Financial Analysis

Intercontinental Resort and Hotel are one of the group members in SIGH which represent itself as The world’s first truly international hotel brand, InterContinental Hotels ; Resorts has five star properties located in more than 60 countries with local insight that comes from over 60 years’ experiences. Each property offers its own distinctive style, from the heritage elegance to urban chic and resorts on tropical shores, making it an ideal brand for travelers with discerning tastes.

Nevertheless, InterContinental Hotels & Resort distinguish themselves by providing luxury hotel accommodation to each corner of the world. Moreover, InterContinental is the world’s first hotel brand to provide destination-specific concierge websites and videos and now offers access to inspiring recipes from around the world through the InterContinental Kitchen Cookbook pad app. After several years of expertise in hotel industrial, SIGH has accumulated many wards, which certainly prove themselves as one of the most excellent corporate.

InterContinental Bangkok is ideally located within the Orthogonal District and is close to Summit Road. A directly adjacent BITS sky train station allows fast travel throughout the city and to the Submarine Airport. Nearby are renowned medical facilities. Major shopping destinations such as Central World, Siam Paragon, MBA and Platinum abound at walking distance. Lumping Park is also a short distance away. Pestle By Pakistan

This paper will focus on Legend theme park company possible expansion in Brazil. I will use PEST framework as a guideline for analysis and other analysis methods, such as Porter’s or Hefted, if needed. First, paper will analyze the external environment that affects decision making and furthermore, provide some internal environment information about Legends strengths and weaknesses. Brazil is South America’s most significant country, an economic giant and one of the world’s biggest democracies, with fifth large population in the world (News. BBC. Co. UK, 2013).

In owing years Brazil will host two huge sport events, World Cup in 2014 and Olympic Games 2016, which have obviously some impact in PEST- analysis areas. When speaking about Brazil it is important to know about Jetty Brasseries, the Brazilian way of doing things. In business that means that Brazilian prefer go around the rules when an obstacle presents (Morrison and Conway ,2006). Today LEGEND has all together six theme parks located in North America, Europe and Asia. Company is not fully owned by Logo Group itself, rather theme parks are owned and operated by the

British theme park company Melvin Entertainment, which operates in all parts of the world besides South America. Core values that LOGO want to make universal are Creativity,elimination, Learning, Fun and Quality Cones and Shaken, 2013), (Neurotransmitters. Biz, 2013). 2. Political environment According to Ministers of foreign affairs Denmark, Brazil is a federal republic with a federal government divided into three independent branches – executive, legislative, and Judicial. The President has executive power (being both the Head of State and Government) although advised by the Cabinet. Legislative power is at the National

Congress, while Judicial power lies with the Judiciary Supreme Federal Court, and the regional federal courts. The country is a parliamentary democracy with a presidential regime and next presidential, congressional, and gubernatorial elections is to be held in October 2014. 2. 1 Political Risk Data from World Bank (2013) shows that Brazil Political risk has changed a lot in the past decade, but now country is politically stable in the long term view. However massive anti-government protests during July 2013 tell that Brazil is currently experiencing a widespread collapse of its infrastructure.

According to Paula Ramona (2013) there are problems with ports, airports, public transport, health and education. Brazilian President Dilemma Rousseau even proposed a referendum as a way to place political reform in the publics hands. 2. 2 Corruption The levels of bureaucracy and lack of transparency of rules make Brazil a difficult PEST analysis of Brazil By Kulak country to do business in. Violations to law and ethical standards committed by representatives of the legislative and executive power are common.

The organization Transparency Internationally corruption index for 2012 ranks Brazil as number 69 score 43/100) – ahead of Argentina (102), Columbia (94) and Peru (83) but behind Chile (24) and the U. S (19)- of 180 countries (Transparency International, 2013). Corruption was cited among many issues that provoked the 2013 protests in Brazil (CNN Report, 2013). 2. 3 FDA and business establishing regulations Policy competition to attract investment was “activated” in Brazil by the dramatic success of the 1994 “Real Plan” in cutting inflation and bringing macroeconomic stability to the country (COED ,2002).

Since then FDA inflows have growing tendency as we can see from the chart. Direct Investment totaled IIS$ 660. Billion, equivalent to 30. 8% of national GAP (Coed. Org, 2012). As stated in lab. Workloads. Org, 2013 foreign companies establishing subsidiaries in Brazil must have at least 2 shareholders. Executive officers of Brazilian companies must be either Brazilian citizens or foreigners who hold a Brazilian permanent visa. To file with the Commercial Registry, the company may pay an additional fee and register through SIMI, which offers an expedited registration process.

Company establishing takes 166 days and goes trough 17 procedures, to compare BIB global average is 42 days and 7 procedures, forever Brazilian ease of establishment index (64,5) is in line with BIB global average 62,5. While government approval is not required, foreign investments must be registered with the Brazilian Central Bank. According to the Rules for the Exchange Market and Foreign Capital issued by the Central Bank of Brazil, only a few entities are entitled to hold a foreign currency bank account in Brazil. 2. 4 Taxation Foreign capital that enters Brazil as direct foreign investment (DEED) is not subject to taxation.

However, the interception loans will be subject to ‘OF at a rate of 6%. Even Hough, interception loans are classified as ‘DEED (Mellon, 2012). While importing may work well in most markets, it is difficult in Brazil due to high tariffs and taxes, since Brazil does not have an industry of amusement rides and equipment, or many factories, when it comes to roller-coasters, giant wheels and similar products, there is need to import them from other countries, mainly from Europe, Asia and the United States (Macroscopic,2013). Potential export countries such as the US and Germany are not parties to a bilateral free trade agreement with Brazil.

As a result imports room these countries bear tariffs and taxes which can range from O to 35 percent on the CIFS (insurance, and freight) value. The bound rate that Brazil can levy on imports under World Trade Organization rules is 31. 4 percent. Since tariffs can be changed by the government at any time, importers are subject to risk and uncertainty (Brazil. Land of the Future, n. D. ) 2. 5 Employment Laws Employment and labor relations in Brazil are primarily governed by the Brazilian Federal Constitution, the Brazilian Labor Code – ‘CLC’ and Collective Labor Agreements.

Established working hours in Brazil should not exceed 44 hours a week ND preferentially, 8 hours a day. Depending on the Job, there are conventions between companies and Unions, and then employees will work more than 8 hours a day. Every employee working under the CLC regulation has right of a 30-day rest every 12 months to work . Brazil NAS the 13th salary, which is a gratification equivalent to a month salary and paid in two installments in November and December For individuals considered as employees, the company must make a monthly deposit to the Government Severance Indemnity Fund for Employees.

Avis pr©vii is a notification that must be given by both employee and employer when they are no anger willing to work together. This notification must be given one month prior to the dismissal. Additionally Brazilian employers are obliged to cover its employees’ transportation costs and provide a meal for those working 8 hours a day. All in all hiring in Brazil is not cheap because of the all additional cost mentioned earlier (Coalitionist’s. Hash. Com, 2013). 3. Economic environment According to World Bank 2013 statistics the economy of Brazil is the world’s seventh largest by nominal GAP and ninth largest by purchasing power parity.

Brazil has moderately free markets and an inward-oriented economy. Its economy is the largest in Latin American nations and the second largest in the western hemisphere. Brazil is one of the fastest-growing BRICK economies in the world, however after fast recovering from 2009 recession growth slowed due to reduced demand for Brazilian exports in Europe and Asia, but as reported by BBS News 2013 Brazier’s economy grew by 3. 3% year-on-year in the second quarter and will possibly continue growing. Brazier’s currency unit is the real =R$ .

The real has been relatively stable for Brazil since its introduction in June 1994. Brazil has 5th. Largest population in the world 201,009,622) but it’s purchasing power is lower than could be expected by cause of high inflation rate, in 2012 it was 5,4% compared to 6,6% in 2011. Other factor that makes Brazil economy less attractive is high interest rates compared to the rest of the world, current interest rate is 9,0% (Central Bank of Brazil 2013). Strong labor market is the one aspect of Brazier’s economy that investors can count on to remain solid for years to come.

It’s unemployment rate reached a historic low of 5. 6% (World Fact Book 2013), If you could trade in Brazier’s Job market instead of equities, you might be better off. 3. Infrastructure and related industries While thinking about theme park industry expansion in Brazil infrastructure issues are among biggest challenges for sure. Transportation, the airport system and all in all traveling inside Brazil is difficult. In 2011 the Brazilian government launched a number of infrastructure initiatives that were warmly welcomed. Investments in infrastructure in Brazil are still little, ranging between 2% and 2. % of the GAP. The public sector employs a little over 1% of the GAP in infrastructure and that is not enough as stated in Economist 2012. Brazil would need to spend 6-8% of GAP annually to catch up with South Korea in 20 years and 4% per year to catch up with Chile. Compared to other emerging economies Brazil spending on infrastructure is among lowest (World Fact As chart snows ,Brazilian economy is service driven and is favorable for LEGEND. According to Business Wire 2013, construction related to the FIFE World Cup and the Olympic Games will support all construction markets going forward.

Those big sport events are now having positive impact especially on tourism industry, but other industries that are related to theme parks such food and soft drink industries will benefit as well. However, all in all an underdeveloped state of Brazier’s infrastructure poses a key challenge to the development of the country’s industrial sector. (Sugarcane 2013) 3. 2 Energy Brazier’s energy matrix uses the most renewable energy sources in the industrialized world, with 45% of its energy being generated by water, biomass, ethanol, wind and solar sources (Portal Brazil A 2013).

Brazil has one of the most expensive prices of electricity in the world, even though it has one of the cheapest costs of production. The electricity price is higher than the prices of some developed countries, like the Netherlands and the United States (Chartists 2012). . Technology Brazil is technologically developed country, It has highest levels of patents applications in South America (Worlds Intellectual Property Organization, 2012) and according to R Funding Forecast 2012, Brazier’s R&D spending is expected to increase in 2013 to $31. 9 billion, an 8. 1% increase over the $29. 5 billion it spent in 2012.

This increases its share of global spending from 2. 0% to 2. 1% and ranks it tenth globally, slightly ahead of Canada. Brazier’s R spending also accounts for more than 75% of the total R spent in all of South America and World Bank C 2013 statistics refer to the same result. The investments in human and political resources, the financing systems and the supporting laws to technological and innovation sector allowed Brazil to reach notable advances in science, new technologies and innovation in strategic areas like energy, biotechnology, computing and aerospace (Portal Brasilia B, 2012).

As reported by World Fact Book 2013 use of telecommunications systems, and Internet is high, which means that intercommunication and global communication won’t be a problem. LOGAN doses ‘t have super advanced roller- coasters or other raiders and in that case technological development of Brazil is high enough. . Socio- cultural issues Brazier’s population is very diverse, comprising many races and ethnic groups. With 80 percent of its population living in cities and towns, Brazil is one of the most urbanize and industrialized countries in Latin America.

As can be seen from pyramid population growth in Brazil is slowing as the country urbanites and increases its wealth (World Fact Book, 2013). Growing proportion of middle class appear. 60% of society, will increase consumer demand in Brazil and so is the favorable atmosphere for LEGEND (World Bank D, 2012). According to World Bank E, 2012 GIN index in 2012 was high 54. , but it has decrease tendency which as well explains middle-class growth. In Brazil, 41% of adults aged 25-64 have earned the equivalent of a high-school degree, less than the COED average of 74%.

Among younger people – a better indicator of Brazier’s future – 53% of 25-34 year-olds have earned the equivalent of a high-school degree, also lower than the COED average of 82% but snowing progress. Compared to other BRICK countries Brazil is still b and 20% of it’s population is still illiterate (Coed B, 2013) (The Economist, 2010). This fact might decrease companies reluctance to invest in Brazier’s economy, bur Brazilian free education would be reflected in the long term. Since Brazil is world’s 5th. Large country by it’s area, LEGEND will have enough choice where to locate the theme park. So Paulo (1 1. 277. 19) and ROI De Jeanine (6. 074. 081) are the two largest and most important cities in Brazil, some other large major cities include Below Horizon, Formulate, Salvador and the capital Brasilia. 5. 1 Brazilian cultural environment Since the theme parks aim to provide a mixture of fun, adventure and education for children, Brazil has excellent environment for that. The Brazilian culture is one of the world’s most varied and diverse. Much of it is centered around local traditions and celebrations such as caperer, the national sport (football) and all around the world known festivities of Carnival (Quintessential, 2013).

Hefted 2013 research reveal that Brazilian and Danish cultures are almost a contrast to each other. High PDP of Brazil reflects a society that believes hierarchy should be respected and inequalities amongst people are acceptable, while low individualism score means that in business it is important to build up trustworthy and long lasting relationships: a meeting usually starts with general conversations in order to get to know each other fore doing business. Brazil masculinity rate 49 is in the middle, but compared to Damask’s 16 Brazilian society is driven more by competition, achievement and success.

However, conflicts are avoided in private and work life and consensus at the end is important. Like the majority of Latin American countries Brazil scores high in AJAX, which mean that country shows a strong need for rules and elaborate legal systems in order to structure life. Executives should also understand that Brazilian need to have good and relaxing moments in their everyday life, chatting with colleagues and enjoying a long meal is an integral part of working day.

Danes are a short term orientated people and focus in business life is very much on what is happening now instead of in ten years time, at the same time Brazil places itself amongst the long term oriented societies as the only non-Asian society. The “Jettison brassiere” is really to look for alternatives to do what in a Western eyes could be regarded as impossible (The Hefted Centre A and B 2013). If possible Leganes’s managers will be expatriates from Denmark a tailor made cultural assimilated training is highly recommended. . Conclusion After finishing my PEST analysis I will argue that to talk about LEGEND expansion n Brazil today is to talk about a promising future and good business opportunities. The fact that Brazil was the first South American country elected to host both the 2014 FIFE Football World Cup and the 2016 Olympic Games in ROI De Jeanine, proves that the country has reached internationally. Brazilian theme park industry has big potential mainly because of country’s huge population, growing tourism and low competition.

There are only 11 theme parks in the whole country and Brazilian/ Latin-Americans who now travel to the US in order to visit amusement park will have competitive domestic option. Population demographics promise good future as middle-class is growing, children population is big and there is huge amount of potential labor force in Brazil. Since The Logo brand is well known all over the world and associated Witt quality and reliability, this positive brand image will attract boot locals and international visitors.

Challenges of tapping Brazilian market is very high importation and local taxes. Lack of equipment needed for amusement park is the other minus of Brazilian market. On the other hand it could easily be imported from the US and supporting industries such as food industry is well developed. The Federal Government has also shown its support to the theme park industry by lowering the taxes on the importation of equipment and machines used for the rides. Brazil has still a long way to go to improve it’s poor infrastructure and that’s the third disadvantage of country.

However, the World Cup and Olympic games have had huge positive impact on infrastructural development and I would highly recommend to place LEGEND in So Paulo or ROI De Jeanine since their excellent infrastructure. High electricity price is the fourth disadvantage, which will cause extra spending to the company. Recent oil discoveries and great potential on renewable energy market may reduce electricity price in the future. Brazilian rich culture and long history gives additional value to Leganes’s miniature land.

Economic Growth As we know, the economy of the United States took a bit of a nosedive in September 001, but more recently things are beginning to take a turn for the better. In the latter part of 2004, personal income along with personal savings increased. In November 2004 the total income of individuals increased $30. 4 billion dollars. In the past six months there has been an increase in sales in the clothing industry. The purchase of clothing and shoes in the month of May escalated $2 billion and increased $1. 7 billion in June.

Today’s culture shows children having more money both from their own odd Jobs such as baby-sitting or delivering newspapers and heir allowances from parents. This extra income and spending power has influenced much of the clothing market. Coloratura Trends Society and culture have an effect on what consumers’ value and what is considered “popular”. When it comes to the clothing industry, there are many factors that are important including fashion trends and purchasing power. Fashion trends are constantly changing, which forces retailers of clothing to keep up with the curve.

Clothing companies need to know which items are going to be popular and how many of each item to have in stock. Part of keeping up with trends is keeping up to date on colors and designs that are appealing to the audience. According to Apparel News, it is now the teens that are setting new fashion trends. Some of the new lines that they have coming include bohemian embroidery, baby-doll tops, and camouflage prints. A number one cultural trend that we did not face ten years ago is the number of mothers that are working outside of the home.

This has in return affected how major purchase decisions are made. With mom and dad both working, it is often the men’s that are becoming more independent and making purchasing decisions on their own. There are currently 2. 7 million teens who have money from odd Jobs and allowances, and they choose to spend $14 billion annually on clothing, Technological Advancements Technology is affecting everything about our society including the clothing business. The number one aspect is the Internet. Having on-line access has changed the way that consumers find information and the way that they shop.

During this past holiday 82 percent of consumers surveyed said that they would be doing holiday shopping n-line. The Internet gives retailers a way to show new fashion trends and give consumers access to their products. As technology continues to improve it will make it easier and faster for consumers to research products online and purchase with confidence. Web Advertising is another key element that can be affected by technology. Clothing companies are able to inform consumers about their products, advertise specials, etc. This allows buyers to become acquainted Witt products before purchasing in the store or on-line.

PEST

The key micro-environmental factors which might affect future performance of PMI can be identified as below: POLITICAL/ LEGAL

Political barrier such as legal factor and government tax might become the hindrance for PMI to emerge its strategy in business operation.

Cigarette is a product which has bad effect on the health, therefore imposes many strict regulations. A report on Tobacco Free Initiative (TFI) stated that there are 2.3 billion of people protected from smoke free law. Moreover, details in Wikipedia shows that by the year 2012 there are more than 100 countries with active smoking ban. These indicate falling of revenue to PMI.

It has been almost impossible for PMI to promote its brand to public through the restriction of government on advertising and sponsorship. Marlboro was once ranked as Top 20 best global brands by Interbrand in 2009, has no longer appeared in Interbrand’s Top 100 due to the lack of social media presence.

According to WHO, price is the primary instrument of tobacco. The World Bank review concluded that 10% rise in cigarette price will lead to 4% of fall in demand. International Tax and Investment Centre (ITIC) reported that current tax plans in Russia (second largest tobacco market) could cause the cigarette price to be five times higher by 2018. The Russian Finance Ministry has planned an increase in excise duties on tobacco by around 40% in 2013 and 2014 and 10% hike in 2015. [Trefis Team, 2013] If the law has successfully approved, there could be an accelerated decline in cigarette volume in region due to the sharp increase in cigarette price.

ECONOMIC

PMI possess over 15.7% world market share of cigarettes [wikinvest, n.d] and market capital of $138.31 billion [Philip Morris Market Cap, 2013], at the same time selling product with stable demand due to the addictive nature of the product. Therefore, PMI is not sensitive to recession and economic downturn.

Cigarettes are considered as a product with price inelastic. As aforementioned, the price elasticity estimated by World Bank shows that the percentage change in price will not affect the demand of cigarette at the same level. Thus, slightly increase of the price will not have much effect to the tobacco demand

Diagram below indicates the overall cigarette consumption since PMI spun off from Altria group has slightly improved, despite the slight fall on EU region mainly due to tougher restrictions in countries such as Australia and Russian etc. On top of it is quite stable, maintaining at a range between 860 billion to 930 billion units of cigarette regardless of economic factor such as unemployment, inflation, government policy and taxes.

SOCIAL

The world number one cigarette brand Marlboro leads PMI to be criticized as main contributor of smoking related death globally. In order to rehabilitate itself in the public eye, PMI has contributed significantly to the public. PMI’s annual report 2012 reported it has contributed over $38 million to more than 250 organisations in over 60 countries globally to implement programs within areas of Hunger and Poverty, Education, Rural Living Conditions, Domestic Violence and Disaster Relief.

PMI is actively engaged in Corporate Social Responsibility (CSR) in developing social awareness against harm of cigarette through its official webpage. In addition, it supported regulation and is developing products based on the principle of harm reduction. Moreover, PMI is firmly opposed to child labour that is vulnerable to “green tobacco sickness”.

Despite all these, PMI is held guilty of causing 6 million tobacco-related deaths every year. According to WHO, tobacco-related deaths will increase to more than 8 million each year by 2030.

Actions has taken from few countries by anti – smoking groups to reduce the population of smoking, such as the proposed of smoking license in Australia, forcing young smoker to take test of health risk knowledge and pay fee to smoke. At the same time, encourage smokers to quit by rewarding with financial incentives for permanent license surrender. [Imogen Crispe,2012] Moreover, the Health Promotion Board (HPB) has proposed to ban smoking for those born in Singapore in and after year 2000. [Kevin Naughton, 2013]

Although PMI’s retail volume remains more or less the same in last few years, the company does concern about the fact that smoking has started to be viewed as something inappropriate. The whole world is fighting against smoking to the greatest extent particularly in Europe region.

TECHNOLOGICAL

PMI has invested heavily in implementing work methodologies consistent with Design Chain, Supply Chain and Customer Chain Operations Reference model, Lean Manufacturing and Six Sigma principles. As a result, PMI was awarded as the winner of the Global Supply Chain Operational Excellence Award for its 3 years hard work in implementing product development times, superior supply chain performance and improve financial returns. [Supply Chain Council, 2012]

Product innovation and packaging has become important to PMI in communicating with customers since the banned of tobacco advertising. Two of the impressive innovations of PMI are the L&M U-spin cigarette which has a unique filter that allows smokers to choose the strength of the flavor and Parliament with “Frensnel lens” designed pack making it stand out on the shelf. [Gus Lubin, 2012] Innovation not only helps in business growth, but also leads to competitive advantage.

PMI trying to create something better than current electronic cigarette targeting products that not only contained less harmful nicotine but also maintain the taste and sensory experience similar to the traditional cigarettes. They called it “Next Generation Products” (NGPs).

To do so, PMI bought the global rights to a nicotine aerosol technology from investors including Jed Rose, the director of Duke University’s Duke Center for Nicotine and Smoking Cessation Research [Melissa Korn, 2011]. PMI’s research and development (R&D) department includes a team of scientists led by Jed Rose with expertise across a range of disciplines including biology, chemistry and computing. The key focus area of R&D is to understand the mechanism of diseases caused by smoking and to reduce the level of toxic chemical compound produced (more than 7000 smoke constituents) during the burning of tobacco in cigarette.

In 2012, the company has announced plans to invest €500 – €600 million, building two NGP manufacturing facilities in Europe with an initial capacity of 30 billion units, with a goal to commercialise in 2016/2017.

1. Generally Accepted Accounting Principles (GAAP): These are generally accepted guidelines which are to be followed during the preparation of financial statements. GAAP is technical an accounting term that includes the conventions, rules, and procedures necessary to define accepted accounting practice at a particular time. GAAP, usually contains balance sheets as of given dates, income statements for given periods, and cash flow statements for the same periods. A special statement highlighting changes in owners’ equity on the balance sheet is commonly provided as well.
2. Historical Cost: An accounting principle requiring the recording of transactions and the maintenance of recorded values at the actual level incurred, regardless of any subsequent changes in the value of the assets or liabilities involved.

1. Accrual Basis vs. Cash Basis Accounting: Recognition of revenues or expenses when earned or incurred, without regard to the actual timing of the cash transactions; used in the accrual method of accounting or we can say in a manner that Method of ACCOUNTING that recognizes REVENUE when earned, rather than when collected. Expenses are recognized when incurred rather than when paid. While on the other hand cash basis accounting  is a methodology in which revenues and expenses and all other transactions are recognized when cash changes hands, in contrast to the accrual method of accounting.

1. Current Assets and Liabilities vs. Non-Current Items: Current assets consist of the value of cash, accounts receivable, marketable securities, inventories and other assets that could be converted to cash in less than 1 year or ASSETS that can be reasonably expected to be converted into cash, or get sold, consumed in operations within a single operating cycle, or within a year incase more than one cycle is completed each year.

Current Liability is an obligation whose LIQUIDATION is expected to require the use of existing resources classified as CURRENT ASSETS, or the creation of other current liabilities or Amount owed for salaries, interest, accounts payable and other debts due within 1 year. Non-Current Items are Long-lived property owned by a firm that is used by a firm in the production of its income. Tangible fixed assets include real estate, plant, and equipment. Intangible fixed assets include patents, trademarks, and customer recognition.

Opinion regarding the usefulness of the Net Income or Cash From Operating Activities:
Both the component net income and cash flow from operating activities has an importance and no one denies the grandness of each. But if we talk about from the organizational point of view (CFO) gives the right choice for opinion because it reflects the daily routine business operation and It gives a fair amount of knowledge about the business running methodology and how the cash mull over with respect to current assets and liabilities of the business.

While on the other hand net income also gives the right idea about the business operation but many contemplation is made with respect to inventory valuation techniques, revenue recognition technique etc.Remember financial cost and the tax factor also reduces the net income in the end of the day dividend is paid to the stockholders and also impression on EPS if the EPS, NI and dividend is high in the current year then the next year hopes of stockholder is high so we can say that net income basically for stock holder or for debtor.

 Conclusion

General Motors Corporation

A charge of $115 million was included in the GMNA results for 2006, related to costs incurred in 2006 under a new salaried severance program, which allows involuntarily terminated employees to receive continued salary and benefits for a period of time after termination. Results for 2005 include charges recognized of $223 million in GMNA and $13 million in Other Operations related to voluntary early retirement and other separation programs with respect to certain salaried employees in the United States. GME results for 2006 include charges for separations and contract cancellations.

Home Depot The Company has a commercial paper program that allows for borrowings up to $2.5 billion. All of the Company’s short-term borrowings in fiscal 2006 and 2005 were made under this commercial paper Program.

Billabong International Limited: Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the circumstances.

REFERENCE

General Motors. (2006). Annual Report.

Home Depot. (2006). Annual Report.

Billabong International Limited. (2006). Annual Report.

Helfert, Erich A. (2001). Financial Analysis Tools And Techniques: A Guide For Managers. McGraw-Hill.

Political The company will have to agree to follow all rules set out by the ELI, in regards to the sale of food and drinks regulations. Our company will be able to pay a low tax rate to produce the drinks in Ireland, currently the tax rate in Ireland for corporations is 2. %. We however need to concentrate on how much sugar we put in our energy drink, as all energy drinks require some kind of glucose, this is a concern at the moment, as leading doctors are calling for a sugar tax, and this could increase the cost of our product which could affect our sales. (reported by Hosted, 2014) Economic Ireland has been in a recession for several years and throughout those years we have seen a drop in consumer spending, however there is positive signs for Ireland as we have seen rises in what consumers are spending.

The unemployment rate is also creasing, and with Christmas coming up it will decrease again because of the seasonal workers getting Jobs, so it would be a good idea to launch the product in the New Year. Social Ireland is seen as a quite active nation, with triathlons and marathons becoming quite popular, many women take to the streets for the Flora mini marathon, and it is seen as the biggest event of its kind in the world, with number increasing every year.

There is also been an increase with gyms opening up, and many people taking to the fitness world, we have seen gyms such as Westwood, spend 1 million to enhance here facility and also David Lloyd has spent 4 million in the past 5 years on improving their facilities, as seen on (www. Advisedly. Ii)(www. Westwood. Ii) Technology With more people gaining access to the Internet, social network is imperative for advertising. Also research and development is very important to improve our product and for the customer to get the best out of it.

So that is why we must continue to invest in these areas in food and nutrition. Environmental Factors With the increase of landfills, it is important they we promote clean living that is why we will clearly label our bottles, that they can be recycled. Many companies now give green bins to customers and it is free, for you to put your plastics in the green bin, PESTLE Analysis Project Copy By larcenous that way encouraging people to recycle.

We also our aware to carbon toppings, so we will utilities distribution companies that have fuel-efficient trucks and have a low carbon foot print as well. Legal We believe in what we put in our product works and is helpful, and we have advance scientist proving these results, this will be able to back up our statements that the product does give energy. As we do not want to be involved in a false advertising ease, as we are aware what happened to Red bull. We also promote a safe working environment for our employees and will follow all the health and safety legislation.

Competitor analysis Indirect, There are a few companies who produce energy drinks for sports, which we are targeting for, Located and Powered are seen as men’s drink and this is often portrayed by their TV ads where you can see rugby players and men drinking their projects. While we will focus solely for women with our drink, which will be portrayed by women going for a light Jog, and having flowery and pink packaging could portray this. Direct, Our main competitor at the moment would probably be Volta Coca, which is not necessary an energy drink but more a reiteration drink, which people take after the gym.

1. Regulation in the labor market in Sweden, Latvia, Germany, Brazil and China, such as Labor laws, working hours, termination notices
2. Regulation of the environmental legislation, such as pollution issues management
3. Regulation of quality issues, such as safety, environmental friendly
4. Regulation of the strategic alliance in different countries, such as Joint venture, acquisition
5. Taxation regulations to different countries 6. Trading policy, agreements, contract terms

Economic Factors

1. Fluctuate of foreign exchange rate
2. Economic conditions in local and the foreign countries, growing or declining (Demand)
3. Skilled labor concerns, will it be expensive to hire skilled labor? (Heavy commercial vehicles)
4. Local economic environment concern due to globalization
5. The cost of resources supply in production (Heavy commercial vehicles)
6. Local economic environment concern

Socio-cultural Factors

1. Local union protection, such as employment issues
2. The population growth rates and age profile, adequate skilled labor force supply?
3. Social-cultural factors, gender rules in employment

Technological Factors

1. Technology quality systems support – ALEX Quality (found as Q-Control)
2. Machinery infrastructure support – in production components
3. AT skilled labor Pest analysis of ALEX group By Thomson pools – in making solution
4. Technology systems in communication with the suppliers and customers Machinery infrastructure support – in production components
5. IT skilled labor