Analysis Of Dow Quimica Argentina Is Considering Making A Bid Be Privatized By The Government Of Argentina

On June 23, 2008, a Monday morning, Arnaud Martin arrived at his office in Groupe Ariel’s corporate headquarters in Mulhouse, France. The previous week, Martin had requested additional financial information about an investment proposal from Ariel-Mexico, a wholly owned subsidiary that operated a manufacturing facility and a regional sales office in Monterrey, Mexico. The information had arrived late Friday—too late for Martin to analyze—and was waiting for him Monday morning. As a financial analyst for a global manufacturer of printing and imaging equipment, Martin examined many cross-border projects, particularly

In estimating the value of Mercury we can use a discounted cash flow (DCF) approach or a comparable firms’ multiples analysis. In using the DCF approach we have to make some assumptions in our analysis along with using data generated in the industry and in Liedtke’s projections.

Two discounted cash flow analyses accompany this memo. Part A contains an adjustment for possible business erosion at Rotterdam, while part B does not make that adjustment.

We calculated the NPV of the euro investment in two ways. The first was by simply computed by dividing the Peso NPV by the current spot exchange rate. The second method involved using a derivation of the PPP equation to compute the projected future exchange rates. The NPV was calculated after the Cash flows and Net investment were converted to Euros. The value of the Euro Investment was equal in both situations because of the presumption of PPP.

The present value of all these cash inflows and outflows can be calculated by discounting them at 12.19%. This rate is calculated by assuming that the purchasing power parity holds in this scenario. The company can do the feasibility analysis by looking at both from the subsidiary’s and parent’s perspective by assuming that the purchasing power parity holds. Hence, this rate can be regarded as opportunity cost of investment because it is the second best alternative for the company for investment purposes.

As will be seen below, the cost to manufacture a single unit of the architectural windows is much greater than the standard window (note the negative contribution margin of the architectural windows). This is contrary to the volume-based method where standard windows were more expensive. Under ABC, It makes sense that the architectural window is more expensive as it is generally more labor-intensive, requires more direct material and consumes more fixed resources than its standard window counterpart. ABC is able to capture these costs by tracing the activities to the correct product. The following section will analyze the individual components of the income statement in further detail. What is realized is that cost information is severely distorted under volume-based allocation approach, leading Doug to make uninformed decisions. As it currently stands, architectural windows would be unable to bring the Texas plant into a profitable position.

The two plans, Sarnia 1 and Sarnia 2 are producing halobutyl and regular butyl, respectively. The newly regular butyl plant, Sarnia 2, is running at less than capacity. The plant should be able to produce 95,000 tonnes, but the actual production is only 65,000. This creates a lot of unabsorbed fixed costs and inefficiency.

Wriston’s Detroit plant is no longer a viable operation due to long-term capital underinvestment and product-process mismatch. It is recommended that the plant be phased out of operations over a five-year period with production and staff gradually shifted to a new plant to be built in the Detroit area. Further, it is also recommended that division accounting procedures and evaluation mechanisms be modified to allocate revenues/costs allowing for the synergistic benefits of Detroit’s products, and to recognize inherent manufacturing complexities, respectively. Issues Detroit’s production is unique when compared to other Wriston plants. Runs are typically lowvolume, involve significant set-up time, and vary significantly due to the sheer

The relatively well posed project with promises of great future pay offs must be examined closely nevertheless to determine its true profitability. As such, the Super Project’s NPV must be calculated, however before we proceed we must acknowledge the relevant cash flows. The project incurred an expense of testing the market. This expense, however, must not be included in our cash flow analysis because it can be considered a sunk cost. This expense is required for ‘taking a temperature’ of the market and will not be recovered. Other sources of cash flow include:

with a number of strategic issues facing a capital-intensive, mature industry. Their product costing system was

João Nogueira Batista, Chief Financial Officer of the Brazilian firm Petrobras, reflected on Gros’s words as he prepared for a Board of Directors meeting in July 2002. The main item on the Board’s agenda was the proposed acquisition of an Argentinean firm, the Perez Companc Group, or Pecom.2 The acquisition would significantly increase Petrobras’s oil and gas production and add to its oil reserves. It would also provide the mainly Brazilian-based

The root cause of Stamypor’s problems was an unstable value proposition (2, p85). DSM-NBD underestimated the value of a need analysis, which was evident from that fact that they skipped the first stage of the Stage-Gate process. This evaluation stage is used to ascertain the need for a new product (1, p9). The omission lead to uncertainties over Stamypor’s claimed ability to add value to the resin industry. Additionally, a significant portion of DSM’s budget was assigned to corporate R&D and not to NBD. Therefore, fundamental research was not involved in the Ideation stage of the Stage-Gate process (3, Figure 5.4). The fact that DSM-NBD went ahead with a sizable investment

Pecom, compañía petrolera de Argentina, desde sus inicios fue ganando terreno en la industria del petróleo avanzando a buen ritmo a través del paso de los años. Desde la obtención de su primera concesión, hasta el inicio de operaciones en diversos países sudamericanos, Pecom se fue consolidando como una empresa fuertemente integrada verticalmente.

2. The other important strategic purpose of acquiring PBB is that it is the first stage towards consolidating all Bahia Blanca’s polyethylene activity under Dow’s control. The 3-stage project will make Dow to be the leading company of polyethylene in Argentina, even in Latin America because of its MNC background. This will have

However, MacDowell Corporation believes that changing the relationship with San Fabian Supply Company will make it benefit more. On one hand, MacDowell has been marketing its products through an exclusive distributor only in the Philippines and the parent company wants to market the products same as in other countries. On the other hand, the demand for construction materials has decreased since the expansion of its plant in the Philippines before. MacDowell Philippines’ plant operating rate was very low, at only about 45% capacity, and the overcapacity plagued the company a lot. To get rid of this situation, MacDowell Philippines wants to increase sales and its new president believes that having more dealers can lead to more sales. So MacDowell wants to change the relationship with San Fabian Company in the