Fired Up Pizza in North Carolina is a family restaurant that emphasizes good food, clean fun, and community involvement in a fairly conservative market. As such, the restaurant often supports or donates to local charities. One manager wants to support a race for breast cancer research and receives management approval. He did not check any social media outlets about the ace and simply put a post and link on the company's Facebook page to the group sponsoring the run. It turns out that the sponsor also runs an online dating site for "young, vibrant singles." The site features pictures of scantily clad females, supporting the breast cancer run. The site also asks supporters of the race to submit photos to post on the site.The company's support of the charitable event spread via social
media and many customers are offended. This led to complaints and threats to boycott the restaurant. In addition, two experienced and well-liked female servers quit in opposition to the restaurant's support of the event. Other employees support the cause and think the social media posts are creative ways to generate interest in the breast cancer race. The manager did not pull his support of the event based on the customer and employee responses. The manager was later suspended. He eventually sued the company, claiming that he acted within the current guidelines for posting about charities supported by Fired Up Pizza.Using the 3-Step Problem-Solving Approach and the Organizing Framework, identify the key problem and recommend steps for a possible solution.
What will be an ideal response?
Use the Organizing Framework in Figure 9.6 and the 3-Step Problem-Solving Approach to help identify inputs, processes, and outcomes relative to this case.
Step 1: Define the problem.
Look first at the Outcomes box of the Organizing Framework to help identify the important problem(s) in this case. Remember that a problem is a gap between a desired and current state. Use details in the case to determine the key problem. Is it the potential loss of income? Of reputation? Of staff? Why is this a problem?
Step 2: Identify causes of the problem by using material from this chapter, which has been summarized in the Organizing Framework for Chapter 9 and is shown in Figure 9.6.
Causes will tend to show up in either the Inputs box or the Processes box. Social media factors impact both inputs and processes here.
Step 3: Make your recommendations for solving the problem.
Consider whether you want to resolve it, solve it, or dissolve it. Which recommendation is desirable and feasible? What actions can you pursue to address the problem.
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a. It can have a positive impact on our relationships with others. b. It can help us get higher paying jobs. c. It can make others like us better. d. It can help us persuade and control others.
Practical capacity does not adjust for routine downtime in a production process
Indicate whether the statement is true or false
Profit under absorption costing may differ from profit determined under variable costing. How is this difference calculated?
a. Change in the quantity of all units in inventory times the relevant fixed costs per unit. b. Change in the quantity of all units produced times the relevant fixed costs per unit. c. Change in the quantity of all units in inventory times the relevant variable cost per unit. d. Change in the quantity of all units produced times the relevant variable cost per unit.
A company's current assets are $23,920, its quick assets are $14,090 and its current liabilities are $12,270. Its acid-test ratio equals:
A. 1.41. B. 0.51. C. 1.95. D. 0.871. E. 1.15.