Spring Quarter 2015 First Class Assignments April 1, 2015

Spring Quarter 2015
First Class Assignments
April 1, 2015
First Class Assignments is published each term to inform students of assignments to be prepared
before the first class meeting. These pre-assignments are mandatory for students enrolled in the
class and strongly recommended for those who hope to add any of these courses during subsequent
phases of registration.
COURSES WITH A PRE-ASSIGNMENT:
30001-01/81
Gallemore, John
Bridgeton Industries: Automotive Component & Fabrication Plant
Case Assignment
This case previews many of the subjects that we will cover in the course. Read the case and work through the following
questions. The assignment is to be turned in via Chalk prior to the start of the first class.
Questions
1. The overhead allocation rate used in the 1987 model-year strategy study at the Automotive Component & Fabrication Plant
(ACF) was 435% of direct labor dollar cost. Calculate the overhead allocation rate using the 1987 model year budget. Calculate
the overhead allocation rate for each of the model years 1988 through 1990. Are the changes since 1987 in overhead
allocation rates significant? Why have these changes occurred?
2. Consider two products in the same product line:
Product 1 Product 2
Expected Selling Price
$62
$54
Standard Material Cost
16
27
Standard Labor Cost
6
3
Calculate the expected gross margins as a percentage of selling price on each product based on the 1988 and 1990 model year
budgets, assuming selling price and material and labor cost do not change from standard.
3. Assume that selling prices, volumes, and material costs for the 1991 model year will not change for fuel tanks and doors
produced by the ACF of Bridgeton Industries. Assume also that if manifolds are produced, their selling prices, volume, and
material costs will not change either.
Prepare an estimated model year budget for the ACF in 1991:
(i) if no additional products are dropped; and
(ii) if the manifold product line is dropped.
What will be the overhead allocation rate under the two scenarios? Explain any additional assumptions you make in preparing
your estimated model year budgets.
Definitions
I often receive inquiries about the first class assignment. I do not answer these questions to ensure everyone has access to the
same information set. In addition, I want you to reason through the concepts in the case as opposed to plugging numbers into
formulas. The following definitions may help you understand the case and questions:
(Manufacturing) Overhead
All manufacturing costs that are not directly assigned to specific products. For example, direct labor and direct materials are
not considered overhead. Depreciation and utilities are generally considered overhead.
Overhead Allocation Rate = Overhead for Period / Allocation Base for Period
Examples of allocation bases include: direct labor dollars, direct labor hours, machine hours, direct material dollars, etc.
Gross Margin = Sales Revenue - Cost of Goods Sold
This should be familiar from introductory financial accounting.
Standard Cost
Essentially, the expected (or budgeted) cost for a given period
Spring Quarter 2015
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30000-02/82/85
Gao, Pingyang
You should read Chapter 1, 2 and 3 and work on the self-study problems in the three chapters to get some sense about this
course. You should also familiarize yourself with the course web platform at http://chalk.uchicago.edu and look at the course
material posted there.
30117-01/02/85
Sapra, Haresh
Please download the assignment from the 30117 course web site (https://chalk.uchicago.edu/). Note that the assignment
would be available about two weeks before the 1st day of class. The first class assignment is geared towards testing your
knowledge of basic Microsoft Excel functions, basic accounting and tax skills, as well as providing a brief preview of some of
the concepts you will be learning in this course. Therefore, if you find this assignment challenging, I would advise you to not
take this course.
This assignment should be submitted using Chalk by 11:59 PM on Tuesday March 31, 2015. Instructions on how do so would
be provided with the assignment. Please do not email your assignment to me!
30118-01/85
Read the following:
Weiss, Ira
th
1.
Chapters 1 and 2 of the textbook, Taxes and Business Strategy, 4 Edition (Scholes, Wolfson, Erickson, Maydew and Shevlin)
2.
Short Articles:
3.
th
i.
How Much Will Your Taxes Jump? (WSJ, January 5 , 2013)
ii.
Financial Page: Dodger Mania (The New Yorker, July 11 and 18 , 2011)
iii.
Nurse Outduels IRS Over MBA Tuition: How One Woman Went to Tax Court and Won Deduction. (WSJ, January
th
9 , 2010).
iv.
M.B.A. Students May Lose Their Tax Break (WSJ, August 17, 2004)
v.
Deducting and MBA Candidate’s Educational Expenses. Tax Notes Today, October 28 , 2008, by Robert Willens
vi.
Tax Tips for M.B.A. Students, by Ira Weiss
th
th
th
Optional Background Reading
(i) Background: Fundamental Tax Concepts
33001-81/85
Shivakumar, Ram
Please read Chapter 1 (pages 1-12) and Chapter 2 (pages 26-59) from Besanko and Braeutigam and be prepared to answer
questions.
33040-01/02/81
See syllabus under Topic 0.
Karabarbounis, Loukas
33305-01/02/81
A. Get the textbook
Bertrand, Marianne
B.
Do the readings for week 1 as outlined in the syllabus (textbook+Chalk)
C.
Prepare a two-page write-up on the case “Uber: 21 Century Technology Confronts 20 Century Regulation” and be
ready to discuss this case in class. (See syllabus for guidelines on the write-ups.)
st
th
In particular, consider the following questions (and focus on the question in bold for your memo):
1) What alternatives did Uber have to address regulatory issues when beginning service in new cities? What are
the benefits and difficulties with each?
2) How do you expect the incumbent taxi operators to respond to the Uber’s entry into D.C.?
3) What should Uber do in the face of the proposed D.C. legislation?
Spring Quarter 2015
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33402-01
Kashyap, Anil
Download the week 1 reading assignment from chalk. (If you are not registered the readings are also at
http://faculty.chicagobooth.edu/anil.kashyap/teaching.html ). You should skim the first 19 pages of the chapter by Issing et
al, then read the WSJ article, the speech by Blinder and the notes on modeling monetary policy carefully.
Be sure to fill out the student information sheet and bring that to class.
The week 1 slides are included to help people who are shopping gauge the difficulty of the course. If you are struggling to
understand these slides this is a good indication that you should find another course. There is no homework due this week,
but we will use the model introduced in this class over and over, so it is important that you learn it.
33503-01/81
Dingel, Jonathan
Read the syllabus. Do the readings for week 1 indicated on the syllabus.
34102-01
Schrager, James
You must attend the first class if you want to try and add the course.
34102-81
Bunch, Gregory
The assignment for the first class is to come up with a 30 second elevator pitch for a new venture that you would like to start.
Even if you do not plan to start a new venture in the near future, think of a problem you would like to solve that could lead to
a startup.
You will give your pitch on the first night. Follow this format:
- Describe the problem being solved
- For whom
- Estimate the size of the market
- How you will solve it
- Your background for addressing this issue.
Write a 1 page description (400 words or less) to accompany this pitch. Follow the same format as above. The written piece
will be handed in on the first night; put a cover page on it with your name.
Your idea can be at any stage from initial concept to initial operations (i.e., working demo, initial customers, etc). It can be
something you plan to present at New Venture Challenge. It may not be a fully functioning and/or well-funded company.
It may or may not end up being the project your group will choose to work on.
Typically, the best ideas come from areas in which students have domain expertise.
If you have questions about the assignment, feel free to contact me.
35000-01/81
Hassan, Tarek
Read chapters 1, 2, 3, and 5 in the Bodie, Kane, and Marcus (BKM) text book.
Please give brief responses to each of these questions (not more than 1.5 pages altogether)
1. What is the difference between a real and financial asset?
2. What is financial innovation and securitization? (give an example)
3. What are Treasury Bills and Bonds? How do they differ from Municipal and Corporate Bonds?
4. Why are these called \fixed income" instruments?
5. What is a stock or equity? How does equity (a stock) differ from debt (a bond)?
6. When trading securities, what are the key components of trading costs?
7. What is short selling?
8. What is the yield to maturity of a bond? How is this related to the bond's price?
9. What is a zero coupon versus coupon paying bond? (give an example)
10. What is a mutual fund? What is a stock index?
Spring Quarter 2015
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35120-01/02/81
Pastor, Lubos
The first class assignment is available on http://faculty.chicagobooth.edu/lubos.pastor/teaching/. It will also be available on
Chalk when we get closer to the beginning of the spring quarter. You can work on the assignment in groups of at most four
people. The assignment will be graded. The assignment is due on the day of the first class (April 3) before the class begins.
Please upload your solutions on Chalk following the instructions in the syllabus. If you have any trouble uploading, you can
also turn in a hardcopy in class, but beginning with the second assignment, only Chalk submissions (and no hardcopies or
email submissions) will be accepted.
35131-81
Veronesi, Pietro
The course assignment can be found on the course web site
http://faculty.chicagobooth.edu/pietro.veronesi/teaching/private/BUS35131/Assignments/class1q.PDF
37201-01/81
Middlebrooks, Arthur
 Read from the textbook: Chapter 2, and Chapter 5 pp. 130-140.
 Read “The Voice of the Customer” article from the PDMA ToolBook.
38001-01/02/81
Fishbach, Ayelet
Welcome to Managing in Organizations. This course is about people – how people think and how people behave – and is
intended to provide core concepts and basic knowledge necessary to manage people effectively.
Before our first class, please prepare the following:
1. Read the syllabus and understand the course requirements.
2. Purchase the required books and check that you have access to the readings on Chalk.
3. Read:
Case: Keller: A Tale of Two Plants: NUMMI Teamwork Versus GM Bureaucracy
Answer for yourself and bring your written notes to class. You’ll need your notes for our case discussion (do not hand in):
A. How did NUMMI try to turn an uncompetitive production plant around?
B. What changes in structure, labor practices and management philosophy did NUMMI implement in order to make them
more competitive?
C. How did the different parts of the organizational system support each other?
Read:
Gladwell: Outliers: Chapters 1 & 2. While reading, consider the following questions:
A. Gladwell suggests that people’s circumstances may contribute to their special performance. How can you apply this insight
to management?
B. What is the “10,000-hour rule?” What are the evidence and examples for this rule?
38001-03/04/82
Caruso, Eugene
Before our first class, please prepare the following:
1. Read the syllabus and understand the course requirements.
2. Purchase the course pack and the required books.
3. Read:
Keller: A Tale of Two Plants: NUMMI Teamwork Versus GM Bureaucracy
Answer the questions below for yourself and bring your written notes to class.
Do not hand in your notes; you will need them for our case discussion.
A. How did NUMMI try to turn an uncompetitive production plant around?
B. What changes in structure, labor practices, and management philosophy did NUMMI implement in order to
make them more competitive?
C. How did the different parts of the organizational system support each other?
4. Read:
5. Gladwell: Outliers (Chapters 1 and 2)
6. While reading, consider the following questions:
A. Gladwell suggests that people’s circumstances may contribute to their special performance. How can you
Spring Quarter 2015
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B.
apply this insight to management?
What is the “10,000‐hour rule?” What are the evidence and examples for this rule?
38002-01/02
Risen, Jane
Read: Syllabus (Chalk)
Anna Muoio (1998). “Decisions, Decisions” Fast Company 18. (Chalk)
Winning Decisions: Introduction and Chapter 1 (required text)
George Wu (1994). “Decision Analysis”, HBS case (9-894-004) (Chalk)
David E. Bell (1981). “John Brown (A)”, HBS case (9-182-127) (Chalk)
David E. Bell (1981). “John Brown (B)”, HBS case (9-182-129) (Chalk)
Complete Web Surveys 1a and 1b: The link to each survey can be found under “Assignments” in Chalk. Web Survey 1a is a
general survey and Web survey 1b is based on your reading of the John Brown case. You should complete both surveys by
Tuesday March 31, 9:00am.
38003-01/85
Caruso, Heather
1. Purchase the following required books:
a. Jeffrey Pfeffer (2010). Power: Why Some People Have It—and Others Don’t
th
b. Robert Cialdini (2001/2009). Influence: Science and Practice. (5 Edition.)
2.
Log in to the Chalk site, review the syllabus, and complete the “Background Questionnaire” in the
[Assignments][Due Week 1] section.
3.
Read the following:
1
a. (CK ) Excerpts from On Leadership (from Chapter 6: Power)
b. (CK) World-Class Bull
c. (CK) Martha Rinaldi
4.
When you come to class, be prepared to share your thoughts on the questions below.
a. Consider the actions of Chris Knox, from the “World Class Bull” case. How would behavior like Knox’s be
viewed in organizations you’ve worked in? What, if anything, would people find commendable, or
contemptible? If you’re currently employed, would Knox (or someone like him) be likely to become a
powerful person in your organization? Why or why not?
b. How did Martha Rinaldi get herself into such a difficult situation? Could she have done anything differently
to achieve better results? What should she do now?
c. Many people find that they are uncomfortable, and (often consequently) ineffective in navigating
organizational politics. Why? Are there social norms, culture, education, or other common life experiences
that typically help or hinder a person in this arena?
381003-04/82
Zinchenko, Elena
1. Essentials of Negotiation. Sebenius, James K. pp. 1-8. Case No. N2-894-012. Published November 18, 1993. Harvard
Business School Publishing, (8 pages).
2.
Negotiating Rationally; Chapter 1, pp 1-5. Max Bazerman and Margaret Neale, Negotiating Rationally (New York:
Free Press, 1994)
3.
(optional) Decision Analysis. Wu, George. Case No. 9-894-004. Published 08/03/1993, Revised 12/04/1997. Harvard
Business School Publishing, (14 pages).
38105-01/02/81
Wu, George
The First Class Assignment is found here:
http://faculty.chicagobooth.edu/george.wu/teaching/private/38105/class1.htm
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39001-01/81/85
Pontikes, Elizabeth
This assignment requires careful reading, followed by a written response to the question below, which is due prior to the
beginning of your section. If you think there is any chance you will enroll in the class, be certain to complete this assignment.
Please submit your response over email to strategystructure01@gmail.com if you are in the 01 section,
strategystructure02@gmail.com if you are in the 02 section, and strategystructure81@gmail.com if you are in the 81 section.
Begin by reading the following:
Wal-Mart Stores, Inc
Bossidy & Charan (2002) “Introduction,” Ch. 1, Execution.
Pontikes, E.G. Note on “Strategy Identification.”
Podolny, Roberts and Hannan, Note on “The Nature and Purpose of the Firm.”
Next, provide a written answer to the following two questions. You must answer both questions.
Be sure to include concepts from the reading in your write-up. Please keep the total number of words, inclusive of both
questions, under 1000 (inclusive of both questions), focusing on the quality of your response, rather than the quantity.
1. In your opinion, what were the key factors that led to Wal-Mart’s success? What elements detracted from their success?
Why?
In recent years, Wal-Mart had become a target of labor and environmental activists, and reputation issues became a problem
for Wal-Mart. In 2005, Wal-Mart’s (then) CEO H. Lee Scott
Jr. met with some of the most influential environmentalists. He thought he could transform Wal-Mart’s image. Subsequently,
the company adopted a sustainability program that remade the company, from the materials used to build stores to the light
bulbs stocked on its shelves. Longterm goals include running operations solely on renewable energy, creating zero waste, and
selling products that sustain the earth’s resources and environments.
2. Consider what you read in the case about how Wal-Mart built its success, its strategy, and its sources of competitive
advantage. Considering this, and drawing on lessons from the readings, do you think this initiative is a good idea? Why or why
not? What are the pros and cons?
40000-02/03/85
Ryan, Christopher
1. Purchase The Goal.
2. Read The Goal through page 62.
3. Access the Chalk folder for Week 1: Content (by week) > Week 1
4. Read the article “Deep Change” found on Chalk.
5. Read the case “Varsity Subs” found on Chalk.
6. If needed, review “Basic Concepts in Probability” found on Chalk.
41202-01/81
Tsay, Ruey
Read pre-class note on the course web:
http://faculty.chicagobooth.edu/ruey.tsay/teaching/bs41202/sp2015/
42001-01/82/85
Mahoney, Neale
• Read over the syllabus
• Familiarize yourself with course reserves section on Chalk and purchase the Cabral and Stone books
• Read the chapters from Cabral and the Porter article
• Read the case “Cola Wars Continue”
• Prepare for a discussion of the case based on the week 1 discussion questions
For the first week, you do not need to turn in a memorandum. Make sure you are prepared for the discussion, however.
Note: This class will draw heavily on material from your microeconomics class. If you are unsure of your command of that
material, I strongly recommend that you spend some time reviewing it before we begin. The chapters from the Cabral book
assigned for the first week, along with chapters 2 and 4 (which are not assigned), can serve as a guide.
Spring Quarter 2015
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42121-81
Morrissette, Stephen
Please access the Chalk site and complete the tasks listed in the “Pre-Work” folder in the Course Documents area prior to the
first class meeting. If you are not yet officially registered for the course and do not have access to the Chalk site for this
course, please email the professor at stephen.morrissette@chicagobooth.edu to obtain access to the materials.
Spring Quarter 2015
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