Week 7 Duscussion Responses
Week 7 Discussion Responses – Int_Biz
Discussion Response 1
By: R,P
Relative Certainty: Terrorism is unlikely to disappear by 2025, but its appeal could lessen if economic growth continues in the Middle East and youth unemployment is reduced. For those terrorists that are active the diffusion of technologies will put dangerous capabilities within their reach.
This Relative certainty is something I agree with. Economic growth and reduction in unemployment is something that could reduce the appeal and enrollment in terror groups. Unfortunately, the diffusion of technology would put dangerous capabilities in the hands of people that want to use it for the wrong reasons. Just like gang culture in the United States, education and employment opportunities are the things that lack in the areas hardest hit by that culture. Terror groups rely on the uneducated and young men with no job prospects to join their cause and be willing to die for a type of brotherhood. As long as there is oppression in the world there will be a type of terrorism, but curbing the appeal would help contain the amount of people that join and the dwindling numbers could render any group obsolete save a few meetings that would occur.
Key Uncertainty: Whether an energy transition away from oil and gas-Whether an energy transition away from oil and gas-supported by improved energy storage, biofuels, and clean coal-is completed during the 2025 time frame.
This uncertainty is something that I have thought about for our future as well. The need for an energy transition from oil and gas is needed to help save our planet. I am not sure clean coal could actually be a thing, but other energy sources are hopefully in our near future. The problem I see is the Oil and gas lobbyists in Washington that will do anything to keep making money for as long as they can. Also, this transition is hurt with current administration rolling back any EPA regulations that were put into place and pulling out of the Paris Climate Accords. I hope that soon people will come together and realize that companies that are not part of the solution should be boycotted so they lose millions in sales and then can’t have pull with the legislators that are holding the country back.
Discussion Response 2
By:J,N
"The potential for conflict will increase owing to rapid changes in parts of the greater Middle East and the spread of lethal capabilities."
I personally can see this statement going both ways, depending on the type of leadership that comes into power over the next 8 years around the world. If there are tough but diplomatic leaders working with the same type of leaders in the middle east, there might be some stabilization. The big factors I believe in preventing more destabilization of the Middle East are the improvement of technology and the oil situation around the world. If information were to become more accessible for the people of the Middle East, they could be free to actually read about what is going on all over the world instead of being brainwashed by propaganda or the ideologies of those from past generations. The new generations could be free to develop their own opinions and make their own decisions. Also, the more we as a world are able to move away from oil as our primary resource for energy, I believe this will help the situation in the Middle Easy by actually focusing potential solutions on the actual people who live there instead of the interests of foreign bodies that want to utilize the resources of the region.
"Whether an energy transition away from oil and gas-supported by improved energy storage, biofuels, and clean coal-is completed during the 2025 time frame."
While I do believe that we will be in a much more sustainable situation in regard to the energy sector, I find it hard to have confidence that we will be completely off oil and gas-supported energy sources by the year 2025. We have made tremendous strides in advancement and application of renewable energy sources in the past decade alone. Countries around the world are beginning to realize that changes need to happen to alter the way we treat the earth, and even multinational organizations are involving themselves, such as the UN, NATO, and IMF. At the same time, there is still nowhere near the amount of pressure needed to actually drive us away from oil/gas completely by 2025. For example, the US Federal Government's goal for 2025, by way of Executive Order 13693, is to have only 30% of their energy consumed to be from renewable energy sources (Office of EERE, 2015). If one of the most influential governments in the world is only shooting for 30%, how could we possibly expect the rest of the world to completely stop the use of oil and gas as their source of energy.
Office of EERE, (2015, March 25). Planning for Federal Sustainability in the Next Decade. Retrieved October 11, 2017, from https://www.gpo.gov/fdsys/pkg/FR-2015-03-25/pdf/2015-07016.pdf
Week 7 Discussion Responses – Fin_Acct
Discussion Response 1
By: E,S
The Pear Corporation makes and distributes PC’s and various peripheral devices to the Global Technical Consumer market. The company’s global performance has been excellent and has driven their stock price substantially above the preferred trading range of $50 per share and the company’s board of directors is contemplating a strategy to reduce the stock price.
They are considering either a stock split or stock dividend strategy to develop more shareholder wealth and at the same time lower the stock’s trading price to a more normal and affordable trading range. As the investment banker for the Pear Corporation you must recommend the best financial strategy for them that will:
A. A. Lower the stock price and allow for more trading volume.
B. B. Enhance current shareholder wealth
C. C. Keep the long-term growth prospects for the company intact.
Please provide some reasons for you decision and what the long-term effects will be for the Pear Corporation.
The Pear Corporation has a good problem! This is an issue many companies wish they had! They are doing well but want to control the growth. My thoughts are that Dividends paid per share can be a powerful motivator for income-oriented stock investors. So if you are looking for more long term investors this is a good avenue. Dividend yield is the dividend per share divided by the price per share. When a stock price rises, the dividend yield declines unless the board decides to raise the dividend amount, which is another issue they will have to monitor at Pear. The board of directors may welcome higher stock prices, but they may perceive a problem if the prices go too high. A common sentiment on Wall Street is that high stock prices scare away the “small investor." In response, the board can declare a stock split, which increases the number of shares outstanding while cutting the price of each share. This in my opinion just allows more shares to be purchase if the investment community believes it is a growth engine.
To me the strategy would be both but the only answer for question A would be a stock split. They are seen as a positive activity in the investment community and I have seen in many readings that stock splits for the most part outperform others. Using the strategy of both gains the proper answer for all three questions being presented and in the long and short term keep the company on a proper trajectory.
Discussion Response 2
By: M,H
Essentially the best financial strategy is for the Pear Corporation to lower the price of the stock through stock splitting in efforts to make it more appealing to investors and therefore will increase the percentages of buyers and inspire more growth for the business. If the stock is not within a reasonable price range the company sabotages its own financial investments by capping the buying market to only higher end investors that may or may not choose to invest. If it is a more appealing price in stock it will help make the business sell itself by showing that it cares for the investors from all financial backgrounds to help them be successful on the rise of the Pear Corporation. The more investors the more wealth the Pear Corporation will attain. If the company stays focused on the success of the investor and others verses certain types of profiled investors it will continue to be open minded and create longevity in the success of its business.
Create continuous opportunities of education over the business and why people should invest in the Pear Corporation, what benefits does it provide for the investors and for the good of all people. The more educated the investors are and they can relate to or want to help giving to the more it will be appealing and enticing to investors. The more confusion individuals have about a business the more likely they will not invest in that company.
Remain in good moral standing with the public and taking ownership of any mistakes made and openly discuss it when it does occur. When the public distrusts a company after wrongdoings that have occurred their reputation is tarnished and it loses investors naturally.