E Servicescapes On Hotel Website Information Technology Essay

E Servicescapes On Hotel Website Information Technology Essay Last chapter, the background research has been mention and present. This study is focus on testing the e-serviscapes dimension on a hotel website. Few studies on e-servicescapes have been noticed in industry and organization. One of the example is E-servicescapes of BB website . The reserch has attempted to examine the dimension of e-servicescapes as antecedents of perceived e-servicescape quality of BB website . Jeon Jeong (2009) are also attempt to measure e-servicescapes qualities of BB website and investigates dimensions of the e-servicescapes most influence customer decision making. Regarding to the research above, this study is testing the e-servicescapes dimension on the intention of using hotel website by applying the past research conceptual framework. The purpose of this literature review is to identify the related issues within the e-servicesapes on a hotel website. In order to gain a clearer and better understanding, it is definitely to explore the related literature reg arding the e-servicesape. Following that, the key aspects of this review is to measure the dependent variable which is the intention of internet browser to browse hotel website. The literature review is focused on the theoretical definition and empirical studies in regards to the areas. Servicescapes has used in the development of e-servicescapes framework. In this chapter, related theory and variables will be further explained. 2.2 Servicescapes For your information, servicescape is known as the physical environment of an organization in several different elements such as overall layout, design and dà ©cor . Bitner (1992) define servicescapes as a service packages by categorize it in three environmental dimensions, which are ambient conditions, space or function, and sign, symbols, and artifacts. First of all, ambient conditions are sensory elements which consist of temperature, air quality, noise, music, light, smell, color and so on . Next, space or function are refers to layout equipment, furnishings and others items arrangement and functionality . Sign, symbol and artifact are means to be signage, personal artifacts, style of decoration and so on . These environmental dimensions or we shall say physical elements will give impact on customers and employees. Hence leads to internal responses in cognitive, emotional, and physiological . Due to the impacts given by environmental dimensions, customers and employees behavior will be influence in order to approach or avoid certain product or service . Typology of service organizations based on variations in form and usage of the servicescape are able to categorize in three types, self service, interpersonal services, and remote services . Hotel is one of interpersonal services which include both customer and employee. As the standards of lifestyle increasing, applying servicescapes in hotel services is important. Hotel as a service organization who developing with servicescape, it is actually enhance customer satisfaction and increase in repeat business . According to Kandampully Suhartanoto (2000) research, companys image contributes value addition and increases the customer satisfaction towards the product and service provided by the company. Customer satisfaction and company image are positively related to customer loyalty . A positive perceived in cognition, emotion, and physiological will leads to positive approach behavior . Hence, an intention for customer to continuously utilize service and product of hotel will occur. 2.3 E-servicescapes on hotel website Nowadays, online retailing is steadily growth. Company or organization are adopting information technology to run business online as e-merchant . Base on the Jeon Jeong (2009) study research, a framework had been built in previous study on servicescapes and customer relationships in service organization in physical setting and on the website environment . Figure 1 depicts is the framework for environmental dimensions affecting perceived e-servicescapes: Adapted from: Jeon Jeong (2009) Figure 1: A framework for environmental dimensions affecting perceived e-servicescapes The framework shows that the four environmental dimensions of e-servicescapes are ambient conditions, design aspects, search aids slogans and functional aspects. In the context of e-servicescapes, these four dimensions will provide customers with communication cues . Perceived e-servicescapes quality and intention to use a BB website were affected by the environmental dimensions of e-servicescapes . The major vary between serviscapes and e-serviscapes is the physical and non-physical elements. Unlike servicescapes, e-servicescapes have no physical elements in Internet service environment . Dimensions between servicescapes and e-servicescapes might are similar in terms of definition, but is different in some characteristic in terms of environment . There were no physically interaction between customer and employees when service provided . In this modern area, service or sales that involve online or go through by website, the e-servicescapes may be the key factor in playing a role of representing company or organization to customers . By using internet, information provided from website is giving intangible benefits of interaction with websites . Internet also allow customer to have more choices in terms of service and product and giving opportunity to customer to compare price and features of relevant product and service through vary website . In order to survive in competitive environment, hotel companies are increasingly adopt on having an electronic distribution partner which know as online travel agencies . According to Sullivan (2005) report analysis, internet users are increasingly using search engine to get information. Besides that, demand towards usage of search engine from different websites are increase as well . No matters from organization perspective or consumer perspective, developing a hotel website has become a trend or a must in order to optimize organization revenue and fulfill customer demands . 2.4 Independent Variables 2.4.1 Ambient conditions Under servicescapes framework, ambient condition is one of the environmental dimension, it also known as one of the factor that affect human perception and respond towards environment . According to Bitner (1992), human five senses are mostly affected by ambient conditions which include background characteristic such as room temperature, lighting, noise, music, and scent. Sensory stimulation are greatly influence environments, enhance customer experience and change the nature behavior beyond human conscious . In e-servicescapes, ambient conditions influence customer perception by the website service environment . Background characteristic of website such as color, quality photos, virtual tour, music and animation effects are affecting people perceived towards the website . One of the characteristic of ambient conditions, music has be tested in research study on the role of cognition and emotions in the music approach and avoidance behavior relationship . It is found that the service quality of the organization is rated according to the preference of music . Organization which is often playing customer preferable music are offer with higher rating . Hence, a suitable music applies on hotel website might leads to intention to use the website. Rather than that, customers also use to perceive certain subject base on appearance . Website design are important in acting as website appearance . The clarity and readability of text and size of fonts use to be important for appropriate visual presentation on website . A relevant research has shown that customer perceived company or personnel base on appearance . This result shows that people are use to have a lousy perception with not appropriate appearance . By applying the result in H.Dean (2010) study, it is o bvious that quality photo and colors are playing an important role in hotel website to represent hotel image as well for the first good impression to have customers intention for further browse hotel website. Animation or virtual tour is effective in presenting information towards people . Byrne et al. (1999) state that use of picture and animations are commonly accepted. Animations appears better in presenting information . A research on dyslexia people on educating with animation has shoes that animation did a better job in presenting information . All the research above has one common which is the animation, high quality picture and website design are effective in presenting information. In short, all the background characteristic of ambient conditions is important in create intention of user to use hotel website. 2.4.2 Design Aspect Service environment are purposeful environments because it fulfill consumer needs through employee actions . Base on what have study by Bitner (1992), spatial layout are refers to the arrangement, size and shape of item such as machinery, equipment and furnishings. Functionality are the ability of the item to perform and accomplish goal . Design aspect of website is view as overall structure of the ages, layout, space and the navigational functions . Poorly design website are not able to hold customer intention to surf on it . It had been claims that website design is directly influence in turning a web browser to customer . Web users attention is hardly to get to hold on a webpage in longer time. In order to grab web users attention for longer period, it is suggested that home page should be relatively simple, clean and clear content, and hit to the point since users are not sure whether they are at the right website to obtain the information they wanted . Information overload in one page will lead to delay in viewing a home page and leads to dissatisfaction of web users . However, too little information or too simple in a web page might not able to include important content of the website . Therefore, website designer feels that it is important to be balance in website layout distribution and have to be self content in over all structure . Sum, design aspect of website in terms of layout and space usage is important in holding web users attention. 2.4.3 Search aids and Slogans According to Bitner (1992) research, sign, symbols, and artifacts are serving as explicit and implicit signal to communicate with users. They can also as labels for directional purposes and to communicate with the rule of behavior . Signage helps in playing an important part in communicating firm image to customer . For example, a well known hotel are usually been recognize by the customer with company logo or symbol. Under servicescapes perspective, these symbol and artifacts can be use to create awareness in customer mind . In online perspective, some of the features of Bitner (1992) are useful in creating awareness in company website, such as company logo and slogans. Geissler (2001) research is supporting Bitner (1992) that symbol and logo of the company manage to create customer awareness. However, due to the absence of physical environment in e-servicescape, keywords or slogan use in search aids are replace the function of signage to help customer to locate hotel website . In search engine, meta-tag are been use to help in locate website by using pop up technique . Meta-tag are useful when come to indexing, search engines use meta-tag to locate information . A past research evaluated the effectiveness of meta-tag on the improvement of data retrieval on the World Wide Web and the results shows that the keyword meta-tag did improve information retrieval . Meta-tag are also have improved the rank of the selected articles among retrieved results of information . Base on Geissler (2001) research study, it is believed that using keywords in search aids is speeding up customer in locate relevant website. Besides using keywords, catchy phrases will draw internet browsers attention on websites as well rather than using plain text . Keywords are use to locate website easily by using search engines and meta-tag. Therefore, search aids and slogan are important in hotel website in the purpose of explored itself widely in the internet for being easily located by customer. Awareness created by implementing search aids and slogan dimension will be able to grab customer intention in using website. 2.4.4 Functional Dimension The functional aspect of a website will affect customer perception towards website and intention on browsing it . Website is been recognize as a convenient, low cost and easy accessible by every medium . Accessibility 2.3.1 Intention to use website

Brazilian Jiu Jitsu A Modern Martial Art Form History Essay

Brazilian Jiu Jitsu A Modern Martial Art Form History Essay Brazilian Jiu Jitsu, the Gentle Art, is a relatively modern martial art. Its roots however stretch all the way back to the days of the samurai. How, you ask, did this system of fighting make its way to the other side of the world? It all began with the founding of Judo, the precursor to Jiu Jitsu, in the 1880s. Jigoro Kano, the founder of Judo, had studied many ancient Japanese forms and techniques. In his new style he used only the most effective techniques from the indigenous Japanese arts; he called his creation Kodokan Judo. The difference between Kanos new style and the ancient styles was that it could also be used as self defense, because non-cooperative free training was highly emphasized. This new form of training not only prepared the body, but also the mind and it changed the martial arts world as a whole. It was Judo that began the wave on other styles relying more on effectiveness and free-sparring, than on flashy techniques that do not actually work. In the late 1800s, Kanos Judo was put to the test at the Tokyo Police Tournament. There he fought many opponents and won all but two matches, which were declared a draw. His style was indeed the most effective of the time considering Jigoro Kano was smaller and weaker than the other practitioners. Judo remained undefeated for many years, until a master from a Japanese school teaching ancient fighting styles finally won. The loss came due to Kanos lack of experience at fighting on the ground, which was the opponents focus in training. After this loss, the weakness of Judo was exposed, as new schools began challenging the Kodokan Judo and winning on the ground. From this moment on, ground fighting was trained extensively at the Kodokan. A few years after ground fighting was implemented at the Kodokan, Esai Maeda began training at the school. He excelled far past his fellow students and went down in history as one of the greatest practitioners of Judo, or Judoka, in the world. He remained undefeated in his fighting career in Japan. In 1904 Professor Kano sent Maeda to the United States to help spread Judo. Throughout his travels, Maeda fought countless opponents; some say he even had over a thousand matches. He is credited as having a spotless record, with zero losses. All over the world, this new Judo was catching on, as the style proved more effective than others. At his retirement, Maeda was literally a human encyclopedia of Judo, and he wanted to share his knowledge. In the early 1900s Maeda decided to move to Brazil with the wave of Japanese immigrants going there. He settled in Rio de Janeiro and established a Judo school there. One of his first students was the now famous, Carlos Gracie. Gracie excelled just as Maeda had years ago and eventually became the best student. Carlos eventually went on to open his own school. Throughout the years, Gracie and his brothers continued to teach and perfect their Judo. The youngest of the brothers, Helio, was not allowed to train because he was very weak and constantly ill. He took notes and gave tips on how to make moves more effective and helped his brothers develop their own style. In 1928 Carlos Gracie and his brothers cannot teach a lesson at their school, so youngest brother Helio fills in for them. Even with his weak and frail body, he was able to maneuver and control his students. He had finally perfected the art of Judo; this new form of Judo became known as Gracie Jiu Jitsu, or Brazilian Jiu Jitsu. The brothers were amazed at young Helios incredible technique. What made him so good was that he used his opponents weight and force against them. He was a smart man and used his knowledge in physics to help him by incorporating levers and momentum into his newly developed style. In 1931 the professional boxer, Antonio Portugal, was defeated by Helio, proving that with Brazilian Jiu Jitsu, a smaller and less athletic person could beat a larger and more athletic one. His goal was to provide anyone of any size the techniques in which you could defend yourself against any one of any size. This was only the first of countless victories that the Gracie family would see. In the 1940s Helio challenged Joe Louis, the professional heavyweight champion of boxing, to prove the superiority of Brazilian Jiu Jitsu. The boxer, who looked like a giant next to Gracie, declined and the two never fought. The two actually became friends and taught one another their techniques. Years later, at the peak of Helios fighting days, he fought Masahiko Kimura who was considered to be the best Japanese fighter at the time. Kimura outweighed Gracie by over eighty pounds, and was much stronger. Helio fought for over thirteen minutes before he was caught in a shoulder lock that broke his shoulder. Still, he did not give up and continued to fight, until his brother threw in the towel to prevent any serious injury. Kimura was so impressed with the performance of Helio and his modified style that he invited him to teach it at schools in Japan. The last of his memorable fights was the one against Waldemar Santana. Santana was 20 years younger and heavier than Gracie, he also studied at the Gracie Academy. The fight went on and on for about five hours, with Santana as the victor. Even though Helio lost, his style proved supreme. He was able to defend himself against a much younger and stronger assailant for hours at a time. It also proved to be effective in self defense, because the young challenger also knew the secrets of Jiu Jitsu, where an attacker on the street would probably not. In the early 1980s Rorion Gracie, Helios eldest son, moved to California to spread the familys Brazilian Jiu Jitsu. He was not welcomed at martial arts schools with his unorthodox methods and unusual fighting style. This eventually led to him inviting martial artists of all styles from around the world for a match against him. The event came to be known as the Gracie Challenge. Gracies Jiu Jitsu proved more effective than every challengers martial art, including Kung Fu, wrestling, boxing, and karate. The challenge was made to prove that simple yet effective movements are crucial to self defense, rather than flashy and eye-catching techniques. The Gracie family finally got their big break in 1994 when Rorion Gracie began the Ultimate Fighting Championship, or the UFC. In this competition martial styles were put up against one another without any restrictions or weight classes. Royce Gracie, the youngest of Rorions brothers, was the first to compete. He ended up winning the entire competition, making opponents much larger than him submit. Once again, Brazilian Jiu Jitsu proved to be the most effective and realistic martial art. After the first few Ultimate Fighting Championships the popularity of Jiu Jitsu skyrocketed in the U.S.; everyone wanted to learn the art. Around this time many of the other Gracie family members began to move to the United States and Japan. Rickson Gracie, considered by many to have been the greatest fighter in the world, revolutionized the sport. He combined all of the techniques his elders taught him, with those from practitioners around the world. He became a complete athlete when he began developing his strength and agility, which, when added to Jiu Jitsu, only made it easier for him to win. He went on to defeat many of the greatest fighters in the world. He eventually retired when his son died, with a record of only wins. Rickson Gracie founded the Rickson Gracie International Jiu-Jitsu Association in 1996 in order to provide a thorough and complete system in which Jiu-Jitsu students, for the first time, are presented with clearly defined standards of progression relating to proper Belt Ranking and Testing. Through the Association, the traditional, technical and philosophical aspects of Jiu-Jitsu can be shared wit h students around the world. (rickson.com) Nowadays, Brazilian Jiu Jitsu is everywhere, from various academies around the world, to police academies, and even the army. Throughout the years it has proved to be the most effective martial art as a whole. The ever-growing popularity of the UFC, and mixed martial arts in general, is associated with the boom in popularity of Brazilian Jiu Jitsu. The championship has now reached its one hundred and fourteenth event. Every fighter currently fighting in the UFC, and any mixed martial arts tournament, has some knowledge of Jiu Jitsu, whether for defense or offense. So even though Brazilian Jiu Jitsu originated from Judo, it has many differences, such as those of body mechanics.

Photojournalism is Subjective NOT Objective Essay examples -- Photogra

Photojournalism has long been considered to have a tradition of reflecting the truth. It has been a major element in newspaper and magazine reporting since the early 20th century. It was probably only about a century ago when people believed that what they saw in photographs was factual. This impact of visual image as seen by the viewer was based on the old belief that "the camera never lies". Wheeler says that photojournalism has "acquired a special standing in the public mind, a confidence that photo can reflect reality in a uniquely compelling and credible way." (Wheeler T, 2002, p. 3) This acquisition is formed by a creation of a powerful picture, which is the combination of both truthfulness and visual impact. "In general, photojournalism is defined as a descriptive term for reporting visual information through various media such as newspapers and magazines." (Newton J, 2001, p. 3) The mid-20th century saw the rise in photojournalism. As Wheeler (Wheeler T, 2002, p. 3) mentioned , "by World War II, America had become a certifiably visual, predominantly photographic culture." Photography is a form of visual representation of events to the public. It is traditionally defined as ‘writing with light'. Photography was more than factual recording of truthful observation. It could be an expression of emotional reaction to life. Although photography has always been thought of as the capturing and the reflection of truth, the discussion of ‘manipulated photography' is often brought up. However, before any debate of manipulated photography, one must begin with the "recognition that photography itself is an inherent manipulation." (Wheeler T, 2002) Ever since its beginnings, photography is subjective, it is not absolute reality and... ... impact of a photo illustration on an audience is far more powerful than a description through words. "Modern imaging technologies have given us new and powerful ways of handling photographs." (Ang T, 2000) Professional journalists have altered mass-mediated photos for reasons from tabloid sensationalism to political correctness. This is due to the fact that they believe the alterations are obvious enough to be instantly recognisable or so minor as to be ethically insignificant. Whatever the case is, the misuse of imaging technologies causes photo illustrations to loss its credibility and objectivity, thus destroying the status of photojournalism. As emphasised earlier, photography itself is a manipulation from its beginnings, this process of manipulation is further enhanced by imaging technologies. Hence, photojournalism cannot be claimed to be neutral and objective.

Teaching Status Report :: Reflective Writing Dunn Education Teaching Essays

Teaching Status Report As the weeks progress and my experiences at Dunn are half over, my opinion on the school, the teachers, and the students continue to change. Since I have had the opportunity to work with two different teachers, my cooperating teacher Mr. Kiernan and the bilingual teacher Ms. Brittingham I have gotten two very different aspects of the school and its teachers. The two teachers could not be any more different. Ms. Brittingham is an older woman who teachers math in the sixth grade bilingual classroom, where Mr. Kiernan is a fairly young teacher who teaches regular seventh great. Ms. Brittingham seems to get involved in the school politics where Mr. Kiernan has never mentioned anything about it. However different they may be, they have one thing in common, they both care about their students and have very good classroom management. Between the two of them I have definitely gotten wonderful examples of how to manage a loud classroom and have efficiently come up with my own style of classroom management. I really like the way Mr. Kiernan is able to be very strict with the students that they respect him, but they all seem to know that he really cares about every student and they like him as a teacher, as well. I feel that Beckie and I are very lucky to have come into a classroom with a very strong teacher guiding us. It seems that many other classrooms have severe discipline problems. I hear teachers coming into our classroom complaining that one of our students acted out again in their classroom yesterday. However, I have not had any sever discipline problems at all with any of the students. Of course many of the students get loud and I have to tell them to quiet down or sit back in their seat but nothing really horrible. There are many students that are annoying, but I don’t see any one of them as being a discipline problem. Apparently, however, some of them are sever discipline problems in other classrooms. When I asked Mr. Kiernan why this was, he simple said, à ¢â‚¬Å"They all know that I won’t put up with it, so they stopped trying.† I feel extremely lucky to have been put with Mr.

Comparing An Occurance at Owl Creek Bridge and The Snows of Kilimanjaro :: comparison compare contrast essays

An Occurance at Owl Creek Bridge and The Snows of Kilimanjaro. Death is an intriguing thing. From time immemorial we have feared it, used it, pondered it. Frequently, stories allow the reader into the minds of those immediatly surrounding the one who will die; but all of us "will die." Our morbid interest is in dying, the going, that threshold between death and life. What happens there? There are similiarities and differences in how death appears to the protagonist, written by Ambrose Bierce in An Occurance at Owl Creek Bridge, and Ernest Hemingway in The Snows of Kilimanjaro. Bierce offers An Occurance at Owl Creek Bridge to show the incredible fantasy that passes through the mind of a man as he dies. Hemingway's engrossing description lies in The Snows of Kilimanjaro. Here, on the African savannah, a man encounters death slowly and with excruciating lucidness. While the differences between the two stories are easy to enumerate, it is the simliarities that may offer the most insight into the minds of the authors and, perhaps, into the minds of us all. The setting for An Occurance at Owl Creek Bridge is northern Alabama during the Civil War. Peyton Farquhar (Peyton) is said to be a planter who is left behind by the Confederate Army due to circumstances "...of an imperious nature," but he longs for the "release of his energies, the larger life of the soldier, the opportunity for distinction." Immaturity seems the watchword for him; the eagerness with which he swallows the bait presented by a Union spy may give a glimpse of the lack of gravity in Peyton's character that leads to his capture and to the fantastic attempt at escape or denial that his mind fabricates just before his death. Peyton is not a realist. Harry is a realist. The protagonist in The Snows of Kilimanjaro faces his pending doom with distinct clarity and resignation. In fact, his insistance greatly distrubs his wife (naturally) who tries to cheer him up by telling him that help is only a day away, and all that is needed to make it is a positive attitude. Harry is positive. He is certain that he will die very soon. He knows the mistake that has sealed his fate. Although he would change the past if he could, he does not seem to lament his end except for the writing he will never do.

Labor Relations,Employee Relations and Global HR

1. Define Job Stress, Burnout and Depression. Job stress is a type of stress that is work-related.   The pressure at work, the challenges and the obstacles that are facing employees each day can result to negative physical and physiological responses. Burnout is a term used to describe the onset of exhaustion after experiencing long-term stress.   This results from being constantly exposed to stressors at work without getting the system a chance to fully recover from adrenaline surges. Depression is characterized by low mood, lack of interest in usual things that excites the person, and lesser capacity to experience pleasure.   This condition is not alarming when it's not pervasive, otherwise, it becomes a psychiatric problem that needs professional attention. Depression can have serious effects on a person's personal life and work. 2. Explain how you would reduce stress at work. Stress impacts our thoughts, emotions, and behavior in a number of ways.   In the workplace, stress makes a person less productive and difficult to deal with. In order to reduce stress at work, a person has to recognize when he or she is experiencing it.   Some of the symptoms and signs of stress are lack of focus, moodiness, depression, and muscle tension, among others. Once a person accepts that he is experiencing stress, the next step is for him to identify what are stressing him at work.   By knowing the stressors, it will be easier for the person to deal with them.   For instance, if an employee doesn't like his job anymore, he can began scouting for other job opportunities in other companies. In most cases, however, a person does not really know what's stressing him at work.   With all the things he needs to face in the office, it would be confusing for him to exactly point out what are causing him stress.   If this were the case, the first thing that the worker needs to do is to take a break and stop working for a few days.   Distancing himself from the entire organization will give him a breathing space and a chance to slow down.   Vacationing to a warm place where there is sand and sea often does wonder to a tired mind and body. 3. Why you believe this approach would be successful. I believe that taking a long vacation would be successful because many people I have talked to have done this.   They always make it a point to go away for a few days every year in order to de-stress and slow down.   After the vacation, the employee is normally back to his old self, ready to face the daily grind at work. If a person who is constantly stressed at work does not give himself the chance to recover, the most likely thing that will happen to him is to feel burnout in the long run.   Rest and relaxation ensures that a person's mind and body will experience rejuvenation before joining the rat race once more. On another note, when stressors are identified and dealt with, the employee's worries and concerns would probably be over.   Say for example that an employee's co-worker is harassing him.   This attitude is causing the person stress.   So long as he doesn't do anything about it, he would continue to feel violated by the harassment he is receiving.  Ã‚   If he brings it out in the open and talks to the right persons, then the harassment would stop and the harassed person will be able to work more comfortably. References Depression.com Home Page.   Retrieved April 15, 2008, from http://www.depression.com/ â€Å"Preventing Burnout: Signs, Symptoms, and Strategies to Avoid It.† Helpguide.org Home Page. Retrieved April 15, 2008, from http://www.helpguide.org/mental/burnout_signs_symptoms.htm â€Å"Understanding Stress: Signs, Symptoms, Causes, and Effects.†Ã‚   Helpguide.org Home Page. Retrieved April 15, 2008, from http://www.helpguide.org/mental/stress_signs.htm      

Course: Contract and Liquid Chemical Co.

The Cost Analysis for Decision Making project is intended to be a comprehensive evaluation of the key objectives covered throughout this course. It will challenge you to apply your knowledge of cost information when evaluating the decision to make or buy a product. Please use this outline and grading rubric as a guide to completing your course project. It provides specific details of the required elements of the project, and it will be used by your instructor as a grading guide. Read Integrative Case 4-61, â€Å"Make versus Buy,† on pages 151 and 152 of the course text.Assume that you are the general manager (Mr. Walsh) faced with this decision. You have identified the following four alternatives available to Liquid Chemical Co. †¢Alternative A: It is the status quo. (i. e. , Liquid Chemical Co. will continue making the containers and performing maintenance. ) †¢Alternative B: Liquid Chemical Co. will continue making the containers, but it will outsource the maintena nce to Packages, Inc. †¢Alternative C: Liquid Chemical Co. will buy containers from Packages, Inc. , but it will perform the maintenance. Alternative D: It is completely outsourced. Packages, Inc. will make the containers and provide the necessary maintenance. Your project should include the following items: †¢Part (a): Discuss each of the four alternatives outlined above. Identify the relevant costs (including amounts) for each of the four alternatives, and explain why these costs are relevant to the decision. Identify any costs that are not relevant, and explain why they are not relevant. What are the advantages and disadvantages of each alternative? Who benefits and who loses? Part (b): Other than the relevant costs identified in Part (a), what additional information would you use when making your decision? Are there financial factors other than those identified in the case study that you would incorporate into your decision? What nonfinancial information would affect y our decision? †¢Part (c): As the general manager, which alternative would you choose, and why? Support your conclusion with facts and figures, as necessary. The Liquid Chemical Company manufactures and sells a range of high-grade products. Many of these products require careful packaging.The company has a special patented lining made that it uses in specially designed packing containers. The lining uses a special material known as GHL. The firm operates a department that maintains and repairs its packing containers to keep them in good condition and that builds new ones to replace units that are damaged beyond repair. Mr. Walsh, the general manager, has for some time suspected that the firm might save money and get equally good service by buying its containers from an outside source. After careful inquiries, he has approached a firm specializing in container production, Packages, Inc. and asked for a quotation. At the same time, he asked Mr. Dyer, his chief accountant, to let h im have an up-to-date statement of the costs of operating the container department. Within a few days, the quotation from Packages, Inc. , arrived. The firm proposed to supply all the new containers required—at that time, running at the rate of 3,000 per year—for $1,250,000 a year, the contract to run for a guaranteed term of five years and thereafter renewable from year to year. If the number of containers required increased, the contract price would increase proportionally.Packages, Inc. , also proposed to perform all maintenance and repair work on existing packaging containers for a sum of $375,000 a year, on the same contract terms. Mr. Walsh compared these figures with Mr. Dyer’s cost figures, which covered a year’s operations of the container department of the Liquid Chemical Company and appear in Exhibit 4. 13. Walsh concluded that he should immediately close the packing container department and sign the contracts offered by Packages, Inc. He felt an obligation, however, to give the manager of the department, Mr.Duffy, an opportunity to question his decision before acting. Walsh told Duffy that Duffy’s own position was not in jeopardy. Even if Walsh closed his department, another managerial position was becoming vacant to which Duffy could move without any loss of pay or prospects. The manager Duffy would replace also earned $80,000 per year. Moreover, Walsh knew that he was paying $85,000 per year in rent for a warehouse a couple of miles away that was used for other corporate purposes. If he closed Duffy’s department, he’d have all the warehouse space he needed without renting additional space.Duffy gave Walsh a number of considerations to think about before he closed the department: â€Å"For instance,† he said, â€Å"what will you do with the machinery? It cost $1,200,000 four years ago, but you’d be lucky if you’d get $200,000 for it now, even though it’s good for another five years. And then there’s the stock of GHL (a special chemical) we bought a year ago. That cost us $1,000,000, and at the rate we’re using it now, it’ll last another four years. We used up only about one-fifth of it last year. Dyer’s figure of $700,000 for materials includes $200,000 for GHL.But it’ll be tricky stuff to handle if we don’t use it up. We bought it for $5,000 a ton, and you couldn’t buy it today for less than $6,000. But you’d get only $4,000 a ton if you sold it, after you’d covered all the handling expenses. † Walsh also worried about the workers if he closed the department. â€Å"I don’t think we can find room for any of them elsewhere in the firm. However, I believe Packages would take all but Hines and Walters. Hines and Walters have been with us since they left school 40 years ago. I’d feel bound to give them a supplemental pension—$15,000 a year each for five years, sa y.Also, I’d figure a total severance pay of $20,000 for the other employees, paid in a lump sum at the time we sign the contract with Packages. † Duffy showed some relief at this. â€Å"But I still don’t like Dyer’s figures,† he said. â€Å"What about this $225,000 for general administrative overheads? You surely don’t expect to sack anyone in the general office if I’m closed, do you? † Walsh agreed. â€Å"Well, I think we’ve thrashed this out pretty well,† said Walsh, â€Å"but I’ve been turning over in my mind the possibility of perhaps keeping on the maintenance work ourselves. What are your views on that, Duffy? â€Å"I don’t know,† said Duffy, â€Å"but it’s worth looking into. We wouldn’t need any machinery for that, and I could hand the supervision over to the current supervisor who earns $50,000 per year. You’d need only about one-fifth of the workers, but you cou ld keep on the oldest and save the pension costs. You’d still have the $20,000 severance pay, I suppose. You wouldn’t save any space, so I suppose the rent would be the same. I don’t think the other expenses would be more than $65,000 a year. † â€Å"What about materials? † asked Walsh. â€Å"We use 10 percent of the total on maintenance,† Duffy replied. Well, I’ve told Packages that I’d give them my decision within a week,† said Walsh. â€Å"I’ll let you know what I decide to do before I write to them. † Assume the company has a cost of capital of 10 percent per year and uses an income tax rate of 40 percent for decisions such as these. Liquid Chemical would pay taxes on any gain or loss on the sale of machinery or the GHL at 40 percent. (Depreciation for book and tax purposes is straight-line over eight years. ) The tax basis of the machinery is $600,000. Also assume the company had a five-year time horizon for this project and that any GHL needed for Year 5 would be purchased during Year 5.