Seagram Greater China: Office Relocation in Hong Kong Harvard Case Solution & Analysis

Vice President of Finance should quickly resolve several options regarding the proposed transfer of the office. His analysis is likely to include an analysis of discounted cash flow (DCF) and the theme of capital asset consolidation and tax benefits. This case compares and contrasts the concepts of DCF and net present value analysis of version Seagram in economic value added (EVA). Also serves to provide a unique Asian focus for this type of solution. Office space and rent-versus-buy option is extremely important decisions facing many managers in Hong Kong. Conventional wisdom in Hong Kong was that the purchase of real estate was more effective - especially given the phenomenal valuation of real estate. However, it may serve to distract the company from its core competencies and tie working capital in unproductive assets. Finally, the case also provides a brief overview of the fixed assets and amortization of association of the tax legislation in Hong Kong. While the discussion brief, it nevertheless provides an adequate first step to further research in this area. Students from other parts of the world will be interested in learning about the differences between the tax laws of the country and Hong Kong. "Hide
by Claude P. Lanfranconi, Jeff Crum Source: Richard Ivey School of Business Foundation 8 pages. Publication Date: June 29, 1999. Prod. #: 99B018-PDF-ENG

Seagram Greater China Office Relocation In Hong Kong Case Solution

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Seagram Greater China: Office Relocation in Hong Kong

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