Disney

Disney Company normally extends debt securities to the members of the public. It is known to give debt securities that are subordinated and also senior debt securities. Those debt securities that are provided to the members of the public by this media company can be issued together or separately once the exchange for or conversion of other various securities. The company’s debt securities can be junior subordinated, subordinated or senior subordinated and it should be considered that these debts may be issued in various series (Walt Disney,2016).The series of the debt securities may be one or more than just one series. This clearly shows that there is possible limit in every series of the securities. This simplifies the understanding of interested parties on the manner in which they are supposed to carry out the process of buying the debt securities. Through this, the marketing of securities is made very much simplified. Essentially, the firm’s supplement for security sales shows that they were issued in form of senior debt securities and which were under an indenture. The securities were placed in the category in a rank with other unsecured debts that are senior. The securities were due in the year 2013 and registered as Global notes with a rate of 4.5 %. For the purpose of successful marketability the company entered each of the issued notes into an entry book form or was entered into a definitive book and a global security was used to represent the note (The Walt Disney Company Annual report, 2008). The global security is deposited with Depository Trust Company and the name depository’s nominee was used to register it. Certain rules were also imposed and were intended for the issuance purpose. The company did not carry out the sale of the securities in the stock exchange but was done through floating on the secondary market. The agents were assured of indemnification against any liability that could accrue to the as per the Securities Act.  The approaches taken by the company made sure the availability of the securities to every potential investor who has an interest.  It was also made clear that the securities’ sales would be repurchased only when they have matured but gave the investor the option of redeeming them at the company’s terms and including the time Walt Disney’s decides. The terms were unfavorable so as to discourage the possibility of earlier redemption. The company also picked banks with high reputation to be their underwriters or agents. Such banks include Stern & Co., Bank of America Securities LLC, Barclays Capital Incl, and Bears among others. This ensured a highly effective distribution system that was handled competently. Moreover, an indenture for subordinated debt securities was made adopted for the purpose of issuance of those securities. The company also chose to address each of these indentures one at a time and specifically identifying every trustee (The Walt Disney Company Annual report, 2008).  

The Walt Disney’s debt amounted to one billion dollars. About $ 986,760, 000 was the proceeds to the organization while the earnings of the brokers would be 0.35 percent which was a part payment. The maturity was to be 13th December, year 2003. The company had no outstanding debts or commercial paper by October 2009. The debts for the commercial paper repurchased before the maturity date was due. The most probable reason would be that they were surrendered due to hard economic situations which were experienced during 2008-2009 periods. The Untied States economy was undergoing a negative growth at the moment, which was put at negative 8%. This made most of the investors were becoming uneasy with any investment and the events may have made many of them to consider an early repurchasing due to fear that the economic situation would continue deteriorating.

The company’s debt was $986,760,000 as mention earlier and was proceeds to the firm while part of the payment for brokers amounted to 0.35%.  This represents a decrease which can be attributed to the firm’s average performance in 2009 which improved in 2010. This performance made it possible for Walt Disney to pay back all the commercial paper debts. The net income for the year 2010 was $3963 million which shows a rise of 19.8 % from 2009 which was $3307. There was a decrease in the net income for the year 2009 by 25.3 % as compared to the previous period whose income was $4427. The adverse economic conditions resulted to this decrease in revenue (The Walt Disney Company Annual report, 2008). The inconsistency in energy price and cost of sustenance in such an environment represent a big threat to the company’s business activities. The slow economic growth was a major contributing factor in the net income reduction. This can be seen the case of all time low level of employment in the 2008-2009 period when negative economic growth was experienced. Like Walt Disney Co. many of the multinational firms were hard hit by the recession that was observed globally. The company’s relies heavily on the American economy which gave a weak link in the marketing approach adopted at the time. Change in behavior if the consumer is also another factor that specifically impacted the Studio Entertainment part of the company. The shift in behavior can be seen in the more sales on-demand pay TV from the sales of common DVD in addition to other digital mediums. After the netting of commissions and discounts, the percentage price of sale for Disney is thus 98.676 %. This is obtained by subtracting discounts and commissions’ percentages from the price of initial sales in percentage (The Walt Disney Company Annual report, 2008).

The proceeds from the sale of securities as provided in the prospectus were supposed to use in the general operations of the company. These purposes included the reduction of debts that were short-term, funding or expanding various investments, contributing to the company’s subsidiaries and financing any planned acquisitions. This would extend the market share for Disney which would translate to more sales and thereby increase the profitability level. The acquisitions approach has been known to be one of the best strategies for a company to grow its business level since the viability of acquired entities is proven; the company is bound to reap a lot (Hitt, Ireland, & Hoskisson, 2008). .The proceeds would also allow the firm to provide more credit so that it is able to offer such credit to the members of the public who would be interested .The funding of other projects as suggested and provided for in the supplement of the prospectus is also possible. Most of the proceeds were ploughed back into the business to enhance major acquisitions and financing major operations for expansion purposes. The prospectus’ largest portion of the securities’ sale was put into capital expenditure which included theme parks construction, resorts expansion, cruise ships, new rides and attractions. The concentration of most capital expenditure in the year 2010 consisted of California and Hong Kong Disneyland expansion, Vatican resort construction in Hawaii and the partial payment of two cruise ships that were new. The key capital expenditures such that happened in 2010 like the California Adventure and payment for cruise ships that were luxurious, were initiated and partially paid for in the year 2009.  In addition, there were investments in media network expansions and media and broadcast centers were also upgraded (The Walt Disney Company Annual report, 2008). The investments included also the improvement of information and technology abilities. This is seen in a key acquisition of the Playdom Inc and Marvel Entertainment which amounted to $ 2.5 billion. These acquisitions were partly subsidized when other investments were sold such as television service in the European region and various assets that were owned by Walt Disney Power Rangers. This means that all the funds gotten from the securities were utilized to the fullest. The company had to offload some of its assets in order to facilitate some of these expenditures when the securities’ sales proceed were no enough. The company does not have to be accountable for the funds since they were not sufficient to ensure the completion all of the activities to be undertaken (The Walt Disney Company Annual report, 2008).

In conclusion, the poor performance of Walt Disney in 2009 could be attributed to the expansion strategies introduced in 2008. In addition, expansion into emerging markets where some losses were incurred can also be a reason. The main contributing factor is, however, the 2008 financial crisis.

References

Operations decision making

Assemble line balancing is a model which is applied in the production system. ALB is used in assigning tasks which are based on elemental operations of converting raw materials.  It is a very important technique in lean system as it ensures that   line segments are met in the appropriate time frame using the production capacity. The main objective of  this model  is to assign the work  evenly in the workstations, reduce the  manpower requirement, idle time  and expenses and maximum  the  rate of  production (Rekiek  & Delchambre, 2006).

 If a worker is trying hard but 20% slow than others, I would offer the worker a training which may increase his or her speed.   I would allow the worker to work in a workstation where there is idle time so that he or she can have enough time to adjust   and improve the way of working.  In addition, I would apply the parallelization method   and assign the same work to other workers in the same station (Rekiek & Delchambre, 2006).  This will lower the cycle time than the operation time which could be taken by the slow worker.  In addition, I would integrate the worker in parallel station so that he or she can work with fast workers in order to balance the workload.  Other method which I would use to deal with this issue is the collaborative approach.  This method is to integrate the disabled in the labor force by placing the worker in another workstation where different workers will carry out different task such as developing task, executing task and finishing the task.  This will help to reduce the cycle time, meet an effective task completion and build   relationship with workers and stations (Rekiek & Delchambre, 2006).

Reference

Rekiek, B., & Delchambre, A. (2006). Assembly line design: The balancing of mixed-model

hybrid assembly lines with genetic algorithms. London: Springer.

Halts for M&A

A trading halt occurs when the trading of specific securities stops for a period of time in the stock exchange. The halt varies and can last up to an hour but it is not limited to that. It mainly occurs when a publicly listed company is about to release significant information about itself (Baker & Kiymaz, 2013). The halt is mainly meant to have a significant influence on mergers and acquisition transactions such as the related financial wealth of a company, a major corporate business deal like restructuring, the positive and the negative information and the key changes in management (Baker & Kiymaz, 2013). The halt of the specific securities gives an opportunity to the investors to review the news release and make a proper judgment as well as reviewing its impact. The halt is also meant to a certain the uncertain exchange of the securities of the merging and the companies that are been acquired in order to meet the market's listing standards (Baker & Kiymaz, 2013).

By considering the returns, volume and volatility behavior there are advantages and disadvantages of trading halts for the publicly listed companies. The international stock markets have witnessed efficiency since the initiation of the trading halts as there has been a change in trading behavior by the investors. One of the advantages is that the information released during the trading halt is usually absorbed by the prices within the first fifteen minutes. There has also been a slower and a stronger rate of reaction by the investors in relation to bad news than the good news (Baker & Kiymaz, 2013). There have also been a price discovery mechanisms due to the numerous adjustment brought about by the trading halts. Trading halts have also been disadvantageous in that it affects the trading volumes and has a negative effect on returns that results to lower returns due to longer halts periods (Baker & Kiymaz, 2013).

Reference

Baker, H. K., & Kiymaz, H. (2013). Market microstructure in emerging and developed markets. Hoboken, New Jersey : John Wiley & Sons, Inc

"Employee Discipline and Bargaining Practices"

Progressive discipline policy for unauthorized absence

Policy: Verbal warning

            This policy should be followed when dealing with an employee who has this kind of undesirable behavior. First, the employee should be allowed to understand the undesirable behavior committed and why such behavior is unacceptable (Magoon & De, 2007).  In this scenario, he or she will have the opportunity to express his or her feelings with respect to this issue.  After explaining the reason for doing wrong, employee should be reminded on desirable behavior which must be followed. Then, employee should be informed that if he or she commits such behaviors again, disciplinary actions such as terminated will be taken in a serious manner.

Differences of private sector and public sector bargaining

A public sector is implemented by government and it follows the terms and conditions   made by government.  Public sector develops administrative structure and there is a collective agreement which determines the tax level for each individual and employees benefit from the government services. Public sector is concerned with public interest and it does not focus on product market but rather it focus on public services and the level of taxes from public (Holley, Jennings,  & Wolters, 2012).

On the other hand, private sector involves private parties in making decisions based on costs and benefits. Private sector is interested with economic and maximization of private interest and it is much concerned with product market. Other difference arises in the bargaining structure and the main different occurs in the management (Holley, Jennings & Wolters, 2012).  In private sector, authority is given by people who are in the bargaining table while in public sector, people in the bargaining table do not have authority but rather authority is given by the legislative body. On the structure, other differences are as a result of bargaining units. Private sectors have one or two units while private sectors have multiple units.

The differences favor   the presented constituencies in that private sectors reduced poverty and accelerate economic growth. It boosts the standards of living and improves the employment rate. Constituencies benefit much from private sectors since they are sources of tax revenue and ensure the flow of capital (Holley, Jennings, & Wolters, 2012). On the other hand, public sector plays a great role in the constituency since it creates a healthy environment which encourages effective business activities.

 Example of a private sectors bargaining is clothing industry.  Clothing industry plays a great role in developing countries as they bring both economic and social development. They develop new jobs incomes and policies which helps the developing countries to sustain the economic development.  Example of a public sector bargaining is transport department (Holley, Jennings, & Wolters, 2012). Government develops a strategic framework of ensuring that there is an effective transport network and transport matters are controlled. The government is also responsible in maintaining economic growth through providing reliable transport networks and effective environmental performance.

Reference

Magoon, L. M., & De, S. A. D. (2007). 50 plus one tips when hiring & firing employees. Chicago, Ill:

Encouragement Press.

Holley, W. H., Jennings, K. M., & Wolters, R. S. (2012). The labor relations process. Mason, OH: South-

Western Cengage Learning.

Riverdale State Hospital Case Study

An evaluation of the Riverdale hospital case shows that unproductive communication in the employee’s ranks has thus resulted in negative impacts.  The hospital employees, therefore, lack relations that are supportive to achieving efficiency. According to Gillis, (2011), supportive relationships hold that employee’s relations within an organization help in developing communication.  This, therefore, helps in ensuring that issued are analyzed and solved in strategic ways.  It is thus evident that poor communication at the Riverdale hospital has resulted in huge costs.  The structures in modern organizations have changed gradually based on the needs.  Humans require proper communication, therefore in any organization communication before and throughout an operation are highly required (Gillis, 2011).  This form of communication is beneficial because based on the hospital case communication would have helped in saving a life.

The hospital case study shows that there was a huge communication breakdown. This is because the employees of the hospital are government officials who provide services based on their ranking.  A resident patient in the hospital died after the collapse of a wall that was next to his hospital bed. This, therefore, shows that the management was not effective since no communication had been made in regard to the particular wall. In other words, this implies that several signs that would result in danger had been overlooked. An instance can be derived from the cry of patient James Horris who continuously claimed that the sky had an issue. This was a clear sign that he predicted that the ceiling had an issue and he saw that it would fall.  Since the patient suffered from amnesia he did not have a proper way illustrating the issue.  The employees failed to recognize this and instead they subjected him to drugs.  Because the running of the hospital was based on bureaucracy it was directed by specific traits which resulted in devastation which was death (Gillis, 2011).  Labor was provided in the division based on the different ranks that were held by the employees each of the rank having specific policies.  The investigation, therefore, shows that the ceiling had an issue that required immediate attention

            Operative communication is essential to every organization as it assists in building the distinct organization functions.  Based on facts, effective communication helps in developing customer relations, product development as well as the management of employees. This generally involves every business operation aspect (Keyton, 2011). The major audience of communication is employed as they normally serve as a connection to the other audiences.  This, therefore, implies that when the employees of an organization are well informed and engaged in communication the other operations constituencies are bound to emerge stronger.  Effective communication helps in increasing productivity, developing effectiveness and encouraging the corporation to be innovative through ideas generation.  Communication can be described as a business central point that determines the success of any operation.  Communication helps in building a culture that is effective in ensuring the organization’s wellbeing especially based on teams effectiveness (Keyton, 2011).

            In summing up, while theories of the managing organization are continuously emerging there are no theories that are free from issues.  This is because most of these theories are based on achieving progress rather than attaining organizational perfection. The analysis of the case shows that there are strategies that need to be undertaken in the avoidance of such tragedies occurrence.  In order to increase communication effectiveness, an organization is necessitated to conduct a weekly meeting which will involve employees from all ranks in the general hospital.  This will help in ensuring that all the employees are well informed which will assist in avoiding fatalities that are unnecessary. Through operative communication patterns selection, flexible strategies of collaborating with one another can be applied.  By viewing the current economy the necessity of coming together can be established as working together helps in developing solutions more effectively. 

            References

            Gillis, T. L., & International Association of Business Communicators. (2011). The IABC handbook of organizational communication: A guide to internal communication, public relations, marketing, and leadership. San Francisco: Jossey-Bass.

            Keyton, J. (2011). Communication & organizational culture: A key to understanding work experiences. Los Angeles: SAGE.

E-retailing

The information systems review challenges more in the electronic business but the current data systems in the electronic business are even more complicated as their features have conflicts with the unspoken hypothesis.  Electronic commerce features are outlined and their highlights are explicated in the expectations that the public have the evaluation on the e-retailing approach.  The main approach in the reach of the e- business internationally is more challenging.  The main challenge is the hardship of defining the public and the sampling locations.  Another challenge is the incapability to rely on the environmental background as an alternative for the enlightening cohesion.  This is a huge challenge given the limited theories that defines the cultural approach of behaviors and lack of awareness of the meaning of culture in the business context and its involvement in electronic (Andersen, 2003). 

            Despite these challenges, the e- commerce systems that are used in the business environment moves afar the linked -group transfer to incorporated information that moves across the valued chain.  To adopt these e-business systems, has showed a hardship as they extend the organizational territories and engages the connections with the outer parties including the trading partners and the groups with the business interest.  This as the sector of retail approaches the electronic methodologies of business and focuses on the internet so as to aid the business sector which has a dictatorial context with the retailer (Andersen, 2003). 

            The introduction of the e-retail in any business causes many challenges to the company both internally and in the external connections. So as to make it possible in understanding the e-retail, it is important to be aware of the shareholders needs, to optimize the flow of information and understanding the possibility of changing the process of business handling (Andersen, 2003). 

Reference

IFIP TC8/WG8.4 Working Conference on E-Business: Multidisciplinary Research and Practice, & Andersen, K. V. (2003). Seeking success in e-business: A multidisciplinary approach. Boston: Kluwer Academic Publishers.    

The Effect of Norwegian Emission Tax on Emission from Car and on Consumer Behavior

Introduction

Back in 2007, the government of Norway reformed the tax regime of the vehicles with the goal of reducing emission of CO₂ by cars (Ciccone, 2015). This followed after the tremendous increase in purchase of vehicles that appeared to be fuel inefficient. It was recorded that transport industry was responsible for approximately 23% of carbon emissions in the atmosphere. On the other hand, it was perceptible that the sector ranks in the second position among the industries that exhibit high energy consumption. After assessing the emission of CO₂, the government of Norway identified that approximately 75% of the carbon emission from the transport industry come from road transport especially from personal cars and heavy duty trucks (Ciccone, 2015). Precisely, Norwegian government considered several approaches of reducing emission of carbon to the atmosphere by the transport industry. Some of these approaches included producing fuel efficient vehicles, utilizing renewable sources of fuels such as biofuel, electricity and hydrogen, and enhancing public transport to lower vehicle travel demand (Ciccone, 2015). The alternative approach for reducing carbon emission by vehicles was economic incentives such as carbon taxes together with command and control regulation. However, it is factual that these approaches tend to be interrelated and complement each other. For instance, European economies have enacted carbon emission regimes which target producers of passenger vehicles to make sure that they manufacture fuel efficient and technologically advanced vehicles (Ciccone, 2015). At the same time, some of the countries in Europe have implemented fiscal approaches such as taxes in order to lower the demand of carbon emitting vehicles and promote production of fuel efficient cars. Therefore, it is factual that this has influenced the consumer behavior together with the level of emissions from the vehicles. This paper will focus on how the Norwegian emission tax has affected emission from vehicles and the overall consumer behavior.

The Purpose of the Research

The purpose of this research is to assess the impact of Norwegian emission tax on the consumer behavior and carbon emission from the vehicles. Therefore, the research will cite from the results that were recorded in Norway after implementing the reformed vehicle registration tax.  

Research Question

What is the effect of Norwegian emission tax on emission from car and on consumer behavior?

Literature Review

Of all the approaches that were available for the Norwegian government, they settled on Vehicle Registration Tax (VRT). VRT accounted for about half the retail price of the vehicles in the Norwegian economy. The objective of inflicting this tax was to reduce the intensity of carbon emission and facilitating purchase of fuel efficient vehicles. However, the registration tax in 2007 was a reform which substituted the early regime which focused on the engine size as a component for measuring carbon emission intensity. Therefore, after the tax, the sensitivity increased especially to carbon emission by vehicles. After the enacting of the tax, it was exhibited that consumers who went for fuel efficient cars saved approximately 10,000 Norwegian currency where those who went for fuel inefficient cars expensed an increase of approximately 50,000 Norwegian currency (Ciccone, 2015). In estimating the effect of the reformed vehicle registration tax, the government considered variables such as intensity of carbon emissions by the new vehicles, market share of the old vehicles, and the change in pollution after introduction of the reformed registration tax. According to the report that was released by Norwegian Road Federation (OFVAS), the tax resulted to the reduction of carbon emission intensity by approximately 7.5 gCO₂/km. This was estimated to be 4.3% reduction of the overall emission which accounted for a standard deviation of 20%.

Precisely, after 2007, the intensity of CO₂ decreased from 173 to 160 gCO₂/km (Ciccone, 2015). As a result, it is perceptible that the overall impact of the reformed tax accounted for half of the overall reduction of CO₂ emission intensity. The overall reduction of the emission includes factors such as increase of fuel efficiency, and increase supply of the fuel efficient vehicles in the market. Additionally, the tax resulted to the increase of demand for the fuel efficient vehicles together with the increase of market share for the diesel vehicles. Correspondingly, the reform resulted to the decrease of the market share for the high emitting vehicles that emitted more than 180 gCO₂/km by approximately 12% points (Ciccone, 2015). For the diesel vehicles, the reformed tax promoted an increase of their market share from 19 to 21% points by the turn of 2008. However, it was exhibited that the reformed tax did not impose the new sales effects.

From the Norwegian case, it is factual that prior to implementing the fiscal approach to reduce carbon emission by cars, it is recommendable to consider the effectiveness of the approach based on different factors (Aasness, Bye & Mysen, 1995). Different countries have embraced the implementation of these instruments where they execute them differently with regard to their objectives and economic status. However, it has appeared that economic and environmental effects of fiscal instruments implementation is complex and had to assess. This is based on the fact that in different countries which have executed the instruments, they always derive conflicting conclusions (Aasness, Bye & Mysen, 1995). According to some studies, it is asserted that fiscal instruments of controlling carbon emissions are effective because they tend to counterbalance consumer nearsightedness by estimating future costs. This is argued on the fact that consumers appear to consider prices and taxes of the product rather than considering the expected future costs (Aasness, Bye & Mysen, 1995).

Conversely, other studies infer that fuel taxes appear to affect the sales of the new vehicles whereas fuel taxes affect sales of both new and old vehicles. This draws to the conclusion that the effectiveness of the fiscal instruments depends on the types of taxes imposed. This is to mean that fuel taxes are the most effective elements of fiscal instruments citing from the fact their impact is double-dimensioned (Aasness, Bye & Mysen, 1995). Precisely, fuel taxes discourage carbon emission from transport activities and facilitate purchase of fuel efficient vehicles. Regardless of the fact that it is yet to be agreed on the most effective policy of reducing carbon emission by vehicles, it is undeniable that taxation of fuel inefficient vehicles can result to significant reduction of carbon emission in the transport sector (Ciccone, 2015). Generally, the most effective policy in ensuring reduction of carbon emission intensity is use of differentiated vehicle taxes to increase the magnitude of the desired results. In countries such as France, reforming vehicle registration tax resulted to a decrease of carbon emission by 5% and a corresponding increase of new vehicles sales by 13%. The increase in the new cars sales created corresponding revenues of approximately €285 million to the national budget (Ciccone, 2015).                                          

In other countries such as Germany and Sweden which implemented the differentiated vehicles taxes, the effects of the carbon emissions intensity were not perceptible which means that they were very minor. For the whole of the European continent, studies exhibit that 1% increase in vehicle registration taxes sensitivity imposes a corresponding reduction of CO₂ emission intensity by approximately 0.06 to 0.13% (Ciccone, 2015). Therefore, it is factual that the impact of the taxes is very small for the economy to depend on it for the desired results. However, the difference in the results obtained by different countries as exhibited by France and Germany can be cited from car production in the country. Therefore, in comparing the impacts for different countries, the appropriate country to compare with Norway is Ireland because none of them holds a car production industry. From this fact, it is factual that policies of these countries consider the demand of the vehicles in the market. Coincidentally, Ireland reformed the vehicle registration tax and recorded similar results as Norway did. Regardless of the fact that Ireland differentiated their tax, they recorded an equal reduction of carbon emission intensity with Norway which is 13%. Generally, it is noteworthy that Norway and Ireland record short term impact on the reduction of CO₂ emission which can be cited from the shift to the diesel-fueled vehicles.

Methodology

The research will involve both primary and secondary data collection while using both qualitative and quantitative research. Precisely, primary data collection will encompass survey and interview to the randomly selected respondents. The respondents will be staff members in car production companies and some from Norwegian Road Federation. The total number of selected respondents will be 50-60 who will participate in the survey where only 20-25 of them will be interviewed. On the other hand, secondary data collection will encompasses gathering information from the internet sources. The selection of internet sources will be based on the reliability and validity of the sources. Some of the valid sources that will be selected include peer reviewed journals, similar research articles and text books. The research will qualitatively assess the effect of the emission tax and quantitatively determine the impact using statistical figures to represent the data.   

Conclusion  

Generally, after Norway reformed their vehicle registration tax, they recorded a considerable reduction in the CO₂ emission which could not be achieved earlier. Citing from the fact that, transport industry was among the sectors that contributed to CO₂ emission, implementing a policy in the sector guaranteed considerable change. This was the reason why the overall CO₂ emission reduced by 12% after the reformed tax. However, in order to increase the effectiveness of the policy, it is recommendable to differentiate the taxes in the policy since different elements have different impacts.

References       

Ciccone, A. (2015). Environmental effects of a vehicle tax reform: empirical evidence from Norway. The research council of Norway, University of Oslo. Retrieved from http://www.cree.uio.no/publications/2014_9/Evidence_from_Norway_Ciccone_CREE_WP09_2014.pdf   

Aasness, J., Bye, T., & Mysen, H.T. (1995). Welfare effects of emission taxes in Norway. Statistics Norway research department. http://www.ssb.no/a/publikasjoner/pdf/DP/dp_148.pdf

Groupon, Inc.

Executive summary

            Groupon Company is a business that was established in Chicago and it basically offers discount services globally. Over the years it has experienced a tremendous growth and it has brought about so many changes in the way consumers spend and the way in which they perceive discount. The company is customer centered and they focus on bringing the brick as well as the mortar business onto the internet. Their core mission and vision is for the betterment of their services each new day as they become the operating system for the local businesses. This drives them towards offering more quality services. The company is, however, facing some issues such as the competition and sustainability issues of the company and it is through these problems that the company is facing problems globally (Falcone et al n.y). The company has corporate governance and they are guided by the strategic management of their company

            Strategic business management according to Groupon case was aimed at becoming a daily local commerce for merchants and consumers and the strategy included the following; growing of subscriber and customer base where several investments were made in order to acquire subscribers through online initiatives of marketing (Falcone et al n.y). The second strategy is growing in the number of merchants partners which involved expansion of ways through which consumers could discover deals in the market place. The other strategy involved positioning of Groupon in order to benefit from technological changes affecting consumer behavior and this was done as technological advances continued. The other strategy is increasing a variety of [products through innovation where a variety of new products was launched in 2011 and more were planned to be launched as time goes on (Falcone et al n.y). Lastly, there is expansion, acquisitions and business development partnerships where it historically gained local management teams as core assets, small subscriber and bases of merchant partner where it applies its expertise to scale the business.

References

Falcone N., Halbruner E, Fogarty E and Vincelette J. (n.y). Groupon, Inc. Daily Deal or Lasting Success?

Business structures

The various types of business structures that Jack and Jill can form include partnership, joint ventures and a company. A partnership refers to where more than one individual come together and agree to do business together with an aim of making profit. In partnership, every partner is responsible for any decisions that are made by their partners while acting on behalf of their business. The law treats all the partners equally by the law. The partners share profit equally and also cover the losses equally.  They also share equal responsibilities in the trading activities of the business (Latimer & Australia Limited, 2011). All these apply in the absence of any agreement. However, from the perspective of a third party, the partners are severally and jointly liable for the partnership’s obligation. The partnership does not have a legal existence that is separate from partners and thus the partners liability for all debts is unlimited, several and joint. Limited partnership refers to the one where general partner carry out the business activities and thus has personal liability. In this case the limited partners are passive investors and bear the liability for only their stake in the business. The limited partners should not be involved in the management of the business. Some states in Australia do not allow the formation of business partnership. Partners’ obligations and duties outlined in the agreement are owed to one another but they should exercise their powers and rights to the overall benefit of the partnership business (Latimer & Australia Limited, 2011). In pursuing whether partnership is appropriate or not, it’s necessary to outlines the advantages or disadvantages associated with this form of business ownership. A major advantage is that this form of business makes it possible to share expertise, labor, financial and other resources. This provides the potential for leveraging of available resources and synergy. Moreover, unlike the incorporated business structures, the cost of establishing a partnership is relatively lower and its registration process is quite easier. The fact that partnership is not separate from owners comes with various tax benefits. However, there are significant noticeable pitfalls as seen where one is liable for the actions of their partners. There is also the high possibility of disputes on the right way to share profits or bear losses. Another pitfall is that the business will definitely cease each moment there is in its membership, as the addition or removal of a person will require the dissolution of the current partnership and creation of another one, through the execution of a new agreement. The business structures are also not effective amassing and holding assets that are appreciating (Latimer & Australia Limited, 2011).

Joint ventures are usually established between two or more organizations in order to carry out some specific projects. The organizations enter into an agreement for joint venture that is legally binding and which should be enforceable. The agreement spells out the obligations for each of the persons or may also come about from the obligations in the common law. The terms contained in the joint venture includes the initial contribution by each of the organization initially, the acts that every organization is obliged to carry out in the duration of the project, the venture’s governance, reporting obligations, the process to be followed in the settlement of a disputes between the parties in the joint venture and what should happen when the duration and life of the venture has come to an end (Cassidy, 2006). These obligations may arise from the special relationship among the parties or from the common law. Joint ventures can be incorporated, unincorporated and Unit Trust Joint Ventures. Unincorporated is one where the parties association lacks both equity capital and form, and the terms of the agreement between the commercial activities and these parties’ binds this venture. The ventures include those which can be defined as partnership in common law and the others that are not business partnership. The incorporated joint ventures are where the parties involved arrange to incorporate a different legal entity to carry out the project on behalf of the participants.  The obligations and rights of the participants are normally negotiated separately from the shareholders agreement. The corporate joint ventures establish obligations that are different between the participants. The difference in relationships is normally between the participants in their shareholders’ capacity, participants and the venture itself and between shareholders and directors.  The Unit Trust Joint Ventures, there usually a creation of unit trust to have a combination of incorporated and unincorporated joint venture features (Latimer & Australia Limited, 2011).  

A company is a legal entity that is separate from its owners and those who carry out the management function. Thus the shareholders and the directors cannot be liable for any debt arising from the company activities. A company is thus able to hold assets in its name and bears the liability for its obligations alone. Thus, the directors and shareholders cannot be held liable for the company’s debts except for the provisions concerning insolvency in trading as outlined in the Corporations Act of 2001(Cassidy, 2006). Essentially, insolvency in trading involves where a debt is incurred in such a time that reasonable grounds exist for the belief that the company can no-longer manage or is likely to no-longer manage to service its debts at the time they are due. In Australia, companies are regulated by Australia Securities and Investment Commission, a body that also administers the corporation act with an aim of ensuring that consumer and businesses protection is provided while transacting with the companies. The various categories of companies are defined by the liability type which is imposed on owners – shareholders. They include companies limited by guarantee or by shares. By shares means that that the shareholders’ liability is limited to how much their shares are valued (Cassidy, 2006). This can either be public or private company. Limited by guarantee implies that there is neither share capital nor shareholders but its members contribute to a certain nominal amount in case there is a shortfall in its assets to pay its debts during the process of dissolution. Companies limited by guarantee should not carry out business activities while aiming at making profits, and thus, are most suitable for religious and welfare organizations.  A public company is normally publicly held, implying that its shares are owned by the members of the public. The public company should have at least a single shareholder with no set maximum shareholders number. The company I not limited with the amount of funds it can borrow to the public. The limitation of the shareholders liability is to the extent of any balance that may owe on their shares. The directors for the public company must at least be 3 while at least 2 of them should ordinarily be residents of Australia. It should also have a least a single secretary with residence in Australia. If the company does not have enough number of these officers it should put more efforts in ensuring the appointment of new officers in the quickest time possible to be compliant with the law. Lack of enough officers adds up to the violation of the 2001 Corporations Act’s requirements whose result would be being served with a penalty by ASIC which would require a payment of $1062.50 penalty. The failure to meet this obligation could also lead to legal action against the company (Latimer & Australia Limited, 2011).

A private company is one which does not issue its shares to the members of the public in the stock exchange market. There are usually restrictions on the transfer of shares in a way, like in the case of the requirement that any transfer of the company’s shares must be approved by the directors and that new shareholders can only become company members if the company completes a registration to show that shares have been transferred to them. The company must consist of a minimum of a single member who is the shareholder and a set maximum of fifty shareholders. The company’s shareholders liability is limited usually limited to any uncalled amount, owing on those shares (Latimer & Australia Limited, 2011). The requirements involving accounting that may be imposed on this business structure is dependent on whether it is considered large or small company. A small private company is only obliged to prepare financial reports annually and directors’ reports with information about dividends recommended or paid or issued options and the operations if there is a direction to do so and passed by at least five percent of votes or by ASIC (Cassidy, 2006).

The best type of company to form is an incorporated Proprietary limited company. This kind of company comes with various benefits appropriate for business structures. To begin with, a limited company is normally a legal entity that is distinct from its owners or managers. This indicates that any legal action by creditors can only be done against the company and not its subscribers who established it.  This can be explained in terms of the members having limited liability, which is the main advantage attributed to this incorporation. The subscribers are only liable for an amount that is unpaid on shares. In most cases , the  shares of private companies are  issued as fully paid , which means that if things do not go as expected , the company subscribers only loss will be value of any loan and shares(Cassidy, 2006). Incorporating a business is provides the best means of ensuring protection for personal assets so that they are not put at risk. This means that business owners can carry out business activities with fear of risking their savings and personal property. The only protection which is not offered is in case of fraud. The company directors can thus strategically perform their legal duty of not incurring liabilities which they have reasonable basis of believing the firm will be unable to pay. Incorporation of a business ensures that company names are restricted and since the name follows the set rules, it cannot be used by anyone else. This may not be experienced in other business structures. A proprietary limited company comes with the benefit of continuity, since its life is infinite (Cassidy, 2006). The management, employees and directors act just as agents of this company which means that upon retirement, death or quitting the existence of the company continues. The company’s termination can only be done through liquidation, winding up or an order by the registrar of companies and courts.  The Australian law also allows for the introduction of new shareholders more easily since the transfer of shares is done through a straightforward process. The company legislation and preemption right offers protection to the existing shareholders, and the aim is usually to protect minority investors’ interests. The law also allows the company to have as many as 50 shareholders which can proof beneficial to when the firm is growing and expanding and more capital is needed (Cassidy, 2006). Since the payment of corporate tax by companies is done on taxable profit basis, there is a benefit of extensive tax-deductable costs and allowances that can help in offsetting the profits of a company. Moreover, the present corporate tax level is lower as compared to than rates of income taxes. The benefits of incorporating proprietary limited company extend beyond funds availability. A company is normally viewed by customers, suppliers and the respective business associate as having more stability than businesses that are unincorporated. This implies the permanence and credibility which communicates the commitment of the owners to continuous success of their venture.  A corporation can also provide anonymity to its shareholders if they need to establish a small firm and want to keep their involvement away from public knowledge (Cassidy, 2006).

A director who has been appointed owes some fiduciaries duties to the company that can lead to personal liability if breached which include, liability for damages, criminal and civil penalties. A director has an obligation of acting honestly, which implies acting in good faith and in the company’s best interest and for the appropriate purpose. The obligation requires the directors to carry out judgments independently in regard to relevant materials, facts or other views while in service of the company. The director has the obligation to ensure they do not improperly use position or information arising from it to acquire their advantage or that of others at the expense of the company (Loos, & International Bar Association.2010). The other obligation relates to avoiding conflict of interest and insures personal interest materials concerning the company affairs that they have are disclosed. A director has the obligation to ensure they do not get personal gain from taking advantage of any corporate opportunity at the expense of wellbeing of the firm. The other obligation requires a director to observe reasonable diligence and care while discharging their duties. To third parties, a director has the obligation not to take part in insolvent business activities or activities that may lender the company insolvent. The other obligation requires every director to ensure the financial and directors reports are prepared for the financial years (Loos, & International Bar Association.2010).  Moreover, a director can become personally liable in the instances where the company breaches the law. These include instances where the Competition and Consumer Act 2010 has been contravened by the company. The other instance is where the company violates the laws on safety and occupational health, environment protection and taxation. Directors can bear personal liability if they aided in the company’s violation of tax offences (Tomasi, Bottomley, & McQueen, 2002).

The directors and the shareholders are legally allowed to be employees of the proprietary company under normal wage and salary conditions. This includes their income being taxed at the personal rates (Cassidy, 2006).

References

Latimer, P. S., & CCH Australia Limited. (2011). Australian business law 2012. North Ryde, N.S.W: CCH Australia.

Cassidy, J. (2006). Concise corporations law. Annandale, N.S.W: Federation Press. 37-41

Loos, A., & International Bar Association. (2010). Directors' liability: A worldwide review. Alphen and den Rijn: Kluwer Law International/International Bar Association.271-276

Tomasic, R., Bottomley, S., & McQueen, R. (2002). Corporations law in Australia. Sydney: Federation Press.316-320

            Summary

            In the world today the retail environment is defined by how customers and the retail business are continuously becoming empowered by the fresh digital channels and technologies that accessible readily.  Retail business is thus challenged to get involved in Omni-channel approach in order to become consumer-centered. Omni channels are important to the retail because they help in developing customers experience value. In the world of business, toady retailers are highly necessitated to be well equipped with distinct modes of reaching their consumers in actual time. Omni-channel ensures that customer satisfaction is achieved as it is aimed at meeting their expectations (Feinberg, 2016).  This strategy is essential to the retail business at it ensures that the net profit is increased due to the increase in a number of sales and a decrease in losses.  Moreover, Omni-channel is an essential strategy to the retail business as it works in enhancing that the customers get appropriate, modified and seamless experience (Feinberg, 2016).  This there develops relationship management thus reducing churn and increasing loyalty from the consumers. Market segment increase is best developed using Omni-channel in the retail business as the customers are treated based on their needs. The strategy aims at providing adequate sight to the consumers through the identification of opportunities and market needs for the business.  The strategy of Omni-channel in the retail world is a general win for the consumers and the retailers (Feinberg, 2016). This is because the consumers have a better experience and they are additionally happy as they are able to receive offers that are applicable as they require.  On the other hand, the retailers are able to attain satisfaction as sales are increased.

Reference

            Feinberg R. (2016). Omni-Channel Retail. L2 Intelligence Report. Retrieved From http://www.cfs.purdue.edu/richardfeinberg/csr%20406%20eretailing/book%201/omnichannel%20retailing%20forrester%20seminar/

County Park Lounge- Management  

Introduction

In business, it is factual that management plays a vital role in achieving the defined objectives as it helps in coordinating and planning for the activities that will facilitate the achievement. This is the reason why management is always regarded as one of the factors of production as it determines the quantity of output significantly. Precisely, management encompasses planning, organizing, controlling, supervising, creating corporate policy, and directing operations and activities of the organization. Furthermore, in order to effectuate management, the manager ought to adhere to the team concept in order to control the employees. This will help in implementing the management philosophy into the business compatibly with the projected organizational goals. Thus, this paper will focus on the intended management team   of County Park Lounge nightclub together with describing team concept, management philosophy and leadership actions that would apply to the business.

Management Team  

The management team of the nightclub is the close one made of independent and effective members of staff. Together as a team, the business will be able to achieve its major objective and mission of enhancing customer relations and experience through offering unique products and services of premium quality in a supportive environment. Therefore, the structure of the management team is represented as follows;

• Bar Manager

The bar manager has a bachelor’s degree in business management with sufficient experience of more than 5 years from a related or similar business. Additionally, the manager has earlier experience on managing a new nightclub together with raising it up to the considerable level of performance. Generally, core responsibilities of the manager will include coordination and supervision of daily operations of the nightclub together with planning for different events and activities for the welfare of the business.

• Assistant Manager

The assistant manager has enough experience of not less than 7 years in bartending and management of the nightclub experience. The core responsibilities of the assistant manager include taking over the roles of the manager while he is absent and controlling other staff members such as bartenders, DJ, security personnel and chefs.

• Consultant     

The major roles of the consultant is to help the manager and the assistant manager to solve instant and unpredicted issues in the business together with helping them create value, enhance business performance and optimize development. The consultant has an experience of 10 years within the field of nightclub business consultancy reinforced with experience in working as a manager of such a business. Therefore, the consultant will focus on marketing, human resources, management strategies, operations and overall business strategy implementation.

• Accountant    

County Park Lounge accountant has more than 5 years experience both in financial management field and nightclub business. therefore, some of the core roles of the accountant include payroll control, making financial statements and reports, financial budgeting and planning, bank statements reconciling, monitoring the adheres of the business with regard to PAYE and VAT provisions, and cash flow analysis.    

Team Concept

A team can be delineated as a group of people who use complimentary skills to meet a shared vision (Alleman, 2004). This means that team members ought to collaborate and coordinate closely in order to achieve the shared vision from their difference in skills and experience. Thus, it is factual that formation of a team subjects the team members to series of processes that helps them turn from being strangers to cooperative members of the group (Alleman, 2004). These processes/stages are derived from the behaviors of the group members which to be consistent throughout the stages and among the members of the group. Therefore, it is factual that the manager ought to recognize the behaviors of group members at every level in order to have an effective progress of the team. In order for the team to operate effectively, the team members should adhere to accountability and trust which will effectuate their interdependence in tackling their tasks.

Generally, the team concept follows the group development model invented by Bruce Tuckman which consists of crucial five stages. Precisely, the most applicable stages of Tuckman’s model include Forming, Storming, Norming and Performing (Alleman, 2004). The fifth stage, Adjourning, is not applicable to all teams as it includes terminations of the behaviors and activities of the group. At the adjourning stage, the manager plans for the appropriate way of concluding the teamwork by including the group members (Alleman, 2004). As a result, the manager of the team should implement effective interventions in order to promote disengagement and termination of the tasks.

1. Forming     

As Glenn Smith (2014) asserts, this stage involves development of an effective team through role selection and assigning to the selected team members. This is the stage where the manager makes sure that the team is safe probably from the appropriate selection of members and task assigning (Smith, 2014). This means that each member of the group should fit perfectly in the team.

1. Storming  

According to Glenn Smith (2014), this stage of group development is dominated by competition and conflict during personal relations of the team members. It is inevitable for a group with different skills and experiences trying to achieve a shared vision to endure conflict and competition (Smith, 2014). Therefore, the manager is obliged to employ conflict resolution skills to make sure that the team proceeds to the next stage effectively.

1. Norming

This stage encompasses formation of a working culture that brings back group members together from the conflict in stage 2 which had made them move apart (Smith, 2014). Therefore, this is where the members start asking questions about their contributions, achievements and how to maintain the collaborative culture by solving group issues. Precisely, team members share ideas, feelings and solicit for a collaborative group work. 

1. Performing

After the members initiate a collaborative group, through interdependence, they are able to perform different tasks assigned to them in order to achieve the organizational vision (Smith, 2014). This is where the members implement problem solving skills and close relations to increase their productivity.

Group Dynamics

Group dynamics refers to the relationship between the group members with an objective of increasing the productivity of the groups towards achieving the shared vision (Forsyth, 2010). It is factual that the effectiveness of the team is promoted by the dynamics of the group. Therefore, if the goal of the team is compatible with the overall organizational vision, the group is regarded as effective. Generally, it is the obligation of the manager to make sure that the team adheres to the group dynamics in order to be guaranteed of future achievement of the organizational goals (Forsyth, 2010).

Strengths of Business Teams    

1. Offers pool of ideas and creativity
2. Large output
3. Selling and negotiation skills
4. Collaboration in performing tasks
5. Motivation
6. Strong relationships
7. Operations consistency

Weaknesses

1. High labor costs
2. Interdependence
3. Vulnerability to conflicts
4. Management difficulty
5. Shared vision
6. Diversity

Management Philosophy

Management philosophy refers to the set of beliefs exerted by the individual in the management position to the group of people as guiding principles for their daily operations (Davis, 2005). For instance, the manager can implement the management philosophy that guides the employees on who to maintain effective and productive personal relations. Therefore, the manager will have to develop an organizational culture that will guide the employees towards achieving the intended objective (Davis, 2005). It is noteworthy that this organizational culture is subjectively developed by the manager which means that it is compatible with the goals set. The organizational culture can include guiding principles for effective business communication between the employees. Thus, the manager defines the appropriate way of exchanging and imparting information, ideas and feelings during personal relations. Generally, it is factual that the management philosophy is dependent on the beliefs of the executive members implementing the organizational culture. This means that the managers implement the management philosophy with consideration to the organization vision and mission.

Leadership Actions

1. Labor Strike

If the manufacturer endures a labor strike which is projected to last for six months, the most appropriate leadership action to take is to source for other manufacturers who can supply products with a contract of 6 months. This is based on the fact that it might be unethical to terminate the existing contract between the business owner and the supplier/manufacturer. Therefore, the best way to cover for the time that the manufacturer will not be able to provide for the business is to use other potential suppliers who can offer the products within the short period.

1. Competition

If three more competitors emerge to stiffen the competition in the nightclub industry, the most applicable strategy is to use pricing strategy to increase the competitive advantage of the business. This is based on the fact that the county park lounge has considered the pricing strategy prior to the opening of the business. For the first and the second fiscal years, the nightclub is projected to sell the products at $5 and $6 respectively per unit. These prices are slightly lower than those of other local clubs currently. It is perceptible that any other startup nightclub cannot lower the prices beyond that level to be guaranteed future operation. Thus, this is the advantage to county park lounge over other competitors and new entrants.

1. Employees Layoff

If it appears that employees’ layoffs will affect the performance of other employees, it is preferable to use other alternatives. Some of the alternatives include elimination of overtime, freezing salaries, using unpaid leaves with incentives, temporary elimination of bonuses, and reducing expensive perquisites (Cascio, 2009). This will help the business accommodate the number of employees at a reduced labor cost.  

Conclusion

It is factual that management is very important in making sure that the business achieves its projected goals and objectives. Through planning, organizing, controlling, supervising, creating corporate policy, and directing operations and activities, the business is guaranteed effective operation and continued achievement. In order to control a group of employees in the business, the manager should apply the team concept to make sure that the group with skills diversity works together to achieve a shared vision. Generally, the manager should implement strategies that facilitate group dynamics which will enhance cooperation and coordination of the group members towards achieving organizational goals.

References

Cascio, W.F., (2009). Employment Downsizing and Its Alternatives: Strategies for Long Term Success. SHRM Foundation. Print. Retrieved from https://www.shrm.org/about/foundation/products/documents/downsizing%20epg-%20final.pdf

Smith G. (2014). Four Stages of Team Development: The Growth Coach Houston. Retrieved from https://www.youtube.com/watch?v=7NouiH2ZT8w

Alleman, G.B. (2004). Forming, Storming, Norming, Performing and Adjourning. Niwot, Colorado. Retrieved from http://www.niwotridge.com/PDFs/FormStormNormPerform.pdf

 Forsyth, D. R. (2010). Group dynamics. Belmont, Calif: Wadsworth Cengage Learning.     

Davis, R.C., (2005). A Philosophy of Management. The Journal of Insurance, vol. 25, no. 3, 1-7.

Business Management

1. Consultative decision making would be most appropriate when solving a rising conflict among the members of the organization. In this style of decision making, the leader gathers thoughts and suggestions from various people and gets the best possible solutions from the members hence making the final decision fair to all the involved parties since decisions were derived from their fellow members (Montana & Charnov, 2008). Additionally, consultative decision style would be a good choice when solving matters affecting a group of individuals. In this case, views are obtained collectively through discussion, collaboration and questioning hence the final decision making is based on a broader scope of information with enough clarity for decision making.
2. Group decision making would be most appropriate in an organisation when planning for a range of activities within the organization. This is important because a group is capable of generating a broader number of high quality alternatives than a single individual (Montana & Charnov, 2008). With such alternatives, the group will ultimately attain a superior solution than a single individual.
3. There are instances where managers are ethically obligated to step in a self managed work team regardless of social loafing. In case the organizational performance is low, the manager has to step in since it is his responsibility to control the general performance of the organization (Montana & Charnov, 2008). The manager has to step in case there is a problem beyond the capacity of the team members.
4. Ambiguity can be defined as a state of uncertainty, conflicting directions, unpredictability and having multiple demands. There are instances where ambiguity is important and applicable to the organization. In advertising the organizational products, generalized statements are avoided. Instead, the organization aims to give an impacting message that highlights things to make the organizational products and brand appear stronger than others. Therefore ambiguity may be used as a language to promote the products of the organization.
5. Here are some of the things a manager can do to prevent the loss of good employees due to hostility of some customers. As a manager, I can tactfully talk to the disgruntled customers against their actions towards the employees by telling them that the employee would only be loyal to them if they are also loyal to the employees (Montana & Charnov, 2008). By doing so, the customers may change their actions towards the employees. In some cases, you can let the customer go to protect the good employee.
6. Organizational behavior refers to the human behavior within and towards the organization. As a business owner, I can help my managers understand the importance of organizational behavior. Firstly, I will define the organizational culture, rules, experiences and behavioral expectations and how they can influence those within the organization (Montana & Charnov, 2008). These will help them to work as per the culture of the organization and for the better mate of all in the organization.
7. Autocratic leadership refers to a style of leadership where the leader dictates and controls all decisions without meaningful participation of the subordinates (Klein, 2002). This style of leadership would be effective when a high expert is training the subordinates on a specific task where the subordinates are inexperienced. The leader does not need any supplementation from the subordinates due to their inexperience.
8. Charismatic leadership refers to a style of leadership where one or more individuals seen as inspiring are granted the power to provide guidance to the organization that result into dramatic changes and extraordinary performance levels (Klein, 2002). Charismatic leaders are often people with a clear vision and experience in particular fields. Examples of such leaders are found in religious institutions, social and political movements whereby they are relied on to inspire others the followers.
9. Span of control can be defined as the number of subordinates being controlled or supervised by a particular manager (Klein, 2002). The span of control of a given manager in an organization determines the size of the organization. Span of control can be determined by the following factors; nature of work done by subordinates, the increase in the complexity of work calls for more managerial attention hence reducing span of control. The capability of subordinates, knowledgeable subordinates require less supervision hence increasing span of control. Capability of the manager, a more experienced manager is capable of supervising more subordinates hence increasing the span of control.
10. Theory X managers assume that individuals generally do not like work, irresponsible and need close supervision in order to do their work whereas theory Y managers assume that individuals are generally productive, creative and able exercise self control in their work (Montana & Charnov, 2008). Therefore, theory X managers will always supervise their employees closely based on the stated assumption whereas theory Y managers will always act in a way that communicates trust in employees with less strict supervision.
11. Locus of control refers to the degree to which people perceive that the outcomes of events result from individual behaviors or external forces to themselves. Locus of control makes an individual believe that there is always a cause for the occurrence of events and for this reason it affects one’s ethical behavior to work towards achieving positive outcomes.
12. A formal organization consists of two or more persons coming together to work with an aim to achieve common objective. It has a set of rules and regulations governing it. An example is a company, a bank, a college, a school, etc (Katzenbach & Inayat-Khan, 2010). Whereas, informal organization refers to an arrangement of personal and social relationship within a formal organization. It does not have a set of rules to be followed. An informal organization consists of people in the formal organization working together, eating together, travelling together, etc.
13. As a manager, in a scenario where other employees perform higher than others, motivation will serve best (Montana & Charnov, 2008). This is a way of recognizing hardworking employees for their good work done. By doing this, the rest of the employees will love to be treated the same hence increasing their efforts to work.
14. In a scenario where employees want to quit job as a result of harsh supervision, I would have a joint talk with the employee together with the supervisor to analyze the cause of dissatisfaction. In the course of the talk, I will educate Bubba on the dangers of too much supervision to the employees. By doing so, the employees will realize their need to work even without strict supervision and Bubba will also know the harm of being strict to the workers (Klein, 2002).
15. Unethical behaviors among employees are always not acceptable regardless of whether they benefit the organization or they are not life threatening. This is because these behaviors are against the set standards of business operation and its impact can be felt negatively at some point (Klein, 2002). Therefore unethical behavior should be completely unaccepted.

References

Klein, S. (2002). Ethical business leadership: Balancing theory and practice. New York [u.a.: Lang.

Montana, P. J., & Charnov, B. H. (2008). Management. Hauppauge, NY: Barron's Educational Series.

Katzenbach, J. R., & Inayat-Khan, Z. (2010). Leading outside the lines: How to mobilize the (in)formal organization, energize your team, and get better results. San Francisco: Jossey-Bass.