Dan Prete and Todd Strupek Dakota Case 1. Why was Dakota’s existing pricing system inadequate for its current operating environment? The pricing system was inadequate because it only saw profits on large orders. There was a real drop in profits if there was a bunch of smaller orders by clients. There was also bad costing in terms of individual customers and also for the new services provided.
(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.
The errors that result from errors in translation are the cause of many problems in invoicing and making payments. These problems consume people's time and slow down cash flow. All these expenses simply eat away at profit margins that are already thin enough. In addition to the operating problems caused by using different part numbers for the same item, another consequence is a lack of accuracy and clarity in sales history data. Part number translation errors result in sales of some items being undercounted and sales of other items being overcounted.
Pocketing the difference between price tag, ongoing promotion and cash sales. * Involuntary rotation might not be good for the moral of the employees, lowering their loyalty and increasing their turnover * Lack of charismatic leadership: * Branch managers have no close relationship with their corporate superiors. * Performance evaluation is based on lowering theft percentage, not personal goals to achieve. Those factors result in poor perceived organizational support (OB, p. 110). This perception has a direct effect on employees’ engagement and organizational citizenship behavior towards the goals of the company.
There are many reasons as to why this should be the case. If electronic media was free of charge, then there would be no motivation for professional artists, actors and directors to create the media in the first place. This would negatively affect the economy, and most likely the jobs, careers and even colleges would be lost as a result. I think it is somewhat fair to consider some of the opposing views concerning this growing problem in the global scheme of things. The act of stealing and thievery has a negative effect on multiple parties.
Pollution (waste storage and disposal, chemical or other toxic waste, noise, chemical pollution of water, rivers, sea, etc.) in some areas doesn’t justify the cost compare to the benefits society has from the associated economic activity. Monopoly is a classic example of another type of market failure - market power. The lack of competition and the power of the entity lead to unfair prices. The “invisible hand” is weakened since it can’t keep self-interest in check.
Making false claims about your product and knowingly advertising it, is immoral. Deceptive advertising is the use of false or misleading statements in advertising. This violates the respect principle. As advertising has the potential to persuade people into purchases that they might otherwise avoid. The owner is treating the consumer as a means only and not as end in themselves.
The negative impacts of CKE’s BI include the fact that the studies were conducted in test markets, which do not depict the true market. If the BI is used to make a drastic change, such as the introduction of the Thickburger, and sales do not go as projected, this could negatively impact a company’s bottomline. Also, the cost of the BI software might outweigh the benefits, depending on what decisions the BI is used to make and the overall outcome. 3. The three forms of data mining include cluster analysis, association detection, and statistical analysis.
Managers took gamesmanship to improve their performance indicator without producing any positive economic effects. These problems had surfaced earlier, but the company top management fails to attach enough importance due to the following reasons. The setting of sales targets is not reasonable for all divisions at one rate.
Stockholders were displeased because the financials and reported profits were misleading and losses were recorded on the books of the franchises “area developers” and not in the corporation’s statements. In other words, the losses of the