Wk 3 Discussion – Social Errors, Bias, And Fallacies

In the first 2 weeks of this course, you learned about factors that can influence the effectiveness of critical thinking. This week, you learn about the effects of social errors, biases, and fallacies. These elements are helpful in persuasion.

After completing the Learning Activities for the week, please respond to all the inquires below. Your response should be a minimum of 175 words total (approx. 50 words per question).

  • Review the Four Social Errors and Biases presented in Ch. 4 of THiNK: Critical Thinking and Logic Skills for Everyday Life. Which of the social errors/biases in the book are you most affected by? How can you overcome this social error/bias?
  • Ch. 5 describes fallacies (when an argument seems to be correct but isn’t). What is one fallacy you have personally used or seen in an argument? Discuss how critical thinking skills will make you less likely to be influenced by arguments that are based on fallacies and faulty reasoning.
  • Reflect on the learning activities, concepts, ideas, and topics covered this week. Discuss the most interesting activity or concept you learned this week and mention any concepts that are still a bit confusing to you or that you have questions about.
 
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Strategy Formation And Implementation For MYER Holding Limited Australian Department Store

BUSM3200 Strategic Management Assignment marking criteria Semester 1 2017 SIM (45%)

Report Element High Distinction 80-100

Distinction 70-80

Credit 60-69

Pass 50-59

Fail 0-49

Identification of current

business strategy (5%)

 

Demonstrates an excellent understanding of concept of business strategy and insightfully discusses the general type of business strategy that the company/SBU implements by examining its strategy statement and its value chain activities. a wide range of relevant information sources and theories are critically analysed and synthesised to support the discussion.

Demonstrates a good understanding of the concept of business strategy; by examining its strategy statement and its value chain activities, general type of business strategy that the company/SBU implements is clearly identified and logically discussed; a range of relevant information sources and theories are critical analysed and synthesised to support the discussion.

Demonstrates the understanding of the concept of business strategy; by examining its strategy statement and its value chain activities, general type of business strategy that the company/SBU implements is identified and discussed; some relevant information sources and theories are used to support the discussion.

Demonstrates a basic understanding of the concept of business strategy; is able to identify the general type of the company/SBU’s strategy by using some relevant information sources and theories.

Demonstrates a poor understanding of the concept of business strategy; unable to use relevant information to identify the general type of business strategy for the company/SBU; the discussion is poorly presented.

Proposal of ONE new strategic

initiative for the organisation to

implement (10%)

Proposes a strategic initiative that indicates full comprehension of the company’s strategic context. It is sensitive to contextual factors as well as all of the ethical, logical, and cultural dimensions of the problem. Justification of the proposed strategic initiative is complete (for example, contains thorough and insightful explanation) and exhibits the following: logic/reasoning, examines feasibility, and weighs impacts of initiative proposed.

Proposes a strategic initiative that indicates full comprehension of the company’s strategic context. It is sensitive to contextual factors as well as all of the ethical, logical, and cultural dimensions of the problem. Justification of the proposed strategic initiative is complete (for example, contains thorough and insightful explanation) and exhibits the following: logic/reasoning, examines feasibility, and weighs impacts of the initiative, but may miss some subtle points.

Proposes one generic strategic initiative that is rather than one that is individually designed to address the specific contextual factors of the problem. Justification of the proposed initiative is superficial but includes the following: logic/reasoning, examines feasibility, and weighs impacts of the initiative proposed.

Proposes an initiative that is difficult to evaluate because it is vague or only indirectly addresses the problem statement. Justification of potential solutions is superficial and does not include the following: logic/reasoning, examines feasibility, and weighs impacts of the initiative proposed.

Proposes a partial initiative that is inappropriate for the problem or context. Justification of the initiative is poorly done, may be irrelevant, or is inappropriate.

OR (Serious fail) Doesn’t propose a complete solution or proposes a solution that is unrelated to the problem or context. Justification of solutions is not done and/or fails to address the following: logic/reasoning, examines feasibility, or weighs impacts of the initiative.

Development of a strategy

implementation plan (10%)

Implementation plan uses relevant analytical techniques and addresses thoroughly the relevant contextual factors regarding the contents of change, the process of change, and change management for the strategic initiative proposed.

Implementation plan uses relevant analytical techniques and addresses thoroughly the relevant contextual factors regarding the contents of change, the process of change, and change management, but missed some subtle points.

Implementation plan addresses the strategic problem faced by the organiation but ignores some of the relevant contextual factors, and/or uses only partial analytical techniques of change management.

Implementation plan addresses the problem but only in a basic or straight- forward manner, and partially uses analytical techniques for the strategy implementation.

Fails to describe how to implement the strategic initiative in a manner that directly addresses the problem faced shows little understanding of the analytical techniques for change management OR (Serious fail) Fails to propose an implementation plan, or proposes a plan that is unconnected to the problem /context faced by the organisation.

Design of measurements and

evaluation mechanisms for the

strategic initiative

implementation (10%)

The success measurements developed are practical and address all key success factors/aspects in an appropriate hierarchy using the BSC and connected appropriately in the strategy map developed. Justify comprehensively and logically the suitability of the strategic initiative proposed based on the organisation’s strategic context.

The success measurements developed are practical and address most of key success factors/aspects in an appropriate hierarchy using the BSC and connected appropriately in the strategy map developed but may miss some links. Justify well the suitability of the strategic initiative proposed based on the organisation’s strategic context.

The success measurements developed are practical and only address some key success factors in an appropriate hierarchy using the BSC and connected logically in the strategy map developed. Justify reasonably well the suitability of the strategic initiative proposed based on the organisation’s strategic context, but may miss some key contextual issues.

Most of the success measurements developed are practical but only address some key success factors/aspects in an hierarchy using the BSC and connected in the strategy map developed, but may miss some key logic links. Justify the suitability of the strategic initiative proposed based on the organisation’s strategic context, but miss some important contextual issues.

Only a few of the success measurements developed are practical and fails to address key success factors/aspects; show little understanding of the concepts of BSC and strategy map. Failed to justify the suitability of the strategic initiative proposed.

The overall presentation

(including executive summary)

and quality of the report (5%)

The report is well organised and professionally presented, with a well written executive summary.

It shows an exceptionally clear understanding of subject matter and appreciation of issues; well organised, formulated and sustained arguments;

The report is well organised and professionally formatted, with a well written executive summary. It shows a strong grasp of subject matter and appreciation of key issues, but lacks a little on the finer points; it has clearly developed arguments,

The report is logically structured with an executive summary.

It has a competent understanding of subject matter and appreciation of some of the main issues though possibly with some gaps, clearly developed arguments, relevant diagrams and literature use,

The report is correctly formatted with an executive summary.

It has some appreciation of subject matter and issues; work generally lacks in depth and breadth and with gaps. Often work of this grade comprises a simple factual description (i.e. basic

The report is incorrectly structured with a poorly-written executive summary (or executive summary is missed).

The report only comprises a simple factual description (i.e. basic comprehension) but little application or analysis; it presents little appreciation of

 

 

BUSM3200 Strategic Management Assignment marking criteria Semester 1 2017 SIM (45%)

 

Marker: Signature: Date:

well thought out and structured diagrams; relevant literature referenced. Evidence of creative insight and originality in terms of comprehension, application and analysis with at least some synthesis and evaluation.

relevant and well structured diagrams, appreciation of relevant literature and evidence of creative and solid work in terms of comprehension, application, analysis and perhaps some synthesis.

perhaps with some gaps, well prepared and presented. It also has solid evidence of comprehension and application with perhaps some analysis.

comprehension) but little application or analysis. Work of this grade may be poorly prepared and presented. Investment of greater care and thought in organising and structuring work would be required to improve.

subject matter and issues. Work of this grade may be poorly prepared and presented. Investment of greater care and thought in organising and structuring work would be required to improve.

Access and Use Information

professionally and Referencing

(5%)

Students use correctly all of the following information use strategies (use of citations and references; choice of paraphrasing, summary, or quoting; using information in ways that are true to original context; distinguishing between common knowledge and ideas requiring attribution) and demonstrate a full understanding of the ethical and legal restrictions on the use of published, confidential, and/or proprietary information.

Students use correctly three of the following information use strategies (use of citations and references; choice of paraphrasing, summary, or quoting; using information in ways that are true to original context; distinguishing between common knowledge and ideas requiring attribution) and demonstrates a full understanding of the ethical and legal restrictions on the use of published, confidential, and/or proprietary information.

Students use correctly two of the following information use strategies (use of citations and references; choice of paraphrasing, summary, or quoting; using information in ways that are true to original context; distinguishing between common knowledge and ideas requiring attribution) and demonstrates a full understanding of the ethical and legal restrictions on the use of published, confidential, and/or proprietary information.

Students use correctly one of the following information use strategies (use of citations and references; choice of paraphrasing, summary, or quoting; using information in ways that are true to original context; distinguishing between common knowledge and ideas requiring attribution) and demonstrates a full understanding of the ethical and legal restrictions on the use of published, confidential, and/or proprietary information.

Students fail to use correctly one of the following information use strategies (use of citations and references; choice of paraphrasing, summary, or quoting; using information in ways that are true to original context; distinguishing between common knowledge and ideas requiring attribution) and demonstrates a full understanding of the ethical and legal restrictions on the use of published, confidential, and/or proprietary information.

General Comments:

 
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Case Study 2: National Collegiate Athletic Association Ethics And Compliance Program

Case Study 2: National Collegiate Athletic Association Ethics and Compliance Program

Due Week 6 and worth 200 points

Read “Case Study 6: National Collegiate Athletic Association Ethics and Compliance Program,” located on page 444 of the textbook.

Write a four to six (4-6) page paper in which you:

  1. Determine the fundamental ways in which the NCAA’s ethics program failed to prevent the scandals at Penn State, Ohio State, and the University of Arkansas. Support your response with one (1) example from each of these schools’ scandals.
  2. Examine the principal ways in which the leadership of the NCAA contributed to the ethical violations of Penn State, Ohio State, and the University of Arkansas. Support your response with one (1) example from each of these schools’ scandals.
  3. Predict the key differences in the scenarios that occurred at Penn State, Ohio State, and the University of Arkansas if an effective ethics program was in place. Provide a rationale for your response.
  4. Postulate on two (2) actions that the NCAA leadership should take in order to regain the trust and confidence of students and stakeholders.
  5. Recommend two (2) measures that the HR departments of colleges and universities should take to prevent similar incidents from occurring in the future. Provide a rationale for your response.
  6. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other similar Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Describe the business ethics issues and definitions, theories, and frameworks important to organizational ethical decision making and the role of a human resource professional.
  • Determine the role of stakeholder interests, the interrelationship of ethics and social responsibility, and the role of corporate governance in ethics.
  • Analyze scenarios to determine the ethical character of decisions made and the related impact on the organization.
  • Write clearly and concisely about issues in ethics and advocacy for HR professionals using correct grammar and mechanics.
  • Use technology and information resources to research issues in business ethics and advocacy for HR professionals.

Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric

 
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Cultural Influences On Training And Development

Within your essay, include the following points:

  • What are the cultural influences on training and development? Provide two examples.
  • Discuss the effects of cultural continuity and change on organizational succession planning. Provide two examples.
  • How do internal and external social media influence organizational culture?
  • Is social media the most effective way for employees to share knowledge? Explain.

Your essay must be a minimum of two full pages in length, not including the title and reference page. You are required to use a minimum of two outside sources; one must be from the CSU Online Library. All sources used, including the required reading assignments, must be cited and referenced according to APA standards.

 
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Assignment Freeman-Brown Private School Case Study Paper

Due Date: Nov 09, 2018 23:59:59       Max Points: 80

Details:

Refer to the “Freeman-Brown Private School Case Study” document for details pertaining to this assignment.

The board of directors at Freeman-Brown Private School (FBPS) has hired you as part of a consulting team to review the situation and present your findings and recommendations. Write a paper (1,250-1,500 words) that discusses the case. Complete this assignment from the perspective of the hired consultants. Respond to the following questions:

  1. Review how organizations interact with their external environment (as open systems and complex adaptive systems). How effective was Freeman-Brown as an open system at the time of the closure? How effective was Freeman-Brown as a complex adaptive system at the time of the closure?
  2. Review your reading this week on the internal environment of organizations. What is your evaluation of the organizational culture andorganizational climate at the time the decision to close two campuses was made?
  3. What is your evaluation of the decision made by Dr. Murphy and Caudill? What is your evaluation of the process of going about the closure?
  4. Was FBPS demonstrating social responsibility? Discuss the closure impact on three specific stakeholders.
  5. Provide an explanation, using appropriate management theories, for how the administration could have handled the closure effectively with stakeholders? Include one theory from each of the following: the classical approach, the human relations approach, and the modern management approach.
  6. You have been asked to suggest two goals: one long-term and one short-term goal for the future direction of FBPS. Justify your decision.
  7. Present a concluding statement that integrates the 4 functions of management as a means to revamp management at FBPS and meets the recommended goals.

Prepare this assignment according to the guidelines found in the APA Style Guide, located in the Student Success Center. An abstract is not required.

This assignment uses a rubric. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion.

You are required to submit this assignment to LopesWrite. Please refer to the directions in the Student Success Center.

 

Freeman-Brown Private School Case Study 

  1 Unsatisfactory 0.00% 2 Less than Satisfactory 65.00% 3 Satisfactory 75.00% 4 Good 85.00% 5 Excellent 100.00%
70.0 %Content  
10.0 %Freeman-Brown Private School (FBPS) as an Open System and Complex Adaptive System

Evaluation of FBPS as an open system and as a complex adaptive system during the time of the campus closures is absent, inappropriate, or irrelevant. Evaluation of FBPS as an open system or as a complex adaptive system during the time of the campus closures is vague or incomplete. Presentation of facts to support whether FBPS was effective as an open system or as a complex adaptive system is weak or marginal with gaps in presentation. Supporting material is often confusing or inappropriate. Evaluation of the effectiveness of FBPS as an open system and as a complex adaptive system during the time of the campus closures is provided, but at a cursory level. Rudimentary evaluation of the effectiveness of FBPS as an open system and as a complex adaptive system may contain some inconsistencies. Supporting material is of baseline acceptable quality and quantity. Evaluation of the effectiveness of FBPS as an open system and as a complex adaptive system during the time of the campus closures is clear and well integrated Supporting material is of above average quality and quantity. Evaluation of the effectiveness of FBPS as an open system and as a complex adaptive system during the time of the campus closures is definitive and detailed. A thorough evaluation of FBPS as an open system and as a complex adaptive system, including examples and insights that further understanding, is provided. Supporting material is of exceptional quality and quantity.  
10.0 %Organizational Culture and Climate at FBPS Evaluation of the organizational culture and organizational climate within FBPS during the time of the closures is absent, inappropriate, or irrelevant. Evaluation of either the organizational culture or the organizational climate within FBPS during the time of the closures is vague or incomplete. Evaluation of the climate or culture at FBPS is weak or marginal with gaps in presentation. Supporting material is often confusing or inappropriate. Evaluation of the organizational culture and organizational climate within FBPS during the time of the closures is provided, but at a cursory level. Rudimentary evaluation of the climate and culture at FBPS may contain some inconsistencies. Supporting material is of baseline acceptable quality and quantity. Evaluation of the organizational culture and organizational climate within FBPS during the time of the closures is clear and well integrated. Supporting material is of above average quality and quantity. Evaluation of the organizational culture and organizational climate within FBPS during the time of the closures is methodical and detailed. A comprehensive evaluation of both the organizational culture and climate at FBPS, including examples and insights to further understanding, is provided. Supporting material is of exceptional quality and quantity.  
10.0 %Closure Decision and Closure Process Evaluation of the decision to close the campuses and the process of going about the closure is absent, inappropriate, or irrelevant. Evaluation of the decision to close the campuses and the process of going about the closure is vague or incomplete. Evaluation of the impact on three specific stakeholders is weak or marginal, with gaps in presentation. Supporting material is often confusing or inappropriate. Evaluation of the decision to close the campuses and the process of going about the closure is provided, but at a cursory level. The analysis of the decision and process may contain some inconsistencies. Supporting material is of baseline acceptable quality and quantity. Evaluation of the decision to close the campuses and the process of going about the closure is clear and coherent. Supporting material is of above average quality and quantity. Evaluation of the decision to close the campuses and the process of going about the closure is thorough and provides insight to further understanding. Supporting material is of exceptional quality and quantity.  
10.0 %Social Responsibilities and Impact on Stakeholders Evaluation of demonstrated social responsibilities and the impact on three specific stakeholders, is absent, inappropriate, or irrelevant. Evaluation of demonstrated social responsibilities is vague or incomplete. Evaluation of the impact on three specific stakeholders is weak or marginal, with gaps in presentation. Supporting material is often confusing or inappropriate. Evaluation of demonstrated social responsibilities is provided, but at a cursory level. Rudimentary evaluation of the impact on three specific stakeholders may contain some inconsistencies. Supporting material is of baseline acceptable quality and quantity. Evaluation of demonstrated social responsibilities is clear and well integrated. A comprehensive evaluation of the impact on three specific stakeholders is provided. Supporting material is of above average quality and quantity. Evaluation of demonstrated social responsibilities is thorough and well integrated. A thorough evaluation of the impact on three specific stakeholders, including examples and personal insights to further understanding, is provided. Supporting material is of exceptional quality and quantity.  
10.0 %Administration Closure Options Explanation of how the administration could have handled the closure according to organizational theories as specified in the assignment (one theory from each of the three approaches) is absent, inappropriate, or irrelevant. Explanation of how the administration could have handled the closure according to organizational theories as specified in the assignment (one theory from each of three approaches) is vague or incomplete. Supporting material is often confusing or inappropriate. An explanation of how the administration could have handled the closure according to organizational theories as specified in the assignment (one theory from each of three approaches) is provided, but at a cursory level. Supporting material is of baseline acceptable quality and quantity. Explanation of how the administration could have handled the closure according to organizational theories as specified in the assignment (one theory from each of three approaches) is clearly articulated and well integrated. Supporting material is of above average quality and quantity. Explanation of how the administration could have handled the closure according to organizational theories as specified in the assignment (one theory from each of three approaches) is thorough and well integrated. Examples and personal insights are used to further understanding. Supporting material is of exceptional quality and quantity.  
10.0 %Plans for Future Direction of FBPS An identification of one long-term and one short-term plan for the future direction of FBPS is absent, inappropriate, or irrelevant. An identification of one long-term and one short-term plan for the future direction of FBPS is vague or incomplete. The justification of the plans is weak or marginal. Supporting material is often confusing or inappropriate. An identification of one long-term and one short-term plan for the future direction of FBPS is provided, but at a cursory level. The justification of the plans is satisfactory. Supporting material is of baseline acceptable quality and quantity. An identification and justification of the selection of one long-and one short-term plan for the future direction of FBPS are clearly articulated and well integrated. Supporting material is of above average quality and quantity. An identification and justification of the selection of one long-and short-term plan for the future direction of FBPS are thorough and well-integrated. Examples and personal insight are used to further understanding. Supporting material is of exceptional quality and quantity.  
10.0 %Concluding Statement A statement that integrates the 4 functions of management in order to revamp management at FBPS and meet the recommended goals is absent, inappropriate, or irrelevant. A statement that integrates the 4 functions of management in order to revamp management at FBPS and meet the recommended goals is vague or incomplete. Supporting material is often confusing or inappropriate. A statement that integrates the 4 functions of management in order to revamp management at FBPS and meet the recommended goals is provided, but at a cursory level. Supporting material is of baseline acceptable quality and quantity. A statement that integrates the 4 functions of management in order to revamp management at FBPS and meet the recommended goals is clearly articulated and well integrated. Supporting material is of above average quality and quantity. A statement that integrates the 4 functions of management in order to revamp management at FBPS and meet the recommended goals is thorough and well-integrated. Examples and personal insight are used to further understanding. Supporting material is of exceptional quality and quantity.  
20.0 %Organization and Effectiveness  
7.0 %Thesis Development and Purpose Paper lacks any discernible overall purpose or organizing claim. Thesis is insufficiently developed or vague. Purpose is not clear. Thesis is apparent and appropriate to purpose. Thesis is clear and forecasts the development of the paper. Thesis is descriptive and reflective of the arguments and appropriate to the purpose. Thesis is comprehensive and contains the essence of the paper. Thesis statement makes the purpose of the paper clear.  
8.0 %Argument Logic and Construction Statement of purpose is not justified by the conclusion. The conclusion does not support the claim made. Argument is incoherent and uses noncredible sources. Sufficient justification of claims is lacking. Argument lacks consistent unity. There are obvious flaws in the logic. Some sources have questionable credibility. Argument is orderly, but may have a few inconsistencies. The argument presents minimal justification of claims. Argument logically, but not thoroughly, supports the purpose. Sources used are credible. Introduction and conclusion bracket the thesis. Argument shows logical progressions. Techniques of argumentation are evident. There is a smooth progression of claims from introduction to conclusion. Most sources are authoritative. Clear and convincing argument that presents a persuasive claim in a distinctive and compelling manner. All sources are authoritative.  
5.0 %Mechanics of Writing (includes spelling, punctuation, grammar, language use) Surface errors are pervasive enough that they impede communication of meaning. Inappropriate word choice or sentence construction is used. Frequent and repetitive mechanical errors distract the reader. Inconsistencies in language choice (register) or word choice are present. Sentence structure is correct but not varied. Some mechanical errors or typos are present, but they are not overly distracting to the reader. Correct and varied sentence structure and audience-appropriate language are employed. Prose is largely free of mechanical errors, although a few may be present. The writer uses a variety of effective sentence structures and figures of speech. Writer is clearly in command of standard, written, academic English.  
10.0 %Format  
5.0 %Paper Format (use of appropriate style for the major and assignment) Template is not used appropriately or documentation format is rarely followed correctly. Appropriate template is used, but some elements are missing or mistaken. A lack of control with formatting is apparent. Appropriate template is used. Formatting is correct, although some minor errors may be present. Appropriate template is fully used. There are virtually no errors in formatting style. All format elements are correct.  
5.0 %Documentation of Sources (citations, footnotes, references, bibliography, etc., as appropriate to assignment and style) Sources are not documented. Documentation of sources is inconsistent or incorrect, as appropriate to assignment and style, with numerous formatting errors. Sources are documented, as appropriate to assignment and style, although some formatting errors may be present. Sources are documented, as appropriate to assignment and style, and format is mostly correct. Sources are completely and correctly documented, as appropriate to assignment and style, and format is free of error.  
100 %Total Weightage    

 

 

 

 

 

 

 

 

Freeman-Brown Private School Case Study

The following case study is based on true events. Names and identifying details have been modified.

Freeman-Brown Private School (FBPS), based in Illinois, was founded in 1944 by the Brown and Freeman families. Over the years, the school acquired a reputation as a leading academic institution with an advanced curriculum. Parents described the school as having a highly performing academic environment that provided a rigorous curriculum while fostering a safe, family-oriented atmosphere in a place where community was valued. Not surprisingly, the student population grew and the school opened multiple campuses in the metropolitan area (Bristol, Culpeper, Richmond, Hampton, and Staunton). The Brown and Freeman families eventually sold FBPS to the for-profit, Alabama-based Caudhill International Family of Schools in 2007. The mission of the Caudhill group was to broaden the international focus of FBPS, along with the nine other schools it owned (across the United States, Switzerland, and Mexico). Even under the new ownership, the environment in the various FBPS campuses was still described as achievement-oriented and supportive.

Milestones

· 1944 – Freeman-Brown Private School was founded by the Brown and Freeman families.

· 1944 – Inaugural opening established Hampton campus.

· 1969 – Culpeper campus was established.

· 1981 – Richmond campus was established.

· 2003 – Bristol campus was created.

· 2007 – Freeman-Brown Private Schools joined the Caudhill International Family of Schools.

· 2008 – Culpeper campus relocated to Staunton campus.

· 2008 – The inaugural freshman class joined Freeman-Brown Preparatory High School.

· 2010 – Freeman-Brown Preparatory High School was designated an authorized International Baccalaureate (IB) Programme School.

· 2012 – Freeman-Brown Preparatory (High) School graduated its first class in May.

· 2012 – Freeman-Brown’s new 6th-12th grade Middle and Upper School campus opened in August in North Richmond​.

· 2013 – The Upper School Athletic Complex and Student Center opened.

Within a year of Caudhill owning the school, parents noticed a subtle name change. The school, which was previously known as “Freeman-Brown Private School,” was now “Freeman-Brown Preparatory School.” This name change in itself did not seem to affect the school’s image or functioning at an operational level, but it was an early indication of the strategic direction in which the school would be heading.

In 2008, FBPS attempted to enter the high school business at its Culpeper campus, but that initial attempt was not as successful as anticipated. This was probably a contributory factor to the relocation of the high school to a new state-of-the-art campus in Richmond, known as the North Richmond campus.

A high point for FBPS came in 2010 when it launched its International Baccalaureate Programme (IB Programme). Its first IB graduating class was May of 2012. However, that same year FBPS decided to close both the Culpeper and the Hampton campuses. At the time of the Hampton closure, families were informed that low enrollment was the reason behind the closure and that all other campuses would remain open. The economic recession in the United States between 2005 and 2011 led to many organizations going out of business, and the education sector was not exempt (U.S. Department of Labor, 2013).

In addition to the economic recession, private schools in Illinois have faced intense competition from charter schools, which are independently run public schools. Between 2011 and 2013, two top-rated charter schools opened campuses within 5 miles of the Staunton campus. Some FBPS Staunton campus students transferred to those schools.

In 2013, FBPS sent an e-mail to parents in error, informing them that the Staunton campus (pre-K through middle school) would be discontinued. That e-mail was withdrawn on the same day, and shortly afterwards, the head of the school retired. Caudhill appointed Dr. Audrina Murphy as the new head of the school. Dr. Murphy, a well-educated and experienced administrator, worked with “strategic planning experts” to create a niche and a new mission for the school. Dr. Murphy embraced her new role and continuously assured parents that the Staunton campus would remain open. Parents who attended the Parent Teacher Student Association (PTSA) meeting in mid-December 2013 affirmed that she offered assurances at the meeting.

January 2014

Winter break started on Monday, December 23, 2013, and students were scheduled to return to school on Tuesday, January 7, 2014. On Monday, January 6, 2014, the Staunton campus principal received information that the campus would close at the end of the semester, and this news was conveyed to faculty and staff at the school. Only two campuses would remain open: the Richmond and North Richmond campuses.

Parents were outraged, students were in disarray, and faculty and administration were in shock. If parents had been informed earlier, it would have been possible for them to try to secure a spot for their children at one of the schools nearby. However, open admissions at the surrounding schools had closed earlier in December. Parents attempted to place their children on waiting lists, but most lists had already filled up, some in excess of 800 students. Additionally, many local schools had already completed their hiring for the following academic year, leaving FBPS faculty and staff limited in employment options.

As it turned out, FBPS was not the only school closing campuses. That period was a difficult time for schools in Illinois in general, with reports from the Center for Education Reform (2011) reporting that between 2010 and 2011 the major reasons schools closure were financial, mismanagement, and district-related issues.

Parent Meeting

Parents were invited to a meeting on January 8, 2014, to meet with the head of the school and a Caudhill official. Parents invited the media to the meeting, but the media was denied access. At the onset of the meeting, Dr. Murphy took the podium and began by praising the Staunton campus and its community. These statements bothered some of the parents, who demanded to know why the school was closing if it had all the positive attributes just attributed to it.

The meeting grew tense and heated. Parents felt betrayed because of the timing of the closure announcement. Dr. Murphy stated that buses would be provided to shuttle children ages 2-12 to the new locations. However, the closest campus would require a trip of 40-miles (minimum) twice every day. This would not be a viable option for many parents, but the announcement timing left them with few options.

Other parents tried to negotiate with the administration to run the school for one more academic year so families would have enough time to transition their children. Neither the Caudill official nor Dr. Murphy agreed to this proposed solution.

Some parents offered to pay more in terms of tuition, but administration again did not agree to this proposal. Parents asked if the closure was due to financial reasons. Dr. Murphy replied that finances were “not a factor” and the closure was for “demographic reasons.”

While Dr. Murphy stated that the reason for the closure of the two campuses was not financial in nature, Moody’s analytics reported that the parent company (Caudill) was experiencing some strain. The rating of Moody’s analytics is a representation of the analysts’ opinion of the creditworthiness of an organization. From August 2012 to 2014, the corporate family rating (CFR) went from B2 to Caa2 indicating a lack of confidence in the financial health of Caudill.

Moving Forward

Following the parent meeting in January, some families pulled their children out of FBPS immediately, prior to the completion of the academic year. Those families received no financial reimbursement as parents had signed a contract for the academic year. Other families decided to withdraw from the school at the end of the semester. By June 2014, student population had significantly diminished on the affected campuses.

Some of the students who remained at Staunton planned to transfer to surrounding schools. Few decided to continue at the Richmond and North Richmond campuses. Others registered at Allegiant Academy, a new nonprofit private school opened by parents previously affiliated with Staunton. Kasey Luce, daughter of one of the FBPS founders, came out of retirement to become principal of Allegiant Academy. In addition to her role as principal of the school, Luce was also the president of the nonprofit corporation that owned the school.

Allegiant Academy began with an enrollment of about 100 students (pre-K-8 grade), rising to 120 students by the end of the year. Most of these students were from the Staunton campus population. The school leased a church for its first year to house the school. Parents described Allegiant Academy in positive terms with approximately 90% of families choosing to reenroll for the 2015-2016 academic year.

References

Center for Education Reform. (2011). Appendix D. Closed charter schools by state. Retrieved from https://www.edreform.com/wp-content/uploads/2011/12/CER_FINALClosedSchools2011-1.pdf

U.S. Department of Labor. (2013). Travel expenditures during the recent recession, 2005–2011. Retrieved from http://www.bls.gov/opub/ted/2013/ted_20130115.htm

 

© 2016. Grand Canyon University. All Rights Reserved.

 

4

 
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Case Analysis: Tesla Motors: Disrupting The Auto Industry

Read the case, “Tesla Motors: Disrupting the Auto Industry” on page 576-588 use the case analysis format provided below to address to identify the problems and provide several suggested solutions that the Tesla Motors executive team can review for possible implementation.
Be sure to identify “identify 2 to 3 problems” and “develop 2 to 3 possible solutions to the problems identified”, and use this as the focus for making your case in the case format. Note: The case questions provided at the end of each case can be used as an insight to what the problems might be; so be sure to investigate the case carefully.

*** Required reading attached (Tesla Motors: Disrupting the Auto Industry)

Case Format
I. Write the Executive Summary

  • One to two paragraphs in length
  • On cover page of the report
  • Briefly identify the major problems facing the manager/key person
  • Summarize the recommended plan of action and include a brief justification of the recommended plan

II. Statement of the Problem

  • State the problems facing the manager/key person
  • Identify and link the symptoms and root causes of the problems
  • Differentiate short term from long term problems
  • Conclude with the decision facing the manager/key person

III. Causes of the Problem 

  • Provide a detailed analysis of the problems; identify in the Statement of the Problem
  • In the analysis, apply theories and models from the text and/or readings
  • Support conclusions and /or assumptions with specific references to the case and/or the readings

IV. Decision Criteria and Alternative Solutions

  • Identify criteria against which you evaluate alternative solutions (i.e. time for implementation, tangible costs, acceptability to management)
  • Include two or three possible alternative solutions
  • Evaluate the pros and cons of each alternative against the criteria listed
  • Suggest additional pros/cons if appropriate

V. Recommended Solution, Implementation and Justification

  • Identify who, what, when, and how in your recommended plan of action
  • Solution and implementation should address the problems and causes identified in the previous section
  • The recommended plan should include a contingency plan(s) to back up the ‘ideal’ course of action
  • Using models and theories, identify why you chose the recommended plan of action – why it’s the best and why it would work

VI. External Sourcing

  • 2 to 3 external sources (in addition to your textbook) should be referenced to back up your recommendations or to identify issues. This information would be ideally sourced in current journals, magazines and newspapers and should reflect current management thought or practice with respect to the issues Identify.

The below must be met for your paper to be accepted and graded:

  • Write between 750 – 1,250 words (approximately 3 – 5 pages) using Microsoft Word in APA style, see example below.
  • Use font size 12 and 1” margins.
  • Include cover page and reference page.
  • At least 80% of your paper must be original content/writing.
  • No more than 20% of your content/information may come from references.
  • Use at least three references from outside the course material, one reference must be from EBSCOhost. Text book, lectures, and other materials in the course may be used, but are not counted toward the three reference requirement.
  • Cite all reference material (data, dates, graphs, quotes, paraphrased words, values, etc.) in the paper and list on a reference page in APA style.

References must come from sources such as, scholarly journals found in EBSCOhost, CNN, online newspapers such as, The Wall Street Journal, government websites, etc. Sources such as, Wikis, Yahoo Answers, eHow, blogs, etc. are not acceptable for academic writing.

 

Case 13 Tesla Motors: Disrupting the Auto Industry

Tesla Motors’ strategy was no secret: in 2006 the chairman and CEO, Elon Musk, announced:

So, in short, the master plan is:

· Build a sports car.

· Use that money to build an affordable car.

· Use that money to build an even more affordable car.

· While doing above, also provide zero emission electric power generation options.

· Don’t tell anyone.1

The remarkable thing was that by 2015, Tesla had kept to that strategy and executed it almost flawlessly. Phase 1 (“Build a sports car”) was realized with the launch of its Roadster in 2007. Phase 2 (“Use that money to build an affordable car”) began in 2013 with the launch of the Model S.

The acclaim that greeted both cars had propelled Tesla’s reputation and its share price. Since its initial public offering in June 2010, Tesla’s share price had followed an upward trajectory. On June 12, 2015, Tesla’s stock market value was $31.7 billion. By comparison, Fiat Chrysler was valued at $20.5 billion despite that fact that Fiat Chrysler would sell about 2.5 million cars in 2015 against Tesla’s 55,000. The optimism that supported Tesla’s valuation reflected the company’s remarkable achievements during its short history and investors’ faith in the ability of Elon Musk to realize his vision “to accelerate the advent of sustainable transport by bringing compelling mass market electric cars to market as soon as possible.”2

Indeed, Musk’s vision for Tesla extended beyond revolutionizing the automobile industry: Tesla’s battery technology would also provide an energy storage system that would change “the fundamental energy infrastructure of the world.”

A central issue in the debate over the appropriate market valuation of Tesla was whether Tesla should be valued as an automobile company or as a technology company. In practice, these two issues could not be separated: Tesla’s principal source of revenue would be its cars, but realizing the expectations of earnings growth that were implicit in Tesla’s share price required Tesla to maintain technological leadership in electric vehicles. Given that Tesla’s rivals were some of the world’s largest industrial companies—Toyota, General Motors, Ford, Volkswagen, and Renault–Nissan, to name a few—this was a daunting prospect.

 

Electric Cars

The 21st century saw the Second Coming of electric cars. Electric cars and buses were popular during the 1890s and 1900s, but by the 1920s they had been largely displaced by the internal combustion engine.

Most of the world’s leading automobile companies had been undertaking research into electric cars since the 1960s, including developing electric “concept cars.” In the early 1990s, several automakers introduced electric vehicles to California in response to pressure from the California Air Resources Board. However, the first commercially successful electric cars were hybrid electric vehicles (HEVs). Sales of HEVs in the US grew from 9,350 in 2000 to 352,862 in 2007. By far the most successful HEV, both in the US and globally, was the Toyota Prius, which by early 2010 had sold 1.6 million units worldwide.

Mass production, plug‐in electric vehicles (PEVs) were first launched in 2008. There were two types of PEV: all‐electric cars—of which the pioneers were the Tesla Roadster (2008), the Mitsubishi i‐MiEV (2009), the Nissan Leaf (2010), and the BYD e6 (launched in China in 2010)—and plug‐in hybrid electric vehicles (PHEVs) which were fitted with an internal combustion engine in order to extend their range. General Motors’ Chevrolet Volt, introduced in 2009, was a PHEV.

However, there were also a number of other types of battery electric vehicles (BEVs). Some of these were highway‐capable, low‐speed, all‐electric cars such as the Renault Twizy and the city cars produced by the Reva Electric Car of Bangalore, India. There were also various types of neighborhood electric vehicles (NEVs) intended for off‐road use—these included golf carts and vehicles for university campuses, military bases, industrial plants, and other facilities. Global Electric Motorcars, a subsidiary of Polaris, was the US market leader in NEVs. Most NEVs used heavier, but cheaper, lead–acid batteries.

Electric motors had very different properties from internal combustion engines—in particular they delivered strong torque over a wide range of engine speeds, thereby dispensing with the need for a gearbox. This range of torque also gave them rapid acceleration. Although electric motors were much lighter than internal combustion engines, the weight advantages were offset by the need for heavy batteries—which were also the most expensive part of an electric car, costing from $10,000 to $25,000.

Electric cars were either redesigns of existing gasoline‐powered models (e.g., the Ford Focus Electric and Volkswagen’s e‐Golf) or newly designed electric cars (e.g., the Tesla Roadster and Nissan’s Leaf). Complete redesign had major technical advantages: the battery pack formed part of the floor of the passenger cabin, which saved on space and improved stability and handling due to a lower center of gravity.

Predictions that electric cars would rapidly displace conventionally powered cars had proved false. In 2009, Frost & Sullivan had predicted that the market for electric vehicles (including hybrid electric vehicles) would grow to 0.6 million units worldwide in 2015—about 14% of new vehicles sold.3 In 2014, global registrations of electric cars totaled 340,000. Although this was a 70% increase on 2013, it was a tiny fraction of the total automobile market. The US was market leader in terms of numbers sold, yet electric cars accounted for a mere 0.74% of total car sales. During 2015, the market for electric cars, especially in the US, was adversely affected by lower oil prices: total sales for the first five months of 2015 were little changed from the year‐ago period (Table 1). However, electric car sales in China grew rapidly, overtaking the US as the largest market for electric cars.

 

TABLE 1 Sales of leading models of plug‐in electric cars in the US during January to May (units)

 

  2015 2014
 
Tesla S (estimated) 9,200 9,000
Nissan Leaf 7,742 8,301
Chevrolet Volt 4,400 5,290
BMWi3 3,900 336
Ford Fusion PHEV 3,563 3,553
Ford C‐max Energi PHEV 2,900 2,415
Toyota Prius PHEV 2,426 5,988
Chevy Spark 1,559 454

 

 

Source:  evobsession.

 

While oil prices were an important factor influencing consumer choice between gasoline and electric cars, government incentives were even more important. Norway had the highest penetration of electric cars (14% of the market in 2014). This reflected incentives that included exemption from purchase taxes on cars (including VAT), road tax, and fees in public car parks; electric cars were also allowed to use bus lanes.

“Range anxiety”—the threat of running out of battery charge and the limited availability of charging stations were seen as the primary obstacles to the market penetration of all‐electric PEVs. However, both issues were being resolved. Between 2015 and 2018, the range of EVs was expected to double—most EVs would then have a range of close to 200 miles (though still far from the 265‐mile range of the Tesla S (with an 85 kWh battery pack). Charging stations were widely available in most urban areas, but they were sparse in many rural areas.

While most experts expected the plug‐in electric car to be the primary threat to conventional cars, it was not the only zero‐emission technology available to automakers. Fuel cells offered an alternative to plug‐in electrical power. Fuel cells are powered by hydrogen which reacts with oxygen from the air to create electricity that then drives an electric motor. Fuel cell technology was developed during the space program and became applied to experimental land vehicles during the 1960s. Although a number of automakers had developed prototypes of fuel cell cars, only Toyota, Hyundai, and Honda had marketed cars powered by fuel cells. Since fuel cells consume hydrogen, a key factor limiting the adoption of fuel cells was the absence of a network of hydrogen fueling stations.

 

 

 

Disrupting the Auto Industry

Tesla’s willingness to share its patents only added to the uncertainty over the extent to which Tesla represented a disruptive force within the auto industry.

Tony Seba, a prominent advocate of clean energy, argued that “the electric vehicle will disrupt the gasoline car industry (and with it the oil industry) swiftly and permanently … Even worse from the standpoint of gasoline and diesel cars, the EV [electric vehicle] is not just a disruptive technology; the whole business model that the auto industry has built over the past century will be obliterated.”14

Others downplayed the whole issue on the basis, first, that Tesla’s patents did not represent a significant barrier to other companies and, second, it probably did not make much sense for Tesla to devote time and money to litigating infringements of its patents. Professor Karl Ulrich of Wharton Business School stated: “I don’t believe Tesla is giving up much of substance here. Their patents most likely did not actually protect against others creating similar vehicles.” He suggested that patents are increasingly less about protecting innovations from imitation as strategic bargaining chips: “Big technology‐based companies amass patent portfolios as strategic deterrence against infringement claims by their rivals … Tesla is essentially deciding it doesn’t want to spend money litigating patents, which is a great decision for its shareholders and for society.”15

In the debate over, whether or not the electric automobile represented a disruptive innovation, Clay Christensen and his team at Harvard Business School, were emphatic that Tesla’s electric cars were definitely not such a disruptive force. While classic disruptive innovations typically target overserved customers with lower‐performance products at a lower price (or open up entirely new market segments), Tesla offered incrementally higher performance at higher prices. A further feature of disruptive innovation is that incumbents typically have low incentives to adopt the disruptive innovation—yet all the major auto firms had been working on developing electric cars for years. If Tesla is not a disruptive force, who is in the automobile market? A more likely source, according to Professor Christensen’s associate Tom Bartman, was the neighborhood electric vehicle: a cheap, low‐powered, easy‐to‐park vehicle that is well suited to urban transportation and can readily be upgraded for use on public roads.16

If Tesla Motors was going to meet strong competition from exceptionally well‐resourced competitors—companies such as GM, Renault–Nissan, Ford, Daimler, VW, and BMW—it lacked clear technological advantages over these firms, and if it also was likely to meet competition from the manufacturers of NEVs in mass‐market electric cars, how feasible was Elon Musk’s goal that Tesla would be “a leading global manufacturer and direct seller of electric vehicles and electric vehicle technologies”?

 

 

 

 

 

 

Appendix

 

TABLE A1 Tesla Motors Inc. financial data ($million)

 

  2014 2013 2012 2011 2010
 
Revenues 3,198 2,013 413 204 117
Gross profit 882 456 30 62 31
Research and development 465 232 274 209 93O
perating profit (187) (61) (394) (251) (147)
Net profit (294) (74) (396) (254) (154)
Total assets 5,849 2,417 1,114 713 386
Total long‐term obligations 2,772 1,075 450 298 93
Capital investment 970 264 239 198 105

 

 

Notes

1 Elon Musk, “The Secret Tesla Motors Master Plan (Just between You and Me),” (August 2, 2006), http://www.teslamotors.com/en_GB/blog/secret‐tesla‐motors‐master‐plan‐just‐between‐you‐and‐me, accessed July 20, 2015.

2 “The Mission of Tesla,” (November 18, 2013), http://www.teslamotors.com/en_GB/blog/mission‐tesla, accessed July 20, 2015.

3 Quoted in Tesla Motors, Inc. IPO Prospectus(January 29, 2010): 2–3.

4 Tesla Motors, Inc. 10‐K report for 2014:4.

5 See Tesla Motors, HBS Case No. 9‐714‐913 (2014): 7.

6 “Tesla Has Already Received an Estimated $800 Million Worth of Battery Orders,” www.bgr.com/2015/05/08/tesla‐powerpack‐powerwall‐battery‐sales‐estimate, accessed July 20, 2015.

7 “How to Build a Tesla, According to Tesla,” Washington Post (June 23, 2014), http://www.washingtonpost.com/blogs/the‐switch/wp/2014/06/23/how‐to‐build‐a‐tesla‐according‐to‐tesla, accessed July 20, 2015.

8 “Elon Musk wants inventors to stop pitching his battery ideas,” www.ecomento.com/2015/05/14/elon‐musk‐stop‐pitching‐battery‐ideas, accessed July 20, 2015.

9 “Will Tesla’s Battery for Homes Change the Energy Market?” Scientific American (May 4, 2015).

10 Tesla Motors, Inc. 10‐K report for 2012.

11 “All Our Patent Are Belong To You,” http://www.teslamotors.com/en_GB/blog/all‐our‐patent‐are‐belong‐you, accessed July 20, 2015.

12 “Tesla’s New Patent Strategy Makes Sense,” Entrepreneur (July 8, 2015), www.entrepreneur.com/article/25408, accessed July 20, 2015.

13 “Elon Musk’s Patent Decision Reflects Three Strategic Truths,” https://hbr.org/2014/07/elon‐musks‐patent‐decision‐reflects‐three‐strategic‐truths, accessed July 20, 2015.

14 T. Seba, Clean Disruption of Energy and Transportation: How Silicon Valley Will Make Oil, Nuclear, Natural Gas, Coal, Electric Vehicles and Conventional Cars Obsolete by 2030, Clean Planet Ventures (2014): 102–3.

15 “What’s Driving Tesla’s Open Source Gambit?” Knowledge@Wharton (June 25, 2014), http://knowledge.wharton.upenn.edu/article/whats‐driving‐teslas‐open‐source‐gambit/, accessed July 20, 2015.

16 “Idea Watch: Tesla’s Not as Disruptive as You Might Think,” Harvard Business Review (May 2015).

 
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Course Project

COURSE PROJECT: The Getta Byte—New Billing System Project

 

<Student’s Name>

DeVry University

MGMT404: Project Management

<Professor’s Name>

Month, Year>

 

Note to the Student

[This document is a compilation of project document templates used for the creation of a project management plan for an introductory course in project management. The template includes instructions to the student, boilerplate text, and fields that should be replaced with the values specific to the project.

 

· Blue italicized text enclosed in square brackets ([text]) provides instructions to the document author, or describes the intent, assumptions and context for content included in this document.

 

· Blue italicized text enclosed in angle brackets (<text>) indicates a field that should be replaced with information specific to a particular project.

 

· Text and tables in black are provided as boilerplate examples of wording and formats that may be used or modified as appropriate to a specific project. These are offered only as suggestions to assist in developing project documents; they are not mandatory formats.

 

Before submission of the first draft of this document, delete this “Note to the Student” page and all instructions that are in blue italicized text enclosed in square brackets.

 

Table of Contents Introduction 2 Part 1 3 Section A: Project Charter 3 Section B: Stakeholder Engagement Plan 4 Part 2 6 Section C: Communication Plan 5 Section D: The Project Scope Statement 6 Part 3 8 Section E: The Project Schedule and Gantt Chart 8 Section F: Resource Allocation and Budgeting 9 Part 4 10 Section G: Risk Management 10 Conclusion 11 References 12

 

 

 

 

 

 

 

 

 

 

 

 

 

[Note: APA does not required a table of content. But it is a good practice for planning your paper content. Hence, the table of content is optional. (Remove this note before submitting your paper.)]

Introduction

 

[Your introduction is a one-page summary of all the main aspects of the project, including:

· Project description (i.e., responding to what is the project about & what are the project goals and objectives),

· key stakeholder project participants (i.e., responding to who are the key stakeholders and organizational departments that will be involved),

· Project management approach (i.e., responding to what is the project management methodology used in this project, and how is the project going to be managed and broken down into major deliverables or phases.)

· A brief discussion of the internal and external enterprise environmental factors that may promote or hinder individual project decisions and the management of people, procedures, processes, and projects. (Hint: Read PMBOK® Guide CH. 2.2 Enterprise Environmental Factors for more information.)]

 

PART 1

Section A: The Project Charter

[ 1. Watch the video and read the video transcript located in the Getta Byte – Project Charter section of the Week 1 Canvas lesson

2. Enter the information provided in the video in the sections below.

3. Improve each section by elaborating and expanding on the information provided in the video. Be creative!

4. The text in blue is there to guide you with the assignment and help you brainstorm how to improve the basic information provided in the Week 1 video. Delete all text in blue before submitting your assignment.]

PROJECT CHARTER
Project Name [Project name] Project #:
Project Manager [Project Manager name] Start Date

<MM, DD, YY>

End Date

<MM, DD, YY>

Project Sponsor [Project Sponsor name, Owner name, or Customer name]

 

Project Description:

[What will this project create?]

 

Objectives

[The business objectives for this section are described in the Getta Byte video in week 1. Enter the business objectives in this section and come up with at least one or two more objectives. Be creative! Remember: the business objectives are related to the business needs.

If an objective of the project is the cut cost, then specify the goal required to meet this objective. Remember: goals must be measurable.

See example below.

· High level objective – Goal required to meet the objective.]

· Labor cost savings by 25%

 

Business Need:

[The business need can be found in the business case document and responds to one of these questions: What is the reason to initiate the project? What problem is the project going to solve? What opportunity or benefit will the project accomplish?]

 

Milestones

[What are the key milestone dates associated with the Getta Byte project? A milestone could be the completion of a major project deliverable or phase. Milestone dates provides checkpoints for monitoring the project progress. Besides the three-milestone provided in the week 1 Getta Byte video, list at least three more milestones and estimated completion dates. See example below]

Milestones Estimated Completion Timeframe
Ex: Project Kickoff Meeting <MM, DD, YY>
   
   
   
   
   

 

 

Budget

[What is the estimated budget for this project? Complete the table below.

Do not research your project cost ; this is a “top-down” budget estimate. This is an order of magnitude estimate and does not need to be closed to your project’s actual costs when starting the project. In week 5 we will calculate the total cost of the project using the “bottom-up” approach, which is a more accurately budget estimate method]

 

Estimated Work Cost [It is a time-dependent variable cost related to manpower project resources and the time they are utilized. Equipment when associate with time usage (i.e., hourly rentals) is also classified as work.]  
Estimated Material & Equipment Cost [This cost is a per unit cost. Ex: software license cost, pc cost, etc. It includes the total cost of the material or equipment used in the project.]  
Fixed Cost [Fixed cost is a non-variable of cost and is not time dependent. Ex: Contractor or vendor cost, travel cost, insurance cost, etc.]  
TOTAL ESTIMATED COST  

 

User Acceptance Criteria

[How will this project be judged as a success or failure? What will the key stakeholders use as objective, measurable criteria to judge this success or failure? The acceptance criteria is generally related to the project requirements. It could include all the project requirements, or some of the project requirements. For example, those nice to have requirements may be cut down if needed due to project constrains. In which case, the acceptance criteria will include only the must have requirements.]

 

High-Level Project Assumptions

[What assumptions are we making with regards to the project? What are we assuming will or will not happen in our project? Besides the information provided in the week 1 Getta Byte video, list at least three other project assumptions.]

 

High-Level Project Constraints

[What external limits are being placed on the project that constrain our choices?]

 

Project Exclusions

[What work is part of the project; what work is not? What work is considered outside of this project?]

 

Major Project Risks

[What are the major risks affecting the execution of the project? Identify two or more risks besides the two risks described in the week 1 Getta Byte – Project Charter section]

 

Key Stakeholders

[Who are the key people that the project manager has to work with to complete the Getta Byte project?]

1

Course ProJECT

 

 

13

Getta Bill Software – Billing system Project

 

Section B: Stakeholder Engagement Plan

[To complete section B of the Word document template, follow the steps below. 

1. Watch the video located in The Getta Byte section of the Week 2 Canvas lesson. The video contains important information to complete the Stakeholder Engagement Plan for the Getta Byte project. See timeframe [1:08].

2. Enter the information provided in the video in section B of your word document.

3. The information on the video is incomplete. The student’s job is to improve the stakeholder engagement plan by elaborating and expanding on the information provided in the video.   Be creative!  Make sure to identify at least 3 more stakeholders in addition to the 12 stakeholders listed in the Getta Byte video.

4. For extra help, locate the worksheet “B. Stakeholder Engagement Plan” in the Excel template for this course for instructions on how to complete the stakeholder engagement plan in your Word document. Particularly, pay attention to the prescribed engagement strategies described on the worksheet. 

5. The text in blue is there to guide you with the assignment and help you brainstorm how to improve the basic information provided in the week 2 video. Delete all text in blue before submitting your assignment.]

 

Stakeholder Engagement Plan
Project Name: Project Manager: Date:
Stakeholder Identification Stakeholder Analysis Engagement Strategy
Stakeholder Role Category Influence High/Low Interest High/Low Key Interests

& Needs

 

Strategy Strategic Approach Strategy Owner Frequency

& Method

(Based on needs)

Haywood U. Buzzoff CEO Key High High Project deadline & company savings. Needs weekly updates. Manage Keep them involved in decisions. (Face to face) PM Weekly Meetings
[Add rows as needed]                  
                   
                   
                   
                   
                   
                   
                   

 

 

Graphical user interface, text, application  Description automatically generated 

 

Part 2

Section C: Communication Plan

[In this section, you will create a simple communications management plan for the execution of the Getta Byte project.

To complete section C of the Word document template, follow the steps below.

1. Watch the video located in The Getta Byte section of the Week 2 Canvas lesson. The video contains important information to complete the Communications Management Plan for the Getta Byte project. See time frame [2:08].

2. Enter the information provided in the video in Section C of your word document.

3. The information on the video is incomplete. The student’s job is to improve the Communications Management Plan by elaborating and expanding on the information provided in the video. Be creative! Make sure to identify and enter at least 3 more Communication Vehicles in addition to the 3 listed in the Getta Byte video.

4. For extra help, locate the worksheet “C. Communications Mgmt. Plan” in the Excel template for this course. The worksheet contains instructions on how to complete the stakeholder engagement plan in your Word document.

5. The text in blue is there to guide you with the assignment and help you brainstorm how to improve the basic information provided in the Week 2 video. Delete all text in blue before submitting your assignment.]

COMMUNICATIONS MANAGEMENT PLAN
Project Name:  

 

Project Manager Name:  

 

Project Description:  

 

ID Communication Vehicle Target Audience Description/Purpose Frequency Sender Distribution Vehicle Internal / External? Comments
1 Weekly status meeting Project Team Project status updates Weekly Project Manager Meeting Internal Only Full Team meeting we will invite stakeholders when necessary.
                 
                 
                 
                 
                 

 

 

Note: The table below provides information on how to complete each of the columns of the communication management plan.

Instructions For Completing This Document
Complete the Project Name, NC, Project Manager Name, and Project Description fields
For each identified communication, complete the following.
ID: A unique ID number is used to identify the communication within the communication matrix.
Communication Vehicle: This column should be populated with a description of the type of communication that will be conducted.
Target Audience: This field should be populated with a description of the target audience for this communication vehicle.
Description/Purpose: This field should be populated with a description of the purpose of the communication.
Frequency: This field should be populated with the frequency of which the communication will be distributed.
Owner: This field should be populated with the name of the owner of the communication.
Distribution Vehicle: This field should be populated with the type of distribution vehicle that will be used to disseminate the communication.
Internal/External: This field should indicate if the communication is for internal, external, or both internal and external distribution.
Comments: This column should be populated with any additional comments.

 

Section D: The Project Scope Statement

[To complete the assignment, follow the steps below.

1. Watch the video and complete the “Project Scope Drag and Drop Exercise” located in The Getta Byte – Project Scope section of the Week 3 Canvas lesson

2. Enter the information provided in the video into Section D, corresponding to the Getta Byte – Project Scope Statement of your course project assignment.

3. Improve The Project Scope Statement by elaborating and expanding on the information provided in the video and the drag and drop exercise. Be creative!

4. The text in blue in the template is there to guide you with the assignment and help you brainstorm how to improve the basic information provided in the Week 3 video. Delete all text in blue before submitting your assignment.]

 

PROJECT SCOPE STATEMENT
Project Name [Project name] Project #:
Project Manager [Project Manager name] Start Date

<MM, DD, YY>

End Date

<MM, DD, YY>

Project Sponsor [Project Sponsor name, Owner name, or Customer name]

 

 

Project Description

[This section briefly describes the product or the end result of the project. This information can be found on the project charter, or the SOW which is an input to the Develop Project Charter process. This section responds to the following questions: What will the product of the project look like, or what should it be able to do when completed?]

 

Project Requirements

[This section is typically a detailed amplification of the product description from the project charter. What will the product of the project look like, or what should it be able to do when completed?]

 

Project Deliverables

[List tangibles that must be completed for this project to be successful. For example, floor installation in a house renovation is a deliverable.]

 

Project Exclusions

[List what this project will not include or is out of scope. For example, house renovation will not include upgraded appliances.]

 

Acceptance Criteria

[What must the product be able to do when completed to be acceptable to the customer? What standards or regulations must the product meet? What performance specifications must the product meet to be acceptable to the customer?]

 

Estimated Project Schedule

[List the milestones associated with the Getta Byte project. A milestone could be the completion of a major project deliverable or phase. Partial information of the project schedule is provided in the “Project Scope Drag and Drop Exercise” located in the week 3 lesson in Canvas. The full project schedule can be found by playing the week 4 Getta Byte video and skipping the recording to minute 2:11. The project schedule shows the milestones and tasks. Use the milestones to complete this section.

 

 

Milestones Estimated Completion Timeframe
[Insert milestone information ] [Insert completion timeframe]
[Add additional rows as necessary]  
   
   
   
   

 

 

Resource Requirements

[List the resource requirements (i.e., manpower, material, and fixed cost) as per the Getta Byte video in our week 3 lesson. Manpower includes program developers, data architect, project manager, any team member, etc.]

 

Estimated Cost of Project

 

Expense Type Description Estimated Cost
Work /Labor Cost ·

·

·

$

$

$

Material & Equipment Cost · $
Fixed Cost · [Contractor A for developing training modules]

· [Trainer ]

$10,000.00

$ 5,000.00

TOTAL ESTIMATED COST OF PROJECT $

 

 

Project Constraints

[Besides the two project constraints listed in the week 3 Getta Byte video, list at least 3 other constraints or limiting factors may affect the project?]

 

Project Assumptions

[Be creative. What other assumptions can you make about the project? Ex: Project Team has the required skills to complete the project.]

 

 

Part 3

Section EThe Project Schedule and Gantt Chart

Project Schedule

[Continue working on the word document of your course project and complete Section E (i.e., the Project Schedule and the Gantt Chart. 

To complete the project schedule, follow the steps below. 

1. Watch the video located in The Getta Byte – Billing System Project Schedule section of the week 4 Canvas lesson. The video contains information to complete this section. At time frame [2:17], the video presents the project schedule for the project. It shows how the scope of the project has been broken down into milestones and work packages; it also presents the duration of the project scope and schedule.

2. Enter the task names and task durations provided in the video at time frame [2:17] into Section E of your word document, corresponding to the project schedule. The start date of your course project should be the same as the start date of the session (i.e., Monday of week 1, month, year); hence, do not use the dates presented in the video. To assist you with the dates of the schedule, use the Gantt Chart worksheet in the Excel template.]

WBS Index Task Name Duration Start Finish Predecessors
1 GETTA BYTE- Billing Project 140      
1.1 Finalize Requirements 10      
1.1.1 Gather requirements from users

 

5 days

 

1/3/2022 1/7/2022  
1.1.2 Gather requirements from

customers

 

5 days 1/10/2022 1/14/2022  
1.2 Purchase Software        
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           
           

 

 

Gantt Chart

 

[Read the instruction in the “GANTT CHART” worksheet in the MGMT404-Worksheet-Template.xlsx. With the information provided in the week 4 Getta Byte video at time frame [2:17] create the Gantt Chart and complete section E. Print the Gant Chart and activity list in the Gantt Chart worksheet and paste it below, after removing the example below. You must submit your worksheet with the work document for grading.]

 

 

 

Section F : Resource allocation and budgeting

[To complete this section, follow the instructions in the worksheet “F. RESOURCES & BUDGET” tab in the MGMT404_Worksheet_template.xlsx Excel file. Complete the worksheet, print page 1, and paste your work after removing image below. The Excel template is in the course project overview section.]

 

 

Section G: Risk Management

[Continue working on your Word document and complete the Risk Management section of your course project – Section G. 

To complete this section, follow the steps below. 

1. Locate the “G. RISK REGISTER” worksheet tab in the Excel template provided for this course.

2. Review the video and the transcript located in The Getta Byte – Risk Management section of the Week 6 Canvas lesson.

3. The video has identified three individual project risks at timeframes [1:16] and [1:30], which has been entered as examples in the Excel worksheet. The Excel worksheet has 4 negative and two positive risks examples in total.  

4. The student’s job is to identify 4 negative risks and 2 positive risks in addition to the examples provided in the Excel template. 

5. The risk register worksheet in the template contains instructions on “HOW TO USE THIS DOCUMENT”. Follow the instructions.

6. The blue font text in this template is to guide you with the assignment. Delete all text in blue before submitting your assignment.

Submit your Word document and Excel worksheet after completing Part 4 of your course project.]

 

·

Conclusion

[The conclusion should include:

· A summary of the theoretical and technical knowledge learned and applied to manage the course project successfully, and

 

· A self-evaluation on how successful the project management concepts, techniques, and skills have been applied to the course project. ]

 

References

 

[Enter as a minimum 4 references in APA format. The list below must be part of your reference list.

· The PMBOK® Guide

· The Contemporary Project Management, course textbook

· Recorded lectures.

· Canvas Lectures]

Project Start:

Today:

Display Week:1

34567891011121314151617181920212223242526272829303112345678910111213141516171819202122232425262728123456789101112131415161718192021222324252627282930311234567891011121314151617

WBSTASKSPROGRESSSTARTEND

Task

Duration

Total

Hours

MTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSS

1Billing System Project

Mon, 3-Jan-22Fri, 22, Jul,22140

1120

1.1M1: Finalized Requirements

1.1.1T1: Gather req. from users0%Mon, 3-Jan-22Fri, 7, Jan,22

5

40

1.1.2T2: Gather req. from customers0%Mon, 10-Jan-22Fri, 14, Jan,22

5

40

1.2M2: Purchase Softwware

1.2.1T3: Select vendor0%Mon, 17-Jan-22Mon, 14, Feb,22

20

160

1.2.2T4: Negotiate contract0%Tue, 15-Feb-22Tue, 1, Mar,22

10

80

1.2.3T5: Execute purchase0%Wed, 2-Mar-22Tue, 8, Mar,22

5

40

1.3

1.3.1T6: Define features0%Wed, 9-Mar-22Tue, 22, Mar,22

10

80

T7: Set up test environment0%Wed, 23-Mar-22Tue, 29, Mar,22

5

40

 

Mar 14, 2022Mar 21, 2022Mar 28, 2022Apr 4, 2022Apr 11, 2022Jan 31, 2022Feb 7, 2022Feb 14, 2022Feb 21, 2022Feb 28, 2022Mar 7, 2022

Mon, 3-Jan-22

Mon, 10-Jan-22

Jan 3, 2022Jan 10, 2022Jan 17, 2022Jan 24, 2022

PROJECT TITLE:

Billing System Project

COMPANY NAME

GETTA BYTE

Project Manager:

Imma

Student’s NameJane Doe

Display Week:15

111213141516171819202122232425262728293012345678910111213141516171819202122232425262728293031123456789101112131415161718192021222324252627282930123456789101112131415161718192021222324

WBSTASKSPROGRESSSTARTEND

Task

Duration

Total

Hours

MTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSSMTWTFSS

1Billing System Project

Mon, 3-Jan-22Fri, 22, Jul,22140

1120

1.1M1: Finalized Requirements

1.1.1T1: Gather req. from users0%Mon, 3-Jan-22Fri, 7, Jan,22

5

40

1.1.2T2: Gather req. from customers0%Mon, 10-Jan-22Fri, 14, Jan,22

5

40

1.2M2: Purchase Softwware

1.2.1T3: Select vendor0%Mon, 17-Jan-22Mon, 14, Feb,22

20

160

1.2.2T4: Negotiate contract0%Tue, 15-Feb-22Tue, 1, Mar,22

10

80

1.2.3T5: Execute purchase0%Wed, 2-Mar-22Tue, 8, Mar,22

5

40

1.3

1.3.1T6: Define features0%Wed, 9-Mar-22Tue, 22, Mar,22

10

80

T7: Set up test environment0%Wed, 23-Mar-22Tue, 29, Mar,22

5

40

1.3.3T8: Develop customization0%Wed, 30-Mar-22Tue, 26, Apr,22

20

160

T9: Test customization 0%Wed, 27-Apr-22Tue, 10, May,22

10

80

T10: Validate data0%Wed, 11-May-22Tue, 17, May,22

5

40

T11: Map fields0%Wed, 18-May-22Tue, 24, May,22

5

40

T12: Transfer data0%Wed, 25-May-22Wed, 1, Jun,22

5

40

T13: Develop Training with vendor0%Thu, 2-Jun-22Wed, 15, Jun,22

10

80

T14: Schedule training for CSRs0%Thu, 16-Jun-22Thu, 30, Jun,22

10

80

T15: Conduct training0%Fri, 1-Jul-22Fri, 15, Jul,22

10

80

1.6.1T16: Release System to production0%Mon, 18-Jul-22Fri, 22, Jul,22

5

40

1401120

 

Total (days & hrs)

Jun 20, 2022Jun 27, 2022Jul 4, 2022Jul 11, 2022Jul 18, 2022May 9, 2022May 16, 2022May 23, 2022May 30, 2022Jun 6, 2022Jun 13, 2022Apr 11, 2022Apr 18, 2022Apr 25, 2022May 2, 2022

 
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Fallacious Arguments

4 Mistakes in Reasoning: The World of Fallacies boy at chalkboard, puzzled at two math equations, 2+2=4 and 3+3=7 Have you ever heard of Plato, Aristotle, Socrates? Morons! —Vizzini, The Princess Bride So far we have looked at how to construct arguments and how to evaluate them. We’ve seen that arguments are constructed from sentences, with some sentences providing reasons, or premises, for another sentence, the conclusion. The purpose of arguments is to provide support for a conclusion. In a valid deductive argument, we must accept the conclusion as true if we accept the premises as true. A sound deductive argument is valid, and the premises are taken to be true. Inductive arguments, in contrast, are evaluated on a continuous scale from very strong to very weak: the stronger the inductive argument, the more likely the conclusion, given the premises. What We Will Be Exploring We will look at mistakes in reasoning, known as fallacies. We will examine how these kinds of mistakes occur. We will see that errors in reasoning can take place because of the structure of the argument. We will discover that different errors in reasoning arise due to using language illegitimately, requiring close attention be paid to that language. Generally, we want our arguments to be “good” arguments—sound deductive arguments and strong inductive arguments. Unfortunately, arguments often look good when they are not. Such arguments are said to commit a fallacy, a mistake in reasoning. Wide ranges of fallacies have been identified, but we will look at only some of the most common ones. When trying to construct a good argument, it is important to be able to identify what bad arguments look like. Then we can avoid making these mistakes ourselves and prevent others from trying to convince us of something on the basis of bad reasoning! 4.1 What Is a Fallacy? image The French village of Roussillon at sunrise. Roussillon is in Vaucluse, Provence. It would be a fallacy to assume that because someone lives in France, he or she lives in Paris. Most simply, a fallacy is an error in reasoning. It is different from simply being mistaken, however. For instance, if someone were to say that “2 + 3 = 6,” that would be a mistake, but it would not be a fallacy. Fallacies involve inferences, the move from one sentence (or a set of sentences) to another. Here’s an example: If I live in Paris, then I live in France. I live in France. Therefore, I live in Paris. Here, we have two premises and a conclusion. The first sentence is a conditional, and we can accept it as true. Let’s assume the second sentence is also true. But even if those two premises were true, the conclusion would not be true. While it may be true that if I live in Paris then I live in France, and it may be true that I live in France, it does not follow that I live in Paris, because I could live in any number of other places in France. Thus, the inference from the premises to the conclusion is fallacious because of a mistake in the reasoning. Technically, this argument is said to commit the formal fallacy of “affirming the consequent” of the conditional. In a conditional sentence, “If P then Q,” P is the antecedent—it provides the condition—and Q is the consequent, or what follows from that conditional. So in this sentence, “If I need to get cash, then I can go to an ATM,” “I need to get cash” is the antecedent, and “I can go to an ATM” is the consequent. We can see the difference in the arguments here by looking at a very similar one that does not commit this fallacy (because it affirms the antecedent) and is in fact valid: If I live in Paris, then I live in France. I live in Paris. Therefore, I live in France. In learning to spot fallacies, we must be very careful to see whether the conclusion actually follows from the premises; if it does not, we need to determine why. Sometimes, as in our first argument here, the mistake is structural, or formal. At other times, the mistake is more subtle, and we have to examine the content of the argument—its meaning—to determine why it commits the fallacy; these kinds of mistakes in reasoning are often called “informal fallacies.” Here again is the famous informal fallacy we looked at in Chapter 2: Nothing is better than eternal happiness. A ham sandwich is better than nothing. Therefore, A ham sandwich is better than eternal happiness. The fallacy involved here is not structural; an argument with this structure actually can provide a valid inference, as in this example: Mary is taller than Susan. Susan is taller than Amanda. Therefore, Mary is taller than Amanda. This is an example of what is known as the transitive property, as in arithmetic: if 10 is less than 20, and 20 is less than 30, then we know—just from these two sentences—that 10 is less than 30. four children in height order The transitive property allows us to infer that if Billy is taller than Sally, and Sally is taller than Jeff, then Billy must be taller than Jeff. In contrast, the mistaken inference in the argument about the ham sandwich involves the meaning of the words, specifically the word “nothing.” In the first premise, to say there is nothing better than eternal happiness is to say there exists no thing better. But in the second premise, “nothing” seems to change meaning in order to say it is better to have a sandwich than to have nothing (as in the phrase “well, it’s better than nothing”). The word “nothing” subtly changes meaning from one sentence to the next, but the argument treats them as if “nothing” means the same thing. This then appears to allow us to draw the conclusion, but the mistake should be clear, and so we see why we cannot, on the basis of these premises, accept the conclusion that a ham sandwich is better than eternal happiness. Thus, the inference is made illegitimately, and that illegitimate inference is what results in a fallacy. While the ham sandwich argument is a bit silly, it is a good example of how, even if we are sure that there is a mistake in the reasoning, it can be a bit tricky to say what, precisely, that mistake is. There are many formal fallacies, mistakes in reasoning that occur due to the structure of the argument (the fallacy of affirming the consequent is, therefore, a formal fallacy). There are also hundreds of informal fallacies. In this chapter, we look at some of the best-known informal fallacies, and a couple of the most common formal fallacies. It is obvious why we want to avoid fallacies as a general rule; after all, fallacies are mistakes, and we want to avoid making mistakes. But here we also consider why we want to avoid the specific kinds of errors committed by fallacious reasoning. Why Should We Avoid Fallacies? We have already seen that philosophers use the term argument differently from how we use it in everyday conversation: to a philosopher, an argument simply provides reasons for accepting a conclusion. As we have also seen, our everyday reasoning usually includes a mixture of both deductive and inductive arguments. Obviously enough, when we try to establish a conclusion on the basis of evidence and reasoning, we want our arguments to be good arguments: valid (and sound) deductive arguments and strong inductive arguments. Fallacies are, in this context, somewhat like a virus, or a disease. That is, fallacies infect our reasoning and can give an argument the appearance that its conclusion should be accepted when it really shouldn’t be. We may never be able to “cure” our reasoning of the fallacies that threaten to infect it, but the more we are aware of the problem, the better our chance of being able to avoid it. Healthy reasoning, then, always requires that we be on the lookout for fallacies; in this case, as the old saying goes, an ounce of prevention is worth a pound of cure. brick wall with cracks in it Fallacies can be like cracks in a building, undermining the strength of our arguments. One clear result of studying and understanding fallacies is that we become aware of the problems they can cause in our own reasoning. Presumably, when we give an argument of our own, we want it to be the best argument we can construct; we assume, that is, that we aren’t willing to abandon sound principles of reasoning to win the argument. (There are contexts, of course, where this might not be the case, and we will look at some of these later.) We want to win our arguments, of course, but we also want to construct them correctly. Being aware of the various fallacies will improve our arguments and make them more difficult to defeat. After all, if our opponent in an argument can expose our reasoning as fallacious, our opponent will win, or at least show that our argument fails. We also, of course, don’t want to be fooled by our opponent into accepting reasoning that is not legitimate. Perhaps you are in a debate with someone who argues that raising taxes is bad for the economy. Your opponent points out that the last time taxes were raised, the economy did badly; therefore, raising taxes caused the bad economy. You may want to resist this conclusion, and being aware of fallacies allows you to point out that this argument commits the fallacy of the “false cause”: just because some event follows another event, it does not necessarily mean that the first event caused the second event. To make this fallacy clear to your opponent, you may provide a counterexample that uses the same kind of logic. “I took my dog for a walk, and then it rained. But walking my dog didn’t cause it to rain, did it?” Revealing the flawed reasoning in this case doesn’t mean that we have established that raising taxes is good for the economy, or that it is bad for the economy. But by demonstrating that the argument commits this fallacy, you can reject this argument as given, and you and your opponent can move on, in order to look for better arguments. We’ve included Concept Checks so you can test yourself on the concepts covered. The results are for your own instruction and will not affect your grade. You can take each quiz as many times as you like by clicking the “refresh” button on your browser. 4.2 Mistakes in Reasoning: Informal Fallacies Now that we have seen why we should be aware of fallacies, and why we should try to avoid them, we will identify and examine the most common informal fallacies. These fallacies are frequently encountered at work as well as among friends and family and in the media. For each of these fallacies, we will begin with an example and then specify the mistake involved in each. One of the best ways to become familiar with fallacies, once you understand them, is to construct one of your own that commits the same kind of error. Ad Hominem Fallacy Frank works for a big oil company. So of course, Frank doesn’t believe in global climate change. If we put this in premise-conclusion form, the argument would look like this: Frank works for a big oil company. Frank doesn’t believe in global climate change. couple arguing An ad hominem fallacy occurs when the reason for an argument is solely based on a person’s character or nature. The ad hominem fallacy comes from the Latin term for “to the person”: that is, the conclusion is to be accepted or rejected because of the person (and the characteristics of that person) involved, rather than the actual argument, or reason(s), supporting the conclusion. In our example, then, the reason put forth for Frank’s belief has little to do with the evidence Frank may have for that belief. Rather, the fact that he works for a big oil company provides the basis for why we attribute to Frank the belief we do. Of course, this is fallacious; Frank may have very good reasons, very bad reasons, or no reasons at all for his belief. But the fact that he works for a company that may be adversely affected by the politics of climate change doesn’t allow us to conclude that this is the reason for Frank’s view on the matter. Because this refers to Frank’s circumstances, this fallacy is often made more precise by labeling it an ad hominem argument (circumstantial). As always with fallacies, the conclusion does not follow from the premise(s). We can see this mistake by a rather ridiculous example. Presuming the communist dictator of the former Soviet Union, Josef Stalin, was a very bad person, what if someone made this argument? Josef Stalin believes that the sun rises in the east. Stalin was one of the worst monsters of the twentieth century. Therefore, we shouldn’t believe that the sun rises in the east. Clearly, the sun rises in the east regardless of what we think about Stalin; his character certainly doesn’t allow us to reject the claim. Here again, we see the reason put forth for the conclusion to be simply about the person involved. But, as should be obvious, even the most tyrannical dictator may hold beliefs that are true. In contrast to the ad hominem (circumstantial), this is a mistake based on the character of the person. Stalin’s character may well be worth attacking; but his personal failures, in this case, don’t have anything to do with whether his belief about the sun is true or not. Hence, we have two distinct kinds of ad hominem arguments: one based on the circumstances of the person, such as Frank’s job, and one based on the character of the person, such as Stalin’s. To spot an ad hominem fallacy, we determine whether the reason given for the conclusion rests solely on the characteristics or nature of the person who holds the view in question. And if those characteristics are not relevant to the conclusion, there is a good chance an ad hominem fallacy is being committed. Sometimes, however, those characteristics can be quite relevant, as in the following example: Mary is a devout Christian, so of course she believes in God. One of the defining characteristics of being a Christian is to believe in God; so if Mary is a devout Christian, it does follow that she believes in God. In this case, unlike the cases of Frank and Stalin, Mary’s personal characteristics are quite relevant to the conclusion and provide ample support for it. One can also consider one other version of this fallacy, often referred to by its Latin name tu quoque, meaning, “you’re another.” We are probably familiar with this fallacy from grade school; if you object to someone’s behavior, he or she might respond that your behavior is no better. This reply, of course, does not respond to your objection; rather, the claim seems to be that you can’t object because you have your own share of problems. If Robyn objects to Tom cheating on a test, and Tom replies that Robyn cheated on a test once, so she cannot legitimately object, he commits this fallacy. An actual, historical, example of the tu quoque fallacy was committed by the government of South Africa when it defended its apartheid policy of racial separation and discrimination. In some of its literature sent to the United States, this argument was made by the South African government: The U.S. treated its native citizens very badly,including putting them on reservations. Therefore, The U.S. cannot criticize our treatment of our own native citizens. The premise may well be accepted as true here, but it doesn’t follow that one cannot still criticize the South African policy. In this case, we may recall the phrase from our childhood, “two wrongs don’t make a right.” Hence the ad hominem fallacy is committed when the conclusion is rejected on the basis of characteristics of the person who puts forth the conclusion, and the characteristics of that person are not relevant to the conclusion. Once you are aware of the mistake in reasoning involved here, you may be surprised at how often you encounter the ad hominem fallacy. Stop and Think: Lose It, Don’t Abuse It! Celebrities such as Oprah Winfrey, Dr. Phil, and Suzanne Somers have all written books on nutrition and weight loss. Some critics have dismissed their advice outright, citing Oprah’s weight fluctuations (“Why would anyone take diet advice from a dieter who repeatedly fails?”), Dr. Phil’s larger physique (“Why would anyone take weight loss advice from Dr. Phil, who seems unable to lose that last 20–30 pounds?”), and the possibility that Somers may not practice what she preaches (“This queen of all things natural fills her face with Botox and the like”). Each of these comments qualifies as ad hominem attacks. For example, whether or not Dr. Phil is a few pounds overweight has no bearing upon the relative merits of his weight loss program. It may seem quite natural to dismiss a person’s claims outright on the basis of ad hominem considerations. An overweight person telling us how to lose weight strikes us as hypocritical, and no one likes a hypocrite. Nonetheless, we must remember that even the biggest hypocrites can, at least on occasion, speak the truth. As we can see, ad hominem appeals on their own do not demonstrate any weaknesses in these weight loss programs. If so, how should one go about assessing the merits of diet advice? What sorts of considerations are, in fact, relevant to such an analysis? Begging the Question Abortion is murder, and murder is illegal, so abortion should be illegal. To beg the question is to commit a mistake in reasoning by assuming what one seeks to prove. Often this kind of reasoning is criticized as “circular reasoning,” in that the premise that supports the conclusion is in turn supported by the conclusion, and thus goes in a circle. boy scratching his head To “beg the question” is to make a leap of logic by assuming what needs to be established. In the preceding argument, we may be quite willing to accept that murder is illegal. But the controversy over abortion really involves the first premise, whether or not abortion qualifies as murder. To assume that abortion is murder, then, begs the question, for that is the very issue that is at stake in the argument. It is important to see that rejecting this argument because it is fallacious doesn’t establish anything about the topic of abortion. Rather, it indicates that this argument, as structured, relies on an illegitimate inference, or commits a fallacy. Thus, it isn’t better as an argument than the following: Capital punishment is murder, and murder is illegal, so capital punishment should be illegal. In this case, one cannot legitimately assume that capital punishment is murder; one would have to provide an argument for that premise. Again, this argument doesn’t establish anything about capital punishment, because the argument is fallacious. In both the argument about abortion and the argument about capital punishment, we see that because the question is begged, these arguments fail. This doesn’t mean that one cannot construct good arguments about either topic, however. Perhaps we can see this more clearly with a ridiculous argument that has exactly the same structure: Sunbathing is murder, and murder is illegal, so sunbathing should be illegal. While many people argue over the ethical and moral questions that surround abortion and capital punishment, probably no one would argue that sunbathing is murder. But all three of these arguments are identical in structure, and now we can see a bit better why that structure is fallacious: we simply cannot legitimately assume what we seek to establish. In logic, to beg the question is to assume what one wishes to prove, although one often hears people in the media use the phrase to indicate that one answer leads to another. A politician, for instance, may be told that her response in an interview “begs the question,” or that her response raises further issues. This is not the precise, technical meaning of the phrase as used in logic, and here, as elsewhere, we will discover that logicians often use language in a way that is much more specific and explicit than it is in other contexts. It should also be noted that arguments that beg the question, or argue circularly, are technically valid. In all three of our examples, if the premises are accepted as true, we must accept the conclusion as true. But as we saw most obviously in the sunbathing example, the premise may well not be true. This is yet one more reason to remember that just because an argument is valid does not necessarily mean we should accept its conclusion! Slippery Slope Arguments We must not allow libraries to ban any books; if they ban some books, they may well ban all of them. The slippery slope fallacy is committed when one takes an example and extends it indefinitely to show that a given undesirable result will inevitably follow. Often the idea is that if an exception is allowed to a rule, then more and more exceptions will follow, leading to the inevitable result that few people, if any, will follow the rule. But this conclusion isn’t always warranted. A library may well wish to prohibit certain kinds of material, such as pornography, but that doesn’t mean that libraries will end up banning all kinds of materials. Here’s another example: The police won’t ticket you if you drive one mile an hour over the speed limit. The police won’t ticket you if you drive two miles an hour over the speed limit. The police won’t ticket you if you drive three miles an hour over the speed limit. Therefore, The police won’t ticket you if you drive n miles an hour over the speed limit. Eventually, it seems that the police, by making these exceptions, may not be able to ticket anyone no matter how much over the speed limit he or she drives. But that conclusion doesn’t follow from these premises; just because there is some degree of tolerance, or minor exceptions to the rule, that does not mean the rule itself is abandoned. And anyone who has gotten a speeding ticket has learned this the hard way! view of playground slide from the top of the ladder The view from the top of a slide. A slippery slope fallacy takes one example and extends it indefinitely to an unrelated conclusion. While these kinds of arguments commit the slippery slope fallacy, there are other ways of making this kind of mistake. Perhaps Rosemary thinks it is fine to have a glass of wine or two at dinner, but Franklin does not. Franklin tells her that if she has a glass of wine at dinner, pretty soon she will end up drinking a whole bottle of wine at dinner. There is some point between drinking no wine and drinking too much wine, but the idea that one glass of wine automatically leads to drinking too much wine seems to commit a rather obvious slippery slope fallacy. Determining whether an argument actually commits the slippery slope fallacy can be difficult. A teacher may make an exception to the rule “no late work is accepted” and allow a student to turn in a paper late. This may have a “snowball effect,” because the other students can point to this exception and ask why they aren’t also allowed to turn their work in late. Parents who enforce a strict bedtime may also worry that if they make exceptions, the idea of “bedtime” will become so flexible that it will become very difficult to get the kids to bed at a reasonable time. For these kinds of reasons, some philosophers have argued that certain rules cannot have any exceptions. For instance, consider the rule that you should never lie, that without exception, you should always tell the truth. The concern is that if an exception is made in one case, there may be exceptions in other cases, and eventually no one will be expected to tell the truth. One can see a similar idea with counterfeit money. A society cannot make exceptions, suggesting that sometimes counterfeit money is acceptable, for if even one exception is made, it is clear that we won’t possess the needed confidence that the money in circulation is genuine. Thus, to avoid this situation, no exceptions can be made. In this case, we have to be very strict; if some lies are permitted, we may well end up not being able to say where they are not permitted. In this case, it could be argued that there is a “cascading” effect where some lying leads to too much lying, and on this view would not be a slippery slope fallacy. Similarly, to try to prevent counterfeit money from circulating seems legitimate; there isn’t a slippery slope involved in thinking that if some counterfeit money is allowed to circulate, we may have significant problems in determining what is and what is not genuine money. Logic in the Real World: Forced Euthanasia The following passage from a personal website is a classic example of the “slippery slope” argument: When euthanasia becomes law it will start out on a strictly voluntary basis for the terminally ill. Then it will become available to anyone who wants it, and finally it will be involuntary, practiced on anyone who is a strain on the system: the elderly, the handicapped, the unemployable—potentially anyone who doesn’t benefit the system. Now, if we knew for certain that legalizing euthanasia would result in cases where people were put to death against their own will, we would have a strong reason not to enact such a law. However, the inevitability of this causal connection is far from established. Forms of euthanasia are legal in select states here in the United States, and involuntary cases have yet to be a problem. When dealing with arguments asserting a number of causal links between events, it is important to keep this key point in mind: it must be demonstrated that the original practice in question will likely lead to the highly undesirable outcome. If this is accomplished, no fallacy is involved. If it is not, then the argument should not persuade us. Do any of the arguments you have heard in debates about the legalization of marijuana, animal rights, immigration, or stem cell research resemble slippery slope reasoning? Do you feel that the example you came up with contains legitimate reasoning, or is a fallacious “slippery slope” involved? Explain your response. In general, then, one has to examine the premises of the specific argument to determine if, in fact, they support the conclusion. The premises must be shown to lead to the conclusion, and the connection between the premises and conclusion must be demonstrated. If one simply indicates that because one or more exceptions to a rule will lead to a rule being entirely ignored—as we saw in the example of the speeding ticket—then we may well have a slippery slope fallacy on our hands. Hasty Generalization I went to that new restaurant the other day, and I didn’t like what I had. I don’t think that restaurant is any good. We are probably familiar both with having generalized a bit too quickly ourselves and having heard others do so. The fallacy of hasty generalization is committed when the conclusion is based on insufficient information: a generalization is made too quickly. Thus, here, on the basis of having eaten at a restaurant one time, a very broad conclusion is drawn. Of course, the restaurant may not be any good, but one meal on one occasion isn’t enough to support that conclusion. The chef could have had a bad night; the restaurant, being new, might still be getting things figured out; it could have just been bad luck. But the conclusion that the restaurant isn’t any good does not follow from the premise, because the premise doesn’t provide sufficient support for that conclusion. In science, researchers expend considerable effort making sure data samples are large enough, and representative enough, to provide support for the conclusion. For instance, if a medical study seeks to establish a connection between cholesterol and heart disease using a data sample of a few patients, it might just be a coincidence if all the patients have high cholesterol and suffer from heart disease. But if the study involves numerous patients, from a wide variety of backgrounds, ages, and so forth, and all of the patients have both high cholesterol and heart disease, that would offer much stronger support for the view that they are causally related. Generally, then, the fallacy of hasty generalization is committed when one has inadequate support for the conclusion, but one still jumps to a conclusion. Consider the following argument, for instance: paintbrush with blue paint on it The hasty generalization fallacy can be summed up in the phrase “to paint with a broad brush,” which means to characterize without bothering with details or specifics. I’ve met a couple of people from China who studied English but were difficult to understand. I don’t think Chinese people can learn English well. Given that there are over a billion people in China, and assuming only one percent of them study English, that would be over ten million Chinese people studying English! To generalize on the basis of two people would be very hasty, indeed. Therefore, the evidence would not adequately support this conclusion, and would not follow from the premise as stated. Often the fallacy of hasty generalization can lead to damaging stereotypes made on the basis of just a few examples. Stereotypes about women, religious groups, minorities, ethnic groups, and so forth are often based on this type of reasoning. Drawing broad and very general conclusions based on insufficient evidence can therefore lead to harmful results, not only for the victim of the stereotype but also for the person doing the stereotyping. For instance, consider this argument: I had a guy from Peru working for me once, and he always came to work late. I won’t be hiring any more people from Peru. The generalization here, drawn on the basis of a single example, is that all Peruvians come to work late. Not only does this attitude discriminate against an entire group of people, but it also prevents the employer from discovering that Peruvians may be the best workers he ever hired. By making a mistake in reasoning and committing the fallacy of hasty generalization, the employer harms both those being stereotyped and himself. Argument from False Authority Albert Einstein was a brilliant man and believed in ghosts. So it seems that ghosts actually exist. The fallacy committed by appealing to a false authority draws a conclusion based on an authority whose expertise is irrelevant to the conclusion. Just because Einstein was a world-famous physicist doesn’t make him a legitimate authority on ghosts. (It isn’t really clear whether he did or did not believe in ghosts, by the way.) So the conclusion does not follow here, because Einstein doesn’t have the right kind of expertise to provide support for it. woman posing, looking off into distance English socialite Tara Palmer-Tomkinson appears in a commercial for potato chips. Celebrities endorse products all the time, and we don’t often stop to think that they might not be an authority on such a product. Naturally, if we sought Einstein’s views on a question in physics, we would be on much safer ground. There is no question that in physics, his authority is legitimate, and we could rely on his expertise. Hence, the name of this fallacy is important: the argument from false authority. In looking at arguments, it is important to determine whether the person whose view is being used to support the conclusion is truly an authority, and if so, whether that authority is relevant to the conclusion. Another way this mistake is often made is to suggest that a source of information has a conflict of interest: a person may benefit from some outcome, and we may think that such a benefit can call that person’s claim into question. Imagine a university president arguing that the basketball team should purchase a particular brand of shoes. She claims it is because they are the best shoes one can get at a good price, but she also has substantial holdings in the company that makes the shoes. Are we sure the university president is not biased in promoting the purchase of this brand of shoes? After all, she stands to make more money if the company’s stock does well. At the same time, the fact that she owns this stock doesn’t mean that the shoes are not the best shoe available for the price. Such conflicts of interest can be very challenging, for it is not that unusual that one’s arguments are driven by one’s self-interest. But simply because that self-interest may be involved does not mean that the argument definitely is driven by that self-interest. Each case must be looked at carefully. But for this reason, politicians often sell stocks and get rid of other investments in case there may be even an appearance of such a conflict of interest. Judges who are asked to decide on cases in which they may have a financial interest frequently recuse themselves: they do not hear such cases just in case it appears that they have such a conflict of interest. Perhaps the most common version of this argument can be seen in television commercials. For instance: A world famous golfer says he likes to drive a certain model of car. So that model of car must be pretty great! Of course, if we stop to think about it, it isn’t clear why we should think that being excellent at golf establishes one’s credentials in evaluating automobiles. Similarly, basketball players may not know any better than we do if a given fast-food restaurant is particularly good, and there is no reason to think that a famous football player is an expert on jeans. Yet it is hard to turn on a television without seeing a celebrity endorse a product, lending their reputation for expertise in their own field to a product they are paid to advertise. In such cases, the conclusion—that a product is good—does not follow from the premise; namely, that a celebrity whose fame comes from a completely different area of life says it is good. On occasion, a celebrity may actually be an authority in another field. For example, a movie star who is an expert chef may recommend a certain brand of kitchen knife. If she says the knife is good, we could accept her recommendation if (and only if) we were also able to determine that she was an authority in the relevant field. But the fallacy of appealing to an illegitimate authority is committed when the support provided by the authority is not relevant. When examining an argument that appeals to an authority, we must see what the credentials are of the authority and whether those credentials are relevant to the conclusion being put forth. This may not always be clear-cut; if a physician runs for political office, does her expertise in medicine indicate expertise in making quality political decisions? Do the kinds of questions physicians deal with give them advantages in making political decisions? Or are political and medical decisions so distinct that expertise in medicine is irrelevant to expertise in politics? In such cases, we need to learn more about the candidate in question and whether the candidate possesses the appropriate background, credentials, and expertise. But we may see why identifying someone as a good doctor may well not be sufficient to make that person a good political leader. Appeals to Pity and Popularity Your honor, I’m innocent. I haven’t been able to find work for several months, and I’ve been very sick. So I shouldn’t be found guilty. That book must be very good; it has been on the best-seller list for weeks. Two related fallacies, the appeal to pity and the appeal to popularity, make very similar mistakes in reasoning. In the appeal to pity, the reason put forth doesn’t give a good reason to accept the conclusion, but considers what, logically, is irrelevant information. The appeal to pity indicates that one should accept a conclusion because of the unfortunate situation of the person putting forth that conclusion. In the same way, in the appeal to popularity, the reason put forth doesn’t give a good reason to accept the conclusion, but considers what is irrelevant information. The appeal to popularity indicates that a conclusion should be accepted simply because many people think it is true. In both cases, of course, the conclusion does not follow from the premises. Someone accused of a crime isn’t innocent of the crime just because he or she is in bad circumstances; rather, guilt or innocence is based on whether the person actually committed the crime. Similarly, a book isn’t good just because it is popular; presumably we want to evaluate a book’s quality by characteristics other than just its popularity. As we know, sometimes books that are not very good sell many copies, just as some very good books do not sell many copies. Teachers frequently encounter the appeal to pity, but they also encounter arguments that seem to commit this fallacy but actually do not. Compare the following two arguments: boy holding late pass, looking sad Appeals to pity (and popularity) can lead to true or false conclusions. The key is determining whether the conclusion follows from the premises. I need to get an A in this course, because if I don’t, I will lose my scholarship. I couldn’t get my paper turned in on time, because there was a tornado and all the power went out. The first argument appeals to pity by suggesting that the reason the student should get an A is that if he doesn’t, he will lose his scholarship. That conclusion, of course, does not follow; he should get an A if his work deserves it. Presumably, it is not just this course that is leading to this result, anyway. The second argument appears to offer a similar kind of reasoning, but, in fact, such a power outage might well be a legitimate reason for a late paper. Similarly, an appeal to popularity may not always lead to a false conclusion; again, we have to determine whether the conclusion follows from what is being stated. The pizza in that place must be great; it always has a long line of customers. Of course, the reason the pizza is good isn’t because the pizza place has a long line of customers; the reason the pizza is good is because, well, it’s good! But one might see that there is another premise here, one that is not explicitly stated: customers line up only for a product that is really good. In that case, if there is a long line of customers, and customers are willing to stand in line only for something that is good, then a long line of customers for this pizza suggests that it is good. In both of these fallacies, then, one must look at the premises and see if they support the conclusion; as always, the question is, does the conclusion follow from those premises? There may be “hidden” premises, as we saw in the pizza case, or there may not be. But after looking at the information provided, if the reason to accept a given conclusion is solely because of the sad circumstances of the person putting forth the conclusion, that argument may well commit the fallacy of the appeal to pity. And, in the same way, if the reason to accept a given conclusion is solely because a lot of people accept it, the argument may well commit the fallacy of the appeal to popularity. Logic in the Real World: The “Dying Card” As we have learned, not all arguments that may touch us on an emotional level are necessarily fallacious. Television satirist Stephen Colbert provides a good example in an interview with a doctor promoting the value of having children immunized. According to the doctor, “[if we don’t immunize children] every year we would have thousands of children dying from measles or whooping cough, or we’d have congenital birth defects from rubella or [children] being paralyzed by polio.” To this, Colbert replied, “See, now this isn’t fair because you’re playing the children dying card. How am I supposed to fight that? Let’s keep this intellectual.” What Colbert is doing here is falsely accusing the doctor of using an appeal to pity in his statement. The doctor’s reference to potential child mortality is relevant to the question of immunization, and his mention of this possibility does not take his argument out of the realm of intellectual analysis, as claimed by Colbert. Arguments that may move heartstrings may or may not be fallacious; it is up to us to figure out whether or not we are encountering legitimate reasoning. This can sometimes prove difficult. Can you think of any ways to help us determine if an argument that invokes an emotional response is in fact fallacious? Are such arguments more difficult to assess accurately? Why or why not? Loaded Question I asked Susan the other day if she had stopped smoking marijuana. She said no, so she must still be smoking marijuana. The fallacy of the loaded question is committed when separate questions are combined unfairly. The resulting question cannot be answered without accepting an unfair assumption. If I were to ask Susan this question and she said “yes,” then that would lead to the conclusion that she did smoke marijuana but has now stopped. If I were to ask Susan this question and she said “no,” then that would lead to the conclusion that she did smoke marijuana and continues to do so. But these aren’t really fair alternatives for Susan because of the way the question is worded. In this example, what is “disguised” is that there are really two questions: 1. Have you smoked marijuana? 2. If so, have you stopped? Clearly enough, if the answer to the first question here is “no,” then the second question doesn’t apply. By combining the two questions into one question, it illegitimately assumes that the person has been doing the activity in question. In this way, the fallacy of the loaded question can be associated with a fallacy we saw earlier, that of begging the question, because both involve a false premise: in the current example, it is illegitimate to assume that the person ever smoked marijuana. In response to this question, Susan should have pointed out that it is unfairly worded, and that it assumes something that cannot be legitimately assumed. A question itself, of course, is not an argument, but if the question leads to a conclusion, it can provide the materials for an argument, as we can see in this example: Chris: I don’t support affirmative action. Bob: Chris, why don’t you support equal opportunities for women and minorities? Bob’s implied argument, when broken down, looks like this: Chris is against affirmative action. Therefore, Chris is against equal opportunities for women and minorities. When looked at this way, it is clear that Bob is assuming that affirmative action is necessary for women and minorities to receive equal opportunities. Affirmative action may be necessary for those opportunities, and it may not be; the point is that Bob cannot simply assume that it is necessary. Rather, he has to argue for the point, and by wording the question in the way he does, he makes an illegitimate assumption. For this reason, such questions are also frequently called “complex questions” because the question is, in fact, more complex than it may appear. As always, we see that when a fallacy is committed, the conclusion of the argument (whether that argument is explicit or merely implied) does not follow from the premises, or the reasons given, for that conclusion. Straw Man Fallacy Senator Jones wants to cut defense spending. I guess he doesn’t care if we can’t protect ourselves. The straw man fallacy takes an opponent’s claim, characterizes that claim unfairly, and then criticizes the opponent on the basis of that unfair characterization. In addition to not really addressing the opponent’s claim, the straw man fallacy also draws a conclusion by criticizing a different position than that advocated by the opponent. For that reason, the conclusion does not follow from the premise. In our example, there may be a significant difference between cutting defense spending by some percentage and having an inadequate defense. Presumably, one can argue that a country can, or cannot, still defend itself while spending less. Of course, whether or not that is the case is not the issue here; what is at issue is what Senator Jones’s claim actually is. Here, the claim seems to be mischaracterized, then criticized on that basis. This sets up a “straw man”—an unfair description of an opponent’s viewpoint—and then that straw man is “knocked down”—by criticizing not the view actually put forth, but the view as unfairly represented. man on horse with lance, riding around dummy A jousting reenactment in Germany. Characterizing an opponent’s claim unfairly essentially sets up a “dummy” argument that is easy to knock down and doesn’t fight back. Amy thinks the way factory farms raise chickens is cruel. Amy must think we can live on just nuts and berries. Amy’s position here is that certain methods of raising chickens involve some degree of cruelty. But her position here is mischaracterized to imply that she thinks all methods of food production involving animals involve cruelty; this seems to imply, further, that since cruelty is wrong, all such methods should be prohibited. Thus, her opponent concludes that Amy believes everyone should eat solely “nuts and berries,” or, at least, follow a vegetarian or vegan diet. But clearly enough, Amy’s claim isn’t fairly characterized, and thus what might be implied by that characterization is an illegitimate inference. Attributing a view to Amy, then criticizing her on the basis of that attribution, is a mistake in reasoning. The premise in this kind of argument is not fair to Amy, because it misrepresents her position (thus setting up a straw man). The conclusion based on that premise, then, does not follow from Amy’s own claim; it follows only from this unfair description of her claim (thus, knocking down the straw man). If we were to put this argument into premise-conclusion form, the fallacy committed becomes even clearer, and the bracketed premises—not stated in the original argument—show the mistaken assumption being made: Amy thinks it is cruel to raise chickens on factory farms. [Raising animals on factory farms is cruel.] [Most of the animals we eat are raised on factory farms.] [We should not do what is cruel.] [The only way to avoid this kind of cruelty is not to eat animals.] Therefore, Amy thinks we should live on just nuts and berries (that is, not eat animals). It is probably clear that this could very well mischaracterize Amy’s position; there are, for instance, ways of raising animals for food that are not cruel. But by providing the specifics of the argument here, we can see that a number of assumptions are being made—although not stated in the original argument—that one (Amy, for one) might well challenge or dispute. The trick with the straw man fallacy, however, is that there can be serious disputes about what is and isn’t a fair characterization of an opponent’s view. In our preceding examples there may be legitimate disputes about whether Senator Jones is proposing cuts to defense spending that risk weakening the military too much. There may also be disagreements with Amy, about whether there is in fact cruelty involved in factory farming, and if there is, how much cruelty is involved. The straw man fallacy is committed when it is obvious that an opponent’s position is being criticized based on a clearly unfair characterization of that position. But there may be legitimate disagreement about whether the opponent’s position is being unfairly represented. Highlights: Two Frameworks You Can Use to Help Identify Fallacies Fallacies can be difficult to identify. Putting arguments into premise-conclusion form, or equation form as it is sometimes called, can help you identify the connection between the premises and the conclusion; in other words, the relevance, or the logic. Some fallacies, like ad hominem, red herring, and straw man, occur more frequently in debates between two people; identifying them can be a little trickier. Following are two frameworks you can use to identify and distinguish between some of the fallacies you’ve learned about here. We’ll use some of the examples that are scattered throughout the chapter to illustrate two frameworks in action. First, try to figure out if the fallacy occurs in someone’s response to another person’s argument or claim. If it does, use the “Debate” framework below. Otherwise, use the “Premise-Conclusion” framework. Debate Framework 1. Identify the issue. Try to plug it into the following sentence: “The arguable issue is whether or not . . .” 2. Identify person A’s argument: both the conclusion and the premises. 3. Identify person B’s response to person A’s argument or claim. Does B attack A’s character in an attempt to discount the argument? That’s an ad hominem fallacy. Does B distort A’s claim in an attempt to make it ridiculous, easier to “knock down”? That’s a straw man fallacy. Does B bring in another issue attempting to distract from A’s argument or claim? That’s a red herring fallacy. Premise-Conclusion Framework 1. Identify the conclusion. Figure out what one is being persuaded to believe or do. Look for conclusion indicator words. 2. Identify the reasons offered in support. Look for premise indicator words. 3. Put the statements in premise-conclusion form, so the logic is easier to evaluate. 4. Compare what you get to the generic forms listed on this site: http://www.nizkor .org/features/fallacies Examples: I went to that new restaurant the other day, and I didn’t like what I had. I don’t think that restaurant is any good. P: I went to the new restaurant and did not like what I had. (insufficient evidence) C: Therefore, their food is not good. (overgeneralization) Albert Einstein was a brilliant man and believed in ghosts. So it seems that ghosts actually exist. P: Albert Einsten was a brilliant man. P: Albert Einstein believed in ghosts. P: Therefore, ghosts exist. That book must be very good; it has been on the best-seller list for weeks. P: That book is popular. C: Therefore, it must be very good. False Cause (Post Hoc) Fallacy The day before the election, the candidate decided to wear her clothes inside out. Since she won, that must have caused her victory. If one thing causes another thing to happen, the first event, of course, precedes the second event. For instance, if I put a pot of water on very high heat and the water then boils, we generally are willing to say the heating of the water caused it to boil. rabbit foot keychain on black background Lucky talismans, like a rabbit foot, often result in false cause fallacies. However, just because one thing precedes another does not mean the first causes the second. To use the terms we saw earlier, for one thing to cause another, it is a necessary condition that the cause precede the effect. But one thing preceding another is not a sufficient condition to establish a causal relationship between the two things, as this example should make clear: Every morning the rooster crows, and then the sun comes up. The rooster, therefore, must cause the sun to come up. To claim that one thing causes another solely because it occurs first is to commit the false cause fallacy. Another, more traditional name for this fallacy also reveals the mistake made in the reasoning: “post hoc, ergo propter hoc”—that is, “after this, therefore because of this.” Superstitions are a standard example of the false cause fallacy. If my luck improves (or at least doesn’t get any worse) when I carry around a rabbit’s foot, or when I tie my right shoe before tying my left shoe, or when I avoid walking under ladders, then I may be tempted to say that these practices caused or helped cause my good luck. But there are a couple of problems here. First, my luck could always be worse, so it is very difficult to tell that such superstitions really caused the results involved. Imagine I carry around a lucky penny, but I am badly injured when run over by a car. Yet my luck could have still been worse: perhaps I reason that if I had not had my lucky penny, I would have been killed by the car. But, more important, we might have difficulty establishing a causal relationship between a superstitious act and the luck that follows, were we to put it to a scientific test. And such a test, of course, would include making quite specific what such “luck” actually involved. In looking at cause and effect, we might want to distinguish among coincidences, correlations, and causes. If it rains after I wash my car, it may just be an unhappy accident (this would be a coincidence). If this happens with surprising frequency, I may think that it seems to rain almost every time I wash my car (this would be a correlation). But do we ever get to the point where we wish to claim that washing my car causes it to rain? Those who study the methods employed by science often try to determine whether a correlation actually supports the strong idea of a causal connection, as we see with this example: Every day after a full moon, the stock market goes up 10 percent. So the full moon causes the stock market to go up 10 percent. Here we may be tempted to think of this relationship as a mere coincidence, and that to make the stronger causal claim would be to commit the false cause fallacy. After all, just because the stock market went up after a full moon does not, by itself, indicate that the full moon caused it to go up. But what if someone noticed that there was a historical connection and went back through the records to discover that this relationship was very frequent—that almost every time the moon was full, the stock market then went up 10 percent the next day? How do we determine whether this correlation was not just coincidence, but a genuine causal relationship? At this point, of course, we move from logic to actual scientific inquiry, carefully examining the data and testing it in various ways. In general, we have to carefully state what the evidence is and what conclusion is being drawn, and we must examine the relationship, if any, that exists between the evidence and the conclusion. The fallacy of false cause is committed if we take a sequence of events—one thing followed by another—as by itself establishing a causal relationship. Just because B follows A, it does not follow that A causes B. And if we assert this conclusion on no other basis than the sequence “A then B,” we make a mistaken inference and, thus, commit the fallacy of the false cause. Red Herring Officer, you shouldn’t give me a speeding ticket. There are a lot of people out there who are much more dangerous than I am, and you should be chasing them, not me. The red herring fallacy is a very old mistake in reasoning—discussions of it go back at least to Aristotle—and also a very common one. A red herring fallacy is committed by someone who tries to avoid the issue by introducing another, irrelevant issue, hoping that it will then attract attention away from the issue that should be discussed. As we can see in this example, whether or not the driver deserves a speeding ticket should be determined by whether he or she was speeding. But by introducing the idea of those who break the law in more threatening ways, the driver hopes to divert the attention away from the question of whether he or she was speeding. The fallacy involved here can be made explicit by putting the example in premise-conclusion form: There are worse crimes than speeding. Therefore, I shouldn’t be given a ticket for speeding. smoked fish hanging from string Smoked fish. Like a smelly fish, a red herring is an irrelevant issue designed to throw the opponent off the true scent of the argument. As always with the fallacies we have been looking at, we see that the conclusion does not follow from the premise. While it certainly is true that there are many worse crimes than speeding, that doesn’t mean the driver was not speeding. Whether or not a speeding ticket should be given, therefore, has to be argued on a different basis. Parents are quite familiar with this kind of fallacy. Imagine Suzy says, You shouldn’t make me be home by midnight, Mom. None of my friends has to be home by midnight. To see the fallacy involved, we can put this into premise-conclusion form as well: None of my friends has to be home by midnight. Therefore, I should not have to be home by midnight. Parents, of course, have a traditional response to this argument (it might be worth considering if a fallacy is committed in this response!): If all of your friends jumped off a bridge, would you? Whether or not Suzy’s friends have to be home by midnight is irrelevant; the question is whether Suzy has to be home by midnight. By getting the parents to address the issue of other children and other rules set down by their parents, Suzy may hope to distract her own parents from their point and get them to focus on other issues. The red herring fallacy is one example of numerous fallacies that fall under the more general title of “fallacies of irrelevance” (the argument from false authority is another fallacy of irrelevance). All fallacies make the same general mistake in reasoning, leading to the overall result that the conclusion does not follow from the premise, or premises. Many fallacies make similar kinds of errors; for instance, all fallacies of irrelevance use premises that are irrelevant to the conclusion. It can get confusing keeping the various names and sub-fallacies straight, but it is more important to see that a fallacy is committed, and to be able to explain what mistake is involved. Logic in the Real World: Red Shark Fin Shark fin soup, thought to have curative powers, has a long tradition in Chinese culture. However, some fear overharvesting is causing a dangerous decline in shark populations, not to mention the cruel and wasteful practice of throwing sharks back into the water after removal of the fins. A legislator in San Francisco—home to the largest Chinatown in the United States—recently proposed a citywide ban on shark fin sales and possession. Another legislator stated in an opposing response, It seems that there are more and more examples where individuals or groups of individuals are trying to limit our heritage and our culture. It was not so many years ago that, if you happened to be Chinese, you could not go to school outside of Chinatown. Preventing Chinese students from going to school outside of Chinatown would be wrong. However, we can see that this matter has nothing at all to do with the issue at hand—that is, whether measures should be taken to stop the slaughter of sharks for their fins. In this response, the opposition threw up a smokescreen in attempting to divert our attention toward Chinese children of San Francisco and away from sharks. When analyzing arguments, it is important for us always to keep our focus upon the real issue. Doing so is the only way we can ensure that nothing “fishy” slips past us! In the specific case of the red herring, what reveals the error in the argument is the idea that a tangent, or irrelevant issue, is introduced, designed to distract one’s opponent from the issue at hand. Before we assert that the red herring fallacy has been committed, therefore, we must show that an irrelevant issue is being introduced as a distraction. In the following example, we see that one person’s “red herring” might be another person’s genuine concern about a relevant issue. For instance, imagine in a political campaign that one candidate, Ms. Smith, says this about her opponent Mr. Brown: My worthy opponent Mr. Brown advocates policies that will require more government interference in our lives, and thus should be rejected. There may be several fallacies involved here (possibly a slippery slope fallacy, for instance). But Mr. Brown might respond that the focus should be on the specific policies in question; from his perspective, Ms. Smith’s introduction of the topic of government interference may be intended as a red herring that distracts her audience from those policies. Ms. Smith, on the other hand, might think “government interference” is an important implication of the policies Mr. Brown advocates. So here we can see that although logic can help us identify when a fallacy is committed, logic cannot provide a complete account. In this case, what needs to be argued is whether Ms. Smith’s introduction of the topic of government interference is relevant (and thus not a red herring) or not relevant (and thus, as distracting from the issue at hand, is a red herring). Logic by itself is not in a position to settle that dispute! Logic in the Real World: The Top Three “Debate” Fallacies in Action Some fallacies, like ad hominem, red herring, and straw man, are ones that occur in debates between two people. Here we will illustrate the difference between these three, using a single issue: Should marijuana be legalized? Ad Hominem: Person B Discounts Person A’s Argument by Focusing on Character Person A: I think marijuana should be legalized, because it would rid the prison population of many nonviolent offenders, and that would save us money. Person B: Of course you’d say that, you’re a pot head! Straw Man: Person B Distorts Person A’s Argument to Make It Easier to Knock Down Person A: I think marijuana should be legalized, because it would rid the prison population of many nonviolent offenders, and that would save us money. Person B: You think we should legalize drugs?! That’s ridiculous! Red Herring: Person B Distracts from Person A’s Argument by Bringing in Another Issue Person A: I think marijuana should be legalized, because it would rid the prison population of many nonviolent offenders, and that would save us money. Person B: So you think nonviolent criminals shouldn’t be in prison! False Dichotomy Emma doesn’t think prayer should be allowed in public schools. Therefore, Emma must be an atheist. The fallacy of the false dichotomy is also known as the fallacy of “the false dilemma” and the fallacy of “black and white thinking.” The mistake in reasoning committed here is to present two, and only two, choices, when in fact there may be many other options available. For instance, in the preceding example, there may be many people who are not atheists who do not support prayer in public schools. To suggest that there are only two options—support for such prayers or atheism—is to ignore the many other options available. Therefore, the conclusion does not follow from the premise and commits the fallacy of the false dichotomy. We saw an earlier argument that committed the fallacy of the straw man—when Amy’s view was misrepresented and then criticized on the basis of that misrepresentation: Amy thinks the way factory farms raise chickens is cruel. Amy must think we can live on just nuts and berries. This argument also commits the fallacy of the false dichotomy, in that it is at least implied that either one completely ignores how animals are raised for food, or one must advocate vegetarianism. But, of course, one can be a carnivore and care about the treatment of animals. So this argument commits both the straw man fallacy and the fallacy of the false dichotomy. Either mistake is sufficient to reject the argument as stated, but it is good to keep in mind that a bad argument may make more than one mistake! two one-way signs pointing in opposite directions A false dichotomy fallacy suggests that there are only two options. On occasion, one may be presented with a choice in which there really is no third option. For instance, in the following example, we seem not to commit the fallacy of the false dichotomy, for there truly are only two possibilities (if we exclude vampires): Nick is either dead or alive. Nick is not dead. Therefore, Nick is alive. To understand the fallacy of the false dichotomy, then, we must examine the premises. If the premises present a false choice, by ignoring other options, then the conclusion will not follow from the premises as stated. This can sometimes take some care, and we need to be aware that some seemingly persuasive arguments upon closer examination are fallacious. For instance, one may encounter the following bumper sticker: America—Love It or Leave It The implied argument here seems to be that certain actions that might be critical of America would indicate that one doesn’t love America. The argument would then look something like this in premise-conclusion form: You must either love America or you must leave America. If you criticize America, you don’t love America. You have criticized America. Therefore, You must leave America. However, the argument implied by this bumper sticker seems to present two options when there are many others. One might, for instance, want to improve America and thus offer criticism as a way of improving it. Similarly, one might criticize one’s spouse and children while also loving them. There may be debates over what is and is not justifiable criticism; but in this case, it seems that one is presented with two choices, when actually there are other choices available. If that is the case, then, this argument would falsely present two choices and would then derive its conclusion on the basis of those two, and only those two, choices. Because there are more choices, this is a mistake in reasoning, an inference is made illegitimately, and the conclusion does not follow from the premises. Ch 4 What Did We Find? We discovered many arguments that may appear to be persuasive actually commit fallacies. We saw that fallacies can occur for various reasons. We examined how one identifies the kinds of mistakes made by fallacious arguments. We found that being aware of fallacious arguments can help us avoid them in our own reasoning, and also help us spot when others are using such arguments against us. Some Final Questions Consider some of the commercials you’ve seen. How might such commercials have employed fallacious reasoning to convince you to buy something? Try to come up with the kind of argument you might see a politician make. What fallacies do you see committed by some politicians? Why do you think such fallacies seem to be so common in politics? Are most people aware of fallacies? How can it improve one’s own arguments to be aware of fallacious reasoning? How can understanding fallacies help prevent us from being taken in by arguments that look good at first but are not? Web Links The Nizkor project Visit this site for additional examples of logical fallacies. http://www.nizkor.org/features/fallacies/ Mission: Critical—Logical Fallacies Visit this site sponsored by San Jose State University for additional exercises on logical fallacies. http://www.sjsu.edu/depts/itl/graphics/induc/ind-ded.html

 
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Milestone 4

OL 211 Milestone Four Guidelines and Rubric Overview: This milestone focuses on the topic of this week’s lessons: compensating employees. Using the material on compensation provided in this week’s lesson and the case study, write a short paper in which you:

 Describe the compensation philosophy of Maersk and how the market influences this philosophy.

 Determine the value of salary surveys to an organization.

 Describe the advantages of discretionary benefits to Maersk. Guidelines for Submission: Your submission should be two pages in length and double-spaced using 12-point T imes New Roman font. Be sure to list your references at the end of your paper. Instructor Feedback: This activity uses an integrated rubric in Blackboard. Students can view instructor feedback in the Grade Center. For more information, review these instructions.

Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value

Compensation: Compensation

 

Meets “Proficient” criteria and description is clear and detailed

Describes the compensation philosophy and describes how the market influences this philosophy

Describes the compensation philosophy and describes how the market influences this philosophy, but description is cursory or inaccurate

Does not describe compensation philosophy

46

Compensation: Salary Surveys

 

Meets “Proficient” criteria and uses evidence to substantiate claims

Determines the value of salary surveys, and describes the advantages of discretionary benefits

Determines the value of salary surveys but does not describe the advantages of discretionary benefits

Does not determine the value of salary surveys

46

Articulation of Response

Submission is free of errors related to citations, grammar, spelling, syntax, and organization and is presented in a professional and easy-to-read format

Submission has no major errors related to citations, grammar, spelling, syntax, or organization

Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas

Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas

8

Earned Total 100%

 

 
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Uber Case Study

  • Business Ethics: Ethical Decision Making & Cases 12th Edition
  • by O. C. Ferrell (Author), John Fraedrich (Author), Ferrell (Author)
  • Uber Case Study. Use the questions below to answer for the assignment.  Your paper should be 2-3 pages, double spaced, in APA format.
  1. What are the ethical challenges that Uber faces in using app-based peer-to-peer sharing technology?
  2. Since Uber is using a disruptive business model and marketing strategy, what are the risks that the company will have to overcome to be successful?
  3. Because Uber is so popular and the business model is being expanded to other industries, should there be regulation to develop compliance with standards to protect competitors and consumers?

 

2-1 Introduction

 

Uber Technologies Inc. (Uber) is a tech startup that provides ride-sharing services by

facilitating a connection between independent contractors (drivers) and riders with the use

of an app. Uber has expanded its operations to 425 cities in 72 countries around the world

and is valued at around $70 billion, making it the world’s most valuable startup.

Approximately 30 million users use Uber’s services monthly. Uber has become a key player

in the sharing economy, a new economic model in which independent contractors rent out

their underutilized resources such as vehicles or lodging to other consumers. The sharing

economy is quickly becoming an alternative to owning resources outright. Because its

services cost less than taking a traditional taxi, Uber and similar ride-sharing services have

upended the taxi industry. The company has experienced resounding success and is

looking toward expansion both internationally and within the United States.

However, Uber’s rapid success is creating challenges in the form of legal and regulatory,

social, and technical obstacles. The taxi industry, for instance, is arguing that Uber has an

unfair advantage because it does not face the same licensing requirements as they do.

Others accuse Uber of not vetting their drivers, creating potentially unsafe situations. Some

major cities are banning ride-sharing services like Uber because of these various concerns.

Additionally, Uber has faced various lawsuits, including a lawsuit filed by its independent

contractors. Its presence in the market has influenced lawmakers to draft new regulations to

govern this “app-driven” ride-sharing system. Legislation can often hinder a company’s

expansion opportunities because of the resources it must expend to comply with regulatory

requirements. Uber has been highly praised for giving independent contractors an opportunity to earn money as long as they have a car, while also offering convenient ways for consumers to get around at lower costs. Although its “Surge Pricing” technique has been criticized for charging higher fares during popular times, it is also becoming a model for other companies such as Zappos in how it compensates its call center employees. The biggest issues Uber faces include legal action because drivers are not licensed, rider and driver safety,protection and security of customer and driver information, and a lack of adequate insurance coverage. To be successful, Uber must address these issues in its marketing strategy so it can reduce resistance as it expands into other cities.

 

2-2 Background

In 2009 Travis Kalanick and Garrett Camp developed a smartphone application to connect

drivers-for-hire with people needing rides to a destination in their city. Earlier in the year the

founders had attended the inaugural address in Washington, D.C. and could not hail a taxi.

They recognized the need for a convenient, low-cost transportation service. This innovative

service was originally founded as UberCab Inc., a privately held company. It was renamed

Uber Technologies, Inc. in 2010. Co-founders Kalanick and Camp designed the mobile app

for iPhone and Android smartphones, enabling customers to get an estimated time of arrival

from the driver on their smartphone with the use of an integrated GPS system.

Consumers liked the Uber app because of its convenience and ease-of-use. After the

mobile app is downloaded to their smartphones, passengers can pay for the rides-for-hire

service through a third party, known as a Transportation Network Company (TNC), using the

UberX platform that scans or takes a picture of their credit card with the smartphone’s

camera. Uber does not maintain automobile inventory for drivers, such as a fleet of taxicabs

or limousines. Instead, each driver-for-hire supplies his or her own personal automobile,

gas, insurance, and maintenance of his or her own car. Drivers can drive their own cars

where they want when they want, providing them with freedom to run their own small

businesses. A surge pricing model is used during times of peak demand. While Uber initially

charged about a 20 percent commission, it later introduced a new tiered structure in some

cities that charged different commission rates depending upon the number of hours worked.

Due to the increased demand in the rides-for-hire industry, Uber makes about $4 billion in

revenue. The term uber has become so popular that people have started using it as a verb,

much like google. Founder and former CEO Travis Kalanick sees Uber’s services as a type

of disruptive technology, believing that the types of ride-sharing services Uber offers will one

day make it a viable alternative to owning a car. Younger generations appear more open to

using services as needed rather than owning them outright. In emerging economies such as

India, many people do not own cars, which gives Uber a major advantage. As ride sharing

continues to increase, Uber could find itself competing against car ownership.

Uber maintains a presence in major U.S. cities including Los Angeles, San Francisco, New

York City, Chicago, Washington D.C., and Boston. These cities have the most driver–

partners, although many other cities also have driver–partners. Uber technology-based

products are available under these various brands: Uber, UberX, UberXL, UberSelect,

UberBlack, UberSUV, UberLUX, UberPool, and the logistics-request brand UberEats. Uber

has also upgraded its current navigation service (Google and Apple) with deCarta Mapping

Company. This new mapping system continues to improve Uber’s navigation and location

technologies.

 

2-3 Uber’s Marketing Strategy

Like all companies, Uber must understand its target market and maintain a strong marketing

mix to be successful. Due to its technology, Uber does not have as many constraints as taxi

cabs, although it has encountered regulatory obstacles and some public resistance. The

Uber business model takes advantage of the smartphone technology of consumers and

links them with independent drivers as their cabs. This provides a more potentially efficient

and less-expensive way to purchase transportation.

2-3a Products

Uber’s products are all digital. Consumers download Uber’s app onto their smartphones.

When they want to request a ride, they can use the app to contact a driver in the near

vicinity. The Uber app allows consumers to track the location of the car and alerts them to

when the car arrives.

Uber offers a few different services to customers based upon their preferences. Its most

used service is UberX, the low-budget option. Drivers use their own vehicles to transport

passengers. UberSelect is a more luxurious option than UberX but with lower prices than

the premium options. UberBlack is for consumers who desire to have their own private

driver in a high-end sedan. UberSUV connects users with SUVs, while UberLux is the most

expensive service with luxury vehicles. UberXL is similar to UberSUV but costs 50 percent

less. Another low-cost option includes UberPool, which allows passengers to share rides

and split the costs.

Uber is also attempting to expand into other services. Its UberEats is a meal delivery app

that partners with local restaurants to offer meals to consumers within 10 minutes. Uber is

also looking to break into the emerging self-driving car industry (known as autonomous

cars), competing against the likes of Google and Tesla. Uber partnered with Carnegie

Mellon University to begin testing autonomous cars in Pittsburgh, Pennsylvania.Since it is

still in the testing stage, autonomous cars have two Uber employees in the front seat ready

to take the wheel if needed. The company hopes to take what it learns to improve how

autonomous cars run in different terrains. These new services are allowing Uber to branch

out and expand into different businesses.

 

2-3b Distribution

Uber operates in more than 425 cities in 72 countries. One major reason Uber is so popular

is because its app allows users to contact any drivers in the near vicinity. Drivers use the

Uber app to provide them with directions. Los Angeles, San Francisco, New York, Chicago,

Washington D.C., and Boston have the most drivers in the United States. Most Uber drivers

offer their ride-sharing services on a part-time basis.

To be successful, Uber engages in strategic partnerships with other companies. In the

United States it partnered with American Express. Card members enrolled in American

Express’s Membership Rewards program can earn points with Uber for rides. Strategic

partnerships with local firms are especially important as Uber expands internationally

because it allows the company to utilize the resources and knowledge of domestic firms

familiar with the country’s culture. Uber has partnered with Times Internet in India, Baidu in

China, and AmericaMovil in Latin America.

 

2-3c Pricing

Uber uses its app to determine pricing. Once the passenger completes his or her ride with

an Uber partner–driver, the person’s credit card is charged automatically. Fees charged for

speeds over 11 miles per hour are charged by the distance traveled. Uber operates on a

cost leadership basis, claiming that it offers lower rates than taxis. However, the app

OpenStreetCab suggests that Uber might be more cost-efficient only when the fare is more

than $35.

Uber uses an algorithm to estimate fees charged when demand is high. Called surge

pricing, Uber has even applied for a patent for this type of system. This “peak pricing”

strategy is not too different than when utilities or flights charge higher prices when demand

is high. Passengers are alerted during times when the price is higher. However, the extent of

the pricing increase has been questioned as some consumers believe Uber uses this high

demand to “price gouge” passengers.

In some situations, Uber’s surge pricing has led to considerable criticism. During one New

Year’s Eve, pricing surged up to seven times the normal price. During a hostage crisis in

Sydney, Australia, Uber charged as much as four times the normal price as an influx of

people struggled to evacuate. Uber responded by claiming its price hikes encouraged more

drivers to pick up passengers in the area, but consumers were outraged. Within an hour

Uber agreed to refund users in the Sydney area who paid the higher prices. In extreme

shortages, prices are sometimes hiked to as high as 6–8 percent. On the one hand, it can

be argued that surge pricing increases the number of drivers during times of high demand. It

is estimated that the number of drivers increases by 70–80 percent due to surge pricing. On

the other hand, consumers believe this is a form of price gouging and that Uber capitalizes

on emergency situations such as the Sydney hostage crisis. Uber has to reconcile these

different situations to create a pricing strategy considered fair by its users.

 

2-3d Promotion

Uber has engaged in a number of promotional activities to make its brand known. Often it

adopts buzz marketing strategies to draw attention to its services. For instance, to celebrate

National Ice Cream Month one year Uber launched on-demand ice cream trucks in seven

major cities. In one promotion Uber partnered with General Electric to offer free DeLorean

rides to San Francisco users reminiscent of the movie Back to the Future. Uber also uses

promotion to portray its benefits compared to its rivals. For instance, Uber assumed a

combative advertising approach to its major rival Lyft through a Facebook ad campaign.

Uber advertising often stresses the convenience and low cost of its ride-sharing services.

However, like all companies Uber must take care to ensure that its advertising could not be

construed as misleading. A lawsuit was filed in the U.S. District Court in San Francisco

stating that Uber violated the 1946 Lanham Act that prohibits false advertising. Taxi

companies claimed, for instance, that Uber’s drivers do not have to undergo fingerprinting in

California as part of background checks, and yet it used advertising such as “the safest ride

on the road” and sets “the strictest safety standards possible,” as well as Uber’s $1 “Safe

Rides Fee.” According to the taxi drivers, these deceptive advertising practices take

customers away from their services and are therefore leading to economic harm.

2-4 Uber Faces Challenges

Uber faces a number of challenges including internal struggles, legal and regulatory

challenges, and global issues. In the United States, major cities are considering regulating

Uber. However, it faces even more challenges as it expands internationally as some

countries are opting to ban Uber services. Uber will have to adapt its marketing strategy to

address both domestic challenges within the United States and the various laws enforced in

different countries.

2-4a Internal Challenges—Driver Relations

Uber operates in an industry where trust between strangers is vital. This trust ensures a

safe and comfortable ride for both passenger and driver. Uber has developed a rating

system to help assure this trust and reliability between passengers and drivers, called a

ride-share ratings system. Ride-share rating systems pose a unique challenge for Uber

because of the way they are set up and the level of rider objectivity. Uber’s insistent policy of

maintaining a five-star fleet can put drivers at a disadvantage. Uber rivals have similar

policies; for instance, Lyft tells customers that anything less than 5 stars indicate

unhappiness with the ride.

Low driver scores can mean drivers are forced to take remedial classes where they learn

about safe driving techniques and driver etiquette. Those who fail to increase their scores

risk suspension or permanent deactivation. Because consumers have different views of

what constitutes quality, it can be argued that Uber drivers are placed at the mercy of the

consumer’s mood.

Drivers have also expressed unhappiness with Uber’s pay. Uber will often lower fare rates in

order to gain a competitive advantage in different markets, which cuts into driver earnings.

Additionally, drivers are driving their own cars and spending their personal funds on upkeep

and insurance. In 2014 drivers working with Teamsters Local 986 launched the California

App-based Drivers Association (CADA), an Uber drivers’ Union. More cities have started

their own unions.

Uber has begun to guarantee hourly earnings of $10–$26 per hour for its drivers, but to

qualify drivers have to comply with Uber’s rules including accepting 90 percent of ride

requests, doing one ride per hour, and being online 50 out of 60 minutes. Critics say these

restrictions effectively keep drivers from working for other ride-sharing services. Uber drivers

are independent contractors and not employees of the company, so they have the option to

work for competitors. However, these new criteria may be a way to keep drivers working for

Uber and no one else.

This independent contractor status has also created controversy for drivers. Drivers claim

that Uber’s requirements make them more employees than independent contractors. For

instance, Uber has certain rules about types of car and soliciting business. Some also claim

that after Uber takes its commission, they end up earning less than minimum wage.

Disgruntled drivers have staged protests and filed lawsuits against the firm.

In 2015 Uber faced a setback when a California labor commissioner ruled that an Uber

driver qualified as an employee. The commissioner argued that because Uber was “involved

in every aspect of the operation,” including setting fares and nonnegotiable fees, it had enough control over the driver for her to qualify as an employee. Uber was ordered to pay

the driver $4,100 to cover mileage and tolls. Uber continues to maintain that its drivers are

independent contractors and is still fighting against other lawsuits in California. While this

does not necessarily mean all Uber drivers will qualify as employees under the court

system, it does set a precedent for drivers in other states to file lawsuits. If Uber encounters

more issues in this area, it might have to alter its relationship with drivers and give up some

control so its drivers will fall beneath the employee threshold.

2-4b Corporate Culture

More recently, Uber has come under criticism for an aggressive—and some say toxic—

corporate culture. Some prominent executives at Uber have left the firm, claiming that the

corporate culture conflicted with their values. The problems became so serious that one of

Uber’s biggest shareholders and other investors pressured Travis Kalanick to resign as

CEO, although he will remain on the board. Kalanick was well known for his aggressive

strategies, and according to critics, this behavior began trickling down to employees.

Investors began to question how Kalanick’s temperament might impact his leadership

capabilities after some high-profile negative events. For instance, an Uber driver driving

Travis Kalanick had a heated exchange with Kalanick that was recorded and released to the

public. Kalanick was highly criticized for his participation on President Donald Trump’s

president advisory panel, and accusations that Uber had weakened a taxi union strike

protest led to 200,000 customers deleting their accounts. Autonomous car company

Waymo, owned by Alphabet Inc., has sued Uber, claiming that one of its employees stole

trade secrets.

Like many Silicon Valley startups, Uber has also been criticized for its lack of diversity. One

woman who worked as an engineer for the firm maintains her sexual harassment claims

were dismissed after complaining of unwanted sexual advances by her superior. She wrote

a blog detailing her ordeal. In response, Uber launched an investigation into the claims.

However, it initially resisted calls from the media and Civil Rights leader Reverend Jesse

Jackson to disclose the demographics of its workforce.

Uber’s resistance to releasing its diversity statistics coupled with accusations of sexual

harassment led to a backlash among certain investors. Two prominent investors wrote a

letter to Travis Kalanick claiming that Uber had a toxic culture that needed to change. Uber

agreed to release its first diversity report, have its employees undergo diversity training, and

hire a new chief operating officer. The company hired Bernard Coleman, who was chief

diversity officer for Hillary Clinton’s presidential campaign, as its chief diversity officer in

order to help increase the diversity of its workforce. It also fired 20 employees it believed

were involved in harassment, discrimination, or other improper behaviors.

Travis Kalanick responded to the negative press by apologizing for his behavior and

admitted he needs leadership help. When morale dropped after the engineer’s sexual

harassment allegations, he met with a group of female employees to discuss their concerns.

Despite these positive actions, it was not enough to quell shareholder unease. Travis

Kalanick agreed to resign as CEO due to the pressure from investors. The challenge Uber

faces is that it has become so associated with its founder that it may be difficult to change

leadership while maintaining such rapid expansion and success.

 

2-4c Legal Challenges

Regulation is a constant challenge for Uber. As it becomes more popular, Uber will become

subject to more legal and regulatory requirements common to other big businesses. For

instance, the Americans with Disabilities Act is becoming a challenge for Uber. Since the

Uber service is usually operated within a driver’s personal vehicle, many of the vehicles are

not wheelchair friendly.

Taxi lobbies are also pressuring local governments to block Uber in many cities. They claim

that Uber hurts their businesses and has an unfair advantage as Uber drivers are not

subject to the same restrictions as licensed taxi drivers. Cities have taken action against

Uber by blocking ordinances that provide a path to legalization for mobile ride-booking apps

and issuing cease-and-desist orders. With Uber looking into expanding into self-driving

vehicles—a new industry that will prompt a number of safety laws—its encounters with

regulators are not likely to decrease any time soon.

Uber has often taken an aggressive stance against regulations that would place limitations

on its services. For instance, in 2012 when Washington D.C. attempted to force Uber to

accept a price floor to operate in the city, Travis Kalanick accused regulators of price fixing

and encouraged Uber users to contact their representatives. The result was a flood of angry

responses. Kalanick’s approach to negotiating with regulators could be described as

antagonistic as he often ignored his lobbyists’ advice to seek compromise. Uber has also

been accused of blatantly disregarding laws in other countries that forbid ride-sharing

services, a criticism that will be discussed more in-depth in a later section.

In addition to having an unfair competitive advantage, another accusation levied against

Uber is that it does not adhere to proper safety standards. Allegedly, Uber drivers were

involved in three rapes in Delhi, India; Chicago; and Boston. These rapes harmed Uber’s

reputation and cast its safety into question. A lawsuit was filed against Uber in San

Francisco for the wrongful death of a 6-year-old girl. The lawsuit alleged that a driver was

distracted using the UberX app when he struck and killed the girl. Uber responded by

claiming that the driver was not an agent for Uber and was not en route or transporting a

passenger at the time of the accident. Once again, this brings up the issue of how much

Uber should be responsible for its drivers as independent contractors.

To reestablish its reputation for safety, Uber has added a “safe ride checklist” to its app,

which is a pre-pickup notification that encourages riders to confirm the license plate number

and verify their driver’s name and appearance before entering a vehicle. They have also

added a team of safety and fraud experts to authenticate drivers and a dedicated incident response team to address rider issues in India. Insurance is another criticism. Although Uber’s website claims that it offers $1 million in liability insurance plans for its drivers, some states are issuing warnings stating that rideshare insurance may not cover them should there be an accident. This is because personal cars are being used for commercial purposes. Many states in the United States are reconsidering insurance requirements in light of this issue, and insurance firms such as Geico and MetLife have begun offering insurance packages for ride-sharing services.

 

2-4d Global Expansion

Uber has adopted the motto “Available locally, expanding globally” to describe the

opportunities it sees in global expansion. International expansion is a major part of Uber’s

marketing strategy, and it has thus far established the ride-sharing service in 72 countries.

Uber is correct in assuming that consumers from other countries would also appreciate the

low cost, convenience, and freedom that its app services offer.

Even though it is successful in some countries, many countries have regulatory hurdles that

have caused trouble for Uber to successfully operate in these areas. Perhaps the biggest is

the failure to obtain licenses even though Uber drivers offer many of the same services as a

taxi. Governments have responded by banning Uber or Uber services due to the lack of

professional licenses for drivers. For instance, in Spain, Uber shut down its ride-sharing

service after a judge ruled that Uber drivers are not legally authorized to transport

passengers by unfairly competing against licensed taxi drivers. Uber has since returned to

Spain with UberX, which uses licensed drivers. Police in Cape Town, South Africa

impounded 33 cars operating with the Uber app because the drivers did not have a taxi

license. Police in Indonesia have been prompted by taxi and transportation operators to

investigate whether Uber’s start-up practices are illegal. Bans have also been instituted in

France, India, and Germany.

France

In 2011 Paris became the first city outside of the United States where Uber set up

operations. However, an attempt was made to ban one of its services because drivers did

not need to be licensed. French police even raided Uber’s Paris office. A French law was

passed mandating that operating a service that connects passengers to non-licensed

drivers is punishable with fines of over $300,000 and up to two years in prison. Hundreds of

Uber drivers in France were issued fines for operating illegally.

Uber challenged that law, claiming that it is unconstitutional because it hinders free

enterprise. A French court decided against banning Uber’s service and sent the case to a

higher court. This has generated strong criticism from taxicab officials in France as they

claim that they have to license drivers while Uber is currently free from this restriction.

French courts later ruled against Uber, and the company no longer uses unlicensed drivers

in the country.

India

India is Uber’s second largest market after the United States. India rejected Uber’s

application for a taxi license. In New Delhi a woman’s rape allegation led to a ban against

app-based services without radio-taxi permits in the capital. In response to the alleged rape, Uber began installing “panic button” and tracking features to its app. Uber also began

offering its service in New Delhi without charging booking or service fees.

Despite these changes, Uber continued to run afoul of Indian authorities. India asked

Internet service providers to block Uber’s websites because it continued to operate in the

city despite being banned. However, it did not ban the apps themselves because doing so

would require it to institute the ban across the entire country. Uber must tread carefully to

seize upon opportunities in India without violating regulatory requirements. This is more

difficult as Uber drivers are independent contractors that set their own schedules and make

their own decisions about whether to work.

Germany

In 2015 a German court banned Uber services if they used unlicensed drivers. Uber argued

in court that the company itself is only an agent to connect driver and rider. Rules that apply

to taxi services do not apply, and all services are deemed to be legal, according to Uber.

The court ruled that Uber’s business model clearly infringes the Personal Transportation

Law, because drivers transport riders without a personal transportation license. The

injunction includes a fine of more than $260,000 per ride for non compliance. If the

injunction is breached, drivers could go to jail for up to half a year, in addition to an

imposition of fines. The German Taxi Association (Taxi Deutschland) was pleased with the

outcome and claimed that taxi services will remain in the hands of qualified people and keep

everyone safer. Despite the ruling, an Uber spokesperson said that the company will not

give up on Germany because other Uber services that use licensed drivers remain

unaffected by the District Court’s verdict.

 

 

2-5 Uber Addresses Risks

Long-term sustainability of Uber depends on managing future risks in five key areas:

1. Drivers: The number of disgruntled drivers could get out of control if Uber increases its

profit share deductions. With recent laws mandating healthcare insurance, drivers

may require healthcare coverage. Training programs to improve driving skills could

reduce risk from negligent drivers and decrease liability insurance costs. Additionally,

if Uber successfully expands into the autonomous car industry, it will most likely have

to deal with resistance as autonomous vehicles could reduce and/or eliminate the

need for drivers. Finally, strong competition in the industry has caused Uber to make

changes in how it compensates drivers, which has prompted some drivers to complain

that they cannot make a sustainable income.

2. Competitors: Uber’s business model can be found in similar rides-for-hire services,

such as Lyft and the Indian ride-sharing service Ola. More rides-for-hires could

emerge, in addition to the everyday competition from taxis, limos, rental car

businesses, air travel, trains, and city and chartered buses. Switching costs for

customers are low, and because ride-sharing companies do not own their own fleets,

costs of operating are much less than in other industries. This means that Uber must

remain competitive if it wants to keep its customers loyal. Lyft is probably Uber’s

biggest competitor in the United States with 20 percent market share. Its smaller size

makes it easier for Lyft to subsidize drivers and lower fares. Expanding into the

autonomous car industry will also place Uber in competition with Google, Tesla, and

major automobile manufacturers that are also trying to enter the industry.

3. Customer Base: Increasing the demand for rides-for-services is a continuous or future

challenge that requires attention primarily to safety improvements and rates that have

a cost/benefit to both passengers and drivers. Unpredictable demand is a future risk

that could be met with product diversification. Currently, Uber offers technologyoriented

products, and it must continue to be competitive in an industry where there is

intense competition for rates.

4. Technology: Customers are wary of downloading apps, and some online businesses

have been hacked for credit card information. Uber could upgrade its database

security system to reduce financial or personal account information risks. Additionally,

success in the autonomous car industry will take a lot of investment from Uber, and many regulators are likely to be initially wary of self-driving cars—especially since

there are so few laws governing it.

5. Customer Satisfaction: Long waits, inexperienced drivers, and even sexual

harassment have been reported. Better Business Bureau complaints mainly involve

pricing and problems with service. Uber might use the Internet to check consumer

complaints and address them to improve customer satisfaction.

 

 

2-6 Conclusion

The emergence of Uber has influenced many services to follow the Uber business model.

There are similar firms that offer ride-sharing services, and there are firms that want to be

an Uber-type business in the way they deliver goods and services. For example,

Cargomatic has developed an app to help fill space on trucks. Cargomatic, which now

operates in California and New York, has been called the Uber for truckers because it

connects shippers with drivers who are looking for extra shipments to haul. This is signaling

a shift in the industry, in which people are the infrastructure rather than buildings or fleets of

vehicles. Uber faces a number of ethical challenges, including regulatory and legal issues both inside and outside of the United States. Laws that protect consumers specifically target taxi services, whereas Uber defines its services as “ride sharing” and Uber as an “agent” of their “individual contractors.” However, many courts do not view its services in the same way and are forcing Uber to comply with licensing laws or stop business in certain areas. Additionally,snafus by Travis Kalanick and Uber’s aggressive corporate culture has led to Kalanick’s resignation as CEO.Despite Uber’s challenges, the company has become widely popular among consumers and independent contractors. Supporters claim that Uber is revolutionizing the transportation service industry. Investors clearly believe Uber is going to be strong in the market in the long run. Uber has a bright future and expansion opportunities are great. It is therefore important for Uber to ensure the safety of its riders and the drivers. It should also adopt controls to ensure that independent contractors using its app obey relevant country laws. Uber has to address these issues to uphold the trust of its customers and achieve long-term market success.

 

 

2-7 Chapter Review

2-7a Questions for Discussion

1. What are the ethical challenges that Uber faces in using app-based peer-topeer

sharing technology?

2. Since Uber is using a disruptive business model and marketing strategy, what

are the risks that the company will have to overcome to be successful?

3. Because Uber is so popular and the business model is being expanded to

other industries, should there be regulation to develop compliance with

standards to protect competitors and consumers?

 
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