The Corporations Production Target Assignment Example | Topics and Well Written Essays - 1000 words

The Corporations Production Target - Assignment Example In line with the purpose of this memo, the beer making process in the application is attached as well as the modified process recommended thereon. Before the main issue is handled, an introduction is done regarding the cause of the problem and then the explanation follows in the inclusion of the recommendations. Saccharine Beers Corporation deals in the production and marketing of malted beers. Currently, the plant supplies the beer market with six million bottles of malted beer on a daily basis, which translates into half a million bottles of beer every hour. The capacity of the plant can slightly be increased to about three hundred bottles of beer every hour in a high season. On a low season, the Corporation reduces production up to a hundred thousand bottles every hour. The low season’s production is set so low, to ensure that production caters for just plant costs than to produce without market sensitivity. During the current high season, the plant expanded its production capacity to hit half a million bottles of beer. Production increments were in line with the increased market coverage and promotional strategies embarked in the recent past. Positive results have been confirmed by the Sales Department, with an all-time high sales record being posted. Enthusiasm within the Corporation’s operations has prompted future projections currently made to illustrate a capacity outstretch, both by demand and production. At Saccharine Beers, the production of malted beers is simplified to enable a process that is as close to the natural brewing process as possible. As illustrated in the flowchart, five main production stages are involved in the entire beer making process. For hygiene regulations compliance, the corporation simplifies the process as much as possible for quality assurance (Cobbett, 22). The main processes are briefly discussed, stating the problem involved and strengths.

Currency Hedging Essay Example | Topics and Well Written Essays - 5500 words

Currency Hedging - Essay Example For example investors bank their hopes on relative net returns such as Net Dividend Yield (NDY) generated by stock related investments. Thus potential investors look at how the growth trajectory of Net Asset Value (NAV) would increase in keeping with net returns in relatively less risky spheres of investment. Secondly the risk factor associated with currency market related investments is proportionately higher when foreign exchange related investments take a plunge due to uncertain government policies. For example if the government concerned allows its own currency to depreciate externally in order to correct a deficit in the trade balance of the balance of payment, investors would be caught on the wrong foot if they happen to bank their hopes constantly on the continuity of government policy (Maskey, 1995). Thirdly the government may adopt anti-inflationary measures such as higher corporate taxes and expenditure taxes. The net result would be less investment and less borrowing. Currency markets become dormant during such periods of negative policy initiative. Foreign exchange rates and interest rates ... s are positively related because when interest rates fall the exchange rates also fall because potential foreign investors do not buy the domestic currency concerned for investment when the domestic interest rates fall and as a result the demand for the domestic currency abroad falls thus leading to an unfavorable exchange rate (Larsen, & Resnick, 2000). Hedge funds, mutual funds, pension funds, commercial banks and other money market players have a tendency to hedge risk by minimizing the degree of exposure to adverse consequences arising from unfavorable exchange rates, inflation and investment related uncertainties such as a continuous fall in stock prices (Biger, & Hull, 1983). 2. Analysis 2.1. What is Currency Hedging Currency hedging has become a very controversial issue in modern money market operations (Adler, & Prasad, 1992). Commercial banks and other market players have adopted highly strategic exclusive policy initiatives to deal with the problem. This paper investigates the relative efficacy of such highly complex approaches to currency hedging adopted by different market players, while at the same time focusing attention on the doubt expressed by modern writers about the benefits of currency hedging strategies to all market players at a given time.Currency hedging is a technique that is meant to manage and reduce the risks involved when engaging in some foreign investment strategy. Essentially the very nature of a currency hedging effort would be more beneficial in obviating the negative outcomes from any shifts in the relative value of the currency as utilized in the investment process (Levy, & Lim, 1994). This is intended to shield the investor from negative shifts in the money market so that even if the currency involved takes a plunge