Category: Case-Study

Topic: Restructuring-driven outcome

Order type: Case Study

Read this please and then research for a bank in Latino amercia that had to follow the restructuring driven outcome or involuntary M&A and it has to be a case that happened recently starting in 2000 until now whatever case you find its good.

Analyze it with clear pointslike for example: situation, why did that bank ended so bad and had to be “saved”, how was this process than, main banks or persons that heloed in this, how it was solved, how it ended up with this solution and how is doing nowadays.

this is just and example basically divided in the main points wanted but that follow a logic sequence of how things happened one after the other.

dont forget to include tables that are relevant with numbers of how the banks were doing etc.

PLACE AN ORDER TODAY & GET 15% DISCOUNT (CODE GAC 15 )

Topic: Keeping it Real

Order type: Case Study
Paper: Case Studies in Business Ethics, case study “Keeping it Real” p. 313. Write a paper using the structure of the ethical decision model demonstrated in Classes One and Two. Assume the position of CEO Doug Ivester in 1999 just after company officials advised him to resolve the lawsuit filed by Linda Ingram and three other employees.

PLACE AN ORDER TODAY & GET 15 % DISCOUNT ( CODE GAC 15 )

 

Revolutionizing the Retail Sector
Order type: Case Study
The Digipos (https://bit.ly/MOWvG1) Website states, “ We design, develop and manufacture our own range of systems that are engineered to meet the challenging and constantly changing demands of a retail environment. Using the latest technologies, we deliver positive, cost-effective solutions in compact, high performance, reliable, and energy saving technologies. Our systems are used by leading retailers around the world.” In 2004, DigiPos launched the DigiPos Retail Blade system, which was the first electronic point of sale (EpoS) system to use blade technology. Go to Intel’s Website and read “Revolutionizing the Retail Sector”, located athttps://intel.ly/NAfWDs.

1. Examine and assess the main computing problems Digipos faced with regard to system upgrades.
2. Evaluate the solutions that Digipos used to resolve the problem. Propose an alternative solution that you believe could resolve the problem.
3. Compare and contrast the Quantum Blade to the Retail Blade system in terms of computer architecture and system performance.
4. Evaluate the methods that are outlined in the study to reduce the total cost of ownership (TCO). Provide your opinion on whether you believe the methods will or will not work.
5. Use at least three (3) quality resources in this assignment. Note: Wikipedia and similar Websites do not qualify as quality resources.
Your assignment must follow these formatting requirements:
• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format.

PLACE AN ORDER TODAY & GET 15% DISCOUNT (CODE GAC15)

East River Case Study
Order type: Case Study

Please analyse it closely to the case for both questions. Do not simply copy the summary from online materials. More detailed discussion of the Tube Shop itself is needed.
Please also include brief introduction and conclusion for question 2.The quality of the answer is not based on the number of peer reviews referenced, but on the interpretation of relating journals with our case and supporting your final conclusion to the question as a whole.
and can you make it for 650 words please?

PLACE AN ORDER TODAY & GET 15% DISCOUNT (CODE GAC15)

 

A case study of sky west
1. What are the general economic condition of the U.S. regional airline industry macro environment? What is the relationship of the industry to the national and global airline industries……
2.What does a Five Forces analysis of the industry tell you about competition in the regional airline industry…Which forces tend to be the strongest….The weakest…..
3.What factors are causing change in the regional airline industry? What is the individual and collective impact of these changes on the regional airline carriers…..
4.What are the key factors that determine success for the companies in the regional airline industry?
5.what is skywest, Inc.’s strategy? What kind of competitive advantage is it trying to achieve?
6.What is skyWest’s competitively important resources and capabilities? What are its resource weaknesses and competitive deficiencies? Its market opportunities? Its external the threats…..
7.What does an analysis of the SkyWest, Inc.’s financial statements reveal about the company’s performance…..
8.What recommendations would you make to the management of the SkyWest,Inc. to strengthen the company’s competitive position and improve its financial performance…..

 

References

Platzer M. (2009 Dec). US Aerospace Manufacturing: Industry Overview and Prospects. Congressional Research Service

SkyWest Inc. News Release. (2011) SkyWest announces third quarter 2011Results. Retrieved February 6, 2012 from http://inc.skywest.com/invest/investor_releases/SKYW%20Earnings%203Q11v3.pdf

Swaim R. (2009)The Strategic Drucker; Growth strategies and Marketing insights from the works of Peter Drucker.

USA Today. (2009). Airline industry changes raise safety issues. Retrieved February 6, 2012 from http://www.usatoday.com/news/nation/2009-05-16-airline-pilots_N.htm

PLACE AN ORDER TODAY & GET 15 % DISCOUNT (CODE GAC 15 )

 

 

Team Building/T?eam Performanc?e and the improvemen?ts for both
Investigate professional journals and locate two(2) articles pertaining to Team Building and/or Improving Team Performance. Both articles should be critiqued accordingly. They should as current as possible but less than three years old. APA Style of course, double spaced, and in at least four parts; Introduction, Summary, Review and Evaluate,a nd finally, the Conclusion. The articles themselves should be approximately 4 pages and the resulting critique should be no less than 2-3 pages in length……………..

 

TEAM BUILDING AND TEAM PERFORMANCE ARTICLE CRITIQUE

Introduction

The first article on “Service innovation: why is it so difficult to accomplish?” the author introduces the reader to service innovation where he highlights it as being vital in achieving an advantage over competitors. He reiterates that these services are essential in manufacturing companies. Managers are however not realizing the importance of service innovation in investment decisions. Manufacturing and traditional service providers are the people who are utilizing these innovations though only in product development other than in cost reduction (Dörner 2011).

The second article “”The relationship between transformational leadership and employee desire for empowerment” the authors introduces as to the topic employee empowerment where the employees’ who interact more with clients and management require empowerment to continually deal with challenges that a rise due to customer’s changing needs. They need empowerment to tackle pressure as a result of urgent expectations from clients to improve on service delivery. Transformational leadership is defined by the authors as the process of influencing main changes in the position and postulation of the members of organization to commit to its objectives (Gill et al 2010).

 

Summary

 

The main factors that lead to success in service innovation have been identified as people related factors and structural factors which the author gives an example of creativity techniques such as brainstorming, instruments screening to identify ideas that are promising and guidelines and rules in determining the process of development. Deficiency factors have also been spotlighted which include failure to defend services, inadequate organization attachment, lack of systemic in the innovation itself, less contribution by the customer and failure to eliminate bad ideas. Recommendations given comprise of defining fresh services, developing fresh services and launching them in the market.

 

The second article is all about team building in transformational leadership in hospitality industry. Cultural power distance is said to affect the psychological course of an individual at work. In this case individuals expose uneven power distribution. However lower rank employees respect the top management. Transformational leadership is reasoned to create strong relationship hence dampening the cultural distance power. Besides, many powers have been identified to create barriers in transformational leadership. Communication is the key to breaking these challenges.

 

Review

In developing innovative services there is normally a chance of reducing erosion of prices in the main business. Nevertheless, the new services should not be purely cost drivers but should give value to customers. Social networks is critical in monitoring customer’s response hence should be carefully and technically managed for effective fit into global competition. The managerial deficiencies can be dealt with effectively with increased team performance. Various departments must collaborate in securing the patent of firms’ product to avoid product imitation and to foster investment. Resource budgeting should be effective to prevent misplacement of resources in unproductive ventures leaving productive ones untapped.

 

 

It is normally hard for most managers to apply the use of transformational leadership as some employees usually watch for management style alteration with uncertainty. It is required of senior management to support and back this type of leadership since transformational leadership conducts are easily adaptable. In implementing transformational leadership communication must be upward not just downward. Listening skills must be practiced effectively to enhance communication. Cultural difference should foster respect and concern for employees’ personal feelings and on ground training and coaching of every employee in service.

 

Evaluation

As provided in this paper, the five management inadequacies must be plainly reviewed by management to find appropriate solutions for them. This can only be achieved through team performance and coordination which will require of cooperation of all departments to ensure success of firm’s performance. The recommendations provided on defining the new service, developing it and launching it are appropriate for any manufacturing and service delivery firm. This will enable the firms to correctly analyze cost incurred at each stage to easily incorporate it in product’s price.

 

Despite championing for this type of leadership, not all organization may accept or apply it in the management of their affairs. It may only apply to hospitality industry like tourism, hotel management and other social service delivery. Other sectors like financial service providers may be inappropriate to apply employ empowerment. Bureaucratic type of leadership is will be applied due to technicality involved and so decisions must propagate from one manager who may delegate part to other senior managers.

 

 

 

 

Conclusion

In enhancing team performance, service innovation is important. Service innovation must be critically analysed to identify customer’s changing tastes to provide timely products in right quantities and price to sustain customer loyalty. Allocation of resources and IT-supported social networks will enable a firm position itself among its main competitors with team performance.

The second article emphasizes on team building subject compared to the first article which stressed on team performance. In team building, the main strong hold should be on employee empowerment and use of transformational leadership to give them power to meet the short term challenges encountered. Caution must however be applied that managers should comprehend the impact of using transformational leadership and their urge to use it.

 

Reference

Amarjit Gill, Stephen Fitzgerald, Smita Bhutani, Harvinder Mand, Suraj Sharma, (2010) “The relationship between transformational leadership and employee desire for empowerment”, International Journal of Contemporary Hospitality Management, Vol. 22 Iss: 2, pp.263 – 273, Emerald publishing Group.

Nadin Dörner, Oliver Gassmann, Heiko Gebauer, (2011) “Service innovation: why is it so difficult to accomplish?” Journal of Business Strategy, Vol. 32 Iss: 3, pp.37 – 46, Emerald Publishing Group.

 

Order with us now

 

 

Social Welfare In the 20th century and Beyond
Discuss the Social Welfare in the 20th Century and Beyond……………….

Table of Contents
3 1.0 Social Welfare in the 20th Century and Beyond
3 1.1 Introduction
3 1.2 Research topic
4 1.3 Documentary sources
6 1.4 Summary
7 1.5 Future plan
8 1.6 Conclusion
9 Reference

1.0 Social Welfare in the 20th Century and Beyond

1.1 Introduction
This review will address the social change and will also look at how the social change has affected the economic and political system with time. It will show the importance of studying social change because it will help us understand many topics which will explain the success rate and the rate of failure in globalization, in the political systems, development and economic growth and democratisation. The ideas behind these concepts are all rooted in the idea of social change.

1.2 Research Topic
The single event that has affected the life of most people in UK and the Western civilisation for that matter has got to be the social welfare schemes. The scheme has been important to particularly in elevation of poverty and provision of public education on issues related to the well being of an individual. Additionally it has been used to bridge the gap of poverty that exists in society by making sure that the basic necessities are provided to the public. The topic has been chosen because of the sensitivity surrounding the issue. The social welfare has served the Western countries and has been the subject of envy by third world or developing countries. However, the Western governments are on record expressing their dissatisfaction with the program. In fact they are thinking of eradicating the program altogether. However, should this be the case? To try answering this question, this paper will try by looking at the history of the social welfare and its present in a bid to try speculating its future.
1.3 Documentary sources used
To achieve the objectives of this research paper, documentary sources were used. In particular: I used the book Family, Dependence, and the Origins of the Welfare State by Pederson, and also the book Social Policy in the United States: Future Possibilities in Historical Perspective by Skocpol Theda. The first book is important as it explains the history of the social welfare particularly during the 20th century which is the main period under investigation. The second book is also important as it tries to explain the future or social welfare particularly during a time when the importance of social welfare is under heavy criticism.
Most of the information relied upon for this paper was found from documentary sources. Social researches usually need in-depth interviews and observations. However, documentary sources are also effective (cost-effective) than the actual interviews and analysis (Bailey, 1994). It is used to categorise, interpret, investigate and also used to identify the limitations of the physical sources which have been written most of the times in public or private domain. The documentary sources have been helpful in social research as the social surveys because it can also be adopted as a scientific method that also needs meticulous adherence to research protocol. Furthermore, even scientist have used documentary sources to supplement the information they collect through social surveys and the information gathered during the in depth analysis that they undertake in the course of their research work.

Karl Marx for example made use of documentary sources and also made use of other official reports in his writings. Apart from using legislations he also made use of newspapers and periodicals. Emile Durkheim also made extensive use of documentary sources. Durkheim’s work Suicide is in fact considered as a modern example that brings linkage between use of data by inference and data by methodological perseverance.

1.4 Summary
The success of any economic growth will depend on a number of factors key amongst them including technology, natural and social resources. Very few countries however take full advantage of their resources and technology to realise the change so much sought. Having customs and values that favour accumulation and capital development is essential for a social system compatible for growth. This is a core element for successful resource utilization, because a flexible political and economic system is fundamental for the process.
Change is a very complex process and for to be realised, many aspects have to be factored in. For instance, technology and availability of resources, demography, economics and politics are all important aspects to be considered. Other change aspects are always viewed as predictable and systematic. On the other hand, other changes are considered coincidental and very random.
The modern state of the social welfare can be attributed to three periods in their historical development. The first can be traced to the early and mid- 19th century in Central and Western Europe and in North America. During this period a variety of social insurance schemes were created by some reformers to cater for the needs of the aged and a selected voluntary market based remedies. The organisations also were designed to cater for the mentally ill while promoting public health simultaneously. Moreover they also warded off epidemics and the participated in expansion of public education and improving the state of life of the poor people. These activities were experienced to what was referred to as the democratic idealism and liberal age. The social welfare institution therefore expressed the spirit of these ideas in that particular age.
The second period can be traced back to the 1870s to the 1920’s. Most of the European countries had social insurance schemes which had incorporated in them various groups and therefore reflected some notions of hierarchy and efficiency.
The third phase can be traced to 1930 during America’s Great Depression. As the name suggests it affected most of the American States since they had even established a very extensive Social Security program. Most of the Central and Western Europe were also affected as they had in the wake of the 2nd World War embraced a social welfare state.
Between 1990 and 2000, however, many of the European nations and the United States have criticised the welfare system and suggestions are there proposing a change in the modern social welfare which might see the evolution of social welfare as it is known today.

The watchdog for this age was the idea that the private sector and government could work together. During this period, most of Europe was engulfed in war and the Marshall plan was instituted to help rebuild the whole of Europe. The plan had laid the political reform base and it had also provided a platform for a rigorous welfare state. The Labour Party in Britain had assumed parliamentary control and the government for that matter enacted laws which saw the extension of the welfare states by calling for the nationalization of specific industries and it also created the National Health Service in 1948 (Pedersen, 1993). This helped in enrolling doctors into the state’s payroll and it also began to further public education. This allowed most families to have larger families because there was a guarantee of better provision of healthcare systems. The welfare schemes we also important in provision of sanitation and expansion of public health as well as providing other welfare services. All this factors combined helped in population increase especially after the two World Wars that engulfed a greater part of the European continent. Other European countries like Sweden and France used the system to provide family allowances and helped to make sure that poverty was eradicated for the sake of the children. Furthermore, they were involved in provision of day-care centres and provision of free higher education amongst other provisos.

1.5 Future plan for social welfare.
The welfare system has however, in the 21st century been revolted against. It has been considered to be an unnecessary expense particularly to the Underdeveloped countries (Skocpol, 1995). For the developed countries it has been seen as an expensive investment. The reason behind this view especially amongst developed countries is the aging population which is deemed incapable of contributing to the social welfare scheme. The future of social welfare is not very certain. Governments keep changing policies and they have shifted their minds from concentration on health to areas like defence which require a lot of money to implement at the risk of the health systems and the social welfare of a country’s citizens.

1.6 Conclusion
Social welfare from the information gathered has an important role to play in the society. From its onset it has seen that the aging in society receive adequate care. Furthermore, it has helped in the realisation of proper healthcare amongst the poor in society. Abolishing it at a time when the global economy is in shambles would spell doom especially to the unemployed in society. Affording healthcare services amongst the poor and unemployed would be almost impossible. Furthermore it would be unfair to subject the same people who contributed diligently when they had gainful employment to the welfare to a life of difficulties. Doing this would only characterise people as important to the government only if they have gainful employment and contribute to the social welfare. Furthermore, every person has got the right to health amongst other rights. Some realise these rights through the social welfares, therefore abolishing it would be violation of the constitution. The social welfare has not outgrown their usefulness and they should remain put. What should change are the policies.
References

Bailey, K.1994, Methods of Social Research, Fourth Edition, New York: The Free

Press.

Pedersen, S. 1993. Family, Dependence, and the Origins of the Welfare State: Britain and France 1914–1945. Cambridge, UK: Cambridge University Press.

Skocpol, T.1995. Social Policy in the United States: Future Possibilities in Historical Perspective. Princeton, NJ: Princeton University Press.

Press order button now………………….

 

A Case Study of SkyWest Inc.
1. What are the general economic condition of the U.S. regional airline industry macroenvironment? What is the relationship of the industry to the national and global airline industries……
2.What does a Five Forces analysis of the industry tell you about competition in the regional airline industry…Which forces tend to be the strongest….The weakest…..
3.What factors are causing change in the regional airline industry? What is the individual and collective impact of these changes on the regional airline carriers…..
4.What are the key factors that determine success for the companies in the regional airline industry?
5.what is skywest, Inc.’s strategy? What kind of competitive advantage is it trying to achieve?
6.What is skyWest’s competitively important resources and capabilities? What are its resource weaknesses and competitive deficiencies? Its market opportunities? Its external the threats…..
7.What does an analysis of the SkyWest, Inc.’s financial statements reveal about the company’s performance…..
8.What recommendations would you make to the management of the SkyWest,Inc. to strengthen the company’s competitive position and improve its financial performance…..

Answer:

A number of external factors have affected the US regional airline industry. Most of these factors are detrimental. The prevailing economic times are hard, forcing major stakeholders in the industry to look for better strategies to cope. One major issue is the increased and the fluctuating cost of fueling the jets. This forms a bulk of the expenses of the regional airlines. According to Platzer (2009), there has been a rapid decline in the number of planes ordered by regional airlines (p. 6) owing to the cost of acquiring funds to purchase new and more effective jets. Most regional airlines are still recovering from the economic recession that was with us a few years ago. New regulations have been put in place which require the airlines to comply with, further increasing costs incurred. Enhanced security has become a priority following terror attacks. This has resulted in long checks for customers, a bother which has made a lot of clients reluctant to travel because of the hustle involved. The entrance of new manufacturers of jets into the market could turn out to be beneficial to the industry. We might have better planes at a lower cost.

These economic factors have not spared the national and international airlines, with most of them having to drop some of their flights. New collaborations with regional airlines have become necessary.

A five forces analysis of the industry indicates that most of the factors are relatively stable. The strongest forces are the supplier and buyer powers. Though SkyWest has reliable suppliers for its jets, factors such as the cost of fuel and maintenance costs are key concerns, especially for the older jets. SkyWest faces stiff competition from the existing airlines such as Southwest, Frontier and Midwest airlines. New players and substitute problems are the least likely forces to affect the industry. It is very hard for new entrants in the market to prosper. Customers do not prefer to use rail, road and water transport as substitutes to air travel due to the many inconveniences. Air travel is convenient, fast, safe and quite affordable.

A variety of factors are responsible for the changes being experienced in the regional airline industry. One such force is the difficult economic times. Major national airlines have been forced to abandon some flights, thus creating more room for growth of the regional airlines as they attempt to cope with the expanding market. In a bid to cut down on costs, national and global airlines have entered into agreements with regional airlines. The political climate has also changed how the industry conducts business. According to “USA today” (2009), “aviation industry experts said the changing conditions reflect the broad restructuring of the industry after Sept. 11, 2001, when air travel dropped sharply and major airlines began pairing with regional ones.” (para 4)This reflects how terrorist activities affected the industry. These changes have impacted strongly on individual airlines, with some having to close done operations while creating opportunities for others to team up with global airlines. Most had to find coping strategies, as the impact was apparent across the whole industry.

The key factors that determine the success of companies in the regional industry include the ability to utilize economies of scale, capacity to enter into agreements that benefit both parties, the capability to adapt promptly to adverse outcomes and investing on strategies to fight off the stiff competition. Strategic and contingency plans are essential for success.

SkyWest’s strategy is to increase its customer coverage base by entering into partnerships with other major airlines while acquiring new operations. It has contractual agreements with United Airlines, Delta Airlines and US Airways. It also recently acquired ExpressJet Airline. The strategy is to cut down on costs while bridging the regional gap. Having contracts with large couriers diversifies its risk. It does not have to depend on one big client. Rather, it has many reliable customers. Its strategy is meant to establish the company as the number one regional airline in the United States. Its customers can go to more destinations at reasonably fair SkyWest greatest capability is its attractiveness to global airways. Its capacity to maintain a variety of well maintained and constantly upgraded aircrafts enabled it to be the choice of major airlines seeking partnerships. Its pilots work on a non union contract since its inception, a fact which gives the company a strong advantage. Its major weakness is its history with flight cancellation, delays and bad luggage handling. The delays could be attributed to large aircrafts being given priority in landing as opposed to the small airplanes. Contracts with global airlines undermine the independence that regional airlines would desire. Flight schedules and landing privileges are also affected. Its market opportunities are enhanced. Threats, especially in form of competitors, are rife.

An analysis of the company’s financial reports shows that the recent acquisition of ExpressJet Airline has brought significant changes in its operations. According to “SkyWest Inc News Release” (2011),”during the quarter ended September 30, 2011, SkyWest experienced a reduction of approximately $41.4 million in pretax earnings compared to the same period the previous year.” (para. 2) This reduction in profit was largely attributable to its acquisition of ExpressJet Airline, a move which increased its operating costs. The company had to bear a loss from the new acquisition. Given the circumstances, this is not good, but it is not too shabby either.

My recommendation is that the company should prepare for future acquisitions more vigorously. I believe the company did not fully consider the implications of the action. This has resulted in a big blow, which might be difficult to recover from. Reaching out to other airlines and creating more contractual agreements will strengthen its position as a regional airway.

References

Platzer M. (2009 Dec). US Aerospace Manufacturing: Industry Overview and Prospects. Congressional Research Service

SkyWest Inc. News Release. (2011) SkyWest announces third quarter 2011Results. Retrieved February 6, 2012 from http://inc.skywest.com/invest/investor_releases/SKYW%20Earnings%203Q11v3.pdf

Swaim R. (2009)The Strategic Drucker; Growth strategies and Marketing insights from the works of Peter Drucker.

USA Today. (2009). Airline industry changes raise safety issues. Retrieved February 6, 2012 from http://www.usatoday.com/news/nation/2009-05-16-airline-pilots_N.htm

 

Press order button now…….

Order your paper now……..

 

Off Shoring
There has been a lot of discussion in the news about all of the jobs that are moving overseas (Off shoring) and being lost here in the USA. Some of what is being reported is accurate and some of it is not. Your paper will be to research and discuss the issue and give me your conclusions. Your paper must contain as a minimum the following six section headings (you may include more headings if you wish): 1. Introduction 2. Evolution of Off shoring 3. Types of Jobs being Off shored 4. Advantages of Off shoring 5. Disadvantages of Off shoring 6. Conclusions………………….

PLACE AN ORDER TODAY & GET 15% DISCOUNT (CODE GAC15)

The Negotiation Strategy
English (U.S.)

Dear Sir, We have a course called Cross Cultural negotiation & Management. This course basically develops the skills of how to negotiate and deal with business`s issues (it does not has to be business) in terms of culture across the world. Each week we have a negotiation practise in a particular topic with another group. For example, negotiation about buying a car (we could be the seller or the buyer), a debate between the government and the community (we could be the government representative or the community) and so on…Every week, each group has secret information about the weekly negotiation ( it will be attached ). We are students who tend to get high marks in this course so please take everything seriously. The following is a required of the negotiation task and what we want you to do exactly. Required:

A- Please read the attachments carefully which is the secrets information. B- Writing Group’s negotiation strategy (our strategy in this negotiation) we going to follow it and it will be given to the professor before the negotiation (as a helpful document we will attach…………….

 

 

The Company aims to close down 30 mines as continued negotiations are underway to close the remaining 10 mines. This will imply the company may lose some points in the bid for the joint venture. If other favourable terms are reached after the deal then the company will be more willing to close down the 10 remaining mines to expand its territory. Besides, the company will train 150 Engineers in the safe mining technology. The Engineer trainees will be working for the company as they are being trained for some small allowances until they complete their training. The trained Engineers will then continue being part of the work force reducing the cost of taking outsiders who are then deployed to other companies. This has the implication that we lose no point on the evaluation.

In addition, the company will only finance 10 million AUD towards the upgrading of the existing railway track. The company can gamble to lose the some points putting in mind that the cost of investment is at stake here. The funding can not be done at once but rather it may be done in two phases in a span of two years since the starting cost is usually unbearable for the first few months or years. Finally, the profits will be shared on a fifty-fifty basis but with the conditions that Datong Mining will accept to consider the type of risks Fernet Brios has encountered. Datong mining should agree Fernet Brios to deduct from the profits the cost related to the risks before the final net profits are shared. The company aims to score 75 points from the negotiations.

The Negotiation Plan

The company views that by closing down the 30 mines and laying off 2000 workers is a fair deal to help reduce the labour cost and boost on its profitability. It is with the company’s opinion that the 150 Engineers who will receive scholarship in training will be picked out of the 2000 remaining workforce. These Engineers will be immediately incorporated as part of the work force in the joint company after the training maintaining the 2000 workforce retained earlier on. The company hopes by financing the building of the railway track with 10 million AUD the government will reduce the percentage of tax the company will pay out of the profits realized. Fernet Brios Company expects the Datong mining company will use its close relations to the government to make a better and quick agreement for the licensing and access to the mining.

It is also a concern that with the fifty-fifty share profit and the conditions attached to it will be the standing point of the Datong mining company. With the share of profits it is expected of Datong to use its influence to reduce the level of risks and the cost of investment because the risks will determine the profit they will obtain. The agenda of the company provides the following;

Strategy for the closure of small mines

Fernet Brios aims to close down 30 mines and immediately put up a large scale surface mine to increase production from 0.5 to 5 million tonnes per year in the first one year and further to 10 million tonnes per year in the consecutive years. The amount being injected into the project is a sum total of 56.9 Billion AUD to finance the initial stages of the project. Further investment will be made as the project will pick up to its maturity. The large surface mine is expected to be fully operational after six months of construction which will meet the rising demand for coal electricity production. The wish of the company is to have 1000 employees on board but for the interests of the citizens, the company thought it prudent to layoff 2000 employees and retain the rest 2000. The employees will be subject to monthly salaries and health insurance to cater for their medical services.

The joint venture plans to import some raw materials while the rest will be acquired locally to promote the local industries. The closure of the current small mines is scheduled to take place immediately the deal is done and the access rights have been approved by the relevant authority. The closure of the 30 mines is expected be done in two phases within 6 months after the approval. The first phase will see to the pulling down of 15 mines and commencement of the construction process. It is to the wish of the company that the government will approve the access rights within a reasonable time to avoid delay of the production process. The Joint venture has a full capacity of resources and manpower to perfect the project with minimal delay. The Joint venture remains optimistic towards the success of the project and acceptance of the proposal for the betterment of the host government’s welfare.

Commitment to scholarships for training in mining safety

The joint venture remains committed to offering scholarships for training in mining safety to 150 Engineers. This will be done on yearly basis to give scholarship to any potential young Chinese working with the company. Every year the company expects to give scholarships to two young promising Chinese staff working in the company in the University of New Castle. The scholarships will be open within the work force where the company will provide both work and training to them to equip them with the necessary skills in Mining safety. The Joint venture aims at balancing both the female and male trainees to enhance gender balance. Besides giving scholarships the labour force that remains will still receive special training to attain skills necessary in handling of coal and the electricity manufactured. The company believes in giving quality products which are timely and suites the needs of the people. It is for this reason that all the employees will receive basic training and skills necessary to perfect the work performance.

Moreover, the coal production and electricity produced is meant for both local market and foreign market. The joint venture aims to go international in the distribution of the products therefore it will require to produce products that meet the international standards. It is only qualified and skilled personnel who are in a position to handle the quality aspect. Therefore, training can not be denied to the work force as the company commits to implement it once the approval is complete. There are no intentions whatsoever to import expatriates to handle the job but the company believes the local residents will leave up to its standards through the training and the scholarships offered.

Railway track upgrade

An estimated AUD 10 million will be set a side towards the renovation and upgrading of the existing railway track. This amount will be withdrawn from the initial investment of 56.9 Billion AUD set a side to finance the project. Since the production is expected to increase with the setting up of the large surface mine, investing in the railway is part of company’s priorities to have an efficient transport system for coal. As the production levels increase, the company expects to export most of the coal to the international markets. Coal being heavy and more durable mineral the appropriate means of transportation will be rail transport. Considering the status of rail transport, it is to the concern of the joint to improve the railway transport to facilitate easy transit of the coal to international via the rail.

The company proposal to invest in China has already done a cost-benefit analysis and determined that the project is viable and manageable. The rail will run from the Northern China to connect with the Pacific Ocean where it can be shipped to different foreign markets. The production level as mentioned earlier, will increase from 0.5 million to 10 million tonnes per year will call for special wagons for ferrying coal there by becoming the prerogative of the company to build a sustainable railway transport to meet its target objectives.

The company expects favourable government consideration in approving the proposed project to enhance a stronger railway network in the host country. This can be achieved if the Chinese government with the help of their experts and the joint ventures’ management can review the cost benefits of the proposal presented to them for the joint venture. The joint venture therefore calls for the Government to carefully access the proposal presented to them for effective analysis and approval.

Splitting of profits

The joint venture has the intention of sharing the profits on a fifty- fifty basis. Nevertheless, the final split of profits is subject to the financing arrangement between the parties involved and the risk exposures subjected to. Datong Mining Company has a less exposure to risks being the home Company and enjoying the Government support. Fernet Brios being the foreign Company is exposed to various risks (Gennard 2008) inclusive of foreign exchange risks, debt financing, political risk and the economic risk. These risks affect the profitability of the whole venture. After all the expenses are catered for and the net profit determined, it will not be prudent to share all the profits remaining on a fifty-fifty terms.

The two alliances must agree to share the profits on reasonable terms. The sharing of profit will be done in such away that the cost of risks involved will be taken care of to permit the sharing of the existing profit margin. All the risks must be shared as well as the returns from the venture. A good proportion of the profit shared will be repatriated back to the country of origin to help in developing the University. Part of the profit will be reinvested back into the host country for infrastructure development and education process. The company expects the host government to offer them favourable terms in matters concerning tax remittance. The Joint venture is positive that if approved it may go into negotiating deals with the Government on how the tax remittance can be conducted and what procedure to follow in paying the taxes. The Company therefore is offering the stakeholders a take or leave ultimatum (Das, Kumar 2007)

The company is sending a team of two gentlemen and two gentle ladies from the Finance department, accounting department, marketing department and operation department for the negotiation deal. The four have experience in their area of jurisdiction to review cost and benefit analysis of the whole project. The team will be expected to send a full detailed report to the board of Directors ready for approval. A deal is expected to be reached by the end of today at 1440 hours. The team has the relevant documents to be signed by both parties when the deal will be sealed. The contract forms must be filled and signed in triplicates where one copy should remain with Datong mining Company, another copy to be handed to the host government’s relevant authority and the last copy to be taken back by the team for verification.
CONTRACT OF BUSINESS MERGER BETWEEN FERNET BRIOS AND DATONG MINING COMPANY

I Mr/Mrs/Dr/Prof—————————————————–on behalf of Datong Mining Co. agree to the terms offered by Fernet Brios Mining Co. for

v Closure of 30 mining companies and setting up of a large scale mining company

v Commitment to Scholarships of 150 Chinese staff for training in mining safety

v Upgrading the railway track to a total amount AUD 10 million

v Division of profit on a fifty-fifty basis subject to risks and the cost of investment injected in the project.

To form a joint venture towards exploitation of coal minerals in the Republic of China for a sum total of 56.9Billion AUD. This is with approval of Government Agency under the ministry of industries and mineral exploitation. The terms and conditions apply subject to fulfilment of the contract negotiated on the table.

 

SIGNITORIES

Management Fernet Brios Ltd Management Datong Mining

Mr/Mrs. ———————————– Mrs/Mrs—————————–

Sign —————————————— Sign ———————————-

 

Reference

John Gennard (2008), Negotiations at multinational company level, Employee Relation

Journal Vol. 30 No. 2 PP. 100-103, Glasgow UK, Emerald Group Publishing Limited

T.K. Das, Rajesh Kumar (2007), Inter-partner Negotiations in Alliances: A Strategic

Framework, Emerald Group Publishing Limited

 

Please order with us no

PLACE AN ORDER TODAY & GET 15% DISCOUNT (CODE GAC15)