Free Essay

15-1 Rocky Plains Brewing Ltd

In: Business and Management

Submitted By JT15
Words 2549
Pages 11
:

Course: Intro to Supply Chain & Operations Management (OPER1160)

A Firm located in Bangalore, India, has approached High Bar Communication with a proposal to outsource the online help desk function. Based on five Performance dimensions/criteria, research and other factoring reasons, I will submit my proposal on whether or not I believe High Bar should continue to in source this function, or outsource to the firm in Bangalore. There are many factors to consider, for both options can have positive effects on this organization and its mission. Both options demonstrate advantages and disadvantages associated with them.

:
High Bar communications is an internet service provider who caters to individual consumers and small businesses who require a high level of service. A firm in Bangalore, India has proposed High Bar Communication with outsourcing its online help desk. All their personnel are fluent in English and have a college degree or an appropriate technical background. The online help desk exists on the internet; therefore customers should not be aware of the switch. An article written by Bradley Hecht states that increasing user demands and a lack of clear leadership within the industry are forcing IS organizations to reevaluate the role of tomorrows help desk today (3).
Technology has altered the world in the last decades. Advancements made in computers and in telecommunications allowed for an increased integration between countries throughout the world involving many organizations. Not only internal networks but also the relationship they share with their suppliers and clients. Internally, in the organizations, technology has penetrated all communications, processes, production, and finances; thus, making it possible to quickly access information from all corporate areas (7)
The objective of this project is to compare the advantages and disadvantages of in sourcing and outsourcing the online help desk. Using a weighted point-matrix, cost chart, and other research, a relative decision will be proposed.
This report will present different performance dimensions/criteria to help aid in the final decision to continue to in source the online help desk function or outsource instead. High Bar Communication already has the highest customer satisfaction and retention rates in Canada. The organization does not want to lose these achievements, especially if the possibility of outsourcing may do so.
In the conclusion, based on the five performance dimensions/criteria and other research factors, I will give my opinion on what I believe High Bar Communications should do with the proposal.

Performance Dimension 1: Cost
Below is a chart outlining the current costs by High Bar Communication with the proposal from Bangalore, India.
“Cost Chart A”: Current Online Help Desk | Bangalore Proposal | | | Personnel Costs: | Fixed Cost | | | 40 Full time equivalent (FTE) technical experts | $1,750,000 per contract year (covers all administration and IT costs) | at $50,000 per year (Salary Benefits) Total Personnel costs= $2,000,000 | | | | | | Equipment Costs: | | | | 3 Servers at $2500 each per year | | 20 PC's at $900 each year= $18,000Total Equipment costs= $25,500 | | | | | | Variable Costs: | Variable Costs: | | | $1.25 per request (office supplies, fax paper, etc) uses 850,000 requests per year | $0.85 per request | Total Variable costs= $1,062,500 | Uses 850,000 requests per year= $722,500 | | | | | | | Total costs: | Total costs: | $2,000,000 + $25,500 + $1.062,500 | $1,750,000 + $722,500 | Total= $3,088,000 | Total= $2,472,500 | | |

By comparing the costs of current versus Bangalore in “Cost Chart A” it is evident that the help desk proposal from Bangalore would be the cheapest option going forward. The cost savings over the course of one year for High Bar Communication would be to take $3,088,000 (Current High Bar Cost) and minus by $2,472,500 (Proposed Cost). A total of $615,500 would be saved over the course of a year. The costs you do not see are the ones associated with outsourcing such as periodic executive trips to the foreign site, possible temporary residency to oversee the functions, and fees for trainers if new innovations need to be implemented. The short term cost savings are very attractive with this offer; however the long term affects need to be considered. I believe cost to be near the middle/top of the weighted point evaluation matrix to keep in house and the number one reason to be outsourced (refer to in sourcing and outsourcing charts on pg.7). As we all know a dollar saved is a dollar earned. Cost can easily persuade an organization’s decision; I do believe there are four other important dimensions that should be looked at first. Listed below are the four dimensions I believe to hold merit in the decision process for relocation of the online help desk.
Performance Dimension 2: Reliability Rhonda L Hensley writes “no Matter the type of service being purchased, reliability can be defined as the firm’s ability to provide the service correctly the first time” (1). Whether it is a good vehicle, computer, or even your cell phone to operate in a remote place, reliability is what all consumers seek. The goal is to give the most reliable service possible. Being reliable is an extremely important dimension to have, especially in the customer service realm. Proving to your clients that you are reliable is one of the most fundamental aspects of customer retention. The more you prove yourself as unreliable, the more customers will be easily persuaded to switch to one of your competitors. I believe this to be in the fourth position of the weighted point matrix for in sourcing as this is something you can control from a staffing perspective (refer to in sourcing matrix on pg. 7). Being reliable is a great attribute and can add to the dynamic of a business. Outsourcing I see reliability being third on the list (refer to outsourcing matrix on pg. 7). Full trust would be placed on the firm’s personnel to deliver the best way possible. Whether it is arriving to work with a positive attitude or even in their personal ability to go above and beyond their expected duties, it would not be easy to pin point “key” employees who could contribute to long term success. Amanda L Webster wrote “Reliability is essential to employee performance, it consists of the extent to which an individual or other entity may be counted on to do what is expected of them” (9)
Performance Dimension 3: Problem Resolution Problem resolution is fundamental for the help desk to succeed. The faster a diagnosis is made, the quicker a resolution can be formed. Clients would deal with one person rather than be transferred to other company personnel. If in sourced this can be well managed by senior analysts who have vast experience. If outsourced the Bangalore firm is expected to come to a diagnosis. For example, if there was a traffic accident and a main line was disrupted to access the internet, a local online help desk employee could have information from local news on the matter, therefore being able to deliver a quick answer to the user’s problem. It could take an outsourced firm much longer to locate the problem causing doubt in the user’s mind of the firms’ ability to resolve issues. One of the best ways to promote the help desk is through word of mouth and by having exceptional processes in place. If you are consistently resolving problems in a timely manner, customers will be pleased with the service and would be more likely to promote the company to friends and family. In an article Karen Hill states, “The first advice I give my clients in terms of promoting their help desk is to put in place the appropriate level of investment. You want to ensure you've got a world class help desk that solves the end users' problems in the neighborhood of 80-90 percent of the time” (5). Era Tremblay wrote, “While a global view of IT help desk functions may show many repetitive processes, a closer view will almost certainly reveal that individual enterprises differ from each other in both substantial and insubstantial ways. Any of those differences may be important in resolving problems from a helpdesk perspective” (6). I believe this dimension holds very high merit on both sides of this case. Leaving the function in house will allow you to monitor this step very closely, implementing an employee incentive program as an effective way to reward employees who are consistently exceeding company standards (refer to in sourcing matrix on pg. 7). If outsourced, problem resolution will still have to be monitored as this could hold ultimate weight on a customer’s overall opinion of the service/product they are receiving (refer to outsourcing matrix on pg. 7).
Performance Dimension 4: Quality

Performance Dimension 5: Customer Relations (Service)
Customer relations are a major gateway in understanding what the customer wants and desires from the service they are being provided. Direct contact with the customer can help in taking the needed steps to improve the current service. First and foremost you have to strive to always do what you have promised. Make every effort to mold your relationship with the customer into an open, continuous, and cordial one. Having this function local means there is a connection between the online help desk employee and the customer searching for an answer. This could in fact help resolve the issue faster if it is not a connection issue that the customer is experiencing. Understanding the wants and needs of your clients is extremely important, especially one that is service driven such as ISP. I believe this to weigh heavily on the overall decision to keep in house, so much so that I believe it to be the number one reason to do so (refer to in sourcing matrix on pg. 7). To outsource is taking a key part of the business and placing it in the hands of the outsourced online help desk. Thus I believe it stands very low on the weighted point matrix (refer to outsourcing matrix on pg. 7). Possible issues may arise based on cultural issues alone. For example they may not understand the language or slang of this certain client base especially if there are high employee turnover rates. It does not seem to reason that this is a major concern if outsourced, or if monitored it could be a very costly function as well.

I have evaluated each of the dimensions in a weighted point evaluation matrix that I believe holds merit in answering the final question, continue to keep in house or outsource the help desk to Bangalore, India? Below is the chart for the weighted point evaluation matrix based on my findings and how I believe each will hold weight in the decision. Overall functionality and well being of the employee is what I believe to be a vital piece in any organizations existence.

Weighted point evaluation matrix for " In sourcing of the Online help desk" | | Performance Measure | Weight | Importance (5 - Excellent, 1- Poor) | Total | Customer Relations | 0.30 | 5 | 1.5 | Problem Resolution | 0.25 | 4 | 1 | Cost | 0.20 | 4 | 0.6 | Reliability | 0.15 | 3 | 0.45 | Quality | 0.10 | 3 | 0.3 | Totals | 1.0 | 3.8 / AVG | 3.9 | Weighted point evaluation matrix for " Outsourcing of the Online help desk" | | Performance Measure | Weight | Importance (5 - Excellent, 1- Poor) | Total | Cost | 0.45 | 5 | 2.25 | Problem Resolution | 0.20 | 3 | 0.6 | Reliability | 0.15 | 2 | 0.3 | Customer Relations | 0.10 | 2 | 0.2 | Quality | 0.10 | 2 | 0.2 | Totals | 1.0 | 2.8 / AVG | 3.6 |

In comparing the performance dimensions, I find that my decision would be to keep the online help desk in house. While evaluating the options to keep in house or to outsource the online help desk, I find the total to keep in house equals 3.9 while the total to outsource equals 3.6, a final difference of 0.3 has been calculated from comparing the two options in favor of in Sourcing.

:
Based on the five performance dimensions and the weighted point evaluation matrix that has been outlined in this study, I believe that it would be more beneficial to keep the online help desk in house based on my findings.
Outsourcing to foreign countries, such as India, involves hidden costs, such as travel expenses and creating an infrastructure to manage operations. Other unforeseen costs would include annual price increases as this proposal has no contract stating how long it will be in place. Companies that don’t plan accordingly counteract the financial advantages of outsourcing in the short term. Having the ability to deal directly with the clients has a huge benefit on customer relations, which I believe to be one of the major players in the ISP industry. Outsourcing this will completely eradicate direct communication between the organization and its clients. Limited communication impedes the relationship building process, which may lead to the overall dissatisfaction of the organization and client. Since High Bar Communication is already at the top in terms of service in the field, obviously the big gain to outsourcing this function would be cost savings in the immediate future. The possibilities of this taking a turn for the worst is very high as there are hidden costs such as periodic executive trips to the foreign site, possible temporary residency to oversee the functions and fee’s for trainers if new innovations are to be implemented. If current subscribers were to find that the online help desk had been re-directed to a foreign country, it could have very detrimental effects. Keeping jobs domestic is very important for a lot of paying customers, keeping jobs within the company also serves for a more beneficial environment and the overall health of an organization. I hope I have pointed out enough for keeping this function in house, I hope that the current cost savings will not impede your final decision.

(1) Hensley, Rhonda L “Using reliability tools in service operations” (2011) Article available at: http://search.proquest.com.rap.ocls.ca/docview/866415686/13CCFC356CA6A657645/2?accountid=40483 (2) Lacey, Marcia “The advantages and disadvantages of outsourcing” (2002) Article available at: http://search.proquest.com.rap.ocls.ca/docview/221637324/13CCEB77AAF9533E86/1?accountid=40483 (3) Hecht, Bradley ”The help desk market: Disarray and disrepair” (1996)*Article available at: http://search.proquest.com.rap.ocls.ca/docview/220223318/13CBAE2B2672745BEFA/3?accountid=40483

(4) Siriginidi, Subba Rao “Internet service providers: an Indian scenario” (2000) *Article available at: http://search.proquest.com.rap.ocls.ca/docview/194504667/13CBAF7446A4B863285/2?accountid=40483 (5) Hill, Karen “Lending a helping hand: never underestimate the importance of a help desk within the IS department” (1998) *Article available at: http://search.proquest.com.rap.ocls.ca/docview/219911832/13CBB280ED6363F4178/1?accountid=40483 (6) Tremblay, Era “Why Help Desk Outsourcing Is Not Worth It” (2011) *Article available at: http://www.insurancenetworking.com/blogs/help_desk_outsourcing_it_workforce_management_cost_savings-29088-1.html (7) Siqueira, E. “Brasil: 500 anos de Comunicação. A eterna busca da liberdade”. (2000)
(8) Robertson, Kirstin “Sourcing the support center offshore: Bane or Benefit” (2006)
Article available at: http://www.krconsulting.com/sourcing-the-support-center-offshore-bane-or-benefit/ (9) Webster, Amanda L “What Form of Reliability Affects Employee Performance”
Article available at:
http://smallbusiness.chron.com/form-reliability-affects-employee-performance17633.html…...

Similar Documents

Premium Essay

Application Case 15-1

...Molten fired then, if these cohesive techniques are still being used?) On January 30, 1976, the union lost the representation election 6 to 4 (Workers succumbed to the threats of taking rent-free incentives away and the Union lost majority?). The union filed numerous charges of unfair labor practices, (Union filed charges of unfair labor practices #1 material) claiming that these violation had dissipated the union's majority status as established by the authorization cards. These violations, in the union's view, were so serious and widespread that they made a fair rerun election unlikely. The union requested that the company be ordered to recognize the union and bargain with the union on the basis of the pre-union majority previously established by the signed authorization cards, which it had secured in early December 1975. (#1 material- sounds reasonable, but is it really what the workers want if the company takes free-rent incentives away. Will it be worse for these workers?) Position of the Union The union filed charges of unfair labor practices against the company, claiming that the company had violated Section 8(a) (1) of the LMRA by: a. Repeatedly interrogating employees concerning their union activities. b. Threatening employees with deprivation of benefits if the union should be elected to represent them. c. Threatening an employee for refusing to reveal the identities of employees who attended a union meeting. d. Informing an employee that it knew......

Words: 2217 - Pages: 9

Premium Essay

Plain

...operating lease.” However, this was incorrect because based on the IAS 17, paragraph 10 – Accounting for Leases: “Situations that would normally lead to a lease being classified as a finance lease include the following: • the lease term is for the major part of the economic life of the asset, even if title is not transferred • at the inception of the lease, the present value of the minimum lease payments amounts to at least substantially all of the fair value of the leased asset” The Lessee would lease the equipment for three years and the useful life for the equipment was four years. As a result, the lease term was 75% (exhibit 1) of the economic life of the asset. Moreover, the present value of the annual payments would be $263,716 and the fair value of asset was only $265,000. The present value of the minimum lease payment would be 99.5% (exhibit 1) of the fair value of the leased asset. These situations would satisfy the requirement of IAS 17 to determine the lease as a finance lease. Next, we will look at the senior accountant’s work. The senior accountant’s analysis was correct because he/she determined the lease as a finance lease based on the fact that the lease term was for the major part of the economic life of the asset. However, in order to calculate the lease asset and obligation the senior accounting used the incremental borrowing rate. IAS 17, paragraph 20 requires that: “The following principles should be applied in the financial statements of......

Words: 495 - Pages: 2

Premium Essay

Rocky

...Concluding Case-Rocky Gagnon, General Contractor: 1) It is important to Rocky to assemble a good and qualified team.   The team should be able to work together to increase productivity, improve quality and reduce costs.   A good team would also be able to enhance speed and be powerful forces for innovation and change.   The best team would be a self-managed team.   Self-managed teams appear to be more productive, have lower costs, provide better customer service, provide higher quality, have better safety records and are more satisfying for members.   These types of teams control decisions about acquiring raw materials, performing operations, quality control, maintenance and shipping.   They are fully responsible for the full product.   Rocky would still be responsible for hiring and firing team members, and deciding which tasks they should perform. 2) Some problems that the group may encounter include learning the art of diplomacy, tackling “people issues” and finding the right division between encouraging autonomy and rewarding team innovations without letting the team get out of control. In order to prevent this, teams should be empowered, as the benefit of teams is reduced when they are not allowed to make decisions.   The management needs to trust teams with important responsibilities regarding innovation, or they will revert to making safe, traditional decisions.   The best teams are those that have been given a performance challenge by management and have......

Words: 300 - Pages: 2

Premium Essay

Foundational 15 Chapter 1

...The Foundational 15 1. Direct materials Direct Labor Variable manufacturing overhead Variable manufacturing cost per unit Variable manufacturing cost per unit Number of units produced Total variable manufacturing cost Fixed manufacturing overhead per unit Number of units produced Total fixed manufacturing cost Total product (manufacturing) cost $ $ $ $ $ 6.00 3.50 1.50 11.00 11.00 10,000 $ 110,000.00 4.00 10,000 $ 40,000.00 $ 150,000.00 $ 2. Sales commission Variable administrative expense Variable selling and administrative per unit Varible selling and admin. Per unit Number of units sold Total variable selling and admin. Expense Fixed selling and administrative expense per unit ($3 fixed selling + $2 fixed admin) Number of units sold Total fixed selling and administrative expense Total period (nonmanufacturing) cost $ $ $ $ 1.00 0.50 1.50 1.50 10,000 $ 15,000.00 $ 5.00 10,000 $ 50,000.00 $ 65,000.00 3. Direct materials Direct labor Variable manufacturing overhead Sales commissions Variable administrative expense Variable cost per unit sold Direct materials Direct Labor Variable manufacturing overhead Sales commissions Variable administrative expense Variable cost per unit sold $ $ $ $ $ $ $ $ $ $ $ $ 6.00 3.50 1.50 1.00 0.50 12.50 6.00 3.50 1.50 1.00 0.50 12.50 4. 5. Variable cost per unit sold Number of units sold Total variable costs Variable cost per unit sold Number of units sold Total variable costs Total fixed......

Words: 567 - Pages: 3

Premium Essay

Rocky Mountain

...Rocky Mountain Advanced Genome Case Study 2: Rocky Mountain Advanced Genome This paper provides an objective valuation of Rocky Mountain Advanced Genome (RMAG) to be adopted by Big Sur regarding the purchase of a 90% equity stake for $46 million. Forecast Horizon: The forecast horizon was lengthened to 15 years, as RMAG is a young, “highly promising, high risk” firm, only established 15 months prior, it should reach maturity in 2010 as sales, expenses and free cash flows stabilise (Fig.1). RMAG exhibits characteristics of a high growth firm with no dividends, high risk, high CAPEX expenditures and no leverage. Furthermore, it would be inadequate to adopt the forecast horizon dictated by RMAG and Big Sur of 10 years as cash flows only breakeven in Year 8 (Fig.2). Ohlson & Zhang (1999) affirmed that “Casual observation suggests that the horizon rarely exceeds 15 years” yet a planning period of 15 years is appropriate as RMAG has heavy R&D expenses that generate products with lengthy development stages and greater time until profit realisation. Cash flow forecasts provided by RMAG management and Big Sur analysts for the next ten years were analysed and accounts over the 1995 to 2005 were averaged as, “cash flows can be biased as a result of managers being either too conservative or too optimistic” (Titman et al. 2011). RMAG’s forecast was biased upwards whilst Big Sur’s forecast was relatively conservative. Hence, a hybrid of the two forecasts was adopted to negate......

Words: 260 - Pages: 2

Premium Essay

Foundational 15 Chapter 1

...Unit 1 Lecture This unit explores the general business environment, in the Prologue, and the reason for the existence of managerial accounting in Chapter 1. Managers are in need of information. Managerial accounting is the vehicle that satisfies that need. Without reasonable, valid, timely information companies will always be at a disadvantage when it comes to competing in the marketplace. Managers use the provided information to carry out three major activities: planning, directing and motivating, and controlling Planning involves the identification of alternative business plans. The plans that are most beneficial to the company should be reviewed and implemented if feasible. The implementation process involves budgets. Budgets are prepared under the direction of a controller, a manager in charge of the accounting department. Typically, budgets are prepared annually. We will learn more about budgets in chapter 7. Besides analyzing business alternatives managers must direct and motivate employees. As we know, unhappy, unguided employees can be detrimental to a business. I have worked for companies where one employee would stifle other employees to the point where he had to be fired. Productivity is paramount to profitability. In addition to managing personnel, managerial must keep the company running in an orderly fashion by analyzing daily sales reports, among other reports, to ensure there are no bottlenecks in production, falling sales within certain product......

Words: 1568 - Pages: 7

Premium Essay

Case 15-1: Private Fitness Llc*

...is very easy for her to lose the control about the company records. It is very clear that Kate is telling lie to Rosemary and unfortunately she has no records to proof Kate that she is telling lie. It seems that Kate and other instructor are taking care of cashier when they have time. It is also very dangerous in terms of cash security. Only 1 person should be responsible as a cash handler and all of the money flow should be cashier’s own responsibility. Rosemary should definitely fire Kate. Although they have a friendship, Rosemary has lots of evidence in order not to trust her any more. Afterwards, she should define the tasks in the company such as, Management of The Trainers & Schedules, Cashier, Accountant and Sales & Marketing. She should be working with quality and experienced people to manage those functions and give timely feedbacks and reports to her. Since Rosemary prefers to spend her time with her family, she needs to have experienced and trustworthy managers to delegate and run the business. Although the company is not a profitable company, the efficiency and planning is very important. There are some classes which has only 1&2 attendees. Running those classes will not bring the company profit. There should be a capacity planning, profit forecasting and budgeting in order to make long and short term financial and business plans of the company. Since this needs a very different expertise on business administration, it is not logical to handle the issue to the......

Words: 531 - Pages: 3

Free Essay

Case 15-1: Pivate Fitness *Llc

...How to Be Happy Edited by Krystle C., Jack Herrick, Slackwalker, Alan J and 451 others Happiness — it's what we all strive to find and keep, even when it's as elusive as ever. Nobody is jolly and elated all the time, but some individuals are definitely more fulfilled than others. Studies reveal that happiness has little to do with materialistic needs, goods, or wants, or high achievement; it boils down to your outlook on life, the quality of your relationships, and basic amenities like good governance and community resources. Read on for more tips and tricks on how to unlock the happier you. Edit Steps 1. 1 Be optimistic. In the 1970s, researchers followed people who'd won the lottery and found that a year afterward, they were no happier than people who didn't. This hedonic adaptation[1] suggests that we each have a baseline level of happiness. No matter what happens, good or bad, the effect on our happiness is temporary, and we tend to revert to our baseline level. Some people have a higher baseline happiness level than others, and that is due in part to genetics, but it's also largely influenced by how you think.[2] * Add up all the little joyful things that happen to you during the day. For example, there was no traffic on the road, you had a very decent and scrumptious breakfast, your friend said something uproariously humorous that made you laugh, you took your dog out for a walk in the park and played with it. All of these matters added together......

Words: 1742 - Pages: 7

Premium Essay

Case 2-1 “Starbucks Keeps It Brewing in Asia”

...Assignment #1: Case 2-1 “Starbucks Keeps it Brewing in Asia” N’kengie Best Dr. Karen Mountain Consumer Behavior-MKT 510 October 16th, 2011 1. Determine and discuss the barriers facing Starbucks as they try to teach people to change their consumption habits from tea and instant coffee. China is well known for its love of tea, therefore, it is amazing how excited Starbucks is about entering the Chinese market. One executive of Starbucks stated “China is clearly a tea-drinking society-unlike Japan, which we think of as a tea-drinking society but they also drink a lot of coffee. In China, that really isn’t true (Hawkins,Del I & Mothersbaugh,David L, 2010).” There is reason for the excitement about adding Starbucks to the Chinese market. China is known for its consumer market with a population of approximately 1.3 billion, rising incomes, and increase in the outlook of global attitudes; many companies are looking to tap into the China gold mine. However, in actuality China’s coffee market is still far behind other countries in regards to coffee consumption. There was a 90 percent growth in coffee sales in China in recent years; however, the per capita consumption is still less than one kilogram per person. In the United States the per capita consumption rate of coffee is four kilograms. Tea is clearly still the number one beverage in China (Hawkins,Del I & Mothersbaugh,David L, 2010). Tea is part of China’s national heritage and is strongly......

Words: 1400 - Pages: 6

Free Essay

Essay #1 (15% of Final Grade) Instructions

...(Download). • Use that view to support or criticize one or more of the positions on technology presented in the previous weeks' readings. (Weeks 1-3) • You should complete the assignment in a minimum of 700 words but no more than 1,000 words. • Explain what technology is, using the assigned materials, not a dictionary or Wikipedia. • Explain fully one of the views on technology in Views on Technology (Download). • Use that view to support or criticize one or more of the positions on technology presented in the previous weeks' readings. (Weeks 1-3) • You should complete the assignment in a minimum of 700 words but no more than 1,000 words. • Explain what technology is, using the assigned materials, not a dictionary or Wikipedia. • Explain fully one of the views on technology in Views on Technology (Download). • Use that view to support or criticize one or more of the positions on technology presented in the previous weeks' readings. (Weeks 1-3) • You should complete the assignment in a minimum of 700 words but no more than 1,000 words. • Explain what technology is, using the assigned materials, not a dictionary or Wikipedia. • Explain fully one of the views on technology in Views on Technology (Download). • Use that view to support or criticize one or more of the positions on technology presented in the previous weeks' readings. (Weeks 1-3) • You should complete the assignment in a minimum of 700 words but no more than 1,000 words. • Explain what technology is,......

Words: 1158 - Pages: 5

Premium Essay

Rocky Mountain

...Rocky Mountain Chocolate Factory Inc.— Preparing Financial Statements – Solution Adapted a. Rocky Mountain Chocolate Factory manufactures the inventory it sells at stores it owns and sells product to franchisees. The company is a manufacturer/retailer; and thus one can predict that the balance sheet will include inventories and property and equipment on the asset side. As the company is a retailer, we would not expect a large accounts receivable balance (their sales are for cash or on credit cards, which are the same as cash from their perspective). However, their franchisees may owe substantial royalty payments which would be included as receivables as well as amounts due to Rocky Mountain for supplies and advertising. The liability side of the balance sheet likely includes a number of current liabilities (for payments due to suppliers and employees) and long-term debt if the company has borrowed or uses capital leases to finance store purchases. b. See the solutions toward the end of the document. General journal entries are NOT covered or used in the course – shown here FYI. 1. Dr. Inventories (CurA) 7,500,000 Cr. Accounts payable (CurL) 7,500,000 To record purchase of inventory on account 2. Dr. Inventories (CurA) 6,000,000 Cr. Accrued salaries and wages (CurL) 6,000,000 To record factory wages incurred 3. Dr. Cash and cash equivalents......

Words: 1634 - Pages: 7

Premium Essay

Rocky

...Persuasive Memo on Fitness Center at Rocky Mountain Mutual To: Mr. Zachary Evans, Vice President of Operations                                               From: Joseph Mirola JM                                                                                           Date: November 13, 2011                                                                                Subject: Company Fitness Center makes a profit                                                                                                                             Thank you for allowing me to explain to you the benefits of having the company fitness center. Company reports indicate that the Fitness Center has led to an overall decrease in employee absenteeism, reduction in employee medical costs, and an increase in productivity.                                                                                                                                                                      Employees who have taken advantage of the Fitness Center miss half the amount of work days than employees who do not use the fitness center. This claim can be substantiated by the following data: * Employees who used the Company Fitness Center missed on average 6 days of work in a year. * Employees who did not use the fitness center missed an average of 12 days of work per year.   There are three category of medical costs effected by use of the Fitness Center: * Frequent users (10% of all employees,...

Words: 558 - Pages: 3

Premium Essay

Case 15-1: Rocky Plains Brewing Ltd.

...Case 15-1: Rocky Plains Brewing Ltd. Situation Analysis/Size-up • Mike Pearson, packaging materials manager for Rocky Plains Brewery Ltd., notified Gerald Gilpin, owner and president of Gilpin Printing Inc., that Rocky Plains will be terminating its contract and expected a contractual rebate of $690,000 – Gerald refused and demanded $4.4 million wire transfer in order to continue supply • Contract expires on May 30 – decision has been made to test the market for better pricing, materials, and print methods – major concern for ongoing financial problems at Gilpin • RFP for a 3 year contract were sent – analysis for proposals included financial stability, protection for raw materials price increase, currency and foreign exchange exposure, freight costs, print run sizes, and label cutting options – narrowed two suppliers: Gilpin and Stiles Printing • Second proposal from Gilpin was presented and confirmed that he intended to sell the business • Long-term relationship with Gilpin has lead to concern that losing the contract may push the company into bankruptcy – under current circumstances, recommended to award the label supply contract to Stiles based on better pricing and financial stability – Gilpin threatening to cut supply (some sort of blackmail) Problem Statement • How to resolve supply problem and avoid production interruption due to supplier withholding shipments Analysis • S – One of the most recognized beer brands in the US – producing ......

Words: 839 - Pages: 4

Premium Essay

Foundational 15 Chapter 1

...Chapter 1 The Foundational 15 Martinez Company’s relevant range of Production is 7,500 to 12,500 units. When it produces and sells 10,000 units, its unit costs are as follows: | AmountPer Unit | Direct Materials | $ 6.00 | Direct Labor | 3.50 | Variable Manufacturing Overhead | 1.50 | Fixed Manufacturing Overhead | 4.00 | Fixed Selling Expenses | 3.00 | Fixed Administrative Expense | 2.00 | Sales Commissions | 1.00 | Variable Administration Expense | 0.50 | Required: 1. For financial accounting purposes, what is the total amount of product costs incurred to make 10,000 units? Direct Materials $6.00 Direct Labor $3.50 Variable Manuf OH $1.50 Fixed Manuf OH $4.00 $15.00/Unit 2. For financial accounting purposes, what is the total amount of period costs incurred to sell 10,000 units? Fixed Selling Exp $3.00 Fixed Admin Exp $2.00 Sales Commissions $1.00 Variable Admin Exp $0.50 $6.50/unit 3. If 8,000 units are sold, what is the variable cost per unit sold? Direct Materials $6.00 Direct Labor $3.50 VariableManuf OH $1.50 Sales Commissions $1.00 Variable Admin Exp $0.50 $12.50 4. If 12,500 units are sold, what is the variable cost per unit sold? Direct Materials $6.00 Direct Labor $3.50 VariableManuf OH $1.50 Sales Commissions $1.00 Variable Admin Exp $0.50 $12.50 5. If 8,000 units are sold, what is the total amount of variable......

Words: 643 - Pages: 3

Premium Essay

Sun Brewing

...rP os t 9-207-039 REV: JUNE 28, 2010 BELÉN VILLALONGA RAPHAEL AMIT SUN Brewing (B) op yo In late July 2004, Nand Khemka and his sons Shiv and Uday assembled in Paris to discuss their holdings in SUN Interbrew Limited (SIL), a leading Russian beer producer. SIL was a joint venture formed in April 1999 between their beer company SUN Brewing and Belgian beer giant Interbrew.1 SUN Brewing was part of SUN Group (SUN), an international commercial and investment group owned by the Khemka family. SUN’s shareholders were firm believers in the long-term growth potential of the Russian beer market and in the value creation potential of SIL. The family was extremely pleased with the recent success of the management team led by Joe Strella and felt they shared a common vision with the shareholders and management of Interbrew. However, the last few months had led SUN to consider carefully the situation in which they found themselves. First, the Alfa Group, a large financial and industrial conglomerate in Russia, had accumulated 15.8% of the voting stock in SIL, thereby becoming the third largest voting shareholder in the company.2 Alfa had approached both Interbrew and SUN separately and had expressed their desire to buy out SUN’s interest and to become a partner with Interbrew in the future growth of the business. SUN had also been approached by Interbrew about buying SUN’s stake. tC Although the family was keen to remain a long-term shareholder in the business, the......

Words: 7406 - Pages: 30