Ques1) If you were a prospective investor in Banyan Tree Hotels and Resorts ,

would you support the companys pro-environment policy, or would you see it as
an unjustifiable drain on bottom line profits? Why?
Solution:
Yes, We would support the companys pro-environment policy,because the
investment in the Banyan Tree Hotels and Resorts is a long term investment and it
would keep on giving long term profits due to the following reasons:
It is protecting the environment for sustainable development.
The Company was determined to create a resort that is eco-friendly and did
minimal damage to the environment .
The company recogized its resposibilty towards the communities in which it
is operated by following ways:
It provided employment oppourtunities to local residents
that would lead to more profit in the long run.
It carried out many programmes in areas such as education
and chilcare facilities.
They help the nearby locality people to sell their traditional craft items in
the resorts retail outlets.
The companys pro-environment policy also included a campaign on Save
the Turtles which helped to regenerate coral reefs in the Maldives.

Ques 2) For Banyan Tree Hotels & Resorts, what are the advantages and
disadvantages of listing? Should the company go ahead with the IPO?
Solution:
Yes, the company should go ahead with IPO because it provides the funding
resoucres to the company which would be benficial for the global expansion.
Advantages of Listing:
It would help to implement the expansion plans and to market the company
worldwide.

 It would also help to attract new investors who will invest in the companys
shares and also become a part of its ethical values.
It would help in creating awareness about companys pro-environmental
policy.
As there is a global expansion due to listing,the job opportunities foe
employees will increse in their respective areas.

Disadvantages of listing:
As investors are more intersted in market shares, there is a possibilty that the
ethical values of the company would get diluted.
The foremost priority of investors is to generate profits in short term which
would not be feasible because it has long term benefits.
The investors could regard companys environmental policy as a marketing
strategy which would inturn jeopardise companys return on
investment(ROI)