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Business Studies
Two Questions on Dividend Policy and Multinational Corporations
Stockholders will usually purchase stocks with the aim of creating a return in their money. The return may be created for the stockholder in two ways; firstly, through the growth in the value of the firms stock price, which result in a profit when the share is sold, and secondly in the form of dividends which are a distribution of the profits of the firm paid out to the stock holders.
The dividend policy of a firm is the approach that they adopt towards the cash disbursements from the firm to the shareholders. The distribution policy can be considered in several contexts. The first considering may be the way in which the firm chooses to use it profits and cash. For firms that are pursuing aggressive growth strategies the policy may be to retain the profits...
Likewise, when a firm faces a difficult time and a reduction in profits the dividends may be reduced to reflect the decrease and support and been seen as prudent by management in order to support the firms recovery through reinvestment. Reinvestment of profits can support growth and may reduce the need to raise money from external sources. Conversely, firms that are in established industries and are doing well may have a policy to make payments to their shareholders. It is often need that when a firm has a dividend policy of making regular and constant payments, this can have a stabilizing impact in the stocks market price. If investors know the will be getting dividend payments, the perceived risk associated with the stock is reduced, which can reduce the potential volatility of the impact on supply…
Question B
A multinational corporation may be defined as company where there are interests, including facilities or other assets in at least two countries; the home state and another state (Investopedia, 2014). While the definition means that the firm must be present in at least two different markets, it can be many more. Multinational corporations will unusually have a single head office hat acts as a centralized point of contact, and the degree to which it controls the operations in the different countries will depend on the organizations strategy.
Firms may pursue an international expansion strategy for many reasons. These may include push and pull factors (Mintzberg, Ahlstrand, & Lampel, 2008). Push factors are seen where a firm's management believe they need to find new markets; they are pushed into expansion. For example, a current market may
The shareowners are yet another tremendous component of the stakeholders' group. Ford's issues with the stockholders are more complex than those with the employees. For once, new owners have to be attracted in order to increase the company's capital. This implies a necessity for effective management techniques and strong financial results. Then, there is the problem posed by the shareholders in terms of their ability to influence the decision making
United Technology Corporations in regard to its strategies, financial performance and general stock performance. The conglomerate's strategy and positioning is presented in regard to its various constituent firms. A conclusion is provided on the basis of the obtained financial outlook. Financial performance and strategy Capital markets considerations UTC's financial and investor ratios Price to Operating Profit (P/OP) Price to Book Value (P/BV) UTC's corporate strategy and positioning United Technologies Corporation (UTC) is an American multinational conglomerate
Colgate-Palmolive Promotion Policy C-P International Promotion Colgate-Palmolive (C-P) has built vast global market share based on international deployment for the highest executives. This practice has had costs and benefits, but global environmental conditions, including technology, regulation of international flow of goods and capital, and quality of available human resource factors like education and professional development continue to evolve. At the same time, human cultural definitions of family, career and nationality change at
Aside the attraction of customers, the money invested in marketing have created the desired outcome of a strong and reputable brand. Another pivotal element in the financial strategies has been that of maximizing the efficiency of managing inventories. This was necessary in order to continually strengthen the brand as well as achieve the profitability goals. Alongside with operating principles, supply-chain renovation and inventory management, financial management represents the pillar
Therefore, it meets the threshold requirement for limited safe haven. Moreover, the provision of medical services appears to fall under the qualifications of the SCM that services be a controlled service transaction or a group of transactions. This provision of services is not one of the prohibited services including manufacturing, production, extraction of mineral resources, construction, reselling, research and development, engineering, financial, or insurance. In United Parcel Service of America,
Sysco Corporation's Competitive Position Today External Environmental analysis General Environmental Analysis Demographic Segment Economic Segment Political/Legal Segment Socio-Cultural Segment Technological Segment Global Segment Summary of General Environment Analysis Driving forces Industry Analysis Description of the industry Industry dominant economic factors Market Size Market Growth Rate Industry Trends Summary of industry analysis Five Forces competitive analysis Threat of new entrants Power of Buyers Power of suppliers Threat of substitutes Intensity of rivalry Summary of five forces competitive analysis Competitive analysis Industry competitors Rivals anticipated strategic moves Summary of competitive analysis Key Success factors Internal analysis Organizational Analysis Corporate Mission Products and services Leadership Organizational culture Organizational