Friday, May 10, 2019
Case analysis Essay Example | Topics and Well Written Essays - 500 words - 8
Case analysis - undertake ExampleSince the company used to deal with more than one currency, then the exchange govern prove to be a challenge. Foreign currency rates ar never constant they fluctuate on a daily basis due to the interaction of a variety of elements that are beyond the mountain range of this case analysis. Delays in ordering and payment together with exchange rate fluctuations pose a probative risk for a company like adherence that deals with more than one currency. Although it is uncertain, it could be argued that with exchange rate could fluctuate in either direction thus providing some room for profitability.The other problem that Alliance faced was the fact that they have been in operation for only three years. Some of the company is administrative and supply chain processes, such as those for equipment procurement and generation of price quotations require improvement and formalization. This put forward be attributed to the fact that they have only been in operation for quite a short cessation (Aleshaiway, 2005).The customer can participate by modifying the price quotation process in a iron to mitigate the foreign exchange risk. This policy can be implemented through a fall of various ways including, changing the acceptance period (30 days) and changing the required amount of deposits to be made. A stipulation is saying that the final charges would be based on the exchange rate at the era of project completion should be included in the original contract.To add to the above strategy, a refresh of the internal processes related to cash management (including collection from customers and payment of suppliers), price quotations, and equipment procurement. Although there are aspects of the boilersuit process that are dependent on schedules and operations of others such us completion of projects, there are small issues within that process that could bring about risk mitigation of exchange rates.The company
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