NationStates Jolt Archive

OOC: Yes this is another recession RP

IC:

”In recent news, delegates are being sent to Knootoss and other nations to asses the possibility of stock purchases and buy-outs by Anera Inc. It is un-known what the governments stance is on this move, but rumors are circulating that Anera is just another front organization for the Thelas government. Although I would like to stress that these are just rumors.

In other news, the Thelas Attorney General’s office has started investigations into Anera Inc. for anti-trust law violations…”

OOC: what's with all this recession business?

OOC: Some one got the idea that because a lot of major NS countries are having an economic down-turn, that we should all RP a recession, Thelas, has not yet been hit, and thus, Anera Inc. is about to start buying up smaller corporations left and right

Goodevening!

I am your friendly neighbourhood business science student, here to do some nagging.

Now, when a corporation goes out and buys up foreign competitors, this means that Anera Inc. thus gains a presence in those countries where the recession has already struck. After all, you are buying competitors in those nations. So that eventually means that you are welcoming the recession into your country. The new divisions that Anera Inc. purchases are still involved in the recession, and thus see their assets devaluate by the day. This will eventually start to influence the parent company, bringing the recession into your country.

Also, completely buying up corporations means that you will have to make extremely large expenses in management and business process engineering to change the strategies and operations of those corporations in such a way that they can cope with the crisis. So it would be better to buy a batch of stock in those companies, settling your presence there. Then, when they have survived the recession in the future and are healthy again, you already have a presence in the company from which you can take action to fully acquire it.

And on a side-note: if the recession hits Anera, and it has just spend a lot of equity on hostile take-overs, its liquidity base wil be low. And that's not a good thing either.

OOC: Some one got the idea that because a lot of major NS countries are having an economic down-turn, that we should all RP a recession, Thelas, has not yet been hit, and thus, Anera Inc. is about to start buying up smaller corporations left and right

1] That would be KNOOTOSS WHO STARTED THE RECESSION, after I suggested it to him. So enjoy it you evil cappitalist scumbag! [just RP here, honest!]

2] listen to Vortex, they know what they are talking about!

I know, look at it this way, Anera is thinking that they can get into those coutnries and get a source of cheap labor, think about it, you have been hit with a rececion, and this massive company comes into your nation buying the buisness that you were just laid off from. They come in and offer wages, at a cheap level yes, but wages none the less. When the reccesion ends Anera will be in a very opertune position, prices in Thelas will have dropped, as will prices in other countries, causing more people to buy and so on. (By the way, I am a firm beleiver in a US Republican Economic view, cut taxes, people buy things, revinues go up, over simplicised I know but that is how I understand the basics.)

(Sorry about the horrible spelling, it is a natural thing for me, I cannot spell)

I know, look at it this way, Anera is thinking that they can get into those coutnries and get a source of cheap labor, think about it, you have been hit with a rececion, and this massive company comes into your nation buying the buisness that you were just laid off from. They come in and offer wages, at a cheap level yes, but wages none the less. When the reccesion ends Anera will be in a very opertune position, prices in Thelas will have dropped, as will prices in other countries, causing more people to buy and so on. (By the way, I am a firm beleiver in a US Republican Economic view, cut taxes, people buy things, revinues go up, over simplicised I know but that is how I understand the basics.)

(Sorry about the horrible spelling, it is a natural thing for me, I cannot spell)

At the end of the recession, wages go up again. After all, the foreign currencies increase in worth, increasing the relative price of one 'unit' of currency as compared to your own. So this means that when the recession ends, wages for Anera start increasing very fast. Either you pay those wages, or the workers leave you and join other companies.

So you either have to cope with increasing direct labor costs, or a lot of jobs that need to be filled and a low capacity utilization. Combine this with the huge costs that come with integrating freshly acquired divisions into Corporate culture and structure, and you have a big problem.

Anera can still make a massive profit from then selling the newly aqquired areas, or, Anera can then start to do what it is doing in Thelas, turn all the production facilites into compltly automatated facilites, cutting wage costs.

babump

“This is Findecáno Telemmaitë again, just in is a report from Anera Industries, the main manufacturer of consumer goods, and military/civilian arms in Thelas, has announced plans to start buying up company stocks in Knootoss. More to come later.”

OOC: Knootoss, can you give me a list of major Knootoss based companies, and what they produce?

Well... this is an old one from my website. Hasn't changed much exept maybe for projected growth:


Economy overview:
Knootoss is a prosperous and open powerhouse economy depending heavily on foreign trade. The economy is noted for stable industrial relations, moderate inflation, and a sizable current account surplus. Industrial activity is predominantly in Information technology, book publishing and gambling. Research and development is one of the main service industries in Knootoss, and there is also an extremely prosperous export segment for recreational and medicinal drugs. Benefiting from the complete absence of drug laws a large export sector is up and running. Due to scale advantages, the prices are significantly lower then illegal produce, making Knootoss extremely competitive in this industry.

Recently, large investments have been made by foreign investors in Automobile Manufacturing, Poultry, Electrical items and drone technology. Knootoss is also the official distributor of Pink Bunny Cola and related products. Knootoss began circulating the euro currency on 1 January 2002. The country continues to be one of the leading European nations for attracting foreign direct investment. Tax levels in Knootoss are relatively low and the government has a pro-business attitude. The GDP per Capita is approximately $36,310 but expectations are that it may improve to $40.000 in a few years if projected growth is continued, and the unemployment rate is 0,4%

GDP composition by sector:
Agriculture: 1%
industry: 15%
services: 84%

The mayor trade partners of Knootoss are the WBO member states, the UTP members, the nations in the regions of Nederland and Holland, the Democratic States of Certainty, and the Bunny King. The import commodities are: machinery and transport equipment, chemicals, fuels, foodstuffs, clothing and weapons. Knootoss is an economic aid donor, donating to various development aid programmes, both trough the ministry of development affairs and trough private donations, in total amounting to about 0,7% of the GDP. Knootoss is a donator to DNAC, the Developing Nations Conference organisation.

Communication and infrastructure:
Knootoss boasts a highly advanced communications and transport network. Internet access is primarily trough Bunnynet, the Internet access provider from the Bunny King. The Internet fix is “.kn” Both roads and public transportation through rail are widely used. All mayor cities are connected trough highways. Waterways are also very important, as they are being used to ship bulk goods over long distances. There are several airports, both civilian and military. Schiphol Int. Airport is a civilian mainport, but most military air operations take place from Balmora Airbase.

OOC: further OOC note, I RP my gambling industry as my recreational drugs industry.

IC:
KNN financial:
"In response to the rumours that a Thelassian storefront company might attempt to buy up Knootian shares, the corporate watchdog NMa announced that it would begin an inquiry into these companies. They refused to comment on the nature of the investigation.

Meanwhile on the stockmarket, automobile manufacturer DAF is down 1,3 percent while....

"Anera Industries has anounced that interest in "Pink Bunny Cola" has been sufficiently peaked to send an offer of an undistclosed amount to the CEO of "Pink Bunny Cola" -TNN Financial

(When your watch group does their investigation they find a completly legal operation that gives large benifits to employees, and that is known for their Arms Manufacturing, Pharmisuticals and Auto-Production, TNN is also owned by the same person who owns Anera, this elf also has a monopoly on most of Thelas' space mining and oil production. The CEO is an elf, and has owned Anera for about 300 years, since he founded it as a small store-shop in the Crystal City. The CEO is actualy a TMI agent, the buisness is sometimes used as a cover for some TMI operations, but you would only know this if TMI told you, or if you have a VERY high ranking spy in Thelas Millitary Intelegence, highly unlikly because most of the people who would know are about 200+ years old)

To: CEO of Pink Bunny Cola
From: CEO of Annera Inc.

Recently I have heard of some financial hard times in your nation, in order to help you out, I have thought it wise to ask you if you would be interested in a business deal.

In return for the ownership of your industry, I will pay a sum of 2,000,000,000 Thelas Credits, currently trading at a rate of 1 Thelas Credit to 1.5 Euros, the sale would equal around 3,000,000,000 this price is negotiable."

OOC sidenote: As founding member of the CC, this is the time for me to state that Pink Bunny is a long standing and appreciated member of the Corporate Coalition. However, when ownership changes, we will be forced to review their membership.

[ooc: Just a note... while the Knootian war lasted, i and Endless Island bought up quite considerable parts of the knootian economy. An equivalent to 1.5 trillion Euro had been invested. While i begun selling back Knootian industry shares a while back due to the non- existing reliability of Knootoss (or, in other words, instable foreign and domestic politics... which is the reason i don´t use this recession to literally buy up entire nations (well, their corporations)... to much trouble, and in the end, i fear the nations would RP 'fighting' Angstian dominance on their markets rather than RPing closer relationships... as if it were a military invasion *sighs*), i assume that the equivalent of 1 trillion Euro (original. Expanded after the war, is now falling down again, i would assume between 1.1 and 1.2 trillion Euro) in Knootian shares is still in Angstian/ Endless Island control.

Please keep that in mind while trying to take over Knootoss.]

When do we get an update about Knootoss's recession? You can't pull out of a good RP half way through, especially when it sees all the Kists going down the plug hole.

bump for Knoot

"we love you Knoot!" - viallage idiot of the year

AKA: bump

OOC:
*Notes Vortex’ and Angstians comments*
Please bear those in mind.

Also, Knootoss doesn’t really own Pink Bunny Cola. We run the executive board. (we OOCly run the company from day to day and are the official distributor) but Icly it is still majority owned by “The Bunny King”. So PBC can’t be taken over. And certainly not for such a small sum. ;)

Further OOC note, we will probably not know of this storefront agent thing unless Menelmacar’s Mornahoose (sp?) or another SATO intelligence agency does…

And lastly, to avoid total discouragement, I’ll tell you what I told Belem. No major corporations going broke yet, the recession did not go that deep... yet. The ones that are going low are mostly smaller companies. And the same tip as Belem got: the company that produces the Knootian Eurofighters did go down 7,4% in the last weeks. However the sales of weaponry won’t decline so soon in NS. Sadly. So maybe you could run a little takeover competition?

IC:
KNN financial
“Anera Industries’ offer for taking over PBC Inc. was turned down yesterday by the Bunny King who claimed that he had no interest in giving up a majority share in such a potentially profitable company.”

RecDrug Incorporated shares took another hit today as expectations for international exports where adjusted downward…”

"In a recent anouncment, Anera corp has begun negotiations with a small soda corporation in Knootoss, as of yet, the amount and purpose of the buy-out are un-known."

To: (Enter name of CEO)
From: Anera corporation

As of recent news, we have heard that your company is close to closing, in return for all of your distribution, production, and contracts, we will pay you over 9,000,000,000 Thelasian Credits. We also are willing to offer a penchant of 900,000 Thelasian Credits per year. We await your responce.

"In a recent anouncment, Anera corp has begun negotiations with a small soda corporation in Knootoss, as of yet, the amount and purpose of the buy-out are un-known."

To: (Enter name of CEO)
From: Anera corporation

As of recent news, we have heard that your company is close to closing, in return for all of your distribution, production, and contracts, we will pay you over 9,000,000,000 Thelasian Credits. We also are willing to offer a penchant of 900,000 Thelasian Credits per year. We await your responce.

'Soda!' corporate headquarters, Utrecht, Knootcap

"Nine BILLION credits!"

CEO Nwanman Gurmüz got out his calculator. "Thats... a LOT of Euro's. And we won't have to worry about that debt again..." he told himself.

The Turkish decendant threw the notes on his desk in the bin. "No declaring bankrucpy anymore!" He was delighted. The executive board had given him permission to sell for anything over a billion. This truly was great news.

Hastily he grabbed the phone on his desk and began to dial the international number that had been enclosed with the note. He feared that the offer might go away if he did not reply soon...

OOC: I assume it's a good price here. Feel free to make a post where you have taken it over...