The Timken Company Key issue/Problem How Timken should make decision on castiture into the Romania Company, if the company robeed, how did the company reduce the risk? alternate(a) Actions 1. non invest on Roumanian administration 2.Invest on Romanian government and phthisis acquisition for Rulmenti Grei ( acquiring firm’s gist business line) 3.Invest on Romanian government and social procedure strategic alliance for Rulmenti Grei (contract/ownership of capital) Evaluation of Alternatives 1.Not invest on Romanian government Pros: No risk for company Cons: button the opportunity to establish a stronger competitive rank in the European industrial bearing grocery and to trim back manufacturing be crossways its global bearing business 2.Invest on Romanian government and use acquisition for Rulmenti Grei ( acquiring firm’s core business) Pros: Has the opportunity to establish a stronger competiti ve position in the European industrial bearing grocery and to lower manufacturing monetary values across its global bearing business Timken has chance to expand its crop line in receipt to European customer demand. cooperate Timken to learn and develop smart capacity Overcoming entry barriers on Europe. Cons: Timken should invest lot of money.
Has a big risk on acquisition. Timken should mystify high luck of synergy and competitive advantage by maintaining strengths. Large debt for Timken Company. 3.Invest on Romanian government and use strat egic alliance for Rulmenti Grei (contract wi! th Rulmenti Grei on production, marketing, and distribution) Pros: Reduce risk and cost for Timken Easy to entry market, and execute time Cons: Share profit with Rulmenti Grei Recommendation I propose Timken acquiring firm’s core business. strategical design Timken company want to entry European bearing market successful, and get larger...If you want to get a full essay, parliamentary law it on our website: OrderCustomPaper.com
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