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From the high-interest rate expenses, SAT may face liquidity problems and risks. This risk will make SAT lack sufficient funds to facilitate its ongoing operations
The main drive towards investing is the desire to create value. Therefore, some of the financial issues that Darby would be concerned about are the future returns that this investment will earn it. In addition, it will be concerned about the initial investment cost and the shareholding. Besides, Darby will study the past financial performance of SAT through both trend and ratio analysis in order to make an informed decision. The legal issues to be considered revolve about the nature of the relationship being created with regard to the Brazilian Company Law. This will involve issues to do with the minimum shareholding and control, rights and duties of each party. Closely to this are the governance issues that Darby will have to consider. I order to ensure that its interests were taken care of, it could be concerned that it is represented by demanding key executive positions and board seats (Applegate and Minardi).
Darby is likely to reap immensely big by investing in SAT. This will arise from the already proven track record, and milestone SAT has taken to be among the most reputable firms in this industry (Applegate and Minardi). This gives rise to goodwill, which further assures it of continued market expansion and customer loyalty. Its team of able and strategic-minded executives has been screening the market for new opportunities and has diversified SAT’s single commodity to a line of them. In itself, this presents, SAT as a unique investment opportunity. The continued growth and expansion will make the SAT’s stock to increase in price thereby maximizing Darby’s value in it.
However, there are also costs and losses related to this investment. The major losses that Darby stands to face when it invests in SAT are associated with the financial risks. These
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DE Beer’s Diamond Dilemma Pestle analysis of De Beer’s Diamond Dilemma Some of the factors in the macro-environment that affects the various decisions within an organization are political, economic, social, technological and environmental factors. All these factors are can be analyzed using Pestle framework (Gillespie, 2009).
De Beers slowly and steadily ensured that all the diamond mines in Africa, specifically; South Africa was in their control or was working in line with their decrees. Most of the mines in South Africa were bought out by De Beers and the others started working closely with them in order to fix the price for the rough and uncut diamonds.
The De Beers Cartel is a organization that mines diamonds , which was set up by the South African mining magnate, Sir Ernest Oppenheimer, in 1934 ( Stefan 1993 p 5) . Over eighty percent of world sales of rough diamonds are on account of this marketer. One mine in this cartel is the Venetia Diamond Mine, South Africa's largest diamond producer, and the centre of De Beers' investments.
This report envisages analyzing these key issues, discuss the alternatives available to the corporation, identify the best possible course of action and suggest suitable implementation plan where necessary. In the course of such analysis, the report takes into account the different cultural and behvioural factors of consumers and employee groups of Mexico, as they are quite different from those of the United States where Kmart is operating currently.
strength of the organization’s culture by writing short memos to staff members, placing posters in strategic locations in the office and other such activities to reinforce the norms, values, and symbols of the desired culture.
Subsequent to the establishment of the desired
ould undertake first is strategy # 3 as the company’s business model to control and manage the amount of inventory to be sent in the market is no longer effective and the company needs to adopt new ways to regain its hold on the described business model and to stay
This makes third-party intervention possible. In particular, economic issues are other external issues linked to the case, because of the firm’s strong reaction of the failure of advertising campaign.
There are multiple issues involved in the
ndards, what will the company’s operating cycle (OC), cash conversion cycle (CCC), and resource investment need to be under these more efficient conditions?
If in addition to achieving industry standards for payables and inventory, the firm can reduce the average collection
Ruben’s work is extraordinary in terms of how he represents different aspects of the French culture in the painting. For example, as Marie disembarks from the ship, she is welcomed by a man wearing the royal blue mantle which is decorated with
The basic idea behind this movement is to capture and capitalize on the popularity of the current fashion trends. The range present in the fast fashion trends is presented by the established designers during autumn and spring collection of the annual fashion week (Hines & Bruce, 2001).
2 Pages(500 words)Case Study
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