solution

Consider a father who is trying to discipline his child. The father insists that

the child must go with the rest of the family to visit their grandmother. The

child prefers to go to the movies with a friend. The father threatens to punish

the child if the child doesn’t visit the grandmother. If the child goes with the

family to visit the grandmother, both the child and the father receive one unit

of utility. If the child refuses to go to the grandmother’s house, and the father

punishes the child, the child receives one unit of utility, and the father receives

one unit of utility. If the child refuses to go and the father relents (does not

punish), the child receives two units of utility, and the father receives none.

a. Draw this game in matrix form.

b. Draw this game in extensive form.

c. Solve this game via backward induction.

 

 
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Consultant.com is a company that employs business professors as virtual

consultants who supply answers to other companies’ problems. Consultant

.com wants to raise funds with a private equity issue. Unfortunately, because

of fluctuations in the stock market, it is uncertain about the demand for its

offering. It hopes to issue the stock at either $45 or $50. The demand is categorized

into four possible scenarios. The following table shows demand for each

scenario–price combination along with the beliefs regarding the probability of

each possible state. Consultant.com must pay 10% of the generated funds to

the investment bank that helped it identify potential investors. The company

wants to maximize the funds raised.

Consultant.com is a company that employs business professors as virtual consultants who supply...

What is the expected value of the stock offering if Consultant.com sets its

price without knowing the future demand state? If Consultant.com can determine

the future demand state by using a modified Dutch auction, what is its

expected profit? If someone approached Consultant.com and told managers

she could predict the future demand state, how much would that information

be worth to them?

 

 
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Organisational politics

1. All organisations deal with organisational politics in varying degrees across the globe. It is a reality of the workplace. Great leaders are politically aware of what is happening in their organisations and try to use politics positively. They know which individuals are pursuing their self-interest and personal agendas instead of the defined organisational goals. Organisational politics is also known as workplace politics Leaders must use their power and social networking within the organisation to achieve changes that benefit the organisation and individuals within it. They make sure that influences by individuals who serve personal interests are kept at bay. People can use politics for a number of reasons; to gain personal access to resources and tangible assets, and to gain status or authority. Yet when well managed organisational politics can bring about real change, increase efficiency, form interpersonal relationships. Leaders must create right political landscapes. Gossip and manipulation have to be positive otherwise control mechanisms must be put in place. They develop a political culture easy for employees to understand everything through clear policies and procedures, and chain of command that makes it easier for employees to find answers they need more readily. Positive political behavoiur is constructive and functional On the other hand organisations that have climates of negativity and conflict face real problems as employees engage in dishonest, unethical, discriminatory behaviors which all affect productivity and efficiency in the organisation. Negative political behavoiur is destructive and dysfunctional

Task

You now the two sides of workplace politics very well after the case study. Explain three points on the positive side of organisational politics and three points on the negative side of organisational politics, and any two reasons why people can engage in organisational politics

 
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1. Delegation of Duties C.W. Milford owned a registered quarter horse named Hired Chico. Milford sold the horse to Norman Stewart. Recognizing that Hired Chico was a good stud, Milford included the following provision in the written contract that was signed by both parties: “I, C.W. Milford, reserve 2 breedings each year on Hired Chico registration #403692 for the life of this stud horse regardless of whom the horse may be sold to.” The agreement was filed with the County Court Clerk of Shelby County, Texas. Stewart later sold Hired Chico to Sam McKinnie. Prior to purchasing the horse, McKinnie read the Milford-Stewart contract and testified that he understood the terms of the contract. When McKinnie refused to grant Milford the stud services of Hired Chico, Milford sued McKinnie for breach of contract. Who wins? McKinnie v. Milford, 597 S.W.2d 953, Web 1980 Tex.App. Lexis 3345 (Court of Appeals of Texas)
 
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