Question
SUMMARISE THE ETHICAL DILEMMA: You are a financial consultant and have been engaged by FOMERto assist the company with a number of issues related to
SUMMARISE THE ETHICAL DILEMMA:
You are a financial consultant and have been engaged by FOMERto assist the company with a number of issues related to its operations and financial accounts. You are communicating directly with FOMEX's executive management team,CEO and CFO. FOMER is a (hypothetical) Ausie based food manufacturing company with shares listed on the Australia Stock Exchange . It manufactures its products locally at its factory . About 30% of its finished products are sold in the Australian market and the other half is exported, mainly to Asia.
After growing rapidly for several years, the company has recently experienced declining profitability due to a range of factors. The company's share price has also fallen by more than 50% over the last few years. As a publicly listed company, FOMEr's executive management team has come under increasing pressure from its shareholders.
FOMER's CEO, tells you that unless they can find ways to increase profitability, the company's future is in doubt. As a result, the company is considering moving its manufacturing facilities offshore to a country in South East Asia. Analysis the company has carried out suggests that this would significantly reduce costs and create efficiencies by moving manufacturing closer to its Asian export markets.
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