This website uses cookies to ensure you have the best experience. Learn more

Microeconomics And Business Decision Making Gerber Products In Poland

3412 words - 14 pages

Gerber Products In Poland
Individual Case Analysis: Gerber Products in Poland792-D: Microeconomics and Business Decision MakingJuly 20, 2007Content1. Executive Summary 32. Background Information 32.1 Key Players 32.2 Chronology of Events 33. Key Issues in this case 53.1 Borek Stary facility 53.2 Property Rights 53.3 Taxation 53.4 Economical Country risks 63.5 Political Issues 64. Options 74.1 Withdraw and re-enter 74.2 Negotiate independently Borek Stary facility 74.3 Option for taxation 74.4 Option for Joint Venture 75. Recommendations 85.1 Strategy Under Uncertainty 85.2 5 Competitive forces model 96. Conclusion 107. Appendix 118. References 111. Executive SummaryGerber Products Company ...view middle of the document...

2 billion) and sales outside of the United States were only counting for 10%2. Given the fact that Gerber's home market for its baby food represented only for 3% of the world's baby population and showed flat birth rates over the last couple of years, Gerber's growth ambitions could be materialized only outside of the United States. After the break down of the iron curtain in 1989, Eastern Europe appeared to be an interesting growth market. In 1990, Gerber's CEO, Al Piergallini, decided to focus on Eastern- and Central Europe as future growth markets.In May of 1991, Gerber received a call from John Simpson, a director of the Wasserstein Perella investment firm. John Simpson informed Fred Schomer, Chief Financial Officer of Gerber, that the Polish Government intends to sell its food processing company Alima S.A, located in Rzeczow. At this point in time John Simpson did not know a lot of details about this plant, only that Alima S. A. has been considered as one of the best Polish food processing plants that also produced baby food. Fred Schomer quickly realized that this could be an interesting opportunity to enter into the East European market with an own plant. He met with Al Piergallini, Gerber's CEO, to discuss this opportunity. They agreed to bid for the company. Because Gerber had only two weeks left, until the bidding closes, technical staff immediately flew to Poland to investigate the plant conditions. Simultaneously, Martin Lasher, Gerber's Director of Corporate Planning, calculated future sales and cost scenarios for Alima products.Based on Martin Lasher's calculations and cost estimates from the technical inspection of the Alima plant, Gerber offered to purchase 60% of Alima stocks for USD 11 Million. Additionally they committed to spend another USD 14 Million in reengineering of the existing plant.The Gerber Products Company has been elected out of 19 competitors to enter into further negotiations about the acquisition. Gerber wanted to clarify mainly three topics: Exclusion of the Borek Stary Facility, property rights and taxation.During the negotiations Gerber's initial assumption about Poland got irritated by the governmental elections that took place in October 1991. The political landscape changed dramatically with the result that the relationship to the negotiating government representatives disappeared and a hostile climate towards foreign investments started to appear. Additionally Polish governmental officials did not meet their obligations as previously agreed between Gerber and them.Gerber officials got to the point of deciding whether they should pursue this investment or not.3. Key issues in this case3.1 The Borek Stary FacilityAlima was also producing alcoholic beverages in its Borek Stary Facility. Gerber's officials expressed clearly in the initial negotiations that they do not want to purchase this site and signed an agreement that the Polish officials would sell this part of Alima separately. It turned out that the...

Find Another Essay On Microeconomics And Business Decision Making Gerber Products In Poland

Business Decision Making Essay

1335 words - 5 pages the alternatives, making the decision, implementing the decision, and measuring the impacts. (Decision, 2007.) By using various methods and tools to assist in making important business decisions an individual can ensure the decisions they make will be as successful as possible. In this paper it will be examined how the decision making process can be followed using various tools and techniques to make successful business decisions by using these

business decision making Essay

2471 words - 10 pages .thefreedictionary.com, 2012)The information processing tolls used in this task are search engine such as Google, software such as SPSS, Ms- Word and Ms- Excel, websites, e-libraries and browser.Project planFollowing is the is the three years' project plan of Barclays for opening online banking branch. Financial tools for decision makingCost/Benefit Analysis (CBA)Cost-benefit analysis is a systematic process which is used calculating and comparing

Ethics in Accounting and Financial Decision Making

586 words - 2 pages Many organizations today place significant emphasis on ethics and the financial decision making process within the organization. Organizations are expected to behave in an ethical manner in the current economy. There are many factors that influence organizations to ensure and enforce ethical policies. The purpose of this paper is to discuss ethics in accounting and financial decision making, how it relates to the United States Amy.An article

Ethics In Accounting And Financial Decision Making

884 words - 4 pages Ethics in Accounting and Financial Decision MakingIn today's business world, many organizations place a tremendous emphasis on ethics and the financial decision making process within organizations. All organizations are expected to behave in an ethical manner in the current economy. There are many factors that influence organizations to ensure and enforce ethical policies. The objective of this paper is to discuss ethics in accounting and

Men and Their Struggles in Decision-Making

838 words - 4 pages like he was carrying a big burden of responsibility in making his decision. Regardless of men having a variation of selection to make their decisions, sometimes they still make poor decisions that they loss their transcendent meaning. In “The Swimmer”, the protagonist, Neddy Merill is “troubled by [his] lack of purpose, and often channel this frustration into alcohol” (Barnhisel). For example, in the beginning, Neddy appears to be drunk when he

Selection and Decision Making in Recruitment

1404 words - 6 pages have to plan ahead, communicate effectively and make discuss selection and decision making. One of the main things the manager has to do before the selection process even starts is prior planning, below is what the manager has to do before the interview takes place:- The manager of Tesco has to plan prior to the interview; he/she has to select the interview panel. The manager of Tesco can select a supervisor and executive manager for the panel

Business Intelligence Systems in the Decision Making Process

2456 words - 10 pages ” (Hernause et al., 2010, p. 1179, para. 10). Results and Conclusion. According to Hernause et al. (2010) the results of the study support that BI will not be successful if it is not supported by top management. The results also suggest that BI is an important part of decision making in every hierarchy level, especially if IT departments are involved in business strategies. The study revealed that in the companies that completed the questionnaire

Business Research for Decision Making

1584 words - 6 pages trends and thus develop products and services as needed. The reliability and validity of the research, and thus the quality of the business decisions is heavily dependent on the human skills as well as the machines that are used in carrying out business research work. The success of any business activity, and thus the entire business is highly dependent on the reliability and the validity of the research being undertaken. Decision making is a

Decision Making in Nursing

945 words - 4 pages the steps involved in it “in order to develop our own decision making style” and be successful as nurses in the future (B. Kunkel, 2014). The New Jersey Board of Nursing provides a Seven Step Decision Making Model that “has been designed to assist nurses in using the information available to them for resolving scope of practice issues.” Any nurse that has a question about nursing practice “can refer to this model and follow each step to make her

Emotions in decision-making

579 words - 2 pages follow in the steps of their leaders.The emotions in decision making that was learned from this movie is that emotions are a very powerful to deal with in situations. Emotions are a mental state that arises spontaneously rather than through conscious effort and is often accompanies by physiological changes. It is also a state of mental agitation or disturbance. It is the part of the conscious that involves feeling.The employees of Enron emotions

Strategies in Decision Making

1372 words - 5 pages A quote by Albert Einstein states, "The significant problems we face cannot be solved at the same level of thinking we were at when we created them." (Khurana, 2006). Success in problem solving and decision-making lies in the ability of an individual to think critically, identify the most significant problem needing a solution, and prevent the problem from reoccurring. Problems can be found in all aspects of an organization and can be in the

Similar Essays

"Gerber Products Company Investing In The New Poland"

2405 words - 10 pages October. Although most conditions of the deal were attractive to Gerber, it must reevaluate the merits of investing in Poland under such an uncertain situation.II. BACKGROUND1. Gerber Products CompanyFounded in 1928, Gerber was located in a small town of Fremont, Michigan. It has a large variety of jarred baby foods with about 165 products. Besides, the company also makes basic baby apparel under its own product name and children's wear under

Ethics In Business Decision Making Essay

993 words - 4 pages -Armstrong, 2003). Both teleological and Deontological theories are used in business decision making on a regular basis. Utilitarians have profoundly influenced politics, social policy and philosophy as a whole. Many Religious ethics are often deontological, because they start from the premise of following the laws and orders of a god for no other reason but that they were handed down by that god (Taliaferro, 2010). In order to determine what

Decision Making Skills In Business Environment

1578 words - 7 pages comes to the highly competitive and ever changing business world. In view of that, a variety of models have been developed by the scholars from all around the world in an attempt to conceptualise the decision making process and maximise its potential output. In this paper, we will look at the role of the Carnegie and the Incremental decision models in explaining the decision making process in the business environment and how they differ from each

Management Accounting And Business Decision Making

2081 words - 8 pages MANAGEMENT ACCOUNTING AND BUSINESS DECISION MAKING - ASSIGNMENT 2NAME: AlexGROUP NUMBER: BLEVEL: IntermediateHAND IN DATE: 13/01/2006Task 1Objectives: 1. To be able to demonstrate the ability to critically analyse given data using ratio analysis techniques.Profitability1. Return on ordinary shareholders' funds= ROSFROSF= Net profit after taxation and preference dividendOrdinary share capital plus reserves2004= 1,123* 100 = 3.91%28,7242005= 1,655