5. (5 points) Loeb was demanding that the Japanese firm change its financial and governance policies...to...
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5. (5 points) "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. With 40% operating margins, strong cash reserves and no debt, there are multiple reasons for why FANUC should not follow Loeb's advice. By changing the company's policy, it is allowing new management to restructure the business that can lead to a weaker financial position for the firm. By getting new investments, FANUC may be diluting its firm and lose control in the company's objective. To Loeb's defense, if they follow his advice, the company may be able to increase their company's valuation. FANUC must change their policies to attract new investors so that they will be able to compete with their international competitors or they will fall behind. 5. (5 points) "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. With 40% operating margins, strong cash reserves and no debt, there are multiple reasons for why FANUC should not follow Loeb's advice. By changing the company's policy, it is allowing new management to restructure the business that can lead to a weaker financial position for the firm. By getting new investments, FANUC may be diluting its firm and lose control in the company's objective. To Loeb's defense, if they follow his advice, the company may be able to increase their company's valuation. FANUC must change their policies to attract new investors so that they will be able to compete with their international competitors or they will fall behind.
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Step 11 Case For Following Loebs Advice 1 By following Loebs advice FANUC could potentially increase ... 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:
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