UNIVERSITY OF THE SOUTHERN CARIBBEAN

Andrews University Extension & Affiliation Programme P.O. Box 175, Port of Spain Trinidad W.I.

CHAPTER 1 ASSIGNMENTS

An Assignment Prepared in Partial Fulfillment For the Requirements of the Course PRINCIPLES OF MANAGEMENT

DR. R. RAMELLA

By

NATASHA SIU-JAGDEO, ID# 2010010010

SEPTEMBER 27, 2011

Approval____________________________

Exercise 1-17 Value chain and classification of costs, pharmaceutical company.

Costs

Value chain and classification

a. Cost of redesigning blister packs to make drug containers more tamperproof

Design of products, service or processes

b. Cost of video sent to doctors to promote sales of a new drug c. Cost of a toll-free telephone line used for customer inquires about drug usage, side effects of drugs, and so on d. Equipment purchased to conduct experiments on drugs yet to be approved by the government e. Payment to actors for a television infomercial promoting a new hair-growth product for balding men f. Labor costs of workers in the packaging area of a production facility

Marketing Customer Service

Research & Development

Marketing

Production Marketing Distribution

g. Bonus paid to a salesperson for exceeding a monthly sales quota h. Cost of Federal Express courier service to deliver drugs to hospital

Exercise 1-22 Five-step decision-making process, service firm.

Decision

Stage of Five-step decision-making process

1. Mr. Brite calls Home Depot to ask the price of paint sprayers 2. Mr. Brite discusses with his employees the possibility of growing revenues of the firm 3. One of Mr. Brites project managers suggests that using paint sprayers instead of hard painting will increase productivity and thus revenues 4. The workers who are not familiar with paint sprayers take more time to finish a job than they did when painting by hand 5. Mr. Brite compares the expected cost of buying sprayers to the expected cost of hiring more workers who paint by hand, and estimates profits from both alternatives 6. The project scheduling manager confirms that demand for house painting services has increased 7. Mr. Brite decides to buy the paint sprayers rather than hire additional painters

Obtain information Identify the problem and uncertainties Make decision by choosing among alternatives Implement the decision, evaluate performance, and learn Make predictions about the future

Obtain information

Make decisions by choosing among alternatives

Exercise 1-27 1. Role of controller/ chief financial officer.

Activity

Responsibility of Controller or CFO

a. Managing Accounts Payable b. Communicating with investors c. Strategic review of different lines of businesses

Controller CFO CFO Controller CFO CFO Controller Controller

d. Budgeting funds for plant upgrade e. Managing the companys short-term investments f. Negotiating fees with auditors

g. Assessing profitability of various products h. Evaluating the costs and benefits of a new product design

2. The training and experiences that would most benefit George Perez as CFO, is mainly his direct interaction with the higher level of the company, such as the senior management, which includes the president (COO), the CEO and the Board of Directors. He would also have more interaction with the external financial community. The experience he will gain from his interaction at this level will help him to gain the knowledge required to be a more efficient and knowledgeable CFO. Other areas that may be useful George Perez is his participation in strategy discussions with senior management , by reporting and interpreting relevant data, to enable managers to make better informed decisions as they implement their strategies. He will also be involved in preparing the external investor communications and press releases under the guidance of the current CFO. He can also improve his knowledge by accessing training or expanding his knowledge in the areas of negotiations and conflict resolutions and in areas investments and corporate finance.