Legal Advice - Berkshire Hathaway Inc - Essay Example

? Legal Advice - Berkshire Hathaway Inc. Task Details Legal Advice - Berkshire Hathaway Inc. One of the major international companieswith headquarters in Omaha, Nebraska in United States is Berkshire Hathaway Inc. This firm is responsible for managing and administration of several different subordinate corporations. In the last 44 years, this firm recorded an annual increase in capital of 20.3% to its owners taking on big amounts of capital and minimal debts. Between the year 2000 and 2010, the stocks of Berkshire Hathaway Company generated a return on investment of 76% against a negative of 11.3%. Warren Buffet is the chairman and CEO of the company and is greatly responsible for a number of investment initiatives. From the start of his business at Berkshire Company, he paid more attention to long-term investments in openly quoted stocks. However, presently his focus has shifted to purchasing entire companies (Sharon, Steven & Corinne, 2002). Currently, the company holds a number of companies comprising of confectionary, marketing, railway, home fittings. It manufactures detergents and is involved in the sale of jewelry. In addition, Berkshire is involved in newspaper printing, production and supply of uniforms as well as numerous local electric and gas utilities. According to a report released by Forbes Global in the year 2000, Berkshire Hathaway was ranked 18th largest public corporation worldwide (Carroll, 2009). Berkshire Hathaway Company revealed their plans to invest a total of $5 billion in in the Bank of America on August 25th, 2011. The Bank of America was at the time experiencing hard economic times. They had been having disputes with regard to how foreclosure practices were managed. Ultimately, this implied that they were also having concerns with their mortgage investors. In total, they had approximately $ 8.8 billion loss and a huge amount of it accredited to the disbursement they made with the mortgage financiers. In addition, the bank of America was also planning to fire several workers. Following the announcement by Berkshire Hathaway to invest in this bank, the shares increased by over 25%. The bigger part of Berkshire India is owned by Berkshire Hathaway. According to a statement released by the Company, another plan with regard to this subsidiary corporation is to sell and supply common insurance merchandises in India via its operational distribution portal. Their preliminary emphasis will be on motorized insurance. However, the firm regularly updates its business model so as to meet the necessities of the fast developing Indian insurance sector. In addition, the firm will advance into health, life as well as travel insurance if they the market turns out receptive as stated further by the statement (Braem, 2009). However, for successful implementation of their plans, there are business regulations that will be observed.Naturally, administrative laws are related to the government as well as the manner its organizational units work. In this perspective, administrative law consists of three precise elements. There are; replication of businesses as per the recommended style, coordination of dissimilar efforts into one bigger organization and continued daily operations of the firm in smooth process to help achieve their set objectives (Twomey& Jennings, 2010). For Berkshire Hathaway Company to operate successfully, they will require licenses and permits that are necessary for conducting their business online or e-commerce business, just like all other corporations. A state business permit is the major document needed for the purposes of taxation and carrying out other basic business operations (Miller and cross, 2013). The firm will also be required to pay sales tax for conducting business online as per the state regulations (Bentley, Galliher & Ferguson, 2007). Berkshire Hathaway Company is advised to comply with the available laws and regulations as operating without license could lead to fine of closure by the regulating authorities. This determines which elements of administrative law will be most relevant to the upcoming initiative and what the impact of those laws will be. For the company to minimize the threat of lawsuits relating to privacy protection, product liability, or intellectual property rights it should also understand the benefits of a diverse workforce. In this regard, the management should use training programs to elucidate the advantages of indulging diverse ideas within the organization. Teamwork policies have been critical in most culturally diverse organizations (Shiller, 2008). When adequately incorporated, the policy helps to develop the feeling and spirit of unity as well as togetherness towards a collective goal. In teamwork, the objective for a collective goal overrides the diversity of members. This forms a quality recipe for competitive advantage within organizations. The vision statements as well as corporate policies should be sound and solid to enhance competitiveness amidst cultural diversity of the workforce (Sharon, Steven & Corinne, 2002). The corporate vision statement ought to be constructed in a manner that reflects the organization’s commitment to cultural diversity. This should be backed-up by a powerful vision. The company’s time-off policies should also prop up cultural uniqueness for holidays as well as religious observances. Other policies should also outline the training of managers on cultural diversity sensitivity. Conclusively, it is recommendable to promote viable human resources practices in the realms of recruitment, training, and evaluation of prospective employees. The legal report focused on Berkshire Hathaway Company in the context of strategic HRM management practices that can be adopted by the company to enhance its workforce provisions. Berkshire Hathaway should implement various HRM management practices in order to remain relevant in the global market. Due to its production and marketing capacity, the organization demands novel HRM practices in the context of HR planning, recruitment of employees, selection criteria, training and development provisions, compensation plans, as well as performance management. As indicated before, for successful implementation of their plans, there are business regulations that Berkshire Hathaway Company will be observed. Naturally, administrative laws are related to the government as well as the manner its organizational units work. In this perspective, administrative law consists of three precise elements. There are; replication of businesses as per the recommended style, coordination of dissimilar efforts into one bigger organization and continued daily operations of the firm in smooth process to help achieve their set objectives (Twomey& Jennings, 2010). This will allow the company to minimize the threat of lawsuits relating to privacy protection, product liability, or intellectual property rights. References Bentley, C. G., Galliher, R. V., & Ferguson, T. J. (2007). Associations among Aspects of Interpersonal Power and Relationship Functioning in Adolescent Romantic Couples. Sex Roles, 57(7-8), 483-495. DOI: 10.1007/s11199-007-9280-7 Braem, D. (2009). Building the next Berkshire Hathaway. New York: Eloquent Books. Carroll, B. (2009). Business & society: Ethics & stakeholder management. Mason, OH: South-Western Cengage Learning. Miller, R& Cross, B. (2013). The legal environment today: Business in its ethical, regulatory, e-commerce, and international setting. Mason, Ohio: South-Western Cengage Learning. Sharon, O., Steven, A. & Corinne A. (2002). Expatriate management "best practices" in Canadian MNCs: a multiple case study". Career Development International, 7(2), 79 – 95. Stroh, L, Varma, A, & Valy-Durbin, S. (2000). "Why are Women Left at Home: Are They Unwilling to Go on International Assignments?" Journal of World Business. 35(3), 241–255. Twomey, P & Jennings, M. (2010). Business law: Principles for today's commercial environment. Mason, OH: South-Western Cengage Learning. Read More