Corporate Faliure Maxwell Communications Essay Example | Topics and Well Written Essays - 2250 words

Corporate Faliure Maxwell Communications - Essay Example In Britain rates of insolvency have risen to historic highs, punctuated quite dramatically by company failures from Rolls Royce through the Olympia and York failure (the developers of London's Docklands), and the collapse of the Maxwell communications empire. Because struggling debtor corporations frequently raid their pension funds for cash, which consequently are under-funded when companies declare bankruptcy, significant private costs have been off-loaded onto the government. Furthermore, failing firms do not pay their taxes, and so the tax authorities frequently join the list of unpaid creditors (Altman2003). Yet bankruptcy is not without its beneficiaries. Just as a deadly epidemic is lucrative for undertakers and morticians, the vast sums of money involved in the largest corporate bankruptcies have exerted a magnetic effect on the most sophisticated--and expensive--corporate lawyers and accountants. ... accounting, in both the United States and Britain, have become prestigious revenue-centers for law and accounting firms, so much so that in the United States there is increasing pressure to pare down the size of professional fees. During the 1980s, several of the largest accounting firms in Britain merged with small boutique insolvency firms, such as Cork Gully's assimilation by Coopers and Lybrand, just as numbers of large United States law firms absorbed smaller bankruptcy specialist firms simply in order to acquire their expertise in a quickly growing area (Altman2003). the case of Maxwell shows that despite the far-reaching practical implications of such legal change, bankruptcy law opens up an almost virgin field of inquiry for sociolegal scholars and sociologists. Given the enormous impact bankruptcy reforms are alleged to have, little research has appraised what or who shaped the bankruptcy laws in either country. Empirical studies document the aftermath and apparent consequentiality of the reforms. Bankruptcy law provides an especially valuable site to account for the distribution of power among corporations for two reasons. On the one hand, at the moment of bankruptcy, every credit relationship, which is to say every financial relationship with other companies, banks, the state, consumers, suppliers, workers, and even communities, is simultaneously thrown into doubt. In principle, every player in the organizational network is at the bankruptcy table. All their interests are manifest, as each vies for a piece of a pie that will be too small to satisfy them all. On the other hand, who wins is directly contingent upon statutory priority or on the strength of their security--the legal instruments creditors have used to protect their interests. This conjunction

Entrepreneurship Essay Example | Topics and Well Written Essays - 1500 words

Entrepreneurship - Essay Example A Retail clothing store is also chosen because of the relative ease with which it can be started. Usually clothing retailers do not manufacture their own garments and outsource all their manufacturing to third parties. This is done to keep the focus on the main business activity that is selling garments. In this paper a discussion will be made on how to start a clothing retail business in United Kingdom. A brief outline will be given regarding the idea of the business in the paper. Business developed alongside with costs and market research will also be included in the paper. Major operational issues will also be discussed alongside with the target market and consumer in the paper. Outline of the business Idea The idea behind the business is to open a discounted clothing retail store. The store will offer garments at very affordable rates to the consumers. The aim is to cater to the needs of the consumers in the most affordable form. Low priced clothing will be the unique selling pro position of the business. The notion of selling clothing at lower price is justified because there are many people who would prefer buying clothes at affordable rates. Not many people can afford high prices, even for fashionable clothes, and therefore this store might be able to attract a large number of people. Profit margins will have to be slashed but large amount of sales is likely to compensate for lower profit margins. Another important part of the business strategy will be outsourcing of manufacturing to countries like China and India. These countries are well known for their textile products and can produce garments at very low rates, and European Union countries are already buying textile products from these countries (European Commission, 2012). The business will be outsourcing its manufacturing in order to make sure that enough attention is given to things that are important like marketing and sales. Also expertise of producing clothes at affordable rates is not available in the country and therefore taking help from specialized the developing countries might be the only possible option. The strategy of outsourcing also complements the overall business strategy of the company as it will allow us to order large quantities which will be necessary for large number of sales. The idea behind the business is to attract people who look for clothing at lower prices. The retail clothing store will also focus on quality and this will also attract consumers. After the economic crisis of 2008 people have seen their purchasing power reduced. This is why people will be interested in such economic times in affordable clothing line. Lower prices will be the main focus of the business and this will also be used in the marketing of the business in the country. Market and Consumers The main target market for the business will be the younger generation. Young people usually are short of money; therefore, they look for good bargains when it comes to clothing. They look for new and trendy garments which are affordable, and this is exactly what will we provide them. Younger generation is also the main target market because of the ease with which they can be targeted using social media and other cost effective method. Another major target market for the business will be middle aged people. Economic recession has created many financial problems for middle class