Global Finance and Strategic Financial Management TASK 1 a 4 INTRODUCTION 4 a. Electro Tech's Global Business Environment Factors

Strategy and Global Finance
&
Strategic Financial
Management

Table of Contents
TASK 1a..........................................................................................................................................4
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................5
a. Explanation on the concept of the globalization is linked with investment approaches .......5
b. Evaluation of approaches to investment ................................................................................5
TASK 2............................................................................................................................................6
a. Review two contrasting global business environment factors................................................6
b. Evaluation the impact of each factor on Electro Tech's operations .......................................6
TASK 3............................................................................................................................................6
a. Explanation of potential investment decisions and strategies available to Electro tech's
preposed expansion projects.......................................................................................................6
b. Select and critical evaluation of the optimum strategy...........................................................6
TASK 4............................................................................................................................................7
a. Explanation the potential impact of strategic decisions on the Electro Tech's operations......7
b. Evaluation the potentials financial consequences which strategic decisions may have on the
organisation.................................................................................................................................7
TASK 5............................................................................................................................................8
a. Explanation two global risks that Electro tech might be exposed in business expansion ......8
b. Evaluation two risk mitigation techniques which can applied on business expansion...........8
c. Evaluation of suitability of the two risk mitigation techniques...............................................8
TASK 1b..........................................................................................................................................9
INTRODUCTION ..........................................................................................................................9
TASK 1............................................................................................................................................9
A) Two investment appraisal techniques which are helpful for TESCO ...................................9
B) Usefulness of the these two techniques................................................................................10
C) Two international aspects of financial risk..........................................................................10
D) Cost involves in managing these two aspects ....................................................................11
TASK 2..........................................................................................................................................11
A) Importance of costing to the board......................................................................................11

B) Current costing system used by an organisation .................................................................12
C) Appropriate costing method for an organisation .................................................................13
TASK 3..........................................................................................................................................13
A) Impact of two risk factor on business..................................................................................13
B) Suitable approach for overcoming from such risk factor.....................................................13
C) Two techniques which are helpful in mitigate the risk........................................................13
TASK 4..........................................................................................................................................13
A) Appropriate strategy which is useful to evaluatev the tangible and intangible resources
allocation...................................................................................................................................13
B) Two appropriate techniques for better utilisation of resources............................................13
TASK 5..........................................................................................................................................13
A) Calculation of financial ratios for determine current financial viability .............................13
B) Financial recommendation about the redeveloping of product ...........................................14
CONCLUSION .............................................................................................................................15
REFRENCES ................................................................................................................................16
Online .......................................................................................................................................16

TASK 1a
INTRODUCTION
Most of the companies are having their focus on the business expansion according to the
potentials which are available in the international market (Purce, 2014). Business expansion has
a huge need of the investment so it is essential to us financial management. Financial
management works on the management of the funds which can help to the company to allocate
their budget properly on those points which is essential for them to improve their business. It can
help to an organisation in their business expansion. International market is having a potential to
increase the revenues of the business via increasing and developing the criteria in which they
have to provide their services and product. The present report is based on the Electro Tech which
is a supplier company of telecommunication system. It is an international company which is
working in more than 80 countries and with approx 21,000 employees (Moffett, Stonehill and
Eiteman, 2014). They are committed to develop products based on the latest communication
technology. The company want to expand their business via investing in the Atlantic site
Cornwall. So now it is essential for them to use financial management and take effective

financial decisions. The present report contains details up on the concept of globalization and
factors which are making a negative impact on it. So it is essential for the company to take
strategic decisions which can improve their effectiveness on the business expansion.
TASK 1
a. Explanation on the concept of the globalization is linked with investment approaches
Globalization helps in creating platform for many companies at one place where large
number of competitiveness can be seen. It is important for a local company to introduce
themselves at global level (Lasserre, 2012). It helps in increasing their profitability with the help
of this process.
By using this concept investment which is taking place is huge and large amount have to
invested for setting up a company at global level. They have to produce their products according
to international consumers. There are mainly three type of investment approach which can be
used by the electro tech at the time of globalization.
1. Shared investment knowledge
2. Consistently forward thinking
3. Analytical rigour
Company have to invest their money by analysing all factors of market and then they
have to made investment at global level.
b. Evaluation of approaches to investment
Investment approaches are generally used by each and every firm which set up their
business internationally (Hillier, Grinblatt and Titman, 2011). These methods help them to make
their place in that competitive market. Many globalised companies have used these approaches in
their expansion of business and then get success.
MacDonald and Starbucks have use these approaches for their business. When they
expands their business first they analyse number of competitors in market and then they invest
according to that. By using this analysis company use shared ideas of market and get fully aware
about that. All these things help them in their expansion. Same thing can be used by the elctro
tech for their success and survival.

TASK 2
a. Review two contrasting global business environment factors
Business expansion puts an extra pressure on the company which is delivered by the
international market and globalization so it is essential for the Electro Tech to improve their
business by making focus on these factors (Han and et. al., 2010). International economical
changes can make a negative impact on the organisations business which can reduce the
effectiveness of the expansion plan. So Electro tech have to be focus on their on these factors
which can make a negative effect on the business.
b. Evaluation the impact of each factor on Electro Tech's operations
More responsibilities can built a pressure on the Electro Tech which can reduce their
qualitative work and as well as their decisions. As right now they are having a focus on the
business expansion in the Atlantic area so they are working on the resources which can help to
them to find out the solutions. International economical changes can make an influence on the
business and as well as on the expansion plan which can make a compulsion for the company to
revise their plan accordingly.
TASK 3
a. Explanation of potential investment decisions and strategies available to Electro tech's
preposed expansion projects
Company want to expand their business and for this they can use major investment
decision in which they are making for increasing their production. They are thinking about that
this activity is financial viable to them or not. Investment increment helps them in their
production rise.
They can recover their investment with in a year because their expansion is made at
global level where there are large range of customers.
b. Select and critical evaluation of the optimum strategy
Company have to make strategy which are helpful in increasing their productivity of
teletech product. This is their product which is most in demand so, they have to invest more on