ASSIGNMENT

Module Code

ACF506 International Finance management (IFM)

Module Name

Course Department

MBA in Finance and Accounting Department of Management Studies

Name of the Student Reg. No Batch Module Leader

Aflall-A-Mahamood HMB0910004 Full-Time 2010. UDAY KUMAR JAGANNATHAN

M. S. Ramaiah School of Advanced Studies

Postgraduate engineering and management programmes(PEMP) #470-p peenya Industrial area, 4th phase, peenya, bengaluru-560058 TEL; 080 4906 5555

website: http://www.msrsas.org

Declaration Sheet

POSTGRADUATE ENGINEERING AND MANAGEMENT PROGRAMME (PEMP)

Student Name Reg. No Course Module Code Module Title Module Start Date Module Leader

AFLALL-A-MAHAMOOD HMB0910004 MBA FAC ACF506 International Finance management (IFM) 15-8-2011 Mr. Uday Kumar Jagannathan Submission Date 17-9-2011 Batch 2010

Submission Arrangements This assignment must be submitted to Academic Records Office (ARO) by the submission date before 1730 hours for both Full-Time and Part-Time students. Extension requests Extensions can only be granted by the Head of the Department / Course Manager. Extensions granted by any other person will not be accepted and hence the assignment will incur a penalty. A copy of the extension approval must be attached to the assignment submitted. Late submission Penalties Unless you have submitted proof of Mitigating Circumstances or have been granted an extension, the penalties for a late submission of an assignment shall be as follows: Up to one week late: Penalty of one grade (5 marks) One-Two weeks late: Penalty of two grades (10 marks) More than Two weeks late: Fail - 0% recorded (F2) All late assignments must be submitted to Academic Records Office (ARO). It is your responsibility to ensure that the receipt of a late assignment is recorded in the ARO. If an extension was agreed, the authorization should be submitted to ARO during the submission of assignment. To ensure assignments are written concisely, the length should be restricted a limit indicated in the assignment questions. Each participant is required to retain a copy of the assignment in his or her record in case of any loss. Declaration The assignment submitted herewith is a result of my own investigations and that I have conformed to the guidelines against plagiarism as laid out in the PEMP Student Handbook. All sections of the text and results, which have been obtained from other sources, are fully referenced. I understand that cheating and

plagiarism constitute a breach of University regulations and will be dealt with accordingly. Signature of Delegate Date Stamp from ARO Signature of Module Leader

Date Signature of ARO Staff Signature of Course Manager

Department Course

MANAGEMENT

M. FAC Batch Full-Time MBAS. Ramaiah School of Advanced Studies 2010 Postgraduate Engineering and Management Programme- Coventry University (UK) Module Code Module Title ACF506 International Finance management (IFM) Assessment Sheet Module Completion Module Leader Mr. Uday Kumar Jagannathan 10-9-2011 Date
Student Name Attendance Details

AFLALL-A-MAHAMOOD
Theory Laboratory

ID Number Fine Paid

(if any for shortage of attendance)

HMB0910004
Remarks

Assignment Marks-Sheet (Assessor to Fill) Part A B C Marks Scored for 100 Marks Scored out of 50 FAIL Remarks a b c d e f Total Remarks

Result PASS Written Examination Marks Sheet (Assessor to Fill) Q. No 1 2 3 4 5 6 Marks Scored for 100 Result PASS Yes PMAR- form completed for student feedback (Assessor has to mark) Overall Result Components Assignment (Max 50) Written Examination (Max 50) Total Marks (Max 100) (Before Late Penalty) Total Marks (Max 100) (After Late Penalty)
A+ A AB+

Total

Marks Scored out of 50 FAIL No

Assessor

Reviewer Pass Pass Grade Grade

BB 59-55 C+ C FAIL

Fail Fail

100-75

74-70

69-65

64-60

54-50

49-45

44-40

Less than 40
F2

IMPORTANT 1. The assignment and examination marks have to be rounded off to the nearest integer and entered in the respective fields 2. A minimum of 40% required for a pass in both assignment and written test individually 3. A student cannot fail on application of late penalty (i.e. on application of late penalty if the marks are below 40, cap at 40 marks)

34-25 24-0

Signature of Reviewer with date date

Signature of Module Leader with

Abstract

This assignment is an attempt to get familiar with the art of International Finance management (IFM). It comprises of three sections. The first part deals with debate and discussion. The second part we talk about macroeconomic challenges in the world. The third part deals with International business risk.

Table of Contents
B ................................................................................................................................................. 3 Abstract ...................................................................................................................................... 3 Table of Contents ....................................................................................................................... 5 PART A ..................................................................................................................................... 6 PART B...................................................................................................................................... 9 PART C...................................................................................................................................... 1 CHAPTER 4 .............................................................................................................................. 2 4.1 Comments on Learning Outcome: ................................................................................... 2 4.2 Summary/Conclusion ....................................................................................................... 2 REFERENCES .......................................................................................................................... 3

PART A
Debate: Root cause of success or failure of an organization is solely dependent on team Performance A team is a group of people working together to achieve a common goal. Teams are particularly suitable for conducting tasks that are high in difficulty and have many interdependent subtasks. Normally in a team, it will have members with balancing skills and create synergy through a coordinated effort which allows each member to maximise their strengths and minimise their weaknesses. In a team every members help each other to get the job done and help other team members understand their accurate possible, and craft an atmosphere that allows everyone to go clear of their limitations. Team size and composition affect the team performance and outcomes. The most favourable size of teams will differ depending on the task at hand. At least one study of problem-solving in groups showed an best size of groups at four members. Other works guess the best size between 512 members Fewer than 5 members results in decreased perspectives and diminished creativity. Membership in excess of 12 results in increased conflict and greater potential of sub-groups forming. These days all most all companies group their employees as a team because it gives them best result than working independently. As for this debate statement my opinion is yes, the route cause of success and failure of an organisation is solely depend on team performance. Now a days every organisation go for team work instead of individual work the reason behind this is when working as a team the work can be carried out much simpler and easy and also the outcome will be much better than that of individual work because the team consist of few employees of different skills and its coordinated accordingly by the team leader. For example in a retail organisation like Wal-Mart the success and failure is wholly depend on team performance. The employees in Wal-Mart are categorizes as teams like sales team, logistic team, purchasing team, store team, etc. The team work makes the complexity of work easy and helps the organisation to achieve its objective on time. In Wal-Mart the sales team performed in such a way that they achieve more than their target on standard time and also they help to retain and attract more customer only because their honest work, if they did not performed efficiently the Wal-Mart will be drown off from the market. The Wal-Mart beat their competitor only cause of its success full team work, their high performing sales team, delivering team, stores keeping team, advertising team makes them far better than its competitor. Their route cause of success is wholly depended on teak performance. the chance for wastage and error while working is very low on team as

compared to individuals and also if an organisation go for team works the cost of production will be low and there is no need of any supervisory because the team leader will taken care of that. The organisation can produce more quality goods by fewer resources if its team performance is very effective, if not the production will be at stake. In the case of Royal Enfield its famous for in handcraft work. If the team does not perform there efficiently then the company will have high production cost more wastage and also its goodwill will be at stake. The organisation can achieve its over all goals on time if it takes care to improve its team performance. A team should work in harmony in any organization, two or more people working together harmoniously is a major factor towards achieving success. It is the responsibility of a leader to supervise the performance of team bring out the most excellent among his subordinates and find out the weaknesses, strengths, and possible development of each team member. Team performance management is the major key in increasing productivity within a group. The effective team performance helps the organization for solving many of the problems in the organization smoothly and fast without it, it may be difficult for the management to solve the problems. Another benefit with the effective team performance is the turnaround of business. The team performance play a vital role in the business strategic planning and taking care of that plan in to reality as much as possible without effective team work it will be much difficult to implement strategic planning in any organization. Effective team work helps the organization very much in the case of gaining competitive advantages and helping in benchmarking of best product or business technique adopted by its competitors and help to gain the market before competitor does. Today world the mobile phone industry is facing very tight competitions best way to compete with the competitors are done by re engineering of the products and innovating products better than that and its done only with the help of high efficient team performance. The organizations spent billions of money only for training the teams and developing the team so that the business can fight against its competitor and gain its markets and achieve its objectives and goals on time. Due to high risk in competing markets many organization chooses many strategic changes such as differentiation, focusing in a particular market etc these thing are achieved only with the help of effective team performance. The effective team performance helps the organization to adapt the changes due to external factors like government policy, market condition, economic changes like depression, competitions and financial crises etc.

Customer are very much conscious about the present market and competitive conditions in the economy so every business organisation try their best to satisfy the

customer needs and wants and try to retain customers and attract more customers to expand the market, these can be achieved only through effective team performance. Every business in the present era gives high priority in the case of ethics, both business and social ethics. These ethics helps the business in decision making in every situations. These can be achieved only through effective team performance. As we heard about the present us debt crisis and European economic crises organisation that involved in overseas business needs to think critically in all angels to avoid loses. Without effective team performance organisation can not take the right decision on these circumstances. Another important area where the effective team work is important is Constructive Negotiations. The team performance plays a vital role in planning and executing business projects and managing it to make it a successful project, with out effective team work it cannot be taken care. In the case of a service industry or any other industry customer compliant solving is a very big problem. The compliant should be solved on time and also the customers should be satisfied with organizations response and organization should hold the customer without loosing them, organization should earn their loyalty. To achieve all these things effective team performance is a must without it organization cannot response fair enough to customer, their problems will not be solved on time and if its solved customers will not be satisfied with their work and they fail to earn customers trust and loyalty and they will lose their customer so as the market and fail to compete with its competitors. CONCLUSION: Root cause of success or failure of an organization is solely dependent on team performance because in every business organization without the help of a effective team performance it can not hold its place in the market and compete with its competitor. In every movement of the business organization there a vital role played by the team. Team performance helps the organization to increase its business turnover, retain customers, attract new customers, solve customers problems on time, helps in planning and executing business projects, helps in taking decision on critical circumstance, helps in changing business strategic planning and executing it on right way. The team performance is a must for benchmarking in business and also re engineering in product or new technique to beat its competitors. Every business organization spent billions of money to train the team and develop the teams to make sure business can achieve all its objectives and goals on time. So the route cause of success and failure of business organization solely depend on team performance.

PART B

Ethics, also known as moral beliefs, is a branch of philosophy that addresses questions about morality that is, concepts such as good and evil, right and wrong, virtue and vice, justice and crime, etc. Business ethics also known as corporate ethics. It is a form of practical ethics or professional ethics that examines ethical principles and moral problems that arise in a business environment. It applies to all aspects of business behaviour and is important to the behaviour of individuals and entire organizations. Business ethics has both normative and vivid scope. As a business way and a career speciality, the field is primarily normative. Academics attempting to recognize business performance use descriptive methods. The range and quantity of business ethical issues reflects the interface of profit maximizing behaviour with non financial concerns. Importance in business ethics accelerated significantly during the 1980s and 1990s, both within major corporations and within academia. Today most major business promotes their promise to non financial values under heading such as ethics codes and social responsibility charters. Governments use laws and regulations to point business behaviour in what they distinguish to be helpful instructions. Ethics totally regulates areas and particulars of behaviour that be positioned further than governmental control. The appearance of large business with partial affairs and understanding to the communities in which they function accelerated the growth of formal ethics regimes. One of the most significant attributes for small business victory is the unique excellence of working estimable business ethics. Business ethics, experienced during the deepest layers of a company, become the heart and soul of the company's culture and can mean the difference between success and failure. there are seven principles of admirable business ethics, they are, Be trustful Keep an open mind Meet obligation Have clear documents Become community involved Maintain accounting control

Be respectful

COMPANY SELECTED: TESCO

Tesco plc is a global grocery and general merchandise retailer headquartered in Cheshunt, Hertfordshire, England, and United Kingdom. It is the third-largest retailer in the world measured by revenues and the second-largest measured by profits. It has stores in 14 countries across Asia, Europe and North America and is the grocery market leader in the UK where it has a market share of around 30%, Malaysia, the Republic of Ireland and Thailand. Type Traded as Industry Founded Founder(s) Headquarters Public limited company LSE: TSCO Retailing 1919 (East London) Jack Cohen Cheshunt, Broxbourne,Hertfordshire, England, United Kingdom Number locations Key people Products David Reid (Chairman) Philip Clarke (Chief Executive) goods, financial services, of 5,380 stores (As at Feb 2010)

Groceries, consumer telecoms

60.93 billion (2010/11) Revenue 3.81 billion (2010/11) Operating income Net income Employees 2.67 billion (2010/11) 472,000 (2010)

TESCO is an international company with a strong reputation for providing quality products and services. They frequently seek to carry the best results for the Company, the highest return to their shareholders, and the most helpful service to our customers. Ethical behavior is defined as that which is morally correct and honorable. To uphold their valuable reputation, and to build on their success, they conduct their business in a way that is legal as well as ethical. This Business Ethics Policy establishes TESCO's promise to following ethical business practices. It details the fundamental principles of ethical business behavior and defines the responsibilities of all employee and Company representatives. Following is the ethical practices adapted by Tesco, Compliance with Laws: TESCO business both domestic and international must be conducted in agreement with all appropriate laws and regulations. Tesco is very be aware of the legal requirements that apply to job, and follow those laws strictly. TESCO will not tolerate illegal activity conducted for personal gain or on the Companys behalf. Honesty and Integrity: TESCOs reputation and credibility is in thier business relationships. Be honest and honourable in all dealings with other employees, the public, the business community, shareholders, customers, suppliers, competitors, and government authorities. Entertainment and Gifts: Never accept a gift, entertainment, or any other benefit from an individual or organization doing business with TESCO if that gift, entertainment or benefit could influence their decisions or, if it were made public, might appear to have influenced their business decision. Any gift, entertainment, or benefit Tesco provide to a business associate must be modest in scope and value. Never provide a gift, entertainment or benefit that contravenes any applicable law or contract term or that is large enough to influence, or appear to influence, the recipients business decisions. Consultant Fees, Commissions and Other Payments: Never give or receive any payment that falls outside the normal conduct of business is their another important business ethics. They ensure that all consulting or agency fees, commissions, retainers or other payments are reasonable in the context of acceptable commercial practice and that they comply with applicable corporate policies. Properly record all payment given or received in the Companys accounts. If anyone engage in giving or accepting kickbacks, bribes, payoffs or other illegal or similar transactions they will be subject to immediate discipline, up to and including dismissal in accordance with Tescos policy on employee discipline.

Political Contributions: TESCO does not wish to discourage the contribution of employees in political and related activities. However, employees may not make political contributions on TESCOs behalf, either directly or indirectly, without the prior written approval of TESCOs Executive Management.

Compliance with Accounting Controls and Procedures: Another important ethics is always complying with the Companys accounting procedures and controls, and all applicable laws. Properly record all financial data and transactions. TESCO does not permit the use of slush funds, or other unrecorded funds or assets. All disclosure contained in reports and documents filed with securities regulators and other governmental authorities by or on behalf of TESCO shall be full, fair, accurate, timely and understandable.

PART C

M.S Ramaiah School of Advanced Studies Postgraduate Engineering and Management Programme (PEMP)

CHAPTER 4
4.1 Comments on Learning Outcome:
International Finance management (IFM) being the module helps understand the basics and also the core aspects of the IFM. In IFM we have understood all about how exchange rate and currency hedging, asset management work.

4.2 Summary/Conclusion
Understanding the various factors of International Finance management (IFM). How the MNC carry out the business, what all risk they are facing. How heading is carried out. How to minimize the risk due to currency exchange rate.

M.S Ramaiah School of Advanced Studies Postgraduate Engineering and Management Programme (PEMP)

REFERENCES
[Referring Web Published Article] http://www.business-finance.org/currency/analysis-on-the-effectiveness-of-monetarypolicy-in-china.html http://www.business-finance.org/currency/analysis-of-the-current-internationalmonetary-system.html http://www.brettonwoodsproject.org/art-568884 http://www.economist.com/node/15452594 http://www.forbes.com/2010/04/23/greece-imf-loan-opinions-contributorsswaminathan-aiyar.html http://www.treasurystrat.com/csearch/Best%20practices%20analysis%20in%20manag ement%20of%20currency http://en.wikipedia.org/wiki/European_sovereign_debt_crisis http://en.wikipedia.org/wiki/Economy_of_Greece http://www.ft.com/indepth/greece-debt-crisis http://greekeconomy.blogspot.com/ http://abcnews.go.com/WN/greeks-streets-violent-protests-economicproblems/story?id=10567233 http://edition.cnn.com/2010/BUSINESS/02/10/greek.debt.qanda/index.html http://www.europeanideasnetwork.com/files/EIN-food-for-thought3.pdf http://www.qwoter.com/college/Understanding-the-Risks/24.html http://business.gov.in/growing_business/methods_business.php http://www.investopedia.com/terms/f/foreignexchangerisk.asp#axzz1Y7uSFWcY http://en.wikipedia.org/wiki/Political_risk http://www.investopedia.com/terms/p/politicalrisk.asp#axzz1Y7uSFWcY http://www.studyfinance.com/jfsd/pdffiles/v11n1/bulmash.pdf http://books.google.co.in/books?id=xbm8BUKGu7MC&pg=PA14&lpg=PA14&dq=m nc+business+risk&source=bl&ots=0hU-lLO8w1&sig=jIDmxwjeszCZVp9rzQGr7vMAys&hl=en&ei=6GpzTsGDLM7xrQfnqOS_Aw&sa=X&oi=book_result&ct=result&r esnum=8&ved=0CF4Q6AEwBw#v=onepage&q=mnc%20business%20risk&f=true http://it.toolbox.com/blogs/enterprise-solutions/sources-of-risk-22055 http://www.source-asia.net/index_files/Page610.htm http://www.investopedia.com/terms/b/businessrisk.asp#axzz1Y7uSFWcY

M.S Ramaiah School of Advanced Studies Postgraduate Engineering and Management Programme (PEMP)

http://www.investopedia.com/articles/financial-theory/09/risk-managementbusiness.asp#axzz1Y7uSFWcY