1. For number one, you will need to conduct some outside research. Also, consider chapter 11 and Table 11.5. Your organization (an American Manufacturer) is considering going abroad. After careful consideration, the organization has determined two finalists for its global expansion: New Zealand and United Arab Emirates. Your organization has determined that the product that the company manufacturers would be a good fit in either country. The question your organization is pondering is which country would be a better fit from an external/industry environment perspective as well as a cultural perspective. Based on the text and outside research, identify, and compare cultural similarities and differences as well as external/industry factors between New Zealand and United Arab Emirates. and determine which country would be a good cultural fit for your American organization?
2. Consider the following scenario. This is not factual. This is a scenario. American Airlines is considering purchasing Sun Country Airlines. Sun Country has indicated they are willing to sell the organization for a discounted premium amount. After months of discussion, the discounted premium amount has ranged from ten to twenty-four percent. Two weeks ago, American Airlines agreed to purchase Sun Country Airlines for the discounted premium amount of thirteen percent. Currently, Sun Country Airline’s stock price is $19, and they have 11,800,000 shares of outstanding stock.
Based on the data provided, what is the amount American will buy Sun Country for? Show the Calculations.
3. Corporate Tax Rate. As stated in the countries have different tax rates for various reasons. Consider this. What would happen economically to corporations, employees, and the communities where the organization serves if corporations were totally exempt from paying taxes?
4. According to research, during good economic times, those earning $115,000 to $150,000 annually, and considered middle class, are more likely to purchase an automobile that is a little out of their price range because they have extra money. Those that earn above $500,000 a year, and are considered upper class, are not affected by the economy or buying regardless if the economy is good or bad (expansion or contraction). The bottom line is the state of the economy will affect the middle class more so than those in the upper class.
Consider the DFW area. Although the economy is pretty good currently, within the last eighteen months, inflation have increased, prices have increased, some organizations have ceased to exist, and money is not as plentiful prior to the last eighteen months.
Within the last eighteen months, the sales from the middle class (those earning $115,000 -$150,000 annually) has decreased on the BWM 5 Series and you have been given the task of increasing the sales on this vehicle from this market.
Here is a brief description of the vehicle. Click on the link
https://cars.usnews.com/cars-trucks/bmw/5-series/photos-exterior
Although the price tag can vary from $54,200-$142,000, depending on the model, the basic model of $54,200 is your focus. Knowing the price is $54,200 and after reading the description of the vehicle,
– (a) where would you advertise to get the attention of this market?
-(b) consider the age range of your market, family, single, and occupation.
5. You have a business you are considering selling. There are several ways to determine the firms worth. Based on the following data, which method would merit you the most for your business.
• Current annual profits were $2,800,000
• Your current stock is $23.00 per share
• There are 26,000 outstanding shares of stock.
• Your stock has earned $11 this past year, and
• Average net income over five years $870,000
Consider in this calculation,
– Price/Ratio Method,
– Outstanding Share Method, and
– the Conservative Rule of Thumb method.
Show your work for each of these methods and identify, based on your work, which method yield you the most for your business.
