Midterm Case

YORK UNIVERSITY

FACULTY OF LIBERAL ARTS AND PROFESSIONAL STUDIES

SCHOOL OF ADMINISTRATIVE STUDIES

AP/ADMS 1000

INTRODUCTION TO ADMINISTRATIVE STUDIES

Fall 2011, Section H

Professor Len Karakowsky

MID-TERM EXAMINATION

Friday, October 28, 2011

11:30pm-2:00pm

INSTRUCTIONS:

1. This is closed-book, 2.5 hour exam. No electronic devices of any kind are permitted.

2. This exam is worth 40% of the final grade.

3. This exam contains five (5) pages & three (3) parts:

Part I (multiple choice: 15 marks)

Part II (short answer: 20 marks)

PART III (case/concept application: 45 marks).

Total exam marks=80 marks.

4. Write or print clearly using black or blue pen only in the booklet(s) provided. All answers for all 3 Parts must be written in the lined-paper exam booklets, including the multiple choice answers.

5. Upon completion students must submit all exam booklet(s). On the booklet(s), print: your name, student number, instructors name, and the number of booklets used.

6. Students must sign-in and sign-out.

PART I MULTIPLE CHOICE (TOTAL 15 MARKS)

For each of the following 15 multiple choice questions (worth 1 mark each), choose the best answer. Number the questions in your exam booklet and beside each number print the letter corresponding to your choice:

1. A command economy

a) relies on government to control all or most factors of production

b) relies on government to make all or most production and allocation decisions

c) all of the above

d) none of the above

2. A market economy

a) exists when producers and consumers control production and allocation decisions through supply and demand.

b) always maintains perfect competition

c) all of the above

d) none of the above

3. Canada is an example of

a) a command economy

b) a market economy

c) a mixed market economy

d) a domestic economy

4. Which is not a factor of production?

a) labour

b) capital

c) research and development

d) information resources

5. An oligopoly contains

a) no competitors

b) many competitors

c) few competitors

d) many competitors, but fewer than in pure competition

10 more on actual exam..

PART 2 SHORT ANSWER (20 MARKS)

Read this quote and answer the following question. Keep in mind that in addressing the question below, you must apply the concepts, theories or frameworks discussed in class or in the assigned readings. Make any assumptions that you feel are necessary.

Canada Post, FedEx, and any other postal service urgently needs to understand what stage of the life-cycle that their industry is in.

Question: Explain that statement by briefly describing the four stages of industry evolution and use this mail industry as an example for each stage. Discuss also the main factors that may have driven this industry into the last phase/stage (20 marks).

PART 3 CASE/CONCEPT APPLICATION (TOTAL 45 MARKS)

Read the article below and respond to the three (3) questions following the article. Your answers must make explicit reference to relevant course concepts and frameworks.

COLTAN: A BILLION DOLLAR INDUSTRY

In the next few weeks, millions of electronics will be bought from store shelves during the busy holiday shopping season - computers, smart phones, electronic book-readers. Almost every one of the gadgets Canadians purchase will help to extend Africas misery. It all is because of a mineral called coltan. Coltan is the industrial name for the black metallic mineral known as columbite-tantalite. Coltan is a critical component in the circuitry of smart phones and other personal electronic devices like DVD players, computers, video game systems, and so forth. The market for coltan, is worth about $2 billion US annually.

80% of the worlds coltan in Africa and specifically Eastern Congo. Eastern Congo has recently been involved in some of the bloodiest and horrific civil conflicts in the world. So far around 7 million people have died (since 1998) and currently 45,000 die every month from this conflict. These coltan minerals in Eastern Congo are being sold to the international market by rebel armies and fueling this bloody conflict.

It is said that Coltan is extracted under terrible working conditions in mines in Eastern Congo. Men, women and children are often forced at gunpoint to mine coltan that is then shipped out of the country at huge profits. Recent reports indicate that child labour in Africa has significantly increased in coltan mines. In some regions of the Congo, about 30 per cent of schoolchildren are now forced to work in the mines. Coltan has therefore been called a conflict mineral. Conflict minerals refer to minerals that are extracted from the earth in a country or region entangled in armed conflict. They come from mines controlled by armed groups, who then sell the resources to purchase weapons and other suppliesor luxuries. It's a cycle that essentially keeps the war going (sell coltan = make money = buy weapons = create more violence). Hence we call this conflict coltan.

Corporations from a number of countries have been a part of the coltan exploitation chain. These companies include but are not limited to Germanys HC Starc and EPCOS, Chinas Nigncxia, and Belgiums George Forrest International. Once the coltan is processed it is then sold to companies such as Nokia, Motorola, Compaq, Alcatel, Dell, Hewlett-Packard, IBM, Lucent, Ericsson and Sony for use in a wide assortment of everyday products ranging from cell phones to computer chips and game consoles.

Currently there is no clear nor effective legislation that prevents such companies from purchasing products that contain conflict coltan. Obviously the Canadian and U.S. governments would like to encourage international electronics manufacturers and retail companies to avoid buying and using minerals that come from conflict mines. It would be desirable for such companies to try and identify where they are getting their coltan. However, right now it is questionable whether companies want to identify where their coltan is actually coming from because this would require them to carefully track down their suppliers and assess what is going on in each specific mine that would cost companies a lot of money.

Companies that want to avoid using conflict coltan have to be prepared to pay more to ensure that the raw materials they purchase do not end up putting money in the pockets of mass murderers and warlords. If companies do purchase only from ethical mines, they can then advertise their products as conflict free a potentially effective marketing strategy. However, their products would tend to be more expensive because it will cost them more to ensure their coltan is conflict free. So consumers can buy conflict-free coltan products if they are willing to pay more for the product.

Are stores and consumers willing to pay more for conflict-free products? The evidence to date suggests that most stores (and most consumers) either dont know about coltan or dont care and just want the lowest price to obtain their smart phones and other electronic gadgets.

Part 3 Case/Concept Application Questions (total 45 marks)

Based on the article above, respond to the following questions. Your responses must make explicit reference to any relevant course material (concepts, frameworks etc. from the lectures and/or text).

1. How is the concept of corporate social responsibility relevant to the companies mentioned in this case, like Nokia, Motorola, Compaq, Alcatel, Dell, Hewlett-Packard, IBM, Lucent, Ericsson and Sony? Your answer should also include a discussion of the 4 levels of the CSR pyramid in addition to our basic definition of CSR (Total 15 marks)

2. Provide four arguments as to why these companies must ensure they avoid conflict minerals (ie., should be socially responsible). (Total 15 marks)

3. Provide four arguments as to why these companies do not need to avoid conflict minerals. (ie., need not be socially responsible) (Total 15 marks)

Based on a recent Globe and Mail article, Bloodstains at our fingertips by Iain Marlow and Omar El Akkad.

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