SUMMATIVE ASSIGNMENT
Assume that you are employed by Vertex-Speed Ltd, a fast growing car
manufacturer based in County Durham, UK. Vertex-Speed has been exporting
“Vertex-Gamma”, a prestigious executive car, to Malaysia and Brazil for the last 10
years. The company is considering establishing a subsidiary to produce similar
quality cars either in Malaysia or in Brazil. The subsidiary is expected to sell its
products in the host country as well as in the neighbouring countries of the host. The
Managing Director of Vertex-Speed is aware that you have recently completed an
MBA from Durham Business School with an in-depth knowledge in international
financial management. Therefore, she approaches you for your advice. You are
required to prepare a report comparing the risk factors that Vertex-Speed may
encounter in these countries and suggest the best alternative. In your report you
should also include the measures that Vertex-Speed should take in managing the
risk associated with the suggested host country.
=============================================================
Performance in the summative assessment for this module is judged against the following
criteria:
· Relevance to question
· Structure/presentation & clarity of writing
· Scope & relevance of literature review
· Rigour of argument
· Evidence of understanding
· Conclusions/Recommendations
==============================================================
Approximate context?
Introduction
Automobile industry
Risk assessment in Brazil
Risk assessment in Malaysia
Conclusion and Recommendations
We have to analyze the systematic risk of the country, country risk and financial risk, and also see if the region has some risk or not, all these should be taken into account.
Like:
Exchange rate, trends for some years
Bureaucracy
Corruption
Consumer attitude
We have to suggest by the end whish country is best to establish subsidiary in.
We have to use Treasury bonds of the government (macro economic risks)
Find the Market return
Fixed deposit Bank rate can be used
How can we adjust risk with the discount rate?
Some assumptions are good
Credit:ivythesis.typepad.com
0 comments:
Post a Comment