Name Lachandra Ash MBA 500 Spring 2023 Course Exam Due 6/3/23 Saturday 1. ______ (25 points) 2. ______ (25 points) 3. ______ (25 points) 4. ______ (25 points) 5. ______ (25 points) 6. ______ (25 points) 7. ______ (25 points) 8. ______ (25 points) Total ______ (200 points) 1. I will only grade what is submitted on the page with the question, so you are limited to slightly less than one full page for the answers to all parts of the question. In other words, brief, precise, quality answers are required. Please get to the point quickly with quality. 3. Answers can be provided in bullet point form if you like. 4. State your answers clearly and with supporting comments; do not take a position, make a statement or generalization without supporting comments that clearly support your position. 5. Answers should be typed, using an Arial or Times Roman size 12 font. Answers should be double spaced with one each margins on all sides. I have neither received nor provided help on this exam or used answers that I found on the internet or from other sources. Name ___________________________________ Date 05/29/2023 1. (25 points) From the Chapter 1 opening vignette titled “Inside the Zoom Boom”, answer the following three critical thinking questions: 1. How did the COVID-19 pandemic contribute to Zoom’s success? After almost a decade, when the COVID-19 epidemic hit, Zoom saw an unexpected rise in demand and became generally regarded as a market leader. Isolation and social withdrawal during Covid-19 in 2020 boosted interest in video conferencing services like Zoom and led to a huge influx of new users. 2. What value and benefits does Zoom offer? What, if any, are the disadvantages? Zoom offers a high-quality, user-friendly video conferencing solution with cutting-edge capabilities that would function even on sluggish internet connections. Zoom is designed as a top-notch product that satisfies buyers by meeting their expectations and then some. Zoom helps people to communicate in isolation. Zoom provides video and audio abilities during the conference. 3. What are the advantages of a freemium pricing model? Disadvantages? Since it takes money to recruit new customers and to give free access, freemium pricing may be difficult for businesses, particularly when consumers cancel after a trial period. Zoom, on the other hand, has seen record profitability and has attracted notable clientele. The advantages of Freemium pricing is the free pricing and a free trial. The disadvantages is consumers having to pay for an account, and since it takes money to recruit new customers and to give free access, freemium pricing may be difficult for businesses, particularly when consumers cancel after a trial period. 2. (25 points) From the Chapter 3 Technology and the Economy vignette titled “Data Privacy Concerns Take the World by Storm”, answer the following three critical thinking questions: 1. What type of international barriers are companies like Facebook and Google facing in the realm of user privacy? The rule, known as the General Data Protection Regulation (GDPR), limits how companies may use personal information obtained from customers and gives them the right to access such information. It also mandates that businesses disclose to customers the purposes for which they may use their personal information. Businesses who violate this rule might be fined as much as $1 billion. 2. Describe the global implications of the GDPR law. Companies all across the world are feeling the effects of GDPR, not only in Europe, but also in Brazil, Japan, and South Korea. By include data protection in trade accords, the EU is pressuring other nations to enact stricter online privacy legislation. Companies outside of the EU that handle the personal information of EU residents are also required to comply with the rule. 3. How might tougher regulations make it harder for users in Europe to utilize online services? By including data protection in trade accords, the EU is pressuring other nations to enact stricter online privacy legislation. Companies outside of the EU that handle the personal information of EU residents are also required to comply with the rule. Data privacy is becoming an international concern as a result of these mandates. 3. (25 points) From the Chapter 6 Responding Business Challenges vignette titled “Potbelly Sandwiched in a Crowded Market”, answer the following three critical thinking questions: 1. Describe how Potbelly, under Johnson’s leadership, is engaging in the four management functions. Johnson may have used human resources function to recruit executive sous chef Ryan LaRoche during the restaurant's management shakeup to advise on the development and refinement of the menu. Johnson used operation functions to reduce the number of items on the menu and to gain more control over the quality of the items. Johnson may have used marketing functions to advertise his renamed sandwiches to advertise them and make them the more popular sandwiches on the menu. Finance functions was used to fund the money needed for the food items. The employees used marketing functions to offer consumers extra food items to purchase with their sandwiches. IT functions were used to assist in advertise the sandwiches and other food and beverage items. IT functions may manage the point-of-sales systems and other IT devices within the restaurant. 2. Do you think Johnson’s plans are more operational, tactical, strategic, or a combination? Explain your reasoning. I believe Johnson’s plan was a combination of operational and strategical because he decided to rename the sandwiches to make them stick out and decrease the number of items on the menu to gain more control over the quality of the items. Johnson hired the chef to assist in the development and improvement of menu items. 3. As Johnson works to increase sales and revamp the company, do you think an autocratic, democratic, or free-rein leadership style would be most effective? Explain your reasoning. Free-rein leadership style would be most effective because the leaders can be hands-off and allow the employees to make decisions. The managers can create and set goals and objectives while the employees do what they need to do to accomplish the goals and objectives. 4. (25 points) From the Chapter 8 Responding to Business Challenges vignette titled “Target Aims for Bullseye with Supply Chain Improvements”, answer the following three critical thinking questions: 1. Describe the many ways Target is trying to improve its supply chain in order to compete. Target spent $5 billion over two years strengthening its supply chain and technological infrastructure, including investing in same-day delivery and increasing delivery time standards for suppliers. The retailer then tried out a new distribution plan to speed up the time it took to refill shelves and get products out to consumers. 2. Why might changes to its inventory management improve Target’s distribution? Before implementing its new distribution approach, Target's "replenish cycle" would take days, but now it just takes hours. Target has cut down on inventory at its smaller shops in densely populated regions. Target avoids unnecessary waste by sending just the quantity of goods that will be sold in each location. To minimize waste and ensure that retailers always have what they need on hand, this kind of inventory management is more akin to the just-in-time model. 3. What are some of the risks of adopting a just-in-time approach? What are some ways that blockchain increases transparency in the supply chain? Some of the risks of adopting a just-in-time approach is supplier dependency, lacking stock, and using more time to plan than required. Blockchain increases transparency in supply chains by eliminating the need for intermediaries in business transactions, blockchain improves the efficiency of supply networks throughout the world. It also makes it easier for different parties to work together on data in a fluid manner by increasing the integration of financial and logistical services. 5. (25 points) From the Chapter 11 Responding to Business Challenges vignette titled “Kraft Heinz Plays Ketchup”, answer the following three critical thinking questions: 1. How are evolving consumer perceptions changing Heinz mayonnaise products? Consumers are becoming more health conscious as a result of rising food trends. Mayonnaise's high fat content has contributed to its falling popularity. New manufacturers have emerged to meet the need for healthier alternatives to conventional mayonnaise by replacing unhealthy oils with more nutritious ones, such as avocado oil. To meet this demand, Kraft Heinz has introduced new products and tastes, such as roasted garlic and spicy chipotle. 2. Describe how Heinz used consumer interaction as a form of marketing research. What type of data did it collect, primary or secondary? Advertisements for new Kraft Heinz tastes like Mayochup (a blend of mayonnaise and ketchup) have been funded by the company. Consumers were polled about whether or not they wanted Mayochup on shop shelves. Primary data was collected from the consumers. 3. What type of segmentation variables is Heinz using for its Mayochup advertising? Once Heinz made the choice to launch, it began advertising in a wide array of sources, including gourmet, "top-tier lifestyle," social, and big media. 6. (25 points) From the Chapter 14 Technology and the Economy vignette titled “Artificial Intelligence Transforms Accounting Intelligence”, answer the following three critical thinking questions: 1. Describe some of the advantages of AI to the accounting industry. The use of AI will lead to greater efficiency gains, fewer mistakes, and easier compliance. since as a result, accountants will have more time for higher-value work since mundane chores like data entry may be taken care of by AI. Using AI might boost morale by allowing accountants to devote more time to projects that interest them. The Big Four accounting companies are particularly bad at keeping employees. Employees are worn out by the sheer volume of work and the long hours required of them. Accountants could experience less burnout if part of their tasks were automated by AI. 2. GL.ai, the AI system adopted by PricewaterhouseCoopers, helps identify anomalies in its clients’ general ledger systems. Why do you think this is important? The importance of identifying anomalies is to analyze the data for fraudulent type of activities that may be accruing within the accounting data. A business can reduce their financial losses by utilizing AI. 3. If AI can take over basic accounting tasks such as data entry, do you think this will improve the services accountants offer to their customers? Why or why not? AI will lead to a competitive advantage, and it will boost their company's productivity for customers. I believe the AI will improve the services that accountants offer to their consumers. 7. (25 points) From the Chapter 15 Technology and the Economy vignette titled “Digging into the Digital Wallet”, answer the following three critical thinking questions: 1. Do you think digital wallets will revolutionize electronic banking and in-store transactions? I believe digital wallets will revolutionize electronic banking and in-store transactions because the consumers will tap their phone on the point-of-sale system, and their payment will be automatically removed from their bank. The digital wallets is easier and faster for consumers to buy their products from stores, restaurants, etc. The digital wallets can be used in-store, web shopping, and in-app shopping. The merchants must have the correct card readers to accept the digital type of payments. 2. How do you think digital wallets will affect traditional banks? Traditional banks may close and go out of service because their number of consumers will reduce because of the digital wallets. Banks make money off of the interest of savings and loan accounts. If the banks lose consumers they will lose profits, and they won’t have enough money to operate the banks. 3. What are some of the risks of digital wallets? What can be done to mitigate these risks? Some of the risk of digital wallets is fraud and hackers. The merchants can use security software to prevent frauds and hackers from taking their money. 8. (25 points) For many months your prospective customer interested in a timekeeping/payroll system has been analyzing your new software product that meets the requirements for a timekeeping/payroll system. They have analyzed the assumptions and design of the $1,000,000 software product you are selling. So far, you have knocked yourself out to try to make this sale. If the sale goes through, your company will realize an unexpected revenue gain that had not been anticipated. This will help it meet its income target for the year. As it is now the last quarter of the year and the company does not see other opportunities that will enable it to reach the income target. Also, this will enable you to reach your yearly sales quota which will result in a nice bonus. On the other hand, loss of this sale may mean you start looking for other employment. The finance, accounting, human resource and IT put together by the client have reviewed the specifications and finally recommended purchase of the software. However, as you looked over their shoulders and helped them through the evaluation process, you began to realize that their legacy information systems that would need to be integrated with the new system were not a good fit for the software and will require additional customization. At the very least, the customizing will add $250,000 to the redesign, implementation and training cost. The team is not aware of the issue, and you know that the necessary $250,000 is not in the budget. What do you do? Why? I would tell the team about the legacy information systems that I discovered, and it will need to be integrated with the new system. I believe I need to make this ethical decision because I don’t want to make an unethical decision that could cause fines, being sued in court, being fired from a job, etc. It is best to be ethical within a business from the first day I began working at a business. The team and I can try and discover various strategies to obtain the $250,000, including possibility of obtaining a bank loan. I would mention to the team that we can possibly develop other software products that can possibly sale quickly or conduct a fundraiser to gain the $250,000 for the customizing. Another idea is reducing the cost of the software to obtain money from the client. The client must be informed about the issue and the client can make their own decision about purchasing the software for a reduce price. The business would obtain money versus obtaining no money. References Ferrell, O. C., Hirt, G. A., & Ferrell, L. (2023). Business foundations a changing world. New York, Ny Mcgraw-Hill Education.
