Preview

Groupe Ariel

Powerful Essays
Open Document
Open Document
3043 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Groupe Ariel
4194
APRIL 19, 2010

TIMOTHY A. LUEHRMAN JAMES QUINN

Groupe Ariel S.A.: Parity Conditions and Cross-Border Valuation
On June 23, 2008, a Monday morning, Arnaud Martin arrived at his office in Groupe Ariel’s corporate headquarters in Mulhouse, France. The previous week, Martin had requested additional financial information about an investment proposal from Ariel-Mexico, a wholly owned subsidiary that operated a manufacturing facility and a regional sales office in Monterrey, Mexico. The information had arrived late Friday—too late for Martin to analyze—and was waiting for him Monday morning. As a financial analyst for a global manufacturer of printing and imaging equipment, Martin examined many cross-border projects, particularly since Ariel had accelerated its move into emerging markets several years earlier. The Mexican investment proposal called for the purchase and installation of new automated machinery to recycle and remanufacture toner- and printer cartridges. Cartridge recycling had become an important part of Ariel’s business in many markets and promised continued growth. Many office product retailers operated formal toner cartridge recycling programs, for both the environmental benefits of keeping materials out of landfills and demonstrated cost savings for their customers. Writing in a leading trade journal, one analyst predicted, “We are going to see more and more refined approaches to recycling and remanufacturing [cartridges] in the coming months and years … Both corporate and individual consumers are becoming habituated to it. They have simply come to expect recycling as an option, even for smaller cartridges at lower price points.” Ariel-Mexico’s Monterrey plant began its cartridge recycling program in 2005. The plant’s recycling process consisted of a sequence of operations carried out almost entirely by hand, with the help of hand tools and a simple machine. The investment proposal called for replacing this process with new automated

You May Also Find These Documents Helpful

  • Good Essays

    Macville Enewsletter

    • 820 Words
    • 4 Pages

    | Did you know the Government...The Government has many pieces of legislation designed to protect the environment, companies are required to abide by these. One such piece of legislation is the ‘Waste Reduction and Recycling Bill 2011’, it sets out guidelines to help reduce the amount of waste produced and recover resources where possible. The bill sets out the preferred order in which waste and resource management options should be considered: 1. REDUCE and AVOID unnecessary resource consumption and waste generation; 2. RE-USE waste resources without further manufacturing; 3. RECYCLE waste resources to make the same or different products; 4. RECOVER waste resources, including the recovery of energy; 5. TREAT waste before disposal, including reducing the hazardous nature of waste; 6. DISPOSE of waste only if there is no viable alternative.It’s interesting to note that the last option should always be disposal and that there are many options available to us all to avoid that option and minimize waste.A Macville Success StoryRecently Macville conducted an audit of our resource usage and uncovered some home truths that were less than satisfactory. So we decided to make a change for the better and set ourselves some challenges to turn things around. One area that we focused on was our need to print, and we wanted to reduce this to save on paper, toner and servicing of the printers and copiers. We set the challenge to reduce our printing by 20% over a 2 month period. This was no easy feat, and in order to achieve this, we had to re-think the way we did business.With new procedures in place at the end of the first two months all costs were down. Our monthly paper consumption went from 599 reams to 479, reducing costs by $477.60. Toner costs dropped from $686 to 548.80 and cost of…

    • 820 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    An alternative to directly sending your recycled ink and toner cartridges to Re-Nu-Cartridge is dropping off the cartridges at a Re-Nu-Cartridge recognized recycling partner.…

    • 274 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Everything from raw materials to packaged products is seen as a valuable asset to protect. Through comprehensive recycling and reuse programs, waste has been cut by more than 70%. This is a huge step toward their goal of becoming a "zero waste" company.…

    • 3991 Words
    • 16 Pages
    Good Essays
  • Powerful Essays

    * Reduces environmental waste by offering paperless billing, receipts, and implementing a trade-in program to recycle devices…

    • 1287 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Recycling is more than a waste-management strategy; it is also an important strategy for reducing the environmental effects of industrial production. Supplying industry with recycled materials,…

    • 2538 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Haha

    • 723 Words
    • 3 Pages

    Feedback: Remanufacturing implies refurbishing and reselling a product; recycling implies reclaiming products for a different use (e.g., using paper to make cardboard).…

    • 723 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Revenue and Production

    • 3341 Words
    • 14 Pages

    The purpose of this report is to analyze the opportunity to produce plastic components for cartridge production and choose the best alternative. It is predicted that the annual demand growth is a triangular distribution with a minimum of 5%, most likely of 17% and a maximum of 25%. Due to the continuous growth in the demand, the alternatives cannot be compared using just the data for 2010. An analysis is carried out for the time period 2011 to 2015 and the present worth of the net income is considered as the criteria to select the alternative. The analysis basically can be divided into 5 steps:…

    • 3341 Words
    • 14 Pages
    Good Essays
  • Satisfactory Essays

    Mass Transfer

    • 378296 Words
    • 1514 Pages

    Vice President and Executive Publisher: Don Fowley Acquisitions Editor: Jennifer Welter Developmental Editor: Debra Matteson Editorial Assistant: Alexandra Spicehandler Marketing Manager: Christopher Ruel Senior Production Manager: Janis Soo Assistant Production Editor: Annabelle Ang-Bok Designer: RDC Publishing Group Sdn Bhd This book was set in 10/12 Times Roman by Thomson Digital and printed and bound by Courier Westford. The cover was printed by Courier Westford. This book is printed on acid free paper. Founded in 1807, John Wiley & Sons, Inc. has been a valued source of knowledge and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Our company is built on a foundation of principles that include responsibility to the communities we serve and where we live and work. In 2008, we launched a Corporate Citizenship Initiative, a global effort to address the environmental, social, economic, and ethical challenges we face in our business. Among the issues we are addressing are carbon impact, paper specifications and procurement, ethical conduct within our business and among our vendors, and community and charitable support. For more information, please visit our website: www.wiley.com/go/citizenship. Copyright # 2011, 2006, 1998 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning or otherwise, except as permitted under Sections 107 or 108 of the…

    • 378296 Words
    • 1514 Pages
    Satisfactory Essays
  • Good Essays

    Technology Junk

    • 363 Words
    • 2 Pages

    Technology is a major part in the lifestyle of a modern consumer. We are creating and upgrading technology faster than ever before. People throw away their technology faster than it can be recycled. This is causing huge worldwide waste problem. Landfill capacities aren’t large enough, so all the junk is being sent to third world countries. This causes a devastating impact on the environment all around the world, some places more than others. Companies around the world are starting to think of ways to recycle our technologies in an environmentally friendly way.…

    • 363 Words
    • 2 Pages
    Good Essays
  • Good Essays

    This Third Party Organization (TPO) Business Plan outlines an organizational structure and a mechanism for delivering waste management services for waste electronic products (ewaste) in the states of Oregon and Washington. Project participants hope that these findings could apply in other multi-state situations as well. To illustrate how a TPO could provide practical value on a business and policy basis, a Steering Committee of electronics manufacturers developed this Conceptual Business Plan based on a set of key assumptions about TPO responsibilities and the broader, legislated electronics recycling system. This Plan was produced as part of the larger…

    • 969 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Group and Little Mermaid

    • 1428 Words
    • 6 Pages

    Amity Campus Uttar Pradesh India 201303 ASSIGNMENTS PROGRAM: BBA SEMESTER-I Subject Name Student Name Roll Number (Reg. No.) Batch : Business mathematics : : : INSTRUCTIONS a) Students are required to submit all three assignment sets. ASSIGNMENT Assignment A Assignment B Assignment C DETAILS Three Subjective Questions Case Study…

    • 1428 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    OEC case study

    • 2415 Words
    • 10 Pages

    Office Equipment Company (OEC) manufactures a wide variety of office equipments such as copying machines, recording machines, mail scales and paper shredders in eight different countries and distributes and sells products worldwide. It has no manufacturing facilities in Peru but has been selling and servicing there since the early 1970s. OEC first tried selling in Peru through independent importers but quickly became convinced that in order to make sufficient sales it needed to have its own staff there.…

    • 2415 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    When one wants to globalize a company, especially when it is from a developing country like Mexico, you really need to apply more advanced management techniques to do things better. We have seen many cement companies that use their capital to acquire other companies but without making the effort to have a common culture or common processes, they get stagnant. 1 —Lorenzo Zambrano, Chairman and CEO CEMEX On June 7, 2007 Mexico-based CEMEX won a majority stake in Australia’s Rinker Group. The $15.3 billion takeover, which came on top of the major acquisition in 2005 of the RMC Corporation – then the world’s largest ready-mix concrete company and the single largest purchaser of cement – made CEMEX one of the world’s largest supplier of building materials. This growth also rewarded CEMEX’s shareholders handsomely through 2007, though its share price had fallen precipitously in 2008 in response to the global downturn and credit crisis coupled with the substantial financial leverage that had accompanied the Rinker acquisition. CEMEX’s success over the 15 years from its first international acquisition in 1992 to the Rinker acquisition in 2007 was not only noteworthy for a company based in an emerging economy, but also in an industry where the emergence of a multinational from an emerging economy (EMNE) as a global leader could not be explained by cost arbitrage; given cement’s low value to weight ratio little product moves across national boundaries. Much of CEMEX’s success could be attributed to how it looked at acquisitions, and the post-merger integration (PMI) process that ensued, as an opportunity to drive change, and as a result, continuously evolve as a corporation. Since it began globalizing its operations in the early 1990s, the…

    • 6532 Words
    • 27 Pages
    Powerful Essays
  • Good Essays

    I will never forget those amazing days at the end of each year in middle school in Mexico, because Mr. Escobar took us on a field trip every year. The first year in middle school Mr. Escobar took us on a trip to visit a company called Recycle Paper. I remember thinking how incredible recycle paper was since it was my first time in my life to see a recycle paper company. The temperature in the recycled paper room was cold because the company was located among lots of trees. In the company recycle paper room there was many machines where the paper was processed for recycle. Each machine has a different job and each job was equally important to the finishing product. Next to the room where the machines that recycled the paper where located, there was a little gift shop that sold different funny figures made out of the recycled paper that company made which they used as an example of there recycled paper. The gift shop also sold other kinds of things like notebooks, posters and other varieties of papers that came in different kids of colors. After the…

    • 771 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Brent Cartier, Manager of Special Projects in the Materials Department of the HewlettPackard (HP) Vancouver Division, was enjoying a hot cup of coffee after lunch on the long flight to Germany. The last few days had been exhausting. Meetings, conferences calls and non-stop phone calls had been his daily routine. The next few days would be worse, he thought, and so he had better try to get some sleep. Brent recalled his meeting a few days ago with Billy Corrington and his team, David Arkadia and his lieutenants. “The inventory model that we built for you can take care of the magnitudes of forecast errors, lead times, and the service targets that you want. The use of such a model would certainly bring discipline and rationality to the safety stock setting process. It is nice, but I do not think that we should stop with the implementation of the model.” David showed excitement when the idea of redesigning the DeskJet so that it could be localized remotely at the DCs was brought up. This meant that the power supply module would have to be redesigned so that it could be added to the printer at the last minute as a simple plug-in operation. This would be followed by simple testing and then adding the other localization materials, such as manuals and final packaging, to the product. He was especially pleased to hear that Billy’s model could quantify the benefits in terms of inventory reduction and service improvement resulted from such a change. David was quick to secure the blessings of the manufacturing manager, Al Gracio, to start working out the details of such a redesign. Brent spent two days meeting with the Engineering group to outline the Materials Department’s recommendation. It was not an easy sell. There were a number of engineers who could not…

    • 927 Words
    • 4 Pages
    Good Essays

Related Topics