Effects of YPF Nationalization Research Paper Example | Topics and Well Written Essays - 1000 words

Effects of YPF Nationalization - Research Paper Example The nationalization has also severed Argentina’s social relations with other countries that threatened to impose stringent political and economic sanctions on Argentina. Nationally, the social effects of the nationalization include an increase in the amount of taxes paid by Argentines (Cassidy, 2012). The government is also restricting currency flight, which is growing at an alarming rate as more and more Argentines lose faith in the country’s economic prospects. As a consequence, Argentines continue to encounter immense restrictions, particularly with regard to making investments. The Argentine President infuriated Argentina’s allies such as Spain but also won the favor of a massive portion of Argentines who consider the expropriation of Repsol as serving Argentina’s interests. The Argentine government’s decision to wrench control from Repsol continues to instigate fear amongst Argentines, as well as other people in the region. This is largely beca use YPF is a prominent company, which contributes substantially to the economy of South America. Therefore, other South American countries are bound to be adversely affected by Argentina’s move to nationalize YPF. As a consequence, these nations are likely to consider the Argentina government as irresponsible with the country’s and region’s wellbeing. ... In essence, the nationalization of YPF will cause detrimental effects to the government’s capacity to provide its citizens with proper social services. On the other hand, Argentina is likely to suffer fuel scarcity as a consequence of the nationalization. This is because the country does not have the capacity to explore its vast oil and gas resources. Oil and gas scarcity will, in turn, result in increased living costs on the people of Argentina. Effects of the Nationalization on society in Argentina The nationalization of YPF serves to move Argentina back to the status of a net energy exporter while at the same time having immense sovereign power over the country’s energy industry, as well as natural resources. This perception towards the effects of YPF’s nationalization on Argentina’s social environment is quite distinct from the former signals, which indicated that the Argentine government was moving towards a wholesome nationalization of the countryâ⠂¬â„¢s oil and gas resources. As a consequent, the nation recognized that it its domestic investor pool was quite inadequate, and the country seriously required foreign expertise, as well as foreign investments to enable it tap its energy resources (Romero, 2012). This was especially the case regarding Vaca Muerta’s immense shale oil and gas reserves. In essence, all these moves signify Argentina’s growing appreciation for its sovereignty both socially and economically as the country is no longer afraid to invite a clash with other nations in its fight for its rights. Reception YPF’s nationalization was warmly welcomed by Argentines who thought that the government could have expropriated 100%, not just a portion of it. Most Argentines believe that the

Strategic Management for Real Chocolate Company Research Paper

Strategic Management for Real Chocolate Company - Research Paper Example Political: Decrease in over all market demand due to unstable political situation. Economic: The Economic downturn being experienced in the whole world can be lethal for the demand of chocolates. Socio-cultural: The population of U.S is getting more conscious about the problems related to health. Any product accused of effecting health of the people can lead to the loss of market share. The changing demographics of US are also affecting the demand patterns. Technological: Increased innovation and technological improvement in manufacturing and services resulting in shape of economies to scale. Legal: Improved laws regarding the health affecting food products. Environmental: The industry can face environmental threat because of the Agro-terrorism. a) Segments (main market segments): The main market segments are the B2b customers getting the franchise of the company. b) Differentiation opportunities: Artisan chocolates are creating marketing Niches. The company can also experiment with exotic flavors and ingredients mixes as experimented with big chocolates in past. Godiva Chocolatier and Russell Stover, Company's largest competitors, hold a larger share of the global market in sales of chocolates. This likely was an outcome of being a publicly traded company and maintaining the capital required for large-scale marketing ventures. Regardless, Real Chocolate Company only maintains between eight and 12 percent of the entire market, which is insufficient for their growth requirements. Market Penetration: The revenue of the company can be increased by the introduction of new franchising schemes as this can be a low cost and high revenue option. The...This likely was an outcome of being a publicly traded company and maintaining the capital required for large-scale marketing ventures. Regardless, Real Chocolate Company only maintains between eight and 12 percent of the entire market, which is insufficient for their growth requirements. The revenue of the company can be increased by the introduction of new franchising schemes as this can be a low cost and high revenue option. The company should also keep its share in the annual sales of its franchised stores and outlets. The new product to be marketed to our existing customers can be the Dark Chocolate. This will be an innovative product for the loyal customers of the Company. The Company should also introduce new franchising programs with different offers for franchisees. The Real Chocolate Company is currently working in a market where sales are being affected by competitor activities and the external environment. There are several opportunities available for Real Chocolate Company to shift its position as a follower in the sales market and emerge a leader. The company reported the revenues of $ 31.6 million which was 12 % more than the previous year.