As the manager of a corporation that has it's largest factory in the mid-western United States, I would have to determine what would be best for the company as a whole. Since the current factory is not competitive in international markets and needs extensive renovation, a decision must be made about the factory and about the financial health of the company overall. The three choices proposed to solve the problem with the current factory are: modernize the factory so it will be more competitive, or move the factory to either Canada or Ireland. The corporate tax rates in Canada at twenty percent and in Ireland at fifteen percent are less than the thirty five percent paid in the United States. The net present value of the three choices
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The NPV of moving the factory to Ireland was the highest at thirty five million dollars and Ireland has the lowest corporate tax rate at fifteen percent. The labor costs between the three choices is similar and does not really factor into the decision. Even though 700 employees will lose their jobs if they do not move to Ireland, the company as a whole will be more profitable with moving the factory. The move will also keep the other 3,000 employees located throughout the United States employed, which may not have happened if the company stayed in the mid-west location and filed …show more content…
Stakeholders are essential to the successful planning and execution of capital projects. (Stakeholder, 2013) In order for the project to be successful, at the beginning of a project the stakeholders should be identified. Effectively communicating with stakeholders will help them better manage expectations and deal with the issues that arise when a major capital project is undertaken. (Stakeholder, 2013) From the perspective of the corporation, moving to Ireland is a good decision. How the decision affects the stakeholders including those in the community where the current factory is located including contractors, vendors, suppliers and employees left behind will be an issue for the corporation to deal
The NPV of moving the factory to Ireland was the highest at thirty five million dollars and Ireland has the lowest corporate tax rate at fifteen percent. The labor costs between the three choices is similar and does not really factor into the decision. Even though 700 employees will lose their jobs if they do not move to Ireland, the company as a whole will be more profitable with moving the factory. The move will also keep the other 3,000 employees located throughout the United States employed, which may not have happened if the company stayed in the mid-west location and filed …show more content…
Stakeholders are essential to the successful planning and execution of capital projects. (Stakeholder, 2013) In order for the project to be successful, at the beginning of a project the stakeholders should be identified. Effectively communicating with stakeholders will help them better manage expectations and deal with the issues that arise when a major capital project is undertaken. (Stakeholder, 2013) From the perspective of the corporation, moving to Ireland is a good decision. How the decision affects the stakeholders including those in the community where the current factory is located including contractors, vendors, suppliers and employees left behind will be an issue for the corporation to deal