Why do you think alex took active role in supporting drug

Assignment Help Managerial Economics
Reference no: EM13920743

Alex Cohen is the general manager of the textile division in a large diversified company. Recently, Alex argued strongly to the CEO that an expansion request by the drug division be approved. On the surface, Alex's actions seem strange, given that Alex is not affected by this decision (it does not affect his budget or his compensation). Further, Alex spent substantial time developing his presentation for the CEO.

a. Why do you think Alex took such an active role in supporting the drug division's request?

b. Since Alex is not affected by the decision, should the CEO consider Alex as an unbiased observer who is focused on trying to maximize company value? Explain.

Reference no: EM13920743

Questions Cloud

What have motivated management to make the dramatic increase : What might have motivated management to make this dramatic increase in leverage, given that it placed the firm in a near "financial crisis"?
Define entrepreneurship and intrapreneurship : Discuss the advantages or disadvantages that have resulted from the particular approach. Discuss the challenges faced in bringing the innovated product to the market.
Tail-flagging and antipredator signals in white-tailed deer : Was the method used to test the predictions experimental - The time duration for which the jerk lasted was also calculated and kept in the record
Barriers to entry and product homogeneity : How do you think barriers to entry and product homogeneity affect the competitive nature of industries? For example, why do some agricultural products, such as wheat and soybeans, tend to fit the definition of perfectly competitive markets more th..
Why do you think alex took active role in supporting drug : Alex Cohen is the general manager of the textile division in a large diversified company. Why do you think Alex took such an active role in supporting the drug division's request?
Explain the nature of competition in a market : Explain the nature of competition in a market that is characterized by a high barrier to entry and a significant product homogeneity. Provide a detailed example, and support your point of view.
Effect of density age and weight on the percent body : Effect of the style (g=Gothic, r=Romanesque) on the total length (y) of English medieval cathedrals, accounting for nave height (x) in cathedral dataset from faraway package. Effect of density, age and weight on the percent body fat (brozek) in fat..
What is the probability that carl arrives first : What is the probability that Carl arrives first? For the rest of this problem, assume that Carl arrives rst at 1:10 pm, and condition on this fact.
Problem regarding the childhood obesity epidemic : Do you think there is any difference with how private schools handle the childhood obesity epidemic that is different from public schools? If so why and if no why not?

Reviews

Write a Review

Managerial Economics Questions & Answers

  Question about forex market

A 3*9 FRA has an agreement rate of 4.75 percent. You believe 6M libor in 3M will be 5.125 percent. You decide to take a speculative position in a FRA with a $1,000,000 notional value

  Calculate labor productivity

An Appliance Service firm made home calls and repaired ten lawn movers, two refrigerators, and three washers in an 8-hour day with his standard crew of 3 workers.

  Policies could be adopted to reduce urban

What policies could be adopted to reduce urban unemployment in developing countries?

  Perspective of the vertical chain and production process

The objective is to understand the vertical boundaries a company or firm or organisation from the perspective of the vertical chain and the production process.

  Why would marriott worry about the quality of hotels

What type of agency problem is involved here - why would Marriott worry about the quality of hotels it doesn't own but franchises and identify firms that periodically shut down their operations. What are the conditions that exist when they shut down..

  Problemtwo competing hospitals in small city can choose

problemtwo competing hospitals in small city can choose whether to offer only basic health care all-purpose care or

  How the company can improve its profitability

Recommend how the company can improve its profitability to deliver more value to its stakeholders. Then, develop a brief plan to implement the recommendations.

  Describe any non-price competitive strategies

Describe the company and provide a brief history of its operations. Find or use graphs to illustrate its financial performance over the years - Determine if the company has introduced new products in existing markets or created new markets over tim..

  Each of the different types of unemployment

Consider the most appropriate policy for tackling each of the different types of unemployment.

  The relationship between the demand for money and the rate o

1. Why might the relationship between the demand for money and the rate of interest be an unstable one?

  Kinds of pricing and output strategies that katrina

Kinds of pricing and output strategies that Katrina's Candies should use to reach the goal of profit maximization. Suggest key modifications that Katrina's Candies should make in order to maintain a competitive advantage when new entrants enter the m..

  .why are both the price elasticity of demand

1.Why are both the price elasticity of demand and the price elasticity of supply likely to be greater in the long run?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd