally, increase in both ROIC and growth rate drives the company’s value the most. 2.The first reason is in the formula provided above, growth and ROIC are constituents ofthe cash flows to be discounted. In other words, growth and ROIC are genuine indicators of company’s potential to generate wealth for its shareholders, not the earnings,accounting policies and other “cosmetics” to look lucrative. 3.Growth destroy value, when ROIC is smaller than the cost of capital.
Contribution analysis and break-even analysis are surely the most important and most frequently used marketing metrics. These analyses are essential to determine if a firm’s marketing opportunity will mean a financial loss or be profitable. As explained in the chapter, contribution is the difference between the selling price per unit and the variable cost per unit. Breakeven analysis that includes contribution tells marketers how much must be sold to break even or to earn a desired amount of profit. Happy Days Dairy is a producer of high-quality organic yogurt, sour cream, and crème fraiche. They are considering marketing a new line of drinkable yogurt for children. The new yogurt will be offered in packages of six 6-ounce individual containers and it will be available in four flavors. The company plans to use TV and newspaper advertising to promote the new product. Distribution will be through major supermarket chains, which currently have over 90 percent of the U.S. yogurt market. The suggested retail price for each 6-ounce individual container will be $0.60. Because the retailer requires a 30 percent markup, Happy Days’ price to the supermarkets will be $0.42 per six-ounce container. The unit variable costs for the product including packaging will be $0.15. The company estimates its advertising and promotion expenses for the first year will be $1,500,000.
1. What is the contribution per unit for the new children’s yogurt product?
2. What is the break-even unit volume for the first year that will cover the planned advertising and promotion? The break-even in dollars?
3. How many units of the yogurt must Happy Days sell to earn a profit of $800,000?
Visually impaired students. The Journal of Visual Impairment & Blindness (May–June 1997) published a study of the lifestyles of visually impaired students. Using diaries, the students kept track of several variables, including number of hours of sleep obtained in a typical day. These visually impaired students had a mean of 9.06 hours and a standard deviation of 2.11 hours. Assume that the distribution of the number of hours of sleep for this group of students is approximately normal.
a. Find the probability that a visually impaired student obtains less than 6 hours of sleep on a typical day. b. Find the probability that a visually impaired student gets between 8 and 10 hours of sleep on a typical day.
c. Twenty percent of all visually impaired students obtain less than how many hours of sleep on a typical day?
The desired probability expected in the model pursue normal distribution. It is appropriate to find out the area A to the left of 6. It is so as this area conform to the probability that a student elect from this sharing have less than 6 hours. To find out the value of A, first determine the z-value corresponding