U-right
News Commentary Worksheet
A. News Summary
Prepare the news summary with the help of the following guiding questions.
1. What kind of crisis did U-right face?
2. What were the causes of this crisis?
3. Are there any possible ways to solve
the crisis?
Summary
Where should U-right go? /News Commentary worksheet/ 08-09
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B. Economic Analysis：Where should U-right go?
1.
Which type of business ownership does U-right belong to?
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2. One of the U-right’s creditors, Deutsche Bank, has applied to wind-up the company. From the
viewpoint of the shareholders of the company, what are the advantages of the type of business
ownership mentioned in Q1?
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3.
According to the news, what are the possible factors accounting for the liquidation of U-right?
Please explain in terms of economic concepts.
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Where should U-right go? /News Commentary worksheet/ 08-09
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4. U-right is now waiting for the potential buyers. In your opinion, what kind of companies will
be interested in taking over U-right? Which type of integrations do they belong to? What are
the possible motives and concerns?
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C.
Issue Inquiry
5. If you were a general manager, and your company has already taken over U-right. Can you
think of some economical strategies which can turn U-right to become more profitable?
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Where should U-right go? /News Commentary worksheet/ 08-09
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6. According to the article, more and more businesses are likely to face liquidation during the
ongoing global financial tsunami. What sectors will be seriously affected during the economic
downturn? Give one example with explanation.
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7. What are the crucial factors that investors need to concern if they decide to start a business
during recession? What kinds of businesses are likely to succeed in economic downturn? Please
explain.
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Where should U-right go? /News Commentary worksheet/ 08-09
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Graphic Organizer (1)：
 Q.1, provide
Inquiry:
1. How to make it more profitable?
2. How does economic recession affect the
retail industry? Which business will gain?
Which business will suffer a loss?
economic
strategies
from business
prospective.
 Q.2, from
U-Right case
generalize the
situation of
the whole
retail sector.
U-right
Liquidation
What？
Business
Ownership
Why?
How?
Diseconomies of
Scales/ Cost
Integration
Which business
Financial
How can U-Right
ownership does
diseconomies of
solve the crisis by
U-right belong to?
scale.
different types of
Advantages of this
High rent, fixed
integration?
type of business
factors, variable
Concerns and
ownership under
factors, fixed cost,
Motives for
this crisis.
variable cost.
different types of
Effects on
Focus Area
Related
topics
Related
questions
integration.
shareholders and
employees
Where should U-right go? /News Commentary worksheet/ 08-09
Page 5
Graphic Organizer (2)：
Inquiry:
U-right
Liquidation
What？
Why?
How?
Focus Area
Related
topics
.
Related
questions
Where should U-right go? /News Commentary worksheet/ 08-09
Page 6