Outline

Kenya is the country that is selected to be manufacturing and distributing rubber tires.

The following aspects will be handled by specified individuals:

Chairman:

a. What is the company strategy there?

b. What would be the role of management?

c. What kind of leadership would work in this country?

This will handle three sections including the role of management, the company strategy, and type of leadership. Market segmentation will be the strategy used. Simple management will also be utilized that supervises all of the company’s operations. Democratic leadership will be applied to give every employee a chance to air their views.

Vice-Chairman

a. If you do decide to do business there, how would you staff the operation?

b. What type of concerns would you have?

c. How would you select the manager?

This involves the things to consider during the recruitment, the type of concerns, and how to select a manager. Opinions and contribution of employees will be the types of concerns. The manger will be chosen from the US’s main company staff so as to source for the best experience possible. Education level, citizenship, and profession are among things to be considered during recruitment.

Secretary set

a. What are some of the cross-cultural issues you are going to have to deal with particular to engaging a team?

b. What are some of the opportunities and strengths of doing business there?

c. How are you going to deal with management issues such as assertiveness, conflict resolution, and team building?

This will deal with the opportunities and weaknesses, the legal issues to be tackled, and the cross-cultural issues. The legal issues will enable the company to operate in line with the government’s requirements. Opportunities involve improved infrastructure such as health roads among many other factors. The issues of cross-culture involve interaction, language, culture itself and the new lifestyle.

Treasurer Set

a. What are some of the foreign trade issues you will have to deal with?

b. What are the determinants to foreign entry there, and how would you enter there?

c. How would you manage conflict if it should come up in the negotiations?

Determinants to foreign trade, foreign trade issues, and conflict management will be handled in this section. Obtaining a legal permit of operation will help in solving the trade issues thus the company has to be registered and citizenship of the new country has to be applied for. The security offered, type of country relationships and friendship will influence the determinants of foreign trade. A conflict resolution department will be established to deal with managing conflicts.

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FG is preparing its cash budgets for January, February and March. Budgeted data are as follows: November December January February March Sales (units) 750 800 800 850 900 Production (units) 800 800 850 900 950 Direct labour and variable overheads incurred $48,000 $48,000 $51,000 $54,000 $56,000 Fixed overheads incurred (excluding depreciation) $20,000 $20,000 $20,000 $20,000 $20,000 The selling price per unit is $200. The purchase price per kg of raw material is $25. Each unit of finished product requires 2 kg of raw materials which are purchased on credit in the month before they are used in production. Suppliers of raw materials are paid one month after purchase. All sales are on credit. 80% of customers, by sales value, pay one month after sale and the remainder pay two months after sale. The direct labour cost, variable overheads and fixed overheads are paid in the month in which they are incurred. Machinery costing $100,000 will be delivered in February and paid for in March. Depreciation, including that on the new machinery, is as follows: Machinery and equipment $3,500 per month Motor vehicles $800 per month The opening cash balance at 1 January is estimated to be $15,000. Required: Prepare a cash budget for each of the three months January, February and March.

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