1. You are a management consultant for a 30-year old partner in a large law firm. In a meeting, your client says: "According to an article in the New York Times, 57 percent of large law firms have a mandatory retirement age for partners in the firm. Before they retire, partners are paid directly for the work that they do, and, as an owner, they are entitled to a share of the profits of the firm. Once they retire, partners do not receive either form of compensation. In light of this, I think we should eliminate mandatory retirement in order to gain a 'competitive advantage' in attracting high-quality lawyers to work for our firm. Of course, you are the expert." What do you recommend? Explain.
2. Automated Data Processing (ADP) provides computer software and services to a host of companies, including automobile dealerships. ADP charges dealerships a monthly lease for hardware, software, and support services, but does not charge for training the dealerships' employees. Dealerships need only pay for their employees' time and travel to ADP headquarters, where they attend "Software U" at no additional charge. Discuss the specialized investments (if any) made by an automobile dealership, its employees, and ADPand identify two potential vulnerabilities that a dealership faces under this arrangement.