...Chapter 1 * Box 1: The ford company when it starting paid employees more then the going rate by lowering their production cost(efficiency wage theory) to have them stay more once wage was brought up to 5$ there was an 87% quit rate , 90% discharge and 75% increases for absents. Basically better treated employee the better ur business will be. * Box2: Talks about Patriarchy where men benefit socially and materially for women’s work, happened in Africa where women do most of the agricultural labor. Karl Marx believed that including women in work place would cause the last remnant of male domination and the home will lose their foundation, also in new Mexico men and women were equal but it changed when they were forced to head to Colorado. * Box3: Monopolist can ^price making customers go to substitutes, in the cases of wheelchair(wc) from Everest and Jennings had 90% of the WC market they prevented foreign exchange. All this changed in the 80’s they starting testing product because it was so cheap, more lawsuits were made making it harder for e&j to continue following their unethical steps * Box4: Income rate in U.S with 40 mil uninsured because health care company do not cover most procedure especially the ones that have low success rate. Senator Vance hartke debate in congress that life and death shouldn’t be base on $$ coming from noncovered kidney dialysis, bill passed 39% ^ in covered people bout 150K people, now from 606 procedures not covered now...
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...4021 REV: MARCH 1, 2010 ERIK STAFFORD JOEL L. HEILPRIN JEFFREY DEVOLDER Hansson Private Label, Inc.: Evaluating an Investment in Expansion Introduction On a frigid Sunday night in late February 2008, Tucker Hansson pored over a proposal developed by his firm’s manufacturing team. It called for investing $50 million to expand production capacity at Hansson Private Label (Hansson or HPL). For Hansson, a private company, this would be a significant investment. The company had not initiated a project of that magnitude for more than a decade, and the expansion wasn’t without significant risk. It would be likely to double HPL’s debt and to greatly increase customer concentration. This was a critical juncture for the firm Tucker Hansson had carefully built over 15 years. He wondered whether the return on investment would be large enough to justify the effort and risk. He also wondered about the best means of evaluating the potential investment. HPL manufactured personal care products—soap, shampoo, mouthwash, shaving cream, sunscreen, and the like—all sold under the brand label of one or another of HPL’s retail partners, which included supermarkets, drug stores, and mass merchants. The firm, whose sales had grown steadily over the years, generated $681 million in revenue in 2007. Three weeks earlier, HPL’s largest retail customer had told Hansson that it wanted to significantly increase HPL’s share of their private label manufacturing. Given that HPL was already operating near...
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