Answer: C. II and III
Explanation:
As the shares were acquired by the officer on the open market, they are considered Control Stock. Sale of Control Stock falls under the purview of Rule 144 of the SEC that governs the sale of restricted, unregistered, and control securities so a Form 144 will need to be filed with the Sec making III correct.
Furthermore, control stock are not subject to a holding period requirement so option II is correct as well. Option C is therefore the best answer.
air pollution causes capital to wear out more rapidly, doubling the rate of depreciation. How would this affect economic growth?
Answer:
The economic growth will be lower.
Explanation:
The rise in pollution and the doubling of the rate of depreciation will affect economic growth adversely. However, rapid wear and tear of capital will cost the person and it will reduce the purchasing power. Thus, lower purchasing power will result in lower economic growth. Moreover, pollution creates three main problems that are reduced labor productivity, rise in health problems, and loss of crop yield. So the reduction in all these factors will also slow down economic growth.
The Herfindahl-Hirschman Index (HHI) is a mathematical approach to understanding market concentration that provides a single concentration indicator. What is the HHI for an industry characterized by the below noted data?Firm 1 has a market share of 40%Firm 2 has a market share of 20%Firm 3 has a market share of 15%Firm 4 has a market share of 15%Firm 5 has a market share of 10%HHI=___
Answer:
2550
Explanation:
The HHI is calculated by squaring the market share of each firm in the industry.
40² + 20² + 15² + 15² + 10² = 1600 + 400 + 225 + 225 + 100 = 2550
As an American investor, you are trying to calculate the present value of a £25 million cash flow that will occur one year in the future. You know that the spot exchange rate is S= $1.9397/ £ and one-year forward rate is F= $1.9581/ £. You also know that the appropriate dollar cost of capital for this cash flow is 6.25% and that the appropriate pound cost of capital for this cash flow is 5.25%. a) What is the present value of the £25 million cash flow from the standpoint of a British investor, and what is the dollar equivalent of this amount? b) What is the present value of the £25 million cash flow from the standpoint of a U.S. investor who first converts the £25 million into dollars and then applies the dollar discount rate?
Answer:
1. Present value in pound=$23,752,969
Dollar equivalent=$46,073,634
2.Dollar equivalent for U.S investors=$48,952,500
Present value in pound=$46,072,918
Explanation:
1a.Calculation for present value of the £25 million cash flow
Using this formula
Present value in pound =cash flow*(1/1+Cash flow cost of capital)^ One year in the future
Let plug in the formula
Present value in pound=$25,000,000*(1/1+0.0525)^1
Present value in pound=$25,000,000*(1/1.0525)^1
Present value in pound=$25,000,000*0.950119
Present value in pound=$23,752,969
1b.Calculation for the dollar equivalent of this amount
Using this formula
Dollar equivalent=Present value in pound*Spot exchange rate
Let plug in the formula
Dollar equivalent=$23,752,969*$1.9397
Dollar equivalent=$46,073,634
2a. Calculation for the Dollar equivalent for U.S investors
Using this formula
Dollar equivalent for U.S investors=Cash flow*one-year forward rate
Let plug in the formula
Dollar equivalent for U.S investors=$25,000,000*$1.9581
Dollar equivalent for U.S investors=$48,952,500
2b. Calculation for the present value of the £25 million cash flow from the standpoint of a U.S. investor .
Using this formula
Present value in pound =Cash flow*(1/1+Cash flow cost of capital)^ One year in the future
Let plug in the formula
Present value in pound=$48,952,500*(1/1.0625)^1
Present value in pound=$48,952,500*0.941176
Present value in pound=$46,072,918
Therefore the Present value in pound for question 1 is $23,752,969 while the Dollar equivalent is $46,073,634.
The Dollar equivalent for U.S investors in question 2 is $48,952,500 while the Present value in pound is $46,072,918
Which of the following are recommended ways to learn more about IT careers? Check all of the boxes
that apply.
scheduling an appointment with a career counselor at a school
attending an informational session
applying for an internship
renting a science fiction movie about computer viruses
contacting a professional organization, such as CompTIA
Answer:
scheduling an appointment with a career counselor at a schoolattending an informational sessionapplying for an internshipcontacting a professional organization, such as CompTIAExplanation:
To learn more about IT careers or just carriers in general, one can contact the Career counselor at school. Their job is to help students find out more abut careers so that they know which path they would like to follow.
One can also attend information sessions where they can listen to people speak on IT careers and ask questions they would like answers to as well.
A practical way to find out about IT careers is to intern at an IT firm. This way you get to see first hand what the job entails and if it is the kind of thing you would like to do.
There are also professional organizations that offer certifications in IT such as CompTIA. As they are well versed in the area, they can provide more information on IT careers including the educational background required.
Answer:
1. Scheduling an appointment with a career counselor at school.
2. Attending an informational session.
3. Applying for an internship
5. Contacting a professional organization, such as CompTIA.
Explanation: This is the correct answer on Edge 2021, just did the assignment. Hope this helps ^-^.
Which of the following is an advantage of job specialization? 1 point A. The quality of work increases. B. Jobs can be mastered quickly. C. Employees are more involved with their jobs. D. The work is less repetitive. E. Task specialization has no clear advantages to the organization
Answer: B. Jobs can be mastered quickly.
Explanation:
Job specialization is when the employees in an organization focuses and concentrates on one particular aspect in a organization. Specialization makes employees more efficient and also effective at their role.
Also, jobs can be mastered quickly since the employees typically focuses on one particular aspect in the organization.
What term means managing the entire organization so that it excels on all dimensions of products and services that are important to customers?
Answer:
Total Quality Management
Explanation:
Total Quality Management is an approach in which all the employees of the company work to improve the entire process to offer a good customer experience. According to this, the answer is that the term that means managing the entire organization so that it excels on all dimensions of products and services that are important to customers is Total Quality Management.
Brunette Company is contemplating investing in a new piece of manufacturing machinery. The amount to be invested is $180,000. The present value of the future cash flows generated by the project is $163,000. Should they invest in this project?
Answer:
No, as the net present value comes in negative
Explanation:
As we know that
Net present value = Present value of cash inflows - Initial investment
where,
Present value os $163,000
And, the initial investment is $180,000
Now placing these values to the above formula
So, the net present value is
= $163,000 - $180,000
= -$17,000
Therefore the company should not accept the project as net present value is in negative that is -$17,000
The managerial accountant at Space Right Office Cubicles calculates fixed overhead variances to complete the August report. The actual fixed overhead cost in the month of August was and the budgeted fixed overhead cost was . The standard hours in August were and the standard rate per machinehour was . Calculate the standard fixed overhead cost allocated to production, the fixed overhead budget variance, and the fixed overhead volume variance. A. ; F; U B. ; F; U C. ; F; U D. ; F; U
Answer: d. $36,400; $1700 F; $500 U
Explanation:
1. Standard fixed overhead cost allocated to production
= Standard Hours * Standard rate per machine hour
= 2,600 * 14
= $36,400
2. Fixed overhead budget variance
= Budget overhead cost - Actual overhead cost
= 36,900 - 35,200
= $1,700 favorable
3. Fixed Overhead Volume Variance
= Standard fixed overhead cost - Budgeted overhead
= 36,400 - 36,900
= -$500
= $500 Unfavorable
Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will receive one share of Badger stock for each 10 shares of stock they already own. Madison Cheesehead owns 1,000 shares of Badger stock with a tax basis of $100 per share. The fair market value of the Badger stock was $110 per share on March 25 of this year.Required:a. What amount of taxable dividend income, if any, does Madison recognize in 2009? b. What is Madison's income tax basis in her new and existing stock in Badger Corporation, assuming the distribution is non-taxable? c. How would you answer questions a and b if Madison was offered the choice between 1 share of stock in Badger for each 10 shares she owned or $100 cash for each 10 shares she owned in Badger?
Answer:
a. What amount of taxable dividend income, if any, does Madison recognize in 2009?
Madison doesn't have to recognize any income because she is not getting any. Only after Madison decides to sell his stocks will he recognize any taxable income if she makes a gain.
b. What is Madison's income tax basis in her new and existing stock in Badger Corporation, assuming the distribution is non-taxable?
Madison current basis is $100 per stock, and after the stock dividend it will be $100 / 1.1 = $90.91 per stock
c. How would you answer questions a and b if Madison was offered the choice between 1 share of stock in Badger for each 10 shares she owned or $100 cash for each 10 shares she owned in Badger?
then the cash dividend would be $10 per stock, which results in $10 x 1,000 = $10,000 taxable income. Her basis in the stock will remain not change.
The income statements for Federer Sports Apparel for 2022 and 2021 are presented below.
FEDERER SPORTS APPAR
Income Statement
For the Years Ended December 31
Year Increase Decrease
2019 2018 Amount %
Net sales 18,800,000 15,500,000
Cost of goods 13,200,000 7,000,000
Gross prof 5,600,000 8,500,000
Operating expenses 1,600,000 1,200,000
Depreciation expense 1,000,000 1,000,000
Inventory write-down 200,000 0
Loss (litigation) 1,500,000 300,000
Required:
Prepare a horizontal analysis for 2022 using 2021 as the base year.
Answer and Explanation:
The Preparation of horizontal analysis for 2022 using 2021 as the base year is prepared with the help of a spreadsheet.
Horizontal analysis is a method for the analysis of financial statements that indicates fluctuations in the amount of the related products over a period of time. It is a valuable instrument for determining trend situations.
So, with the help of the spreadsheet, we will be able to find the net income by using the formulas.
The horizontal analysis of the Income Statement is the analytical form of preparing the income statement to determine the accurate amount and percentage of changes in each item of the income statement.
The horizontal income statement is attached below.
The horizontal analysis determines the change in the amounts of each account. The percentage change is the division of a change in amount by the base amount of the base year.
In this case, the base year was 2021.
Therefore, the change in amounts will be determined based upon the figures of the base year.
To know more about horizontal analysis, refer to the link:
https://brainly.com/question/14698328
_____ refers to the choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted marketsA. Segmentation
B. Supply chain
C. Logistics
D. Marketing mix
E. Media plan
Answer:
D. Marketing mix.
Explanation:
Marketing mix refers to the choices about product attributes, distribution strategy, communication strategy, and pricing strategy that a firm offers its targeted markets.
Generally, a marketing mix is made up of the four (4) Ps;
1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.
2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.
3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.
4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.
King Company issued bonds with a face amount of $1,600,000 in 2015. As of January 1, 2020, the balance in Discount on Bonds Payable is $4,800. At that time, King redeemed the bonds at 102.Required:Assuming that no interest is payable, make the entry to record the redemption.
Answer:
January 1, 2020
Bonds Payable 1600000 Dr
Loss on Redemption of bonds 36800 Cr
Discount on Bonds Payable 4800 Cr
Cash 1632000 Cr
Explanation:
The redemption of bonds before the maturity usually requires a payment for redemption which is a certain percentage of its face value. It is usually higher than the face value. The above bonds are redeemed at 102 which means at 102% of the face value of the bonds. Thus, the cash paid to redeem the bonds is,
Cash = 1600000 * 102% = 1632000
The bonds have a carrying value, which is the face value less discount or add premium, of,
Carrying value = 1600000 - 4800 = $1595200
If they are redeemed for an amount in excess of the carrying value, they are redeemed at a loss.
The loss on redemption is,
Loss = 1595200 - 1632000 = $36800
Explain how to use the decision trees and Monte Carlo analysis for quantifying risk. Give an example of how you would use each technique on an IT project.
Answer:
The answer is below
Explanation:
Decision Tree Analysis is a form or type of quantitative risk assessment tool and techniques that involves a diagram that indicates the significances of choosing one or other alternatives.
In other words, the purpose of the tool is to assist you to select between several courses of action.
For example, lines are drawn towards the right for each possible solution, and then the solution is written along the line. Then evaluation of each alternative can be easily considered.
On the other hand, Monte Carlo Analysis is also a form or type of quantitative risk assessment tools and techniques that utilizes optimistic, most probable, and cynical estimates to infer the total project cost and project completion dates.
For example, an estimate of the probability of completing a project at a cost of $100M can be carried out using Monte Carlo Analysis
x
Your text outlines three basic categories of electronic commerce applications: business-to-consumer (B2C), business-to-business (B2B) and consumer-to-consumer (C2C). B2C applications:_______.
A. Involve businesses developing attractive electronic marketplaces to entice customers and sell products and services to consumers.
B. Involve both electronic business marketplaces and direct market links between businesses .
C. Involve consumers buying and selling with each other in an auction process at an auction website, as well as personal advertising of products or services to buy or sell at electronic newspaper sites or personal websites.
D. None of the choices are correct.
Answer:
A. Involve businesses developing attractive electronic marketplaces to entice customers and sell products and services to consumers.
Explanation:
The Business to Consumer (B2C) sales strategy corresponds to a type of sale aimed at the final consumer. This sale takes place at retail, and occurs according to the consumer purchase decision process, which identifies their needs, judges the options according to their preferences and desires and finally chooses the option that best suits their search for a particular product or service.
Therefore, in the B2C strategy, retail companies have as main objective to create in the consumer the desire for a purchase, so the most appropriate option for this issue is that developing attractive electronic markets will help the company to attract customers and sell products and services to consumers.
Founder of Vanguard, Jack Bogle, believes that all investors should buy stock indices. Group of answer choices He believes in strong form market efficiency. He believes in semi-strong form market efficiency. He believes in weak form market efficiency. He believes markets are not efficient.
Answer:
Correct Answer:
1. He believes in strong form market efficiency.
Explanation:
Jack Bogle believed that, in a situation where people simply buy an entire group of stocks as a result of investors investing money into the index fund, it will create a strong market. That is, if every investor in the world only purchased the same index fund, then the market of buyers and sellers would no longer set the fair market price of the stocks in the stock market.
A financial advisor informs a client that the expected return on a portfolio is 8% with a standard deviation of 12%. There is a 25% chance the return will be negative and a 15% chance that the return would be above 16%. Does her assessment follow a normal distribution? Calculate the probabilities for a normal distribution and compare.
Answer:
A) The assessment does not follow a normal distribution
B ) P(r<0) = 0.2546 ( from standard normal table ), P( r > 0.16 ) ≠ 0.15
Explanation:
Expected return on portfolio E (r) = 8%
Standard deviation (STD) = 12%
chances of Negative return P(r < 0 ) = 25%
calculate the probabilities for a normal distribution
E (r) = 0.08 , STD = 0.12, P(r < 0 ) = 0.25
P( r > 0.16 ) = 0.15
calculating the value of the probability P(r < 0 )
P(r < 0 ) = P [tex](Z < \frac{0-E(r)}{STD} )[/tex]
= P ( Z < [tex]\frac{0-0.08}{0.12}[/tex] )
= P ( Z < - 0.667 )
P(r<0) = 0.2546 ( from standard normal table )
calculating the value of the probability P( r > 0.16 )
P( r > 0.16 ) = [tex]P ( Z > \frac{0.16- E(r)}{STD})[/tex]
= P ( Z > [tex]\frac{0.16-0.08}{0.12}[/tex] )
= P ( Z > 0.667 )
to compare if p(r>0.16 ) is = 0.15
P(R > 0.16 ) = 1 - P ( Z < 0.667 )
= 1 - 0.7454 ( value from standard normal table )
= 0.2546
hence P( r > 0.16 ) ≠ 0.15
The assessment does not follow a normal distribution
Charlie hopes to accumulate $83,000 in a savings account in 10 years. If he wishes to make a single deposit today and the bank pays 3 percent compounded annually on deposits of this size, how much should Charlie deposit in the account
Answer:
PV= $61,759.80
Explanation:
Giving the following information:
Future value (FV)= $83,000
Number of years (n)= 10 years
Interest rate (i)= 3% compounded annually
To calculate the initial deposit, we need to use the following formula:
PV= FV/(1+i)^n
PV= 83,000 / (1.03^10)
PV= $61,759.80
Fed is open to changing bond policy Fed policymakers signaled for the first time that they could increase or decrease stimulation of the economy in the future, but not now. Source: Los Angeles Times, May 1, 2013 What are the ripple effects and time lags that the Fed must consider in deciding when to increase or decrease stimulation of the economy?
Answer:
When the Fed raises the federal funds rate, the inflation rate decreases about two years later.
Explanation:
When trying to stimulate the economy either by increasing or decreasing, policymakers have to take into consideration how it would effect interest rate, amount of money available in the economy, loans that would be acquired by banks and the behavior of interest rate.
Interest rate can be impacted quickly even though the period of time it would take for such action to have a reflection on what quantity of money is available in the economy. Then also a period of 2 years would be taken for this action to take effect on inflation.
Therefore
When the Fed raises the federal funds rate, the inflation rate decreases about two years later.
Zane, a new employee, is eager to get a promotion soon, and he hopes he can quickly rise through the ranks at the company. He decides to ask his supervisor, Mary, for professional development advice. This is an example of which of the following types of communication?
a. Downward
b. None of these are correct.
c. Upward
d. Horizontal
e. Diagonal
Answer:
C
Explanation:
Upward communication is communication from lower hierarchy in the organisation to higher hierarchy in the organisation
Downward communication is communication from higher hierarchy in the organisation to lower hierarchy in the organisation
Horizontal communication is communication within the same organisation hierarchy
Diagonal communication is cross functional communication between employees at different levels of the organisation
The central problem in product-oriented layout planning is?
Answer: The minimizing the imbalance in the workloads among workstations.
Explanation:
Workspace can inspire informal and productive encounters if it balances what three physical and social aspects.
A firm has net working capital of $2,715, net fixed assets of $22,407, sales of $31,350, and current liabilities of $3,908. How many dollars' worth of sales are generated from every $1 in total assets
Answer:
So, from every $1 of total assets, $1.08 worth of sales are generated.
Explanation:
To calculate how many dollars worth of sales are generated by $1 of total assets, we use the total assets turnover ratio. It is an accounting measure that measures the efficiency of the company's assets in generating sales. It calculates the dollar values of sales generated by each $1 of total assets. The formula for total assets turnover is,
Total Assets Turnover = Sales / Average Total Assets
We already know the level of sales. We need to determine the value of total assets first.
Total Assets = Fixed assets + Current Assets
As we know that net working capital = current assets - current liabilities,
So, the current assets are,
2715 = Current assets - 3908
2715 + 3908 = Current assets
Current assets = $6623
Total assets = 6623 + 22407
Total assets = $29030
Total Assets Turnover = 31350 / 29030
Total assets turnover = 1.0799 rounded off to 1.08
So, from every $1 of total assets, $1.08 worth of sales are generated.
In a(n) _____ decision, there may be several "right" answers, and there is no precise way to get a right answer. A. recurring B. ad hoc C. nonstructured D. structured
Answer:
C. nonstructured
Explanation:
-Recurring decision refers to a decision that has to be made regularly.
-Ad hoc decision refers to a decision made for a specific situation.
-Nonstructured decision is a decision that can have multiple solutions that are correct and you don't have a form to define which one is the right option.
-Structured decision is when you make a decision using a process that has been established to manage a specific situation.
According to this, the answer is that in a(n) nonstructured decision, there may be several "right" answers, and there is no precise way to get a right answer.
I have question with it can you help me please??
Answer:
Pick-up Later:
Set a pickup date
Process the transaction
Place all the items in the pickup area near the front of the store
Place a note on the items indicating they are sold.
Explanation:
The purpose of the above procedure is to enable the customer to take delivery of purchased goods hitch-free. The pick-up area needs to be covered against rain so that the mulch and topsoil do not degrade. It is assumed that the customer's contact information and payment have been secured before the arrangement for pick-up later.
A company reported that its bonds with a par value of $50,000 and a carrying value of $57,500 are retired for $60,600 cash, resulting in a loss of $3,100. The amount to be reported under cash flows from financing activities is:
Answer:
The amount this company would report under cash flows from financing activities is $60,600.
Explanation:
These cash flows of $60,600 represent the actual cash outflows, an amount that bondholders would receive from the company in retirement of the bonds. The statement of cash flows records the actual cash inflows and outflows of a company transactions during a particular accounting period. Every item is adjusted to reflect the actual cash flows. It is strictly based on the Cash Basis of accounting instead of the accrual basis.
Identify at least two challenges that Salesforce faces and explain why these are important challenges to Salesforce.
Answer:
Two challenges that Salesforce may face today:
1. Competitions
2. Cash Flows
Explanation:
1. Salesforce has been the global Software-as-a-Service (SaaS) provider for Customer Relationship Management (CRM) system. However, they are challenged by new market joiners such as Hubspot. There are also new startups offering free and simple cloud-based CRM systems that targetting small businesses. The entry of the new competitors seriously threatens the leading market share of Salesforce.
2. The current pandemic affected negatively to all enterprises, including Salesforce's outstanding customers. They should expect a drop in their total number of fee payers while the cost to maintain their high product standard is still the same as before. It may give them a lot of working capital headaches.
On August 1, 2010, a company issues bonds with a par value of $600,000. The bonds mature in 10 years and pay 6% annual interest, payable each February 1 and August 1. The bonds sold at $592,000. The company uses the straight-line method of amortizing bond discounts. The company's year-end is December 31. Prepare the general journal entry to record the interest accrued at December 31, 2010.
Answer:
Dr Discount on BP 8,000
Cr Cash 592,000
Cr Bond payable 600,000
Dr Interest expense 15,333.33
Cr Interest payable 15,000
Cr Discount on BP 333.33
Dr Interest payable 15,000
Dr interest expense 3,066.67
Cr Cash 18,000
Cr Discount on BP 333.33
Explanation:
Preparation of the general journal entry to record the interest accrued at December 31, 2010.
Based on the information given we were told that the company issues bonds with a par value of the amount of $600,000 in which the bonds mature in 10 years with a 6% annual interest and sold at the amount of $592,000 this means that the transaction will be recorded as:
Dr Discount on BP 8,000
(600,000-592,000)
Cr Cash 592,000
Cr Bond payable 600,000
(To record issuance of the bonds)
Dr Interest expense 15,333.33
Cr Interest payable 15,000 (600,000 x 6% x 5/12 )
Cr Discount on BP 333.33
(8,000 / (10years* 2 payment =400*5/6=333.33)
(To record year end adjustment entry)
Dr Interest payable 15,000
(600,000 x 6% x 5/12 )
Dr interest expense 3,066.67
(600,000 x 6% x 1/12=3,000)
(400 - 333.33= 66.67)
(3,000+66.67=3,066.67)
Cr Cash 18,000
(600,000 x 6% x 6/12)
Cr Discount on BP 333.33
(8,000 / (10years* 2 payment =400*5/6=333.33)
(To record first interest payment to bondholders)
Digby's turnover rate for this year is 6.33%. This rate is projected to remain the same next year and no further downsizing will occur from automating. What would the total recruiting cost be for Digby, assuming it spends the same amount extra above the $1,000 recruiting base as they did this year?
Answer:
Total recruitment cost = $316.5
Explanation:
Note:
Given question is incomplete,
The number of employees = 5,000
Given:
Turnover rate for this year = 6.33%
Find:
Total recruitment cost
Computation:
Total recruitment cost = Turnover rate for this year × The number of employees
Total recruitment cost = 5,000 × 6.33%
Total recruitment cost = $316.5
The total recruiting cost will be $316.5 for Digby.
Given information
Assumed the number of employees is 5,000
Turnover rate for this year = 6.33%
Total recruitment cost = Turnover rate for this year * The number of employees
Total recruitment cost = 5,000 * 6.33%
Total recruitment cost = $316.5
Therefore, the total recruiting cost will be $316.5 for Digby.
See similar solution here
brainly.com/question/17092501
assume the following information about the market and JumpMaster's stock. JumpMaster's beta = 1.50, the risk free rate 2%, the market risk premium is 10.0%. Using CAPM, what is the expected return for JumpMaster's stock?
Answer:
Expected market return = 17%
Explanation:
Given the Jump master’s beta = 1.50
Risk free rate = 2%
Market risk premium = 10%
To find the expected return we have to use the below formula.
Expected market return = Riskfree rate + Beta × Market risk premium
Now insert all the values in order to get the expected market return.
Expected market return = 2 + 1.50 × 10
Expected market return = 17%
DPMO stands for:______
a) Defects Per Million Opportunity
b) Defectives Per Million Opportunity
c) Data Per Million Opportunity
d) all of the above
e) none of the above
Answer:
a) Defects Per Million Opportunity
Explanation:
DPMO is an acronym which stands for Defects Per Million Opportunity. Defects per Million Opportunities refers to a standard metric which represents the number of defects in a process per one million opportunities.
In order to calculate the DPMO, we divide the number of defects by the number of opportunities and then multiply by a million.
Additionally, when a quality characteristics or properties do not tally with a standard or specifications it is generally referred to as a defect.
Hence, in a six sigma approach to quality or level of performance, the defects per million opportunities (DPMO) is 3.4.
Identify factors that could prevent an older, established company from effecting an enterprise-wide, customer-centric culture.
Answer:
A more established company may find it difficult to implement an enterprise-wide, customer-centric culture due to the following reasons:
A) Existence of a Multi-Product Business Model
A business entity that is well established with a lot of years under its belt will find it a tough challenge to shift from a product-oriented business model to a customer-oriented business model.
To be product-focused simply means that that a company has woven its organisational structure around products. For examples, a company that is into the gaming business may have teams for their Sports Betting Section, another for their online gaming section, game hardware section, gaming apps section etc.
First, for these various teams, their performance metric will largely depend on how functionally efficient their products are.
Second, techy or geeky staff are seldom efficient when it comes to emotional intelligence - a key requirement for being customer efficient.
One way to handle this is to ensure that there is a central Customer Relationship Management team that oversees the customers for each product.
B) Organisational Inflexibility
As direct to the point as it sounds, getting market intelligence for with the intention to use them for decision making is challenging. What is tougher is the ability to implement the insights from such intelligence to effect a turn around in the way customers perceive and respond to a company's offerings.
The ability to quickly take gather market intel, agree on a strategic direction based on same and execute can be referred to organisational agility.
The more bureaucratic and hierarchical an organisation is (this, by the way, characterises older and more established business systems) the less agile it is likely to be.
Cheers!
