Attract new investors so that they will be able to compete

Reference no: EM133346204

Question: Loeb was demanding that the Japanese firm change its financial and govemance policies...to increase its value. First, make a case for why FANUC should follow Loeb's advice. Next, make a case against following Loeb's advice. Try to make each side as convincing as possible.

With 40% operating margins, strong cash reserves and no debt, there are multiple reasons for why FANUC should not follow Loeb's advice. By changing the company's policy, it is allowing new management to restructure the business that can lead to a weaker financial position for the firm. By getting new investments, FANUC may be diluting its firm and lose control in the company's objective.

To Loeb's defense, if they follow his advice, the company may be able to increase their company's valuation. FANUC must change their policies to attract new investors so that they will be able to compete with their international competitors or they will fall behind.

Reference no: EM133346204

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