...forcing employees at every level to take more responsibility for their own work. Goal Setting: Welch had a philosophy called based on opportunism, whereby GE employees were given far fetched goals, and permitted to do whatever it took to reach the target. This imbibed a more aggressive culture in the entire organization Communication: Jack Welch removed unnecessary communication filters to ensure his vision was communicated effectively throughout the organization. He ensured that his vision was communicated by a series of training programmes. He encouraged input from every employee. This made the organization more effective and gave Jack Welch charge of the situation at GE Question #3 How does such a large, complex diversified conglomerate defy the critics and continue to grow so profitably? Have Welch’s various initiatives added value? If so,...
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...Piercing the Corporate Veil The whole objective of piercing the corporate veil is to prevent companies from using the guise of corporate personality to commit illegal and fraudulent and illegal acts. It can perhaps be said that the catalyst of the birth of this concept came about in Solomon v Solomon & Co. Ltd, wherein the concept of the company’s separate legal personality was upheld. The decision came in for severe criticism from some quarters. Otto Kahn Freund called the decision ‘calamitous’ and also proposed the abolition of private companies. There have been times when Indian courts have been slightly conservative in applying the doctrine, calling for its implementation only when it is explicitly provided for in the statute. Nevertheless, this doctrine has found acceptance in a majority of Indian courts, with the Supreme Court noting that lifting the corporate veil is becoming more translucent in modern jurisprudence and that’s its frontiers are unlimited. There are various circumstances under which courts have gone on to lift the corporate veil, such as making the holding company liable for failure to disclose the accounts of its subsidiary company, especially when it appears that the holding and subsidiary are parts of the same concern. Other instances where courts have gone on to lift the corporate veil are where the medium of the company has been used in committing fraud and illegal conduct, determination of enemy character of the company, liability for ultra vires...
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...offers of these programmes are relevant to the automotive industry demand in Malaysia. The upstream and downstream process of automotive and service industry covers the production of automotive components, manufacturing, assembly, distribution and inspection. This study is conducted on Automotive Education Institution (“AEI”) in East Coast Malaysia which offers diplomas and undergraduates academic programmes in Engineering and Technology, in addition to Business and Management. The objective of this study is to acquire the automotive and services industry feedback prior to the development of new academic programmes. In developing new programmes for future offerings, a survey was conducted among the subsidiary companies of the automotive conglomerate in Malaysia. A survey method was used for collecting the data from 16 subsidiary companies totalling of 323 respondents from various positions. The findings indicated that AEI has the ability to develop relevant programmes for the institution which can cater the needs of automotive and services industry in Malaysia. These findings would assist the AEI in the preparation of teaching and learning facilities as well as the academic staff. Type of Paper: Empirical Study Keywords: Automotive Education Institution; Automotive and Services; Academic Programme Development...
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...order to change from the tea-consuming culture to the coffee-consuming culture in India, Starbuck started educating its customers about coffee as it had been successful doing so in the China market. In parallel, with Indians’ curiosity, people tended to experience a new brand entering the country. As a result, Starbuck was able to attract customers and changed the way people drank, creating emotional attachment with customers. These examples aptly support my point that Starbuck’s vision to educate customers about its brand and its experience is correct. In addition, building brand awareness, Starbuck attempted to construct flagship stores where customers’ demands were high. Through joint venture with Tata Group, India’s largest business conglomerate, Starbuck had access to premium real estate where demands were high. Consequently, it can draw customers’ attention to its business. Furthermore, as Starbuck did not do advertisement, it depended on word of mouth, which was very successful. Hence, joining Tata group could enable Starbuck achieve its...
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...Value Line, in its current form, was incorporated in 1982 and is the successor to substantially all of the operations of Arnold Bernhard & Co., Inc. In June 2005, AB & Co. owned approximately 86.5% of the Company’s issued and outstanding common stock. The Company produces investment related periodical publications through its wholly owned subsidiary, Value Line Publishing LLC ("VLP") . VLP publishes in both print and electronic formats The Value Line Investment Survey®, one of the nation's major periodical investment publication, as well as The Value Line Investment Survey - Small and Mid-Cap Edition, The Value Line 600, Value Line Select, The Value Line Fund Advisor, The Value Line Special Situations Service, The Value Line Daily Options Survey and The Value Line Convertibles Survey. VLP also provides current and historical financial databases which include DataFile, Estimates & Projections, Convertibles, ETFs and Mutual Funds in standard computer formats. The Company also markets investment analysis software and includes The Value Line Investment Analyzer (which was last updated in 1999) and Value Line Mutual Fund Survey for Windows (which was last updated since 1998). The Company's print and electronic services are marketed from time to time through media, direct mail and the internet to retail and institutional investors. The company last advertised on television, CNBC, in 2001. In addition to Value Line Publishing LLC, the Company's other wholly owned subsidiaries...
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...corporate veil Salomon v Salomon Separate entity concept + limited liability concept ( corporate veil, which ensures that shareholders are not personally liable to creditors for their company’s debts, even though: ❖ all the company’s shares are beneficially owned by one person; and ❖ the sole purpose of the company was to obtain the benefit of limited liability. Macaura v Northern Assurance: Where a member transfers property to his company, he loses any proprietary interest in the property. [A company owns property distinct from the property of its members.] LIFTING the corporate veil Incorporation for a fraudulent/improper purpose ❖ Gilford Motor v Horne: If the company was formed for the primary purpose of avoiding existing contractual obligations, the corporate veil is lifted. ➢ *H resigned from his position as managing director of GM. ➢ *H started a business under his name which competed with GM. ➢ *H discovered that the former service agreement provided that he would not, at any time, solicit customers of GM. ➢ *A company was incorporated in the name of H’s wife, which then conducted the business. ➢ *Although H was not a shareholder of the company, he conducted its affairs. ➢ *The company sent circulars to GM’s customers, seeking their business. ➢ The company was formed for the purpose of avoiding existing contractual obligations ( it was a “mere cloak or sham” used as a device ( corporate veil was lifted. Agency relationship...
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...Team Leader: Alcantara, Jaimie M. 12 August 2015 Members: 4M3 Aranton, Novena Marie O. Banac, Jason M. Factolerin, Francis Eriel B. _____________________________________________________________________________________ Export/Import Advantages: * Indonesia has recently passed a law regarding exporting and importing. The newly passed law means exporting and importing of the country will adopt depending on the demand and supply of a commodity. And since Indonesia has a high demand for milk products but low in capacity to produce, it would be advantageous for Alaska Milk Corporation to export their milk products there. * Since there is low capacity in Milk production in Indonesia, there is a potential for market expansion after testing the market through exports. * According to ForeignAffairs.com, Indonesia’ economy, just like the Philippines, soared during the last half decade and is still continuously growing. They also have a strong foreign exchange and top performing stock market. * For instance Alaska Milk Corporation will have excess production, their milk products can still be sold in the international market without sacrificing its current prices. It would be a beneficial clearance of their excess production. Disadvantages: * Alaska products may need to be modified to meet the safety and security codes and other country restrictions. * Exporting to another country would take extra costs for the licensing, new promotional...
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...The best way to grow as an organization is to expand. Making connections and utilizing other business methods can help even the smallest of businesses thrive. This could mean that a local restaurant buys it’s bread from the baker down the street instead of baking their own. It could also mean Nike owning several factories located in various countries around the world manufacturing their products. The idea is to spend the least amount of money to produce, move and sell in order to earn a larger profit. This is where foreign subsidiary come into play. A foreign subsidiary company is simply defined by thelawdictionary.org as “A company that is part of a larger company.” It is a local operation completely owned and operated by a foreign firm. These organizations can be acquired by another but can also be built from the ground up. Of course, though, with every business decision comes risk; advantages and disadvantages of subsidiaries are deeply weighed when this becomes an option for expansion. There are many advantages to having subsidiaries in other countries. One major advantage is the amount of control the parent company gains over the subsidiary. The parent company becomes the boss. They now gain control of operational means and strategic moves. This means that the parent company can now have the subsidiary function by means that the parent company sees fit. Another advantage to having foreign subsidiaries is the expansion of brand recognition. By taking the parent companies...
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...LG electronics is a part of LG corportation. LG electronics which is called GoldStar at that time was founded by KOO IN-HWOI who was founder of LG corporation in 1st Oct 1958 at KOREA. At that time, radios were attracting interests as embodiments of civilization, bringing news of the world to their listeners. Mr. Koo thought, ‘we could make a radio by ourselves likes TOSHIBA, NATIONAL.’ So, he founded GoldStar. And finally, at 15th Nov 1959 they made the first Korean radio which is including more than 60% of domestic components. It was beginning of both LG electronics history and Korean electronic industry’s history. LG electronics started expanding their business to overseas by exporting radios to U.S at 29. Nov. 1962. LG electronics Singapore. Started business as the international purchasing office(IPO) in Singapore in October, 1989 for the first time in the Korean industry history. LG Electronics was able to purchase parts from the Singapore manufactures at lower cost and supplied to the plants of USA ,Europe, and Korea. They have 5 main business domains, which is Home Entertainment, Mobile Communications, Home Appliances, Air Conditioning and Business Solutions. LG Electronics Singapore Pte. Ltd.’s mode of entry is a wholly owned subsidiary. a wholly owned subsidiary is a means of entering new markets in which a firm fully owns its subsidiary in foreign countries. Because LG corporation which is holding company located in Korea owns all of the LG Electronics Singapore...
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...Workmen v. Associated Rubber Industry Ltd. (1985) 4 SCC 114 Facts of the Case – The Associated Rubber Industry Ltd. had purchased, some years back, shares of INARCO Ltd. by investing a sum of Rs 4,50,000. They were getting annual dividends in respect of these shares and the amount so received was shown in the profit and loss account of the company year after year. It was taken into account for the purpose of calculating the bonus payable to the workmen of the company. Some time in the course of the year 1968, the company transferred the shares of INARCO Ltd. held by it to Aril Bhavnagar Ltd. (changed to the Aril Holdings Ltd.), a subsidiary company wholly owned by The Associated Rubber Industry Ltd. Aril Holdings Ltd. had no other capital except the shares of INARCO Ltd. transferred to it by the Associated Rubber Industry Ltd. It had no other business or source of income whatsoever except receiving the dividend on the shares of INARCO Ltd. The dividend income from the shares of INARCO Ltd. was not transferred to The Associated Rubber Industry Ltd. and therefore, it did not find place in the profit and loss account of the company with the result that the available surplus for the purposes of payment of bonus to the workmen of the company became reduced. The net result of the exercise was that bonus at the rate of 4% only was paid to the workers for the year 1969 instead of at the rate of 16% to which they would have otherwise been entitled. We may mention here that Aril Holdings...
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...Financial Financial Accounting research paper Issues with consolidating financial statements 1. consolidating complicated intercompany transactions -matrix of companies cashing a cheque for comp a into comp b, comp b paying for comp c, comp a receivables can be comp b payable, sometimes receive a cheque from one company but has not specified which company its from, hard to track some payments and receivables with complex matrix like this. Borrow money form one company and such with above problem ^ Introduction Consolidated financial statements first started being used as a result of the growth in intercorporate investments and the rise of holding companies. According to IAS 27 the purpose of consolidated financial statements is to simplify and combine all the financial statements of the subsidiary companies together as a group and presented as those of a single entity. One of the main issues when consolidating statements is simplifying and correctly reporting complex intercompany transactions. Since there is more than one method of reporting intercompany transactions, issues can arise when different subsidiaries use different methods to report them in their books and how to report them to in the parent company’s books. Translating and transferring the differences from methods used in the subsidiaries’ books to the methods of the parents company’s books. The report will be broken down into three parts. The first part will outline how intercompany transactions...
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...The Determinants of MNE Subsidiaries' Political Strategies: Evidence of Institutional Duality Author(s): Amy J. Hillman and William P. Wan Source: Journal of International Business Studies, Vol. 36, No. 3 (May, 2005), pp. 322-340 Published by: Palgrave Macmillan Journals Stable URL: http://www.jstor.org/stable/3875180 Accessed: 26-02-2015 20:33 UTC Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at http://www.jstor.org/page/info/about/policies/terms.jsp JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org. Palgrave Macmillan Journals is collaborating with JSTOR to digitize, preserve and extend access to Journal of International Business Studies. http://www.jstor.org This content downloaded from 193.140.253.100 on Thu, 26 Feb 2015 20:33:00 UTC All use subject to JSTOR Terms and Conditions Studies(2005)36, 322-340 Business journal International of - 2005 Palgrave 0047-2506 $30.00 Macmillan Ltd. Allrightsreserved www.jibs.net The determinants of evidence strategies: Amy J Hillman' and William P Wan2 MNE of subsidiaries' political institutional duality Abstract of State Arizona IDepartment...
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...Case 1: Capital Mortgage Insurance Corporation Background Capital Mortgage Insurance Corporation (CMI) is a wholly owned subsidiary of Northwest Equipment Corporation (NEC).NEC expects Frank Randall, company president; to build CMI into a larger more diversified financial service company. To do this Randall wants to acquire Corporate Transfer Services (CTS) a small relocation services company, as part of a plan for diversification. Informal discussions took place with the principal stockholders of CTS four months ago. Currently, formal negotiation strategy plans are in the works and a purchase offer is in the development stage. If successful, the acquisition of CTS will be a first for CMI and will help Randall realize his goals for CMI diversification. Analysis CMI’s main interest is to expand their financial services and build a strong company that can hold their own against industry leader, Merrill Lynch. CMI must acquire CTS at a reasonable price to achieve this goal. They also need to retain key employees to manage CTS’s current business interests, and to foster a good relationship with CTS founder, Elliot Burr. This will allow them to make an entry into his Metro Net “old boy” network. Benefits for CMI include - a huge jump start into the corporate relocation business, immediate licensing and other legal documentation in 38 states, influential entry into the Metro Net network which would lower operation of CTS, an experienced operations manager in Tom Winder, and finally...
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...ABOUT ALHANOO GROUP Right from the days of its inception in 1972, Al Hanoo Holding Company has been committed towards the development of the property sector in KSA and many other neighbouring countries. Besides properties, Al Hanoo Holding Company has also founded subsidiary companies that have a strong presence in Contracting, Gas and Electricity networks installation, Agriculture, Trading, and many other developing sectors. This diversified approach is what makes Al Hanoo a pioneer and an integral facet in the economic hub of various countries in the world. As of today, Al Hanoo Holding Company and its subsidiaries are pioneers in their own areas of expertise, and continue to achieve success after success with projects that make difference in people’s life, such as Nujoom Islands City. A project embraced by the sea from every side and covers a massive 60 million square feet. Group of Companies Marsa Al Nejoum : The landmark Blue Bay Project is brought to you by UAE based Marsa Al Nejoum Real Estate, a subsidiary of Al Hanoo Holding Co (UAE's leading real estate company), a pioneering group with impeccable real estate development credentials. Established in 1972, with its headquarters in KSA, Al Hanoo Holding has become one of the leading real estate master-developers in the UAE and other GCC region. Al Hanoo Holding has already established its credentials in the region, when it launched the successful Emirates Industrial City in Sharjah; this success has ensured...
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...RE: GUIDELINES FOR THE APPLICATION TO STRIKE-OFF A NAME OF A DEFUNCT COMPANY UNDER SECTION 308(1) OF THE COMPANIES ACT 1965 DURING MORATORIUM PERIOD (1 JULY – 31 DECEMBER 2012) This guideline serves to inform the procedures and requirements for the application to strike off names of defunct companies under section 308(1) of the Companies Act 1965 (CA (1965) during moratorium period. BACKGROUND 2. The Companies Commission of Malaysia (SSM) has on 11 January 2007 issued a set of guidelines for the application to strike off the name of a company pursuant to section 308 of the CA 1965. 3. Notwithstanding, SSM has decided to relax the requirements for the the name of dormant companies application for striking off names under section 308(1) of the CA 1965 to facilitate the application to strike-off from the Registry. 4. The effective date of the relaxation of the requirements for application takes effect from 1 July to 31 December 2012 (moratorium period). 5. Applicants who apply to strike-off the name of dormant companies during the moratorium period are not required to submit the management account and companies‟ resolution. 6. Companies with outstanding penalties or compound issued prior to (a) (b) a flat fee of RM200.00 for the company; and a flat fee of RM200.00 for each offence committed by each director of the company. the moratorium period will only be required to pay: WHO MAY APPLY? 7. The application may be made by either the director...
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