Purchase Solution

make an offer or continue the interviewing process

Not what you're looking for?

Ask Custom Question

14. BK books is an online retailer that also has 10,000 â??bricks and mortarâ? outlets worldwide. You are a risk â?" neutral manager within the Corporate Finance Division and are in dire need of a new financial analyst. You only interview students from the top MBA programs in your area. Thanks to your screening mechanisms and contacts, the student you interview ultimately differ only with respect to the wage that there are willing to accept. About 5 percent of acceptable candidates are willing to accept a salary of $60,000, while 95 percent demand a salary of 110,000. There are two phases to the interview process that every interviewee must go through. Phase 1 is the initial one-hour on-campus interview. All candidates interviewed in Phase 1are also invited to Phase 2 of the interview, which consists of a five-hour office visit. In all, you spend six hours interviewing each candidate and value this time at $750. In addition, it costs a total of 4,250 in travel expenses to interview each candidate. You are very impressed by the first interviewee completing both phases of BK books interviewing process, and she has indicated that her reservation salary is 110,000. Should you make her an offer at that salary or continue the interviewing process? Explain.

Purchase this Solution
Solution Summary

Shows how to take an economic decision given expected costs and expected benefits for a risk neutral manager.

Solution Preview

The candidate has cleared both the rounds - the initial one-hour on-campus interview and a five-hour office visit. Since, she is indicating a reservation price ...

Purchase this Solution
Free BrainMass Quizzes
Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Benefits/Drawbacks of Team Interviews

    (6) The HR Director then makes an offer of employment, OR denies the candidate (in which case the #2 candidate is interviewed by the HR Director). What might be a benefit of this process? What might be a drawback?

  • When interviewing an applicant for a sales job, management o

    434822 When interviewing an applicant for a sales job, management ordinarily should be interested in complete answers to the following three questions: How badly does the applicant want or need the job?

  • Evaluate Behavioral Based Interviewing with Intelligence Tests

    Through the Job interview process, the potential employee is evaluated by the employer so that the employer can establish their suitability in the job position that is on offer.

  • Interview assessments - Organizational Psychology

    Interviews make it transparent for the job candidates to learn what kind of questions employers are looking to find answers to. Interviewing process is often referred to as screening process.

  • Interviewing techniques in qualitative study

    If you are using several interviewer, offer training for the interviewers so that they are consistent in their interviewing style ie. words used, prompts used /allowed, recording consistency .

  • Social Psychology: Heuristics and/or biases

    I would make an effort to persuade the colleague to try to reason about her/his "pre-judgment" and make her/him realize the error made in simply following readily available or represented information.

  • Salary Negotiation Scenarios

    The interviewer then stated that it was their company policy to not continue any candidates in the selection process if they did not disclose their salary requirements.

  • Cultural differences and recruiting and interviewing

    197768 Cultural Differences and Recruiting and Interviewing How do cultural differences affect recruitment and interviewing strategies? Do you have any experiences or best practices to share?

  • Interviewing suggestions

    as " Where do you see yourself in five years," and providing feedback to candidates after an interview to offer input on strengths and weaknesses.

View More Related Solutions