What is the right way to decide where to do business

Assignment Help Operation Management

Reference no: EM132102112

What Is the Right Way to Decide Where to Do Business?

When a company is looking for ways to improve profitability and thereby increase returns on investment to its stockholders, the company will often seek new places to do business, including countries where it is not currently doing business. Assume that the company has decided to start business operations in one additional country but has not decided which country. The company is deciding between Country A and Country F. Setting up operations will cost about the same in either country. Country A has a very low risk of corruption; its CPI is 8.5. On the other hand, Country F has a very high risk of corruption; its CPI is 1.4. Country A is a smaller market than Country F. Projected sales revenue in Country A is $1 billion. Projected sales revenue in Country F is $2 billion.

Point Team

A business has an obligation to its owners to make a profit and thereby provide the owners with a return on their investment. Because Country F offers the potential of twice the revenues of Country A, the company should set up operations in Country F.

Counterpoint

While Country F offers the possibility of twice as much revenue as Country A, the risk of corruption in Country F is several times higher. If the company establishes business in Country F and later becomes involved in corruption, the company could lose all its extra profits settling court cases and paying fines. The safer route would be to establish business in Country A, where the risks of corruption are much lower.

Question: How to defend point team? In what ways point team can argue from? Since I am a safe player, I do not support the idea of the point team but my teacher set me up on the point side,

Reference no: EM132102112

Questions Cloud

Explaining strikwerda ideas-talk about them in business : After explaining Strikwerda’s ideas, talk about them in a business context and – using Williams – discuss how a manager finds balance.

Create uncertainty within MRP system : Identify two challenges that could create uncertainty within a MRP system.

Mixes specialty drinks out of grape and guava : SWEET FRUIT CO (SF) mixes specialty drinks out of grape, guava, and papaya juices.

Primary shopping difference between hispanic and anglos : On the basis of the available data, what are the primary shopping difference between Hispanic and Anglos?

What is the right way to decide where to do business : What Is the Right Way to Decide Where to Do Business?

Strategic talent management model : "The Great 8 Compensies Model" / "Strategic Talent Management Model,"

Explanation of the different system layers : You will want to include an explanation of the different "system layers."

What role do these play in strategic decision making process : Describe the four functions of management. What role do these play in the strategic decision making process?

Means of differentiating products and services : Consider the many means of differentiating products and services. Which technology brand does the best at impacting consumer buying decisions? Why?

User Account

All Pages