What do you think were the key issues for Pilkington to consider before it decided to licence its float technology to other glass makers?
What will be an ideal response?
The float glass process was truly radical because it delivered good quality at prospectively much
lower cost per square metre of finished sheet than any other means. The strategic decision was
primarily about (i) the degree of patent protection its new technology enjoyed and (ii) the balance of
financial advantage from gaining small licence payments on huge global sales versus high profits on
much more limited sales in the UK and Western Europe, at least until Pilkington could afford to
invest in sufficient new facilities to meet demand. Patent protection was strong, so the risks of
investment seemed much higher than the virtually-certain guarantee of license income. This is
probably true for any commodity product or process (few people can tell what kind of glass or
which enterprise made it once installed in a window frame).
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Indicate whether the statement is true or false
Actions that a decision maker can compromise within established boundaries are called
a. Compromising actions b. Negotiated actions c. Discretionary actions d. Stakeholder actions
What right does a share confer on its owner in regard to an interest in the corporation?
a. Right to participate in control. b. Right to participate in earnings of the corporation. c. Right to participate in residual assets of the corporation upon dissolution. d. All of these are conferred.
The primary goal of a financial manager should be to _____.
A. minimize operating costs B. minimize interest payments C. minimize tax payments D. maximize operating income each year E. maximize the value of the firm's stock