Gerber Products Company: Solutions To Their Problems
As the acquisition of Alima continues, we have run into a few problems. These problems are mostly due to the political climate within the region, and property rights issues. One main issue we anticipate could derive from the political climate is the issue of tax credits.
All of these problems, in my opinion, could be overcome. We have to make a decision as a team about the cost of moving forward.
Problem I:
The first problem is the uncertainty of the political stability within Poland. In October, there were political events that caused policymaking to stop. The team of political leaders that were engaged during the initial conversations are on their way out of the door and bureaucratic processes require people to wait until "the leaders" tell them to proceed.
While the negotiations are at a stand still, the deal is coming under attack from members of the press. They are planting the beliefs that the economic downturn within the country is due to foreign investments. If the people start believing this, the politicians who are voted in office will be pressured to act according to the wishes of the people.
Another issue we foresee is a speculative one. The Polish government has given us a $ for $ tax exemption for all capital investments in their economy for the first three years. The team is concerned about the likeliness of the new government changing this agreement and impacting the original attractive luster of the deal.
Proposed Solution:
Poland is a country currently wanting to become a member of the EC. It has just migrated from a communist regime and had its first democratic elections. Inflation rate is the highest it has ever been. The...
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.... Either way, should be fine with us.
Impact to Bottom Line:
If we apply my suggested mechanisms for overcoming the drawbacks, there will be no impact to the bottom line.
Recommendation:
If we move forward with the deal we'll have the following Pro's and Con's.
Pros:
First mover advantage in growing markets
Acquired Lesson's learned for other possible deals internationally
Complementing, good quality assets
Overall lower cost of production
More price competitiveness
Goodwill as philanthropists in the region
Cons:
High risks and uncertainties
Possible losses, if no tax credits
Political and economic instability
No local or regional experience or partners
The cons have been sized and mitigated. The pros are beneficial to our long-term success. The pros outweigh the cons; I recommend we move forward with the deal.
While there isn't a great deal of weaknesses to this option, executives might still agree that our competition will take advantage of our opportunity for growth in the consumer market. While this may be true, the results could be much worse if Zoecon jumps into the consumer market before gaining the reputation and earnings they would have produced from starting with the PCO's support behind their product. Zoecon has a specially designed product that is backed by strong, scientific research. Even though Zoecon's competitors will have a few years to breathe freely, after developing widespread attention from professionals, and gaining competitive edge, Zoecon is bound to quickly surprise the consumer market in the future.
In deciding whether to invest in Deltex, we have to consider some advantages and disadvantages of this deal first.
List how you are going to implement each solution. How are you going to make your solution work?
Two potential positive outcomes and two potential adverse effects will be hypothesized if these competing companies either address or fail to address the key issues selected.
Protocol 30 was included in the Lisbon Treaty: ‘Protocol on the application of the Charter of fundamental rights of the European Union to Poland and to the United Kingdom’. The UK was mainly concern about ECJ’s ability to force any kind of changes to UKs’ labour law, while Poland was mostly concerned about the same-sex marriage and abortion rights. This Protocol has been presented as an ‘opt-out’, which aims that the Charter will not bind Poland and United Kingdom. As stated by Article 1(1) of Protocol 30, ‘The Charter does not extend the ability of the Court of Justice of the European Union, or any court or tribunal of Poland or of the United Kingdom’.
Tax reform has undergone much debate in the political stratosphere recently. The tax system has been stigmatized because of a multitude of reasons that include corruption. Additionally, tax reform is a very complex issue. In addition, there has been an abundance of negotiations in Congress to pass some type of tax reform. Despite these talks, actual action has remained stagnant. This topic clearly reflects the collective action principle and the policy principle due to failed tax reform negotiations and the outcomes of various legislation.
provide an analysis of the main pros and cons for Chase in connection with the deal. Lastly I will show how
economically feasible, all of the research in the world will not make it happen. No matter how you look at it,
In conclusion, Solidarity was a movement that helped change the course of two continents. It was a movement by the people and for the people. The iron grip of communism was destroyed, and democracy was born throughout Eastern Europe. Solidarity will always be remembered as the revolution that succeeded where so many others had failed. Today in Polish politics Solidarity's role is somewhat limited, and it has reverted back more toward the role of a more traditional trade union than a political party. The summer of 2005 marked the 25th anniversary of the Solidarity movement, and was a time to remember the hardships of its humble beginnings and to celebrate the changes those hardships inspired across the continent” (Local Life 1). Many of those changes are still being felt today across Eastern Europe.
Sounds pretty good right? Well, unfortunately, not all of those points are in sync with reality and others don’t take into account the future.
Final thoughts notice that I kept the discussion a non-technical as possible, focusing instead on business and strategic issues. I also provided a minimum of financial information and only when it supports my discussion. I've tried to think each major issue through, making logical connections between different facts as well as making some logical assumptions.
This paper will focus on assessing the advantage and disadvantage of tax incentives. It discusses some certain types of tax incentives to determine whether they are effective or not. It also gives example of situations in which tax incentives take place. Finally, this paper proposes some ideas about how to use tax incentives as the effective tools to promote economic development and avoi...
This situation has been created due to conflict and unstable political situation in the country. There's no unity in the national policy. Multi dynamic donors only look at the government. Government is supposed to fulfill all their terms and conditions. The main problem is that we only consider donor as a source. But in some situations, even government fails to abide all the terms and conditions of the donor. Along with the political instability, even policies kept on changing. There's a need of policy and mutual unity. Government is itself penniless; in this situation the terms of donor get the upper hand. There should be proper cooperation between government and the political parties; otherwise the project cannot be constructed. The conflict in the nation really degraded the willpower in the countrymen.
the company can attempt to reduce the impact with a better defined strategy. Many firm-specific issues can
The Canons of Taxation is associated with the tax rate, method and its collection. A better way to define canons of taxation is the properties or features possessed by a good tax. These features are recognized as canons of taxation only if applied to a solitary tax. The mixture of different taxes with different canons included is deemed a good tax system. Hence, canons of taxation are used by the governments to collect and impose taxes. The process of taxation increases government income but there is also a downside to it. The government’s investment might be affected in a negative way. A balanced strategy should be developed by the government before the socioeconomic activities in the country are badly affected by the aftereffects of taxation.