Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

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,

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M93089581

Have any Question?


Related Questions in Operation Management

Considering the six basic options listed below that are

Considering the six basic options listed below that are available for competing in international markets, discuss in detail the factors that a firm must consider when selecting each of these strategic directions. (Please ...

The soft goods department of a large department store sells

The soft goods department of a large department store sells 175 units per month of a certain large bath towel. The unit cost of a towel to the store is $2.50 and the cost of placing an order has been estimated to be $12. ...

For the medical company medtronic identify and discuss the

For the medical company Medtronic Identify and discuss the three most important general environmental forces or workstyle and lifestyle trends that are shaping the "big picture" opportunity for your real-world business. ...

You have a job assisting the medical director at a family

You have a job assisting the Medical Director at a Family Medical Clinic in New York City. The Medical Director is concerned about the long wait times of patients visiting the clinic and would like to improve operations. ...

Describe the establishment of new business that will employ

Describe the establishment of new business that will employ at least 10 people and develop a supporting management strategy and describe its location, what the facility looks like, nature of product and number of staff e ...

1 what is the purpose of rbrvs type of reimbursement system

1. What is the purpose of RBRVS type of reimbursement system? Briefly explain how RBRVS works? 2. Analyze and Comment on "Business Application" - How do you choose between an LLC and LLP?  3. In reviewing your elevator s ...

1 what are the three types of pricing strategies services

1. What are the three types of pricing strategies services that services employ? Using a real life example (Six Flags, The Brewers, etc.) illustrate each strategy. 2. Identify 3 types of non-store retailing and discuss a ...

On april 12 2018 an incident occured at a starbucks coffee

On April 12, 2018 an incident occured at a Starbucks Coffee shop in Philadelphia, Pa.(On Thursday in Philadelphia, two black men were removed from a Starbucks by police at the behest of the store’s manager, who said they ...

A identify the major types of advertisingb discuss the

A. Identify the major types of advertising. B. Discuss the creative decisions in developing an advertising campaign. C. Define and state the objectives of sales promotion and the tools used to achieve them.

Write a 2 to 3 page case study about ldquobp in russia bad

Write a 2 to 3 page case study about “BP in Russia: Bad Partners or Bad Partnerships? (A)” (Case study 3: Strategic Management: Competitiveness and Globalization 12e: Hitt, Ireland, Hoskisson (page C42) Since entering th ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As