Gerber Products Company: Solutions To Their Problems Essay

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Gerber Products Company: Solutions To Their Problems As the acquisition of Alima continues, we have run into a few problems. These problems are mostly due to the political climate within the region, and property rights issues. One main issue we anticipate could derive from the political climate is the issue of tax credits. All of these problems, in my opinion, could be overcome. We have to make a decision as a team about the cost of moving forward. Problem I: The first problem is the uncertainty of the political stability within Poland. In October, there were political events that caused policymaking to stop. The team of political leaders that were engaged during the initial conversations are on their way out of the door…show more content…
We develop training presentations showing them how our presence will positively impact their ability to become a member of the EC common market. We demonstrate that the construction industry will most likely grow substantially because of the number of foreigners that will be transplanted into the local economy. We go a step further and offer up educational scholarships for employees' children. We show them how their education industry will also be positively impacted by the number of kids attending school on scholarships. Possible drawback(s): The only drawback that I can see is the additional cost of acquiring the location. This cost is the decrease in profits because of the scholarships. This wasn't something that was previously planned for and impacts the total cost of ownership for the facility. Mechanism to overcome drawback(s): Although from the current view of the financial statements, it is an added expense to provide these scholarships, but I see it more from a positive impact to our long term goal. I see us educating a society according to how we do things that will later impact our profits positively. I would be more concerned if we were looking at this investment from a short term perspective. But since we're looking at a long term relationship, I believe this is something we should be doing. Impact on the Bottom Line: Since we have already made a promise to the government to provide substantial

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