A forest originally has 10,000 trees. Suppose that the forest naturally replenishes itself by 10 percent per year. That is, at the end of one year, if nothing else happened, it would have 10,000 + (0.10 × 10,000) = 11,000 trees. (This assumption is not biologically accurate, but it keeps the math simple.) Suppose that 1,500 trees are harvested at the end of each year.

a. How many trees will the forest have at the end of one year, after accounting for both natural replenishment and the effects of harvesting?

b. Draw a stock flow diagram illustrating the ange in the forest stock from year 1 to year 2.

c. How many trees will there be at the end of two years? (Note: Base the 10 percent replenishment amount on the number of trees that exist at the beginning of the second year.)

d. How many trees will there be at the end of three years?

e. For the harvest of trees to be sustainable, what is the largest number of trees that could be harvested each year (starting with the original stock of 10,000 trees)?

Step 1: Read the following case studies.

Quality is more than just the product. Here, two customers describe their experience of how they were treated when the product they bought failed. Example 1: Obodex Computers Limited I bought an Obodex laptop computer and was very pleased with its performance. After a few weeks, however, the screen failed. I rang the company and was put straight through to their service manager, who apologized profusely for the failure and, after a few questions, identified what he thought was the fault. He asked if it was convenient for me to drop the machine into their service center and said that he would ensure that it was dealt with while I waited. Given the possibility of having my computer up and running again so quickly, I agreed. When I arrived at the center, I was shown to a waiting area and supplied with a cup of coffee while the laptop was taken away. As I handed it over, the technician asked, ‘Would you like me to make a small upgrade on it while I am working on it, at no charge?’ This sounded too good an offer to pass up, and so I agreed. Thirty minutes later, I was walking out of the center with my repaired and upgraded machine. You would not believe the number of people who I knew who then bought Obodex when they heard of the service that I had received. Example 2: Car dealers We bought a brand new car for our family business. It was needed to go and visit customers and so reliability was vital to us. If we could not keep appointments with customers, this reflected on our business and customers would buy elsewhere. We had had it for 10 days when the power steering failed. This made the car undriveable. It happened at the weekend and so I rang the dealer where we had bought the car first thing on the Monday morning, asking them to come and get the car at the earliest opportunity, as we needed it for several important trips that week. The response was pathetic. They said that they were far too busy and initially offered to look at the car, if we could get it to them, the following Thursday – 11 days later. I complained, but was told that ‘You are not our only customer!’. This made me very angry, and so I called the manufacturer direct. Their customer service people were far more helpful, and eventually agreed to arrange for the car to be collected later that day. It was collected by the same garage that I had called first. I wasted nearly 3 hours on the telephone trying to sort this problem. I will never do business with that dealer again, which probably means we will never buy another car from that company. This is a shame, as it wasn’t a bad car.

Step 2: Respond to the following items: Compare the two cases in terms of how each firm looked after their customers. What is the influence of apostles (customers who tell others how good your service is) and terrorists (customers who tell others how bad your service is) on a business? How might customer complaints actually be an opportunity for gaining greater loyalty to an organization? Why has quality emerged in terms of strategic importance in recent times? What were (at minimum 3) relevant parts, products, or processes involved in this case study? What recommendations do you have regarding overcoming potential challenges and helping future growth? What is the final solution? What does the future look like in terms of globalization and this case study?

Support your statements with evidence from the Required Studies and your research. Cite and reference your sources in APA style.