Question: How should Bob Mascola run the transfer pricing task force meeting that will include Gl's CEO? Some suggestions below: The Process It is useful to

 How should Bob Mascola run the transfer pricing task force meeting

How should Bob Mascola run the transfer pricing task force meeting that will include Gl's CEO? Some suggestions below: The Process It is useful to note how expensive this process was. The task force was comprised of a high-level group of executives who invested a significant amount of time in the meetings and preparations for the meetings over a seven-month period of time. In the real company, Gary Spencer, Gl's CEO, just wanted this issue to go away. He did not want to change the system, for the reasons discussed above. He agreed to have a task force address the issue just to appease the subsidiary managers who were complaining. You need to think about what outcome Mascola might value. With his boss in the meeting, Mascola mig try to direct the group toward a no-change outcome. But perhaps the complaining subsidiary manager: need to be appeased. Hoskins' acceptance of the various alternatives seems to be related to the level of the operating profits reported in London. Thus, some minor compromise might be entertained to allow more profits to be shown in the subsidiaries in the hope that Hoskins will stop voicing his objections. An alternative is to commission a study to try to determine just how much value is created in the Client Service and Investment Management areas by personnel in headquarters vs. the local subsidiaries. But this would be difficult and costly, and it is unlikely that Spencer would agree to spend the money for this study. In the real company situation. Hoskins came to understand Spencer's indifference and How should Bob Mascola run the transfer pricing task force meeting that will include Gl's CEO? Some suggestions below: The Process It is useful to note how expensive this process was. The task force was comprised of a high-level group of executives who invested a significant amount of time in the meetings and preparations for the meetings over a seven-month period of time. In the real company, Gary Spencer, Gl's CEO, just wanted this issue to go away. He did not want to change the system, for the reasons discussed above. He agreed to have a task force address the issue just to appease the subsidiary managers who were complaining. You need to think about what outcome Mascola might value. With his boss in the meeting, Mascola mig try to direct the group toward a no-change outcome. But perhaps the complaining subsidiary manager: need to be appeased. Hoskins' acceptance of the various alternatives seems to be related to the level of the operating profits reported in London. Thus, some minor compromise might be entertained to allow more profits to be shown in the subsidiaries in the hope that Hoskins will stop voicing his objections. An alternative is to commission a study to try to determine just how much value is created in the Client Service and Investment Management areas by personnel in headquarters vs. the local subsidiaries. But this would be difficult and costly, and it is unlikely that Spencer would agree to spend the money for this study. In the real company situation. Hoskins came to understand Spencer's indifference and

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!