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A Day in the Life of a CEO (Scenario)

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A Day in the Life of a CEO (Scenario)
Carly spent the day "shadowing" her uncle Dave, who is the CEO of a large consumer electronics company. Carly is a business management major at a local college, and one of her class assignments was to interview a business manager. When she approached her uncle about the assignment, he invited her to follow him around for a day to observe the typical business activities of a top manager. She noted that he spent the day dealing with a variety of issues. First he met with a division manager who was having difficulty achieving production targets due to his inability to motivate the employees. Then they visited the assembly line to inspect a new machine designed to increase production output. Uncle Dave had once been a production engineer, and the department supervisor and assembly workers were impressed by his knowledge of the new machine's operating specifications. At lunch they met with a group of local CEOs from other companies where everything from the new hiring laws to the latest economic reports was discussed. After lunch, Carly attended a meeting where the five-year strategic plan for the entire company was being evaluated. For her uncle it was a typical day in the life of a CEO, but for Carly it had been a day full of information that she could use for her class assignment.
-The division manager's inability to motivate his employees may be a sign of weak ________ skills.


Definitions:

TVC

The total expenses a firm incurs that increase or decrease with the level of output, essentially another term for total variable costs with a rephrased definition.

AVC

Average Variable Cost, which is the total variable costs divided by the quantity of output produced, reflecting the variable cost per unit.

MC

Marginal Cost, the increase or decrease in the total cost of a production run for making one additional unit of an item.

AFC

Average Fixed Cost represents the fixed expenses of a firm divided by the quantity of output produced.

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