Assignment:  What types of legal claims could Patty make against Cash Mart, Gerry, and Acme Corporation?

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Assignment:  What types of legal claims could Patty make against Cash Mart, Gerry, and Acme Corporation?

Notes:

Assignment: Patty Plaintiff’s Really Bad Week
Due Week 7
Worth 280 points
In this assignment, you’ll need to decide whether Patty Plaintiff has any legal claims arising from a series of unfortunate events. After reading the scenario, answer the questions that follow, making sure to fully explain the basis of your decision.
Patty Plaintiff is shopping at her favorite store, Cash Mart. She is looking for a new laptop, but she can’t find one she likes. Then, realizing that she is going to be late for an appointment, she attempts to leave the store, walking very fast. However, before she can leave, she is stopped by a security guard who accuses her of shoplifting. Patty, who has taken nothing, denies any wrongdoing. The officer insists and takes Patty to a small room in the back of the store. The guard tells Patty that if she attempts to leave the room she will be arrested and sent to jail. At this point, the guard leaves the room. Patty is scared and waits in the room for over an hour until the manager comes in and apologizes and tells Patty that she is free to go.
About this same time, Gerry Golfer is hitting golf balls in his backyard. Gerry decides to break out his new driver and hits a golf ball out of his backyard into the Cash Mart parking lot. The golf ball hits Patty Plaintiff on the head and knocks her unconscious just as she is leaving the store.
Five days later, after recovering from her injuries, Patty returns to work at Acme Corporation. Unfortunately, she used her company email to send her mom a personal email about her injury despite being aware that Acme’s company policy prohibits use of company email for personal communication. Patty’s supervisor, Barry Bossley, discovers Patty’s violation and Patty is reprimanded. When Patty goes home she uses her personal computer to post disparaging comments about her boss and Acme Corporation on social media. The next day Patty is fired from her job.
In a 6-10 paragraph paper, answer the following question: What types of legal claims could Patty make against Cash Mart, Gerry, and Acme Corporation? Consider the following:
What are the possible tort claims that Patty can make against Cash Mart? Discuss the elements of the claim and how those elements relate to the facts in the scenario.
Was Gerry negligent when he hit the golf ball that injured Patty? Discuss the elements of negligence and use facts from the scenario to support your decision.
Does Patty have a right to privacy when using Acme Corporation’s email system? Discuss the elements of the claim and how those elements relate to the facts in the scenario.
Can Patty be legally fired from her job for making negative comments about her boss and her company on social media? Discuss the elements of the claim and how those elements relate to the facts in the scenario.

Case Problem 6.1 Sara Decides to Take the Plunge

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Format your submission consistent with APA guidelines.

Case problem 6.1 A-C

Case Problem 6.1 Sara Decides to Take the Plunge

1.     LG 1

2.     LG 6

Sara Thomas is a child psychologist who has built a thriving practice in her hometown of Boise, Idaho. Over the past several years she has been able to accumulate a substantial sum of money. She has worked long and hard to be successful, but she never imagined anything like this. Even so, success has not spoiled Sara. Still single, she keeps to her old circle of friends. One of her closest friends is Terry Jenkins, who happens to be a stockbroker and who acts as Sara’s financial advisor.

Not long ago Sara attended a seminar on investing in the stock market, and since then she’s been doing some reading about the market. She has concluded that keeping all of her money in low-yielding savings accounts doesn’t make sense. As a result, Sara has decided to move part of her money to stocks. One evening, Sara told Terry about her decision and explained that she had found several stocks that she thought looked “sort of interesting.” She described them as follows:

·       North Atlantic Swim Suit Company. This highly speculative stock pays no dividends. Although the earnings of NASS have been a bit erratic, Sara feels that its growth prospects have never been brighter—“what with more people than ever going to the beaches the way they are these days,” she says.

·       Town and Country Computer. This is a long-established computer firm that pays a modest dividend yield (of about 1.50%). It is considered a quality growth stock. From one of the stock reports she read, Sara understands that T&C offers excellent long-term growth and capital gains potential.

·       Southeastern Public Utility Company. This income stock pays a dividend yield of around 5%. Although it’s a solid company, it has limited growth prospects because of its location.

·       International Gold Mines, Inc. This stock has performed quite well in the past, especially when inflation has become a problem. Sara feels that if it can do so well in inflationary times, it will do even better in a strong economy. Unfortunately, the stock has experienced wide price swings in the past. It pays almost no dividends.

Questions

a.      What do you think of the idea of Sara keeping “substantial sums” of money in savings accounts? Would common stocks make better investments for her than savings accounts? Explain.

b.     What is your opinion of the four stocks Sara has described? Do you think they are suitable for her investment needs? Explain.

c.      What kind of common stock investment program would you recommend for Sara? What investment objectives do you think she should set for herself, and how can common stocks help her achieve her goals?

 

Case Problem 6.2 A-C

Case Problem 6.2 Wally Wonders Whether There’s a Place for Dividends

  1. LG 5
  2. LG 6

Wally Wilson is a commercial artist who makes a good living by doing freelance work—mostly layouts and illustrations—for local ad agencies and major institutional clients (such as large department stores). Wally has been investing in the stock market for some time, buying mostly high-quality growth stocks as a way to achieve long-term growth and capital appreciation. He feels that with the limited time he has to devote to his security holdings, high-quality issues are his best bet. He has become a bit perplexed lately with the market, disturbed that some of his growth stocks aren’t doing even as well as many good-grade income shares. He therefore decides to have a chat with his broker, Al Fried.

During their conversation, it becomes clear that both Al and Wally are thinking along the same lines. Al points out that dividend yields on income shares are indeed way up and that, because of the state of the economy, the outlook for growth stocks is not particularly bright. He suggests that Wally seriously consider putting some of his money into income shares to capture the high dividend yields that are available. After all, as Al says, “the bottom line is not so much where the payoff comes from as how much it amounts to!” They then talk about a high-yield public utility stock, Hydro-Electric Light and Power. Al digs up some forecast information about Hydro-Electric and presents it to Wally for his consideration:

Year Expected EPS ($) Expected Dividend Payout Ratio (%)
2016 $3.25 40%
2017 $3.40 40%
2018 $3.90 45%
2019 $4.40 45%
2020 $5.00 45%

The stock currently trades at $60 per share. Al thinks that within five years it should be trading at $75 to $80 a share. Wally realizes that to buy the Hydro-Electric stock, he will have to sell his holdings of CapCo Industries—a highly regarded growth stock that Wally is disenchanted with because of recent substandard performance.

Questions

  1. How would you describe Wally’s present investment program? How do you think it fits him and his investment objectives?
  2. Consider the Hydro-Electric stock.
    1. Determine the amount of annual dividends Hydro-Electric can be expected to pay over the years 2016 to 2020.
    2. Compute the total dollar return that Wally will make from Hydro-Electric if he invests $6,000 in the stock and all the dividend and price expectations are realized.
    3. If Wally participates in the company’s dividend reinvestment plan, how many shares of stock will he have by the end of 2020? What will they be worth if the stock trades at $80 on December 31, 2020? Assume that the stock can be purchased through the dividend reinvestment plan at a net price of $50 a share in 2016, $55 in 2017, $60 in 2018, $65 in 2019, and $70 in 2020. Use fractional shares, to 2 decimals, in your computations. Also, assume that, as in part b, Wally starts with 100 shares of stock and all dividend expectations are realized.
  3. Would Wally be going to a different investment strategy if he decided to buy shares in Hydro-Electric? If the switch is made, how would you describe his new investment program? What do you think of this new approach? Is it likely to lead to more trading on Wally’s behalf? If so, can you reconcile that with the limited amount of time he has to devote to his portfolio?

 

 

Case Problem 7.1 A-C

Case Problem 7.1 Some Financial Ratios Are Real Eye-Openers

1.     LG 5

2.     LG 6

Jack Arnold is a resident of Lubbock, Texas, where he is a prosperous rancher and businessman. He has also built up a sizable portfolio of common stock, which, he believes, is due to the fact that he thoroughly evaluates each stock he invests in. As Jack says, “You can’t be too careful about these things! Anytime I plan to invest in a stock, you can bet I’m going to learn as much as I can about the company.” Jack prefers to compute his own ratios even though he could easily obtain analytical reports from his broker at no cost. (In fact, Bob Smith, his broker, has been volunteering such services for years.)

Recently Jack has been keeping an eye on a small chemical stock. The firm, South Plains Chemical Company, is big in the fertilizer business—which is something Jack knows a lot about. Not long ago, he received a copy of the firm’s latest financial statements (summarized here) and decided to take a closer look at the company.

Cash $ 1,250
Accounts receivable $ 8,000 Current liabilities $10,000
Inventory $12,000 Long-term debt $ 8,000
Current assets $21,250 Stockholders’ equity $12,000
Fixed and other assets $ 8,750 Total liabilities and
Total assets $30,000 stockholders’ equity $30,000

South Plains Chemical Company Balance Sheet ($ thousands)
Sales $50,000
Cost of goods sold $25,000
Operating expenses $15,000
Operating profit $10,000
Interest expense $ 2,500
Taxes $ 2,500
Net profit $ 5,000
Dividends paid to common stockholders ($ in thousands) $ 1,250
Number of common shares outstanding 5 million
Recent market price of the common stock $ 25

South Plains Chemical Company Income Statement ($ thousands)

Questions

a.      Using the South Plains Chemical Company figures, compute the following ratios.

Latest Industry Averages Latest Industry Averages
Liquidity Profitability
a. Net working capital N/A h. Net profit margin 8.5%
b. Current ratio 1.95 i. Return on assets 22.5%
Activity j. ROE 32.2%
c. Receivables turnover 5.95 Common-Stock Ratios
d. Inventory turnover 4.50 k. Earnings per share $2.00
e. Total asset turnover 2.65 l. Price-to-earnings ratio 20.0
Leverage m. Dividends per share $1.00
f. Debt-equity ratio 0.45 n. Dividend yield 2.5%
g. Times interest earned 6.75 o. Payout ratio 50.0%
p. Book value per share $6.25
q. Price-to-book-value ratio 6.4

b.     Compare the company ratios you prepared to the industry figures given in part a. What are the company’s strengths? What are its weaknesses?

c.      What is your overall assessment of South Plains Chemical? Do you think Jack should continue with his evaluation of the stock? Explain.

 

 

 

Case Problem 7.2 A-C

Case Problem 7.2 Doris Looks at an Auto Issue

Doris Wise is a young career woman. She lives in Phoenix, Arizona, where she owns and operates a highly successful modeling agency. Doris manages her modest but rapidly growing investment portfolio, made up mostly of high-grade common stocks. Because she’s young and single and has no pressing family requirements, Doris has invested primarily in stocks that offer the potential for attractive capital gains. Her broker recently recommended an auto company stock and sent her some literature and analytical reports to study. One report, prepared by the brokerage house she deals with, provided an up-to-date look at the economy, an extensive study of the auto industry, and an equally extensive review of several auto companies (including the one her broker recommended). She feels strongly about the merits of security analysis and believes it is important to spend time studying a stock before making an investment decision.

Questions

a.      Doris tries to stay informed about the economy on a regular basis. At the present time, most economists agree that the economy is getting stronger. What information about the economy do you think Doris would find helpful in evaluating an auto stock? Prepare a list—and be specific. Which three items of economic information (from your list) do you feel are most important? Explain.

b.     In relation to a study of the auto industry, briefly note the importance of each of the following.

1.     Auto imports

2.     The United Auto Workers union

3.     Interest rates

4.     The price of a gallon of gas

c.      A variety of financial ratios and measures are provided about one of the auto companies and its stock. These are incomplete, however, so some additional information will have to be computed. Specifically, we know the following:

Net profit margin 15%
Total assets $25 billion
Earnings per share $3.00
Total asset turnover 1.5
Net working capital $3.4 billion
Payout ratio 40%
Current liabilities $5 billion
Price-to-earnings ratio 12.5

d.     Given this information, calculate the following:

1.     Sales

2.     Net profits after taxes

3.     Current ratio

4.     Market price of the stock

5.     Dividend yield

 

Case Problem 8.1 A-B

 

Case Problem 8.1 Chris Looks for a Way to Invest His Wealth

1.     LG 1

2.     LG 2

3.     LG 4

Chris Norton is a young Hollywood writer who is well on his way to television superstardom. After writing several successful television specials, he was recently named the head writer for one of TV’s top-rated sitcoms. Chris fully realizes that his business is a fickle one, and on the advice of his dad and manager, he has decided to set up an investment program. Chris will earn about a half-million dollars this year. Because of his age, income level, and desire to get as big a bang as possible from his investment dollars, he has decided to invest in speculative, high-growth stocks.

Chris is currently working with a respected Beverly Hills broker and is in the process of building up a diversified portfolio of speculative stocks. The broker recently sent him information on a hot new issue. She advised Chris to study the numbers and, if he likes them, to buy as many as 1,000 shares of the stock. Among other things, corporate sales for the next three years have been forecasted as follows:

Year Sales ($ millions)
1 $22.5
2 $35.0
3 $50.0

The firm has 2.5 million shares of common stock outstanding. They are currently being traded at $70 a share and pay no dividends. The company has a net profit rate of 20%, and its stock has been trading at a P/E of around 40 times earnings. All these operating characteristics are expected to hold in the future.

Questions

a.      Looking first at the stock:

1.     Compute the company’s net profits and EPS for each of the next 3 years.

2.     Compute the price of the stock three years from now.

3.     Assuming that all expectations hold up and that Chris buys the stock at $70, determine his expected return on this investment.

4.     What risks is he facing by buying this stock? Be specific.

5.     Should he consider the stock a worthwhile investment candidate? Explain.

b.     Looking at Chris’s investment program in general:

1.     What do you think of his investment program? What do you see as its strengths and weaknesses?

2.     Are there any suggestions you would make?

3.     Do you think Chris should consider adding foreign stocks to his portfolio? Explain.

 

Case Problem 8.2 A-B

Case Problem 8.2 An Analysis of a High-Flying Stock

1.     LG 2

2.     LG 6

Marc Dodier is a recent university graduate and a security analyst with the Kansas City brokerage firm of Lippman, Brickbats, and Shaft. Marc has been following one of the hottest issues on Wall Street, C&I Medical Supplies, a company that has turned in an outstanding performance lately and, even more important, has exhibited excellent growth potential. It has five million shares outstanding and pays a nominal annual dividend of $0.05 per share. Marc has decided to take a closer look at C&I to assess its investment potential. Assume the company’s sales for the past five years have been as follows:

Year Sales ($ millions)
2012 $10.0
2013 $12.5
2014 $16.2
2015 $22.0
2016 $28.5

Marc is concerned with the future prospects of the company, not its past. As a result, he pores over the numbers and generates the following estimates of future performance:

Expected net profit margin 12%
Estimated annual dividends per share 5¢
Number of common shares outstanding No change
P/E ratio at the end of 2017 35
P/E ratio at the end of 2018 50

Questions

a.      Determine the average annual rate of growth in sales over the past five years. (Assume sales in 2011 amounted to $7.5 million.)

1.     Use this average growth rate to forecast revenues for next year (2017) and the year after that (2018).

2.     Now determine the company’s net earnings and EPS for each of the next two years (2017 and 2018).

3.     Finally, determine the expected future price of the stock at the end of this two-year period.

b.     Because of several intrinsic and market factors, Marc feels that 25% is a viable figure to use for a desired rate of return.

1.     Using the 25% rate of return and the forecasted figures you came up with in question a, compute the stock’s justified price.

2.     If C&I is currently trading at $32.50 per share, should Marc consider the stock a worthwhile investment candidate? Explain.

 

Case Problem 9.2 A-C

Case Problem 9.2 Deb Takes Measure of the Market

1.     LG 5

Several months ago, Deb Forrester received a substantial sum of money from the estate of her late aunt. Deb initially placed the money in a savings account because she was not sure what to do with it. Since then, however, she has taken a course in investments at the local university. The textbook for the course was, in fact, this one, and the class just completed this chapter. Excited about what she has learned in class, Deb has decided that she definitely wants to invest in stocks. But before she does, she wants to use her newfound knowledge in technical analysis to determine whether now would be a good time to enter the market.

Deb has decided to use all of the following measures to help her determine if now is, indeed, a good time to start putting money into the stock market:

·       Advance-decline line

·       New highs-new lows indicator (Assume the current 10-day moving average is 0 and the last 10 periods were each 0.)

·       Arms index

·       Mutual fund cash ratio

Deb goes to the Internet and, after considerable effort, is able to put together the accompanying table of data.

Questions

a.      Based on the data presented in the table, calculate a value (where appropriate) for periods 1 through 5, for each of the four measures listed above. Chart your results, where applicable.

b.     Discuss each measure individually and note what it indicates for the market, as it now stands. Taken collectively, what do these four measures indicate about the current state of the market? According to these measures, is this a good time for Deb to consider getting into the market, or should she wait a while? Explain.

c.      Comment on the time periods used in the table, which are not defined here. What if they were relatively long intervals of time? What if they were relatively short? Explain how the length of the time periods can affect the measures.

Period 1 Period 2 Period 3 Period 4 Period 5
Dow Jones Industrial Average 8,300 7,250 8,000 9,000 9,400
Dow Transportation Average 2,375 2,000 2,000 2,850 3,250
New highs $  68 $  85 $  85 $ 120 $ 200
New lows $  75 $  60 $  80 $  75 $  20
Volume up 600,000,000 836,254,123 275,637,497 875,365,980 1,159,534,297
Volume down 600,000,000 263,745,877 824,362,503 424,634,020 313,365,599
Mutual fund cash (trillions of dollars) $0.31 $0.32 $0.47 $0.61 $0.74
Total assets managed (trillions of dollars) $6.94 $6.40 $6.78 $6.73 $7.42
Advancing issues (NYSE) 1,120 1,278 1,270 1,916 1,929
Declining issues (NYSE) 2,130 1,972 1,980 1,334 1,321

 

 

 

PLEASE SEE GRADING RUBICS – To ensure assignsment done accordingly.

CRITERIA NEEDS IMPROVEMENT

Minimum Points

 SATISFACTORY

Medium Points

 EXCEPTIONAL

Maximum Points
CONTENT
40%

 

 The writer does not demonstrate cursory understanding of subject matter, and the purpose of the paper is not stated.  The objective, therefore, is not addressed and supporting materials are not correctly referenced.

27.9 or FEWER POINTS

 The writer demonstrates limited understanding of the subject matter in that theories are not well connected to a practical experience or appropriate examples, though the attempt to research the topic is evident, and materials are correctly referenced.


28 to 35.9 POINTS

 The writer demonstrates an understanding of the subject matter by clearly stating the objective of the paper and links theories to practical experience.  The paper includes relevant material that is correctly referenced, and this material fulfills the objective of the paper.


36 to 40 POINTS
ORGANIZATION

30%

 

 Paragraphs do not focus around a central point, and concepts are disjointedly introduced or poorly defended (i.e., stream of consciousness).

 

 

 

 

20.9 or FEWER POINTS

 Topics/content could be organized in a more logical manner.  Transitions from one idea to the next are often disconnected and uneven.

 

 

 

21 to 26.9 POINTS  

 The writer focuses on ideas and concepts within paragraphs, and sentences are well-connected and meaningful.  Each topic logically follows the objective.  The introduction clearly states the objective, ideas leading to the purpose of the paper, and a conclusion draws the ideas together.

 

27 to 30 POINTS
FORMAT
5%

 

 The paper does not conform to APA style.

3.4 or FEWER POINTS

 The paper does not conform completely to APA style (e.g., margins, spacing, pagination, headings, headers, citations, references, according to the APA Manual).


3.5 to 4.4 POINTS

 The paper is correctly formatted to APA style (e.g., margins, spacing pagination, headings, headers, citations, references, according to the APA Manual).

4.5 to 5 POINTS 
GRAMMAR,  PUNCTUATION, & SPELLING

10%

 

 The writer demonstrates limited understanding of formal written language use; writing is colloquial (i.e., conforms to spoken language).  Grammar and punctuation are consistently incorrect.  Spelling errors are numerous.

7 or FEWER POINTS		 The writer occasionally uses awkward sentence construction or overuses and/or uses inappropriate complex sentence structure.  Problems with word usage (e.g., incorrect use of Thesaurus) and punctuation persist, often causing difficulties with grammar.  Grammar, spelling and punctuation are occasionally incorrect.
7 to 8.9 POINTS		 The writer demonstrates correct usage of formal English language in sentence construction.  Variation in sentence structure and word usage promotes readability.  There are no spelling, punctuation, or word usage errors.

9 to 10  POINTS
READABILITY & STYLE

15 %

 

 The writer struggles with limited vocabulary and has difficulty conveying meaning such that only the broadest, most general messages are presented.

10.4 or FEWER POINTS		 Some words, transitional phrases, and conjunctions are overused.  Ideas may be overstated, and sentences with limited contribution to the subject are included.

10.5  to 13.4 POINTS 

 The reading audience is correctly identified, demonstrated by appropriate language usage (i.e., avoiding jargon and simplifying complex concepts appropriately).  Writing is concise, in active voice, and avoids awkward transitions and overuse of conjunctions.
13.5 to 15 POINTS

 

Fin550 fin560

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Fin550 fin560

Chap 4

4. You decide to sell short 100 shares of Charlotte Horse Farms when it is selling at its yearly high of $56. Your broker tells you that your margin requirement is 45 percent and that the commission on the purchase is $155. While you are short the stock, Charlotte pays a $2.50 per share dividend. At the end of one year, you buy 100 shares of Charlotte at $45 to close out your position and are charged a commission of $145 and 8 percent interest on the money borrowed. What is your rate of return on the investment?

5. You own 200 shares of Shamrock Enterprises that you bought at $25 a share. The stock is now selling for $45 a share. a. You put in a stop loss order at $40. Discuss your reasoning for this action. b. If the stock eventually declines in price to $30 a share, what would be your rate of return with and without the stop loss order?

6. Two years ago, you bought 300 shares of Kayleigh Milk Co. for $30 a share with a margin of 60 percent. Currently, the Kayleigh stock is selling for $45 a share. Assuming no dividends and ignoring commissions, compute (a) the annualized rate of return on this investment if you had paid cash, and (b) your rate of return with the margin purchase.

7. The stock of the Madison Travel Co. is selling for $28 a share. You put in a limit buy order at $24 for one month. During the month the stock price declines to $20, then jumps to $36. Ignoring commissions, what would have been your rate of return on this investment? What would be your rate of return if you had put in a market order? What if your limit order was at $18?

Chap 6

1. Compute the abnormal rates of return for the following stocks during period t (ignore differential systematic risk):

2. Compute the abnormal rates of return for the five stocks in Problem 1 assuming the following systematic risk measures (betas):

Stock βi

B 0.95

F 1.25

T 1.45

C 0.70

E −0.30

3.Compare the abnormal returns in Problems 1 and 2 and discuss the reason for the difference in each case.

4. Look up the daily trading volume for the following stocks during a recent five-day period: Merck Caterpillar Intel McDonald’s General Electric Randomly select five stocks from the NYSE, and examine their daily trading volume for the same five days.

a. What are the average volumes for the two samples?

b. Would you expect this difference to have an impact on the efficiency of the markets for the two samples? Why or why not?

Determine how many pieces can be produced before the LCL just crosses the lower tolerance of  3 cm. (Do not round your intermediate calculations.)

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A company has just negotiated a contract to produce a part for another firm. In the process of manufacturing the part, the inside diameter of successive parts becomes smaller and smaller as the cutting tool wears. However, the specs are so wide relative to machine capabilities that it is possible to set the diameter initially at a large value and let the process run for a while before replacing the cutting tool.
       The inside diameter decreases at an average rate of .001 cm per part, and the process has a standard deviation of .05 cm. The variability is approximately normal. Assuming a three-sigma buffer at each end, how frequently must the tool be replaced if the process specs are 3 cm and 3.5 cm. Use (Number of shafts)n = 1.

Picture

Determine how many pieces can be produced before the LCL just crosses the lower tolerance of  3 cm. (Do not round your intermediate calculations.)

 

· Describe and evaluate the financial environment at Genesis Energy by using ratio analysis of the company.

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· Describe and evaluate the financial environment at Genesis Energy by using ratio analysis of the company.

· Choose one ratio from each of the five categories listed in the table on page 103 of your textbook, Brigham and Ehrhardt, SEE ATTACHED and do a 3-year ratio trend analysis. Compare these results to the industry averages. What do the results tell you?

· Name three specific options that are available to Genesis Energy for obtaining needed capital.

· Identify and explain two ways Genesis Energy can improve its strategy.

· Explain what specific macroeconomic factors are likely to affect genesis, i.e., inflation, interest rates, exchange rates etc. Please do a brief country risk assessment and discuss the most likely problems a company like Genesis Energy is likely going to confront when contemplating an international expansion. What would be the least risky avenue for them to get their product/service to the country you have chosen? Which entry mode is the riskiest? Explain.

Write a 3–4-page paper in Word format. Apply APA standards to citation of sources.

Then, create a 6–8-slide PowerPoint with Speaker’s notes and references (including research) presenting your findings to the Genesis Energy operations management team.

Appendix 1: Case study – Australian Hardware Australian Hardware (a simulated business) is a large and expanding hardware and homewares retailer with approximately 140 stores located across Australia. In its vision statement, Australian Hardware states that it intends to ‘lead the hardware and home-improvement market in Australia within five years’. In order to realise this vision, the organisation intends to:

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Appendix 1: Case study – Australian Hardware Australian Hardware (a simulated business) is a large and expanding hardware and homewares retailer with approximately 140 stores located across Australia. In its vision statement, Australian Hardware states that it intends to ‘lead the hardware and home-improvement market in Australia within five years’. In order to realise this vision, the organisation intends to:

● build market share by focusing on the customer experience ● control direct and indirect costs through efficient internal processes ● establish the reputation of Australian Hardware as a socially and environmentally responsible company ● lead by example in embracing cultural diversity in the workforce.

These strategic organisation-wide directions are implemented from senior management down, in the form of performance expectations for managers and employees at every level of the organisation. Australian Hardware realises that the success of the business rests on its people. For this reason, the organisation insists that managers build effective teams by responding to the needs of employees. Such needs include safety and security, fairness, flexibility, skills development and self-actualisation. Satisfying such needs will allow employees to focus more effectively on work tasks and customer needs. In addition, Australian Hardware encourages managers to take a flexible approach to meeting performance targets and to set goals in close collaboration with employees. To implement strategic directions and advance Australian Hardware’s values, managers are expected to lead employees by modeling positive behaviours and attributes. This mindful approach to leadership and management is intended to encourage employees to follow the example in their interactions with colleagues and customers. To lead and inspire people, managers must demonstrate keen emotional awareness and promote positive team- building behaviours in others. You are the new General Operations Manager of the Wollongong, NSW store and you are ready for a challenge. You are directly responsible for managing general sales and checkout staff, administration staff and a human resources officer. You report to the Store Manager, who is responsible for all areas of store responsibility (Timber, Plumbing & Electrical, Gardens and Homewares departments and general operations). For more background to this assessment task, Australian Hardware simulated business information, including business and operational plans, financial information, and policies and procedures, can be located online at: <http://simulations.ibsa.org.au>.a

Appendix 2: Case study scenario questions For the following case-study scenario questions, put yourself in the position of the new general operations manager and answer the questions accordingly. Scenario A Your Store Manager has had a stressful month. It is the end of the financial year and sales revenue in the Timber and Plumbing & Electrical departments is down on targets, almost certainly due to increased competition from smaller competitors for trade contractors’ business. Just this week, the Store Manager held a meeting in which she yelled at all the department managers (including you) and instructed them to work out a way to improve revenue. Obviously, the outburst did not make much sense as the department managers, in such a large business, do not have the capability to raise much revenue directly. Marketing and distribution innovations that could have an effect are mainly a head office responsibility. The Wollongong store’s inability to counter the threat from smaller, nimbler trade suppliers has been the main reason for the revenue deficit. Naturally, the atmosphere around the store and in the management team is subdued and a few managers have discussed leaving the organisation; other managers have responded by pushing unreasonable sales demands onto their sales staff. You are now feeling pressure to do something to address the concerns expressed by the Store Manager. You don’t wish to act contrary to budget planning nor increase pressure on the team to offset poor performance in areas beyond their control. In your opinion, this leadership behaviour was disrespectful to all the managers, created unnecessary concern about job security and undermined trust. There has been a clearly negative flow-on effect down through the store, which is now affecting people at a lower level. You are justifiably angry at the manager’s behaviour and blame her for making a bad situation worse with poor leadership and poor emotional awareness. In your consideration of this scenario, provide a written response to the following: 1. In approximately 80 words, outline what may have occurred in the Store Manager’s emotional journey and her subsequent response in the meeting. 2. Describe at least two of the principles of strong emotional intelligence that the Store Manager did not demonstrate in this scenario. 3. Provide at least two strategies that she could have considered while planning the meeting and link these to probable productive results for the business. 4. Managers in your direct reporting line have asked you to share their anxieties following the meeting with the Store Manager. List 6–10 sequential bullet points that would provide a well-planned approach to guide this conversation with the Store Manager.

5. Outline at least three potential benefits for store performance if morale could be lifted across the team. 6. Review the final paragraph of the case study and describe in approximately 75 words how you would model positive leadership behaviour based on emotional intelligence theory. You may include bullet points in formatting your answer. Scenario B An employee has come to you expressing concern about an issue involving a co-worker. In general, the sales force is a fairly cohesive team, but now a relatively new member of the team is rubbing people the wrong way. The newer team member never participates in drinks or other social occasions outside work. She never involves herself in the common, day-to-day conversations about family, popular movies or culture. The team is beginning to form the opinion that she is too aloof, doesn’t like the other team members and they are expressing discontent about her place in the team. The sales team believe it is really important to be able to feel a connection with other team members. This connection provides a sense that they can rely on each other. It facilitates mutual support such as relieving another team member who needs some personal time, sharing information as required and helping to serve customers in a collaborative manner. You happen to know that the sales staff member in question is a valuable staff member with good customer skills and product knowledge. You understand, however, that as a foreignborn, conservative, religious woman, she is having trouble relating to the other team members. Many team-bonding opportunities involve activities that she cannot participate in, such as out-of-hours parties, drinking alcohol or using confusing cultural references. The newer team member believes she is in a bind because she would like to be accepted by her colleagues on her professional merits. It seems that all avenues to team-bonding are closed off and she therefore feels stigmatised and senses that others see her as an unfriendly person. In your written response to the above scenario: 1. What emotional cues would you look for in the initial conversation with the employee expressing concern? Explain how these cues would guide your response. 2. Identify at least three key points that you would discuss with the employee raising this issue, ensuring that cultural misunderstanding is addressed in the meeting. 3. Discuss in approximately 75 words how the team in this scenario can raise their awareness of cultural expression and promote effective communication to avoid further misunderstandings. 4. Drawing on your knowledge of emotional intelligence theory, suggest two strategies that you might consider using with the newer team member to help alleviate her feeling of isolation.

5. Prepare a list of at least three benefits that could be realised by the sales team and the business as a whole, if this challenge can be satisfactorily addressed. 6. From your personal experience in the workplace, provide at least two examples where misinterpretations of expressions or behaviour occurred due to a culturally diverse workforce. What were the consequences of these misunderstandings in that workplace? Scenario C An employee that you manage really gets on your nerves. It’s not that their performance is all that bad. For example, the employee always does what is required of them in terms of professionalism, administration tasks and dressing appropriately. They meet sales targets and their customer service ratings on their performance scorecards are good. On the other hand, the employee does not really respond to the team training and teambuilding sessions that you have initiated and that have proven so effective in sustaining team morale and driving others to success. Other team members seem to thrive on, and draw energy from, these team sessions, while this employee, if anything, appears emotionally drained from interacting with their peers. They say that they would rather work individually and that all the team stuff is suffocating. You’ve really tried hard to build a culture of teamwork and this feels like a slap in the face. In your written response to the above scenario: 1. Describe how you would set aside your own emotions to focus on and identify how the employee (probably) feels. Refer to relevant principles of emotional intelligence. 2. Describe how knowledge of, for example, learning styles, personality types or communication styles might be able to help you relate to and understand the employee better and adapt your response. 3. Describe how you could use your awareness of your own feelings and those of the employee to adapt your response so that the following needs are satisfied:

a. your needs (emotional needs, need for team cohesiveness, need to meet performance standards) b. employee’s needs (emotional needs, need to develop and perform within a team environment).

Refer to relevant principles of emotional intelligence where applicable.

Scenario D It is the end of the financial year and sales revenue at the Wollongong store in the Timber and Plumbing & Electrical departments is down on targets. This issue is almost certainly due to increased competition from smaller competitors for trade contractors’ business; nevertheless, some action should be taken by management to mitigate the effect of this issue on the store overall. As a result of managerial discussions, it has been decided that some employee performance targets will be increased where capacity exists and some programs, such as training, will be delayed. These measures will have the effect of potentially increasing revenue and reducing costs to compensate for overall poorer-than-expected performance in the Wollongong store. Each manager will have responsibility for implementing this group decision in his or her particular area of responsibility. It will be important to consider the emotional impact on staff and any consequential impact on health, safety and wellbeing as well as the impact on performance and the achievement of organisational goals. In your written response to the above scenario: 1. Describe the relationship between emotionally effective people and the attainment of business objectives. 2. Describe how considering the emotional impact of decision-making could lead to better decision-making (with respect to business objectives). 3. Describe what a possible process of decision-making that takes emotional impact into account could look like. Decisions in this case include, for example, setting particular performance targets, or selecting what programs can be delayed. 4. Identify policies, procedures or legislation that will need to be adhered to in order to satisfy internal and external requirements related to managing emotions in the workplace. 5. Describe how health and safety legislation is relevant to managers’ implementation of business decisions.