Chapter 3
Lisette Negron
Chapter 3: Analyzing Managerial Decisions: Property Right Security in Russian Deprivatization. Instructor: Dr. James Larriviere
Saint Leo University
5 July 2015
(1) What impact will the prospect of deprivatization have on investment by managers of privatized firms?
It will cause a devastating situation to privatized firms managers, it will greatly affect the structure and the projected strategic plan. They invest time and money including hiring staff to accomplish the project; an organization cannot afford deprivatization to come up and delineate goals and profits. Long terms and short terms incentives will also affect how employees behave; therefore, losing profits mean that they will not afford the promised incentives to their employees. This will result chaos in the structure and behavioral outcomes inside and outside the firms. They will lose their objectives, as well as their marketable products.
(2) What effect will deprivatization have on foreign investment in Russia?
As we discussed, chaos will affect the structure and marketable products, causing a decrease in business or investments. In order to increase investment in foreign countries, deprivatization shall not exist or shall not interfere with privatization firms. The case states that certain past privatizations would be declared illegal and the transactions would be reversed. Every transaction will be illegal, reversed and invalid. Therefore, investing will only cause a major impact in the organization because investment will be a lost, there will not be any profit. Overall, no investment. (3) Do you think that mass deprivatization is in the long-run best interests of Russia?
Deprivatization in Russia is not to their best interest. It is obvious that Russia shall not continue to participate in investment funds. Anything from a missing piece of paper in the original tender offer to investment requirements not being met might be ruled or violation
Chapter 3: Analyzing Managerial Decisions: Property Right Security in Russian Deprivatization. Instructor: Dr. James Larriviere
Saint Leo University
5 July 2015
(1) What impact will the prospect of deprivatization have on investment by managers of privatized firms?
It will cause a devastating situation to privatized firms managers, it will greatly affect the structure and the projected strategic plan. They invest time and money including hiring staff to accomplish the project; an organization cannot afford deprivatization to come up and delineate goals and profits. Long terms and short terms incentives will also affect how employees behave; therefore, losing profits mean that they will not afford the promised incentives to their employees. This will result chaos in the structure and behavioral outcomes inside and outside the firms. They will lose their objectives, as well as their marketable products.
(2) What effect will deprivatization have on foreign investment in Russia?
As we discussed, chaos will affect the structure and marketable products, causing a decrease in business or investments. In order to increase investment in foreign countries, deprivatization shall not exist or shall not interfere with privatization firms. The case states that certain past privatizations would be declared illegal and the transactions would be reversed. Every transaction will be illegal, reversed and invalid. Therefore, investing will only cause a major impact in the organization because investment will be a lost, there will not be any profit. Overall, no investment. (3) Do you think that mass deprivatization is in the long-run best interests of Russia?
Deprivatization in Russia is not to their best interest. It is obvious that Russia shall not continue to participate in investment funds. Anything from a missing piece of paper in the original tender offer to investment requirements not being met might be ruled or violation