Corporate-level strategy - a discussion agenda

The topic of Corporate-level Strategy is taught in Strategic Financial Management as well as in Strategic Management. The following is a discussion agenda:

1. Specific topics in Corporate-level Strategy
• Corporate parenting,
• Portfolio management,
• Diversification and,
• Penetration, consolidation and development
2.  Strategic direction
• Ansoff matrix on strategic direction (re: Exhibit 7.2), in terms of the two dimensions of markets and products
• Market penetration
• Consolidation
• Product development
• Market development
• Diversification
3. Diversification
• Reasons for diversification
• Good reasons: efficiency gains, stretch corporate parenting capabilities, increase market power
• Bad reasons: respond to market decline, spread risk,  meet expectations of powerful stakeholders
• Related diversification and unrelated diversification
• Diversification and performance
4. Value Creation and the Corporate Parent
• Value-adding and value destroying activities of corporate parents
• Role of corporate parents
• As a portfolio manager
• As a synergy manager
• As a parental developer
5. Portfolio matrices
• The growth share (BCG) matrix
• The directional policy (GE-McKinsey) matrix
6. The parenting matrix
• The Ashridge Portfolio Display

Related handwritten notes:

References

1. Johnson, G., Scholes, K. and Whittington, R. (2008) Exploring Corporate Strategy, Prentice Hall.
2. Ansoff matrix (video): http://www.youtube.com/watch?v=AORoMxgp428
3. On synergy: http://en.wikipedia.org/wiki/Synergy

Business-level Strategy - a discussion agenda

The  topic of Business-level Strategy is taught in Strategic Financial Management by me; it is also covered in Strategic  Management. The major discussion items are as follows:

1. Major elements of Strategic Business Unit Strategies
• Bases of competitive strategy
• Achieving competitive advantage
2. Identificationof Strategic Business Units (SBUs)
• Critieria: market-based criteria and capabilities-based criteria
3. Bases of competitive advantage
• The strategy clock
• How to sustain competitive advantage (re: Exhibit 6.3)
• Sustain price-based advantage
• Sustain differentiation-based advantage
• Strategic lock-in
• Respond to competitive threat
4. Competitive strategy in hypercompetitive conditions
• Overcome competitors' bases of strategic advantage
• Profile of successful hypercompetitive strategies
5. Competition  and collaboration
• Coopetition
6. Game theory
• The 'prisoner's dilemma
• Sequential games
• Change the rules of the game

Related handwritten note:

References

1. Johnson, G., Scholes, K. and Whittington, R. (2008) Exploring Corporate Strategy, Prentice Hall.
2. Develop a competitive advantage (video): http://www.youtube.com/watch?v=S9O2oPbT3fs
3. Resources and competitive advantage (video): http://www.youtube.com/watch?v=BfGQYYu0Pzs&feature=related
4. Porter's generic strategies (video): http://www.youtube.com/watch?v=ndARJzmKras&feature=relmfu
5. Porter's 5-Force Model (video) (by Porter): http://www.youtube.com/watch?v=2FzYhdS4pqM&feature=related

Inflation considerations in Engineering Economics

The following discussion agenda is on Inflation considerations in Engineering Economics:

1. What is inflation?
2. Procedure to adjust inflation
3. Inflation adjusted economic life of machine
• Economic life determination without inflationary effect
• Economic life determination with inflationary effect

Lecture notes: refer to page 8 of lecture notes on inflation. The following steps indicates how it (pg 8) is related to the Fisher formula:

Refer to lecture notes page 8 below:

The following note is related to page 10 of the lecture notes:

Refer to page 10 lecture notes below:

The following notes explains why inflation will lead to lower real IRR because depreciation charge is constant, leading to higher income tax amount on larger amount of profit in real dollar term (re: lecture note pg. 20):

References

1. Panneerselvam, R. (2001) "Chapter 11: Inflation adjusted decisions" Engineering Economics, Prentice-Hall of India
2. On inflation: http://en.wikipedia.org/wiki/Inflation; a video on inflation: http://www.youtube.com/watch?v=9sZdXJbK554&feature=related
3. How to calculate inflation rate (video): http://www.youtube.com/watch?v=0MmOiDhYC-s
4. On deflation (video): http://www.youtube.com/watch?v=LH7cFQrgxpk&feature=related
5. Quantity theory of money: http://en.wikipedia.org/wiki/Quantity_theory_of_money
6. Fisher equation: http://en.wikipedia.org/wiki/Fisher_equation
7. On money supply: http://en.wikipedia.org/wiki/Money_supply
8. On quantitative easing: http://en.wikipedia.org/wiki/Quantitative_easing
9. On consumer price index (video): http://www.youtube.com/watch?v=hnCYtx3frRA
10. On Phillips curve: http://www.youtube.com/watch?v=-Fk_2iRfC18

Replacement Analysis in Engineering Economics

The following is a discussion agenda on Replacement Analysis in Engineering Economics:

1. Types of maintenance
• Preventive maintenance
• Breakdown maintenance
• The diagram on maintenance costts (re: Figure 8.1 of Panneerselvam (2001, pg. 101).)
2. Determination of economic life of an asset (re: Figure 8.2 of Panneerselvam (2001, pg. 102).)
• Capital recovery cost
• Average operating and maintenance cost
3. Replacement of existing asset with a new asset
• Capital recovery with return
• Concept of challenger and defender
• Simple probabilistic model for items which fail completely

Some relevant notes:

Diagram as related to lecture notes (pg. 7):

For case 2 above, choose defender or challenger depending on the minimum EAC of  them. (Each of them should have a range of EAC depending on years of usage; minimum EAC for an equipment (based on a particular usage duration [no. of years] also determines the economic life of that equipment because its EAC is minimum among the "range of years" of usage considered).


References

1. Panneerselvam, R. (2001) "Chapter 8: Replacement and Maintenance Analysis" Engineering Economics, Prentice-Hall of India
2. Replacement analysis exercises and answers: http://www.us.oup.com/us/pdf/engineeringecon/Chapter10.pdf

Income tax considerations in Engineering Economics

The following discussion agenda is on Income Tax considerations in Engineering Economics:

1. Types of taxes
• Property taxes
• Excise taxes
• Income taxes
2. Corporate income taxes
• Effective income tax
• Investment credit
• Capital gains and losses
• Carrybacks and carryovers
3. After-tax economic considerations
• After-tax cash flow
• After-tax comparison of proposals
• Afer-tax evaluation of a depreciable asset
• After-tax analysis with debt  financing
• After-tax replacement study
• After-tax comparison of a defender and a challenger with revenue unknown

Some lecture notes

References

1. Riggs, J.L., Bedworth, D.D. and Randhawa, S.U. (1998) "Chapter 9: Depeciation and Income Tax Considerations" in Engineering Economics, McGraw-Hill
2. On tax incidence: http://en.wikipedia.org/wiki/Tax_incidence
3. On tax: http://en.wikipedia.org/wiki/Tax
4. On taxable income: http://en.wikipedia.org/wiki/Taxable_income
5. Hong Kong Taxation System: http://www.rytc.com.hk/e_tt_bt_ovhkt.htm
6. UK Taxation System: http://tutor2u.net/economics/revision-notes/a2-macro-direct-indirect-taxation.html
7. On corporate tax: http://en.wikipedia.org/wiki/Corporate_tax
8. On consumer and producer surplus: http://www.youtube.com/watch?v=WforwhGw5dI

Depreciation treatment in Engineering Economics

The following discussion agenda is on Depreciation treatement in Engineering Economics:

1. An introduction to Depreciation
• Causes of declining value
• Physical depreciation
• Functional depreciation
• Technological depreciation
• sudden failures
• Depletion
2. Depreciation in Accounting
• Requirements for a property to be depreciable
3. Modified Acceleratted Cost Recovery System
4. Basic methods of calculating depreciation charges
• Straight-line method
• Declining-balanced method
• Double-declining-balance depreciation
• Switch from double-declining balance to straight-line depreciation
5. Evaluation of depreciation methods
• After-tax effect of depreciation methods

Some related lecture notes:

References

1. Riggs, J.L., Bedworth, D.D. and Randhawa, S.U. (1998) "Chapter 9: Depeciation and Income Tax Considerations" in Engineering Economics, McGraw-Hill
2. Depreciation video (straight line method): http://www.youtube.com/watch?v=c_B0NEHahhQ&feature=relmfu
3. Depreciation video (units of production method): http://www.youtube.com/watch?v=yg5CULLqtPg&feature=relmfu
4. Depeciation video (declining balance method): http://www.youtube.com/watch?v=W24_dVanprY&feature=relmfu

Breakeven analysis in Engineering Economics

The following discussion agenda is on Breakeven analysis (BEA) in Engineering Economics (EE):

1. Basic concetps related to BEA
• Profit, variable costs and fixed costs
2. Linear Break-even analysis (BEA)
• Break-even charts (re: Figure 12.3 of Riggs et al. (1998; pg 478).)
• Algebraic relationships
• Breakeven Point Alternatives (re: Figure 12.5 of Riggs et al. (1998; pg 482).)
• On dumping (re: Figure 12.7 of Riggs et al. (1998; pg 484).)
• Multiproduct Alternatives
• Multiple Alternatives
3. Nonlinear Break-even analysis
• Marginal revenue and profit
• Nonlinear break-even charts (re: Figure 12.12 of Riggs et al. (1998; pg 491).)
• Marginal cost  and average unit cost
4. Effects of inflation on break-even analysis

Some related notions in cost accounting:

Diagram 1: Cost behaviour

Diagram 2: Breakeven chart:

***************

A case study on Break-even analysis:

Mr Wong sells Pineapple computers in his shop. The selling price of the computer is $4,500 per unit and its product cost is $3,000 per unit. Mr Wong needs to incur a fixed cost of $50,000 per month.

Question 1: How many computers does Mr Wong have to sell per month in other to break even (ie not to lose money for his business)?

Question 2: If Mr Wong has a targeted yearly profit of $36,000, how many computers does Mr Wong have to sell in order to achieve his profit target?

Question 3: If the product cost of Pineapple computer increases by 10%, how many additional computers does Mr Wong have to sell in order to break even?

*********************


References

1. Riggs, J.L., Bedworth, D.D. and Randhawa, S.U. (1998) "Chapter 12: Breakeven Analysis" in Engineering Economics, McGraw-Hill
2. Cost-volume-profit analysis: http://en.wikipedia.org/wiki/Cost-Volume-Profit_Analysis
3. Break-even analysis: http://en.wikipedia.org/wiki/Break-even_analysis

Sensitivity Analysis in Engineering Economics

The following is a dicussion Agenda on Sensitivity Analysis (SA) in Engineering Economics (EE):

1. "What if" Analysis
• Possible results of an investment that increases fixed cost and reduce variable costs (re: Figure 11.1 Riggs et al. (1998, pg. 437).)
2.  Sensitivity of single proposal
• Single-parameter sensitivity, examined via a sensivity graph: (re: Figure 11.2 Sensitivity graph in Riggs et al. (1998, pg. 440) and Figure 11.4 Riggs et al. (1998, pg. 442).)
• Two-parameter sensitivity
3. Sensitivity of alternatives
4. Data considerations n Economic Analysis
• Sources of cost data
• Composition of cost traditionally used in manufacturing accounting system (re: Figure 11.11 in Riggs et al. (1998, pg. 455).)
• Sources of income data
• Life-cycle costing
• Postaudits

The following diagram captures the basic idea of sensitivity analysis:

Reference
Riggs, J.L., Bedworth, D.D. and Randhawa, S.U. (1998) "Chapter 11: Sensitivity Analysis" in Engineering Economics, McGraw-Hill

Benefit/ Cost Analysis in Engineering Economics

The following is a discussion  agenda on Benefit/Cost Analysis (BCA) in Engineering Economics:

1. BCA for Project Evaluation
• Basic formula on BCA
• BCA criteria
• Minimum investment
• Maximum benefit
• Aspiration level
• Maximum advantage of benefits over cost
• Highest B/C ratio
• Largest investment that has a benefit/cost ratio greater than 1.0
• Maximum incremental advantage of benfit over cost
• Maximum incremental benefit/cost ratio
• Largest investment that has an incremental B/C ratio greater than 1.0
2. Benefit/ Cost Comparisons
3. Irregularities in B/C comparions
• Lack of assistance in setting priorities
• Equal benefit to all
• Validations due to formula inputs
4. Quantification of project costs and benefits
• Imputed costs of existing assets used in a project
• Preliminary costs of investigation
• Spillover costs
5. Cost-effectiveness analysis
6. The discount rate concern
• Range of discount rate
• Social discount rate
7. Consumers' surplus
• Spillover costs

References

1. Riggs, J.L.,Bedworth, D.D. and Randhawa, S.U. (1998) Engineering Economics, McGraw-Hill
2. On imputed cost: http://www.investopedia.com/terms/i/imputed-cost.asp#axzz1nbxvPIVL

Human Computer Interaction in CISD

The following is a discussion agenda on Human Computer Interaction (HCI) in Contemporary Information Systems Development (CISD):

1. Principles for HCI
• Layout
• Content awareness
• Aesthetics
• User Experience
• Consistency
• Minimize User Effort
2. User Interface Design Process
• Use Scenario Development
• Interface Structure Design
• Interface Standards Design
• Interface Design Prototyping
• Interface Evaluation
3. Navigation Design
• Basic principles
• Types of navigation controls
• Messages
• Navigation Design Documentation
4. Input Design
5. Output Design

Lecture note diagram:

Reference
Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley

Class and Method Design in CISD

The following is a discussion agenda on Class and Method Design in Contemporary Information Systems Development (CISD):

1. An introduction to Class and Method Design
• Class, Objects, Methods, and Messages
• Encapsulation and Information Hiding
• Polymorphism and Dynamic Binding
• Inheritance
2. Design Criteria
• Coupling
• Cohesion
• Connascence
3. Object Design Activities
• Additional Specification
• Identify opportunities for reuse
• Restructure the design
• Optimize the design
• Map problem domain classes to implementation  languages
4. Constraints and contracts
• Types of constraints
• Elements of a contract
5. Method Specification
• General information
• Events
• Message passing
• Algorithm specification

References

1. Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley
2. On semantics: http://en.wikipedia.org/wiki/Semantics
3. On Object constraint language: http://en.wikipedia.org/wiki/Object_Constraint_Language

On Systems Design in CISD

The following discussion is on Systems Design in Contemporary Information Systems Development (CISD):
 

1. How to evolve from the Analysis Models to Design Models
• Factoring
• Partitions and Collaborations
• Layers
2. Packages and package diagrams
• Identify packages and create package diagrams
3. Design Strategies
• Custom development
• Packaged software
• Outsourcing

Reference
Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley

Behavioral Modeling in CISD

The following discussion agenda is on Behavioral Modeling in Contemporary Information Systems Development (CISD):

1. An introduction to Behavioral Models
2. Interaction Diagrams
• Objects, Operations, and Messages
• Sequence Diagrams
• Communication Diagrams
3. Behavioral State Machines
• States, Events, Transitions,Actions, and Activities
• Elements of a Behavioral State Machine and how to build a behavioral state machine

The following diagram indicates how various models, methodologies and notations are related to various domains in information systems development-associated activities:

References

1. Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley
2. UML tutorial: use case diagram, activity diagram and sequence diagram: http://www.youtube.com/watch?v=RMuMz5hQMf4&feature=related
3. UML tutorial (video) on sequence diagram: http://www.youtube.com/watch?v=SPwUtekrqS8&feature=related
4. UML tutorial (video): sequence and communication diagrams: http://www.youtube.com/watch?v=nyFctaNKW6c&feature=related

Structural Modeling in CISD

The following discussion agenda is on Structural Modeling in Contemporary Information Systems Development (CISD):

1. An introduction to Structural Models
• Classes, Attributes, and Operations Relationships
2. Class-Responsibility-Collaboration Cards
• Responsibilities and Collaborations
• Elements of a CRC Card
3. Class Diagrams
• Elements of a Class Diagram
• Object Diagrams
4. Creating CRC Cards and Class Diagrams
• Object Identification
• Building CRC Cards and Class Diagrams

References

1. Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley
2. Tutorial on class diagram: (video): http://www.youtube.com/watch?v=5Q0ZM6ODBHw&feature=related
3. On abstract class (video): http://www.youtube.com/watch?v=Wlj68dhQQtk&feature=related

Structuring Systems Requiremens in CISD

The following is a discussion agenda on Structuring Systems Requirements (Logic Modeling) in Contemporary Information Systems Developement (CISD):

1. Logic Modeling
• Deliverables and outcomes
2. Specific deliverables
• Structured English
• Decision Tables
• Decision Trees
3. Criteria for deciding among Structured English, Decision Tables, and Decision Trees
• Refer to Table 9-2 of Hoffer  et al. (2002; Chapter 9, pg. 294)

References

1. Hoffer, J.A., George, J.F., and Valacich, J.S. (2002) Modern Systems Analysis & Design, Prentice Hall.
2. On decision table: http://en.wikipedia.org/wiki/Decision_table
3. On Structured English: http://en.wikipedia.org/wiki/Structured_English
4. On pre- post- conditions: http://www.sqa.org.uk/e-learning/LinkedDS02CD/page_07.htm
5. Examples of pre- post conditions: http://www.sqa.org.uk/e-learning/LinkedDS02CD/page_09.htm
6. Implementing pre- post- conditions: http://www.sqa.org.uk/e-learning/LinkedDS02CD/page_10.htm#ImpPrePostConditions

Functional modeling in CISD

The following is a discussion agenda on Functional Modeling in Contemporary Information Systems Development (CISD):

1. Business Processing with activity diagrams
• Activity diagram elements and guidelines on their creation
2. Use Case Descriptions and Use Case Diagrams
• Types of Use Cases
• Elements of a Use Case Description
• Guidelines for creating Use Case Descriptions
• Use Case Diagrams
• Actor
• Association
• Use Case
• Subject Boundary
3. Creating Use Case Descriptions and Use Case Diagrams
• Identify the major Use Cases
• Expand the major Use Cases
• Confirm the major Use Cases
• Create the Use Case Diagram
4. Refining Project Sze and Efforts 

Some of the main ideas of functinal modeling are captured in the following digram, which is explained in lecture:

Reference
Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley

Rapid Application Development in CISD - a discussion agenda

The following discussion agenda is on Rapid Application Development for the subject of Contemporary Information Systems Development (CISD):

1. What is Rapid Application Development (RAD)?
• Classical Development Mistakes (re: "Table 19-1 Ten of McConnell's 36 Classic Development Mistakes" in Hoffer et al. (2002; pg. 647).)
• Basic components of RAD:
• tools,
• people,
• managment
• methodology
2. Martin's RAD life cycle (re: "Figure 19-6 Martin's four-phase RAD life cycle" in Hoffer et al. (2002; pg. 649).)
3. Advantages and disadvantages of RAD (re: "Table 19-2 Advantages & Disadvantages of RAD" in Hoffer et al. (2002; pg. 653).)

References

1. Hoffer, J.A., George, J.F., and Valacich, J.S. (2002) Modern Systems Analysis & Design, Prentice Hall.
2. RAD: http://en.wikipedia.org/wiki/Rapid_application_development
3. On Time boxing: http://en.wikipedia.org/wiki/Timeboxing
4. On MOSCOW rule: http://www.coleyconsulting.co.uk/moscow.htm

Automated tools for CISD - a discussion agenda

The following discussion agenda is on Automated Tools for Contemporary Information Systems Development (CISD):

1. An introduction to Computer-aided software engineering (CASE) tools
• Objectives of CASE  (re: Table 4.1 of Hoffer et al. (2002, pg. 95).)
2. The organizational forces for and against the adoption of CASE tools
3. How CASE tools are used to support systems development
• The relationship between CASE tools and the development life cycle (re: Table 4.3 of Hoffer et al. (2002, pg. 100).)
• Traditional Systems Development vs CASE-based  Development (re: Table 4.7 of Hoffer et al. (2002, pg. 101).)
4. Typical components of a CASE environment: upper CASE tools, lower CASE tools, cross-life-cycle CASE tools and the CASE repositories (re: Figure 4.9 of Hoffer et al. (2002, pg. 106).)
5. Functions of CASE tools

References

1. Hoffer, J.A., George, J.F., and Valacich, J.S. (2002) Modern Systems Analysis & Design, Prentice Hall.
2. CASE tools: http://en.wikipedia.org/wiki/Computer-aided_software_engineering

Requirements Determination in CISD - an agenda for review

The following is a discussion agenda on Requirements Determination in Contemporary Information Systems Development:

1. An introduction to Requirements Determination
• Requirements Definition
• Determining Requirements
2. Requirements Analysis Techniques
• Business Process Automation
• Business Process Improvement
• Business Process Reengineering
3. Requirement-Gathering Techniques
• Interviews
• Joint Application Development
• Questionnaires
• Document Analysis
• Observation

The following diagram captures some of the considerations of Requirements Determination and modelling:

Reference
Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley

OO Systems Analysis & Design n CISD - discussion agenda

There following discussion agenda is on Object-Oriented (OO) Systems Analysis and Design for Contemporary Information Systems Development:

1. Basic characteristics of OO Systems
• Classes and objects,
• Methods and messages,
• Encapsulation and information hiding
• Inheritance
• Polymorphism and dynamic binding
2. The Unified Modeling Language
• Structure Diagrams
• Class Diagrams
• Object Diagrams
• Package Diagrams
• Deployment Diagrams
• Component Diagrams
• Composite Structure Diagrams
• Behavior Diagrams
• Activity Diagrams
• Interaction Diagrams
• State Machines
• Use Case Diagrams
• Extension Mechanism
3. OO Systems Analysis and Design
• Use-case driven
• Architecture centric
• Iterative and incremental
• The Unified Process
4. A minimalist approach to OO Systems Analysis and Design
• Benefits of OO Systems Analysis and Design
• Extensions to the Unified Process

 References

1. Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley
2. UML tuotorials: http://www.tutorialspoint.com/uml/
3. UML OMG: http://www.omg.org/spec/UML/
4. On Unified Process: http://en.wikipedia.org/wiki/Unified_Process
5. On polymorphism (video): http://www.youtube.com/watch?v=P8afwSpKfwA&feature=related
6. On "Relationships" in OO (video): http://www.youtube.com/watch?v=r0-zVgq-cVo&feature=related

Introduction to SA&D in CISD

The discussion agenda on Introduction to Systems Analysis and Design in Contemporary Information Systems Development (CISD) is as follows:

1. An introduction to the Systems Development Life Cycle (SDLC):
• Planning
• Analysis
• Design
• Implementation
2. Systems Development Methodologies
• Structured Design
• Rapid Application Development
• Agile Development
3. How to select an appropriate development methodology in a specific situation
4. Project team roles and skills
• Business Analyst
• Systems Analyst
• Infrastructure Analyst
• Change Management Analyst
• Project Manager

The following diagram captures the main topic areas covered in this subject:

References

1. Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley
2. On SDLC: http://en.wikipedia.org/wiki/Systems_Development_Life_Cycle
3. On Agile software development: http://en.wikipedia.org/wiki/Agile_software_development
4. On software prototyping: http://en.wikipedia.org/wiki/Software_prototyping

Contemporary Information Systems Development (CISD) - notes

The teaching  plan of Contemporary Information Systems Development (CISD) is as follows:

1. Introduction to Systems Analysis and Design (re: Dennis et al. (2005; Chapter 1).)
2. Introduction to Object-oriented Systems Analysis and Design with UML (re: Dennis et al. (2005; Chapter 2).)
3. Requirements Determination (re: Dennis et al. (2005; Chapter 5).)
4. Automated Tools for Systems Development (re: Hoffer et al. (2002, Chapter 4)
5. Rapid Application Development (re: Hoffer et al. (2002, Chapter 19)
6. Functional Modeling (re: Dennis et al. (2005; Chapter 6).)
7. Structuring System Requirements: Logic Modeling (re: Hoffer et al. (2002, Chapter 9)
8. Structural Modeling  (re: Dennis et al. (2005; Chapter 7).)
9. Behavioral Modeling (re: Dennis et al. (2005; Chapter 8).)
10. On Systems Design (re: Dennis et al. (2005; Chapter 9).)
11. Class and Method Design (re: Dennis et al. (2005; Chapter 10).)
12. Human Computer Interaction Layer Design (re: Dennis et al. (2005; Chapter 12).)

References

1. Dennis, A., Wixom, B.H. and Tegarden, D. (2005) Systems Analysis and Design with UML Version 2.0, Wiley
2. Hoffer, J.A., George, J.F., and Valacich, J.S. (2002) Modern Systems Analysis & Design, Prentice Hall.

Present Worth Analysis in Engineering Economics

On this topic, I mainly provide an example of how to use the Excel npv function to calculate Present  Worth. This is shown in the following exhibits:

Exhibit 1: In this example, the =npv function covers period of net cash flow from Year 1 to Year 5; then the formula add the Year 0 (Now) figure (which is a negative figure to show initial capital outlay for a project)

Exhibit 2: Online help information from Excel (note that in the =npv function, you need to provide the variable of interest rate [or cost of capital] and that the period is from year 1 to end of the project period:

References

1. On Net Present Value: http://en.wikipedia.org/wiki/Net_present_value
2. Panneerselvam, R. (2001) "Chapter 4: Present Worth Method of Comparison" Engineering Economics, Prentice-Hall of India.
3. Present value (video lecture): http://www.youtube.com/watch?v=6oCPsXb74FQ&feature=related

Rate of Return Analysis in Engineering Economics

Rate of return analysis in Engineering Economics covers the following specific topics:

1. Basic notions of rates of return
• Mimimum aceptable rate of return
• Internal rate of return (IRR)
2. Calculations of IRR
• Single, simple investment
3. Consistencyof  IRR with other economic comparison methods (note Figure 5.4 "Present worth of cash flow for the proposal ... at different interest rates" in Riggs et al. (1998, pg. 171).)
4. IRR misconceptions
• ranking alternatives by individual IRR values (note Figure 5.5 "relationship of net worth and different discount rates" of Riggs et al. (1998, pg. 178).)
5. Nonsimple investment - more than one possible rate of return (note Figure 5.6 "Net present worth of a proposal with multiple roots for PW" of Riggs et al. (1998, pg. 182).)
6. Project Balance Method
7. Alternatives with unequal lives
8. Cost of capital concepts

Related Excel function of IRR
The following exhibits show how to use the IRR function of Excel to calculate internal rate of return:

Exhibit 1: Spreadsheet figures and comments (note that the range of irr covers figures from time 0[now] to end of the period [year 5])

Exhibit 2: Online Excel help information on IRR

A class discussion question:

References

1. Riggs, J.L., Bedworth, D.D. and Randhawa, S.U. (1998) "Chapter 5: Rate of Return Calculations" Engineering Economics, Mcgraw-Hill.
2. Cost of capital: http://www.investopedia.com/terms/c/costofcapital.asp#axzz1moqEvtak
3. Internal rate of return (video): http://www.youtube.com/watch?v=Mr8dpR0XmBc&feature=related

Organizational Dissonance theory - a study agenda

I note the following study agenda to learn the Organizational Dissonance theory of Koolhass (1982):

1. Introduction
• A review of the relations between technology and structure
2. A review of key topic areas:
• technological inhomogeneity,
• organizational harmony
• conflict and collaboration
• conventions and order in organizations
• Organisational aspects (i.e. social  and functional) and analytical orientation (i.e. katascopic and anascopic (Figure 4.1 of Koolhass (1982, pg. 64).)
• Partial inclusion at different levels and
• Authority outside and inside the organization
• Received or percceived problems as well as the complexity of the problem
• The purpose and goals of organization
3. An elaboration of the dissonance theory (re: Figure 4.5 "Structure of the aspects of an organization in Koolhass (1982, pg. 79) and Figure 4.6 "Dissonance at the level of the individual" in Koolhass (1982, pg. 80) and Figure 4.8 "The 3 orientations of organizational dissonance"  in Koolhass (1082, pg. 83).)
• The analytical orientation
• The functional and the social aspects
4. The nature of technology
• inputs, outputs and transformation
5. Cognitive structure (re: Figure 4.11 "Cognitive structure" in Koolhass (1982, pg. 93)
• The individual's ability to handle complexity
• Systematic vs intuitive style of individual decision-making
• Needs vs ability
• Generalizing vs individualizing problem solving
6. Cognitive structure-technology dissonance
• under-utilization dissonance
• overload dissonance
• quantitative dissonance
• structural dissonance
7. Transformation-task structure dissonance
8. Other considerations
• Role and control structure
• Norms and values
9. Normative dissonance (re: Figure 4.15 "Dissonances between personal norms and values and the control structure" in Koolhass (1982, pg. 119).)
10. Task structure-control structure dissonance (re: Figure 4.16 "Dissonances  between task structure and control structure" in Koolhass (1082, pg. 123).)
• discretion dissonance, flexibility dissonance, normative ambiguity dissonance, autonomy dissonance
11. Technological imperative and multi-level equilibrium
• intra-and inter-level dissonances
12. Interdepartmental task structure dissonances
13. Interdepartmental control structure dissonances

Koolhass (1982) work provides a detailed elaboration on the organizational dissonance theory.


Reference
Koolhass, J. (1982) "Chapter 4: Towards a Theory of Organizational Dissonance", Organization Dissonance and Change, Wiley.

Rich picture building and systems theories - a case study

Ho, J.K.K. and Jackson, M.C. (1987) was a case study based on my MA thesis at the University of Hull in 1986. The basic essay structure is as follows:

1. Introduction
2. Building up a rich picture of a problem situation - theory
3. Building up a rich picture of the situation: A case study  of thornton Printing Company
• Introduction
• Environment of Thornton Printing Company
• Structure of Thornton Printing Company
• Process
• Perceptions of key personnel
• Summary of Ric Picture
4. Thornton's Quality Management Program studied as an attempt to address the problem situation
5. Conclusion

References

1. Ho, J,K.K. and Jackson, M.C. (1987) "Building a 'rich picture' and assessing a 'quality management' program at Thornton Printing Company, Cybernetics  and Systems 18, pp. 381-405.
2. MA thesis (Ho, J.K.K., 1986), the University of Hull, UK:
• Introduction: https://www.facebook.com/media/set/?set=a.434605042089.225850.713727089&type=3
• Part 1 (Literature review): https://www.facebook.com/media/set/?set=a.437910752089.228448.713727089&type=3
• Part 2: Building a rich picture: https://www.facebook.com/media/set/?set=a.440456237089.230285.713727089&type=3
• Part 3 (An analysis of TQM program): https://www.facebook.com/media/set/?set=a.440744107089.230517.713727089&type=3
• Part 4 (Conclusion): https://www.facebook.com/media/set/?set=a.440780727089.230549.713727089&type=3
• Part 5 (Lessons learned): https://www.facebook.com/media/set/?set=a.440510747089.230335.713727089&type=3

The Postmodern Systems Approach - a discussion agenda

Based on Jackson (2000; Chapter 9),  I note the following items for review of the Postmodern Systems Approach:

1. Introduction
• An ironic and playful stance that fosters diversity
• Make use of the methods of deconstruction and genealogy
2. Specific Postmodern Systems Approaches
• Participatory appraisal of needs and the development  of action (PANDA) of Taket and White
• Deconstructive strategies (re: Table 9.4 of Jackson (2000, pg. 342).)
3. The constitutive rules underlying the Postmodern Systems Approach (re: Table 9.5 of Jackson (2000, pg. 348).)
4. Critique of the Postmodern Systems Approach

Reference
Jackson, M.C. (2000) "Chapter 9: The Postmodern Systems Approach", Systems Approaches to Management, Kluwer Academic/ Plenum Publishers

The functionalist systems approach - a discussion agenda

Based on Jackson (2000), I note the following discussion agenda on the Funtionalist Systems Approach as follows:

1. Introduction
• Main metaphors used: machine, organism, brain, flux and transformation
2. Main Functional Systems Approaches
• Systems thinking of Barnard: organizations as oc-operative systems
• Contingency Theory of Kast and Resenweig
• Socio-technical Systems Theory of Emery, Rice and Trist
• Hard Systems Thinking and affiliated approaches
• Operational Research
• Systems Analysis of Miser and Quade
• System Dynamics Methodology of Forrester and Wolsenholme
• Organizational Cybernetics and the Viable System  Model of Beer
• Living Systems Theory of Miller
• Autopoiesis o Maturana and Varela
• Complexity Theory of Stacey
3. The constitutive rules underlying the Functional Systems Approach (re: Table 6,3 of Jackson (2000, pg. 203)
4. Critique fo the Functional Systems Approach

Try to read Chapter 6 of Jackson (2000) and then do further readings based on the references noted in that chapter to develop a deeper understanding of this approach.


Reference
Jackson, M.C. (2000) "Chapter 6: The Functionalist  Systems Approach", Systems Approaches to Management, Kluwer Academic/ Plenum Publishers

Basic costing notions for Engineering Economics

The following basic notions in Costing are relevant for the study of Engineering Economics:

1. Cost unit: E.g. 1: For Selling, cost unit can be customer call; E.g. 2: For Education, cost unit can be enrolled student
2. Cost behaviour: fixed cost, variable cost, and semi-variable cost
3. Opportunity cost
4. Sunk cost
5. Relevant cost analysis

The Emancipatory Systems Approach - a discussion agenda

Based on Jackson (2000; Chapter 8), I provide the following discussion agenda on the Emancipatory Systems Approach:

1. Basic ideas underlying the Emancipatory Systems Approach
• Suspicious of the current social order
• To emancipate the oppressed as a result of the current social order
2. Specific Emancipatory Systems Approaches/ ventures
• Critical Management Science
• Critical Systems Approach, based on Habermas' work
• Interpretive Systemology of Fuenmayor
• Critical Pedagogy of Freire
• The Moral Community thinking of MacIntyre
• The Ecological Sustainability thinking of Capra
• Community Operational Research
• Discursive rationality
• Team Syntegrity of Beer
• Critical Systems Heuristics and Boundary Critique of Ulrich
• The oblique use of Systems Methods of Jackson and Flood
3. The constitutive rules underlying the Emancipatory Systems Approach (re: Table 8.3 of Jackson (2000, pg. 329)
4. Critique of the Emancipatory Systems Approach

Reference
Jackson, M.C. (2000) "Chapter 8: The Emancipatory Systems Approach", Systems Approaches to Management, Kluwer Academic/ Plenum Publishers

On the interpretive systems approach - a review agenda

Based on Jackson (2000), I produce the following review agenda on the interpretive systems approach (also known as soft systems thinking):

1. Introduction
• The "root metaphor" of contextualism
• The lack of a coherent interpretive systems theory
2. Specific interpretive systems approaches
• Interactive Management of Warfield
• Social Systems Design of Churchman
• Strategic Assumption Surfacing and Testing (SAST) methodology of Mason and Mitroff
• Social Systems Sciences of Ackoff
• Soft Systems Methodology of Checkland
• Soft Systems Thinking of Senge
• Soft Operational Research
3. Constitutive rules underlying the interpretive systems approach (re: Table 7.5 of Jackson (2000; pg. 282)
4. Critique of the interpretive systems approach

Overall, the Jackson (2000; chapter 7) provides a very good introductuon and review on the interpretive systems approach. From Jackson (2000), you could locate the relevant readings to pursue your study on this approach.


Reference
Jackson, M.C. (2000) "Chapter 7: The Interpretive Systems Approach", Systems Approaches to Management, Kluwer Academic/ Plenum Publishers

On Inquiry System - a discussion note

Based on Mitroff and Linston (1993), I provide the following agenda to study "Inquiry System" (IS), which is a system to produce valid knowledge. The notion is based on a comprehensive of philosophy on this topic.

1. The need to strengthen our problem-solving ability in today's environment and the notion of an inquiry system (IS)
2. First IS mode - based on agreement
3. Second IS mode - based on formula
4. Third IS mode - based on multiple realities
5. Fourth IS mode - based on conflict
6. Fifth IS mode - based on unbounded systems thinking

The textbook could be a bit abstract to some business and information systems students as it deals with some profound philosophical issues. It is very useful for Business Research and Systems Thinking studies. Thus, you need to be patient and probably need some experienced lecturers to guide you when studying this book of Mitroff and Linstone (1993).


References

1. Mitroff, I.I. and Linstone, H.A. (1993) The Unbounded Mind, Oxford University Press
2. Mitroff, I. (1998) Smart Thinking for Crazy Times: The Art of Solving the Right Problems, Berrett-Koehler Publishers, Inc.

Academic references on Taxation

From time to time, some Finance and Accounting students like to investigate topics in Taxation for their Independent Study and Dissertation works. The following references are relevant:

1. Advances in Taxation (a ebook from Elsevier)
2. Journal of International Accounting, Auditing & Taxation, published by Elsevier

Articles on Taxation also come up in Accounting & Finance  and Economic journals, such as Fiscal Studies from Blackwell Publishing and Public Finance Review from Sage Publications, time to time; try to also do some e-library search with its search engine.

Equivalent annual worth analysis in Engineering Economics

Based on Riggs et al. (1998), I note the following topics in Equivalent annual worth analysis (EAWA) in Engineering Economics:

1. When to use EAWA
• The inclination to view a year's gains and lossess as a yardstick of progress.
• For complementary comparisons to improve analysis clarity.
2. On the capital recovery factor (which converts a lump sum to an equivalent annuity) and capital recovery calculations
3. Consideration of asset life
• Definitions of asset life
• Comparisons of assets with equal and unequal lives
• The case of perpetual life
4. Use of a sinking fund: i.e. the sinking fund factor is applied to compute the annuity required to accumulate a certain future amount
5. Equivalent uniform payments when interest rates vary
6. Annuity contract for a guaranteed income: e.g. for a retirement plan with a guaranteed income

Also note the related Excel function as illustrated in the following exhibits:

Exhibit 1: Use the =pmt function to calculate annuity in Excel; in this case interest rate is 10%; the number of payment is 5 and, finally, the present value is $100; the answer from the formula is -26.38

Exhibit 2: Information about the PMT formula in Excel  from the online help of Excel (extracted)

Exhibit 3: To verify that the figure of 26.38 is correct withe the compound interest rate tables of the subject of Engineering Economics

References

1. Riggs, J.L., Bedworth, D.D. and Randhawa, S.U. (1998) "Chapter 4: Equivalent annual-worth comparisons" Engineering Economics, McGraw-Hill.
2. On annuity (video): http://www.youtube.com/watch?v=awvy-UrqZjM&feature=related

On Brand Equity Management System - a discussion agenda

Based on Keller (2003), I provide the following agenda for the discussion of Brand Equity Management System:

1. The model of the Brand Value Chain (re: Figure 8-1 of Keller (2003, pg. 391)
• Value stages and program multiplier
2. Design Brand Tracking Studies
• What to track
• How to conduct brand tracking studies
• How to interpret tracking studies' findings
3. Stepts to establish a Brand Equity Management System
• Step 1: Prepare a Brand Equity Charter
• Step 2: Formulate a Brand Equity Report
• Step 3: Establish Brand Equity Responsibilities

Reference
Keller, K.L. (2003) "Chapter 8: Developing a Brand Equity Measurement and Management System", Building, Measuring, and Managing Brand Equity, Prentice Hall.

Integrated marketing communications for brand equity building

Based on Keller (2003), I provide the following agenda for discussion of integrated marketing communications for brand equity building:

1. A review of the the information processing model of communications
2. Marketing communication options:
• Advertising, promotion, event marketing and sponsorship, public relations and publicity, personal selling
3. Formulating an integrated marketing communication (IMC) program
• Mix and match communication options
• Using IMC choice criteria
• Follow general marketing communication guidelines (re: Figure 6-15, pg. 335 of Keller (2003).)

Try to study Keller (2003; ch. 6) in details and come up with your own examples for the various notions noted in the agenda here.



Reference
Keller, K.L. (2003) "Chapter 6: Integrating Marketing Communications to Build Brand Equity", Building, Measuring, and Managing Brand Equity, Prentice Hall.

From brand elements to brand equity

Based on Keller (2003), I provide the following agenda for examining brand elements brand equity building:

1. How to choose brand elements:
• Criteria: memorability, meaningfulness, likability, transferability, adaptability, and protectability
2. Options for brand elements
• Brand names, URLs, Logos and symbols, characters, slogans, jingles, packaging
3. A synthesis (re: Figure 4-17, on page 218)

Try to read Keller (2003; chapter 4) and come up with your own examples when reviewing the various concepts listed in the discussion agenda.



Reference
Keller, K.L. (2003) "Chapter 4: Choosing Brand Elements to Build Brand Equity", Building, Measuring, and Managing Brand Equity, Prentice Hall.

Future worth analysis in Engineering Economics

The basic ideas of "Future Worth Analysis" (FWA) in Engineering Economics are as follows:

1. When comparing alternatives, the future worth of alternatives are computed; the alternative with the maximum future worth (net) or with the minimum future worth of net cost will be chosen as the best choice.
2. Such an analysis could be more relevant to decision-makers if the accumulated amount at a future date is a kind of milestone in a financial plan.
3. FWA is also used for evaluating the effects of inflation.

Please refer to the textbook for the formula of Future Worth. Also note the following illustration on how to use the Excel function of =fv to calculate future values.

Exhibit 1: In this case, interest rate is 10%; number of period is 4 and the annuity amount (A) is $100; the fv function comes up with an answer of -464.10

Exhibit 2: Online help information of Excel on the FV function

Exhibit 3: Double check the FV figure with the compound interest rate tables from the subject of Engineering Economics (in this case from A(annuity) to F (future value):

References

1. Panneerselvam, R. (2001) "Chapter 5: Fugure Worth Method" in Engineering Economics, Prentice Hall of India
2. On future value: http://en.wikipedia.org/wiki/Future_value

Time value of money in Engineering Economics

Based on Riggs et al. (1998; Ch. 2), I note the following agenda for the discussion of "The value of money" in Engineering Economics:

1. Interest and the time value of money
2. Reasons for interest
3. Simple interest, compound interest (including nominal interest rates, effective interest rates, continuous compounding
4. Time-value equivalence
5. Compound-interest factors
• Conversion symbols
• Development of interest formulas (e.g. compound-amount factor, present-worth factor, sinking fund factor [uniform series], series compound-amount [uniform series], capital recovery factor [uniform series], etc)
• Midyear accounting convention (ie cash flows are assumed to occur at the end of a time period)
6. Cash flow diagrams
7. Calculation of time-value equivalences

References

1. Riggs, J.L., Bedworth, D.D. and Randhawa, S.U. (1998) Engineering Economics, McGraw-Hill
2. On time value of money: http://en.wikipedia.org/wiki/Time_value_of_money
3. On time value of money (video): http://www.youtube.com/watch?v=CQ8NTSJxoGE&feature=related