Case Analysis of Currency Risk Management Study

Analysis of Currency Risk Management - Case Study Example The organization has two key branches; the Study Abroad College branch, and the High School Travel branch. Archer-Lock is the controller and also the treasurer of the college branch. Tabaczynski manages the finances of the high school division. The college division sends students to worldwide universities for the semester duration activities. Also, the high school division sends students and teachers for trips lasting between one and four weeks (Mihir, Vincent & Anders 1)). The currency hedging measures protect the revenue and profitability of AIFS, from the negative effects of currency exchange rates. This is achieved through the currency forward contracts, in addition to other currency options. The organization hedged its predicted expenses duration for the next two year duration. The main financial challenge that AIFS experienced entailed, implementing the hedge before the full sales cycle and adequate determination of the required foreign currency. There are several basic hedging approaches for handling the foreign currency exchange rates. The techniques are; currency options, forward contracts, currency accounts and loans, and spot trading. All organizations that operate in the international market must analyze the effects of exchange rates changes, on their operations. This will result in determination of the most effective technique for minimizing the foreign exchange fluctuations (Mihir, Vincent & Anders 3). Currency accounts are the most basic hedging technique. The bank accounts are opened in foreign currencies. This is most suitable for organizations with continuous inflow and outflow of cash in foreign currencies. Currency involves borrowing money using a foreign currency. The loan will be serviced in future, through the same currency. Spot trading involves key foreign currencies transactions. Spot transactions are generally applied in

Juvenile Courts Coursework Example | Topics and Well Written Essays - 500 words - 1

Juvenile Courts - Coursework Example Some juveniles lacked the cognitive capacity to judge between the â€Å"good† and â€Å"bad† calling for proper counselling and rehabilitation for a given duration. According to the article, the intent of juvenile court establishment has changed with time. Juvenile courts were not meant to punish juvenile offenders but to give guidance through rehabilitation and counselling programs (Soulier & Charles, 2010). Juveniles, as mentioned in the article, lack the cognitive capacity to commit an offense intentionally. This is because they are still in the developmental stage and through rehabilitation and counselling, they get to realise their mistakes or offenses. Today, some juvenile offenses are channelled to the adult courts and this is contrary to the initial juvenile court act as depicted by the article (Soulier & Charles, 2010). In the adult courts, criminals or offenders are subjected to harsh and weighty punishments that tend to be unbearable to the juvenile. A juvenile being in the developmental stage, should be advised and engaged in activities that boost their cognitive stamina or capacity. Many juveniles who have been incarcerated tend to repeat similar offenses due to lack of proper guidance. Some juveniles may also commit an offense due to psychological or mental problems. This makes it necessary to conduct medical examination on a juvenile and administer possible psychological or mental therapies. All these activities should be within the jurisdiction of a juvenile court. According to the author’s notion, abolishing juvenile courts is ideal and important to the society. Juveniles in the contemporary world are treated as adults and this makes it difficult to reduce juvenile delinquency. Jailing of juveniles destroy their future because of the stigma and lack of cognitive stamina growth to differentiate good and bad (Soulier & Charles, 2010). Counselling and rehabilitation creates both psychological and mental awareness of

Major Factors For The Low Profitability Commerce Essay

Major Factors For The Low Profitability Commerce Essay To understand the indispensable elements that contributed as major factors for the low profitability in the computer industry, the group had to apply Porters five forces orientation. The main reasons for a low average profitability in the computer market even though there exists high level of output and innovation especially during the last ten years can be attributed to these factors: Primary, as a weak strategic choice, Stiff Competition (which ultimately led to price competition) was war of attrition between these companies, and of course as a result of this some money was left on the table and average profitability was low. Secondly, product differentiation among the industries was very weak and complementary products that would have made a difference were not as such available. Thirdly, as it can be seen from the business chain, the suppliers had monopoly power over the manufacturers. Fourth, threat of the substitutes was very high since there was no brand loyalty on the part of customers. So, as a result these forces were able to put an undeniable pressure on the computer industry and led to a low average profitability. 2) Why has Dell been so successful despite the low average profitability in the PC industry? In 1998 the computer industry shared or had the same kind of business strategy. This is more obvious when one sees the similarity in distribution channels. What made Dell distinctive from the competitors was their application of the Blue Ocean strategy. Dell focused on direct orders from customers, offering customer tailored products and meanwhile developed new marketing and distribution strategy. This resulted in low product variable cost and 8% increase in operating profit in comparison with usage of standard distribution channels. Dell segmented their customers in two main groups relationship and transaction buyers. This increased the capability of better understanding and responding more efficiently to customer needs. This raised customer satisfaction level and created loyal customers, which affected positively the companys profitability. The decision to take orders directly from the internet web page, designed especially through a new CRM model, made it possible for Dell to provide innovative service and products to all customer segments. A crucial key to Dells success was the decision to proceed with production only after an order was received. In the same time focusing on limited number of suppliers and maintaining close relationship with them, allowed Dell to separate delivery of different components of production, thus reducing shipping time and decreasing operating cost by keeping stock at minimum level. Dells successes resulted from implementing an effective and profitable corporate strategy by focusing heavily on direct customers and suppliers. 3) Prior to the recent (1997à ¢Ã¢â€š ¬Ã‚ 1998) actions by the competitors to match Dell, how big was Dells competitive advantage? The personal computer industry has been one of the most competitive industries in the world. It is typically characterized by rapid innovations, low costs, and in most cases, the demand for updated processing systems has kept this industry very attractive. The only way companies can be profitable under this set framework was to be operationally efficient. In the 1990s, the growth of the World Wide Web led to an increased demand for PC and thus consequently led to a decline in prices because of its highly competitive nature. Dells efficiency in 1997-1998 came from two key success factors: First, they sell directly to their customers so their distribution channels are simple and cheap (eliminating all middlemen costs, no dealership markup). Second, they adapted the Direct Model, where they only do build-to-order, which kept inventories low. Low inventories mean that, when the competing companies drop the price of its processors, Dell did not have accumulated old expensive processors. It was able to reduce the prices on its computers faster than its competitors can, because the components that made up those computers are the latest and cheapest. Dell clearly distinguished its customers segments and as part of its strategy, it targeted the corporate customers (relationship buyers) who were volume buyers. As a result, the transactions costs/per PC sale were substantially lower compared to its competitors. In summary, Dells strategy was characterized by: Build-to-order and direct-to-customer relationships; Focus on specific market segments; Low cost distribution; Manufacturing and strong supplier relationships; Minimum inventory; Service and repair through telephone and third parties. Exhibit 1 shows that Dell as compared with the competitors had a low gross margin. (See annex) Exhibit 2 shows that Dells net profit margin is the same as the market average. We can conclude that the fixed costs for Dell was much lower than for the competitors, which gave Dell an opportunity to cut prices unlike its competitors. (See annex) Exhibit 3 shows that the company has a relatively low inventory turnover which gives the company a competitive advantage in the fiercely growing market by minimizing losses. (See annex) 4) How effective have competitors been in responding to the challenge posed by dells advantage? IBM IBM was the first PC maker to recognize Dells competitive advantage in direct sales distribution. In early 1990s it launched a series of initiatives to improve the coordination with resellers and distributors called Joint Manufacturing Program that was followed by Integration and Assembly program and Enhanced Integration and Assembly Programs. IBM started to ship heavily configured PCs to resellers and distributors who completed the configuration of the machine for the end users. In 1995 IBM launched Authorized Assembly Program shipping lightly configured computers (Model 0s) to downstream partners who would complete the assembly with the missing components and ship to customers. The AAP program helped IBM to rapidly deliver customized PCs without holding large amounts of inventory. In 1998 IBM launched its web site where business customers would refer to authorized resellers and individual customers could purchase standardized PCs directly from IBM. Compaq In 1994 Compaq was the worlds largest manufacturer of PCs. Compaqs initial strategy was to distribute the PCs to customers primarily through retail stores. The company launched several unsuccessful initiatives to sell directly to customers (online catalogue in 1993 and toll free telephone in 1996) which soon had to be shut down because of channel conflicts. From 1995, Compaq launched new initiatives to reduce the inventory by optimizing its production system and introducing Optimized Distribution Model. This eventually reduced the inventory to 25 days. Starting from 1998 Compaq launched Direct Plus Program selling PCs directly to customers via internet and telephone. Direct Plus came with additional services such as support service, software modules and leasing programs. HP HP sold PCs mainly through distributors and resellers and retail channels. HP was reluctant to sell PCs directly to customers and although in 1997 it started to accept orders on its web site, the PCs were delivered to the customers through resellers. In 1998 HP extended the scope of HP Shopping Village web service that allowed the consumers to purchase PCs directly from the web site, however like IBM business customers were referred to resellers. Gateway Gateways business model was very similar to Dells, the company took orders from the customers, build the PCs and shipped them directly to the customers. Initially the strategy was very successful but over time Gateways competitive advantage declined despite a series of initiatives. In 1998 the company lost its corporate customer segment and refocused on small businesses. Despite the efforts the competitors made to match Dells success, none of them were particularly successful. 5) What should each of Dells major rivals (IBM, Compaq, HP, Gateway) do now? As a short term solution, competitors (IBM, Compaq, HP and Gateway) before focusing on their core competence and increase their market margin they have to imitate Dells competitive advantages for some time. But in the long run competitors should; Pursue sustainable increase in efficiency of the production processes to decrease the operating costs: analyze and revise current supply chain, outsourcing certain tasks to the other geographical location in order to benefit from the lower labor cost and also try to find new market place as a comparative and competitive advantage. A special attention should be given to premium customers (large companies) through direct sales and sales-force, because these clients make big and repetitive orders, and for the rest of the segments sales can be conducted through Internet or phone. Direct sales help avoid leaving margins in pocket of resellers and distributors. And most importantly, they should focus on their specialization. Company Key Market segments Key Distribution channels Business Dell Large Business Direct distribution 86.6% Assembly (only) Gateway Home and small business Direct distribution 90.43% Production HP Small and middle business 32.6%; Individuals 28% Distributors 75%, Resellers, 23% Production Compaq Small and middle business; Individuals Distributors 66.6%, Resellers, 24.6% Production IBM Large Business; Small and Medium Business Distributors 69.6%, Resellers, 18.4% Production Annex Exhibit 1 Exhibit 2 Exhibit 3

Capital Punishment Essay: Just Say No -- Argumentative Persuasive Topi

Capital Punishment: Just Say No      Ã‚  This essay will show that the United States is on an execution rampage. Since capital punishment was reinstated by the Supreme Court in the 1976 Gregg v. Georgia decision(Gregg), more than 525 men and women have been put to death by the state. More than 150 of these executions have taken place since 1996. 3,500 people are on death row today, awaiting their turn with the executioner. Capital punishment has existed throughout most of the course of our nation's history.    By the mid-1960s, however, public opposition to the death penalty had reached an all-time high, and the practice was banned by the Supreme Court in the 1972 Furman v. Georgia(Furman) decision. The Court held that state death penalty statutes were devoid of any standards, and that they therefore gave too much discretion to individual judges and juries to exact the ultimate punishment. Soon after the Furman decision, states began passing new laws that provided sentencing guidelines for juries. The Supreme Court was given another opportunity to address the issue of capital punishment in 1976, in Gregg v. Georgia, and it ruled that "the punishment of death does not invariably violate the Constitution." Since this ruling, capital punishment rates have grown exponentially in the United States.    In 1994, the Federal Death Penalty Act(Federal) authorized capital punishment for more than 60 offenses, including some crimes that do not involve murder. Moreover, the 1996 Anti- Terrorism and Effective Death Penalty Act created new barriers to effective federal review of constitutional claims in capital cases. Congress and many states have also slashed funding for most of the legal representation death row inmates forme... ... only two. Southern states, particularly Texas (443 death row inmates in 1999), hand down significantly more death sentences than those in the rest of the country. California, the state with the largest penal system, had 513 inmates on death row in the spring of 1999. Such state-to-state disparities exist because death penalty statutes are a patchwork of disparate standards, rules and practices and the consequence is the difference between life and death. Furthermore, some prosecutors are more zealous in seeking the death penalty than others - particularly if they are running for re-election.    WORKS CITED: Federal Death Penalty Act  Ã‚  Ã‚  Ã‚  Ã‚   http://www.deathpenaltyinfo.org/feddp.html Furman v Goergia  Ã‚  Ã‚  Ã‚  Ã‚   http://www.thinkquest.org/library/lib/site_sum_outside.html?tname=2760&url=2760/furman.htm Gregg v. Georgia  Ã‚   http://www.lectlaw.com/files/case26.htm

The Dark Child

The Dark Child Camara Laye wrote The Dark Child to oppose stereotypes that have become part of western culture. When most westerners think about Africa they think of an undeveloped country that is stricken by poverty and primitive behavior. The dark child is an autobiography of Camara Laye’s youth and his early life growing in to adulthood. Camara Laye grew up in the town of Kouroussa on the inland plain of French Guinea in the Malinke tribe. His father was a well-renounced blacksmith and a man of tradition but he wanted a Western education for his son.Around the center of this book is where Camara Laye describes his initiation into adulthood at about the age of thirteen. He and the other boys sing while they enter the forest where they kneel with closed eyes with a roar of many lions surrounding them. Later he discovers the â€Å"rational† explanations for these frightening events, but he is wise enough to recognize that for the boys who take part in it, the ceremony i s still a true test of courage, and a real division between childhood and adulthood.The actual circumcision comes later, which he describes as â€Å"a really dangerous ordeal, and no game† Upon his return to the village, he is moved to his own hut, separated from his mother and father and he is given new â€Å"men's clothes† with quiet gratitude. This scene closes with Camara turning to his mother to thank her, who he finds standing quietly behind him, smiling at him sadly. Shortly after moving into his hut, Camara leaves at 15 years of age to attend â€Å"Ecole Georges Poiret, now known as the technical college† in Guinea's capital city of Conakry.His mother warns him to â€Å"be careful with strangers† and sends him off on a train to live with his Uncles Sekou and Mamadou in Conakry. In the school, Camara encounters difficult language barriers and a hot, humid climate more severe than his home in Koroussa. In his new school it is evident that it is more colonized. Camara lives the life of a typical college student by studying at school and going home during the breaks. As he experiences the European education, he adopts the culture associated with it.His mother changed the way his hut looks to give it a more European look, which he notices. He is aware of because the changes were making â€Å"the hut more comfortable. † Several years after leaving for Conakry, Camara returns home with his â€Å"proficiency certificate† and an offer from the director of his school to continue his studies through a scholarship, in France. While his uncles and father support and encourage him to take the foreign study opportunity, his mother is forbids him to accept the offer.He decided to accept the offer despite his mother's resistance to the idea, and parts with her and his father all while his mother was shouting insults and pushing him away. She then fell into a heap of tears, turning her anger instead to the European influences. H is father gave him with a map of city transportation of the Paris Metro in France. His father gives him the physical, practical tools for surviving in the city, but with that comes a theoretical compass directing the learning and success of his son. The mixed emotions of fear, excitement, anxiety and sadness cultivate with Camara crying as he goes to exit the plane.

Important technical development Essay

The most important technical development was the unitization of the liner shipping business. The shipping industry has been so successful at exploiting this technical development that the cost of sea transport has hardly increased. Coal and Oil cost little more to transport in the mid 1990s than in 1940s. Those important causes which are mostly affecting the demand for sea transport are 8 The World Economy : As it was discussed before that world economy with its output and trade is the most important single factor to generate demand for shipping and any crisis in the world economy reflects in the demand for shipping. In table 01 its clear that ups and downs of shipping demand is also proportionate to world trade. There are 03 different aspects of the world economy that may bring about change in the demand for sea transport ,which are- The Business Cycle: The business cycle lays the foundation for freight cycles. Fluctuation in the rate of economic growth work through in to the sea borne trade, creating a cycle pattern of demand for ships. For example, two major recession in shipping business in 1975 and 1981-1983 ,which co-incited with the recession of the world economy. This economic cycles arise from a combination of external and internal factors. The external factors include events such as wars or sudden changes in commodity prices such as crude oil, which cause a sudden change in demand. Internal factors refer to the dynamic structure of the world economy itself, which it is argued, leads naturally to a cyclical rather than linear growth path. Five of the most common business cycles are- I. The Multiplier and accelerator : The main internal mechanism which creates cycles is the interplay between consumption and investment. II. Time-lags: The delays between economic decision and their implementation can make cyclical fluctuation more extreme. The shipping markets provides and excellent example for this. During a shipping market boom, ship owners order ships that are not delivered until the market has gone into recession. When the arrival of the new ships at a time when there is already a surplus, further discourages new ordering just at the time when shipbuilders are running out of work. The result of their time lags is to make booms and recession more extreme and cyclical. III. Stock building : It produces sudden burst of demand as industries adjust their stocks during the business cycle. On several occasion shipping boom have been driven by short-term stock building by industry in anticipation of future shortage or price rises. Examples are the Korean war in 1952-53, the dry cargo boom of 1974-75, mini tankers boom in 1979 and summer 1986. Tanker booms were caused by temporary stock building by the world oil industry. IV. Mass psychology : If people act in an imitative manner a particular trend will build up to a level where they can affect the whole economic system. Their periods of optimism and pessimism become self fulfilling through the medium of stock exchanges, financial booms and the behaviour of investment. V. Random shocks : Random shocks such as wars, weather changes, new resources, commodity price changes, which upset the stability of economic system may contribute to the cyclical process. Its impact on the shipping market is often very severe ,for example ,1930s depression which followed by the wall street crash of 1929. Other two aspects are The ‘trade elasticity’ and The ‘trade development cycle’-which are correlated to business cycle. Other factors which have very strong influence on shipping demand are Transport cost. Transport cost are an element in the costs of production and If transport Costs are low ,its possible for domestic commodities to be substituted for the cheaper goods supplied over great distances, which will create business opportunities for shipping. The globalisation of the world economy has reinforced the inherent and unique internationalism and fluidity of the shipping industry, while over the same period the industry has become vastly more productive, with very much larger, faster ships and new techniques such as containerisation. By understanding and exploiting world economic activities and trade pattern along with all the other factors stated above, which are mostly controlling the shipping demand, ship owners and shipping management can achieve maximum business profit. From table one it is clear that the future growth of world trade and out put will definitely create more demand for shipping. Thus the ‘derived demand’ nature of ‘shipping demand’ creating huge opportunity for ship owners and shipping management to profit from the ups and downs of world trade. References 1. whitepaper of DTLR on British Shipping Charting a New Course ,para-9,obtained from www. shipping. dtlr. gov. uk/cnc/index. html ,or menu-whitepaper, october2001. 2. Chrzanowski I, 1985, An Introduction To Shipping Economics, Fairplay Publications. 3. Abrahamsson B J, 1980,International Ocean Shipping: Current Concepts and Principal, WestView Press. 4. McConville J,1999,Economics of Maritime Tansport,p42,The Institute of Chartered Shipbrokers, London  www.isl.org