bank risk analysis
Global
Statement of purpose
The Global Solution Tobacco project(GST) if success will boost the gross profit of the Global Solution by 176 percent in the nest fiscal year(2013) according to the research department of the global Solution. It will move our core business into another level in terms of profitability.
Outline
Global Solution core competency has always been the production of agriculture product such as corns and rice. The corporation owned approximately 46590 acre of land throughout the United States, 78 percent of those are located in North Carolina (one of the biggest tobacco producer in the United States). In 1989 the return on investment of the production was around 17 percents, which was quite impressive compare to the industrial average 11 percent. However, in 2010 the profits margin seems to decline to 12 percents. According to the our analyst, such trend will continue for at least another decade due to the open doors policy which makes it easier for the international firms to invest in the US. Demand for the product remains unchanged while more competitors are in the market. Global have to immediately take some action against this matter. There must be a substantial change to our core business.
Background
In the past, the agricultural products that always be number one when it comes to the profits margin is the Tobacco. Very small investment, but large returns. The profit margin is more than 300 percents. So, what differentiate the tobacco with another agricultural product? Why the selling Tobacco is more profitable than other agricultural product when there are less consumers. The answer is that, first, there are no alternative to tobacco. Tobacco is tobacco. Unlike vegetable, there are so many alternatives for them, think about broccoli, lettuce, cucumber onion and many more. Second, not every that the tobacco can be grown. It is very hard for the tobacco to grow if the climate and the soil is not right. As you can see from the world
Statement of purpose
The Global Solution Tobacco project(GST) if success will boost the gross profit of the Global Solution by 176 percent in the nest fiscal year(2013) according to the research department of the global Solution. It will move our core business into another level in terms of profitability.
Outline
Global Solution core competency has always been the production of agriculture product such as corns and rice. The corporation owned approximately 46590 acre of land throughout the United States, 78 percent of those are located in North Carolina (one of the biggest tobacco producer in the United States). In 1989 the return on investment of the production was around 17 percents, which was quite impressive compare to the industrial average 11 percent. However, in 2010 the profits margin seems to decline to 12 percents. According to the our analyst, such trend will continue for at least another decade due to the open doors policy which makes it easier for the international firms to invest in the US. Demand for the product remains unchanged while more competitors are in the market. Global have to immediately take some action against this matter. There must be a substantial change to our core business.
Background
In the past, the agricultural products that always be number one when it comes to the profits margin is the Tobacco. Very small investment, but large returns. The profit margin is more than 300 percents. So, what differentiate the tobacco with another agricultural product? Why the selling Tobacco is more profitable than other agricultural product when there are less consumers. The answer is that, first, there are no alternative to tobacco. Tobacco is tobacco. Unlike vegetable, there are so many alternatives for them, think about broccoli, lettuce, cucumber onion and many more. Second, not every that the tobacco can be grown. It is very hard for the tobacco to grow if the climate and the soil is not right. As you can see from the world