Quattroporte Inc.
Quattroporte Inc.
PLG#2: Ireland, Guernsey, Malta
Sandra Hamilton
Abdullah Hanna
Jatin Kot
Presented to Professor
Geoff Reid
EMBA 602
University of Fredericton
February 24th, 2013
Contents Executive Summary 3 The Business Model 3 National profiles Political and Policy Direction 4
Guernsey……………………………………………………...……………………4
Malta………………………………………………………….……………………6
Ireland………………………………………………………………………….…..7
Globalization & Comparative Advantage 7 Primary Factors Most Influencing Profitability 7 Corporate taxation 7 Productivity and Availability of Human Resources 8 Currency exchange rates 9 Consumer Taxation – VAT 9 Capital Gains Tax Policy 9 Banking 10 Foreign Direct Investment 10 Intellectual Property Protection & Future Strategic Opportunities 10
Repatriation of Profits 12
The Cost of an Exit Strategy 12 Conclusion 13 Bibliography 14
Appendix…………………………………….…………………………………...16
Executive Summary
Quattroporte Inc., a Canadian-based software company has experienced an exponential increase in international sales and it’s in a position to move to the hyper-growth phase. This opportunity has prompted the management team to establish a task force whose goal is to evaluate the benefits and risks of creating a subsidiary in one of the following jurisdictions; Ireland, Guernsey or Malta. This report provides a summary of the analysis and outlines recommendations for leveraging the rapid growth in sales to maximize Quattroporte’s global profits over the next three years.
The Business Model
At the time of writing Quattroporte management envisions limiting the business activities of the new foreign subsidiary to the processing of financial transactions from sales outside of Canada and the United States. Customer sales, support services, research and product development will continue to operate from the global HQ in Canada. It has also been determined that preferred merchant account rates of 1.75% - 2.25%, as offered in
PLG#2: Ireland, Guernsey, Malta
Sandra Hamilton
Abdullah Hanna
Jatin Kot
Presented to Professor
Geoff Reid
EMBA 602
University of Fredericton
February 24th, 2013
Contents Executive Summary 3 The Business Model 3 National profiles Political and Policy Direction 4
Guernsey……………………………………………………...……………………4
Malta………………………………………………………….……………………6
Ireland………………………………………………………………………….…..7
Globalization & Comparative Advantage 7 Primary Factors Most Influencing Profitability 7 Corporate taxation 7 Productivity and Availability of Human Resources 8 Currency exchange rates 9 Consumer Taxation – VAT 9 Capital Gains Tax Policy 9 Banking 10 Foreign Direct Investment 10 Intellectual Property Protection & Future Strategic Opportunities 10
Repatriation of Profits 12
The Cost of an Exit Strategy 12 Conclusion 13 Bibliography 14
Appendix…………………………………….…………………………………...16
Executive Summary
Quattroporte Inc., a Canadian-based software company has experienced an exponential increase in international sales and it’s in a position to move to the hyper-growth phase. This opportunity has prompted the management team to establish a task force whose goal is to evaluate the benefits and risks of creating a subsidiary in one of the following jurisdictions; Ireland, Guernsey or Malta. This report provides a summary of the analysis and outlines recommendations for leveraging the rapid growth in sales to maximize Quattroporte’s global profits over the next three years.
The Business Model
At the time of writing Quattroporte management envisions limiting the business activities of the new foreign subsidiary to the processing of financial transactions from sales outside of Canada and the United States. Customer sales, support services, research and product development will continue to operate from the global HQ in Canada. It has also been determined that preferred merchant account rates of 1.75% - 2.25%, as offered in
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