1. General Motors Company has entered into a contract to manufacture military-grade vehicles for the the US Department of Defense. The US Department of Defense insisted in the contract that GMC must establish strong internal control, so as to minimize incidents of fraud, corruption, and waste that can result in cost slippages. The US Department of Defense provided insights on GMC establishing internal consultants who will monitor tactical and operational decision making to deploy and use resources. Decision makers at GMC and project managers who represent the US Department of Defense agreed on supplementing existing organizational design with directors: the vice-price of finance with the director of budgeting; the vice-president of production with the director of engineering; vice-president of marketing with the director of quality assurance; vice-president of human resources with the direct of affirmative-action concerns.

Required:

(a) Illustrate the matrix organizational design with the details provided in the vignette,and explain the advantages of this organizational design.

(b) Show how the directors serve as internal consultants to the vice-presents in the General Motors Company, by inserting an upper-case "X" in the cells where the row(s) and column(s) intersect(s). In the matrix below, also show with an uppe-case "X" where other possibilities existbeyond the ones suggestedvice-presents anddirector may interact. Explain those other consulting possibilities.

	Vice President	Vice-President_	Vice-President	Vice-President
	Department of Finance	Department of Production	Departtment of Marketing	Department of Human Resources
Direct of Budgets
Direct of Quality Assurance
Direct of Affirmative Action Concerns
Director of Engineering

________________________________________________________________________________

Explanation (In a five-sentence paragraph):

2. Tesla, Inc. has opted to lease a new operating plant from Ford Manufacturer Company. The key decision makers assembled to assess if the decision to lease the new facility is the best among other alternatives. Jake Gentles who is a research scientist, with background in quantitative analysis or decision science, was commissioned to do a thorough analysis. He opted for the choice to adopt and use linear programming as an optimization model to assess for (1) minimum total cost to lease the facilities, (2) maximum of projected profit, and (3) most favorable projected revenue. Quotes were given on the (1) the cost for the 6,000 square feet of parking lot at $950 pers square feet, and (2) 4,300 square feet of factory building at $600 per square feet. The available facilities are in two neighboring locations. Location A has 1,500 square feet of space for factory, and 1,100 square feet of space for parking lot. Location B has 950 square feet of space for parking and 1,110 square feet of space for factory.

Required:

(a) Use linear programming as a decision-making model to determine the optimum (minimum) total cost for the lease.

(b) Use linear program as a decision-making model to determine the optimum (maximum) profit that will be realized from leasing the facilities.

(c) Use the calculated minimum total costs and the maximum total profit to project the revenue to be earned from leasing the facilities.

Minimization of Coot: C = 950x₁ + 600x₂

Subject to the following decision constraints:

\

	Facility A (x1)	Facility B (x2)	Assumption (Hypothesis)	Total Square Feet
Factorry
Parking Lot

Explanation:

Maximization of Profit: = ___?_y₁ + __?__y₂

Subject to the following decision constraints:

\

	Factory y1	Parking Lot y2	Assumption (Hypothesis)	Cost per Square Feet
Facility A
Facility B

Explanation:

\

3. George Miller was awarded $5,000,000 in a legal judgment from a lawsuit in which he sued a rival company for product disparagement. He has had a prolonged interest in establishing a merchandising business to buy and sell computer peripherals. He is faced with many options, but his interest is in five categories of computer peripherals that are in demand. He made a list of ten categories: (1) printers, (2) scanners, (3) mouses, (4) external modems, (5) external hard drives, (6) detachable cameras, (7) keyboards, (8) laptop carriage bags, (9) cables, and (10) detachable microphones. A focus group was assembled to aid Miller with the decision-making process. Miller and the focus group engaged in extensive discussions that involved the typical steps in the decision-making process.

Required:

(a) Follow the steps in the decision-making model to apply the information provided in the vignette.

(b) Provide a one-sentence definition for each expressed step.

(c) Provide an evaluationin a paragraph with at least five sentencesto express advantages of the five preferred categories of computer peripherals.

1. Define the problem.

Definition (in five-sentence paragraph)

2. Set up criteria and identify the set of options (i.e., 1 to 10)

(Definition)

1	2	3	4	5
Least Preferred	Less Prefrrred	Moderately Preferred	More Preferred	Most Preferred

	Computer Peripherals	Scale [i.e., 1, 2, 3, 4 or 5]
1
2
3
4
5
6
7
8
9
10

3. Scale the criteria to identify 7 out of the 10 options.

(Definition)

1	2	3	4	5
Least Preferred	Less Preferred	Moderately Preferred	More Preferred	Most Preferred

	Computer Peripherals	Scale [i.e., 1, 2, 3, 4 or 5]
1
2
3
4
5
6
7

4. Choose the best five options , (i.e.,, with the higher scaling)

(Definition)

1	2	3	4	5
Least Preferred	Less Preferred	Moderately Preferred	More Preferred	Most Preferred

t

	Computer Peripherals	Scale [i.e., 1, 2, 3, 4 or 5]
1
2
3
4
5

Evaluation of preferred five options (in a five-sentence paragraph):

(a) What: What value the five-preferred categories of computer peripherals will contribute to the company, since those are the product items that are in demand?

(b) How: How will the company function in the channel of distribution? (Hint: The company will operating in the middle between suppliers and actual customers in its product offerings).

(c) Where: Where the company will be most successful in its product offerings? (Hint: via the Internet, brick and mortar setting in urban or suburban locales?)

Evaluation:

.

4. With the many opportunities that exist in ecommerce, college students, graduates from major universities, and regular folks are engaged in doing business online. A suggested option is to ponder and possibly sell used college textbooks via the Internet. A viable source for merchandise is from the Ali Baba network of suppliers. Selling through the Amazon ecommerce platform is a feasible medium for online marketing.

Required:

(a) Use the steps in the planning process to devise a plan for an on-line merchandising company.

(b) Provide details, in five-sentence paraphs, to address the steps in the planning process.

1. Set smart, actionable, realist, and timely goals.

Explanation (in five-sentence paragraph)

2. Formulate commitment to execute the plan.

Explanation (in five-sentence paragraph)

3. Develop action plan

(a) Who?

(b) What?

(c) When?

(d) How?

Explanation (In five-sentence paragraph)

4. Track progress.

XYZ Company Budgeted Statement of Operations December 31, 2023
	(A) Budgeted	(B) Actual	(A) - (B) Variance
Sales	$130,000	$123,000	$7,000 (F)*
Variable Costs
Contribution Margin
Fixed Costs
Net Profit

*F = Favorable, U = Unfavorable