ECON601 Managerial Economics

Please NOTE this is 2 case studies for same subject part 1 should be (1-2) page and part 2 should be (3-4) page please. Below is the instructions that how I should follow in part 1 and 2 , also there are 4 subjects you can choose only one ( whatever is easier for you ) please see the subjects below.

Reference book Managerial Economics (problem solving approach 3^rd or 4^th edition , ISBN-13: 978-1-305-25933-1

Case / Project Analysis

Part 1(1-2) page 20 points

Part 2(Final Analysis) (3-4) page30 points

Case / Project Analysis - The purpose of this final case/project assignment is to assess your ability to use the analytical tools you have learned in this class to solve a business problem.

The chapters in the text have given you the analytical tools you need to solve many business problems.The problems listed below illustrate scenarios faced by real businesses.

Chapter 24 in your text covers several examples.Your text authors and your instructor would offer several cautions/experience-based suggestions for your answers

CONSIDER THE FOLLOWING CAREFULLY:

"What about the organizational design?"Figure out what is causing the problem, and then think about how to avoid the problem. A lot of papers identified a bad decision, and then suggested reversing it. But they neglected to address the issue of why the bad decision was made, and how to make sure the same mistakes wouldn't be made in the future.

"Don't define the problem as the lack of your solution."For example, if the problem is "the lack of centralized purchasing," then you are locked into a solution of "centralized purchasing." Instead, define the problem as "high acquisition cost" and then examine "centralized purchasing" vs. "decentralized purchasing" (or some other alternative) as two solutions to the problem.

"What is the trade-off?"Every solution has costs as well as benefits. If you list only the benefits, it makes your analysis seem like an ex post rationalization of a foregone decision, rather than a careful weighing of the benefits and costs. If you spent some time thinking through the tradeoffs, show it. If not, then you should.

"What is the problem?" Please remember to actually identify and define the problem.This should be done before you begin to apply step #2 below.

Avoid mistaking the symptoms for the problem!

Part 1 Instructions -

1.Step #1 - Pick a business problem (pick only 1 from either the four choices or use your own scenario).You have two choices for how to proceed through this final assignment:

You can pick one of the problems identified below, or

You can develop/identify a problem of your own.Note:if you choose this second option, you MUST fully explain the problem (as in the problems provided) so that a determination of the reasonableness/correctness of your solution can be determined.

2.Step #2 - Identify and FULLY EXPLAIN the problem to be addressed AND the source of the problem

a.Start by answering our three questions

i.Who is making the bad decision?

ii.Does the decision maker have enough information to make a good decision?

iii.Does the decision maker have the incentive to make a good decision?

NOTE:Simply answering the three questions will NOT fully explain anything.

Part 2 Instructions - Including the pieces from part 1 above --

3.Step #3 - Given everything you have learned in this course, propose and DEFEND a solution to the problem identified in Part 1.

Procedural Issues/Guidelines -

Part 1 typically can be answered in 1-2 typed pages.Please be VERY specific in your problem identification and justify the source of the problem.You should pay specific attention to answering your instructor's favorite question - WHY?

The final analysis (which should include an edited/updated Part 1) will typically be between 3-4 pages in length and must include a complete theoretical justification/defense of your proposed solution.

DO NOT assume the reader knows the background materials.Your final analysis should be readable (and understood) by any colleague from your workplace.

Treat this final analysis as a policy brief written for your immediate supervisor.

Addressing the issues included the feedback you receive on Part 1 is essential to the success of the final analysis.

Possible Business Problems - Note: These problems are based on real-world situations and borrow heavily from published news stories and academic articles/postings (citations are available).Please do not simply "Google" possible answers (your instructor does know how to follow this path).

#1 - Inefficient allocation of donated kidneys for transplant.

On average, approximately 5,000 people die annually while waiting for kidney transplants in the United States.And yet, as in each of the last five years, more than 2,600 kidneys were recovered from deceased donors and then discarded without being transplanted, government data show (information is taken from a 2012 NY Times article, but is still relevant in 2017).

Those organs typically wound up in a research laboratory or medical waste incinerator.In many instances, organs that seemed promising for transplant based on the age and health of the donor were discovered to have problems that made them not viable.But many experts agree that a significant number of discarded kidneys perhaps even half, some believe could be transplanted if the system for allocating them better matched the right organ to the right recipient in the right amount of time.

One reason for this inefficiency is the government's performance evaluation metric for transplant programs:If the number of failures exceeds expected levels by 50 percent, the program is put on a watch list and risk decertification.As physicians control the transplant decisions and have an interest in the success of transplant programs, the government "incentive" encourages physicians to reject all but the best candidates for transplant.

What would you suggest as a solution to the problem of the allocation of kidneys?

#2 - Retiring Employees - Lost Knowledge

As my generation (baby boomers) leave the workforce over the next couple of decades, will the remaining employees be equipped to maintain the level of knowledge necessary to run American business?

This is actually a simple, but far reaching problem:A huge number of current employees who possess a great wealth of institutional knowledge will be eligible to retire over the next 10 to 15 years.In general, businesses have done very little to facilitate the transfer of this knowledge from more experienced (old) workers to less experienced (young) workers.The base of the problem is that experienced workers have virtually no incentive to pass their knowledge forward and younger workers do not see the need to be receptive to the additional "training."

What would you suggest a company do to both encourage older workers to pass on their knowledge and for younger workers to receive the knowledge?

#3 - Ever Increasing Hospital Pharmacy Costs

Each year, hospital executives are faced with the same daunting task of finding ways to tighten the budget belt one more notch. It's a sign of the times against looming and in some cases significant reimbursement cuts from Medicare and a regulatory backdrop demanding more for less.

Historically, the pharmacy department represents one of a hospital's highest cost centers. Keeping pace with rising drug costs and staffing needs account for the majority of the pharmacy budget and are the main drivers of annual requests for increases. However, while the clinical side of the house focuses on gaining access to medical advances and newer, more effective drug treatments, the finance department is focused on, at best, maintaining the status quo in terms of pharmacy spending.

It's a double-edged sword. New regulations and quality expectations are requiring that pharmacies allocate more resources to ensure that appropriate initiatives are in place that promote the highest level of patient care and safety. At the same time, the pharmacy represents a prime area of focus for improving cost efficiencies and benchmarks for appropriate reimbursement.

Going forward, hospital pharmacies will have to improve operational practices to ensure staff time is used for the most optimal tasks.What would you suggest as some options/solutions?

#4 - Shirking by hotel housekeeping staff.

Hotel housekeeping staff are paid minimum wage and receive almost no tips as most travelers either do not tip or are "not aware" that tipping housekeeping staff is a commonly accepted practice.Further, housekeeping staff are typically operating on a strict time schedule and must complete their assigned tasks on schedule which further adds stress to their job.

A quote from the travel magazine Budget Travel in which a housekeeper relates:

I cut corners everywhere I could.Instead of vacuuming, I found that just picking up the larger crumbs from the carpet would do.Rather that scrub the tub with hot water, sometimes it was just a spray-and-wipe kind of day... After several weeks on the job, I discovered that the staff leader who inspected the rooms couldn't tell the difference between a clean sink and one that was simply dry, so I would often just run a rag over the wet spots... I apologize to you now if you every stayed in one of my rooms.You deserved better.But if housekeepers were paid more than minimum wage - and the tips were a bit better - I might have cleaned your toilet rather than just flushed it.

What would you suggest hotel managers and/or owners do to minimize or eliminate this behavior by housekeeping staff?