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| Deferrals (Unearned Revenues and Prepaid Expenses) |
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For non-accountants, financial reports can be challenging to interpret, as the management team discovers when they try to collect some quick revenue to impress investors. Standard accounting practices present revenues and expenses in ways that don't appear logical, even to those with MBAs. The principles of income statements and the timing of recorded transactions are explained in this segment. |
| Alternative Income Statement Formats and Extraordinary Items |
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As CanGo grows, it requires increasingly complex financial arrangements. Liz and Andrew learn the difference between single-step and multi-step income statements and their effect on investors. Unfortunately, outside factors such as insurance regulations often have an impact on unrelated business operations. |
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| Intercultural Communication |
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Howie asks Pauline to take a prospective client out to lunch. Pauline's job is to build rapport with Rajiv Vaidya, the founder of Indian software company Ganesha Solutions, and to inform him of CanGo's strong marketing capabilities. In the process, Pauline becomes acquainted with a new culture. |
| Resolving Conflict |
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Pauline asks Nick and Gail to work on a project together. Unfortunately, these two employees just don't get along. The stage is set for another argument when Nick suggests that he'll handle the products and design portion of the project. Gail feels that since she has seniority, she should be running the project. Pauline must find a way to resolve this issue in order to get the project done and, more importantly, to get two skilled employees to work together effectively. |
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| Ethical Issues |
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In this episode, Andrew faces a difficult dilemma. One of his staff members confides that she is thinking of leaving CanGo. Soon after, Andrew has to decide whether to give this person access to potentially important information about the company. Andrew's problem serves as an opportunity for students to wrestle with the complexity of business ethics. |
| Understanding Consumer Behavior |
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Andrew and his staff try to understand customers' behavior by tracing their progress through the CanGo Web site. With the help of a program that analyzes consumer preferences, they learn where they can improve the site. Later, Andrew is confronted with a mysterious surge of interest in CanGo by Japanese consumers. Students review the consumer buying process and the influences that shape it. They also evaluate CanGo's efforts to guide customers into a purchase. |
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| Costs and Input Markets |
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This episode examines the link between inputs, costs, and productivity. CanGo's recent expansion in the e-commerce world has created the need for more employees. However, despite CanGo's growth, the company is unable to compete with benefit packages and salaries that other companies are offering. The management team examines the labor market in order to come up with a solution to their hiring dilemma. |
| Fiscal Policy |
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Tax policy is the focus of this episode. CanGo is preparing for the IPO while there are talks that Congress will implement tax cuts across the board. Some members of the management team feel that the tax cuts will impact the IPO negatively. Others feel that the tax cuts are positive because more money in people's pockets will mean more spending. The team also deals with the government spending side of fiscal policy. |
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| The Time Value of Money |
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Besides a company's operations, financial planning also covers personal investment. Maria discusses retirement planning with her parents. They discuss both current investment and future spending. This episode explains time value mathematics, also known as discounted cash flow analysis. |
| Stocks and Bonds |
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The CanGo management team is concerned with how its stock compares to that of other companies. This episode explains how dividends and other factors affect a stock's value and the dividend discount model as Maria learns more about the realities of the stock market. The team also discusses the difference between stocks and bonds. |
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| Groups and Teams |
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Maria heads a team charged with the task of putting together a promotional presentation for CanGo. The problems she faces in getting the team to act in an organized and effective manner give students a chance to explore key issues in team formation and performance. |
| Performance Appraisal |
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Students get an opportunity to sit in on Warren's performance appraisal with Nick. While Nick is an underachieving employee, the appraisal process turns out to be ineffective in identifying his strengths and weaknesses. Students are asked to evaluate this process along with the methods that CanGo uses to evaluate employees. |
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| Segmentation, Targeting, and Positioning |
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The marketing team confronts the challenge of defining viable consumer segments. While continuing to serve its Gen X core, CanGo decides to target the younger Baby Boomer segment, but the initial marketing communication risks are alienating the Gen X-ers. Students help CanGo refine its segmentation and targeting strategies. They also interpret research data to develop positioning strategies and address the challenge of targeting two or more segments at once. |
| Services Marketing |
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The CanGo team confronts problems with its service offerings. A Gap Analysis reveals flaws in both operations and marketing, prompting both to improve performance standards. Andrew and Warren discuss the risks of offering online gaming services. Students review the characteristics of service products, conduct their own evaluations of CanGo's services, and interpret Forrester Power Rankings. They also consider the special issues raised by unusual services like online gaming. |
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| Supply-Chain Management |
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CanGo learns of a proposed buyout of one of the nation's largest book suppliers. This buyout poses an external threat to CanGo's supply source and so the team brainstorms alternatives. The management team at CanGo also analyzes its method of distributing its materials. |
| Scheduling |
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CanGo receives orders 24 hours a day, which poses a problem for scheduling order-processing personnel. The schedule for filling orders is another dilemma that faces the CanGo team. CanGo compares the shortest time processing rule to the first-come-first-serve order basis they presently employ. |
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| Strategic Implementation |
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CanGo has acquired the Internet company "Webjouster," which specializes in interactive entertainment media. The two cultures clash, impacting employee productivity and satisfaction. In the process, students gain insight into the issues surrounding the implementation of strategy, particularly as they pertain to organizational culture. |
| Leadership & Governance |
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The Executive Committee of CanGo's Board of Directors decides to "promote" Elizabeth to Chair of the Board of Directors and bring in a more seasoned CEO. Liz persuades the Committee to keep her as CEO. She vows to step back more from the day-to-day operations. The conflict provides students with a chance to explore the role of organizational leaders and other stakeholders in the strategy process. |
© 2002 by Prentice-Hall, Inc.