Business Finance Homework Help

I’m working on a business discussion question and need a sample draft to help me study.

the questions:

What choices do the Woodsons have at this point?

If you were Michael or Anita and chose to continue the negotiation, what would you say or do at this point?

the case:

Michael Woodson, the CEO of a major college publishing company headquartered in

the United States with three offices in major US cities as well as a recent expansion in the

United Kingdom, had been considering expanding his company’s operations to India.

According to his research, with one of the highest literacy rates in the world, a highly

educated and moderately priced workforce, and burgeoning distribution channels for

noncollege publications, India was the ideal location for the newest office. Following

multiple conversations with Ranjit Singh, handpicked to be the operations manager of

the proposed New Delhi office, Michael and his wife Anita (Vice President of Human

Resources) made the 21-hour trip to New Delhi. At the start of their meeting, Ranjit corroborated Michael’s research, and demon-

strated a real eagerness to head operations in New Delhi. The three of them discussed

the market, the labor needs, and even various real estate options. All the boxes—so to

speak—were seemingly checked ... except two. First, as Ranjit informed the Woodsons,

it would not be possible for the Woodsons to own more than 49% of the New Delhi

Office. By Indian law, no foreign national could own a majority stake in a local business.

That, thought Michael, was an issue, but not an insurmountable one. However, the

next “box” presented a real problem. As Ranjit described it, in order to get the process

started and secure governmental approval, a handful of local, regional, and govern-

mental officials would have to be paid off. These “payments,” as described by Ranjit,

were nonnegotiable. “This is how one does business in India.”

Shocked and appalled, Anita and Michael couldn’t believe what they were hearing.

“You mean we have to bribe officials in order to bring new jobs, taxes, and revenue to

your country? Surely, there must be another way. That’s not how our company does

business! Besides, once bribes are requested and received, when would it ever stop?”

Ranjit matter-of-factly explained the Indian ways of doing business, and even shared

a few stories that demonstrated how failing to do so resulted in a failed (or stopped

before it started) enterprise.

The Woodsons excused themselves from the meeting. “What are we going to do?”

they asked each other.