Loeb was demanding that the Japanese firm change its financial and governance policies...to increase its value....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
"Loeb was demanding that the Japanese firm change its financial and governance policies...to increase its value." First, make a case for why FANUC should follow Loeb's advice. Next, make a case against following Loeb's advice. Try to make each side as convincing as possible. First, arguing that the advice of Loeb should not be followed because FANUC is a conservative Japanese company that governs strict policies that do not take petty cash lightly. According to FANUC's strict policies, they are very secretive and do not share private corporate information. By following Loeb's advice, confidential information could leak out as shareholders would possibly take advantage of and diminish the voting rights of the head owners. This would bring chaos into the company culture, and stray away from Tradition. FANUC is operating well, is debt free and has a great reputation and amount of capital to reinvest into itself, therefore Loeb's changes are indeed inadequate. Secondly, arguing that the advice of Loeb should be followed is beneficial to the company. If FANUC adjusts its strict and secretive, micromanaging operating style, it may invest crucial investors that will help the company grow exponentially in the future. FANUC just like any company needs resources and capital in order to operate successfully. The more capital a company has and invests it wisely, the better for everyone. In this way, acting rather selfishly in order to increase profits, a company can provide good for society in creating products in the most efficient way possible. "Loeb was demanding that the Japanese firm change its financial and governance policies...to increase its value." First, make a case for why FANUC should follow Loeb's advice. Next, make a case against following Loeb's advice. Try to make each side as convincing as possible. First, arguing that the advice of Loeb should not be followed because FANUC is a conservative Japanese company that governs strict policies that do not take petty cash lightly. According to FANUC's strict policies, they are very secretive and do not share private corporate information. By following Loeb's advice, confidential information could leak out as shareholders would possibly take advantage of and diminish the voting rights of the head owners. This would bring chaos into the company culture, and stray away from Tradition. FANUC is operating well, is debt free and has a great reputation and amount of capital to reinvest into itself, therefore Loeb's changes are indeed inadequate. Secondly, arguing that the advice of Loeb should be followed is beneficial to the company. If FANUC adjusts its strict and secretive, micromanaging operating style, it may invest crucial investors that will help the company grow exponentially in the future. FANUC just like any company needs resources and capital in order to operate successfully. The more capital a company has and invests it wisely, the better for everyone. In this way, acting rather selfishly in order to increase profits, a company can provide good for society in creating products in the most efficient way possible.
Expert Answer:
Answer rating: 100% (QA)
Case for following Loebs advice 1 Loeb is an experienced investor who understands what leads to financial success He has a proven track record of success and has used similar tactics in the past to in... View the full answer
Related Book For
Fundamentals of Human Resource Management
ISBN: 978-0077718367
6th edition
Authors: Raymond Noe, John Hollenbeck, Barry Gerhart, Patrick Wright
Posted Date:
Students also viewed these accounting questions
-
Make a case for paying a price premium that favors a higher overall rated supplier, such as New England Works. Make a case for not granting a price premium for a higher-rated supplier. Which would...
-
Can you make a case for having only one regulatory agency for financial-service firms?
-
Suppose that the Japanese firm Sanpo will receive $1.5 million from its U.S. sales subsidiary on June 3. Moreover, on June 3 a U.S. bank is due $2.3 million from Sanpo as repayment of a loan. Explain...
-
What effect does a weakening in U.S dollar have on Net Income for subsidiaries of U.S companies?
-
Mackey Company acquired equipment on January 1, 2011, through a leasing agreement that required an annual payments of $30,000. Assume that the lease has a term of five year and that the life of the...
-
Krystal is a U.S.-based company which manufactures, sells, and installs water purification equipment. On April 11th the company sold a system to the City of Nagasaki, Japan, for installation in...
-
Fraud Bingo Be a Sleuth: Use your answer to "catch" one of the first and most famous fraudsters: A T Ohio Congressman who has 2002 act named after him that responded to Enron crisis CED in big fraud...
-
The Schuyler Corporation manufactures lamps. It has set up the following standards per finished unit for direct materials and direct manufacturing labor: Direct materials: 10 lb. at $ 4.50 per lb....
-
please fill in all of the blanks National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. The company occupies 4,000 square feet of a rented building. In...
-
The New Economy Transport Company (NETCO) was formed in 1959 to carry cargo and passengers between ports in the Pacific Northwest and Alaska By 2018, its fleet had grown to four vessels, including a...
-
15. The temperature C, in degrees, that is equivalent to a temperature of F degrees Fahrenheit is given by C- graph of this equation shows the temperature in Celsius for the corresponding...
-
one trillion bits is equivalent to ? A type of network media which every pair of cable is protected ? Why communication is important in computer network? Give at least one network device and give...
-
1. Using the data below, calculate a 3-period simple moving average for the relevant periods. Demand Time Period 1 2 3 4 5 6 7 8 9 10 400 450 480 520 540 530 490 460 450 400 Forecast 390 475 485 460...
-
Draw the total poverty gap of an economy. Explain with the diagram why P measure does not satisfy monotonicity and distributional sensitivity. Does Pmeasure satisfy distributional sensitivity? Please...
-
Identify 2 flaws in the research methodology using the six issues (Reactivity , Social desirability bias/positive impression management, unrepresentative or biased sample, Confounding variable, Lack...
-
What are the emergent trends and best practices in organizational development, and how do they reflect evolving paradigms of talent management, leadership development, and organizational agility in...
-
If Sam buys a car for $900 and sells it for $1,000, what percent return did this generate? Enter your answer as a percentage with two decimal places but without the percent symbol. For example, if...
-
Wholesalers Ltd. deals in the sale of foodstuffs to retailers. Owing to economic depression, the firm intends to relax its credit policy to boost productivity and sales. The firms current credit...
-
To identify instances of sexual harassment, the courts may use a "reasonable woman" standard of what constitutes offensive behavior. This standard is based on the idea that women and men have...
-
In this situation, whose rights were affected? What basic rights were at stake?
-
Why might e-HRM be especially valuable when an organization's employees are spread out around the world, rather than in one location?
-
What are the current trends in software platforms?
-
One early morning in the fall of 2007, Dennis Jonsson was reading the latest reports on global warming and thought that someone ought to do something about it. Then he realized that he and his fellow...
-
Between 1988 and 2008, we saw an increase in the percent of cash returned to stockholders in the form of dividends. Why?
Study smarter with the SolutionInn App