The Pirelli Group and Successful Business Essay
The Pirelli Group and Successful Business, 492 words essay example
Essay Topic: group, business
Starting successful business and running in stable depend on many factors. One of the most common problems that business person has is taxes. Pirelli Group always pays taxes according to relevant tax laws and regulations in which country it works. Managements and obligations of corporate tax payment are subject to direction by the Group's external as well as internal auditors. "Pirelli believes that a coherent and responsible approach to Tax Governance is an essential element of its sustainable business development."
As an industrial company, Pirelli imports raw materials from other countries in order to produce tyres and trade with its foreign customers in different countries. However, obstacles can be occurred in trading with importing and exporting products if these products have effects on environment, health and safety. If European Union (EU) releases strict restrictions or regulations on importing and exporting trade system, it influences Pirelli negatively because Italy is a part of correspondent EU importing -exporting trade system.
Instability in loan costs influence the book value of monetary resources and liabilities of the Group. Decreasing interest rates are more beneficial for Pirelli taking into the account that the company's Gross Debt equals to 2,666 million euro in 2015 and half of the debt is loans from banks. Low interest rates give a chance to pay less money for the loans and more investment in other fields of company
Customers always prefer cheaper goods and services to expensive ones. Decline in inflation rates is also one favourable aspect for the organization and results in outstanding performance of the company. Thus the company will be able to produce cheaper products with the help of even more cheaper materials and obtain more customer attention. More client means more money.
Italy's birth rate reached its lowest level in 2014 compared to other years owing to the decline in immigration living in Italy. It might be a serious problem to Pirelli's headquarter in Italy because the company needs young and smart generation to operate the business even more successful. If the birth rate continues shrinking, the company will be reluctant to job cut and it reflects badly on company's growth and operating system.
Italy's R&D oriented objectives are similar to its biggest tyre manufacturing company. Pirelli always tries to find other innovative ways of producing tyres. Therefore, the company spent 3.2% of net expenditure (9.8 million euros) on R&D in 2013. Currently, the company works with the Engineering department at The Polytechnic University of Milan and R&D Centre in Milan. Further aims of the company are to build R&D laboratories and make the company more creative
In today's digital world, people are communicating with each other using the internet and social networks. It is considered by The Pirelli Group and company starts improving its online performance on the internet by effective communicating with customers. Pirelli also increases the number of 24/7 (24 hours a day, 7 days a week and 365 days a year) shops and services in order to facilitate customers