Here is the synopsis of our sample research paper on The Procter & Gamble Company: Mexico 1991. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 5 page paper discussing options for financing international business in the early 1990s. Procter & Gamble (Mexico) sought to expand operations and manufacturing capacity in 1991. The problem it faces is how to finance the three-year effort to attain minimum cost of capital at minimum risk. The purpose here is to review available options to choose one as a recommendation. Bibliography lists 1 source, Darden’s case UVA-F-1060.
Page Count:
5 pages (~225 words per page)
File: CC6_KSintlBizP-Gmex.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
Procter & Gamble (Mexico) sought to expand operations and manufacturing capacity in 1991. The problem it faces is how to finance the three-year effort to attain minimum
cost of capital at minimum risk. The purpose here is to review available options to choose one as a recommendation. Background Summary
Organized in 1948, P&G (Mexico) was a wholly subsidiary of Procter & Gamble. In 1991, P&G (Mexico) was P&Gs largest Latin American subsidiary, leading all international subsidiaries in production
and ranking seventh in revenues (Williams, Eaker and Eades 70). P&G (Mexico) manufactured all of the products sold in Mexico; only 18 of P&Gs 41 brands were manufactured and
sold there. By 1991, P&G sought to expand manufacturing capacity in Mexico in order to manufacture additional brands already established in the United States. As part of this
expansion, the company sought to expand and modernize current facilities. It was seeking funding for average annual estimated needs of $55 million. The funds would be used for
capital expenditures for manufacturing facilities and for prepayment of some of the advertising expenses associated with new product introduction within Mexico (Williams, Eaker and Eades 64).
P&G was an international company long before "globalization" emerged. Though the company was highly decentralized in operations, it was highly centralized in its finance activities.
The purpose of keeping finance under tight central control was to enable P&G to "finance the Companys global business at the lowest cost of capital consistent with taking acceptable risk"
(Williams, Eaker and Eades 64). Toward this end, P&G approached international financing activities in four ways: * "having a subsidiary independently borrow the necessary capital in its country of
...