Planning for sustainability, Strategic Management

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

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

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

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

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

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

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

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

Posted Date: 3/5/2013 6:54:14 AM | Location : United States







Related Discussions:- Planning for sustainability, Assignment Help, Ask Question on Planning for sustainability, Get Answer, Expert's Help, Planning for sustainability Discussions

Write discussion on Planning for sustainability
Your posts are moderated
Related Questions
Q. What do you mean by Inventory days? (Average inventory / Cost of sales)     x      365 days Average inventory can be arrived by taking this year's and last year's invento

Integrated Marketing Communication (IMC ) and Marketing Channel strategy : Develop a promotional strategy addressing the advertising and sales promotion aspect of communic

Payback period = total cost of investment / estimated annual revenue

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

Consider the Chester River Health System (CRHS) Strategic Planning example. Taking information only from these two sources into account, formulate an Environmental Assessment of CR

Comparison of Conventional and JIT Wisdom  JIT philosophy Ideal lot size is 1 Balanced production is best Inventory is wasteful Eliminate waste Handle only so

Define Managerial Process of Crafting & Executing Strategy the managerial ins & outs of crafting & executing company strategies. Special thought is given to management's direc

Question: (a) Many organizations consider the maintenance function as a critical operational and decision making area that can guarantee plant availability and reliability. A

The M.V Star of the orient is a 14,000 ton-cruise ship that was built in 1977. The ship is Greek-registered and Hong-Kong owned. The ship spent the ten years prior to 1989 cruising

Question 1 "Use anger correctly and improvements will happen!" To what extent this statement is true? Question 2 Company "Great Success" wishes to train its staffs o