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Buenas Diaz – status quo or pivot!
Monika Hudson and Frank Ohara
Uh, oh!
As she eyed the pile of mail, Flora noticed one of the envelopes
bore an official City of Houston seal.
With a feeling of unease, she pushed aside everything else to
open it. Half of what she scanned did
not register, but the words “cease and desist” and “$5,000 per
day fine” got through. A closer read
revealed a City order to immediately remove her restaurant’s
exterior loudspeakers and sidewalk
tables as well as initiate major building repairs. Groaning, Flora
realized she was going to need her
family’s financial help. But, how should she approach that
“ask,” given how angry her older brother
was with her?
History of a family food business
Juan and Martha Diaz came to Houston, Texas, from
Guadalajara, Mexico, in the early 1930s.
They opened the first mechanized tortilla factory in their new
city. In 1936, they expanded the
tortilla factory by adding a small restaurant they named Buenas
Diaz.
In the early 1950s, Juan and Martha’s daughter Marisol helped
her parents further expand
with the production of a Buenas Diaz line of tortillas that were
sold in supermarkets in the
Houston area. Their popularity grew, and the family was able to
subsequently place their
products in supermarkets throughout Southern Texas. Marisol
and her parents, along with
their Buenas Diaz restaurant and products, became well-known
fixtures in the Houston
Mexican and Anglo communities.
In the 1970s, while it continued to manufacture and distribute
tortillas, the company began
to produce a range of salsa products, taco shells, and tortilla
chips. In addition, its locally
famous restaurant continued to offer an array of Mexican
dishes. The Buenas Diaz restaurant
prepared its dishes from scratch, using primarily local
ingredients. Designed to offer a
fiesta for the senses, the restaurant resembled a Mexican border
town café with a vibrant
and contemporary décor. It featured an extensive variety of
dishes including traditional
enchiladas, burritos, and tacos as well as innovative items such
as fresh fish, and
shrimp fajitas. During this period, the Buenas Diaz restaurant
regularly attracted 500-700
customers daily.
The theme of every Buenas Diaz dish continued to be freshness,
a characteristic underlined by
the placement of a replica of the family’s original tortilla
maker, known as “El Machino,” in the
center of the restaurant’s dining area. El Machino helped create
a fun atmosphere for everyone,
providing entertainment for children and enabling guests at this
full-service restaurant (FSRs) to
watch the tortilla-making process as they enjoyed their meals.
The restaurant industry
Buenas Diaz was one star in an exploding dining market. As of
2014, Mexican restaurants
constituted 8 percent of the US national restaurant landscape
(CHD Experts, 2014). US
consumers spent more than $39 billion at Mexican restaurants
annually, and the average
Mexican restaurant earned more than $700,000 in revenue each
year (CHD Experts, 2014).
Of the approximately 54,000 Mexican restaurants in operation,
roughly 56 percent were
classified as FSRs with wait staff and table service.
The names of the institutions and
individuals involved have been
disguised, however the material
facts of the case are authentic.
This case was prepared by the
authors and is intended to be used
as a basis for class discussion.
The views presented here are
those of the authors based on field
research and professional
judgment and do not necessarily
reflect the views of
The Case Journal. The names of
the individuals, the firm, and its
location have been disguised to
preserve anonymity.
An earlier compact version of this
case was presented by Aubrey
Leung at the Baylor Student Case
competition in January 2014.
Disclaimer. This case is written
solely for educational purposes
and is not intended to represent
successful or unsuccessful
managerial decision making.
The authors may have disguised
names; financial, and other
recognizable information to
protect confidentiality.
Monika Hudson is an Associate
Professor at the Department of
Entrepreneurship & Innovation,
University of San Francisco,
San Francisco, USA.
Frank Ohara is a Professor and
the Department Chair at the
Department of Finance,
University of San Francisco,
San Francisco, USA.
PAGE 494 j THE CASE JOURNAL j VOL. 13 NO. 4 2017, pp.
494-512, © Emerald Publishing Limited, ISSN 1544-9106 DOI
10.1108/TCJ-01-2017-0006
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Independently owned as opposed to franchised restaurants
dominated the industry;
approximately 74 percent of the nation’s Mexican restaurants
fell into the independently
owned category. More than 36 percent of US Mexican
restaurants were located in the states
of California and Texas, followed by Florida, New York, and
Illinois. Table I overviews
Mexican restaurants’ penetration rates as a percentage of the
total restaurant market in
various states.
CHD FIND (2014) stated that 33 percent of the Mexican
restaurants in its database had an
average check range of $10-$15, with another 24 percent with
an average check range of
$5-$7. This would indicate that a majority of Mexican
restaurants, even full-service ones,
offered a range of more affordable plate options compared to
non-Mexican full-service
eating establishments.
Buenas Diaz and the Mexican food industry
Given the size of the growing Latino population in the USA,
one might expect that these
consumers would serve as a built-in audience for Mexican food.
Indeed, Latinos were among
the largest consumers of these products (CHD Experts, 2014).
However, what helped grow
Mexican food into a multi-billion-dollar revenue category was
the fact that it had become
mainstream. For example, any number of US consumers did not
even think about the fact that a
significant portion of their grocery purchases were actually
classified as Mexican foods
(e.g. tortilla chips). Increasingly, as a means of growing sales,
manufacturers had struck a
balance between offering products that were perceived as
“authentic” by hardcore Mexican
food fans and concurrently offering sauces and baked goods that
were appealing to the large
portion of the US population that was simply interested in
“adding a little spice (but not too
much) to their plate” (Mintel, 2011).
2013 statistics related to supermarket sales of Mexican foods
and sauces are summarized
in Table II.
Table II Data table: supermarket categories by dollar, unit sales
Categories Dollar sales Dollars sales % Chg YAgo Unit sales
Unit sales % Chg YAgo
Mexican food $1,699,297,000 1.81 806,995,800 0.79
Mexican sauces $1,011,285,000 1.18 384,365,400 0.67
Note: Top supermarket product categories by dollar sales and
unit sales for the 52 weeks ending June 16, 2013
Source: Infoscan Reviews (2013), a Chicago-based market
research firm
Table I State by Mexican menu type – percent of total
Largest % of market
TX – Texas 16.7
NM – New Mexico 14.1
CA – California 13.8
AZ – Arizona 13.6
CO – Colorado 12.2
Smallest % of market
CT – Connecticut 3.6
MA – Massachusetts 3.1
PA – Pennsylvania 2.9
VT – Vermont 2.9
ME – Maine 2.6
Source: Available at: www.chd-expert.com/resource-
center/2014-mexican-restaurant-industry-land
scape♯sthash.gFmEaWhY.dpuf (accessed July 20, 2015)
VOL. 13 NO. 4 2017 j THE CASE JOURNAL j PAGE 495
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www.chd-expert.com/resource-center/2014-mexican-restaurant-
industry-landscape♯sthash.gFmEaWhY.dpuf
www.chd-expert.com/resource-center/2014-mexican-restaurant-
industry-landscape♯sthash.gFmEaWhY.dpuf
With 2015 annual supermarket sales of $15 million, Buenas
Diaz food products represented
less than 1 percent of the combined Mexican food and sauces
supermarket categories,
but the family believed the company could increase its market
share in both areas to at
least 5 percent by 2020. Towards that end, the two oldest
siblings concentrated their
efforts on enhancing supermarket shelf space and geographic
markets outside of
their established Texas base.
The family firm owners
Over the last ten years, Carlos, the eldest of the Diaz siblings,
had overseen manufacturing and
Texas distribution activities for the family’s Buenas Diaz food
production and distribution firm.
Company revenues increased from $2.5 million in 2000 to
almost $15 million in 2015, in line
with the overall growth in US consumption of Mexican-themed
food products. Carlos credited
his management skills with having shepherded the family’s
business activities from a small but
beloved restaurant to an emerging food production powerhouse.
A large man with an easy laugh, at 51, Carlos had won countless
awards for his business savvy
and community investment in the greater Houston area.
Although he shared ownership of the
building that housed his parents’ restaurant with his two
younger sisters, Carlos had not been
involved in its day-to-day operations for at least ten years,
preferring to concentrate on the
faster-growing food production side of the family business.
After an argument about a year ago,
Carlos had also not had direct contact with his sister, Flora.
Maria, the middle of the Diaz siblings, worked closely with
Carlos on product line development
and retail market placements. Within the family firm, the 45-
year-old’s role was to develop and
expand the salsa, tortilla, taco, and tortilla chip lines into new
markets as well as to oversee
national distribution of all Buenas Diaz food products outside of
Texas. Maria provided Flora with
opportunities to work on expanding the company’s distribution
into targeted markets, particularly
in the Pacific Northwest and New England areas.
A small, nervous woman, Maria got along with Flora as well as
with Carlos. Although she tried to
remain neutral, Maria often sided with Carlos when it came to
making collective decisions about
local and national production and distribution matters.
At 34, Flora was the youngest of the Diaz children. She ran the
Buenas Diaz restaurant out of the
family-owned building and helped her older sister with targeted
national distribution efforts. It had
been Flora’s idea to place “El Machino” in the restaurant, where
it was so popular.
Family tensions
Marisol passed away in 2005 and her three children, Carlos,
Maria, and Flora, assumed control of
the family empire. After her death, the two older siblings
further expanded into the wholesale
Mexican food market, which had increased company revenues
12 percent annually over the last
ten years. However, the generational transition was anything but
seamless as Marisol had left no
written succession plan.
When the Diaz siblings assumed control of Buenas Diaz, Carlos
became the unofficial leader.
There had always been friction between Flora and Carlos with
their differing ages and
personalities. Further, given that he was the eldest and only
male child, Carlos had always
seemed to Flora to act as if he had been Marisol’s favorite.
As company CEO, Carlos believed he was the “face” of the firm
and bore the greatest
responsibility for carrying on the family name and legacy.
Therefore, he felt he should wield the
most decision-making power regarding directing family firm
operations. In contrast, Flora
believed the responsibilities for maintaining and growing the
business should be distributed and
that all three siblings should have an equal say in company
decisions.
Flora was always looking for ways to prove her business
acumen and value to the firm. Maria was
often in the middle of any sibling conflicts, acting as an
intermediary and peacemaker between
her older brother and younger sister.
PAGE 496 j THE CASE JOURNAL j VOL. 13 NO. 4 2017
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Restaurant operations
Each of the siblings received a $10,000 per month ownership
distribution, as a result of all
combined Buenas Diaz’s production activities. Flora used some
of her distribution to supplement
the restaurant’s operations, which had been experiencing
negative cash flows of almost
$2,000 per month. While she had not completed a structured
market analysis, Flora’s staff
reported that daily customer counts had fallen to 300-400
individuals over the last six months.
Having to supplement restaurant operations from her personal
financial distribution had sparked
Flora’s interest in trying to appeal to the emerging adult/hipster
market in Houston. She felt that
growing the events side of the family’s restaurant business
would be a good move because its
original patrons were aging and this might be an effective way
to incorporate a younger clientele
into the Buenas Diaz consumer base. In an effort to attract an
18-25-year old audience, Flora
began hosting Sunday afternoon dances featuring local Tex/Mex
music artists. Being the “spot”
for alternative music, along with dancing in the patio area, led
to new positive social media
reviews. However, some of the new patrons called the restaurant
a “dive,” noting that the building
appeared run down.
After ten events, Flora estimated that at least 200 new
customers were now regularly coming
to Buenas Diaz each month. She saw this as proof of her efforts
to revitalize the
restaurant’s audience.
The crisis
A year ago, Flora and Carlos had a disagreement during an
informal family gathering not meant to
be about the business regarding how the firm’s taco shells and
tortilla chips should be
manufactured. Flora suggested that Carlos streamline
manufacturing by purchasing machines
that would mechanically shape large numbers of their shells and
chips, eliminating at least five
employee positions from the hand-manufacturing process and
allowing for greater economies of
scale. Carlos was offended by Flora’s suggestion. Basically, he
felt that since Flora had never
been involved in large-scale manufacturing, her knowledge
about how to modify the company’s
current systems was very limited compared to his. He stated that
he felt Flora was disrespectfully
trying to impose her opinions on him. To date, he had not told
Flora what to do with the
restaurant, so she certainly was not in a position to instruct him
on manufacturing matters.
Boundaries mattered to Carlos.
Despite Maria’s attempts to intervene, both Flora and Carlos
left the family dinner furious.
Over the next months, Maria asked Flora to leave Carlos alone,
stating that was Carlos’s request.
While Carlos and Flora had not spoken directly since the
incident, both used Maria as the
go-between for some limited intra-family communications.
At the Permitting Center Counter
With notice in hand, Flora headed over to the Houston
Permitting Center. She planned to get the
fine dismissed and obtain permission to continue her restaurant
events. Permitting Center staff
pulled her file and, after a quick review, the building technician
told Flora that the center’s key
concerns appeared to relate to the increase in noise and traffic,
tables blocking the sidewalk, and
building code violations noted by the inspector including
insufficient fire sprinklers and no
disability access.
Flora calmly explained that while the restaurant was located
adjacent to several homes, it was on
a street now zoned for commercial use, making the noise and
traffic complaints somewhat moot.
She agreed to ensure that the loudspeakers for the music were
focused within the restaurant’s
patio, reducing the impact on her residential neighbors. Using a
map, Flora and the technician
identified some ways that the exterior tables could be positioned
to reduce the impact on
passersby. Finally, Flora pointed out that the building was more
than 75 years old and had been
retrofitted in the early 1980s to meet the then required building
codes.
Since Flora held events only on Sundays, the technician agreed
that her proposed strategies
should mitigate the noise and traffic concerns identified in the
complaint. However, the technician
VOL. 13 NO. 4 2017 j THE CASE JOURNAL j PAGE 497
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also pointed out that the fire sprinkler code requirements had
been in place more than 15 years
and the inadequate fire protection constituted a public health
and safety hazard. Further, given
increased community pressure from local disability activists
around access to public facilities and
the fact that Buenas Diaz was well known for the excellence of
its food, the technician noted that
the restaurant either needed to install the required Americans
with Disabilities Act (ADA)
improvements or plan to pay the daily fines for not providing
appropriate access for all members
of the community.
Renovation estimates
The very next day, Flora began to identify contractors who
might be able to handle the health and
safety upgrades. She found several who specialized in updating
older buildings to meet current
fire and ADA codes. She settled on Willock Construction,
owned by one of her high school
classmates, Bruce Willock. After calling him to set up an
appointment for a site visit, Flora felt
excited to have gotten things started.
Given their connection, Bruce Willock decided to handle the
initial inspection personally. When he
arrived on site, Bruce immediately saw that the restaurant was
in desperate need of repairs. As
Flora showed off the beautiful murals on the walls of the patio
where the dances were held, Bruce
noticed old knob and tube wiring and evidence of mold on the
underside of the gutters. After
doing some rough mental calculations, Bruce let Flora know
that, in addition to the fire sprinklers
and ADA ramps, she would probably need to have some
electrical work and hazardous material
cleanup completed, all of which would probably increase the
costs of the project. He told Flora
that he could have her estimate within the next three to five
days.
Bruce called Flora back three days later with a preliminary
estimate. He indicated that Flora would
need to spend about $450,000, including the required building
permits, to deal with the electrical,
fire sprinkler, and physical modifications. While the company’s
standard policy was to get half of
the estimated payment as a deposit at the time that the contract
was signed, given their long-time
relationship, he was willing to work with Flora and would
require only a $100,000 deposit prior to
having his construction firm begin work. Bruce asked Flora to
give him two weeks’ notice so that
he could properly stage his team for this job.
The decision
Although it was a registered Texas C-corporation, Buenas Diaz
had no official dividend
distribution policy. Like her siblings, Flora had been receiving
$10,000 per month to cover her
personal expenses. Over the last six months, she had been using
a portion of this amount to
cover the operating deficits associated with the restaurant.
Neither the restaurant nor the
manufacturing operation had reserves set aside for building
renovation expenses.
Given these facts, Flora realized she needed to be practical. She
was going to have to call a family
meeting if she wanted her siblings to give her any part of the
money she needed for the restaurant
repairs. But after reviewing the company’s financial data and
comparing it to industry standards,
she wondered if it really made sense to take $450,000 from the
company’s manufacturing
reserves to save the restaurant. Further, if she could prove
continuing to operate the restaurant
was a good investment, what strategies should she use to
persuade her angry older brother as
well as her sister to agree with her assessment? (Tables III-VII).
PAGE 498 j THE CASE JOURNAL j VOL. 13 NO. 4 2017
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Table III Industry balance sheet benchmarks
Bakeries and tortilla manufacturing (asset class: all)
Industry
standard %
Industry standard % applied
to Buenas Diaz
Buenas Diaz
actuals
Buenas Diaz
standard %
Corp average balance sheet 2012 $15,000,000.00 15,000,000.00
2014
Cash 5.10 $765,000.00 $1,050,000.00 7.00
Receivables 9.32 $1,398,000.00 $1,050,000.00 7.00
Inventory 6.60 $990,000.00 $750,000.00 5.00
Other current assets 2.57 $385,500.00 $450,000.00 3.00
Total current assets 23.59 $3,538,500.00 $3,600,000.00 24.00
Fixed assets 57.17 $8,575,500.00 $8,550,000.00 57.00
Other non-current assets 19.24 $2,886,000.00 $2,850,000.00
19.00
Total assets 100.00 $15,000,000.00 $15,000,000.00 100.00
Accounts payable 7.42 $1,113,000.00 $1,050,000.00 7.00
Loans/Notes payable 1.74 $261,000.00 $300,000.00 2.00
Other current liabilities 10.94 $1,641,000.00 $1,800,000.00
12.00
Total current liabilities 20.10 $3,015,000.00 $3,150,000.00
21.00
Other long-term liabilities 36.95 $5,542,500.00 $5,550,000.00
37.00
Total liabilities 77.15 $11,572,500.00 $11,850,000.00 79.00
Equity 22.85 $3,427,500.00 $3,150,000.00 21.00
Total liabilities + equity 100.00 $15,000,000.00 $15,000,000.00
100.00
Table IV Industry financial ratios
Bakeries and tortilla manufacturing (asset class: all)
Industry
standard
Industry standard applied
to Buenas Diaz
Buenas Diaz
actuals
Buenas Diaz
standard %
Corp average financial ratios 2012 $15,000,000.00
$15,000,000.00 2014
Return on sales 4.02% $603,000.00 $224,500.00 1.50
Return on assets 5.14% $771,000.00 $224,500.00 1.50
Return on net worth 11.97% $1,795,500.00 $1,069,047.62 7.13
Quick ratio 0.72 $10,800,000.00 $4,556,962.03 0.30
Current ratio 1.17 $17,550,000.00 $3,417,721.52 0.23
Inventory turnover 19.37 $290,550,000.00 $250,000,000.00
16.67
Assets: sales 0.78 $11,700,000.00 $9,750,000.00 0.65
Total liabilities: net worth 1.33 $19,950,000.00 $19,500,000.00
1.30
Table V Industry balance sheet benchmarks
Restaurants (asset class: all)
Industry
standard %
Industry standard % applied
to Buenas Diaz
Buenas Diaz
actuals
Buenas Diaz
standard %
Corp average balance sheet 2012 $16,00,000.00 16,00,000.00
2014
Cash 21.01 $3,36,160.00 $72,000.00 4.50
Receivables 3.57 $57,120.00 $1,76,000.00 11.00
Inventory 6.01 $96,160.00 $1,28,000.00 8.00
Other current assets 5.22 $83,520.00 $48,000.00 3.00
Total current assets 35.81 $5,72,960.00 $4,24,000.00 26.50
Fixed assets 52.73 $8,43,680.00 $7,20,000.00 45.00
Other non-current assets 11.46 $1,83,360.00 $4,56,000.00 28.50
Total assets 100.00 $16,00,000.00 $16,00,000.00 100.00
Accounts payable 7.14 $1,14,240.00 $1,12,000.00 7.00
Loans/notes payable 3.41 $54,560.00 $32,000.00 2.00
Other current liabilities 27.73 $4,43,680.00 $1,92,000.00 12.00
Total current liabilities 38.28 $6,12,480.00 $3,36,000.00 21.00
Other long-term liabilities** 24.50 $3,92,000.00 $9,76,000.00
61.00
Total liabilities 62.78 $10,04,480.00 $13,12,000.00 82.00
Equity 37.22 $5,95,520.00 $2,88,000.00 18.00
Total liabilities + equity 100.00 $16,00,000.00 $16,00,000.00
100.00
VOL. 13 NO. 4 2017 j THE CASE JOURNAL j PAGE 499
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Corresponding author
Monika Hudson can be contacted at: [email protected]
Table VI Industry financial ratios
Restaurants (asset class: all)
Industry
standard
Industry standard applied
to Buenas Diaz
Buenas Diaz
actuals
Buenas Diaz
standard %
Corp average financial ratios 2012 $16,00,000.00 $16,00,000.00
2014
Return on sales 6.50% $1,04,000.00 $72,000.00 4.50%
Return on assets 35.03% $5,60,480.00 $3,68,000.00 23.00%
Return on net worth 94.13% $15,06,080.00 $12,80,000.00
80.00%
Quick ratio 0.64 $10,24,000.00 $4,86,075.95 0.30
Current ratio 0.94 $15,04,000.00 $3,64,556.96 0.23
Inventory turnover 89.69 $14,35,04,000.00 $2,66,66,666.67
16.67
Assets: sales 0.19 $3,04,000.00 $10,40,000.00 0.65
Total liabilities: net worth 1.69 $27,04,000.00 $20,80,000.00
1.30
Table VII Cash basis pro-forma statement – working model
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Outline placeholderTeaching notesCase synopsisResearch
methods employedLearning objectivesAudience and
placementDiscussion questionsSuggested abbreviated answers
to discussion questionsTeaching suggestionsEpilogue
Genetic Disorders
Research a genetic disorder that interests you and write a short
paper (minimum of 750 words,
excluding references) in your own words that addresses each of
the following guiding questions.
1. What did you pick to research (provide a brief description)
and why did you choose this?
2. Is this genetic condition typically inherited or developed
sporadically (environmental factors,
epigenetics, etc.)? Explain your thinking.
3. How does/do the gene(s) become mutated or epigenetically
altered?
4. What gene(s) is/are involved and what is/are the associated
phenotypes with different alleles of
the gene(s)?
5. What are the current treatments? Are new treatments being
explored? Elaborate.
6. How have your experiences in BSC1005L supported your
understanding of inherited/familial and
environmentally caused forms of genetic conditions?
*Be sure your paper is organized with appropriate paragraphing
and headings. This should read as a
cohesive paper, NOT a list of answers to these questions.
Proofread your paper and remember to cite all
sources both with in-text citations and a works cited using MLA
format.
Excellent
Satisfactory
Basic
MINIMUM WORD COUNT
Minimum length of 200 words per question (e.g. Question 1 >
200 words, Question 2 > 200 words) & format is followed
consistently. 6 pts
Word count LESS THAN200 words per question and/or format
not followed. 3 pts
UNDERSTANDING AND ACCURATE APPLICATION OF
COURSE CONCEPT/ASSIGNED TOPIC
Assignment responses reflect full understanding of course
material.
5 pts
Assignment responses use course concepts accurately. 4 pts
Assignment responses reflect some understanding of course
concept.
3 pts
Unclear use of course concepts in assignment responses. 2 pts
Assignment responses reflect limited understanding of course
concept.
2 pts
Assignment responses use course concepts inaccurately. 1 pt
DEPTH OF ANALYSIS
Assignment responses display significant depth of analysis.
6 pts
Assignment responses relate to questions asked. 2 pts
Assignment responses display some depth of analysis. 4 pts
Assignment responses are mostly relevant to the questions
asked. 1 pt
Assignment responses suffer from limited depth of analysis. 3
pts
Assignment responses are mostly irrelevant to the questions
asked. 0 pts
PROVIDING SUBSTANTIVE EVIDENCE WITH REASONED
IMPLICATIONS AND CONCLUSIONS
Assignment responses mostly incorporate specific content and
examples from course material to competently substantiate
independent points and ideas. 4 pts
Reasoned implications and conclusions are also clearly and
accurately identified. 5 pts
Assignment responses incorporate some use of specific content
and examples from course material which may be mostly but not
fully appropriate to substantiating points and ideas. 2 pts
Reasoned implications and conclusion limited with low to
moderate level of accuracy. 2 pts
Assignment responses incorporate limited use of specific
content and examples from course material are mostly irrelevant
and do not support the ideas being developed. 1 pt
Reasoned implications and conclusions absent. 1 pt
INCORPORATING EXTERNAL SOURCES
Assignment responses accurately incorporate 2 or more external
sources plus any course resources (text chapter, video) used. 6
pts
All references and citations of external sources fully utilize
APA format. 4 pts
(Both in-text citations and references required. No title page is
needed.)
Assignment responses accurately incorporate 1 external source
plus any course resources used. 4 pts
Some references and citations of external sources utilize APA
format.
3 pts
(Both in-text citations and references required. No title page is
needed.)
Assignment responses only incorporate course resources used,
but no externalsource. 2 pts
No included references andcitations of external sources utilize
APA format. 2 pts
(Both in-text citations and references required. No title page is
needed.)
LANGUAGE, SPELLING, AND GRAMMAR
Assignment responses are written using language that is clear,
concise and easy to understand. 4 pts
Content has few to no grammar or spelling errors. 4 pts
Assignment responses are adequately written, but writing may
be ambiguous. 2 pts
Content has some grammar or spelling errors. 2 pts
Assignment responses are poorly written and difficult to
understand. 1 pt
Content has many grammar and spelling errors. 1 pt

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Buenas Diaz – status quo or pivot!Monika Hudson and Frank .docx

  • 1. Buenas Diaz – status quo or pivot! Monika Hudson and Frank Ohara Uh, oh! As she eyed the pile of mail, Flora noticed one of the envelopes bore an official City of Houston seal. With a feeling of unease, she pushed aside everything else to open it. Half of what she scanned did not register, but the words “cease and desist” and “$5,000 per day fine” got through. A closer read revealed a City order to immediately remove her restaurant’s exterior loudspeakers and sidewalk tables as well as initiate major building repairs. Groaning, Flora realized she was going to need her family’s financial help. But, how should she approach that “ask,” given how angry her older brother was with her? History of a family food business Juan and Martha Diaz came to Houston, Texas, from Guadalajara, Mexico, in the early 1930s. They opened the first mechanized tortilla factory in their new city. In 1936, they expanded the tortilla factory by adding a small restaurant they named Buenas Diaz. In the early 1950s, Juan and Martha’s daughter Marisol helped her parents further expand with the production of a Buenas Diaz line of tortillas that were
  • 2. sold in supermarkets in the Houston area. Their popularity grew, and the family was able to subsequently place their products in supermarkets throughout Southern Texas. Marisol and her parents, along with their Buenas Diaz restaurant and products, became well-known fixtures in the Houston Mexican and Anglo communities. In the 1970s, while it continued to manufacture and distribute tortillas, the company began to produce a range of salsa products, taco shells, and tortilla chips. In addition, its locally famous restaurant continued to offer an array of Mexican dishes. The Buenas Diaz restaurant prepared its dishes from scratch, using primarily local ingredients. Designed to offer a fiesta for the senses, the restaurant resembled a Mexican border town café with a vibrant and contemporary décor. It featured an extensive variety of dishes including traditional enchiladas, burritos, and tacos as well as innovative items such as fresh fish, and shrimp fajitas. During this period, the Buenas Diaz restaurant regularly attracted 500-700 customers daily. The theme of every Buenas Diaz dish continued to be freshness, a characteristic underlined by the placement of a replica of the family’s original tortilla maker, known as “El Machino,” in the center of the restaurant’s dining area. El Machino helped create a fun atmosphere for everyone, providing entertainment for children and enabling guests at this full-service restaurant (FSRs) to watch the tortilla-making process as they enjoyed their meals.
  • 3. The restaurant industry Buenas Diaz was one star in an exploding dining market. As of 2014, Mexican restaurants constituted 8 percent of the US national restaurant landscape (CHD Experts, 2014). US consumers spent more than $39 billion at Mexican restaurants annually, and the average Mexican restaurant earned more than $700,000 in revenue each year (CHD Experts, 2014). Of the approximately 54,000 Mexican restaurants in operation, roughly 56 percent were classified as FSRs with wait staff and table service. The names of the institutions and individuals involved have been disguised, however the material facts of the case are authentic. This case was prepared by the authors and is intended to be used as a basis for class discussion. The views presented here are those of the authors based on field research and professional judgment and do not necessarily reflect the views of The Case Journal. The names of the individuals, the firm, and its location have been disguised to preserve anonymity. An earlier compact version of this case was presented by Aubrey Leung at the Baylor Student Case
  • 4. competition in January 2014. Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The authors may have disguised names; financial, and other recognizable information to protect confidentiality. Monika Hudson is an Associate Professor at the Department of Entrepreneurship & Innovation, University of San Francisco, San Francisco, USA. Frank Ohara is a Professor and the Department Chair at the Department of Finance, University of San Francisco, San Francisco, USA. PAGE 494 j THE CASE JOURNAL j VOL. 13 NO. 4 2017, pp. 494-512, © Emerald Publishing Limited, ISSN 1544-9106 DOI 10.1108/TCJ-01-2017-0006 D ow nl oa de d
  • 7. dominated the industry; approximately 74 percent of the nation’s Mexican restaurants fell into the independently owned category. More than 36 percent of US Mexican restaurants were located in the states of California and Texas, followed by Florida, New York, and Illinois. Table I overviews Mexican restaurants’ penetration rates as a percentage of the total restaurant market in various states. CHD FIND (2014) stated that 33 percent of the Mexican restaurants in its database had an average check range of $10-$15, with another 24 percent with an average check range of $5-$7. This would indicate that a majority of Mexican restaurants, even full-service ones, offered a range of more affordable plate options compared to non-Mexican full-service eating establishments. Buenas Diaz and the Mexican food industry Given the size of the growing Latino population in the USA, one might expect that these consumers would serve as a built-in audience for Mexican food. Indeed, Latinos were among the largest consumers of these products (CHD Experts, 2014). However, what helped grow Mexican food into a multi-billion-dollar revenue category was the fact that it had become mainstream. For example, any number of US consumers did not even think about the fact that a significant portion of their grocery purchases were actually classified as Mexican foods (e.g. tortilla chips). Increasingly, as a means of growing sales,
  • 8. manufacturers had struck a balance between offering products that were perceived as “authentic” by hardcore Mexican food fans and concurrently offering sauces and baked goods that were appealing to the large portion of the US population that was simply interested in “adding a little spice (but not too much) to their plate” (Mintel, 2011). 2013 statistics related to supermarket sales of Mexican foods and sauces are summarized in Table II. Table II Data table: supermarket categories by dollar, unit sales Categories Dollar sales Dollars sales % Chg YAgo Unit sales Unit sales % Chg YAgo Mexican food $1,699,297,000 1.81 806,995,800 0.79 Mexican sauces $1,011,285,000 1.18 384,365,400 0.67 Note: Top supermarket product categories by dollar sales and unit sales for the 52 weeks ending June 16, 2013 Source: Infoscan Reviews (2013), a Chicago-based market research firm Table I State by Mexican menu type – percent of total Largest % of market TX – Texas 16.7 NM – New Mexico 14.1 CA – California 13.8 AZ – Arizona 13.6 CO – Colorado 12.2 Smallest % of market
  • 9. CT – Connecticut 3.6 MA – Massachusetts 3.1 PA – Pennsylvania 2.9 VT – Vermont 2.9 ME – Maine 2.6 Source: Available at: www.chd-expert.com/resource- center/2014-mexican-restaurant-industry-land scape♯sthash.gFmEaWhY.dpuf (accessed July 20, 2015) VOL. 13 NO. 4 2017 j THE CASE JOURNAL j PAGE 495 D ow nl oa de d by L ou is ia na S ta te U
  • 11. 08 :1 7 27 M ay 2 01 8 (P T ) www.chd-expert.com/resource-center/2014-mexican-restaurant- industry-landscape♯sthash.gFmEaWhY.dpuf www.chd-expert.com/resource-center/2014-mexican-restaurant- industry-landscape♯sthash.gFmEaWhY.dpuf With 2015 annual supermarket sales of $15 million, Buenas Diaz food products represented less than 1 percent of the combined Mexican food and sauces supermarket categories, but the family believed the company could increase its market share in both areas to at least 5 percent by 2020. Towards that end, the two oldest siblings concentrated their efforts on enhancing supermarket shelf space and geographic markets outside of their established Texas base.
  • 12. The family firm owners Over the last ten years, Carlos, the eldest of the Diaz siblings, had overseen manufacturing and Texas distribution activities for the family’s Buenas Diaz food production and distribution firm. Company revenues increased from $2.5 million in 2000 to almost $15 million in 2015, in line with the overall growth in US consumption of Mexican-themed food products. Carlos credited his management skills with having shepherded the family’s business activities from a small but beloved restaurant to an emerging food production powerhouse. A large man with an easy laugh, at 51, Carlos had won countless awards for his business savvy and community investment in the greater Houston area. Although he shared ownership of the building that housed his parents’ restaurant with his two younger sisters, Carlos had not been involved in its day-to-day operations for at least ten years, preferring to concentrate on the faster-growing food production side of the family business. After an argument about a year ago, Carlos had also not had direct contact with his sister, Flora. Maria, the middle of the Diaz siblings, worked closely with Carlos on product line development and retail market placements. Within the family firm, the 45- year-old’s role was to develop and expand the salsa, tortilla, taco, and tortilla chip lines into new markets as well as to oversee national distribution of all Buenas Diaz food products outside of Texas. Maria provided Flora with opportunities to work on expanding the company’s distribution into targeted markets, particularly
  • 13. in the Pacific Northwest and New England areas. A small, nervous woman, Maria got along with Flora as well as with Carlos. Although she tried to remain neutral, Maria often sided with Carlos when it came to making collective decisions about local and national production and distribution matters. At 34, Flora was the youngest of the Diaz children. She ran the Buenas Diaz restaurant out of the family-owned building and helped her older sister with targeted national distribution efforts. It had been Flora’s idea to place “El Machino” in the restaurant, where it was so popular. Family tensions Marisol passed away in 2005 and her three children, Carlos, Maria, and Flora, assumed control of the family empire. After her death, the two older siblings further expanded into the wholesale Mexican food market, which had increased company revenues 12 percent annually over the last ten years. However, the generational transition was anything but seamless as Marisol had left no written succession plan. When the Diaz siblings assumed control of Buenas Diaz, Carlos became the unofficial leader. There had always been friction between Flora and Carlos with their differing ages and personalities. Further, given that he was the eldest and only male child, Carlos had always seemed to Flora to act as if he had been Marisol’s favorite. As company CEO, Carlos believed he was the “face” of the firm
  • 14. and bore the greatest responsibility for carrying on the family name and legacy. Therefore, he felt he should wield the most decision-making power regarding directing family firm operations. In contrast, Flora believed the responsibilities for maintaining and growing the business should be distributed and that all three siblings should have an equal say in company decisions. Flora was always looking for ways to prove her business acumen and value to the firm. Maria was often in the middle of any sibling conflicts, acting as an intermediary and peacemaker between her older brother and younger sister. PAGE 496 j THE CASE JOURNAL j VOL. 13 NO. 4 2017 D ow nl oa de d by L ou is ia na
  • 16. tt s A t 08 :1 7 27 M ay 2 01 8 (P T ) Restaurant operations Each of the siblings received a $10,000 per month ownership distribution, as a result of all combined Buenas Diaz’s production activities. Flora used some of her distribution to supplement the restaurant’s operations, which had been experiencing negative cash flows of almost $2,000 per month. While she had not completed a structured market analysis, Flora’s staff
  • 17. reported that daily customer counts had fallen to 300-400 individuals over the last six months. Having to supplement restaurant operations from her personal financial distribution had sparked Flora’s interest in trying to appeal to the emerging adult/hipster market in Houston. She felt that growing the events side of the family’s restaurant business would be a good move because its original patrons were aging and this might be an effective way to incorporate a younger clientele into the Buenas Diaz consumer base. In an effort to attract an 18-25-year old audience, Flora began hosting Sunday afternoon dances featuring local Tex/Mex music artists. Being the “spot” for alternative music, along with dancing in the patio area, led to new positive social media reviews. However, some of the new patrons called the restaurant a “dive,” noting that the building appeared run down. After ten events, Flora estimated that at least 200 new customers were now regularly coming to Buenas Diaz each month. She saw this as proof of her efforts to revitalize the restaurant’s audience. The crisis A year ago, Flora and Carlos had a disagreement during an informal family gathering not meant to be about the business regarding how the firm’s taco shells and tortilla chips should be manufactured. Flora suggested that Carlos streamline manufacturing by purchasing machines that would mechanically shape large numbers of their shells and
  • 18. chips, eliminating at least five employee positions from the hand-manufacturing process and allowing for greater economies of scale. Carlos was offended by Flora’s suggestion. Basically, he felt that since Flora had never been involved in large-scale manufacturing, her knowledge about how to modify the company’s current systems was very limited compared to his. He stated that he felt Flora was disrespectfully trying to impose her opinions on him. To date, he had not told Flora what to do with the restaurant, so she certainly was not in a position to instruct him on manufacturing matters. Boundaries mattered to Carlos. Despite Maria’s attempts to intervene, both Flora and Carlos left the family dinner furious. Over the next months, Maria asked Flora to leave Carlos alone, stating that was Carlos’s request. While Carlos and Flora had not spoken directly since the incident, both used Maria as the go-between for some limited intra-family communications. At the Permitting Center Counter With notice in hand, Flora headed over to the Houston Permitting Center. She planned to get the fine dismissed and obtain permission to continue her restaurant events. Permitting Center staff pulled her file and, after a quick review, the building technician told Flora that the center’s key concerns appeared to relate to the increase in noise and traffic, tables blocking the sidewalk, and building code violations noted by the inspector including insufficient fire sprinklers and no disability access.
  • 19. Flora calmly explained that while the restaurant was located adjacent to several homes, it was on a street now zoned for commercial use, making the noise and traffic complaints somewhat moot. She agreed to ensure that the loudspeakers for the music were focused within the restaurant’s patio, reducing the impact on her residential neighbors. Using a map, Flora and the technician identified some ways that the exterior tables could be positioned to reduce the impact on passersby. Finally, Flora pointed out that the building was more than 75 years old and had been retrofitted in the early 1980s to meet the then required building codes. Since Flora held events only on Sundays, the technician agreed that her proposed strategies should mitigate the noise and traffic concerns identified in the complaint. However, the technician VOL. 13 NO. 4 2017 j THE CASE JOURNAL j PAGE 497 D ow nl oa de d by L ou
  • 21. i K no tt s A t 08 :1 7 27 M ay 2 01 8 (P T ) also pointed out that the fire sprinkler code requirements had been in place more than 15 years and the inadequate fire protection constituted a public health and safety hazard. Further, given increased community pressure from local disability activists
  • 22. around access to public facilities and the fact that Buenas Diaz was well known for the excellence of its food, the technician noted that the restaurant either needed to install the required Americans with Disabilities Act (ADA) improvements or plan to pay the daily fines for not providing appropriate access for all members of the community. Renovation estimates The very next day, Flora began to identify contractors who might be able to handle the health and safety upgrades. She found several who specialized in updating older buildings to meet current fire and ADA codes. She settled on Willock Construction, owned by one of her high school classmates, Bruce Willock. After calling him to set up an appointment for a site visit, Flora felt excited to have gotten things started. Given their connection, Bruce Willock decided to handle the initial inspection personally. When he arrived on site, Bruce immediately saw that the restaurant was in desperate need of repairs. As Flora showed off the beautiful murals on the walls of the patio where the dances were held, Bruce noticed old knob and tube wiring and evidence of mold on the underside of the gutters. After doing some rough mental calculations, Bruce let Flora know that, in addition to the fire sprinklers and ADA ramps, she would probably need to have some electrical work and hazardous material cleanup completed, all of which would probably increase the costs of the project. He told Flora that he could have her estimate within the next three to five
  • 23. days. Bruce called Flora back three days later with a preliminary estimate. He indicated that Flora would need to spend about $450,000, including the required building permits, to deal with the electrical, fire sprinkler, and physical modifications. While the company’s standard policy was to get half of the estimated payment as a deposit at the time that the contract was signed, given their long-time relationship, he was willing to work with Flora and would require only a $100,000 deposit prior to having his construction firm begin work. Bruce asked Flora to give him two weeks’ notice so that he could properly stage his team for this job. The decision Although it was a registered Texas C-corporation, Buenas Diaz had no official dividend distribution policy. Like her siblings, Flora had been receiving $10,000 per month to cover her personal expenses. Over the last six months, she had been using a portion of this amount to cover the operating deficits associated with the restaurant. Neither the restaurant nor the manufacturing operation had reserves set aside for building renovation expenses. Given these facts, Flora realized she needed to be practical. She was going to have to call a family meeting if she wanted her siblings to give her any part of the money she needed for the restaurant repairs. But after reviewing the company’s financial data and comparing it to industry standards, she wondered if it really made sense to take $450,000 from the
  • 24. company’s manufacturing reserves to save the restaurant. Further, if she could prove continuing to operate the restaurant was a good investment, what strategies should she use to persuade her angry older brother as well as her sister to agree with her assessment? (Tables III-VII). PAGE 498 j THE CASE JOURNAL j VOL. 13 NO. 4 2017 D ow nl oa de d by L ou is ia na S ta te U ni ve
  • 26. 7 27 M ay 2 01 8 (P T ) Table III Industry balance sheet benchmarks Bakeries and tortilla manufacturing (asset class: all) Industry standard % Industry standard % applied to Buenas Diaz Buenas Diaz actuals Buenas Diaz standard % Corp average balance sheet 2012 $15,000,000.00 15,000,000.00 2014 Cash 5.10 $765,000.00 $1,050,000.00 7.00
  • 27. Receivables 9.32 $1,398,000.00 $1,050,000.00 7.00 Inventory 6.60 $990,000.00 $750,000.00 5.00 Other current assets 2.57 $385,500.00 $450,000.00 3.00 Total current assets 23.59 $3,538,500.00 $3,600,000.00 24.00 Fixed assets 57.17 $8,575,500.00 $8,550,000.00 57.00 Other non-current assets 19.24 $2,886,000.00 $2,850,000.00 19.00 Total assets 100.00 $15,000,000.00 $15,000,000.00 100.00 Accounts payable 7.42 $1,113,000.00 $1,050,000.00 7.00 Loans/Notes payable 1.74 $261,000.00 $300,000.00 2.00 Other current liabilities 10.94 $1,641,000.00 $1,800,000.00 12.00 Total current liabilities 20.10 $3,015,000.00 $3,150,000.00 21.00 Other long-term liabilities 36.95 $5,542,500.00 $5,550,000.00 37.00 Total liabilities 77.15 $11,572,500.00 $11,850,000.00 79.00 Equity 22.85 $3,427,500.00 $3,150,000.00 21.00 Total liabilities + equity 100.00 $15,000,000.00 $15,000,000.00 100.00 Table IV Industry financial ratios Bakeries and tortilla manufacturing (asset class: all) Industry standard Industry standard applied to Buenas Diaz Buenas Diaz actuals Buenas Diaz standard %
  • 28. Corp average financial ratios 2012 $15,000,000.00 $15,000,000.00 2014 Return on sales 4.02% $603,000.00 $224,500.00 1.50 Return on assets 5.14% $771,000.00 $224,500.00 1.50 Return on net worth 11.97% $1,795,500.00 $1,069,047.62 7.13 Quick ratio 0.72 $10,800,000.00 $4,556,962.03 0.30 Current ratio 1.17 $17,550,000.00 $3,417,721.52 0.23 Inventory turnover 19.37 $290,550,000.00 $250,000,000.00 16.67 Assets: sales 0.78 $11,700,000.00 $9,750,000.00 0.65 Total liabilities: net worth 1.33 $19,950,000.00 $19,500,000.00 1.30 Table V Industry balance sheet benchmarks Restaurants (asset class: all) Industry standard % Industry standard % applied to Buenas Diaz Buenas Diaz actuals Buenas Diaz standard % Corp average balance sheet 2012 $16,00,000.00 16,00,000.00 2014 Cash 21.01 $3,36,160.00 $72,000.00 4.50 Receivables 3.57 $57,120.00 $1,76,000.00 11.00 Inventory 6.01 $96,160.00 $1,28,000.00 8.00 Other current assets 5.22 $83,520.00 $48,000.00 3.00
  • 29. Total current assets 35.81 $5,72,960.00 $4,24,000.00 26.50 Fixed assets 52.73 $8,43,680.00 $7,20,000.00 45.00 Other non-current assets 11.46 $1,83,360.00 $4,56,000.00 28.50 Total assets 100.00 $16,00,000.00 $16,00,000.00 100.00 Accounts payable 7.14 $1,14,240.00 $1,12,000.00 7.00 Loans/notes payable 3.41 $54,560.00 $32,000.00 2.00 Other current liabilities 27.73 $4,43,680.00 $1,92,000.00 12.00 Total current liabilities 38.28 $6,12,480.00 $3,36,000.00 21.00 Other long-term liabilities** 24.50 $3,92,000.00 $9,76,000.00 61.00 Total liabilities 62.78 $10,04,480.00 $13,12,000.00 82.00 Equity 37.22 $5,95,520.00 $2,88,000.00 18.00 Total liabilities + equity 100.00 $16,00,000.00 $16,00,000.00 100.00 VOL. 13 NO. 4 2017 j THE CASE JOURNAL j PAGE 499 D ow nl oa de d by L ou is ia na S
  • 31. s A t 08 :1 7 27 M ay 2 01 8 (P T ) Corresponding author Monika Hudson can be contacted at: [email protected] Table VI Industry financial ratios Restaurants (asset class: all) Industry standard Industry standard applied to Buenas Diaz
  • 32. Buenas Diaz actuals Buenas Diaz standard % Corp average financial ratios 2012 $16,00,000.00 $16,00,000.00 2014 Return on sales 6.50% $1,04,000.00 $72,000.00 4.50% Return on assets 35.03% $5,60,480.00 $3,68,000.00 23.00% Return on net worth 94.13% $15,06,080.00 $12,80,000.00 80.00% Quick ratio 0.64 $10,24,000.00 $4,86,075.95 0.30 Current ratio 0.94 $15,04,000.00 $3,64,556.96 0.23 Inventory turnover 89.69 $14,35,04,000.00 $2,66,66,666.67 16.67 Assets: sales 0.19 $3,04,000.00 $10,40,000.00 0.65 Total liabilities: net worth 1.69 $27,04,000.00 $20,80,000.00 1.30 Table VII Cash basis pro-forma statement – working model PAGE 500 j THE CASE JOURNAL j VOL. 13 NO. 4 2017 D ow nl oa de d by
  • 34. T am i K no tt s A t 08 :1 7 27 M ay 2 01 8 (P T ) Outline placeholderTeaching notesCase synopsisResearch methods employedLearning objectivesAudience and placementDiscussion questionsSuggested abbreviated answers to discussion questionsTeaching suggestionsEpilogue
  • 35. Genetic Disorders Research a genetic disorder that interests you and write a short paper (minimum of 750 words, excluding references) in your own words that addresses each of the following guiding questions. 1. What did you pick to research (provide a brief description) and why did you choose this? 2. Is this genetic condition typically inherited or developed sporadically (environmental factors, epigenetics, etc.)? Explain your thinking. 3. How does/do the gene(s) become mutated or epigenetically altered? 4. What gene(s) is/are involved and what is/are the associated phenotypes with different alleles of the gene(s)? 5. What are the current treatments? Are new treatments being explored? Elaborate. 6. How have your experiences in BSC1005L supported your understanding of inherited/familial and environmentally caused forms of genetic conditions? *Be sure your paper is organized with appropriate paragraphing and headings. This should read as a cohesive paper, NOT a list of answers to these questions. Proofread your paper and remember to cite all sources both with in-text citations and a works cited using MLA format.
  • 36. Excellent Satisfactory Basic MINIMUM WORD COUNT Minimum length of 200 words per question (e.g. Question 1 > 200 words, Question 2 > 200 words) & format is followed consistently. 6 pts Word count LESS THAN200 words per question and/or format not followed. 3 pts UNDERSTANDING AND ACCURATE APPLICATION OF COURSE CONCEPT/ASSIGNED TOPIC Assignment responses reflect full understanding of course material. 5 pts Assignment responses use course concepts accurately. 4 pts Assignment responses reflect some understanding of course concept. 3 pts Unclear use of course concepts in assignment responses. 2 pts Assignment responses reflect limited understanding of course concept. 2 pts Assignment responses use course concepts inaccurately. 1 pt DEPTH OF ANALYSIS Assignment responses display significant depth of analysis. 6 pts Assignment responses relate to questions asked. 2 pts Assignment responses display some depth of analysis. 4 pts
  • 37. Assignment responses are mostly relevant to the questions asked. 1 pt Assignment responses suffer from limited depth of analysis. 3 pts Assignment responses are mostly irrelevant to the questions asked. 0 pts PROVIDING SUBSTANTIVE EVIDENCE WITH REASONED IMPLICATIONS AND CONCLUSIONS Assignment responses mostly incorporate specific content and examples from course material to competently substantiate independent points and ideas. 4 pts Reasoned implications and conclusions are also clearly and accurately identified. 5 pts Assignment responses incorporate some use of specific content and examples from course material which may be mostly but not fully appropriate to substantiating points and ideas. 2 pts Reasoned implications and conclusion limited with low to moderate level of accuracy. 2 pts Assignment responses incorporate limited use of specific content and examples from course material are mostly irrelevant and do not support the ideas being developed. 1 pt Reasoned implications and conclusions absent. 1 pt INCORPORATING EXTERNAL SOURCES Assignment responses accurately incorporate 2 or more external sources plus any course resources (text chapter, video) used. 6 pts
  • 38. All references and citations of external sources fully utilize APA format. 4 pts (Both in-text citations and references required. No title page is needed.) Assignment responses accurately incorporate 1 external source plus any course resources used. 4 pts Some references and citations of external sources utilize APA format. 3 pts (Both in-text citations and references required. No title page is needed.) Assignment responses only incorporate course resources used, but no externalsource. 2 pts No included references andcitations of external sources utilize APA format. 2 pts (Both in-text citations and references required. No title page is needed.) LANGUAGE, SPELLING, AND GRAMMAR Assignment responses are written using language that is clear, concise and easy to understand. 4 pts Content has few to no grammar or spelling errors. 4 pts Assignment responses are adequately written, but writing may be ambiguous. 2 pts Content has some grammar or spelling errors. 2 pts Assignment responses are poorly written and difficult to understand. 1 pt
  • 39. Content has many grammar and spelling errors. 1 pt