Corwin purchased the house in and lived there for 40 years until his death in Rebecca Brooks The house remained in the family until the s when it was sold to a pharmacist named George Farrington who added a pharmacy to the side of the building.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. An agreement with the state Public Service Commission had permitted Salem Telephone to establish Salem Data Services, a computer data service subsidiary, to perform data processing for the telephone company and to sell computer service to other companies and organizations.
It was necessary for these two companies to be separate because Salem Telephone was a regulated utility, and Salem Data Services was an unregulated company. Flores had told the Public Service Commission in that a profitable computer service subsidiary would reduce pressure for telephone rate increases.
However, by the end of Salem Data Services had yet to experience a profitable Salem telephone case. Wu felt the business was progressing well and only more time was needed until Salem Data Services showed a profit, but Flores felt action was necessary to reduce the drain on Salem Telephone Company resources.
Salem Data Services had grown out of the needs of Salem Telephone for computer services to plan, control, and account for its operations in the metropolitan region it served. However, when Salem Telephone management realized that other businesses in the metropolitan region needed similar services and that centralized service could be provided over telephone circuits, they suggested that Salem Telephone could sell computer time not needed by telephone operations.
In addition, the state Public Service Commission had encouraged all public utilities under its jurisdiction to seek new sources of revenue and profits to reduce the need for rate increases that higher costs would otherwise bring.
In presenting the proposal for the new subsidiary, Flores had argued for a separate but wholly owned company whose prices for service would not be regulated.
In this way, Salem Data Services could compete with other computer service organizations in a dynamic field. To maintain the separation between Salem Telephone and its unregulated subsidiary, all accounts of Salem Data Services were separated from those of Salem Telephone and each paid the other for services received from the other.
Professor Emeritus William J. This version was prepared by Professor Emeritus William J. HBS cases are developed solely as the basis for class discussion. The company mentioned in the case is fictional. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management.
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For the exclusive use of R. Ortega Salem Telephone Company Salem Data Services started operations inand as was typical for most start-ups, there had been some problems. Equipment deliveries were delayed.Many of SDS's expenses were shared by Salem Telephone company and should they choose not to operate the subsidary they would save only about $ Based on your analysis above.
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Salem Telephone Company Case Study HBS case – Salem Telephone Company Opening In the Public Service Commission (PSC) was informed by the president of Salem Telephone Company (STC) that a profitable computer service subsidiary would reduce pressure for increases to telephone rates.5/5(2).
Salem Telephone Company Case Analysis Words | 6 Pages. Introduction Peter Flores, president of Salem Telephone Company (STC) informed the Public Service Commission “that a profitable computer service Subsidiary would reduce pressure for the telephone rate increase.” And a result, Salem Data Services (SDS) was established.
James Whittle Salem Telephone Company Case Study 9/29/ 1.) The variable costs in Exhibit 2 are Power and Hourly Personnel Wages as the costs fluctuate from month to month and are driven by the revenue hours for the company. Salem Telephone Company Case Study 1.
Variable Expenses with respect to revenue hours: Power expense, hourly personnel salaries expense. Fixed expenses with respect to revenue hours: Rent, custodial services, computer leases, maintenance, depreciation of computer equipment and office equipment and fixtures, operations salaried staff, systems development and maintenance, %(98).
The Salem Witch Trials took place in Salem in the Province of Massachusetts Bay between Historians believe the accused witches were victims of mob mentality, mass hysteria and scapegoating.