Tescos Failure in America - 1479 Words

Tesco’s Failure in America In times of fast progress, in terms of economic development and globalisation, many multinational companies are extending their business overseas. One of those many firms is Tesco. This report will elaborate more about how Tesco failed in America when it encountered cultural and economic differences. Tesco is a British owned multinational grocery and general merchandise retailer that was found in 1919 by Jack Cohen in London. (Tesco PLC, 2013). Over the years Tesco has grown rapidly and now it operates in 14 countries around the world. (Tesco PLC, 2013). Tesco is now the third largest retailer in the world. (Tesco PLC, 2013). In 2007 Tesco entered the US market under the name of Fresh amp; Easy, opening†¦show more content†¦The Americans were confused whether it was a convenience store or a discount store. (Sonne amp; Evans, 2012). This was not an American style. Tesco was overconfident that British and Americans speak the same language therefore it shouldn’t be too hard convincing the customers but Tesco didn’t realise that British and Americans have a totally different culture. (Tesco close American strores,2012, para 6). Any business experiencing environmental problems are likely to experience failure, for example Nokia struggled due to rise of smart phones. Tesco’s success in UK was due to its use of consumer data garnered from loyalty cards but that might not be enough for American market to be convinced. Isomorphism states that for a business to be successful it must be able respond to factors of the environment effectively that affects them. Tesco’s did chose a favourable environment to do business because during it research Tesco found that west coast was one of the healthy eating rout. (Geoghegan, 2011,para 25). Somewhere during their research Tesco did forget that America has the highest obesity rate in world at 30.6%. (Health statistics, 2013). Therefore they are the biggest buyers of fast foods in the world. Another important environmental factor Tesco should have used to manipulate the American customers was through heavy advertising. Fresh amp; Easy should have used sports celebrities to promote the supermarket as one of theShow MoreRelatedTesco’s Failure in America1479 Words   |  6 PagesTesco ’s Failure in America In times of fast progress, in terms of economic development and globalisation, many multinational companies are extending their business overseas. One of those many firms is Tesco. This report will elaborate more about how Tesco failed in America when it encountered cultural and economic differences. Tesco is a British owned multinational grocery and general merchandise retailer that was found in 1919 by Jack Cohen in London. (Tesco PLC, 2013). Over the years TescoRead MoreEssay on Enrique Villarreal Tesco PLC The Strategy For India1153 Words   |  5 PagesMulti-Brand Retail, creating the opportunity that Tesco had been waiting for. From Exhibit 1 we can see that Tesco PLC was not the first global retailer to enter India, but they were the first grocery and multi-brand company. In 2014 the year of Tesco’s entry into the market, India had a population forecast of 1,274 (million). With a projected analysis of continued growth for personal disposable income of 46% by 2016 and an increasing GDP (Exhibit 2), the market was built for a global economic powerhouseRead MoreTeco PLC Company Closing Markets in Japan and United States2775 Words   |  11 PagesStates markets, Tesco had stated that they were to end of such operations due it being unprofitable (Reuters, 2013). This paper seeks out to critically analyse and address the factors which had led to Tesco’s failure in the Japanese and United States market. To aid in justifying the influences in Tesco’s departure relevant international business literature will be evaluated for the suggested reasons for the exit. Furthermore, Part (B) of the paper seeks out to discuss the management of transnationalRead MoreTesco International Management9662 Words   |  39 Pages †¢ Environmental 37 †¢ Legal 38 Conclusion: Appendix (if applicable) Bibliography: 39 1. Identify the reasons behind Tesco’s internationalisation strategy and evaluate Tesco’s international expansion in the context of YIP’s â€Å"drivers of globalisation† framework Tesco’s internationalization strategy was both proactive and reactive. In 1997 Tesco was the third largest retailer in England but quickly surpassed its rivals Marks and Spencer’s andRead MoreTesco Case3956 Words   |  16 Pagesauthorised by Judith Keene ISN: 1292002549 CASE STUDY The internationalisation of Tesco – new frontiers and new problems Neil Wrigley, Michelle Lowe and Katherine Cudworth Tesco’s international expansion until 2010 had seemed like a complete success despite the odd hiccough. This case re-examines Tesco’s internationalisation in the context of harsher economic conditions, using a comparison of its operations in South Korea and the USA to draw out important strategic dimensions of the retailRead MoreReport On Explanation Of Tesco2064 Words   |  9 Pagesmultinational grocery headquartered in England. It is the third-largest retailer in the world measured by profits and second-largest grocery retailer in the world measured by revenues (Potter, 2011). It has operated in 12 countries including Asia, Europe and America and is the grocery market leader in the UK (Tesco PLC, 2014). Its stores divided into Express, Metro, Superstore, Extra and Tesco. com since 1970. Initially, it was a focused grocery retailer since the early 1990s. Tesco has diversified itself geographicallyRead MoreUnderstanding Organisations And The Role Of HR 3HRC 2284 Words   |  10 Pagesinsurance and mortgages (http://www.tescobank.com). Tesco’s main customers are the local community, families, single people, professionals and retired professionals. The Tesco customer is looking for value for money and a range of different products. Families and single people are looking for a low cost, value for money range and professionals and retired professionals are looking for a more upmarket range of products. (Tesco Annual Report 2013) Tesco’s core purpose is â€Å"We make what matters, better togetherRead MoreCorporate Governance Tesco2259 Words   |  10 Pagesstock trades, principally the NYSE and Nasdaq, and progressively detailed enactment. One case of the recent is the Sarbanes-Oxley Act, which came into power in July 2003. Not at all like in different parts of the world, in any case, have occasions in America not prompted the presentation of corporate administration codes. One presumable purpose behind this is that American corporate enactment is an issue for individual states and there is hence no national lawful establishment on which to assemble a nationalRead MoreTesco Case Study8461 Words   |  34 Pages Design/methodology/approach – This research draws on a dataset of 62 in-depth interviews with key executives, sell- and buy-side analysts and corporate advisers at the leading investment banks in the City of London to detail the experiences of Tescos European expansion. Findings – The case study of Tesco illuminates a number of different dimensions of the companys international experience. It offers some new insights into learning in international distribution environments such as the ideaRead MoreThe Causes and Effects of Global Recession.3720 Words   |  15 Pageshas resulted in the disintegration of financial institutions, bailout of bank by national governments and slumps in stock markets worldwide. In various areas, housing markets has also suffered. Although the credit crunch in the US was costing America and Europe immense job losses, financial professionals were influenced that Africa will NOT BE unharmed by the global financial crisis because of where it is located. The impact of the US credit crunch on Africa was narrow as a result of the restrictions

Corporate Income Taxes - Constructive Dividends, Redemptions, and

Essays on Corporate Income Taxes - Constructive Dividends, Redemptions, and Related Party Losses Research Paper Corporate Income Taxes Issues and Facts of unreasonable compensation, stock redemptions treated as dividends and related party losses. Closely held companies pay compensation to employees and shareholders, instead of paying dividends since compensation is deductible. The Internal Revenue Service Audit of a company will disallow a portion of compensation deduction on the basis that it was unreasonably excessive; thus treated as nondeductible dividend. The impact of this adjustment has not been of concern since dividends have been taxed to individuals at a rate of 15% versus compensation, which is taxed at a maximum of 35%. Besides, dividend distribution is not subject to employment taxes (Lassila Kilpatrick, 2008). The shareholders transfers common stock to the issuing company in exchange for property or money. The transaction is likely to be either the sale of stock to the outsider or the receipt by the shareholder of dividend from the company. The sale of stock by a shareholder to his/her company is taxed as dividends, instead of being taxed as sales. Some of the issues facing the Congress, courts and treasury over the years is the determination of which transfers of stocks are supposed to be classified as sales and which of them should to be treated as sales. But these parties do accept that transactions are treated as sales unless the transaction was equivalent to the distribution of taxable dividends. Taxes drive number decisions when it comes to owning rental properties. Therefore, landlords have a hard time in tax planning for rental properties. The largesse from the Treasury to the landlords does not have limits. After the deductions, IRS provides landlords with passive losses. Those which exceeds Rent received cannot be used in offsetting ordinary income like salaries. Tax Law and its Implications to Businesses The compensation of the taxpayer from the gross receipt of the business is against IRS laws and regulations on compensation. The taxpayer pays himself very high compensation to reduce the amount of net income of the business; thus reducing dividends distributed among shareholders. Therefore, excess compensation should be treated as dividends and should be taxed differently. Dividends do undergo double taxation since they are taxed at the company level as income and also when being distributed to shareholders as the share of profit. For tax planning purposes, the taxpayer should realize that dividends are taxed at the rate of 15%, compared to compensations, which are taxed at the rate 35% (Bankman, Griffith, Pratt, 2008). Therefore, it is even worse for the taxpayer to pay himself/herself high compensation on the basis of trying to reduce tax burdens. In fact, high compensation increases the tax burden on the taxpayer. The general view of section 162(a)(1) of the Internal Revenue Code as contained in IRS allows publicly traded firms to deduct an unlimited amount of executive compensation for corporate tax purposes because salaries of senior employees are always negotiated at an arm’s length by the profit-maximizing board. On the other hand, IRS uses section 162 (a) (1) to limit corporate deductions for the executive compensation paid by closely held companies because such companies lack enough finances to put in place checks and balances of publicly traded companies (Zelinsky, 2009). When family owned companies redeem shares, the purchase of those shares qualifies for capital gain treatment. Precisely, the sale of shares should be treated as the distribution of dividends to shareholders. The most important result of dividend treatment relates mostly to the difference in tax rates applied to dividends and the long-term capital gains. The long-term capital gains recognized by shareholders who sell shares held for more than one year are taxed at the rate of 20% (Brody Daiker, 2008). Therefore, the redemption of shares by the taxpayer and his son should be taxed at 20% federal rates since they have owned these shares for more than a year. Since there are some differences in the treatment of capital gains and dividends, the taxpayer should in future attempt to structure the corporate distribution as share redemption, other than treating it as dividends in order to reduce its tax burden. Solving the Problem and Communicating the Findings The problem of the unreasonable contribution can be solved by the taxpayer by reducing his level of compensation based on the current level of 5% on the gross receipt. The IRS will treat excess compensation as constructive dividends, which are taxed at the rate of 35%, other than the 15 % tax rate for compensation. As a result, the taxpayer would be forced to pay more taxes because of poor tax planning. In the case of stock redemptions in the construction company, taxes should be remitted at a rate of 20% on the redemption value as required by the federal tax laws. The rental loss from the construction company can neither be offset by tax liabilities for other companies of the taxpayer nor other income like the taxpayer’s salary (Hoffman, Raabe, Smith, Maloney, 2007). Therefore, based on the findings from unreasonable compensation, stock redemption, and rental losses, the client should accept Notice of the Proposed Amendment and adjust as per the requirement of the adjustments. This will relieve the taxpayer from future tax burdens resulting from failure to abide by the set federal tax laws. References Bankman, J., Griffith, T. D., Pratt, K. (2008). Federal Income Tax: Examples Explanations. London: Aspen Publishers Online. Brody, L., Daiker, S. B. (2008). The Insured Stock Purchase Agreement with Sample Forms. Washington D.C: American Bar Association. Hoffman, W., Raabe, W., Smith, J., Maloney, D. (2007). West Federal Taxation 2008: Corporations, Partnerships, Estates, and Trusts, Professional Edition. Stamford: Cengage Learning. Lassila, D. R., Kilpatrick, B. G. (2008). U.S. Master Compensation Tax Guide (2008). Illinois: CCH. Zelinsky, A. S. (2009). Taxing Unreasonable Compensation: Â § 162(a)(1) and Managerial Power. The Yale Law Journal, 637-645.

Social commentary on The Kite runner Free Essays

We are impacted by things that we read, see or hear on a daily basis, and whether we know it or not they change the way we perceive certain topics. Social commentary Is often used by authors and/or artists to draw attention to ineffective elements of a society. This is present in the novels â€Å"Animal Farm† by George Orwell and The Kite Runner† by Khlaed Hosselnl. We will write a custom essay sample on Social commentary on The Kite runner or any similar topic only for you Order Now The â€Å"Animal Farm† Is an allegory about a farm in which the animals revolt against the irresponsible farmer Jones after the Old Major dies and name it â€Å"Animal animals establish seven rules to live by, f which the most Important Is â€Å"All animals are Farm 47). As the years pass by. though, the dynamics of the farm change and the pigs establish themselves ds the ruling class. Orwell ridicules the way Russia tried to rebuild itself after the Bolshevick Revolution with this book. The Kite Runner† is a novel written by Khaled Hosselnl, In which he talks about the drastic difference between lite In Afghanistan before and after the Taliban take over through the point of view of an Afghan boy named Amir. The main themes in the book are love, forgiveness, betrayal, edemption, and ethnic pressure In Afghanistan, but he also focuses In abundance on the Taliban by using the characters’ life to show how much damage the Taliban cause to the country and population. The Taliban come Into power after Russian troops invade Afghanistan, and they make the citizens believe that they are the salvation of the country. Both novels deal with a group of people/animals that start a revolution against the ones in control, then gain power and impose even more severe rules which they corrupt, and end up forming a government more oppressive than the one they revolted against. nce the groups take over they give themselves higher authority than the rest of the population/animals, for example when Napoleon takes over he Is called â€Å"the emperor† and the rest of the animals are called â€Å"comrade†(Anlmal Farm 47-8). The Taliban does something very similar; they demand the population to treat them with respect. Amir finds that out when he comes back to Kabul to take sohrab (given the fact that he lived In U. S. while the Taliban took over Afghanistan, he doesnt know much about them, besides what he heard in San Francisco) and he stares at the Taliban when they drive by. His triend Farid informs him that when the Taliban move past he Is supposed to look at the ground and not directly in their eyes, for the reason that they wanted people to almost bow down to them. Both dictators Impose unreasonable rules when they are in position of power. In â€Å"Animal Farm† Napoleon demonstrates that when he says that anyone who followed snowball, the leader thrown out by Napoleon, would be executed. In â€Å"The Kite Runner† there are many scenes where the Talibs execute the opposition, for example Hassan refuses to leave Baba’s house and as a result he ets shot In the back of the head. Another Intense case of unreasonable punishment takes place at the stadium where one of the Taliban Generals makes a speech about the Taliban’s duty. He claims that the Taliban bring Justice and carry out the shrl’a law, and they believe that if adultery is committed, the adulterers â€Å"throw stones at the windows of God’s house†: although the Shri’a law does not literally say that the Taliban Imply that adulterers should be punished by being stoned to death, tnereTore Its only rlgnt tnat tney stone to aeatn a woman ana a man accused 0T dultery(Cleric 270). However, in both books the dictators corrupt the rules they impose, for example in the â€Å"Animal Farm† the animals have seven commandments they must live by but three of them get changed to suit what Napoleon does or decides. No animal shall drink alcohol†is changed to â€Å"No animal shall drink to excess† when Napoleon gets drunk and almost dies; â€Å"No animal shall sleep in a bed† was changed to â€Å"No animal shall sleep in a bed with sheets† and lastly â€Å"No animal shall kill other animal† was changed to â€Å"No animal shall kill other nimal without cause†(Animal Farm 21-24). In â€Å"The Kite Runner† Assef is a sociopath who grows up to become a Taliban official, so the readers would expect him to carry out the Shri’a law and live by it , which he doesn’t because he stones a woman to death for being accused of adultery and sins even more by raping the kids of the orphanage. There is another contradiction in the Taliban’s beliefs, because music was part of the entertainment banned by the Taliban, but when Amir goes to General Assef to take Sohrab, Assef plays music for Sohrab to dance to. The eginning of dictatorship in both books is caused by a presumed revolution. In â€Å"Animal Farm† the animals revolt against man, take over the farm, and expect to live at peace among themselves. In â€Å"The Kite Runner† the Taliban are supposed to get the Russians out of Afghanistan and bring back harmony in the country. In both cases the leaders fail because the ambitions get the best of them and instead of living happy, they use the opportunity to dictate the others below. In the â€Å"Animal Farm† eventually the Seven Commandments are changed to one that read† All animals are qual but some are more equal than others†,which shows that the revolution is a failure in the farm because it makes the animals exactly what they were protesting against(Animal Farm 112). The Taliban first become known for their ambition to free Afghanistan from the Russians, but once they come into power they impose insane rules against the population and outlaw every type of entertainment, even kite running. In the end the pigs and the Taliban turn into their enemies. Napoleon changes the name of the farm back to Manor Farm and in the final scene Napoleon and Pilkington (a neighboring farmer) are playing cards, although they act friendly, each is trying to cheat by playing ace of spades . The other animals watch the scene and cannot tell the pigs from the humans. In â€Å"The Kite Runner† when the Taliban take over Afghanistan they change everything, Amir points it out when he comes back from America and he sees Kabul, he says â€Å"l feel like a tourist in my own country’ which means after the Taliban had taken over, the country couldVe been easily ruled by strangers because there was nothing left of the Afghanistan he grew p in (Amir 231). Social commentary has a powerful impact in todays society. Khlaed Hosseini and George Orwell convey a strong message with â€Å"The Kite Runner† and â€Å"Animal Farm†; they show that when people strive for a goal but get no satisfaction when they reach it, they can turn revolutions in a government more oppressive and totalitarian. How to cite Social commentary on The Kite runner, Papers