SMC330Y1 Lecture Notes - Lecture 9: Jesus Movement
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The Empire Hotel is a full-service hotel in a large city. Empireis organized into three departments that are treated as investmentcenters. Budget information for the coming year for these threedepartments is shown as follows. The managers of each of thedepartments are evaluated and bonuses are awarded each year basedon ROI.
| Empire Hotel | |||||||||||
| Hotel Rooms | Restaurants | Health Spa | |||||||||
| Averageinvestment | $ | 10,000,000 | $ | 6,250,000 | $ | 1,250,000 | |||||
| Salesrevenue | $ | 11,250,000 | $ | 2,500,000 | $ | 800,000 | |||||
| Operatingexpenses | 9,450,000 | 1,625,000 | 650,000 | ||||||||
| Operatingearnings | $ | 1,800,000 | $ | 875,000 | $ | 150,000 | |||||
The manager of the restaurants department complains that salesand resulting earnings for the restaurants are not higher due tothe poor reputation of the hotel rooms department. Because thehotel rooms department does not have the best housekeeping staff,the overall reputation of the hotel is slipping. The manager of thehotel rooms department counters that, to keep operating expensesunder control and improve ROI, wages for housekeeping have beencut. The manager of the restaurants department has requested thatother evaluation techniques such as residual income or a balancedscorecard approach be considered in an effort to resolve thisproblem.
Required:
Consider which balanced scorecard measures might be useful tothe Empire Hotel in evaluating the Hotel Rooms Department.
a. Which organizational goals should be set toimprove the reputation of the hotel rooms? (You may selectmore than one answer.)
__ Cleanliness
__ Change in satisfaction per dollar of supplies
__ Value per dollar
__ Supervisory time.
__ Attractiveness
__ Cleaning supplies used
__ Staff Friendliness
b. Which measurement and resources can beemployed to measure whether goals are being met? (You mayselect more than one answer.)
__ Surveys of customer satisfaction
__ Value per dollar
__ Cleaning supplies used
__ Supervisory time
__ Time of housekeeping per room
__ Investment in maintenence
c. Which items provide the feedback necessaryto evaluate and reward employees for progress made towardsachieving the goals? (You may select more than oneanswer.)
__ Change in satisfaction per hour ofhousekeeping
__ Housekeeping staff friendliness
__ Change in satisfaction per hour of supervisory time
__ Time of housekeeping per room
__ Change in satisfaction per dollar of maintenance
__ Change in satisfaction per dollar of supplies used
__ Change in satisfaction per dollar of supplies
Which of the following most accurately describe the operation of the Bretton Woods system of adjustable pegged exchange rates? Check all that apply.
Countries can always reach their domestic stabilization objectives by devaluing their currencies.
A semi-fixed exchange rate system ties currencies to each other to provide stable exchange rates for commercial and financial transactions.
Countries can devalue or revalue its currency so as to restore payments balance.
Adjustable pegged rates enable estimates of the equilibrium rate to which a currency should be re-pegged.
Why do nations use a crawling peg exchange rate system?
To make small but frequent exchange rate adjustments promoting payments balance
To enable short-term volatility and longer-term swings in exchange rates that overshoot values justified by fundamental conditions
To make significant exchange rate adjustments promoting payments balance
To implement par value changes in a small number of large steps
Use the following categorization table to indicate the case for and the case against a system of floating exchange rates.
|
For or |
Against |
||
|---|---|---|---|
| It enables continuous adjustments of payments balances. | |||
| It reduces the need for international reserves. | |||
| It leads to disorderly exchange markets. | |||
| It may be inflationary. |
