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What type of responsibility center would a Kohl’s Café within the department store be considered?

In an effort to increase the number of shoppers coming into its stores and the length of time those shoppers stay, Kohl’s (KSS) is adding a small café (Kohl’s Café) to each of two of its department stores in the Milwaukee, Wisconsin area. Each café will sell Caribou Coffee items including lattes, cappuccinos, and other […]

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Now that Dyson owns a battery firm, how will the transfer price for batteries used in its vacuums be determined?

Dyson, the vacuum cleaner manufacturer, recently made a large investment in a battery technology firm, Sakti3.  Sakti3 is a Michigan-based startup that is working on a solid-state battery.  These solid-state batteries would last approximately twice as long as current lithium-ion batteries. Solid-state batteries also do not use liquid electrolyte, the lithium-ion substance that can cause […]

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How should the cost of national advertising by Whole Foods impact the performance report (and segment margin) for each store?

Whole Foods Market, Inc., is a supermarket chain based in Austin, Texas, with 381 stores in the US (it also has stores in the UK and Canada.)  Whole Foods specializes in natural and organic food and has annual sales of $13 billion. In October 2014, Whole Foods rolled out its first national advertising campaign in […]

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How does cost cutting at Best Buy impact its ROI?

Best Buy is struggling to thrive (and some would say it is even struggling to survive) as it competes with online giant Amazon.com. According to a recent article in Forbes, one way Best Buy is aiming to improve its financial outlook is to cut its cost of goods sold through supply chain efficiency gains. Questions […]

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What type of quality cost is involved with Toyota’s Prius recall?

Toyota issued a recall in February 2014 for its hybrid Prius.  Cars that were built between 2010 and 2014 were recalled globally for a software glitch in the engine control unit (ECU). Customers need to return to the dealer to have the repairs made to fix the issue. Questions What type of quality costs is […]

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How should Amazon Web Services price its services to Zappos?

Amazon.com has some of the biggest data centers in the world, where it runs cloud-based hosting services.  Amazon Web Services, Inc. (AWS), is the division of Amazon.com that provides compute, storage, and database services to a wide variety of companies, including GE, Netflix, Pfizer, Pinterest, and others. Amazon’s divisions also use its cloud-based hosting services. […]

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What are the costs and ethics involved in a recall of surge protectors?

In October 2013, Schneider Electric recalled 15 million of its SurgeArrest surge protectors.  The models recalled were the series APC 7 and APC 8 (manufactured before 2003.) The company warned at that time that the surge protectors could overheat, smoke, and start a fire.  These surge protectors were manufactured before 2003; between the date of […]

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