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Brittany is the director of merchandising for Auto Pal, a large chain of automotive supply stores in the United States and Canada. The company has continued to grow in terms of stores and income, as so many more people keep their vehicles longer, and also perform more maintenance, such as oil changes, by themselves. Merchandising is a core function of Auto Pal because the chain distributes thousands of products in its stores, from floor mats to transmissions. With profit margins thin, and heavy competition, the pace of conducting business at Auto Pal is hectic. Brittany moves quickly when dealing with her direct reports, sometimes to their surprise. Sid, a merchandise specialist for vehicle cleaning and polishing supplies, recently requested a two-week paternity leave because he and his wife were expecting a baby any moment now. Brittany replied that such a request was kind of wimpy, and a little bit out of the ordinary. “Don’t you have a mother-in-law who can help with the new baby? Or, are you so poor that you can’t hire a nanny for two weeks?” Katie, a merchandising specialist for batteries, regulators, and radiators, sent Brittany a detailed report about new procurement software that might save thousands of dollars for Auto Pal in the long run. Brittany sent back an e-mail stating in part, “Does this great new software come from a company that employs a relative of yours? We are already using state-of-the art software.” Jeff, the office manager, and one of Auto Pal’s most senior employees, sent Brittany an e-mail asking if he could take his ten days of vacation in five two-day pieces next year instead of ten consecutive working days. The next day, Brittany wrote back, “I like your idea, Jeff. In this way your work flow would be less disrupted. And besides, an old-timer like you needs a few more long weekends than the rest of us do.” One day, Auto Pal CEO Derek asked Brittany how well she was proceeding with her strategic plan for next year. Brittany replied, “Not much progress yet. I’m running around putting out fires and dealing with the realities of making sure my team gets the right merchandise into the stores. Maybe you could have one of those overpaid marketing specialists dream up a strategic plan that I could sign off on.” Questions 1. In which leadership trait or characteristic does Brittany seem to need the most development? 2. How would you rate Brittany’s warmth and enthusiasm as a leader? 3. What action would you recommend that Derek take to improve Brittany’s leadership effectiveness?

 

 
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Baxter is the marketing and sales director of Train and Subway Interiors, a niche company that makes interiors for railroad and subway cars. The interior components include ceilings, overhead storage compartments, holding bars, and kitchenettes. As the demand for public transportation has increased, so has the business of Train and Subway Interiors. Baxter attributes much of the sales growth of Train and Subway Interiors to his magnetic personality, and the way in which he has inspired the four sales representatives on his team. Baxter says, “I’m a positive thinker. I know that we can win together. I smile at everybody, and my customers love me. I’m good, my sales staff is good, and we all know it. The competition is jealous.” Baxter decorates his office to project his personal pride. An 8×10 photo shows him front and center on his college football team. Another photo shows him shaking hands with the U.S. Transportation secretary. A large cabinet is filled with sales trophies and employee-of-the-month plaques Baxter has won at various employers. Another photo shows Baxter smiling in front of an Amtrak high-speed train. The landscape on Baxter’s laptop consists of a photo of Baxter seated between two Labrador retrievers. Phil, the head if engineering at Train and Subway, made this comment about Baxter as the head of marketing and sales: A lot of people go for Baxter’s hype and bravado. He shakes a lot of hands, gives lots of pep talks, and smiles most of the time. But what Baxter doesn’t realize is that without our design and engineering, he and his team would have nothing to sell. He tells me, of course, that without his great marketing and sales skills, the company would have nothing but scrap. Francesca, the head of HR and administration, had collected some feedback about Baxter’s approach to leadership from his subordinates, colleagues, and customers. She commented, Baxter is well liked and charming. He is great at entertaining railway train and subway manufacturing executives, both from the United States and other companies. Yet a lot of people are tired of his bragging and self-congratulations. He talks about being the driving force behind this business, even though Train and Subway Interiors has existed for over fifty years. A clerk said that “Baxter makes more use of mirrors that anybody she knows.” Megan, a sales representative who left the company to take a sales position with a steel company, made this comment about Baxter: “I liked most of the marketing strategy Baxter developed for the company. He also has a warm personality. Yet, I couldn’t take the way he never really listened to me. When I began talking about a tough sales problem I was facing, Baxter would start talking about his self and the sales challenges he had conquered. If Baxter dropped by my work area in the office, he would begin by describing in great detail what his beloved Labradors did recently.” Questions 1. What hints do you get from this case that Baxter is charismatic? 2. What hints do you get from this case that Baxter is narcissistic? 3. What suggestions can you offer Baxter so he can make more effective use of his charisma?

 

 
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Solve A, which Is listed below.

B is : If the company used the absolute best inventory? policy, what would be the total of ordering and holding? costs?

C : What Is the reorder point?

Henry Crouch’s law office has traditionally ordered ink refills 65 units at a time. The firm estimates that carrying cost is 40% of the $11 unit cost and that annual demand is about 245 units per year. The assumptions of the basic EOQ model are thought to apply. For what value of ordering cost would its action be optimal?

a) For what value of ordering cost would its action be optimal?

Its action would be optimal given an ordering cost of $ per order (round your response to two decimal places).

 
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At age thirty-two, Ashley believed that she had landed an opportunity to accelerate her career as a leader and manager. Ashley had worked four years as a manufacturing manager in the industrial pump division of a conglomerate. Based on her outstanding performance, she was offered the opportunity to be the division head of a small and troubled unit of the company, Ultra Covers. The division in question manufactures after-market stylish covers for smartphones, laptops, and tablet computers. Although the products are of high quality, Ultra Covers has been losing money for several years. Competition in the field of stylish covers for electronic devices is intense, and profit margins are thin. Despite these challenges, Ashley took just one hour to accept the offer. She told the top-management committee, “I know I can convert Ultra Covers into a proud and profitable business unit.” Thirty days later, Ashley began her new position as division president. The former president was reassigned to a plant manager position in another unit of the conglomerate. Ashley’s first move was to conduct a listening tour of the company, interacting with workers and managers at all levels of the division. She also spoke with the major customers and several kiosk operators who sold Ultra Covers at shopping malls. After listening to so many people, making observations of her own, and analyzing financial and production data from the Ultra Cover division, Ashley swung into action. Her first step was to inform the manufacturing group that if they could not reduce manufacturing costs by 10 percent within six months, she might shut down domestic manufacturing and outsource all manufacturing to China. Ultra Covers would then become a sales and distribution unit, with almost no manufacturing. Ashley’s next major initiative came in a meeting with the sales manager, Ken. She told him that his goal for the upcoming fiscal year is to increase sales by 15percent, and that no excuses would be acceptable. Ken explained that his sales force is highly motivated, and that they are doing everything they can to boost sales, including intense Internet marketing. He said, “The channels are already saturated with decorative covers for portable electronic devices. A 15 percent jump in sales is unrealistic.” Ashley told Ken it was his job to find a way to increase sales—particularly if he wanted to keep his job. Another initiative Ashley took was to order managers and supervisors to find ways to reduce division costs by 10 percent in the upcoming fiscal year. “Do whatever it takes,” said Ashley. “Our costs are too high for our sales volume. Adjust the thermostats, do not replace some of the workers who quit or retire, cut back on scrap. And when you make photocopies, remember to print on both sides of the sheet of paper.” Ashley began to sense from comments she heard from her staff that perhaps her turnaround efforts appeared to be a little harsh. Based on this feedback, she decided to prepare a video that would be distributed on the Ultra Cover intranet. A central part of her message was that about four billion people in the world use some type of mobile device or computer, and that only 3 percent of them are purchasing a cover for these devices. She concluded, “We have a potential market of about 3.9 billion people throughout the world who could use at least one Ultra Cover. We have just begun our journey to greatness.” Questions 1. How successful do you think Ashley will be as a transformational leader at Ultra Cover? 2. What might Ashley be doing right as a transformational leader? 3. What suggestions might you offer Ashley to be more successful as a transformational leader?

 

 
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