2. Probing assumptions What are you assuming? How did you choose those assumptions? What could we assume instead? 3.
(INTRO) One of key accounting activities this WorldCom case points out is how WorldCom capitalized leased lines which brought little or no value to the organization, but were accounted as capitalized assets, and the impact this can have on external users. “To maintain and broaden public confidence, members should perform all responsibilities with highest sense of integrity.” (AICPA.com) By capitalizing the costs of these leased lines instead of it would have shown a significantly lower net value of the company. It would have negatively affected cash flows and all the ratios. This activity certainly discredits the profession. It does not offer the fullest disclosure, objectivity, and transparency.
Scarcity cost: In making managerial decisions, we must first consider that our resources are limited. We therefore have to choose between options; we cannot do them all. Sometimes two different investments look good, but because resources are scarce, we cannot do both. Opportunity cost: Whenever we make one decision, we are giving up the next best option. We need to consider the missed benefits of the option not chosen as part of the decision-making process.
For this, we had a few sessions of two theorists that we had learnt in detail about them. One of them was Michael Argyle, whose theory began of ‘the communication cycle’. This theory included 6 stages that were: ideas occur, message coded, message sent, message received, message decoded and lastly message understood. During the delivery of the session, we were put into groups to present to the rest of the class the last 3 stages of this cycle. After presenting, we worked on our strengths and
In his article, Carr stated that as it is the case of infrastructure, It become a very rare recently for IT to generate a competitive advantage. Moreover, Carr mentioned that scarcity what makes a resource truly strategic not ubiquity. According to Carr, “When a resource becomes essential to competition but inconsequential to strategy, the risks it creates become more important than the advantages it provides.” His point of discussion is the difference between the infrastructure technology and proprietary technology. Infrastructure technology lost its competitive advantage for being shared and available to everyone while proprietary technology derive the company a strategic value for being unique and owned by the company which differentiate it from others. 3- According to Carr, can a company derive strategic value from investing in IT?
However single sourcing can be devastating for a firm, worst scenario the firm would not receive any products. The supplier could also lack the capacity to meet the demand from the buying firm regarding such matters as quantity and quality. Multiple sourcing is more common when the firm seeks to enhance competition and flexibility. The cost will be reduced because of competition and the risk with not getting any products will be reduced. Also the buying firm will get more
Although confrontation of the aforementioned issues is of paramount importance, the most critical obstacle encountered by today’s managers, is their ability to effectively make decisions that allow the organizations they represent to adapt quickly to change. Without a fast-response to change, companies risk several compelling reasons to “adapt or die,” including a loss of market share to both foreign and domestic competitors; organizational atrophy, occurring as a result of stagnant lines of vertical communication mired in layers of bureaucracy; and missed global opportunities in larger, emerging free markets
In most cases I would also agree that a high turnover rate can be less attractive to employees. “In the navigator image, control is still seen as at the heart of management action, although a variety of factors external to managers mean that while they may achieve some intended change outcomes, others will occur over which they have little control” (Gib Akin, 2009) . So Gunter wanted to be the navigator in this situation so that he can take control of the turnovers. No matter the changes Gunter tried to make he was unable to lower turnover rates. Gunter offer one of the top training available to employees and they all would leave to go on to bigger and better position and they took the training and knowledge of the hospitality system from Gunter’s hospitality organization.
Does the essay delve into the subtle nuances and complexities of the varied interpretations of the theories and the principles, and demonstrate their relevance to the issues at stake? ANALYSIS and ARGUMENTATION - Does the essay contain elements arising from the exercise of one own’s judgment and insight? Does the essay show evidence of careful and thoughtful interpretation, and critical evaluation, of competing claims and arguments? Does the essay provide analysis – not just description? Description reports what happened; analysis explores how and why.
Assumptions should play no part in critical thinking but unfortunately they do, and often. I know as humans we all make snap judgments, but the idea is to push aside our assumptions and judgments when we think critically. Thinking critically is a skill that you either have or you don’t, the ones who have it will ultimately be the ones to thrive in their respective fields. Though it may be difficult to avoid making assumptions, as professionals we have no choice. We can keep our assumptions to ourselves but unless we consider all aspects of the situation we are not thinking critically.