Why had Carvel not been as successful in China as it had expected?
What will be an ideal response?
I. Problem of quality control: Dust, pollution, and coal ash found in Beijing made it difficult to keep the work area
clean.
II. Problem of production:
A. Water in Beijing was not potable. Therefore, it had to be boiled and filtered before it could be used.
B. Carvel was accustomed to using single use items in its production for sanitation reasons. China considered
this a waste. Thus, cultural outlook became a problem here.
III. High cost of imported inputs: Items such as nuts, flavorings, fruit fillings had to be imported from the United
States.
IV. High labor costs: In addition to the fact that the employees demanded higher wages from a foreign company,
government payroll tax and additional contribution for health care, training, and child care costs raised the labor
expenses to 149 percent of their actual cost.
V. Lack of market understanding: Carvel did not understand the factors that impacted ice cream sales in the
market. They assumed that the market would develop along the U.S. lines.
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A) is best placed near the end of your communication B) should not be stated at the beginning of your message C) should be stated before the supporting details D) should be included near the end of your message so as not to be overshadowed by the supporting details E) is best not stated explicitly
A cash flow per share amount should be reported on the statement of cash flows
Indicate whether the statement is true or false
Most analysts prefer to use future EPS, rather than past EPS, in valuing a stock
Indicate whether the statement is true or false.
One problem that can occur in downward communication is
A) failure to record conversations. B) too much transparency. C) lack of variation in the mode of transmission. D) failure to protect one another's feelings. E) lack of openness.