Business situation Essay Example | Topics and Well Written Essays - 1250 words

Business situation - Essay Example s in this industries however for the past eighteen months the currency exchange rate for the company’s headquarters branch in Australia has experienced a steady reduction. This has come with a lot of implication on the price of production in Australia branch and thus the ability of the company to compete with emerging-market producers from Australia production facilities. This report aims clearly to define this problem or situation for the business and keenly analyze the situation to compare the implication from planning and organizing perspective. The report will then provide its recommendation in a form of a step-by-step action plan that the CEO of the company should take. The world market today is a global village (Cadle & Eva, 2014). This means every business in its planning today faces a lot of constraints that must be incorporated in these ventures. Some of these problem comes with differences in price of a currency of the mother firm’s country and those of other countries with it has business relations. Exchange rate is defined as the cost or worth of one currency as compared to other currencies (Cadle & Eva, 2014). This price can either rise or reduce depending on the prevailing economic atmosphere in the country. A fall or reduction in exchange rate in a country is mostly referred to as depreciation or devaluation depending on the kind of exchange rate system adopted by the country in which the business is established (Cadle & Eva, 2014). Reduction in currency exchange rate, therefore, makes the currency of the country in question lower in value as compared to currencies of other countries. A decrease in currency exchange rate, therefore , will mean that the county’s export becomes cheap in a global market as compared to imports of the same country from other countries (Cadle & Eva, 2014). Bronxe Yachtstm, a privately owned business, has in the recent past faced this interesting problem through their headquarters branch in Australia. The company