Tag: Management

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    Discuss the impact an individual's preconceived notions, prejudices, and interpretations of other cultures can have on the workplace. As a leader, describe how you might employ the psychodynamic approach to help the employees get along with each other and work better together. Include in your explan…

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    Discuss the impact an individual's preconceived notions, prejudices, and interpretations of other cultures can have on the workplace. As a leader, describe how you might employ the psychodynamic approach to help the employees get along with each other and work better together. Include in your explanation a discussion of how the four characteristics of conscious capitalism can also be applied to further improve employee engagement and collaboration.

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  • [Solved] FIN 6301 Unit VII SA

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    – ## CorporateFinanceFIN6301UnitVIIScholarlyActivity.docx – ## UnitVIStudyGuide.pdf – UnitVIIStudyGuide.pdf **## CorporateFinanceFIN6301UnitVIIScholarlyActivity.docx** 2 Corporate Finance ECO 6301 Unit VII Scholarly Activity This assignment measures your mastery of ULOs 3.1, 3.2, 5.4, and 5.5. You w…

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    – ## CorporateFinanceFIN6301UnitVIIScholarlyActivity.docx

    – ## UnitVIStudyGuide.pdf

    – UnitVIIStudyGuide.pdf

    **## CorporateFinanceFIN6301UnitVIIScholarlyActivity.docx**

    2

    Corporate Finance ECO 6301

    Unit VII Scholarly Activity

    This assignment measures your mastery of ULOs 3.1, 3.2, 5.4, and 5.5.

    You will use the multinational corporation (MNC) you researched in Unit VI for this assignment.

    The purpose of this scholarly activity is to continue to analyze fundamental aspects of corporate finance management in multinational corporations. You will examine supply chains and working capital management and make recommendations for financial decisions. Include the following components in your assignment:

    1. Analyze supply chains and working capital management:

    · Describe the company’s supply chain management strategy.

    · Analyze the financing policies used by the MNC for its current assets.

    · Analyze the goals of the company’s inventory management.

    2. Examine multinational financial management:

    · Discuss recent stock distributions through dividends or repurchases.

    · Enumerate reasons why the MNC decided to go global.

    · Illustrate any significant transactions the MNC has had between countries with different currencies.

    · Discuss challenges the MNC faces with floating exchange rates and its management strategies.

    · Analyze the relationships the MNC has with inflation, interest rates, and exchange rates.

    3. Make recommendations:

    · Based on your analysis, provide two to three recommendations for the MNC’s future financial decisions in the context of global operations.

    Compile your scholarly activity into a written paper, ensuring it is well-structured and professionally presented. Your assignment should be at least three pages in length. You are required to use at least two sources, at least two of which must come from the CSU Online Library.

    Adhere to APA Style when creating citations and references for this assignment. Please note that no abstract is needed.

    This
    formal paper example provided by the CSU Writing Center shows this type of formatting.

    The
    Find Company & Industry Resources LibGuide in the CSU Online Library is a great place to start your research.

    **## UnitVIStudyGuide.pdf**

    FIN 6301, Corporate Finance 1

    Course Learning Outcomes for Unit VI

    At the end of this unit, you should be able to:

    5. Recommend financial planning techniques to determine corporate value.
    5.4 Discuss stock distributions through dividends or repurchases.
    5.5 Examine capital structure decisions in a corporation.

    Required Unit Resources

    Chapter 14: Distributions to Shareholders: Dividends and Repurchases (ULO 5.4) You are not
    required to read the Summary, Questions, or Web Extension at the end of the chapter.
    The purpose of this chapter is to understand the distributions to shareholders through dividends and
    repurchases. First, we identify the two ways for a company to return cash to its stockholders. We explain
    the procedures for cash distributions, the impact of cash distributions on value of the organization, and
    the reasons for companies to maintain steady dividend growth. Next, we appraise the residual
    distributions model’s implementation in practice, predict the impact of distributions on a company’s
    intrinsic value, and compare the pros and cons of dividends and repurchases. Finally, we summarize the
    impact of asymmetric information on distribution decisions and analyze stock splits and stock dividends.

    Chapter 15: Capital Structure Decisions (ULO 5.5) You are not required to read the Summary,
    Questions, or Web Extension at the end of the chapter.
    The purpose of this chapter is to understand capital structure decisions. First, we discuss links among
    capital structure, weighted average cost of capital (WACC), and the value of operations. We define and
    differentiate business risk and financial risk. Next, we compare Modigliani and Miller capital structure
    models and assess trade-off theory of capital structure. We evaluate results of empirical tests of capital
    structure theories and estimate the optimal capital structure. Finally, we discuss recapitalization and
    choose an appropriate maturity structure for a company’s debt.

    Unit Lesson

    Lesson: Maximizing Shareholder Value: A Deep Dive into Cash Distributions and Capital
    Decisions (ULOs 5.4 and 5.5)

    In the realm of corporate finance, how a company manages its resources can be a barometer of its health,
    potential, and strategic direction. Understanding the nuances of cash distributions and capital structure
    decisions is not only beneficial for financial practitioners, but for anyone interested in gaining insights into the
    intricacies of business strategy. Let us embark on this enlightening journey together.

    Cash Distributions – The Interplay of Dividends and Repurchases in Corporate Finance

    Understanding these strategies can equip you with valuable tools for your financial management toolkit, both
    as an investor and as a business leader. In line with our Unit Learning Objective 5.4, this lesson will help you
    identify and understand the two main ways that companies return cash to stockholders: dividends and stock
    repurchases.

    UNIT VI STUDY GUIDE
    Cash Distributions and
    Capital Structure

    FIN 6301, Corporate Finance 2

    UNIT x STUDY GUIDE
    Title

    The Essence of Cash Distributions

    Cash distributions serve as a significant way companies return value to shareholders. They represent not just
    a sharing of profits but also a strategic business decision that has implications for a company’s market value
    and investor relations.

    • Dividends: A share of the company’s earnings is paid out to shareholders. Typically, larger, more
    established companies pay dividends as a way to distribute excess profits.

    • Stock repurchases: Also known as buybacks is when a company repurchases its own shares from
    the marketplace, reducing the number of outstanding shares. This action can often boost the stock
    price (Accountinguide, n.d.).

    Dividends Versus Stock Repurchases: A Comparison

    Both dividends and repurchases have their merits and drawbacks, and the choice between them often
    depends on the company’s financial strategy.

    For an investor, understanding a company’s approach to dividends and repurchases can provide insights into
    the company’s financial health and growth potential. For example, a startup might not offer dividends because
    it is reinvesting all profits for growth, whereas a well-established firm like Apple regularly offers both dividends
    and stock buybacks (Apple, n.d.).

    The Residual Distributions Model

    This model argues that distributions should be the residual or leftover earnings after all other operating and
    expansion expenses have been met. Essentially, only if the firm has extra cash after covering all its bases
    should it consider distributing cash to shareholders. This model is often debated among financial experts due
    to its conservative stance on distributions.

    Asymmetric Information and Distributions

    In a market where all information is not readily available to all parties, companies use dividends and
    repurchases as a signaling mechanism. For instance, a sudden dividend increase can signal confidence from
    the management in the company’s future prospects.

    Dividend Pros:
    • Stable and predictable for investors
    • Seen as a sign of financial health

    Dividend Cons:
    • Tax implications for the shareholder
    • May indicate the company does not have better investment opportunities

    Stock Repurchase Pros:
    • More flexible for the company
    • Can be more tax-efficient for shareholders

    Stock Repurchase Cons:
    • Can be seen as a short-term strategy
    • Does not guarantee an increase in stock price

    FIN 6301, Corporate Finance 3

    UNIT x STUDY GUIDE
    Title

    Stock Splits and Stock Dividends

    These are other ways companies return value but do not necessarily involve cash. Stock splits increase the
    number of shares, making them more affordable, while stock dividends give shareholders more shares
    instead of cash (Walther, 2021).

    Cash distributions are not merely financial transactions but strategic moves that reflect a company’s overall
    health and long-term plans. Understanding the various methods and their implications can help investors
    make informed decisions and managers steer their companies effectively.

    Navigating Capital Structure Decisions

    Now, let’s take you on a journey through the intricate world of capital structure decisions, one of the pillars of
    corporate finance. With a keen focus on Unit Learning Objective 5.5, we aim to provide a comprehensive
    understanding of how companies make financing choices and the theoretical and empirical frameworks that
    guide these decisions.

    The Essence of Capital Structure

    Capital structure refers to the combination of a firm’s various sources of financing, typically debt and equity.
    The significance of capital structure is that it directly impacts a company’s risk, value, and potential to provide
    returns to its stakeholders.

    • Capital structure and value: The mix of debt and equity can influence a company’s weighted average
    cost of capital (WACC) and, consequently, its overall valuation.

    • Risks involved: Leveraging, or using borrowed funds, can amplify returns, but it comes with its own
    set of risks, which leads us to our next point.

    An important part of this is dissecting business and financial risks:

    Theoretical Foundations: Modigliani and Miller Propositions

    M&M Propositions, established by Franco Modigliani and Merton Miller, are seminal in the study of capital
    structure (Brigham & Erhardt, 2024).

    Business Risk

    •The inherent risk in a firm's operations, business
    risk is the uncertainty of the firm's operating
    income due to factors like demand variability, price
    fluctuations, and changes in production costs.

    Financial Risk

    •This arises from the use of debt in a firm’s capital
    structure. The higher the debt, the greater the
    financial risk, as the firm commits to fixed interest
    payments irrespective of its profit levels.

    FIN 6301, Corporate Finance 4

    UNIT x STUDY GUIDE
    Title

    • Proposition I: In an environment without taxes, bankruptcy costs, and asymmetric information, a firm’s
    value is unaffected by its financing mix.

    • Proposition II: In the same environment, a firm’s cost of equity rises as it increases the proportion of
    debt in its structure.

    These propositions provide an academic backdrop, but, in the real world, imperfections like taxes and
    bankruptcy costs exist (Brigham & Erhardt, 2024).

    The Trade-Off Theory

    The trade-off theory posits that firms strike a balance between the tax advantages of debt and the bankruptcy
    costs of debt. There is an optimal level of debt that maximizes firm value (McCall, 2019).

    Empirical Tests and Optimal Capital Structure

    While theories provide frameworks, empirical studies have sought to find an optimal capital structure in
    practice. These studies often involve analyzing data from various industries and geographies to find common
    patterns or variations.

    The Process of Recapitalization

    Recapitalization involves changing the equity and debt ratio of a firm’s capital structure, usually to make the
    firm’s capital structure more stable or to boost the stock price (CFI Team, n.d.).

    Debt Maturity Structures

    The length of time until a debt becomes due can vary. Choosing the appropriate maturity structure for a
    company’s debt can greatly influence liquidity, risk, and company valuation.

    Capital structure decisions are multifaceted, blending theory, empirical evidence, and strategy. As future
    financial leaders or informed investors, understanding these complexities can be a powerful asset. Dive deep
    into the subsequent materials, engage in discussions, and remember that these lessons have real-world
    implications in boardrooms around the globe.

    References

    Accountinguide (n.d.). Stock repurchase. https://accountinguide.com/stock-repurchase

    Apple. (n.d.). Dividend history. https://investor.apple.com/dividend-history/default.aspx

    Brigham, E. F., & Ehrhardt, M. C. (2024). Financial management: Theory & practice (17th ed.). Cengage

    Learning. https://online.vitalsource.com/#/books/9780357714607

    Brusov, P., & Filatova, T. (2023, February). Capital structure theory: Past, present, future. Mathematics

    (2227-7390), 11(3), 616.
    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=asn&AN=161857380&site=ehost-live&scope=site

    CFI Team. (n.d.). Recapitalization: A change in a company’s equity and debt mixture. Corporate Finance

    Institute. https://corporatefinanceinstitute.com/resources/equities/recapitalization

    Mazanec, J. (2023, May). Capital structure and corporate performance: an empirical analysis from central

    Europe. Mathematics (2227-7390), 11(9).
    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=asn&AN=163694355&site=ehost-live&scope=site

    FIN 6301, Corporate Finance 5

    UNIT x STUDY GUIDE
    Title

    McCall, J. (2019). What is a trade-off model of capital structure. Capital.com. https://capital.com/trade-off-
    model-of-capital-structure-definition

    Walther, L. M. (2021, October 20). Stock splits and stock dividends. In Principles of accounting.com.

    CreateSpace. https://www.principlesofaccounting.com/chapter-14/splits-and-dividends

    Suggested Unit Resources

    Article: Capital Structure and Corporate Performance: An Empirical Analysis from Central Europe
    (Optional)
    This article looks at estimating business performance using indicators describing capital structure and
    asset structure (18 pages).

    Article: Capital Structure Theory: Past, Present, Future (Optional)
    This article analyzes existing theories of capital structure, including advantages and disadvantages, to
    review problems associated with management decision-making (30 pages).

    **UnitVIIStudyGuide.pdf**

    This file is too large to display. [View in new window](https://www.sweetstudy.com/files/unitviistudyguide-pdf-10404397)

    **UnitVIIStudyGuide.pdf**

    This file is too large to display. [View in new window](https://www.sweetstudy.com/files/unitviistudyguide-pdf-10404397)

    **## CorporateFinanceFIN6301UnitVIIScholarlyActivity.docx**

    2

    Corporate Finance ECO 6301

    Unit VII Scholarly Activity

    This assignment measures your mastery of ULOs 3.1, 3.2, 5.4, and 5.5.

    You will use the multinational corporation (MNC) you researched in Unit VI for this assignment.

    The purpose of this scholarly activity is to continue to analyze fundamental aspects of corporate finance management in multinational corporations. You will examine supply chains and working capital management and make recommendations for financial decisions. Include the following components in your assignment:

    1. Analyze supply chains and working capital management:

    · Describe the company’s supply chain management strategy.

    · Analyze the financing policies used by the MNC for its current assets.

    · Analyze the goals of the company’s inventory management.

    2. Examine multinational financial management:

    · Discuss recent stock distributions through dividends or repurchases.

    · Enumerate reasons why the MNC decided to go global.

    · Illustrate any significant transactions the MNC has had between countries with different currencies.

    · Discuss challenges the MNC faces with floating exchange rates and its management strategies.

    · Analyze the relationships the MNC has with inflation, interest rates, and exchange rates.

    3. Make recommendations:

    · Based on your analysis, provide two to three recommendations for the MNC’s future financial decisions in the context of global operations.

    Compile your scholarly activity into a written paper, ensuring it is well-structured and professionally presented. Your assignment should be at least three pages in length. You are required to use at least two sources, at least two of which must come from the CSU Online Library.

    Adhere to APA Style when creating citations and references for this assignment. Please note that no abstract is needed.

    This
    formal paper example provided by the CSU Writing Center shows this type of formatting.

    The
    Find Company & Industry Resources LibGuide in the CSU Online Library is a great place to start your research.

    **## UnitVIStudyGuide.pdf**

    FIN 6301, Corporate Finance 1

    Course Learning Outcomes for Unit VI

    At the end of this unit, you should be able to:

    5. Recommend financial planning techniques to determine corporate value.
    5.4 Discuss stock distributions through dividends or repurchases.
    5.5 Examine capital structure decisions in a corporation.

    Required Unit Resources

    Chapter 14: Distributions to Shareholders: Dividends and Repurchases (ULO 5.4) You are not
    required to read the Summary, Questions, or Web Extension at the end of the chapter.
    The purpose of this chapter is to understand the distributions to shareholders through dividends and
    repurchases. First, we identify the two ways for a company to return cash to its stockholders. We explain
    the procedures for cash distributions, the impact of cash distributions on value of the organization, and
    the reasons for companies to maintain steady dividend growth. Next, we appraise the residual
    distributions model’s implementation in practice, predict the impact of distributions on a company’s
    intrinsic value, and compare the pros and cons of dividends and repurchases. Finally, we summarize the
    impact of asymmetric information on distribution decisions and analyze stock splits and stock dividends.

    Chapter 15: Capital Structure Decisions (ULO 5.5) You are not required to read the Summary,
    Questions, or Web Extension at the end of the chapter.
    The purpose of this chapter is to understand capital structure decisions. First, we discuss links among
    capital structure, weighted average cost of capital (WACC), and the value of operations. We define and
    differentiate business risk and financial risk. Next, we compare Modigliani and Miller capital structure
    models and assess trade-off theory of capital structure. We evaluate results of empirical tests of capital
    structure theories and estimate the optimal capital structure. Finally, we discuss recapitalization and
    choose an appropriate maturity structure for a company’s debt.

    Unit Lesson

    Lesson: Maximizing Shareholder Value: A Deep Dive into Cash Distributions and Capital
    Decisions (ULOs 5.4 and 5.5)

    In the realm of corporate finance, how a company manages its resources can be a barometer of its health,
    potential, and strategic direction. Understanding the nuances of cash distributions and capital structure
    decisions is not only beneficial for financial practitioners, but for anyone interested in gaining insights into the
    intricacies of business strategy. Let us embark on this enlightening journey together.

    Cash Distributions – The Interplay of Dividends and Repurchases in Corporate Finance

    Understanding these strategies can equip you with valuable tools for your financial management toolkit, both
    as an investor and as a business leader. In line with our Unit Learning Objective 5.4, this lesson will help you
    identify and understand the two main ways that companies return cash to stockholders: dividends and stock
    repurchases.

    UNIT VI STUDY GUIDE
    Cash Distributions and
    Capital Structure

    FIN 6301, Corporate Finance 2

    UNIT x STUDY GUIDE
    Title

    The Essence of Cash Distributions

    Cash distributions serve as a significant way companies return value to shareholders. They represent not just
    a sharing of profits but also a strategic business decision that has implications for a company’s market value
    and investor relations.

    • Dividends: A share of the company’s earnings is paid out to shareholders. Typically, larger, more
    established companies pay dividends as a way to distribute excess profits.

    • Stock repurchases: Also known as buybacks is when a company repurchases its own shares from
    the marketplace, reducing the number of outstanding shares. This action can often boost the stock
    price (Accountinguide, n.d.).

    Dividends Versus Stock Repurchases: A Comparison

    Both dividends and repurchases have their merits and drawbacks, and the choice between them often
    depends on the company’s financial strategy.

    For an investor, understanding a company’s approach to dividends and repurchases can provide insights into
    the company’s financial health and growth potential. For example, a startup might not offer dividends because
    it is reinvesting all profits for growth, whereas a well-established firm like Apple regularly offers both dividends
    and stock buybacks (Apple, n.d.).

    The Residual Distributions Model

    This model argues that distributions should be the residual or leftover earnings after all other operating and
    expansion expenses have been met. Essentially, only if the firm has extra cash after covering all its bases
    should it consider distributing cash to shareholders. This model is often debated among financial experts due
    to its conservative stance on distributions.

    Asymmetric Information and Distributions

    In a market where all information is not readily available to all parties, companies use dividends and
    repurchases as a signaling mechanism. For instance, a sudden dividend increase can signal confidence from
    the management in the company’s future prospects.

    Dividend Pros:
    • Stable and predictable for investors
    • Seen as a sign of financial health

    Dividend Cons:
    • Tax implications for the shareholder
    • May indicate the company does not have better investment opportunities

    Stock Repurchase Pros:
    • More flexible for the company
    • Can be more tax-efficient for shareholders

    Stock Repurchase Cons:
    • Can be seen as a short-term strategy
    • Does not guarantee an increase in stock price

    FIN 6301, Corporate Finance 3

    UNIT x STUDY GUIDE
    Title

    Stock Splits and Stock Dividends

    These are other ways companies return value but do not necessarily involve cash. Stock splits increase the
    number of shares, making them more affordable, while stock dividends give shareholders more shares
    instead of cash (Walther, 2021).

    Cash distributions are not merely financial transactions but strategic moves that reflect a company’s overall
    health and long-term plans. Understanding the various methods and their implications can help investors
    make informed decisions and managers steer their companies effectively.

    Navigating Capital Structure Decisions

    Now, let’s take you on a journey through the intricate world of capital structure decisions, one of the pillars of
    corporate finance. With a keen focus on Unit Learning Objective 5.5, we aim to provide a comprehensive
    understanding of how companies make financing choices and the theoretical and empirical frameworks that
    guide these decisions.

    The Essence of Capital Structure

    Capital structure refers to the combination of a firm’s various sources of financing, typically debt and equity.
    The significance of capital structure is that it directly impacts a company’s risk, value, and potential to provide
    returns to its stakeholders.

    • Capital structure and value: The mix of debt and equity can influence a company’s weighted average
    cost of capital (WACC) and, consequently, its overall valuation.

    • Risks involved: Leveraging, or using borrowed funds, can amplify returns, but it comes with its own
    set of risks, which leads us to our next point.

    An important part of this is dissecting business and financial risks:

    Theoretical Foundations: Modigliani and Miller Propositions

    M&M Propositions, established by Franco Modigliani and Merton Miller, are seminal in the study of capital
    structure (Brigham & Erhardt, 2024).

    Business Risk

    •The inherent risk in a firm's operations, business
    risk is the uncertainty of the firm's operating
    income due to factors like demand variability, price
    fluctuations, and changes in production costs.

    Financial Risk

    •This arises from the use of debt in a firm’s capital
    structure. The higher the debt, the greater the
    financial risk, as the firm commits to fixed interest
    payments irrespective of its profit levels.

    FIN 6301, Corporate Finance 4

    UNIT x STUDY GUIDE
    Title

    • Proposition I: In an environment without taxes, bankruptcy costs, and asymmetric information, a firm’s
    value is unaffected by its financing mix.

    • Proposition II: In the same environment, a firm’s cost of equity rises as it increases the proportion of
    debt in its structure.

    These propositions provide an academic backdrop, but, in the real world, imperfections like taxes and
    bankruptcy costs exist (Brigham & Erhardt, 2024).

    The Trade-Off Theory

    The trade-off theory posits that firms strike a balance between the tax advantages of debt and the bankruptcy
    costs of debt. There is an optimal level of debt that maximizes firm value (McCall, 2019).

    Empirical Tests and Optimal Capital Structure

    While theories provide frameworks, empirical studies have sought to find an optimal capital structure in
    practice. These studies often involve analyzing data from various industries and geographies to find common
    patterns or variations.

    The Process of Recapitalization

    Recapitalization involves changing the equity and debt ratio of a firm’s capital structure, usually to make the
    firm’s capital structure more stable or to boost the stock price (CFI Team, n.d.).

    Debt Maturity Structures

    The length of time until a debt becomes due can vary. Choosing the appropriate maturity structure for a
    company’s debt can greatly influence liquidity, risk, and company valuation.

    Capital structure decisions are multifaceted, blending theory, empirical evidence, and strategy. As future
    financial leaders or informed investors, understanding these complexities can be a powerful asset. Dive deep
    into the subsequent materials, engage in discussions, and remember that these lessons have real-world
    implications in boardrooms around the globe.

    References

    Accountinguide (n.d.). Stock repurchase. https://accountinguide.com/stock-repurchase

    Apple. (n.d.). Dividend history. https://investor.apple.com/dividend-history/default.aspx

    Brigham, E. F., & Ehrhardt, M. C. (2024). Financial management: Theory & practice (17th ed.). Cengage

    Learning. https://online.vitalsource.com/#/books/9780357714607

    Brusov, P., & Filatova, T. (2023, February). Capital structure theory: Past, present, future. Mathematics

    (2227-7390), 11(3), 616.
    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=asn&AN=161857380&site=ehost-live&scope=site

    CFI Team. (n.d.). Recapitalization: A change in a company’s equity and debt mixture. Corporate Finance

    Institute. https://corporatefinanceinstitute.com/resources/equities/recapitalization

    Mazanec, J. (2023, May). Capital structure and corporate performance: an empirical analysis from central

    Europe. Mathematics (2227-7390), 11(9).
    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=asn&AN=163694355&site=ehost-live&scope=site

    FIN 6301, Corporate Finance 5

    UNIT x STUDY GUIDE
    Title

    McCall, J. (2019). What is a trade-off model of capital structure. Capital.com. https://capital.com/trade-off-
    model-of-capital-structure-definition

    Walther, L. M. (2021, October 20). Stock splits and stock dividends. In Principles of accounting.com.

    CreateSpace. https://www.principlesofaccounting.com/chapter-14/splits-and-dividends

    Suggested Unit Resources

    Article: Capital Structure and Corporate Performance: An Empirical Analysis from Central Europe
    (Optional)
    This article looks at estimating business performance using indicators describing capital structure and
    asset structure (18 pages).

    Article: Capital Structure Theory: Past, Present, Future (Optional)
    This article analyzes existing theories of capital structure, including advantages and disadvantages, to
    review problems associated with management decision-making (30 pages).

    **UnitVIIStudyGuide.pdf**

    This file is too large to display. [View in new window](https://www.sweetstudy.com/files/unitviistudyguide-pdf-10404397)

    **## CorporateFinanceFIN6301UnitVIIScholarlyActivity.docx**

    2

    Corporate Finance ECO 6301

    Unit VII Scholarly Activity

    This assignment measures your mastery of ULOs 3.1, 3.2, 5.4, and 5.5.

    You will use the multinational corporation (MNC) you researched in Unit VI for this assignment.

    The purpose of this scholarly activity is to continue to analyze fundamental aspects of corporate finance management in multinational corporations. You will examine supply chains and working capital management and make recommendations for financial decisions. Include the following components in your assignment:

    1. Analyze supply chains and working capital management:

    · Describe the company’s supply chain management strategy.

    · Analyze the financing policies used by the MNC for its current assets.

    · Analyze the goals of the company’s inventory management.

    2. Examine multinational financial management:

    · Discuss recent stock distributions through dividends or repurchases.

    · Enumerate reasons why the MNC decided to go global.

    · Illustrate any significant transactions the MNC has had between countries with different currencies.

    · Discuss challenges the MNC faces with floating exchange rates and its management strategies.

    · Analyze the relationships the MNC has with inflation, interest rates, and exchange rates.

    3. Make recommendations:

    · Based on your analysis, provide two to three recommendations for the MNC’s future financial decisions in the context of global operations.

    Compile your scholarly activity into a written paper, ensuring it is well-structured and professionally presented. Your assignment should be at least three pages in length. You are required to use at least two sources, at least two of which must come from the CSU Online Library.

    Adhere to APA Style when creating citations and references for this assignment. Please note that no abstract is needed.

    This
    formal paper example provided by the CSU Writing Center shows this type of formatting.

    The
    Find Company & Industry Resources LibGuide in the CSU Online Library is a great place to start your research.

    **## UnitVIStudyGuide.pdf**

    FIN 6301, Corporate Finance 1

    Course Learning Outcomes for Unit VI

    At the end of this unit, you should be able to:

    5. Recommend financial planning techniques to determine corporate value.
    5.4 Discuss stock distributions through dividends or repurchases.
    5.5 Examine capital structure decisions in a corporation.

    Required Unit Resources

    Chapter 14: Distributions to Shareholders: Dividends and Repurchases (ULO 5.4) You are not
    required to read the Summary, Questions, or Web Extension at the end of the chapter.
    The purpose of this chapter is to understand the distributions to shareholders through dividends and
    repurchases. First, we identify the two ways for a company to return cash to its stockholders. We explain
    the procedures for cash distributions, the impact of cash distributions on value of the organization, and
    the reasons for companies to maintain steady dividend growth. Next, we appraise the residual
    distributions model’s implementation in practice, predict the impact of distributions on a company’s
    intrinsic value, and compare the pros and cons of dividends and repurchases. Finally, we summarize the
    impact of asymmetric information on distribution decisions and analyze stock splits and stock dividends.

    Chapter 15: Capital Structure Decisions (ULO 5.5) You are not required to read the Summary,
    Questions, or Web Extension at the end of the chapter.
    The purpose of this chapter is to understand capital structure decisions. First, we discuss links among
    capital structure, weighted average cost of capital (WACC), and the value of operations. We define and
    differentiate business risk and financial risk. Next, we compare Modigliani and Miller capital structure
    models and assess trade-off theory of capital structure. We evaluate results of empirical tests of capital
    structure theories and estimate the optimal capital structure. Finally, we discuss recapitalization and
    choose an appropriate maturity structure for a company’s debt.

    Unit Lesson

    Lesson: Maximizing Shareholder Value: A Deep Dive into Cash Distributions and Capital
    Decisions (ULOs 5.4 and 5.5)

    In the realm of corporate finance, how a company manages its resources can be a barometer of its health,
    potential, and strategic direction. Understanding the nuances of cash distributions and capital structure
    decisions is not only beneficial for financial practitioners, but for anyone interested in gaining insights into the
    intricacies of business strategy. Let us embark on this enlightening journey together.

    Cash Distributions – The Interplay of Dividends and Repurchases in Corporate Finance

    Understanding these strategies can equip you with valuable tools for your financial management toolkit, both
    as an investor and as a business leader. In line with our Unit Learning Objective 5.4, this lesson will help you
    identify and understand the two main ways that companies return cash to stockholders: dividends and stock
    repurchases.

    UNIT VI STUDY GUIDE
    Cash Distributions and
    Capital Structure

    FIN 6301, Corporate Finance 2

    UNIT x STUDY GUIDE
    Title

    The Essence of Cash Distributions

    Cash distributions serve as a significant way companies return value to shareholders. They represent not just
    a sharing of profits but also a strategic business decision that has implications for a company’s market value
    and investor relations.

    • Dividends: A share of the company’s earnings is paid out to shareholders. Typically, larger, more
    established companies pay dividends as a way to distribute excess profits.

    • Stock repurchases: Also known as buybacks is when a company repurchases its own shares from
    the marketplace, reducing the number of outstanding shares. This action can often boost the stock
    price (Accountinguide, n.d.).

    Dividends Versus Stock Repurchases: A Comparison

    Both dividends and repurchases have their merits and drawbacks, and the choice between them often
    depends on the company’s financial strategy.

    For an investor, understanding a company’s approach to dividends and repurchases can provide insights into
    the company’s financial health and growth potential. For example, a startup might not offer dividends because
    it is reinvesting all profits for growth, whereas a well-established firm like Apple regularly offers both dividends
    and stock buybacks (Apple, n.d.).

    The Residual Distributions Model

    This model argues that distributions should be the residual or leftover earnings after all other operating and
    expansion expenses have been met. Essentially, only if the firm has extra cash after covering all its bases
    should it consider distributing cash to shareholders. This model is often debated among financial experts due
    to its conservative stance on distributions.

    Asymmetric Information and Distributions

    In a market where all information is not readily available to all parties, companies use dividends and
    repurchases as a signaling mechanism. For instance, a sudden dividend increase can signal confidence from
    the management in the company’s future prospects.

    Dividend Pros:
    • Stable and predictable for investors
    • Seen as a sign of financial health

    Dividend Cons:
    • Tax implications for the shareholder
    • May indicate the company does not have better investment opportunities

    Stock Repurchase Pros:
    • More flexible for the company
    • Can be more tax-efficient for shareholders

    Stock Repurchase Cons:
    • Can be seen as a short-term strategy
    • Does not guarantee an increase in stock price

    FIN 6301, Corporate Finance 3

    UNIT x STUDY GUIDE
    Title

    Stock Splits and Stock Dividends

    These are other ways companies return value but do not necessarily involve cash. Stock splits increase the
    number of shares, making them more affordable, while stock dividends give shareholders more shares
    instead of cash (Walther, 2021).

    Cash distributions are not merely financial transactions but strategic moves that reflect a company’s overall
    health and long-term plans. Understanding the various methods and their implications can help investors
    make informed decisions and managers steer their companies effectively.

    Navigating Capital Structure Decisions

    Now, let’s take you on a journey through the intricate world of capital structure decisions, one of the pillars of
    corporate finance. With a keen focus on Unit Learning Objective 5.5, we aim to provide a comprehensive
    understanding of how companies make financing choices and the theoretical and empirical frameworks that
    guide these decisions.

    The Essence of Capital Structure

    Capital structure refers to the combination of a firm’s various sources of financing, typically debt and equity.
    The significance of capital structure is that it directly impacts a company’s risk, value, and potential to provide
    returns to its stakeholders.

    • Capital structure and value: The mix of debt and equity can influence a company’s weighted average
    cost of capital (WACC) and, consequently, its overall valuation.

    • Risks involved: Leveraging, or using borrowed funds, can amplify returns, but it comes with its own
    set of risks, which leads us to our next point.

    An important part of this is dissecting business and financial risks:

    Theoretical Foundations: Modigliani and Miller Propositions

    M&M Propositions, established by Franco Modigliani and Merton Miller, are seminal in the study of capital
    structure (Brigham & Erhardt, 2024).

    Business Risk

    •The inherent risk in a firm's operations, business
    risk is the uncertainty of the firm's operating
    income due to factors like demand variability, price
    fluctuations, and changes in production costs.

    Financial Risk

    •This arises from the use of debt in a firm’s capital
    structure. The higher the debt, the greater the
    financial risk, as the firm commits to fixed interest
    payments irrespective of its profit levels.

    FIN 6301, Corporate Finance 4

    UNIT x STUDY GUIDE
    Title

    • Proposition I: In an environment without taxes, bankruptcy costs, and asymmetric information, a firm’s
    value is unaffected by its financing mix.

    • Proposition II: In the same environment, a firm’s cost of equity rises as it increases the proportion of
    debt in its structure.

    These propositions provide an academic backdrop, but, in the real world, imperfections like taxes and
    bankruptcy costs exist (Brigham & Erhardt, 2024).

    The Trade-Off Theory

    The trade-off theory posits that firms strike a balance between the tax advantages of debt and the bankruptcy
    costs of debt. There is an optimal level of debt that maximizes firm value (McCall, 2019).

    Empirical Tests and Optimal Capital Structure

    While theories provide frameworks, empirical studies have sought to find an optimal capital structure in
    practice. These studies often involve analyzing data from various industries and geographies to find common
    patterns or variations.

    The Process of Recapitalization

    Recapitalization involves changing the equity and debt ratio of a firm’s capital structure, usually to make the
    firm’s capital structure more stable or to boost the stock price (CFI Team, n.d.).

    Debt Maturity Structures

    The length of time until a debt becomes due can vary. Choosing the appropriate maturity structure for a
    company’s debt can greatly influence liquidity, risk, and company valuation.

    Capital structure decisions are multifaceted, blending theory, empirical evidence, and strategy. As future
    financial leaders or informed investors, understanding these complexities can be a powerful asset. Dive deep
    into the subsequent materials, engage in discussions, and remember that these lessons have real-world
    implications in boardrooms around the globe.

    References

    Accountinguide (n.d.). Stock repurchase. https://accountinguide.com/stock-repurchase

    Apple. (n.d.). Dividend history. https://investor.apple.com/dividend-history/default.aspx

    Brigham, E. F., & Ehrhardt, M. C. (2024). Financial management: Theory & practice (17th ed.). Cengage

    Learning. https://online.vitalsource.com/#/books/9780357714607

    Brusov, P., & Filatova, T. (2023, February). Capital structure theory: Past, present, future. Mathematics

    (2227-7390), 11(3), 616.
    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=asn&AN=161857380&site=ehost-live&scope=site

    CFI Team. (n.d.). Recapitalization: A change in a company’s equity and debt mixture. Corporate Finance

    Institute. https://corporatefinanceinstitute.com/resources/equities/recapitalization

    Mazanec, J. (2023, May). Capital structure and corporate performance: an empirical analysis from central

    Europe. Mathematics (2227-7390), 11(9).
    https://libraryresources.columbiasouthern.edu/login?url=https://search.ebscohost.com/login.aspx?dire
    ct=true&db=asn&AN=163694355&site=ehost-live&scope=site

    FIN 6301, Corporate Finance 5

    UNIT x STUDY GUIDE
    Title

    McCall, J. (2019). What is a trade-off model of capital structure. Capital.com. https://capital.com/trade-off-
    model-of-capital-structure-definition

    Walther, L. M. (2021, October 20). Stock splits and stock dividends. In Principles of accounting.com.

    CreateSpace. https://www.principlesofaccounting.com/chapter-14/splits-and-dividends

    Suggested Unit Resources

    Article: Capital Structure and Corporate Performance: An Empirical Analysis from Central Europe
    (Optional)
    This article looks at estimating business performance using indicators describing capital structure and
    asset structure (18 pages).

    Article: Capital Structure Theory: Past, Present, Future (Optional)
    This article analyzes existing theories of capital structure, including advantages and disadvantages, to
    review problems associated with management decision-making (30 pages).

    **UnitVIIStudyGuide.pdf**

    This file is too large to display. [View in new window](https://www.sweetstudy.com/files/unitviistudyguide-pdf-10404397)

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  • [Solved] HRM 6302 Unit VII CS

    ✓ Verified Academic Solution Available

    Executive Solution Overview

    – ## EmploymentLawHRM6302UnitVIICaseStudy.docx – ## UnitVIIStudyGuide.pdf **## EmploymentLawHRM6302UnitVIICaseStudy.docx** 2 Employment Law HRM 6302 Unit VII Case Study Analyze the case of SeaWorld of Florida v. Perez, 2014 U.S. App. LEXIS 6660 (D.C. Cir.) located in your textbook on pp. 559-564, in…

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    – ## EmploymentLawHRM6302UnitVIICaseStudy.docx

    – ## UnitVIIStudyGuide.pdf

    **## EmploymentLawHRM6302UnitVIICaseStudy.docx**

    2

    Employment Law HRM 6302

    Unit VII Case Study

    Analyze the case of SeaWorld of Florida v. Perez, 2014 U.S. App. LEXIS 6660 (D.C. Cir.) located in your textbook on pp. 559-564, including the opinion of Judge Rodgers as well as the dissenting opinion of Judge (now-Supreme Court Justice) Brett Kavanaugh.

    Write a case study review of the court’s opinion that answers the questions below. Support your review with analysis and evidence from the unit reading and outside sources.

    · What are the legal issues enforced by the Occupational Safety and Health Administration (OSHA) and presented in this case? How did the plaintiff establish a valid violation under the General Duty Clause of the OSH Act? Explain how the elements of a valid claim were satisfied under the OSH Act.

    · How does OSHA enforce workplace safety and health standards?

    · Do you agree with the court’s decision? Should or could SeaWorld have done more to abate the hazard? Support your position.

    Your paper should be a minimum of five pages, not including the title and reference pages. You are required to use a minimum of three sources, one of which may be your textbook as reference material for your case study. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed.

    This
    **Case Study Example** provided by the CSU Writing Center shows this type of formatting.

    **## UnitVIIStudyGuide.pdf**

    HRM 6302, Employment Law 1

    Course Learning Outcomes for Unit VII

    Upon completion of this unit, students should be able to:

    8. Evaluate the Occupational Safety and Health Administration’s (OSHA) regulatory power in the context
    of workplace safety.
    8.1 Summarize the manner in which OSHA enforces workplace safety and health standards.
    8.2 Explain the requirements of the Occupational Safety and Health (OSH) Act.
    8.3 Assess a legal case for compliance with OSHA standards.

    Required Unit Resources

    Chapter 14: Occupational Safety and Health, pp. 551–591

    Unit Lesson

    The primary objective of workplace safety is the prevention of workplace injuries, illnesses, and fatalities. In
    2014, almost 4,821 U.S. workers died from workplace injuries. There were approximately 2.9 million nonfatal
    workplace injuries and illnesses (Bureau of Labor Statistics, 2016). These incidents cost businesses huge
    sums of money and take a significant toll on the victims and their families. One death is too many, but the
    number of deaths, injuries, and illnesses has generally declined over time, due in no small measure to safety
    requirements at the federal level. Prior to the passage of the Occupational Safety and Health Act (OSH Act) in
    1970, only the common law bound employers to provide employees with a safe workplace. Further,

    UNIT VII STUDY GUIDE
    Occupational Safety and Health

    Occupational Safety
    (Pitiquen, n.d.)

    HRM 6302, Employment Law 2

    UNIT x STUDY GUIDE
    Title

    employers had several common law defenses that often enabled them to avoid liability. Employees had few
    protections from unscrupulous employers who eschewed safety for profit.

    The OSH Act covers almost all employers and employees and is critically important to those who support
    employment law compliance. Any employer in a business affecting commerce is subject to and covered by
    the OSH Act. The limited exceptions to coverage are primarily the self-employed and farms that employ only
    immediate family of the owner. Workplaces covered by other federal laws, such as the mining, nuclear,
    railroad, and airline industries, as well as state and local governments (unless otherwise permitted by state
    law) are also excluded from the OSH Act (OSHA, n.d.-a).

    The OSH Act imposes two basic requirements on employers to accomplish the goal of a safe workplace.
    First, the employer must comply with all the safety and health standards set by the U.S. Department of Labor
    (DOL). Second, the employer must furnish each of its employees a workplace free from recognized hazards
    that are causing or likely to cause death or serious physical harm.

    The Occupational Safety and Health Administration (OSHA), which falls under the DOL, is charged with
    enforcing the OSH Act. OSHA translates the basic requirements imposed on employers by the OSH Act into
    specific actions. OSHA holds employers responsible for proactively adopting safety practices, communicating
    them to employees, ensuring employees use them, monitoring working conditions, alerting employees to
    potential hazards, and reporting work-related deaths and injuries (OSHA, n.d.-a). OSHA has established
    industry standards to inform employers how to guarantee a safe and healthy workplace. The four major
    categories of OSHA standards are general, construction, maritime, and agriculture. To determine the industry
    standards an employer needs to follow, he or she must determine the appropriate industry code that applies
    to the organization within the North American Industry Classification System (NAICS).

    While some OSHA standards are specific to one industry, many of them apply across industries, such as
    standards for personal protective equipment and hazardous communication. Most employers will need to
    implement a combination of standards including the associated training and safety inspection requirements to
    be compliant. OSHA requires that employers prominently display federal workplace health and safety posters
    in their workspaces.

    To help employers navigate the requirements imposed on them, OSHA’s website contains a wealth of
    information for various types of employers, including small businesses. The site’s resources include
    interactive tools for both employers and employees. Every state has free workplace consultations available to
    small businesses that want onsite help in establishing safety and health programs. This assistance will also
    help in identifying and correcting workplace hazards. Additionally, OSHA has a network of compliance
    assistance specialists in local offices to provide tailored information and training to employers and employees.
    There are 22 states that have OSHA-approved job safety and health programs. These are operated by the
    individual states instead of adhering to federal OSHA standards. All state plans are approved and monitored
    by OSHA, and they require that state-run safety and health programs must be at least as effective as the
    federal program. If the state programs are compliant, OSHA provides as much as 50% of the funding for each
    program (OSHA, n.d.-b).

    What is the downside of lax compliance with OSHA requirements? After years of a legal anomaly that
    prevented OSHA from increasing penalties, in 2016, Congress passed legislation that allowed the agency to
    adjust penalties to more appropriate and modern levels. Serious violations of the law increased from $7,000
    to $12,471 per violation. Failure to abate dangerous or hazardous conditions rose from $7,000 to $12,471 per
    date after the date recorded on an OSHA citation for correction of the violation. In addition, willful or repeated
    violations increased from $70,000 to $124,709 per violation (Smith, 2016).

    In 2016, OSHA released new injury and illness reporting rules that change the way employers have long done
    business and in an unusual twist, call into question employers’ drug testing practices after accidents.
    Traditionally, employers track and maintain injury information internally, though fatalities and serious injuries
    must be reported to OSHA immediately. The new rule, however, requires electronic submission of the
    information by the employer annually to OSHA. In turn, OSHA will then publish the data online for anyone to
    access. There are also new requirements related to employee involvement in employer recordkeeping
    practices and the prevention of discrimination and retaliation. Employers must inform each employee how to
    properly report a work-related injury or illness. Further, employers must establish a reasonable procedure for
    employee reporting. A process is not reasonable if it would prevent or discourage a reasonable employee

    HRM 6302, Employment Law 3

    UNIT x STUDY GUIDE
    Title

    from correctly reporting a workplace injury or illness. Employers must inform employees of their right to report
    injuries and illnesses and inform them that they cannot be fired or discriminated against for reporting
    (Petrides, 2016).

    The twist is the impact on employer drug testing policies. In conjunction with this new rule, OSHA announced
    that policies that call for across-the-board testing after an accident deter employees from reporting injuries
    and may not be reasonable. OSHA indicates that employers should engage in post-injury drug testing only
    when there is a reasonable potential that drug use by the reporting employee contributed to the injury or
    illness and further, only when the test can precisely indicate that impairment was caused by the use of drugs
    (Petrides, 2016). This guidance does not appear to prevent testing where there are facts that support that
    drugs could have contributed to the incident, such as slurred speech, glazed eyes, stupor, or other signs
    generally associated with drug or alcohol intoxication. Beyond this, it may be a challenge to determine when it
    is appropriate to drug test employees following reported accidents, injuries, and illnesses.

    Workplace violence is an area that can affect all employers and has increasingly been in the forefront of
    OSHA’s attention. Workplace violence is any act or threat of physical violence, harassment, intimidation, or
    other threatening disruptive behavior that occurs at the workplace. It includes a wide range of actions from
    threats and verbal abuse to physical assaults and even homicide (OSHA, n.d.-c). It can affect and involve
    employees, clients, customers, and visitors. Among many incidents is one in 2010, which occurred as two
    dozen employees worked at a Penske truck rental facility near Atlanta. A former employee, dressed in
    camouflage, came to the facility and fatally shot three workers and injured two others. Subsequently, a
    survivor of one of the workers killed in the shooting sued Penske, claiming that the company had been
    making threats to come to the property and hurt employees and that the company therefore had an obligation
    to protect its employees (Bluestein, 2010).

    According to OSHA (n.d.-c), homicide is the fourth-leading cause of fatal occupational injuries in the United
    States accounting for more than 400 of the workplace fatalities in 2014. Further, nearly 2 million American
    workers report having been workplace violence victims annually and many cases go unreported (OSHA, n.d.-
    c). While there is no magic way to predict where workplace violence will occur, OSHA has identified workers
    with elevated risk of being victims of violence as those who exchange money with the public, delivery drivers,
    healthcare professionals, public service workers, customer service agents, law enforcement personnel, and
    workers who work by themselves or in small groups. Additional risk factors include working in a location
    where there is the service of alcohol and working late at night or in areas with known high crime rates.

    To combat workplace violence, OSHA recommends employers establish a zero-tolerance policy covering not
    only workers, but also anyone exposed to workers in the workplace. Further, employers should assess their
    workplaces, identify risk factors, and implement methods of reducing risk. Training, too, can reduce the
    incidence of workplace violence and inform workers what concerns they should report, how to report
    concerns, and how to respond if an incident occurs.

    Clearly, establishing and maintaining a safe and healthy workplace is a goal that requires attention on a daily
    basis, not only from HR staff, but also just as importantly from managers and workers. Government entities
    such as OSHA protect workers in the workplace and require employers to provide risk reduction and safe
    work environments through education, training, and government assistance. Within organizations, employers
    must ensure management is knowledgeable about their responsibilities, as well as resources available to help
    them achieve safety goals. HR has the responsibility of keeping this critical goal in front of the members of the
    organization and avoiding complacency because just one incident can have devastating effects.

    References

    Bluestein, G. (2010, April 2). Widow: Penske warned of threats before shooting. Boston Globe.

    http://archive.boston.com/business/articles/2010/04/02/widow_penske_warned_of_threats_before_sh
    ooting/

    Bureau of Labor Statistics. (2016, October 27). Employer-reported workplace injuries and illnesses – 2015

    [News release]. U.S. Department of Labor.
    https://www.bls.gov/news.release/archives/osh_10272016.pdf

    HRM 6302, Employment Law 4

    UNIT x STUDY GUIDE
    Title

    Occupational Safety and Health Administration. (n.d.-a). Law and regulations. United States Department of
    Labor. https://www.osha.gov/law-regs.html

    Occupational Safety and Health Administration. (n.d.-b). State plans. United States Department of Labor.

    https://www.osha.gov/dcsp/osp/index.html

    Occupational Safety and Health Administration. (n.d.-c). Workplace violence. United States Department of

    Labor. https://www.osha.gov/SLTC/workplaceviolence/

    Petrides, T. H. (2016, May 19). OSHA issues new illness and injury recordkeeping rule that casts doubt upon

    commonplace employer drug testing and safety incentive policies. The National Law Review, 6(140).
    http://www.natlawreview.com/article/osha-issues-new-illness-and-injury-recordkeeping-rule-casts-
    doubt-upon-commonplace

    Pitiquen, J. (n.d.). Occupational safety (ID 24098844) [Graphic]. Dreamstime.

    https://www.dreamstime.com/stock-images-occupational-safety-image24098844

    Smith, A. (2016, October 19). Steep new penalties under OSH Act raise compliance concerns. Society for

    Human Resource Management. https://www.shrm.org/resourcesandtools/legal-and-
    compliance/employment-law/pages/osh-act-penalties.aspx

    Suggested Unit Resources

    In order to access the following resources, click the links below.

    The following PowerPoint presentation supplements the textbook chapter reading and is provided for further
    knowledge and review of the unit materials.

    Chapter 14 presentation (PowerPoint) or Chapter 14 presentation (PDF)

    Learning Activities (Nongraded)

    Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit
    them. If you have questions, contact your instructor for further guidance and information.

    At the end of each chapter of your textbook, scenario-driven questions provide legal issues and realistic
    situations that relate to employment law. Exploring these questions allows you the opportunity to further your
    understanding of the concepts in each chapter and prepares you for similar situations you may encounter in
    your workplace.

    • Review the Chapter 14 questions in your textbook on pages 592–593.

    **## UnitVIIStudyGuide.pdf**

    HRM 6302, Employment Law 1

    Course Learning Outcomes for Unit VII

    Upon completion of this unit, students should be able to:

    8. Evaluate the Occupational Safety and Health Administration’s (OSHA) regulatory power in the context
    of workplace safety.
    8.1 Summarize the manner in which OSHA enforces workplace safety and health standards.
    8.2 Explain the requirements of the Occupational Safety and Health (OSH) Act.
    8.3 Assess a legal case for compliance with OSHA standards.

    Required Unit Resources

    Chapter 14: Occupational Safety and Health, pp. 551–591

    Unit Lesson

    The primary objective of workplace safety is the prevention of workplace injuries, illnesses, and fatalities. In
    2014, almost 4,821 U.S. workers died from workplace injuries. There were approximately 2.9 million nonfatal
    workplace injuries and illnesses (Bureau of Labor Statistics, 2016). These incidents cost businesses huge
    sums of money and take a significant toll on the victims and their families. One death is too many, but the
    number of deaths, injuries, and illnesses has generally declined over time, due in no small measure to safety
    requirements at the federal level. Prior to the passage of the Occupational Safety and Health Act (OSH Act) in
    1970, only the common law bound employers to provide employees with a safe workplace. Further,

    UNIT VII STUDY GUIDE
    Occupational Safety and Health

    Occupational Safety
    (Pitiquen, n.d.)

    HRM 6302, Employment Law 2

    UNIT x STUDY GUIDE
    Title

    employers had several common law defenses that often enabled them to avoid liability. Employees had few
    protections from unscrupulous employers who eschewed safety for profit.

    The OSH Act covers almost all employers and employees and is critically important to those who support
    employment law compliance. Any employer in a business affecting commerce is subject to and covered by
    the OSH Act. The limited exceptions to coverage are primarily the self-employed and farms that employ only
    immediate family of the owner. Workplaces covered by other federal laws, such as the mining, nuclear,
    railroad, and airline industries, as well as state and local governments (unless otherwise permitted by state
    law) are also excluded from the OSH Act (OSHA, n.d.-a).

    The OSH Act imposes two basic requirements on employers to accomplish the goal of a safe workplace.
    First, the employer must comply with all the safety and health standards set by the U.S. Department of Labor
    (DOL). Second, the employer must furnish each of its employees a workplace free from recognized hazards
    that are causing or likely to cause death or serious physical harm.

    The Occupational Safety and Health Administration (OSHA), which falls under the DOL, is charged with
    enforcing the OSH Act. OSHA translates the basic requirements imposed on employers by the OSH Act into
    specific actions. OSHA holds employers responsible for proactively adopting safety practices, communicating
    them to employees, ensuring employees use them, monitoring working conditions, alerting employees to
    potential hazards, and reporting work-related deaths and injuries (OSHA, n.d.-a). OSHA has established
    industry standards to inform employers how to guarantee a safe and healthy workplace. The four major
    categories of OSHA standards are general, construction, maritime, and agriculture. To determine the industry
    standards an employer needs to follow, he or she must determine the appropriate industry code that applies
    to the organization within the North American Industry Classification System (NAICS).

    While some OSHA standards are specific to one industry, many of them apply across industries, such as
    standards for personal protective equipment and hazardous communication. Most employers will need to
    implement a combination of standards including the associated training and safety inspection requirements to
    be compliant. OSHA requires that employers prominently display federal workplace health and safety posters
    in their workspaces.

    To help employers navigate the requirements imposed on them, OSHA’s website contains a wealth of
    information for various types of employers, including small businesses. The site’s resources include
    interactive tools for both employers and employees. Every state has free workplace consultations available to
    small businesses that want onsite help in establishing safety and health programs. This assistance will also
    help in identifying and correcting workplace hazards. Additionally, OSHA has a network of compliance
    assistance specialists in local offices to provide tailored information and training to employers and employees.
    There are 22 states that have OSHA-approved job safety and health programs. These are operated by the
    individual states instead of adhering to federal OSHA standards. All state plans are approved and monitored
    by OSHA, and they require that state-run safety and health programs must be at least as effective as the
    federal program. If the state programs are compliant, OSHA provides as much as 50% of the funding for each
    program (OSHA, n.d.-b).

    What is the downside of lax compliance with OSHA requirements? After years of a legal anomaly that
    prevented OSHA from increasing penalties, in 2016, Congress passed legislation that allowed the agency to
    adjust penalties to more appropriate and modern levels. Serious violations of the law increased from $7,000
    to $12,471 per violation. Failure to abate dangerous or hazardous conditions rose from $7,000 to $12,471 per
    date after the date recorded on an OSHA citation for correction of the violation. In addition, willful or repeated
    violations increased from $70,000 to $124,709 per violation (Smith, 2016).

    In 2016, OSHA released new injury and illness reporting rules that change the way employers have long done
    business and in an unusual twist, call into question employers’ drug testing practices after accidents.
    Traditionally, employers track and maintain injury information internally, though fatalities and serious injuries
    must be reported to OSHA immediately. The new rule, however, requires electronic submission of the
    information by the employer annually to OSHA. In turn, OSHA will then publish the data online for anyone to
    access. There are also new requirements related to employee involvement in employer recordkeeping
    practices and the prevention of discrimination and retaliation. Employers must inform each employee how to
    properly report a work-related injury or illness. Further, employers must establish a reasonable procedure for
    employee reporting. A process is not reasonable if it would prevent or discourage a reasonable employee

    HRM 6302, Employment Law 3

    UNIT x STUDY GUIDE
    Title

    from correctly reporting a workplace injury or illness. Employers must inform employees of their right to report
    injuries and illnesses and inform them that they cannot be fired or discriminated against for reporting
    (Petrides, 2016).

    The twist is the impact on employer drug testing policies. In conjunction with this new rule, OSHA announced
    that policies that call for across-the-board testing after an accident deter employees from reporting injuries
    and may not be reasonable. OSHA indicates that employers should engage in post-injury drug testing only
    when there is a reasonable potential that drug use by the reporting employee contributed to the injury or
    illness and further, only when the test can precisely indicate that impairment was caused by the use of drugs
    (Petrides, 2016). This guidance does not appear to prevent testing where there are facts that support that
    drugs could have contributed to the incident, such as slurred speech, glazed eyes, stupor, or other signs
    generally associated with drug or alcohol intoxication. Beyond this, it may be a challenge to determine when it
    is appropriate to drug test employees following reported accidents, injuries, and illnesses.

    Workplace violence is an area that can affect all employers and has increasingly been in the forefront of
    OSHA’s attention. Workplace violence is any act or threat of physical violence, harassment, intimidation, or
    other threatening disruptive behavior that occurs at the workplace. It includes a wide range of actions from
    threats and verbal abuse to physical assaults and even homicide (OSHA, n.d.-c). It can affect and involve
    employees, clients, customers, and visitors. Among many incidents is one in 2010, which occurred as two
    dozen employees worked at a Penske truck rental facility near Atlanta. A former employee, dressed in
    camouflage, came to the facility and fatally shot three workers and injured two others. Subsequently, a
    survivor of one of the workers killed in the shooting sued Penske, claiming that the company had been
    making threats to come to the property and hurt employees and that the company therefore had an obligation
    to protect its employees (Bluestein, 2010).

    According to OSHA (n.d.-c), homicide is the fourth-leading cause of fatal occupational injuries in the United
    States accounting for more than 400 of the workplace fatalities in 2014. Further, nearly 2 million American
    workers report having been workplace violence victims annually and many cases go unreported (OSHA, n.d.-
    c). While there is no magic way to predict where workplace violence will occur, OSHA has identified workers
    with elevated risk of being victims of violence as those who exchange money with the public, delivery drivers,
    healthcare professionals, public service workers, customer service agents, law enforcement personnel, and
    workers who work by themselves or in small groups. Additional risk factors include working in a location
    where there is the service of alcohol and working late at night or in areas with known high crime rates.

    To combat workplace violence, OSHA recommends employers establish a zero-tolerance policy covering not
    only workers, but also anyone exposed to workers in the workplace. Further, employers should assess their
    workplaces, identify risk factors, and implement methods of reducing risk. Training, too, can reduce the
    incidence of workplace violence and inform workers what concerns they should report, how to report
    concerns, and how to respond if an incident occurs.

    Clearly, establishing and maintaining a safe and healthy workplace is a goal that requires attention on a daily
    basis, not only from HR staff, but also just as importantly from managers and workers. Government entities
    such as OSHA protect workers in the workplace and require employers to provide risk reduction and safe
    work environments through education, training, and government assistance. Within organizations, employers
    must ensure management is knowledgeable about their responsibilities, as well as resources available to help
    them achieve safety goals. HR has the responsibility of keeping this critical goal in front of the members of the
    organization and avoiding complacency because just one incident can have devastating effects.

    References

    Bluestein, G. (2010, April 2). Widow: Penske warned of threats before shooting. Boston Globe.

    http://archive.boston.com/business/articles/2010/04/02/widow_penske_warned_of_threats_before_sh
    ooting/

    Bureau of Labor Statistics. (2016, October 27). Employer-reported workplace injuries and illnesses – 2015

    [News release]. U.S. Department of Labor.
    https://www.bls.gov/news.release/archives/osh_10272016.pdf

    HRM 6302, Employment Law 4

    UNIT x STUDY GUIDE
    Title

    Occupational Safety and Health Administration. (n.d.-a). Law and regulations. United States Department of
    Labor. https://www.osha.gov/law-regs.html

    Occupational Safety and Health Administration. (n.d.-b). State plans. United States Department of Labor.

    https://www.osha.gov/dcsp/osp/index.html

    Occupational Safety and Health Administration. (n.d.-c). Workplace violence. United States Department of

    Labor. https://www.osha.gov/SLTC/workplaceviolence/

    Petrides, T. H. (2016, May 19). OSHA issues new illness and injury recordkeeping rule that casts doubt upon

    commonplace employer drug testing and safety incentive policies. The National Law Review, 6(140).
    http://www.natlawreview.com/article/osha-issues-new-illness-and-injury-recordkeeping-rule-casts-
    doubt-upon-commonplace

    Pitiquen, J. (n.d.). Occupational safety (ID 24098844) [Graphic]. Dreamstime.

    https://www.dreamstime.com/stock-images-occupational-safety-image24098844

    Smith, A. (2016, October 19). Steep new penalties under OSH Act raise compliance concerns. Society for

    Human Resource Management. https://www.shrm.org/resourcesandtools/legal-and-
    compliance/employment-law/pages/osh-act-penalties.aspx

    Suggested Unit Resources

    In order to access the following resources, click the links below.

    The following PowerPoint presentation supplements the textbook chapter reading and is provided for further
    knowledge and review of the unit materials.

    Chapter 14 presentation (PowerPoint) or Chapter 14 presentation (PDF)

    Learning Activities (Nongraded)

    Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit
    them. If you have questions, contact your instructor for further guidance and information.

    At the end of each chapter of your textbook, scenario-driven questions provide legal issues and realistic
    situations that relate to employment law. Exploring these questions allows you the opportunity to further your
    understanding of the concepts in each chapter and prepares you for similar situations you may encounter in
    your workplace.

    • Review the Chapter 14 questions in your textbook on pages 592–593.

    **## EmploymentLawHRM6302UnitVIICaseStudy.docx**

    2

    Employment Law HRM 6302

    Unit VII Case Study

    Analyze the case of SeaWorld of Florida v. Perez, 2014 U.S. App. LEXIS 6660 (D.C. Cir.) located in your textbook on pp. 559-564, including the opinion of Judge Rodgers as well as the dissenting opinion of Judge (now-Supreme Court Justice) Brett Kavanaugh.

    Write a case study review of the court’s opinion that answers the questions below. Support your review with analysis and evidence from the unit reading and outside sources.

    · What are the legal issues enforced by the Occupational Safety and Health Administration (OSHA) and presented in this case? How did the plaintiff establish a valid violation under the General Duty Clause of the OSH Act? Explain how the elements of a valid claim were satisfied under the OSH Act.

    · How does OSHA enforce workplace safety and health standards?

    · Do you agree with the court’s decision? Should or could SeaWorld have done more to abate the hazard? Support your position.

    Your paper should be a minimum of five pages, not including the title and reference pages. You are required to use a minimum of three sources, one of which may be your textbook as reference material for your case study. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed.

    This
    **Case Study Example** provided by the CSU Writing Center shows this type of formatting.

    **## UnitVIIStudyGuide.pdf**

    HRM 6302, Employment Law 1

    Course Learning Outcomes for Unit VII

    Upon completion of this unit, students should be able to:

    8. Evaluate the Occupational Safety and Health Administration’s (OSHA) regulatory power in the context
    of workplace safety.
    8.1 Summarize the manner in which OSHA enforces workplace safety and health standards.
    8.2 Explain the requirements of the Occupational Safety and Health (OSH) Act.
    8.3 Assess a legal case for compliance with OSHA standards.

    Required Unit Resources

    Chapter 14: Occupational Safety and Health, pp. 551–591

    Unit Lesson

    The primary objective of workplace safety is the prevention of workplace injuries, illnesses, and fatalities. In
    2014, almost 4,821 U.S. workers died from workplace injuries. There were approximately 2.9 million nonfatal
    workplace injuries and illnesses (Bureau of Labor Statistics, 2016). These incidents cost businesses huge
    sums of money and take a significant toll on the victims and their families. One death is too many, but the
    number of deaths, injuries, and illnesses has generally declined over time, due in no small measure to safety
    requirements at the federal level. Prior to the passage of the Occupational Safety and Health Act (OSH Act) in
    1970, only the common law bound employers to provide employees with a safe workplace. Further,

    UNIT VII STUDY GUIDE
    Occupational Safety and Health

    Occupational Safety
    (Pitiquen, n.d.)

    HRM 6302, Employment Law 2

    UNIT x STUDY GUIDE
    Title

    employers had several common law defenses that often enabled them to avoid liability. Employees had few
    protections from unscrupulous employers who eschewed safety for profit.

    The OSH Act covers almost all employers and employees and is critically important to those who support
    employment law compliance. Any employer in a business affecting commerce is subject to and covered by
    the OSH Act. The limited exceptions to coverage are primarily the self-employed and farms that employ only
    immediate family of the owner. Workplaces covered by other federal laws, such as the mining, nuclear,
    railroad, and airline industries, as well as state and local governments (unless otherwise permitted by state
    law) are also excluded from the OSH Act (OSHA, n.d.-a).

    The OSH Act imposes two basic requirements on employers to accomplish the goal of a safe workplace.
    First, the employer must comply with all the safety and health standards set by the U.S. Department of Labor
    (DOL). Second, the employer must furnish each of its employees a workplace free from recognized hazards
    that are causing or likely to cause death or serious physical harm.

    The Occupational Safety and Health Administration (OSHA), which falls under the DOL, is charged with
    enforcing the OSH Act. OSHA translates the basic requirements imposed on employers by the OSH Act into
    specific actions. OSHA holds employers responsible for proactively adopting safety practices, communicating
    them to employees, ensuring employees use them, monitoring working conditions, alerting employees to
    potential hazards, and reporting work-related deaths and injuries (OSHA, n.d.-a). OSHA has established
    industry standards to inform employers how to guarantee a safe and healthy workplace. The four major
    categories of OSHA standards are general, construction, maritime, and agriculture. To determine the industry
    standards an employer needs to follow, he or she must determine the appropriate industry code that applies
    to the organization within the North American Industry Classification System (NAICS).

    While some OSHA standards are specific to one industry, many of them apply across industries, such as
    standards for personal protective equipment and hazardous communication. Most employers will need to
    implement a combination of standards including the associated training and safety inspection requirements to
    be compliant. OSHA requires that employers prominently display federal workplace health and safety posters
    in their workspaces.

    To help employers navigate the requirements imposed on them, OSHA’s website contains a wealth of
    information for various types of employers, including small businesses. The site’s resources include
    interactive tools for both employers and employees. Every state has free workplace consultations available to
    small businesses that want onsite help in establishing safety and health programs. This assistance will also
    help in identifying and correcting workplace hazards. Additionally, OSHA has a network of compliance
    assistance specialists in local offices to provide tailored information and training to employers and employees.
    There are 22 states that have OSHA-approved job safety and health programs. These are operated by the
    individual states instead of adhering to federal OSHA standards. All state plans are approved and monitored
    by OSHA, and they require that state-run safety and health programs must be at least as effective as the
    federal program. If the state programs are compliant, OSHA provides as much as 50% of the funding for each
    program (OSHA, n.d.-b).

    What is the downside of lax compliance with OSHA requirements? After years of a legal anomaly that
    prevented OSHA from increasing penalties, in 2016, Congress passed legislation that allowed the agency to
    adjust penalties to more appropriate and modern levels. Serious violations of the law increased from $7,000
    to $12,471 per violation. Failure to abate dangerous or hazardous conditions rose from $7,000 to $12,471 per
    date after the date recorded on an OSHA citation for correction of the violation. In addition, willful or repeated
    violations increased from $70,000 to $124,709 per violation (Smith, 2016).

    In 2016, OSHA released new injury and illness reporting rules that change the way employers have long done
    business and in an unusual twist, call into question employers’ drug testing practices after accidents.
    Traditionally, employers track and maintain injury information internally, though fatalities and serious injuries
    must be reported to OSHA immediately. The new rule, however, requires electronic submission of the
    information by the employer annually to OSHA. In turn, OSHA will then publish the data online for anyone to
    access. There are also new requirements related to employee involvement in employer recordkeeping
    practices and the prevention of discrimination and retaliation. Employers must inform each employee how to
    properly report a work-related injury or illness. Further, employers must establish a reasonable procedure for
    employee reporting. A process is not reasonable if it would prevent or discourage a reasonable employee

    HRM 6302, Employment Law 3

    UNIT x STUDY GUIDE
    Title

    from correctly reporting a workplace injury or illness. Employers must inform employees of their right to report
    injuries and illnesses and inform them that they cannot be fired or discriminated against for reporting
    (Petrides, 2016).

    The twist is the impact on employer drug testing policies. In conjunction with this new rule, OSHA announced
    that policies that call for across-the-board testing after an accident deter employees from reporting injuries
    and may not be reasonable. OSHA indicates that employers should engage in post-injury drug testing only
    when there is a reasonable potential that drug use by the reporting employee contributed to the injury or
    illness and further, only when the test can precisely indicate that impairment was caused by the use of drugs
    (Petrides, 2016). This guidance does not appear to prevent testing where there are facts that support that
    drugs could have contributed to the incident, such as slurred speech, glazed eyes, stupor, or other signs
    generally associated with drug or alcohol intoxication. Beyond this, it may be a challenge to determine when it
    is appropriate to drug test employees following reported accidents, injuries, and illnesses.

    Workplace violence is an area that can affect all employers and has increasingly been in the forefront of
    OSHA’s attention. Workplace violence is any act or threat of physical violence, harassment, intimidation, or
    other threatening disruptive behavior that occurs at the workplace. It includes a wide range of actions from
    threats and verbal abuse to physical assaults and even homicide (OSHA, n.d.-c). It can affect and involve
    employees, clients, customers, and visitors. Among many incidents is one in 2010, which occurred as two
    dozen employees worked at a Penske truck rental facility near Atlanta. A former employee, dressed in
    camouflage, came to the facility and fatally shot three workers and injured two others. Subsequently, a
    survivor of one of the workers killed in the shooting sued Penske, claiming that the company had been
    making threats to come to the property and hurt employees and that the company therefore had an obligation
    to protect its employees (Bluestein, 2010).

    According to OSHA (n.d.-c), homicide is the fourth-leading cause of fatal occupational injuries in the United
    States accounting for more than 400 of the workplace fatalities in 2014. Further, nearly 2 million American
    workers report having been workplace violence victims annually and many cases go unreported (OSHA, n.d.-
    c). While there is no magic way to predict where workplace violence will occur, OSHA has identified workers
    with elevated risk of being victims of violence as those who exchange money with the public, delivery drivers,
    healthcare professionals, public service workers, customer service agents, law enforcement personnel, and
    workers who work by themselves or in small groups. Additional risk factors include working in a location
    where there is the service of alcohol and working late at night or in areas with known high crime rates.

    To combat workplace violence, OSHA recommends employers establish a zero-tolerance policy covering not
    only workers, but also anyone exposed to workers in the workplace. Further, employers should assess their
    workplaces, identify risk factors, and implement methods of reducing risk. Training, too, can reduce the
    incidence of workplace violence and inform workers what concerns they should report, how to report
    concerns, and how to respond if an incident occurs.

    Clearly, establishing and maintaining a safe and healthy workplace is a goal that requires attention on a daily
    basis, not only from HR staff, but also just as importantly from managers and workers. Government entities
    such as OSHA protect workers in the workplace and require employers to provide risk reduction and safe
    work environments through education, training, and government assistance. Within organizations, employers
    must ensure management is knowledgeable about their responsibilities, as well as resources available to help
    them achieve safety goals. HR has the responsibility of keeping this critical goal in front of the members of the
    organization and avoiding complacency because just one incident can have devastating effects.

    References

    Bluestein, G. (2010, April 2). Widow: Penske warned of threats before shooting. Boston Globe.

    http://archive.boston.com/business/articles/2010/04/02/widow_penske_warned_of_threats_before_sh
    ooting/

    Bureau of Labor Statistics. (2016, October 27). Employer-reported workplace injuries and illnesses – 2015

    [News release]. U.S. Department of Labor.
    https://www.bls.gov/news.release/archives/osh_10272016.pdf

    HRM 6302, Employment Law 4

    UNIT x STUDY GUIDE
    Title

    Occupational Safety and Health Administration. (n.d.-a). Law and regulations. United States Department of
    Labor. https://www.osha.gov/law-regs.html

    Occupational Safety and Health Administration. (n.d.-b). State plans. United States Department of Labor.

    https://www.osha.gov/dcsp/osp/index.html

    Occupational Safety and Health Administration. (n.d.-c). Workplace violence. United States Department of

    Labor. https://www.osha.gov/SLTC/workplaceviolence/

    Petrides, T. H. (2016, May 19). OSHA issues new illness and injury recordkeeping rule that casts doubt upon

    commonplace employer drug testing and safety incentive policies. The National Law Review, 6(140).
    http://www.natlawreview.com/article/osha-issues-new-illness-and-injury-recordkeeping-rule-casts-
    doubt-upon-commonplace

    Pitiquen, J. (n.d.). Occupational safety (ID 24098844) [Graphic]. Dreamstime.

    https://www.dreamstime.com/stock-images-occupational-safety-image24098844

    Smith, A. (2016, October 19). Steep new penalties under OSH Act raise compliance concerns. Society for

    Human Resource Management. https://www.shrm.org/resourcesandtools/legal-and-
    compliance/employment-law/pages/osh-act-penalties.aspx

    Suggested Unit Resources

    In order to access the following resources, click the links below.

    The following PowerPoint presentation supplements the textbook chapter reading and is provided for further
    knowledge and review of the unit materials.

    Chapter 14 presentation (PowerPoint) or Chapter 14 presentation (PDF)

    Learning Activities (Nongraded)

    Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit
    them. If you have questions, contact your instructor for further guidance and information.

    At the end of each chapter of your textbook, scenario-driven questions provide legal issues and realistic
    situations that relate to employment law. Exploring these questions allows you the opportunity to further your
    understanding of the concepts in each chapter and prepares you for similar situations you may encounter in
    your workplace.

    • Review the Chapter 14 questions in your textbook on pages 592–593.

    **## EmploymentLawHRM6302UnitVIICaseStudy.docx**

    2

    Employment Law HRM 6302

    Unit VII Case Study

    Analyze the case of SeaWorld of Florida v. Perez, 2014 U.S. App. LEXIS 6660 (D.C. Cir.) located in your textbook on pp. 559-564, including the opinion of Judge Rodgers as well as the dissenting opinion of Judge (now-Supreme Court Justice) Brett Kavanaugh.

    Write a case study review of the court’s opinion that answers the questions below. Support your review with analysis and evidence from the unit reading and outside sources.

    · What are the legal issues enforced by the Occupational Safety and Health Administration (OSHA) and presented in this case? How did the plaintiff establish a valid violation under the General Duty Clause of the OSH Act? Explain how the elements of a valid claim were satisfied under the OSH Act.

    · How does OSHA enforce workplace safety and health standards?

    · Do you agree with the court’s decision? Should or could SeaWorld have done more to abate the hazard? Support your position.

    Your paper should be a minimum of five pages, not including the title and reference pages. You are required to use a minimum of three sources, one of which may be your textbook as reference material for your case study. Adhere to APA Style when constructing this assignment, including in-text citations and references for all sources that are used. Please note that no abstract is needed.

    This
    **Case Study Example** provided by the CSU Writing Center shows this type of formatting.

    **## UnitVIIStudyGuide.pdf**

    HRM 6302, Employment Law 1

    Course Learning Outcomes for Unit VII

    Upon completion of this unit, students should be able to:

    8. Evaluate the Occupational Safety and Health Administration’s (OSHA) regulatory power in the context
    of workplace safety.
    8.1 Summarize the manner in which OSHA enforces workplace safety and health standards.
    8.2 Explain the requirements of the Occupational Safety and Health (OSH) Act.
    8.3 Assess a legal case for compliance with OSHA standards.

    Required Unit Resources

    Chapter 14: Occupational Safety and Health, pp. 551–591

    Unit Lesson

    The primary objective of workplace safety is the prevention of workplace injuries, illnesses, and fatalities. In
    2014, almost 4,821 U.S. workers died from workplace injuries. There were approximately 2.9 million nonfatal
    workplace injuries and illnesses (Bureau of Labor Statistics, 2016). These incidents cost businesses huge
    sums of money and take a significant toll on the victims and their families. One death is too many, but the
    number of deaths, injuries, and illnesses has generally declined over time, due in no small measure to safety
    requirements at the federal level. Prior to the passage of the Occupational Safety and Health Act (OSH Act) in
    1970, only the common law bound employers to provide employees with a safe workplace. Further,

    UNIT VII STUDY GUIDE
    Occupational Safety and Health

    Occupational Safety
    (Pitiquen, n.d.)

    HRM 6302, Employment Law 2

    UNIT x STUDY GUIDE
    Title

    employers had several common law defenses that often enabled them to avoid liability. Employees had few
    protections from unscrupulous employers who eschewed safety for profit.

    The OSH Act covers almost all employers and employees and is critically important to those who support
    employment law compliance. Any employer in a business affecting commerce is subject to and covered by
    the OSH Act. The limited exceptions to coverage are primarily the self-employed and farms that employ only
    immediate family of the owner. Workplaces covered by other federal laws, such as the mining, nuclear,
    railroad, and airline industries, as well as state and local governments (unless otherwise permitted by state
    law) are also excluded from the OSH Act (OSHA, n.d.-a).

    The OSH Act imposes two basic requirements on employers to accomplish the goal of a safe workplace.
    First, the employer must comply with all the safety and health standards set by the U.S. Department of Labor
    (DOL). Second, the employer must furnish each of its employees a workplace free from recognized hazards
    that are causing or likely to cause death or serious physical harm.

    The Occupational Safety and Health Administration (OSHA), which falls under the DOL, is charged with
    enforcing the OSH Act. OSHA translates the basic requirements imposed on employers by the OSH Act into
    specific actions. OSHA holds employers responsible for proactively adopting safety practices, communicating
    them to employees, ensuring employees use them, monitoring working conditions, alerting employees to
    potential hazards, and reporting work-related deaths and injuries (OSHA, n.d.-a). OSHA has established
    industry standards to inform employers how to guarantee a safe and healthy workplace. The four major
    categories of OSHA standards are general, construction, maritime, and agriculture. To determine the industry
    standards an employer needs to follow, he or she must determine the appropriate industry code that applies
    to the organization within the North American Industry Classification System (NAICS).

    While some OSHA standards are specific to one industry, many of them apply across industries, such as
    standards for personal protective equipment and hazardous communication. Most employers will need to
    implement a combination of standards including the associated training and safety inspection requirements to
    be compliant. OSHA requires that employers prominently display federal workplace health and safety posters
    in their workspaces.

    To help employers navigate the requirements imposed on them, OSHA’s website contains a wealth of
    information for various types of employers, including small businesses. The site’s resources include
    interactive tools for both employers and employees. Every state has free workplace consultations available to
    small businesses that want onsite help in establishing safety and health programs. This assistance will also
    help in identifying and correcting workplace hazards. Additionally, OSHA has a network of compliance
    assistance specialists in local offices to provide tailored information and training to employers and employees.
    There are 22 states that have OSHA-approved job safety and health programs. These are operated by the
    individual states instead of adhering to federal OSHA standards. All state plans are approved and monitored
    by OSHA, and they require that state-run safety and health programs must be at least as effective as the
    federal program. If the state programs are compliant, OSHA provides as much as 50% of the funding for each
    program (OSHA, n.d.-b).

    What is the downside of lax compliance with OSHA requirements? After years of a legal anomaly that
    prevented OSHA from increasing penalties, in 2016, Congress passed legislation that allowed the agency to
    adjust penalties to more appropriate and modern levels. Serious violations of the law increased from $7,000
    to $12,471 per violation. Failure to abate dangerous or hazardous conditions rose from $7,000 to $12,471 per
    date after the date recorded on an OSHA citation for correction of the violation. In addition, willful or repeated
    violations increased from $70,000 to $124,709 per violation (Smith, 2016).

    In 2016, OSHA released new injury and illness reporting rules that change the way employers have long done
    business and in an unusual twist, call into question employers’ drug testing practices after accidents.
    Traditionally, employers track and maintain injury information internally, though fatalities and serious injuries
    must be reported to OSHA immediately. The new rule, however, requires electronic submission of the
    information by the employer annually to OSHA. In turn, OSHA will then publish the data online for anyone to
    access. There are also new requirements related to employee involvement in employer recordkeeping
    practices and the prevention of discrimination and retaliation. Employers must inform each employee how to
    properly report a work-related injury or illness. Further, employers must establish a reasonable procedure for
    employee reporting. A process is not reasonable if it would prevent or discourage a reasonable employee

    HRM 6302, Employment Law 3

    UNIT x STUDY GUIDE
    Title

    from correctly reporting a workplace injury or illness. Employers must inform employees of their right to report
    injuries and illnesses and inform them that they cannot be fired or discriminated against for reporting
    (Petrides, 2016).

    The twist is the impact on employer drug testing policies. In conjunction with this new rule, OSHA announced
    that policies that call for across-the-board testing after an accident deter employees from reporting injuries
    and may not be reasonable. OSHA indicates that employers should engage in post-injury drug testing only
    when there is a reasonable potential that drug use by the reporting employee contributed to the injury or
    illness and further, only when the test can precisely indicate that impairment was caused by the use of drugs
    (Petrides, 2016). This guidance does not appear to prevent testing where there are facts that support that
    drugs could have contributed to the incident, such as slurred speech, glazed eyes, stupor, or other signs
    generally associated with drug or alcohol intoxication. Beyond this, it may be a challenge to determine when it
    is appropriate to drug test employees following reported accidents, injuries, and illnesses.

    Workplace violence is an area that can affect all employers and has increasingly been in the forefront of
    OSHA’s attention. Workplace violence is any act or threat of physical violence, harassment, intimidation, or
    other threatening disruptive behavior that occurs at the workplace. It includes a wide range of actions from
    threats and verbal abuse to physical assaults and even homicide (OSHA, n.d.-c). It can affect and involve
    employees, clients, customers, and visitors. Among many incidents is one in 2010, which occurred as two
    dozen employees worked at a Penske truck rental facility near Atlanta. A former employee, dressed in
    camouflage, came to the facility and fatally shot three workers and injured two others. Subsequently, a
    survivor of one of the workers killed in the shooting sued Penske, claiming that the company had been
    making threats to come to the property and hurt employees and that the company therefore had an obligation
    to protect its employees (Bluestein, 2010).

    According to OSHA (n.d.-c), homicide is the fourth-leading cause of fatal occupational injuries in the United
    States accounting for more than 400 of the workplace fatalities in 2014. Further, nearly 2 million American
    workers report having been workplace violence victims annually and many cases go unreported (OSHA, n.d.-
    c). While there is no magic way to predict where workplace violence will occur, OSHA has identified workers
    with elevated risk of being victims of violence as those who exchange money with the public, delivery drivers,
    healthcare professionals, public service workers, customer service agents, law enforcement personnel, and
    workers who work by themselves or in small groups. Additional risk factors include working in a location
    where there is the service of alcohol and working late at night or in areas with known high crime rates.

    To combat workplace violence, OSHA recommends employers establish a zero-tolerance policy covering not
    only workers, but also anyone exposed to workers in the workplace. Further, employers should assess their
    workplaces, identify risk factors, and implement methods of reducing risk. Training, too, can reduce the
    incidence of workplace violence and inform workers what concerns they should report, how to report
    concerns, and how to respond if an incident occurs.

    Clearly, establishing and maintaining a safe and healthy workplace is a goal that requires attention on a daily
    basis, not only from HR staff, but also just as importantly from managers and workers. Government entities
    such as OSHA protect workers in the workplace and require employers to provide risk reduction and safe
    work environments through education, training, and government assistance. Within organizations, employers
    must ensure management is knowledgeable about their responsibilities, as well as resources available to help
    them achieve safety goals. HR has the responsibility of keeping this critical goal in front of the members of the
    organization and avoiding complacency because just one incident can have devastating effects.

    References

    Bluestein, G. (2010, April 2). Widow: Penske warned of threats before shooting. Boston Globe.

    http://archive.boston.com/business/articles/2010/04/02/widow_penske_warned_of_threats_before_sh
    ooting/

    Bureau of Labor Statistics. (2016, October 27). Employer-reported workplace injuries and illnesses – 2015

    [News release]. U.S. Department of Labor.
    https://www.bls.gov/news.release/archives/osh_10272016.pdf

    HRM 6302, Employment Law 4

    UNIT x STUDY GUIDE
    Title

    Occupational Safety and Health Administration. (n.d.-a). Law and regulations. United States Department of
    Labor. https://www.osha.gov/law-regs.html

    Occupational Safety and Health Administration. (n.d.-b). State plans. United States Department of Labor.

    https://www.osha.gov/dcsp/osp/index.html

    Occupational Safety and Health Administration. (n.d.-c). Workplace violence. United States Department of

    Labor. https://www.osha.gov/SLTC/workplaceviolence/

    Petrides, T. H. (2016, May 19). OSHA issues new illness and injury recordkeeping rule that casts doubt upon

    commonplace employer drug testing and safety incentive policies. The National Law Review, 6(140).
    http://www.natlawreview.com/article/osha-issues-new-illness-and-injury-recordkeeping-rule-casts-
    doubt-upon-commonplace

    Pitiquen, J. (n.d.). Occupational safety (ID 24098844) [Graphic]. Dreamstime.

    https://www.dreamstime.com/stock-images-occupational-safety-image24098844

    Smith, A. (2016, October 19). Steep new penalties under OSH Act raise compliance concerns. Society for

    Human Resource Management. https://www.shrm.org/resourcesandtools/legal-and-
    compliance/employment-law/pages/osh-act-penalties.aspx

    Suggested Unit Resources

    In order to access the following resources, click the links below.

    The following PowerPoint presentation supplements the textbook chapter reading and is provided for further
    knowledge and review of the unit materials.

    Chapter 14 presentation (PowerPoint) or Chapter 14 presentation (PDF)

    Learning Activities (Nongraded)

    Nongraded Learning Activities are provided to aid students in their course of study. You do not have to submit
    them. If you have questions, contact your instructor for further guidance and information.

    At the end of each chapter of your textbook, scenario-driven questions provide legal issues and realistic
    situations that relate to employment law. Exploring these questions allows you the opportunity to further your
    understanding of the concepts in each chapter and prepares you for similar situations you may encounter in
    your workplace.

    • Review the Chapter 14 questions in your textbook on pages 592–593.

    – 1
    – 2

  • [Solved] grammer

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    Read and watch sections [GB 4 of our textbookLinks to an external site.](https://mytext.cnm.edu/lesson/gb4-structure-of-a-sentence/). [GB4: Structure of a Sentence – myText CNM](https://mytext.cnm.edu/lesson/gb4-structure-of-a-sentence/) Sections 1-2 should be review for you. Take notes on GB 3 and …

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    Read and watch sections [GB 4 of our textbookLinks to an external site.](https://mytext.cnm.edu/lesson/gb4-structure-of-a-sentence/).    [GB4: Structure of a Sentence – myText CNM](https://mytext.cnm.edu/lesson/gb4-structure-of-a-sentence/) Sections 1-2 should be review for you.  Take notes on GB 3 and GB4 using [this form](https://cerritos.instructure.com/courses/97767/files/13355140?wrap=1 "Cornell Notes Template 02.doc") [Download this form](https://cerritos.instructure.com/courses/97767/files/13355140/download?download_frd=1). This means you will have at least 4 main points that you write and at least 2 questions for each section. Once you done, upload the completed form as an attachment to this assignment.
    Sentence structure, especially sentence variety in your writing will be part of what we will work on this semester. Make sure you understand the different types of sentences. Here is another [handout](https://cerritos.instructure.com/courses/97767/files/13355149?wrap=1 "SENTENCE TYPES 152.docx") [Download handout](https://cerritos.instructure.com/courses/97767/files/13355149/download?download_frd=1) which explains sentence structure and types of sentences.
    template attached
    sentences form attached
    \
    CornellNotesTemplate02.doc](https://www.sweetstudy.com/files/cornellnotestemplate02-doc "CornellNotesTemplate02.doc")
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    SENTENCEhandout.docx](https://www.sweetstudy.com/files/sentencehandout-docx "SENTENCEhandout.docx")

  • [Solved] A-Literature review 5

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    In-depth study guidance and analytical solution covering A-Literature review 5.

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  • [Solved] BUS 225 Project Two Guidelines and Rubric

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    ## BUS 225 Project Two Guidelines and Rubric ### Competency In this second part of the four-part project series, you will demonstrate your mastery of the following competency: – Analyze quantitative and qualitative data to solve problems and make decisions that impact organizations and their stakeho…

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    ## BUS 225 Project Two Guidelines and Rubric
    ### Competency
    In this second part of the four-part project series, you will demonstrate your mastery of the following competency:
    – Analyze quantitative and qualitative data to solve problems and make decisions that impact organizations and their stakeholders
    ### Scenario
    You have been asked to present your data findings and decision-making modeling to the leadership team for feedback before the stakeholder meeting presentation. The leadership team wants to preview the charts and graphs that will be included in your presentation based on the research you have conducted. The team would like to see how you will use the data to support your recommendation and how you will tell the story using data.
    ### Directions
    **Part 1**: Using the research gathered in Project One, **use a visualization** for each of the following items, and then summarize what the data is showing about them.
    1. **The current state of the U.S. automotive manufacturing industry**
    1. Sales by fuel type
    2. **Current automotive industry trends**
    1. The trend toward different types of motors for the vehicles being made and sold
    2. Trends in customer demands such as vehicle color, extra features, and styles
    3. Trends in the body types of vehicles sold (SUVs, trucks, sedans)
    3. **Trends in the chosen industry**
    1. Expected growth areas
    2. Sales by type of products or services offered
    3. Trends in customer demands
    4. **Summary of all the data visualized**
    1. Summarize the collective data about both industries.
    2. Determine what the data is not telling you about the chosen industry.
    **Part 2**: **Analyze three decision-making models** and **select the one model** that is best suited for making your decision.
    1. **Analyze and provide an overview of the following three models and select one for use**
    1. The Rational Model
    2. The Intuitive Model
    3. The Recognition-Primed Model
    2. **Explain your recommended decision-making model**
    1. Why does your selection make the most sense for this project?
    ### What to Submit
    To complete this project, you must submit a **Microsoft PowerPoint presentation** of 12 to 15 slides with speaker notes. Sources should be cited according to APA style.
    ### Project Two Rubric
    CriteriaExceeds Expectations (100%)Meets Expectations (85%)Partially Meets Expectations (55%)Does Not Meet Expectations (0%)Value **Current State of the U.S. Automotive Industry** Exceeds expectations in an exceptionally clear, insightful, sophisticated, or creative mannerVisually shows the current state of the U.S. automotive manufacturing industryShows progress toward meeting expectations, but with errors or omissions; areas for improvement may include inaccurate visualization or inaccurate dataDoes not attempt criterion15 **Current Automotive Industry Trends** Exceeds expectations in an exceptionally clear, insightful, sophisticated, or creative mannerVisually shows the current automotive industry trendsShows progress toward meeting expectations, but with errors or omissions; areas for improvement may include inaccurate visualization or inaccurate dataDoes not attempt criterion15 **Chosen Industry Trends** Exceeds expectations in an exceptionally clear, insightful, sophisticated, or creative mannerVisually shows the chosen industry trendsShows progress toward meeting expectations, but with errors or omissions; areas for improvement may include inaccurate visualization or inaccurate dataDoes not attempt criterion15 **Summary of the Data Visualized** Exceeds expectations in an exceptionally clear, insightful, sophisticated, or creative mannerProvides a summary of all of the data visualizedShows progress toward meeting expectations, but with errors or omissions; areas for improvement may include missing key elements or inaccurately summarized visualizationsDoes not attempt criterion15 **Analyzes the Three Models** Exceeds expectations in an exceptionally clear, insightful, sophisticated, or creative mannerAnalyzes the three models listed and selects one for useShows progress toward meeting expectations, but with errors or omissions; areas for improvement may include analysis that is incomplete or inaccurateDoes not attempt criterion10 **Selection of Decision Making Model** Exceeds expectations in an exceptionally clear, insightful, sophisticated, or creative mannerExplains selection of decision making modelShows progress toward meeting expectations, but with errors or omissions; areas for improvement may include explanation that is lacking in detail or cursory explanationsDoes not attempt criterion10 **Clear Communication** Exceeds expectations with an intentional use of language that promotes a thorough understandingConsistently and effectively communicates in an organized way to a specific audienceShows progress toward meeting expectations, but communication is inconsistent or ineffective in a way that negatively impacts understandingShows no evidence of consistent, effective, or organized communication10 **Citations and Attributions** Uses citations for ideas requiring attribution, with few or no minor errorsUses citations for ideas requiring attribution, with consistent minor errorsUses citations for ideas requiring attribution, with major errorsDoes not use citations for ideas requiring attribution10 **Total:** 100%

  • [Solved] Week 6 Discussion Response- Marketing for Competitiveness

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    **Marketing for Competitiveness** **Week 6 Discussion Response** **Colleague 1** Katlyn Bone When I think about companies that have mastered branding and innovation, Nike, Inc. immediately comes to mind. Nike is a global leader in athletic footwear, apparel, and equipment, and its influence extends …

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    **Marketing for Competitiveness**
    **Week 6 Discussion Response**
    **Colleague 1**
    Katlyn Bone
    When I think about companies that have mastered branding and innovation, Nike, Inc. immediately comes to mind. Nike is a global leader in athletic footwear, apparel, and equipment, and its influence extends well beyond sports. With its iconic “Just Do It” campaign and commitment to innovation, Nike has created a loyal following that continues to fuel its success.
    I believe Nike could benefit from capturing even more market share because higher share not only signals industry leadership but also strengthens bargaining power with suppliers, lowers production costs through scale, and creates resilience against competitors like Adidas or Under Armour. As Riserbato (2021) points out, understanding and tracking market share is essential for companies to evaluate where they stand and how to grow strategically.
    To expand further, Nike could focus on three strategies. First, expanding direct-to-consumer (DTC) channels would allow Nike to build stronger customer relationships and increase profit margins by bypassing wholesale middlemen (Carmicheal, 2021). Second, investing in sustainability marketing—through initiatives like Nike Move to Zero—would not only appeal to eco-conscious consumers but also reinforce brand differentiation (Carmicheal, 2021). Finally, Nike could strengthen its presence in emerging markets such as Asia and Latin America, where localized campaigns and accessible product lines could win over new customers (Riserbato, 2021).
    In short, Nike already leads the industry, but continuing to innovate, connect with customers, and expand globally can help it secure a larger share of the market and remain the brand of choice for athletes and everyday consumers alike.
    References:
    Carmicheal, K. (2021, June 9). _5 ways to increase your market share_. HubSpot. [https://blog.hubspot.com/marketing/increase-market-share](https://blog.hubspot.com/marketing/increase-market-share)
    Riserbato, R. (2021, November 5). _What is market share & how do you calculate it?_ HubSpot. [https://blog.hubspot.com/marketing/market-share](https://blog.hubspot.com/marketing/market-share)
    **Colleague 2**
    Anna Kelsch
    Hello everyone!
    Increasing Market Share: A Case Study of McDonald’s
    Company Overview
    The McDonalds Corporation is a chain of restaurants that includes over 69 million clients, and it operates twenty-four hours a day and serves over a hundred international customers all over the world (McDonalds, 2023). It is a franchisor company and one of the first movers of the Quick-service restaurant (QSR) of business because of its burgers, fries and value meal McDonald.
    The Pros of the Market Share Enhancement.
    The market share of McDonalds will guarantee the company will conquer the entire fast-food market in the entire world and more specifically at the new market where the market competitors of McDonalds like KFC, Burger king and the home countries brands are expanding at very high rates. The growth in the market share, the economies of scale, the enhancement of the bargaining with the supplies and brand presence will boost the sales volume of the company. Beyond this the market share also will need to be forced up or it will become a retaliation to the over-saturated market and destroyed customer taste.
    Three Strategy Recommendations in an attempt to win market share.
    1. Introduction of Healthy-Eating Menu.
    This will make sure that people will become health conscious and consequently force McDonalds to continue adding more healthy food to their menu such as salads, plant burgers and other low-caliber food. Not only is it appealing to a new generation, but also it is the brand McDonalds that can satisfy the new diet requirement of the new world. To attract new clients, cooperation with health foods brands will also be applied (Smith and Lee, 2022).
    2. Customer Retention Web and Change.
    The second point, which McDonald can capitalize on the young and the tech-savvy segments of the market, is the launching of mobile ordering and delivery and custom-made app. My McDonalds reward system already is offered in the U.S and can be offered to the other states to make the business and retention possible once again (Taylor, 2023). Promotion can also be streamlined using data analytics.
    3.Sustainability and Brand image.
    Generation millennials/ gen Z are consumers who are socially responsible and environmentally friendly. McDonalds can add the additions and devote more physical and esthetic resources to the direction that would also include the possibility of the fully reusable packaging, the reduction of the quantity of carbon that it would emit to the environment and the choice of suppliers that would be ethical to seize the market share. The logical extension of such a credibility enhancement and the qualifications of the third parties is that the degree of trust and belief between the mass and the consumers can also evolve (Green and Johnson, 2023).
    Conclusion
    The McDonalds is being sufficiently marketed and brand equity within the entire world and can gain more market share in case of invention and negatively to the dynamic needs of the consumers. The fact that even the consideration of the health trend, the establishment of electronic technologies and the establishment of its sustainability program will allow the McDonald to be in a position to defend itself, not to mention the fact that it will allow it to win a tremendous share of the market of one of the most competitive markets such as fast-food.
    Green, R., & Johnson, L. (2023). _Sustainable growth strategies in the fast-food industry_. Journal of Business Ethics, 176(2), 210–225.
    McDonald’s Corporation. (2023). _Annual Report 2022_. [https://corporate.mcdonalds.com](https://corporate.mcdonalds.com/)
    Smith, J., & Lee, M. (2022). _Health trends in QSR: Responding to the modern consumer_. Food Industry Review, 34(4), 56–67.
    Taylor, B. (2023). _The rise of QSR loyalty programs: How McDonald’s is leading the way_. QSR Magazine. [https://www.qsrmagazine.com/loyalty-programs-mcdonalds-2023](https://www.qsrmagazine.com/loyalty-programs-mcdonalds-2023)
    \
    Week6Discussion-MarketingforCompetitiveness.docx](https://www.sweetstudy.com/files/week6discussion-marketingforcompetitiveness-docx "Week6Discussion-MarketingforCompetitiveness.docx")
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  • [Solved] Week 6 Discussion Response- Account for Managment Discussion Making

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    **Accounting for Management Discussion Making** **Week 6 Discussion Response** **Colleague 1** Katlyn Bone For this week’s discussion, I chose to focus on **Blue Cross Blue Shield of Texas (BCBSTX)**. As the largest health insurance provider in the state and part of Health Care Service Corporation (…

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    **Accounting for Management Discussion Making**
    **Week 6 Discussion Response**
    **Colleague 1**
    Katlyn Bone
    For this week’s discussion, I chose to focus on **Blue Cross Blue Shield of Texas (BCBSTX)**. As the largest health insurance provider in the state and part of Health Care Service Corporation (HCSC), BCBSTX plays a critical role in offering health coverage to individuals, employers, and government programs. With millions of members across Texas, the company’s ability to make effective managerial decisions is central to both its operational success and the quality of service it provides.
    When looking at its organizational structure, BCBSTX reflects a **hybrid model that leans toward decentralization**. While HCSC sets high-level policies, compliance rules, and corporate strategy, much of the day-to-day decision-making happens closer to the customer. Regional leaders, account executives, and product teams have the authority to respond to client needs, adjust offerings, and manage relationships. OpenStax (2022a) highlights that decentralized organizations distribute authority through multiple layers, which helps ensure that those closest to the issues can act quickly and effectively. This matches what we see in practice at BCBSTX.
    The difference between centralized and decentralized decision-making is especially important in this context. In a centralized structure, major decisions funnel through top executives, which can slow responsiveness. In contrast, decentralized structures allow managers at different levels to carry out operational decisions within the boundaries set by leadership. OpenStax (2022b) emphasizes that this difference is not absolute—most organizations fall somewhere in between—but the key distinction lies in whether routine authority resides primarily at the top or is distributed across the organization.
    There are several clear advantages to BCBSTX’s decentralized-leaning approach:
    1. **Responsiveness to Clients and Markets**
    Decentralization allows leaders in Texas to tailor products and service strategies for local markets, ensuring faster adaptation to employer and individual needs (OpenStax, 2022a, 2022b).
    2. **Employee Empowerment and Growth**
    When decision-making is pushed closer to the client, employees feel more ownership and accountability. This not only improves morale but also helps develop stronger managerial talent for the future (OpenStax, 2022b).
    3. **Efficiency and Speed**
    Removing bottlenecks by not requiring every decision to go through the corporate center means BCBSTX can react quickly to regulatory changes, market pressures, or client issues—an advantage in such a competitive industry (OpenStax, 2022a).
    In short, BCBSTX’s decentralized structure provides a balance between corporate oversight and local flexibility. By empowering managers to make timely decisions while staying aligned with organizational goals, the company is better positioned to serve its members effectively and remain competitive.
    References
    OpenStax. (2022a). _Principles of accounting, volume 2: Managerial accounting_. Rice University. [https://openstax.org/books/principles-accounting-volume-2-managerial-accounting](https://openstax.org/books/principles-accounting-volume-2-managerial-accounting)
    OpenStax. (2022b). _9.2 Describe how decision-making differs between centralized and decentralized environments_. In _Principles of accounting, volume 2: Managerial accounting_. Rice University. [https://openstax.org/books/principles-accounting-volume-2-managerial-accounting/pages/9-2-describe-how-decision-making-differs-between-centralized-and-decentralized-environments](https://openstax.org/books/principles-accounting-volume-2-managerial-accounting/pages/9-2-describe-how-decision-making-differs-between-centralized-and-decentralized-environments)
    **Colleague 2**
    Lauren Adkins
    **Walmart: Centralized Structure and Managerial Decision Making**
    **Organizational Overview**
    Walmart Inc. is one of the largest retailers in the world, with thousands of stores spread across various countries the firm deals in groceries, household products, clothing, electronics, and financial services. Managerial accounting analysis is of particular interest due to its structure, given its size, and the requirement for uniformity in pricing and operations.
    **Centralized Structure**
    Walmart is a centralized organization, with key strategic and operational decisions, such as buying, supply chain management, and pricing, being centralized at the corporate level. An example of this centralization is the way corporate leadership negotiates with suppliers on behalf of all stores, rather than each store manager making decisions about procurement or pricing. This corresponds to the definition of centralized management presented by Franklin, Graybeal, and Cooper (2019), in which decisions are made at the top level instead of being dispersed across divisions or store-level managers.
    **Three Advantages of Centralization at Walmart**
    1. **Economies of Scale in Purchasing:** By centralizing procurement, Walmart will be able to negotiate bulk prices with localized suppliers and lower the cost per unit, as well as maintain uniform pricing in the different regions (Franklin et al., 2019).
    2. **Standardized Operations:** Corporate control brings about uniformity in policy on inventory management, store layouts, and customer service standards. This decreases variability and increases efficiency in thousands of locations.
    3. **Clear Accountability:** Because major decisions are made at the top, responsibility for results rests with corporate leadership. This makes performance evaluation simpler, particularly when assessing cost centers such as supply chain and logistics [filecite].
    **Managerial Accounting Implications**
    The centralized model of Walmart affects the structure of responsibility centers. As an illustration, stores are often managed as cost centers, which means they are operated on managing operating expenses rather than making independent profit decisions. On the contrary, corporate functions are concerned with profit and the investment center. Centralized structures also result in less transfer pricing between divisions, as internal transfers (e.g., goods between distribution centers and stores) are centralized at headquarters. According to Franklin et al. (2019), centralized decision-making decreases the autonomy of divisions yet enhances consistency and control [filecite].
    **References**
    Franklin, M., Graybeal, P., & Cooper, D. (2019). _Principles of accounting, volume 2: Managerial accounting_. OpenStax. [https://openstax.org/books/principles-managerial-accountingLinks to an external site.](https://openstax.org/books/principles-managerial-accounting)
    Walden University, LLC. (2021). _Transfer pricing_ [PDF]. Walden University Blackboard.
    Walden University, LLC. (2021). _How to calculate transfer pricing_ [PDF]. Walden University Blackboard.
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