General Motors Foreign Exchange Risk Management Policy Finance Essay - Free Essay Example

General Motors was the worlds largest automaker and since 1931, the worlds sales leader. In 2000, it had a net income of $4.4 billion on revenues of $184.6 billion. North America represented the majority of sales to end customers but international operations were also growing and international sales had reached 18% of overall sales. The key objectives of GMs foreign exchange risk management policy was to reduce cash flow and earnings volatility, minimize management time and costs dedicated to FX management and align FX management in a manner consistent with how GM operated its automotive business. GM hedged only cash flows (transaction exposures) and ignored balance sheet exposures (translation exposures). A passive hedging policy of hedging 50% of all significant foreign exchange exposures arising from receivables and payables was adopted. Forward contracts were used to hedge exposures arising within six months and options used to hedge exposures arising within seven to twelve months. GMs overall yen exposure included a commercial exposure based on forecasted receivables and payables of $900 million, an investment exposure resulting from equity stakes in Japanese companies and financing exposure through a yen-denominated loan. GMS COMPETITIVE EXPOSURE GMs competitive exposure to the yen arose because of competing against Japanese automakers who had large parts of their cost structure denominated in yen.Any fluctuation in the dollar/yen exchange rate affected the operating profits of Japanese automakers significantly, since they derived 43% of their revenue from the US markets (as of 2000). The yen appreciation from 117 to 107 during the first half of 2000 had reduced their combined global operating profit by nearly $4 billion. In the second half, the yen had begun appreciating. GM needed to quantify this competitive exposure and effectively hedge it. Depreciation of the yen would lead to reduced costs for Japanese automakers (since 20% to 40% content was sourced from Japan). 15% to 45% of this cost saving would be passed on to the customer. Customer sales elasticity as measured by GM indicated that a 5% price decrease would increase unit sales by around 10%. This market share gain by Japanese automakers would be shared equally and entirely by the Big Three in Detroit. QUANTIFYING GMS COMPETITIVE EXPOSURE Assumptions: ÂÂ ·Japanese car makers source 40% content from Japan (worst case scenario). ÂÂ ·45% of cost savings is passed on by Japanese carmakers to customers (worst case scenario). ÂÂ ·Yen devaluates by 20% compared to the dollar(worst case scenario). ÂÂ ·Total cost per car is $20000 (assumed). The margin obtained by GM is approximately $5900 ($1969 * 3) on the cost. Due to competition, Japanese carmakers would also need to price their vehicles similarly. Hence the same price is assumed for Japanese carmakers as well. ÂÂ ·Loss is valued as a perpetuity at 20% discount rate. Japanese carmakers General Motors Cost of Car $20,000 Price of car $25,900 Component cost (of Japanese component) at old exchange rate of $1=100 (40% components sourced from Japan) 800,000 = $8000 Component cost at new exchange rate of $1=120 800,000 = $6,666.67 Change in profit margin $1,333.33 Addl. Margin passed on to customers ( = 45% of change in profit margin) $600.00 New price of car $25,300 Price decrease 2.32% Increased sales (elasticity = 2) 4.63% Sales in 2000 4100000 Increase in sales in 2001 (Gain by Japanese carmakers shared by Big Three) 189962 -63321 Income loss for 2001 -$249,358,098 Income loss for perpetuity (Discounting at 20%) -$1,246,790,490 Thus the loss due to competitive exposure to GM is around $1.24 billion, which GM cannot afford to ignore. The above calculations have not taken into account any growth of the market or other variables. Also assuming that GM would not respond to a 20% change in exchange rates also may not be realistic. SENSITIVITY ANALYSIS A sensitivity analysis has been carried out, by varying the Yen/Dollar exchange rate from $1 = 120 yen to $1 = 80 yen. Also the content sourced from Japan has been varied from 20% to 40%. Varying these parameters, we get the values for income loss/gain for 2001. These values are discounted at 20% to find out the loss/gain to perpetuity. In this analysis, the margin passed on by Japanese carmakers has been fixed at 45%. Income loss/gain to perpetuity for GM with changes in exchange rate and Japanese content in Japanese carmakers automobiles: Exchange Rate: $1= 120 100 90 80 Japanese content 20% -$623,405,090 0 $415,596,830 $935,097,790 30% -$935,097,790 0 $623,405,090 $1,402,636,840 40% -$1,246,790,490 0 $831,193,660 $1,870,175,890 Another sensitivity analysis has been carried out, wherein the Japanese content in the automobiles is varied from 20% to 40% and the margin passed on by Japanese carmakers to customers has been varied from 15% to 45%. Here the exchange rate has been kept constant at $1 = 120 Income loss/gain to perpetuity for GM with varying Japanese content and margin passed on by Japanese automakers to customers: Japanese content 20% 30% 40% Margin passed on by Japanese carmakers to customers 15% -$207,808,260 -$311,712,390 -$415,596,830 30% -$415,596,830 -$623,405,090 -$831,193,660 45% -$623,405,090 -$935,097,790 -$1,246,790,490 In this case, value erosion ranges from -$208 million to -$1.25 billion REGRESSION ANALYSIS To calculate the effect of fluctuating yen-dollar exchange rate on the value of GM, a regression analysis can also be carried out. The coefficient of the exchange rate will indicate how much the value of GM changes. For example, if the coefficient is negative, it indicates that GMs value will decline as the yen depreciates relative to the dollar. However due to insufficient data in the case, this exercise has not been carried out. HEDGING POLICIES FOR COMPETITIVE EXPOSURE To hedge the competitive exposure to Japanese yen, GM can try the following strategies: ÂÂ ·Shift some of its production to Japan ÂÂ ·Source some parts from Japan However, these are long term strategies and need to be evaluated carefully taking into account market considerations. These decisions cannot be taken just for hedging purposes. GM currently follows a passive hedging policy which does not include guidelines on managing competitive exposure. All deviations from its current policy had to be approved by senior executives. An easier approach to manage the competitive exposure to the Japanese yen would be for GM to increase its yen borrowings (currently around $500 million worth of yen bonds are outstanding). This would serve as a natural hedge to any depreciation in the yen and would also not require the use of complex derivatives.

Climate Changes And Agriculture On Our Environment

Jessica Singleton Dr. Diao Metr 112 2 Dec. 2015 Climate Changes and Agriculture Over the last thousands of years, many factors have contributed to the significant changes that have and continue to take place within our atmosphere. Climate change has become universally recognized, based on scientific results backed by historically observed data, and also acknowledged by public perception in the last decades (Valverde et al 2015). While global warming is a highly debatable topic for the masses, the current climate changes occurring that have been identified are quit worrisome. Even more alarming, NASA reports that climate-warming trends over the past century are very likely due to human activities. Meaning that a lot of what people do in a general sense has a negative affect on our atmosphere. As valuable time continues to pass, it seems clear that more negative effects will arise and current related climate changing issues will intensify. With climate changes being an ongoing problem and many elements being affected, on e system in particular that climate change is having an impact on is our agricultural system or rather agriculture is having an impact on climate change. Causes There are many ideas of what is causing climate changes in our atmosphere. Everything from visible or sensible changes any person can determine, like how we are experiencing a lot more hotter days in what is suppose to be cooler seasons, to in depth-researched changes from scientist, such asShow MoreRelatedThe Effects Of Animal Agriculture On Our Environment Essay1040 Words   |  5 PagesAnimal Agriculture accounts for much of the issues in our environment today. Most would not think of animal agriculture being the main reason for pollution or greenhouse gasses. The majority of people would agree that the fossil fuels that come from cars are the number one producer for greenhouse gasses. Well think again. I am going to tell you how animal agriculture has affected our atmosphere in a negative way by emitting a large amount of GHGs, and in turn effecting our climate and speeding upRead MoreGlobal Warming Is Caused By Human Beings1174 Words   |  5 Pagesstrong evidence that humans are to blame, not just due to cars and factories but also from agriculture. A majority of scientists and scientific organizations believe humans are causing global warming. Global Warming is controversial. It is a perplexing phenomenon. Some people think it is a normal occurrence, others are afraid of the consequences and some say it is a myth1. However, sudden climate change start to be adversity. When we look at natural disasters that are not expected to occurRead MoreClimate Change : The Agricultural Industry And Suffering Animals974 Words   |  4 Pagessevere climate change, caused in part by the agricultural industry and suffering animals, but nobody cares. Climate change is upon us caused in part by the agricultural industry. The animal industry continues to wreak havoc on unfortunate livestock who are kept in captivity, and live a life of pain. While finally, we as humans seem to lack the ethic we need to fix our problems, and save not only ourselves, but the animals we share the world with. Earth’s climate is on a downward spiral, and our agriculturalRead MoreClimate Change Is Becoming A More Serious Issue1275 Words   |  6 PagesClimate Change I believe climate change is becoming a more serious issue as the year’s progress. As we all know the summers are getting hotter and the winters seem to not end fast enough. One reason I believe plays a big part in the changes is the big hand that humans have on the Earth. Every year, there are tons of CO2 being released into the atmosphere. This CO2 comes from a number of things such as: fossil fuels like coal or oil, energy generation, transport, and households. Climate change isRead MoreEssay about The Impact of Climate Change on Africa1479 Words   |  6 Pages Scientists, economists, and policy makers all agree the world is facing threat from climate warming. Climate warming is caused by excess greenhouse gases such as carbon dioxide which are heat trapping gasses. Human use of fossil fuels is a significant source of these gasses. When we drive our cars, heat our homes with oil or natural gas, or use electricity from coal fired power plants, we contribute to global war ming. Including any loss of trees or forests also contributes, considering treesRead MoreArgumentative Essay On Deforestation1399 Words   |  6 Pagesimportance of protecting our environment, they still do not care enough to create the level of change that we need to avoid catastrophic worldwide consequences in our near future. When the choice comes down to what is truly better for our planet or what is cheaper, most people and businesses value cheaper, regardless of the effects on the environment. Thus resulting in a tremendous cost to our global sustainability. This specific issue is real to me and others, because Earth is our home, and we need theRead MoreAnimal Agriculture : The Devastating Environmental Impacts Essay1546 Words   |  7 PagesAnimal Agriculture: The Devastating Environmental Impacts Since the beginning of mankind, we have become dependent on animal products as a food source. As population increased, so did the production of animal agriculture and its profitability. Unfortunately, it has grown into an industry that is unsustainable for this planet and is demolishing our environment at an astonishing rate. In the academic article, ‘Cowspiracy’ Strips the Meat Industry Down to the Bone, Ford reports the shocking statisticRead MoreThe Corruption Of The Atmosphere1517 Words   |  7 PagesCorruption of the Atmosphere Climate change has become one of the greatest issues facing our world. With the conclusion of the recent international climate summit, the climate has been one of the most talked about topics in the world. From any newspaper to television to presidential elections, it is always a relevant topic. Why has the climate though, of all things, gained so much attention and tension? Why is it bad that the climate is changing? The climate of the earth experiences cyclesRead MoreThe Consequences Of The Globes Meat Consumption1363 Words   |  6 PagesClimate change undoubtedly has a monumental effect on countries across the globe, It is becoming increasingly clear that it is the most important challenge facing international relations today. Agriculture and more specifically animal agriculture is one of the biggest contributors to human made climate change. This is important for international relations because animal agriculture effects trade, global food security and the global econom y. With the population growing at a rapid pace the demandRead MoreThe Effects Of Global Warming On The Environment1453 Words   |  6 Pagesglobal climate change. â€Å"Scientists generally agree that the globe has warmed over the past 40 years, due largely to human activities that raise carbon-dioxide levels in the atmosphere† (Clemet). Greenhouse gasses have always existed, but not to the extent that they do in today’s world; they are causing a dramatic change in climate and causing major environmental issues. Although some may argue the fact that climate change occurs naturally and humans have no impact on the speed of climate change, humans

Process of Growing and Strengthening Brands †MyAssignmenthelp.com

Question: Discuss about the Process of Growing and Strengthening Brands. Answer: Introduction: Lush Ltd. is a cosmetic company which was founded on 12 November 1995. The lush organization was developed by the Mark and Mo Constantine. It provides a variety of products in bath and body care, skin care and off beats gift ideas. All the products are homemade and it uses natural and ordinary elements. The selling prices of lush products are very reasonable. Lush stores are located in the major area and it is very specific about their areas and location. The team of the lush use segment market to attract the customers management. It gives ads and advertisement to increase the sale of the products and create a top image in the market (Tripathi, 2013). Lush uses the multi channel plans and policies and it does not have a customary marketing department. It also sells its products online and lush uses color codes to differentiate between natural products and ordinary products. The lush team is very creative and innovative, therefore, the team develops new ideas and thoughts to create ne w products. The company is very open minded and passionate about the new products and services. When the lush company launches a new product in the market, it tries to sell this product in the first 24 hours. It shows the brand personality like sincerity, excitement, sophistication, competence and honesty (De Chernatony, 2010). Lush produces various products such as shampoo, soaps, creams, shower gels, scrubs, moisturizers, lotions, masks and other cosmetics for the body, face, and hair. Its products are 100% vegetarian and lush includes vegetables, fruits, vanilla beans, rosemary oil, coconut and fresh papaya. Lush does not purchase products management from those companies who charge a high commission for the animal testing. They test their products on human helpers before selling the products in the market. Therefore, its products are made in the factories across the world including Canada, Poole, Dorset, Germany, Toronto, and Dusseldorf. Women and girls prefer the cosmetics and beauty products of lush. Thus, Lush is providing excellent cosmetics and beauty products to consumers. Now it can be said that lush has been able to be successful in catering to consumers personalities (Busatlija, Land Mathieu, 2014). We believe our products are good value, that we should make a profit and that the customer is always right this statement is true. Lush brand believes in good values of the products. The innovative products of Lush include dusting powders, bath ballistics, massage bars, solid body tints, shower jellies and solid perfumes. Customers can touch the products of lush and they can buy the products at reasonable prices. The company operates and manages more than 900 stores in 50 countries globally. There are various competitors of a lush company like the body shop, Weleda, and Organics cosmetic (Di, Y. Arbajian, 2014). All the competitors affect the business management of the company adversely. The company uses the external branding strategy to build equity among its consumers in the market. The main target audience of the company is women and the company is mainly working for women and girls. However, lush competitors such as Aubrey organics and the body shop which maintain broader target market and they also focus on the male consumers as well as females. Thus, lush should focus on the male consumer segment also to expand its business in the market. It is also popular for its unique and effective packaging which affect the behavior of consumers (Sahota, 2014). The several marketing mix strategies are used by the company to attract the customers in the market. Now a days the company is increasing its business day by day. It focuses on the consumers requirements, choices and behavior (Taylor, 2012). Recommendations have been given to lush through which the team of a lush company can improve the customer's experience and it can provide the better cosmetics and beauty products to its womens customers. They are discussed below: First, the company should understand and focus on the consumers behaviors, requirements, and expectations to increase the sale of the products. Therefore, it should make decisions quickly and provide fast services to its target audience. Lush should identify and evaluates the different types of customers and their requirements. The company should go the extra mile for the customers and it should take the feedback from the customers related to the products and services of the company. The company should maintain loyalty, honesty, and coordination with customers. In this way, the company can achieve the organization goals and objectives. Lush is a major player in the cosmetic industries so it should maintain the sustainability in the market (Wang, 2014). It should minimize and reduce the toxic components and replace them whenever possible. Lush should also produce the products for men so the company can increase its profit and revenue. It should make the sustainable and effective innovative strategies to attract more customers in the market and it should also improve the tailored and cosmetics products. Now it is concluded that Lush plays a significant role in the cosmetics and beauty products so the company should maintain unique brand personality in the market by producing the innovative products in the market (Sahota, 2014). References Busatlija, E., Land, M.B. and Mathieu, A.N., 2014. How could cosmetic companies use social media in times of crisis? De Chernatony, L., 2010.From brand vision to brand evaluation: The strategic process management of growing and strengthening brands. Routledge. Di, Y. and Arbajian, P., 2014. Understanding alternative choices of handmade cosmetics in the postmodern consumer society. Sahota, A. ed., 2014.Sustainability: how the cosmetics industry is greening up. John Wiley Sons. Sahota, A. ed., 2014.Sustainability: how the cosmetics industry is greening up. John Wiley Sons. Taylor, S., 2012. The Role of Visuals in Defining Fashion Lifestyle Brand Identity. Tripathi, S., 2013.Cosmetic product marketing in India vs. the United States. San Jose State University. Wang, J., 2014. Saving latex gloves from landfills: evaluating sustainable methods of waste disposal such as recycling, composting, and upcycling.

Getting Some College Essay Topics

Getting Some College Essay TopicsNyu College students can use essay writing services in the way of study. There are many college essays to choose from and they each require different skills and experiences for their writers. Students will often end up with more than one essay, which is tough to sort through. That is why they should take advantage of the expert essay writing services.If you are a college student in the Nyu College, then you need to know that there are many topics to choose from when you want your essays to be accepted. The most common topics involve love, relationship issues, and things that other people in the school have said to you. Some students like to focus on important points like the importance of time management and how an academic life should be shared by everyone. Others prefer to write about topics that will appeal to their classmates and superiors.It would be hard to think of college essay topics that will not be controversial at all. This is because the topics are very important and since the college is usually full of people who are very active, passionate, and have different opinions, it would be difficult to read what everyone has to say about the same subject. It is even more difficult when the topics are controversial since the topics may vary. Some students like to discuss topics that are related to current events while others prefer to write about subjects that were mentioned by their professors.Many college students are especially interested in researching their colleges. They would like to get the chance to investigate the student body, compare between colleges, and see if the professor liked the student's work. This is a very important way to be able to research for a college essay. A college researcher should be able to use a wide variety of resources and be able to write concisely about the topic.Students need to remember that it would be hard to write essays if they don't know anything about the topic. They should know what is being discussed in the topic and have the knowledge of the experts. They should also be able to find their own way to discuss the topic while keeping in mind the people who are actually writing the essays.Students at Nyu College will have a lot of time to research topics and they can easily spend hours doing so. The main idea is to come up with a good topic and make sure that they do not forget to include their own experiences in the topic. The goal is to come up with something that the rest of the people reading the essay will also like. A good part of the essay topic should be able to appeal to the reader in a positive way.Students should also be sure to write a good topic that will not be too difficult to tackle. This is so that they will be able to save time and effort when they go to write the essay. They can also become more confident if they see that they have done something good in the research.The Nyu College essay topics are quite challenging but not impossible to tackle. Students should have a good idea of what to do and what they should avoid in order to get a good topic. The fact that they are in college should help them see that there is still room for improvement as well.

An Essay on Civil Rights - A Massive Project

An Essay on Civil Rights - A Massive ProjectAn essay on the civil rights movement is a fairly large undertaking. It is about as complicated and long as a school project. There are a lot of reasons for this, but one major one is the time period involved.The civil rights movement and how it progressed is a fascinating topic to study and write about. This movement and how it affected people and the society at large is something that needs to be understood, studied and written about. What better way than with the help of the written word? Luckily there are some good essays available on this subject out there, and they can be bought for use at college, university or even your high school or elementary school.These essays are often available in eBooks, many of which are also available in the Google Books library for you to use. Using these essays can be a fun and engaging way to study the civil rights movement for your students or for yourself.First you need to decide whether or not you wa nt to use an essay on civil rights to teach your class. If you do, then you may need to find essays that meet the standards set by the school or college. So you may want to find a few to use to guide you, such as teaching an online course, or using one of the high quality essay writing sites out there. There are many different places you can look for good essays, just keep in mind what the requirements are.If you don't have the time to create your own essay then you can always find an essay on civil rights and purchase one to use. It will be a little more expensive, but it will save you time in the end.There are a couple of other online resources that can be useful. One is a writing and editing website that provide research materials for writers. Another is an excellent school resource with lots of essays on the subject that can be purchased for your use.Essays on the civil rights movement can be found for a number of different topics. They can be used in schools, online courses, an d in the classroom.

The Key to Successful Writing Help Online

The Key to Successful Writing Help Online Essay writing is a rather significant part any school curriculum or educational institutions. Together with the UK Essay Help undergraduates find it impossible to be worried about the time but delight in a complete life. Nowadays essays are an integral component of the curriculum provided by many institutions and universities. Our payroll and internet payroll services are trusted by hundreds of businesses. READ If you're likely to edit your own content that's not a great notion, then read your text aloud. Regardless of what you have to write, online help is always available, and you are able it! Unique people go various ways to get that very best assignment help but there are a few tips that may help one provide oneself with the much wanted best assignment help. The Battle Over Writing Help Online and How to Win It Countless writing business will offer their services claiming to deliver the highest quality papers at the most econom ical rates. A first-rate essay service writers and client service agents are there for you to converse with at any moment in the procedure. You simply landed at the site of the greatest academic writing service available on the market. Look at the characteristic of our paper from there and see whether you will let us provide you our help writing term paper services. Establishing a calendar with timeframes to complete certain facets of the management term paper will help keep the project moving forward at a productive pace whilst allowing for enough high quality time to create a fantastic research paper. If you have opted to get started writing by yourself, you always have the option to order term paper editing services at our site. When you're prepared to purchase term papers online, you desire an easy ordering process. When you choose to buy a paper online, the very first thing you would like is for it to be well written. Writing Help Online - Is it a Scam? It is essential that the student ought to be motivated and he or she's going to be mentally relaxed to be able to do the brainstorming for the term paper writing. Students may come across all sorts of term papers about any area of study in affordable prices from the expression paper databases, readily available term papers and expert help services. It's important to do what you can to increase your academic writing skills, but sometimes it's not possible for you to finish a paper however hard you try. You just need to send us your assignment topic and requirements and get in contact with the expert writers. Thus, the only logical way out is to get started seeking expert assistance with term paper. If you've already faced the issue of writing a term paper for one of your classes, you ought to have already realized that it's no simple job. A Startling Fact about Writing Help Online Uncovered Possessing online services to aid with essays has a price though. Our website is just one of the most appropriate for essay help. If you need assistance with math essay, we'll make certain you get our very best mathematician in our site. My writing wasn't necessarily fantastic. The article writing assistance are offered in an assortment of manners, some of which may be lead while some others aren't The writers need as a way to generate high excellent custom made essays which might be prepared on account of their clients even in eight hrs of order. Our essay writing service was designed to obtain you the additional help you have to have in completing your next paper. Your essay writing service is very valuable. When you purchase an essay from us, you're guaranteed to relish individual approach because essay help given by our writers is always customized based on your requirements. Selecting an essay writer on the internet isn't as expensive as some folks say. The expert writers know it better how to put the different arguments related to your topic correctly. Experienced term paper writers are affordable and they are able to help you acquire the information which you will need for your topic. Writing Help Online Features In any case, you might read the testimonials of our clients. Extra help services from professional writers are what it is possible to receive from the comfort of your property. Another benefit of our website is the quickness. Aside from the names mentioned here, you may also take assistance from Grammarly and Turnitin plagiarism checker. Regardless of what you select, we're confident our work will be beneficial for your studying. Hence, should you need assistance with your assignment in the center of the night, you can rely on our team to manage your troubles. There are lots of things for you to think about in crafting fantastic college papers. You must have a wide understanding of a subject, follow the demands and adhere to the academic manner of writing. You are going to be matched with the writer who's ideal for your undertaking. It's possible for you to request if you would like any country certain writers for your works. When you opt to come with us, you're going to be matched with the ideal writer for your undertaking.

English Essay Samples Form 1

English Essay Samples Form 1There are plenty of essay samples form 1. I am not saying that they will be right for you, but this form is worth a shot and if you get to the point that you really like it, maybe even use it more often.The first examples are quite a few. The writer behind one of the most well known and popular English essays ever written - Ulysses by James Joyce was said to be an avid fan of Sentences by this guy. This example is as good as it gets, as its direct and plain to the point. If you can copy and paste a few sentences from this one, you're in luck.Then there's also a very famous free form example in English. If you're looking for some structure and sentence structure, this free form example by Paul Graham is a great way to go. This example does have a couple of things I think I would do differently, though.I really wish he would have included a certain kind of typos here that could turn this free form example into a real life essay. This was only a one-paragraph example, so even if they fixed the typos, the essay would still be awful.The other thing I wish he would have done is maybe put in some form of post-structuralism in the sentences and paragraphs. One of the other forms of English essay samples form 1 is this famous form, which has very few sentences and much of it is used as either a subject or a description.There are a few sentences that would actually make a good essay, but most of the content is very long sentences that start and end, like a movie. The idea here is to tell a story and create drama in your readers' minds.This kind of essay is the kind that people really read about, because it's so enjoyable to read. So the next time you're trying to write a good essay, try these free-form examples.