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BEG Presentation
Liang YuCong
TP031417

Summary of case
Phoenix or Vulture
 BMW purchased ROVER Group in 1994.
 John Towers borrowed 427 pounds million from BMW
 Then decided to ask for a 120 pounds million loan from the government
 This proposition was rejected and they only received 6.5 pounds million
 SAIC went through that brought in 1 pounds billion dollars
 Occurring John and three partners had a compensation package

Ethical Dilemma

A situation in which there is no obvious right or wrong decision, but rather a right or right answer

Affected Stakeholders

A
B
C

John Towers

Partners

Employees

Question1: Why would BMW sell millions of pounds of assets for £10 and lend the buyer an additional £427 million?

1

Phoenix
Consortium

2

Building expenses 3

Labor

4

Investment

Question 2:Why would SAIC want to buy
70 percent of a company that was losing money for £1 billion?

Question 3: With compensation packages already locked in, do you think the executives were committed to making the SAIC’s or Tata Motors’ deals work?

Question 4: If MG Rover had been successful in winning a £120 million loan from the government rather than a £6.5 million loan, would the outcome of the SFO investigation have been any different?
Sink the company

Huge payout

Roaming the streets

Something productive

Question 5: The Phoenix Four maintain they did nothing wrong. How would you defend their conduct from a business ethics perspective? a part of the compensation package for the four

Go south Instead of taking the

Over 6.5 million in order to bail

money

them out

Question 6:What do you think the outcome should have been for the Phoenix Four?

Conclusion
This case bankruptcy is presumed to have gone-concern value.
BMW acquired a wrong brand in the wrong time They knew from the failure lessons to learn

Thank you!