Planning for sustainability, Strategic Management

Assignment Help:

A university has a small dorm with four rooms, in which three sophomores, A, E, and J, and a freshman, C, are residing. Not being equipped with gas/electricity meters for individual rooms, the dorm has charged each resident $20/month for the heating cost in lump sum manner during winter. The total payment of $80/month covers only a half of the full heating cost; the university has subsidized the dorm to cover the remainder. However, the university, facing tight budget, decides to abolish this subsidy starting next month and so the dorm is in need for some measures to avoid deficits.

There are potentially better ways to sustain the budget of the dorm than simply charging extra $20/month each, since residents can reduce total heating cost by lowering the preset room temperatures. Room temperature can be individually adjusted by each resident and, we assume that, dorm director can fully monitor preset temperature of each room. Moreover, when residents are chilled, new sweatshirts, upon purchase, will protect them against the cold. A sweatshirt costs $10. Residents are heterogeneous in terms of liquidity (cash reserves in hand) and each resident may or may not have enough cash to buy her own sweatshirt.

Unfortunately, the residents are not unified. The followings are the remarks by the residents in the recent round table discussion.

A: I cannot think of adjusting the room temperature, which is just comfortably set for me. Summer or winter, I grow up wearing T-shirt only in home; my long-sleeves are for outside use only. I have strong desire to light-clothing in home and so it does not make sense to buy a sweatshirt

E: I am ready to reduce the preset temperature in my room. I hope that the others show such commitments too. I am also keen to discuss and negotiate more individually.

J: I am fine to set an ambitious temperature target of my room. I should be able to handle it well with a thermal blanket which is stored in the closet now. However, this should not be a unilateral measure because it allows free riders. We must work together to reduce the total heating cost.

C: I get hot easily. Moreover, mine is a sun-flooded room on the second floor. I believe that the heating cost of my room is not as high as others. In addition, unlike others, I was not a beneficiary of the university's subsidy last year. Three sophomores are primarily responsible for the temperature cut and cost reduction.

You, as an agent for the dorm director, have advisory authority for this matter. Propose a plan to sustain the dorm's budget, while taking the circumstances and remarks as given. Describe how your plan works for each of the residents and explain how you mediate and convince them. When you need further assumptions for accurate reasoning, explicitly mention them.


Related Discussions:- Planning for sustainability

Performance management scenario, You are Pam, Vice President of Marketing f...

You are Pam, Vice President of Marketing for Superior Products, Inc. You joined the company two months ago, replacing an individual who hadbeen the VP of Marketing for the comp

Management strategic planning, You are an asset manager for a large public ...

You are an asset manager for a large public utility organisation. The organisation has a range of assets, ranging from major distributors to minor assets directly serving users (fo

Strength in swot analysis , Strength: Arpanaa is the only vegetarian re...

Strength: Arpanaa is the only vegetarian restaurant that offers good ambience and holistic experience for the people who visit the city. There is a free trip to the temples in

Principles of total quality, There are three principles of total quality: c...

There are three principles of total quality: customer focus, continuous improvement, and teamwork. Using the South University online library, find three articles that describe curr

Distinguishes between deliberate and emergent strategies, 1 .Characterize t...

1 .Characterize the culture of the organization in which you work. How does this culture affect the work of middle managers? Have you experienced deliberate interventions by senior

Four perspectives of the balanced scorecard, Four perspectives of the balan...

Four perspectives of the balanced scorecard Customer perspective e.g. what should we do right for our customers and what do they value? Internal perspective e.g. what

Strategic issues for global market-maximize sales ratio, (1.) Infosys follo...

(1.) Infosys follows a global delivery model that enables the company to maintain standards. The vertical differentiation strategy did help the company to gain control over the ope

Explain the importance of strategy development, Question 1: Custom Wine...

Question 1: Custom Wine Colorado Glasses of Leadville, Colorado, has just collected data from 75 defects from the day's production. a) As quality expert, you decide to con

Internal buying decisions, Transfer pricing is applied internally within a ...

Transfer pricing is applied internally within a group for management accounting purposes e.g. to measure the performance of divisions.   Increasing or decreasing an internal transf

Write Your Message!

Captcha
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