Should the firm increase or decrease r and d spending

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Recommendations and justifications for IBM International Business Machines. NO copying and PASTING from sites. Please make sure you include justifications for your recommendations. Any reference in APA.

1. RECOMMENDATION #1: Should the firm increase their capital expenditures to increase competitiveness? This will almost always be true but what segments of the business get the most capital allocated to them and why?

2. RECOMMENDATION #2: Should the firm increase growth by acquiring other companies for synergies or grow internally? Do they have the infrastructure to grow internally? If they get acquired by a competitor, how will the merger be integrated in regards to culture, overlapping businesses, etc.

3. RECOMMENDATION #3: Should the firm risk increasing their leverage (debt) to increase earnings and return on capital or keep the leverage the same (or even decrease it). If so, why and by how much.

4. RECOMMENDATION #4: Should they increase marketing spending? If so, by how much and where should it be allocated. Should online marketing spending and international marketing increase by more than print ads? Justify any additional spending that is recommended.

5. RECOMMENDATION #5: Should the firm increase/decrease R&D spending? If so, by how much. At what level do you feel your chose firm would be spending too much on R&D.

6. RECOMMENDATION #6: How should they go about controlling costs including labor, health care, and pension liabilities? (GM and Ford need help in this department).

7. RECOMMENDATION #7: Should the firm expand overseas? If so, which markets should be focused on first and why?

CONCLUDING THOUGHTS ON THE FUTURE OF YOUR CHOSEN COMPANY

Reference no: EM13909369

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