Interest Rates

1.

Part 1: Interest Rates

Many managers do not understand the various ways that interest rates can affect business decisions. For example, if your company decided to build a plant with a 30-year life and short-term debt financing (renewed annually), the cost of the plant could skyrocket if interest rates were to return to their previous highs of 12% to 14%. On the other hand, locking into high, long-term rates could be very costly also with a long period when low short-term interest rates were to be available. As you can see, the ability to know your economic environment and its impact on projected interest rates can be crucial to making good financing decisions.

Describe two to three macroeconomic factors that influence interest rates in general. Explain the effects of each factor on interest rates.

Now think about the industry in which you are employed or one in which you have past experience. To what macroeconomic factors is your industry most sensitive?

Describe two contemporary factors that seem to be impacting your industry today, and identify their impacts on the interest rates experienced within your chosen industry.

Support your comments with your own experiences, the weekly resources, and/or additional research. Use APA throughout and provide appropriate in-text citations and references.

Part 2: Stock Valuation, Risk and Returns

Stock valuation

https://www.youtube.com/watch?v=DSn1HThfb5w

https://www.youtube.com/watch?v=jfcRUzKZZE8

https://notendur.hi.is/ajonsson/kennsla2008/stock_valuation.pdf

Risk and Returns

https://www.youtube.com/watch?v=3BIIiUyr3-w

The links above contain information on stock valuation, risk and returns. Please review each one of them. Based on the knowledge gained from the materials presented in the links above, complete the following activities:

Present a detailed discussion of what you learned about stock valuation. Provide examples of how your company have used the concepts. Do you believe financing a company’s operation using stock is better than financing with bonds? Why or why not? Support your discussion with a numerical example.

Based on the materials presented in the “Risk and Return” video, present a discussion on why the materials are important in financial decision making. How would you incorporate risk and return in your financing decisions?

2.

In the link below, you will explore how companies compute their cost of capital by computing a weighted average of the three major components of capital: debt, preferred stock, and common equity. The firm’s cost of capital is a key element in capital budgeting decisions and must be understood in order to justify capital projects. In addition, you will also learn capital budgeting techniques including Payback, Net Present Value, Internal Rate of Return, etc.

Cost of Capital:

https://www.youtube.com/watch?v=B8JZhQofRTs

For this Discussion, imagine the following scenario:

You are the director of operations for your company, and your vice president wants to expand production by adding new and more expensive fabrication machines. You are directed to build a business case for implementing this program of capacity expansion. Assume the company’s weighted average cost of capital is 13%, the after-tax cost of debt is 7%, preferred stock is 10.5%, and common equity is 15%. As you work with your staff on the first cut of the business case, you surmise that this is a fairly risky project due to a recent slowing in product sales. As a matter of fact, when using the 13% weighted average cost of capital, you discover that the project is estimated to return about 10%, which is quite a bit less than the company’s weighted average cost of capital. An enterprising young analyst in your department, Harriet, suggests that the project be financed from retained earnings (50%) and bonds (50%). She reasons that using retained earnings does not cost the firm anything, since it is cash you already have in the bank and the after-tax cost of debt is only 7%. That would lower your weighted average cost of capital to 3.5% and make your 10% projected return look great.

Based on the scenario above, post your reactions to the following questions and concerns:

What is your reaction to Harriet’s suggestion of using the cost of debt only? Is it a good idea or a bad idea? Why? Do you think capital projects should have their own unique cost of capital rates for budgeting purposes, as opposed to using the weighted average cost of capital (WACC) or the cost of equity capital as computed by CAPM? What about the relatively high risk inherent in this project? How can you factor into the analysis the notion of risk so that all competing projects that have relatively lower or higher risks can be evaluated on a level playing field?

 
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Netflix Case Study

Case Preparation:

Remember, the cases are graded per the rubric. Any analysis details should be covered in an appendix. The BoD would want your recommendations with the proper support.  Do not go to the Internet to find, for example, a SWOT analysis and use it for your case.  You are expected to do the research and develop your own strategic analysis.

In doing your cases you will need a minimum of five references outside the Case material from Thompson.  The Thompson information is to get you started. (Do not use just the data from the case.) One of the references should be the company’s latest 10K report. Wikipedia and QuickMBA type sources do not count.  Certainly do not use websites that develop term papers or do strategy analysis on these cases and publish them. Use current business websites to find out about recent developments.

The case study analysis allows you to apply your knowledge to the real world. Your goal is to identify the major problem confronting the subject company and provide a strategic solution for the problem. Each of the companies that you will be studying faces different situations in the marketplace. Your analysis of the case using strategic management tools and tools that you have learned in other classes will allow you to interpret what is going on in the companies in the marketplace. To fully understand the case you will need to collect data and interpret it. You must also isolate the critical issues that the company faces.  Remember that in the words of Lord Kelvin, “that anything that cannot be expressed in numbers represents knowledge that is of a poor and uncertain kind.” You will have to get into the numbers, ratios, annual performance change, etc.

After identifying the critical issues you can generate alternatives to address the company’s competitive situation. Evaluating these alternatives allows an organization to select one course of action. With a course of action defined the strategic manager can then provide a plan for implementation this is what you are to do on the case studies. Always refer to the rubric for the critical points to cover. The format for the case studies should be as follows.

In addition to the APA cover page, you need a one page, single spaced executive summary for the case as noted below. This one-page report should use headings and subheadings to identify the critical issues. Begin with your understanding of the situation in a problem statement. Follow this with a concise presentation of your analysis and the alternatives you see. Recommend one course of action and support that recommendation with facts and other information, such as competitor’s moves. The last item is presents a plan for implementation. After the one-page summary you proceed with the body of your presentation.  The summary page should encapsulate your understanding to the problems facing the company, a brief summary of the strategic analysis, financial analysis, the alternatives considered and a single recommendation with an implementation plan.

After the executive summary page, you are to use standard APA formatting and a 4 to 5 page expansion upon the points you have made in the executive summary. Tables, charts, graphs, etc. are to be put in the appendix and referenced from the body of your paper. Deductions may be taken for papers where the body is longer than six pages. Remember, in management you must get your thoughts across quickly if you expect your work to be read. Long reports generally wind up in a stack awaiting reading at some future date (which never comes).

Case Study Report Format:

Your report should include:

I.          NSU Cover page (1 page in length).  It will present the name of the case and the author(s) of the report.

II.         Executive Summary (1 page in length).

The Executive Summary is a concise overview of the report.  The Case Study Report should be written from the perspective of an outside consultant, writing to the Board of Directors of the firm.  It notes the essential points of the report and should have the following sections:

A.              Problem Statement: State the main problem facing the firm (or industry) in one, succinct sentence.

B.               Analysis: Summarize the main findings of your analysis.  You may use bullet points, bold, italics – any means to convey and highlight the key factors you have determined based on your analysis. Don’t repeat items from the body of your report like the SWOT.  Summarize the major issues.

C.               Alternatives:  State briefly (one sentence or a bullet point each) 2 or 3 alternative courses of action that could be implemented

D.              Recommendation:  Choose one course of action and support your choice.

E.               Implementation:  Briefly (2 or 3 sentences) present how the plan would be implemented.  This tests the viability of the choice.  For example, your plan would demonstrate that the company has the people, financial resources and time to implement your recommendation.

 

These bullets should appear in your paper. The following is a precise format of the Case Studies.

 

FORMATTING for Executive Summary:

·  Single-space

·  One inch all margins

·  Use bullet points, lists, or other means to convey information briefly.  Further explanation can be found in the main body of the report.

·  Use headings and subheadings to organize the material in an easy to read and understandable manner that highlights the essential points of your analysis.

·  Do not include a summary or overview of the firm in your report.  All parties are knowledgeable and need no background presented.

 

The body of your paper should be in standard APA format, with appropriate references.

 

Remember that cases are graded per the rubric. The Case Study rubric can be found in the Rubric file.

 

 

 

Netflix 10K

https://ir.netflix.com/secfiling.cfm?filingID=1065280-16-47&CIK=1065280

 
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Ethical Case Study-Part2

Throughout this course you write a case study based on your own experience related to an ethical issue within an organization; or you may choose to write about an emerging ethical issue within your current or planned industry. The case study can be fully anonymous to protect those within your organization, and you may choose to identify your role in the case study or not. Your case study will be submitted for a grade in parts throughout the term with the entire final document as the last deliverable.

This week identify an ethical issue that either you have faced, or that has/is occurring within your organization or industry. Write no more than one page to describe the issue. Refer to the attached Ethical Case Study Project Guidelines.

BUS 7200 EMBA Ethical Case Study Project Guidelines

Overview

You write a case study based on your own experience related to an ethical issue within an

organization; or you may choose to write about an emerging ethical issue within your current or

planned industry. The case study can be fully anonymous to protect those within your

organization, and you may choose to identify your role in the case study or not. Your case study

will be submitted for a grade in parts throughout the term with the entire final document as the

last deliverable. Please review these general tips and guidelines.

 

How to approach writing your case:

 

• Assume you are one of the leaders in the organization. Write with clarity and confidence on the topic based on what you have learned prior to and during this course.

• Pretend that the audience reading this case study knows nothing about the situation or ethical philosophy, decision-making, etc. Provide enough detail to give readers enough

information to draw conclusions but remain succinct.

• Explain, as needed, the context, evaluate the evidence, and make a decision concerning the appropriate course of action, and support your conclusion through arguments and

counter-arguments.

• Take a clear and decisive position – What would you do in this case? What ethical decision-making framework did you use? What most influenced your decision?

 

Formatting Requirements

 

The formatting of this document should be as follows:

• Use consistent formatting throughout (12 pt font, Times New Roman, single-spaced).

• Do review your paper thoroughly for grammatical issues and typographical errors!

• Use cover page and references

• Cite your sources (do not use Wikipedia or Blog, etc.) and list them in a reference page per APA style.

• At minimum 5 resources that are published no more than five years ago. Choose scholarly resources (i.e., peer-reviewed journal, sources from your industry/organization,

and (sparingly) the textbook.

• 9-12 body pages (double spaced, not including cover page and references).

 

Project Timeline

 

• Intersession 3: Choose an ethical issue and a topic. See the assignment for details.

• Intersession 4: Part 1 and Outline of Case

• Intersession 5: Part 2

• Intersession 6: Part 3

• Intersession 7: Final Document

 

 

Ethical Case Outline

 

Part 1: Describe the case (3-4 pages):

• Identify the parties involved, their rights, their responsibilities

• Identify the salient ethical and/or legal issues of the case

• Identify the relevant factual issues, conceptual issues, social constraints, and any additional information necessary for an accurate understanding of the case.

• If needed, conduct research about the issue from multiple perspectives and include relevant ethical theory, legal requirements, and technical details about the

case to ensure that the case can be solved.

• See OWL Sample Outlines for formatting information.

Part 2: Critically analyze the case (3-4 pages):

• Identify the primary “ethical dilemma (or question)” in the case.

• Formulate possible courses of action.

• Discuss any role that information technology or context played in creating the special circumstances of the case.

• Evaluate the strengths and weaknesses of those actions.

• Analyze different courses of action, are they based on a consequential or non- consequential approach? Are these courses of action ethical?

• Weigh the pros and cons of each action.

Part 3: Solve the case (3-4 pages):

• Indicate which course of action you would choose, and why. If you were personally involved in the scenario, you can detail what you DID do compared to

what you WOULD do given what you have learned in this course.

• Provide your own opinions: do not rephrase the opinions of others, create your own, unique viewpoint based on your ethical philosophy, ethical decision-making

framework, and the context and scenario of the case.

• Clearly demonstrate and explain how the pros of your solution outweigh the cons.

• Use the facts of the case and supporting resources to convince your readers of the soundness of your ethical point of view

 

Final Document

• All parts due as one cohesive document.

• Be sure to have addressed any issues or concerns that were brought to your attention from each individual part.

 

  • BUS 7200 EMBA Ethical Case Study Project Guidelines
  • Overview
  • You write a case study based on your own experience related to an ethical issue within an organization; or you may choose to write about an emerging ethical issue within your current or planned industry. The case study can be fully anonymous to prote…
  • ď‚· Assume you are one of the leaders in the organization. Write with clarity and confidence on the topic based on what you have learned prior to and during this course.
  • ď‚· Pretend that the audience reading this case study knows nothing about the situation or ethical philosophy, decision-making, etc. Provide enough detail to give readers enough information to draw conclusions but remain succinct.
  • ď‚· Explain, as needed, the context, evaluate the evidence, and make a decision concerning the appropriate course of action, and support your conclusion through arguments and counter-arguments.
  • ď‚· Take a clear and decisive position – What would you do in this case? What ethical decision-making framework did you use? What most influenced your decision?
  • Formatting Requirements
  • The formatting of this document should be as follows:
  • ď‚· Use consistent formatting throughout (12 pt font, Times New Roman, single-spaced).
  • ď‚· Do review your paper thoroughly for grammatical issues and typographical errors!
  • ď‚· Use cover page and references
  • ď‚· Cite your sources (do not use Wikipedia or Blog, etc.) and list them in a reference page per APA style.
  • ď‚· At minimum 5 resources that are published no more than five years ago. Choose scholarly resources (i.e., peer-reviewed journal, sources from your industry/organization, and (sparingly) the textbook.
  • ď‚· 9-12 body pages (double spaced, not including cover page and references).
  • Project Timeline
  • ď‚· Intersession 3: Choose an ethical issue and a topic. See the assignment for details.
  • ď‚· Intersession 4: Part 1 and Outline of Case
  • ď‚· Intersession 5: Part 2
  • ď‚· Intersession 6: Part 3
  • ď‚· Intersession 7: Final Document
  • Ethical Case Outline
  • Part 1: Describe the case (3-4 pages):
  • ď‚· Identify the parties involved, their rights, their responsibilities
  • ď‚· Identify the salient ethical and/or legal issues of the case
  • ď‚· Identify the relevant factual issues, conceptual issues, social constraints, and any additional information necessary for an accurate understanding of the case.
  • ď‚· If needed, conduct research about the issue from multiple perspectives and include relevant ethical theory, legal requirements, and technical details about the case to ensure that the case can be solved.
  • ď‚· See OWL Sample Outlines for formatting information.
  • Part 2: Critically analyze the case (3-4 pages):
  • ď‚· Identify the primary “ethical dilemma (or question)” in the case.
  • ď‚· Formulate possible courses of action.
  • ď‚· Discuss any role that information technology or context played in creating the special circumstances of the case.
  • ď‚· Evaluate the strengths and weaknesses of those actions.
  • ď‚· Analyze different courses of action, are they based on a consequential or non-consequential approach? Are these courses of action ethical?
  • ď‚· Weigh the pros and cons of each action.
  • Part 3: Solve the case (3-4 pages):
  • ď‚· Indicate which course of action you would choose, and why. If you were personally involved in the scenario, you can detail what you DID do compared to what you WOULD do given what you have learned in this course.
  • ď‚· Provide your own opinions: do not rephrase the opinions of others, create your own, unique viewpoint based on your ethical philosophy, ethical decision-making framework, and the context and scenario of the case.
  • ď‚· Clearly demonstrate and explain how the pros of your solution outweigh the cons.
  • ď‚· Use the facts of the case and supporting resources to convince your readers of the soundness of your ethical point of view
  • Final Document
  • ď‚· All parts due as one cohesive document.
  • ď‚· Be sure to have addressed any issues or concerns that were brought to your attention from each individual part.
 
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A+ Answers Of The Following Questions

1. Question : Which of the following statements provides an accurate description of a concern about job enrichment?
job enrichment can be very inexpensive to implement.
there is controversy concerning whether pay must be increased when jobs are enriched.
job enrichment allows workers to plan more of their work.
task difficulty increases due to job enrichment.
performance accountability increases as a result of job enrichment.

2. Question : Which of the following statements about job rotation is correct? Job rotation ____________.
standardizes job tasks and employs people in very routine jobs.
increases job content by giving workers more responsibility for planning and evaluating duties.
increases job variety by adding new tasks of similar difficulty to a job.
increases task variety by shifting workers among jobs involving tasks of similar difficulty.
defines job tasks and the work arrangements to accomplish them.

3. Question : The potential advantages of job simplification include all of the following EXCEPT:
increasing operating efficiency by reducing the number of skills required to do a job.
being able to hire low-cost labor.
keeping the needs for job training to a minimum.
emphasizing the accomplishment of repetitive tasks.
increased employee turnover.

1. Question : A job’s motivating potential score can be raised through all of the following methods EXCEPT:
reducing tasks to create smaller jobs.
opening feedback channels to enable workers to know how well they are doing.
establishing client relationships to enable employees to experience feedback directly from customers.
employing vertical loading to create more planning opportunities.
employing vertical loading to create more controlling responsibilities.

2. Question : Content theories attempt to explain work behaviors based on _______________.
the relationship between values and attitudes.
the impact of individual ethics on business decisions.
personality-linked relationships.
perceptions on-the-job.
pathways to need satisfaction and the influence of blocked needs.

3. Question : Studies suggest all of the following statements to be true EXCEPT:
needs vary according to a person’s geographic location.
needs vary according to organization size.
needs vary according to a person’s career stage.
needs vary according to a person’s length of service with an organization.
needs vary according to a person’s career stage, the size of an organization and geographic location.

1. Question : The second job characteristics moderator, knowledge and skill, refers to the fact that people __________________.
must demonstrate commitment to mastering the enriched jobs before they are given opportunities to learn the knowledge and skill required for success in these jobs.
must learn the required knowledge and skill for enriched jobs in a compressed timeframe in order for companies to financially benefit from job characteristics programs.
must take tests to qualify for opportunities to learn the knowledge and skill required for success in the enriched jobs.
who are inadequate or who feel inadequate relative to the demands of enriched jobs are likely to experience no difficulties on-the-job.
whose capabilities fit the demands of enriched jobs are predicted to feel good about them and perform well.

2. Question : Research on Maslow’s needs hierarchy suggests the following statement to be true?
lower-order needs become more important as individuals move up the corporate ladder.
higher-order needs become less important as individuals move up the corporate ladder.
higher-order needs become more important as individuals move up the corporate ladder.
higher and lower-order needs become equally important as individuals move up the corporate ladder.
higher and lower-order needs become less important as individuals move up the corporate ladder.

3. Question : All the following statements accurately describe Herzberg’s hygiene factors EXCEPT:
hygienes reflect the things that turn people off.
hygienes refer to the work setting.
hygienes prevent job dissatisfaction from occurring.
hygienes contribute to job satisfaction.
hygienes include working conditions, interpersonal relations, organizational policies, and salary.

 

1. Question : An example of the __________ is a product development specialist who bases a decision to not launch a new product on her recent failure with another product offering.
representativeness heuristic.
accessibility heuristic.
hindsight heuristic.
utility heuristic.
availability heuristic.

2. Question : Which of the following statements is NOT an accurate description of team building or the team-building process?
team building is participatory.
team building is data based.
the team-building process should become an ongoing part of any team’s work agenda.
the team-building process facilitates competitive behavior within the team.
team building is an approach to continuous improvement.

3. Question : In the Vroom, Yetton, and Jago decision-making model, __________ involves the manager obtaining the necessary information from subordinate(s) or other group members and then deciding on the problem solution.
variant 1 of authority decisions.
variant 2 of authority decisions.
variant 1 of consultative decisions.
variant 2 of consultative decisions.
variant 3 of authority decisions.

1. Question : __________ is a sequence of planned activities designed to gather and analyze data on the functioning of a team and to initiate changes designed to improve teamwork and increase team effectiveness.
team enhancing.
team building.
team structuring.
team championing.
team organizing.

2. Question : __________ directly contribute to the performance of important group tasks.
task activities.
assignment mandates.
directive activities.
responsibility activities.
maintenance activities.

 

3. Question : Edgar Schein identified three common behavior profiles that may hinder group operations when people try to cope with individual entry problems in self-serving ways. These three profiles are:
passive, aggressive, regressive
focused, unfocused, mid-focused
tough battler, friendly helper, objective thinker
primal, emotional, rational
thoughtful, aggressive, modal

 
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