Tokyo Disney Case Essay

1436 Words Jul 26th, 2010 6 Pages
Executive Summary

Evidence from this case suggests that the traditional Japanese corporate governance stance has started to shift in order to include some elements of the Anglo-American way of corporate governance. It appears that a final decision has been made to build Disney Sea Park (despite unattractive ARR, but attractive NPV/IRR and ACFR) not only for the potential profits reaped for the company but also due to their responsibility to keep uphold the interests of its stakeholders (which would include its parent company, stockholders, landowners, suppliers, creditors, the local communities and government), whose livelihoods would be directly affected by this critical decision.

However, we also believe that the Japanese
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On the other hand, WD’s management team is understandably keen to utilize the positive NPV and IRR numbers to assess the new investment project as we believe such a project would bring them additional revenue from bearing practically zero investment risk.

However, moving on to the future, there is an increasing need to internationalize Japanese corporations (as IBJ has led and pioneered). Based on this, it seems that the future of capital budgeting decision making would move towards the Anglo-American method of NPV

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