Assignment 3: Long-Term Investment Decisions
Due Week 9 and worth 300 points

 

Assume that the low-calorie frozen, microwavable food company from Assignments 1 and 2 wants to expand and has to make some long-term capital budgeting decisions. The company is currently facing increases in the costs of major ingredients.

 

Use the Internet and Strayer databases to research government policies and regulation.

 

Write a six to eight (6-8) page paper in which you:

 

1. Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products response to a change in price less elastic. Provide a rationale for your response.
2. Examine the major effects that government policies have on production and employment. Predict the potential effects that government policies could have on your company.
3. Determine whether or not government regulation to ensure fairness in the low-calorie, frozen microwavable food industry is needed. Cite the major reasons for government involvement in a market economy. Provide two (2) examples of government involvement in a similar market economy to support your response.
4. Examine the major complexities that would arise under expansion via capital projects. Propose key actions that the company could take in order to prevent or address these complexities.
5. Suggest the substantive manner in which the company could create a convergence between the interests of stockholders and managers. Indicate the most likely impact to profitability of such a convergence. Provide two (2) examples of instances that support your response.
6. Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.

 

Your assignment must follow these formatting requirements:

 

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
• Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

 

The specific course learning outcomes associated with this assignment are:

 

• Propose how differences in demand and elasticity lead managers to develop various pricing strategies.
• Analyze the economic impact of contracting, governance and organizational form within organizations.
• Use technology and information resources to research issues in managerial economics and globalization.
• Write clearly and concisely about managerial economics and globalization using proper writing mechanics.

 

Click here to view the grading rubric.

 

 

 

All answers must be citied. The answers will be ran thru turnitin.com for plagiarism.

 

The answers only have to be a paragraph long.

 

Week 4

1a.When conducting a cost-volume profit analysis, determine where the most challenges for accountants occur. Recommend action to overcome the challenge(s). 

1b.Create a brief scenario in which an accountant would be asked to conduct a cost-volume profit analysis and provide a supporting rationale. 

2a.In a globalized economy with many business complexities, assess how a business may be impacted by these complexities and how consequences can be minimized. 

2b.From the previous discussion, recommend how an accountant could measure the types of complexity you identified for a specific business or industry and how the measure will provide insight to business performance. 

Week 5

1a.From the first e-Activity, evaluate the opportunity costs for Damien Chrysler for failure to accept a proposal from within to manufacture a vehicle for the Indian market and suggest ways that opportunity cost can be minimized.  

 

1b.Analyze how excess capacity and incremental cost analysis can benefit management decisions to accept or reject projects and how this process can impact the financial performance of the business

2a.From the second e-Activity, assess the potential problems a multinational firm could encounter using negotiated transfer pricing instead of market-based transfer pricing and make a recommendation to the firm on how to avoid these problems.

2b.Evaluate the accounting ethics of creating, initiating, or adjusting transactions to repatriate excess cash for multinational firms in transfer pricing decisions and suggest a way that this practice may be implemented.

 

Analyze, score and report on the Nike’s corporate governance structure.

Compare with Puma and Adidas corporate governance structure to establish comparisons.

2 pages and a work cited page.

You can find the corporate governance structure via Nike.com/Puma.com/Adidas.com

 

 

In this Discussion, you will Review review Henri Fayol’s revised management theory (POLC) and apply it to the management where you work.

 

Read about the POLC model based on Henri Fayol’s theories in the PDF file here and then respond to the following:

 

Henri Fayol originally pioneered management theory at the turn of the last century. He identified 5

 

functions of Management: Planning, Organizing, Commanding, Coordinating, and Controlling which

 

Bateman and Snell in their text Management: Leading & Collaborating in the Competitive World,

 

revised to 4 functions: Planning, Organizing Leading and Controlling (Bates & Snell, 2009).

 

Fayol was an engineer in France and along with delineating these management functions, he also

 

developed 14 principles of management. Bisoux (2004) states that Fayol thought these principles

 

should be applied with flexibility (as cited in Bates & Snell 2009, p.44):

 

As we will use these functions as originally developed by Fayol and revised by Bates and Snell, we

 

will look at what we term with the acronym: The POLC Model:

 

 

 

Planning:

 

 

Determine goals: Make sure all stakeholders are considered and make the process dynamicproviding

 

strategic value considering the external environment

 

Organizing: This involves coordinating all the resources (Human Resources as well as corporate

 

 

structure and chain of command), internal and external, to achieve the organizations’ goals.

 

Leading: Motivating others on a daily basis to achieve their goals and company goals as well as

 

 

motivating them towards strategic vision of the future of the company.

 

Controlling: This function allows for management of resources and monitoring by means of policies

 

 

and procedures as well as quality control, financial management, and audits.

 

Reference

 

Bateman, T. S. & Snell, S. A. (2009). Management: Leading & collaborating in a competitive world

 

 

(8th ed.). New York, NY: McGraw Hill Irwin.

 

 

 

 

Moss Exports is having a bad year. Net income is only $60,000. Also, two important overseas customers are falling behind in their payments to Moss, and Moss’s accounts receivable are ballooning. The company desperately needs a loan. The Moss Exports Board of Directors is considering ways to put the best face on the company’s financial statements. Moss’s bank closely examines cash flow from operating activities. Daniel Peavey, Moss’s controller, suggests reclassifying the receivables from the slow-paying clients as long-term. He explains to the board that removing the $80,000 increase in accounts receivable from current assets will increase net cash provided by operations. This approach may help Moss get the loan.

Requirements
1. Using only the amounts given, compute net cash provided by operations, both without and with the reclassification of the receivables. Which reporting makes Moss look better?
2. Under what condition would the reclassification of the receivables be ethical? Unethical?