Microeconomics and Business Decision Making Gerber Products in Poland

Essay by ZiehenUniversity, Master'sA+, January 2009

download word file, 11 pages 5.0

Gerber Products In Poland

Individual Case Analysis: Gerber Products in Poland

792-D: Microeconomics and Business Decision Making

July 20, 2007


1. Executive Summary 3

2. Background Information 3

2.1 Key Players 3

2.2 Chronology of Events 3

3. Key Issues in this case 5

3.1 Borek Stary facility 5

3.2 Property Rights 5

3.3 Taxation 5

3.4 Economical Country risks 6

3.5 Political Issues 6

4. Options 7

4.1 Withdraw and re-enter 7

4.2 Negotiate independently Borek Stary facility 7

4.3 Option for taxation 7

4.4 Option for Joint Venture 7

5. Recommendations 8

5.1 Strategy Under Uncertainty 8

5.2 5 Competitive forces model 9

6. Conclusion 10

7. Appendix 11

8. References 11

1. Executive Summary

Gerber Products Company is in the process of purchasing the Polish food producing company Alima. During the final negotiations the political landscape in Poland has changed drastically and Gerber is now facing difficulties in closing the deal.

Gerber is facing several open issues that have not been solved yet. Gerber's representatives could not come to an agreement with Polish government officials on the sales of the Borek Staly Facility, property rights and taxation. Furthermore the political and economical future of Poland is unclear that implies further uncertainties for Gerber's decision makers. The economic models of "Strategy under uncertainty" and "5 competitive forces" were used in this analysis to facilitate the clarification of the open issues.

2. Background Information

2.1 Involved Key Players in this case

Al Piergallini, Chief Executive Officer of Gerber Products Company

Fred Schomer, Chief Financial Officer of Gerber Products Company

Steve Clark, General Council of Gerber Products Company

Martin Lasher, Director of Corporate Planning of Gerber Products Company

John Simpson, Director of Wasserstein Perella

Chronology of Events

The Gerber Products Company was dominating the United States baby food market...