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Question: Generation Y (born between 1980 and 2001)


Generation Y (born between 1980 and 2001) is entering the work force and advancing their careers now, as the baby boomers begin to retire in large numbers. Given the smaller size of Gen Y compared to the baby boomers, this generation received much more individual attention from their immediate and extended families. Classes in school were much smaller than in previous generations. The parents of Gen Y placed a premium on achievement, both academically and socially. Gen Y grew up during a time of unprecedented economic growth and prosperity, combined with an explosion in technology (including laptop computers, cell phones, the Internet, e-mail, instant messaging, and online social networks). Gen Yers are connected 24/7 and are able to work anywhere, frequently multitasking. Due to the unique circumstances of their upbringing, they are said to be tech-savvy, family- and friends-centric, team players, achievement-oriented, but alsoattention-craving.63Some have called Generation Y the “trophy kids,” due in part to the practice of giving all Gen-Y children trophies in competitive activities, not wanting to single out winners and losers. When coaching a group of Gen-Y students for job interviews, a consultant asked them how they believe future employers view them. She gave them a clue to the answer: the letter E. Quickly, the students answered confidently: excellent, enthusiastic, and energetic. The answer the consultant was looking for was “entitled.” Baby boomers believe that Gen Y has an overblown sense of entitlement. When they bring so many positive characteristics to the workplace, why do baby boomers view Gen-Y employees as entitled? Many managers are concerned that these young workers have outlandish expectations when compared with other employees: They often expect higher pay, flexible work schedules, and promotions and significant raises every year, and generous vacation and personal time.64 Managers also often find that forge-Y employees, the traditional annual or semiannual performance evaluations are not considered sufficient. Instead, Gen-Y employees seek more immediate feedback, ideally daily or at least weekly. For many, feedback needs to come in the form of positive reinforcement rather than as a critique. The generational tension seems a bit ironic, since the dissatisfied baby boomer managers are the same indulgent parents who raised Gen Yes. Some companies, such as Google, Intel, and Sun Microsystems (Sun), have leveraged this tension into an opportunity. Google, for example, allows its engineers to spend one day a week on any project of their own choosing, thus meeting the Gen-Y need for creativity and self-determination. Executives at Intel have learned to motivate Gen-Y employees by sincerely respecting their contributions as colleagues rather than relying on hierarchical or position power. The network-computing company Sun accommodates Gen Yes’ need for flexibility through drastically increasing work-from-home and telecommunicating arrangements, so that basically all employees now have a “floating office.” Netflix meanwhile has eliminated all tracking of vacation time for employees, essentially allowing unlimited days off—as long as the work still gets done.

1. As this cohort enters the work force, do you expect to sea different set of business ethics take hold?
2. Are efforts such as the MBA oath (discussed in this chapter) reflections of a different approach that Gen Y will take to the business environment, compared with prior generations?



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> Select an industry and consider how the industry life cycle has affected business strategy forthe firms in that industry over time. Detail your answer based on each stage: introduction, growth, shakeout, maturity, and decline.

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> “The growth of consumer information organizations, legal requirements, and warranty requirements has caused significant increases in the cost of customer satisfaction. Thus it is no longer useful to talk about profit maximization as a company objective.”

> Elaborate on the basic economic questions of what, how, and for whom. Provide specific examples of these questions with respect to the use of a country’s scarce resources.

> Over the years, the market demand for “long-playing records made of polyvinyl has fallen considerably as new technologies replaced the old “LP.” Yet, LPs are still available for sale and they sell at price points higher (in some cases much higher) than C

> Define scarcity and opportunity cost. What role do these two concepts play in the making of management decisions?

> The following are the monthly changes in the index of leading economic indicators during 2001 and January 2002: What would be your prediction for the U.S. economy in 2002? January February +.1 August September October +.1 -.6 March -.3 +.1 April Мa

> (Read the “The Market for Used Automobiles” section in Appendix 4A before answering the question.) When prices of used cars dropped about 10 percent in October 2001, their sales increased by 4.5 percent. Does this mean that the demand elasticity for used

> A Canadian apparel company, Roots, agreed to provide the U.S. Olympic team at the 2002 Winter Olympics with various types of clothing, including berets, for free, and further, to turn over a portion of its profits on sales of this clothing to the U.S. Ol

> A company has 2 million shares outstanding. It paid a dividend of $2 during the past year, and expects that dividends will grow at 6 percent annually in the future. Stockholders require a rate of return of 13 percent. What would you expect the price of e

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> If the income elasticity of tomatoes is estimated to approximate +0.25, what would you expect to happen to the consumption of tomatoes as personal income rises?

> You have been asked to produce a forecast for your company’s product, bottled water. Discuss the kind of information you would look for in order to make this forecast.

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> Various depreciation methods can be used to arrive at an accounting profit number. From the viewpoint of the economist, how should annual depreciation be determined?

> Illustrate the example of the world sugar market with supply and demand diagrams. Be sure to show how the relative shifts in supply and demand have led to the reduction in the world price of sugar.

> Could a straight-line demand curve ever have the same elasticity on all its points?

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> The immediate effect of gasoline price increases in the aftermath of the Persian Gulf crisis in August 1990 on gasoline consumption was not very significant. Would you expect the consumption of gasoline to be more severely affected if these higher prices

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> Manhattan was allegedly purchased from Native Americans in 1626 for $24. If the sellers had invested this sum at a 6 percent interest rate compounded semiannually, how much would it amount to today?

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