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Visit a hospitality or travel company. Ask some questions about its products. For example, at a restaurant you may ask about the hours it is open and about menu items. You may state you are looking for a good steak restaurant and ask about its steaks. At a hotel you may ask about its rooms or restaurants. The idea is to have enough dialogue with its employees to be able to judge the customer orientation of the employees. Write your findings supporting how the employees demonstrated they had a customer orientation and ideas you have on how they could have been more customer oriented.

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The text below describes a few facts about the fictional worldwide e-pads industry. The description is followed by a few questions about the industry. Please assume that each of the following statements about the industry is true and please answer the questions using only the information contained in the text description below. Suppose that the year is 2030 and a new type of consumer device, the e-pad (electronic pad) is on the market. More than 100 million e-pads are sold each year. The manufacturing industry contains some manufacturers that have been able to report large profits (e.g., Apple) and some manufacturers (e.g., HP) that have reported low profits. Some additional relevant facts about the manufacturing industry include: 1. the cost of a typical factory (which assembles 1 million e-pads per year) is about US$10,000; 2. there is a fairly small number of relatively large retailers for e-pads: 3. there are many suppliers for most of the components, but only two suppliers for the microchips that are the key components to the firm’s product: 4. a large number of firms that had historically limited their activities to supplying e-pad components for sale to manufacturers like Apple & HP have entered into the worldwide branded e-pad manufacturing industry: 5. although the value of e-pads could be increased by R&D, few firms have distinguished their e- pads this way; by contrast, the value of alternative products, such as the iPhone, has risen substantially over recent years thanks to successful R&D, while the prices of such alternatives have been declining.

Question:
The threat of new entrants in this industry is: Low High
The bargaining power of buyers in this industry is: Low
O High D Question
The bargaining power of suppliers in this industry is:
O Low O High
The intensity of rivalry among competitors in this industry is:
Low O High
The threat of substitutes in this industry is: Low O High

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Records of the Genesis Corporation reveal the following information about inventory during the year.

The company’s accountant is trying to decide whether to determine Cost of Goods Sold using the perpetual inventory system (calculating Cost of Goods Sold after every sale) or the periodic inventory system (calculating Cost of Goods Sold at the end of the year only). Assume the company uses the LIFO method for inventory costing.

Required Using the information given above, answer each of the following questions.

A. How many units have been sold? How many units remain in ending inventory?

B. What is Cost of Goods Sold using the perpetual method? The periodic method? What is the cost of ending inventory for each method?

C. Is there a difference in net income for each method? Why? (Assume for purposes of this question that Sales Revenue is 85,000 and all other expenses are 5,600.)

D. What are the advantages of using perpetual? Using periodic?

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CASE 8.1-The Trade Show

Judy had just accepted a position as a sales representative with NewLine Papers, a manufacturer of high-quality specialty papers for businesses that use direct mail to promote their products and services. Typically, such companies must use paper that is attractive to look at and hold that absorbs ink quickly because of high-speed printing, and that can stand up to the rigors of automatic folding equipment. For Judy to learn more about the business and to acquire good leads, her sales manager has sent her to the U.S. Postal Forum (USPF) annual meeting in Las Vegas. Judy decided that for this trip to pay off in terms of generating solid leads, she needed to engage in careful planning. A quick check of USPF’s website allowed her to compile a shortlist of attendees who might be interested in NewLine’s latest product. About a week before the trade show, she phoned a couple of them to arrange an appointment. They willingly agreed, so she flew to Las Vegas in the hope that she could snag an order, not just a couple of good leads. That would surely impress her manager! After checking in at the convention hotel, Judy called Ned Harris, her first appointment for the next morning. Ned wasn’t in, but she left a message indicating that she could meet him just off the lobby at 10:00 a.m. Her second appointment, Anita Scoby, answered on the second ring. She and Judy agreed to meet tomorrow afternoon at 2:30 following the keynote speech by the head of the U.S. Environmental Protection Agency. Everything was all set. Ned arrived for their meeting the next morning a couple of minutes late, explaining that he was not a morning person and needed a second cup of coffee. They moved to the hotel’s coffee bar and settled at a small table. Judy brightened when Ned reported that his company had done business with NewLine some years before. Immediately, Judy pulled out a couple of samples from her briefcase and launched into her presentation of the outstanding features of the new product. Ned listened attentively, sipping his coffee, and sitting with arms folded. When Judy finished her spiel, she asked if he had any questions. He didn’t. She then asked whether Ned’s company would be interested in placing a trial order. He replied, rather curtly, that he didn’t know and would have to get back to her on that. He added that he was late for another meeting. With that he picked up his newspaper and left, leaving Judy to reflect on what had happened. Her meeting that afternoon with Anita Scoby was even briefer. Before Judy could begin to describe the samples, Anita cut her off, explaining that she had no authority to engage in such discussions. She added that while she was interested in Judy’s product, her role was in sales for her company and that she was attending the trade show merely to network with other clients. She wished Judy luck and promised to pass along Judy’s information to more appropriate people at her firm. As Judy flew home the next morning, she wondered what she had done wrong. She had researched attendees of the trade show and had obtained appointments, but she was returning home with no orders and worse, no real leads. Where do you think Judy went wrong? What would she need to do to become a “master prospector?” If you were sent to the trade show by your manager, what would you have done? What would have been your objectives? Which tactics would you have employed to fulfill those objectives?

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