Assignment for Consultant for Export Company
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Added on 2020-07-23
Assignment for Consultant for Export Company
Added on 2020-07-23
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ASSIGNMENT FOR A CONSULTANTFOR EXPORT COMPANY
EXECUTIVE SUMMARYThis report is all about analysing the existing performance of company as the consultantsare appointed in order to determine the financial performance of an entity. Focus of an entity lieson evaluating the overall performance of Asiatic mart located in Singapore. Vision, mission andall the strategic objectives framed by an entity are analysed in relation to external marketpressures. Various challenges faced by this entity will be identified and them analyse all thechallenges in relation to the current performance of an enterprise. Major role of an enterprise isto grab higher market share by emphasises on the entire performance of this entity. Solutions toall the issues or challenges faced by an entity will help in order to boost their currentperformance by minimising all the external market threats. Efficiency of all the challenges areassessed in relation to the export business of an entity as all the issues currently incurred in theexternal business environment. Solutions to all the problems is essential as in this way theexisting problems faced by an entity will be managed properly. Focus of an organisation lies onthe current performance of the business firm which helps in generating higher revenue in aparticular financial year.
TABLE OF CONTENTS1. INTRODUCTION ......................................................................................................................42. RESEARCH METHODS............................................................................................................43. ISSUES IDENTIFIED.................................................................................................................53.1 Foreign currency exchange risk...................................................................................63.2 Cash flow and financial problems...............................................................................74. PROBLEM ANALYSIS..............................................................................................................95. SOLUTION................................................................................................................................106. POTENTIAL RECOMMENDATIONS....................................................................................127. IMPACT OF SHAREHOLDER................................................................................................138. IMPLEMENTATION PLAN....................................................................................................139. CASE STUDY EXAMPLE.......................................................................................................1310. DISADVANTAGE FAILURE TO IMPLEMENTATION.....................................................1411. NEGATIVE CASE STUDY....................................................................................................1511. CONCLUSION........................................................................................................................15REFERENCES..............................................................................................................................16APPENDIX....................................................................................................................................19
1. INTRODUCTION Role of an entity has increases with the increasing market complexities as this created lotof pressure on an entity in order to upgrade its trade practices. Asiatic mart Ltd has been selectedfor the given project which is multinational organisation located in the Singapore. This entitydeals in offering export goods to other country as customer satisfaction is the primary concernfor this enterprise. Being a global entity their major role is to capture higher market share byenhancing its current skills and the capabilities in order to handle higher complexities that mayimposed on their business in the near future (Peeters, van Meggelen and Schepers, 2015). Greater emphasises of the employer is lies on the actual business conditions. Variouschallenges that needs to be identified by the researcher in the current report includes all theissues which are suppressing the current skills and the capabilities of the firm (Cavusgil and et.al,2014). Main aim of the business concern is to export all its good or services from one place toanother for which they are required to develop good trade relationships among all the businesses.Trade relationship is important in order to convey all important information from one end toanother for the betterment of the business. This entity deals in procuring and offering groceryitems that facilitates all the needs and expectations of all the users located in the externalenvironment (Shim, 2013). Existing market will be analysed properly in relation to all the factors to be considered byan entity as all the existing weaknesses lies in the external market are analysed properly thatwould be helpful for them in order to generate higher share (Chvalkovská, Mejstřík and Urban,2014). This approach helps in analysing the internal environment of an entity that increases theoverall market share in order to cater the desired market share of an entity.2. RESEARCH METHODSScholar will take support of secondary data collection and primary data collectionsources. Both these are effective tools that can support in getting in-depth information about thesubject matter (Anokhin, Kuznetsov and Lachininskii, 2014). In this investigation researcher willuse descriptive research design, with the assistance of this individual will be able to developrelationship between issues in export business and its impact on business performance. Apart
from this for analysing the data investigator will use thematic analysis tool. With the help of this,researcher will be able to present information in effective manner (Cavusgil and et.al, 2014). Illustration 1: Export ratioSource: (Will Export Resurgence Boost Singapore’s Growth This Year?, 2017)3. ISSUES IDENTIFIEDChallenges are evaluated by an entity owner in order to improve their existing businessperformance over a certain period. Challenges will inspire an individual in order to overcome alltheir problems currently faced by an enterprise in the external business environment. Problemsare identified by them in order to enhance the existing skills and the capabilities in order to targethigher users in the external business environment (Makri, Theodosiou and Katsikea, 2016).Asiatic market located in the Singapore deal in providing outsourcing of various goods andservices to all across the world. It also exports goods from Singapore to outside country forwhich various aspects needs to be considered by them in order to create its unique position in theexternal business environment. Internal as well as external factors are required to be analysed byan entity to evaluate the current market position of an entity. Selecting of various strategicmanagement strategies will mostly depend on the entire performance of an organisation in the
external business environment (Farja, Gimmon and Greenberg, 2016). There are variouschallenges identified by a consultant who are evaluating the current position are given as below:3.1 Foreign currency exchange riskIt is another challenge that is faced by the Asiatic mart. In the export business companyhas to deal with foreign currency (Dai and et.al, 2014). Value of currency can be changedany time, if at the time of exporting the goods it is high but after sending the material ifprices get down then it can be problematic situation for the cited firm. In this conditioncompany has to face huge loss and also it can impact on its operations as well. Each country has its own currency and its rate are decided. Fluctuation in exchange ratescan create additional risk for the Asiatic mart. It may be possible that it may face hugeloss due to down flow in the currency (Zhu, 2014). Singapore currency is dollar, if it exports the products in the UK then cited firm can facehuge risk. One of the major issue in this respect is that in the remittance of money forpayments firm has to wait for the payments. It takes time thus, sometimes becomeexpensive for the exporter. Wide gap between date of dispatch and receipt of paymentcan create situation of bed debt for the company. In this duration if exchange rates getchanged then it would be loss for the firm because it has accepted the payment sin otherrates and now it will have to accept it on another rates (Rosnan, Saihani and Zakaria,2015). Unexpected movement in exchange rates can create major settlement problems for theAsiatic mart. In such condition cited firm will have to expect the payments as per thepresent exchange rate (Janda, 2014). There are many firms those which are aiming toexport their products across the broader due to currency fluctuation risk entity think onthis respect twice. If the corporations have strong financial position and have loss bearingcapacity then they have to get entered into the export business. Many of the exporters are exporting their goods in the foreign countries and they have todeal with foreign currency. At the time of holding currencies it is very important for theexporters that to hedge their currency exposure. Currency market is volatile and unpredictable.That is why companies have to hedge their currency. Currency hedging strategy will be
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