• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

The effect of the Euro on 'The Carphone Warehouse' Plc

Extracts from this document...

Introduction

FACULTY OF DESIGN SCHOOL OF SURVEYING ASSESSMENT STUDENT NAME: Seyanthan Sivapalan Module Reference Number: SV1020 Date Due:...30/01/04 Handed in:...30/01/04 On time SUBJECT:...................................................................................................................... WORK SET BY:.............................................................................................................. I confirm that I have read and understood the definitions of cheating on the reverse of this sheet and confirm that I have not plagiarised or colluded in the production of this work ......S.Sivapalan.............................................signed For Staff use only: Criteria Grade Comments (space for additional comments overleaf) Presentation Grammar + Spelling Content, Knowledge & understanding Structure Research / Referencing Other Criteria Overall Comment OVERALL GRADE...................... TUTOR................................... DATE............................ .................................................................................................................................. RECEIPT Received by................................................Date.......................Time................................ COURSE ASSIGNMENT SUBMISSION SHEET Please attach this completed form to the front of your assignment and submit by the due date. Each piece of work must have one of these forms attached clearly indicating which tutor it is intended for. DO NOT hand work directly to the school office - all assignments must be recorded as being handed in by Barry Staff. Assignments handed in after the time due will be stamped 'LATE'. Students who are unable to submit work on time must provide a written submission together with the Mitigating Circumstances form by the hand-in date for consideration by the Course Team at the end of the academic year. Cheating - Definition Cheating is defined as any attempt by a candidate to gain unfair advantage in an assessment by dishonest means and includes all breaches of examination room rules, impersonating another candidate, falsifying data and obtaining an examination paper in advance of its authorised release. ...read more.

Middle

will force EU countries into a system of fiscal responsibility which will enhance the Euros international credibility." (EMU) This stability pact will ensure optimum conditions for more investment, more jobs and lower interest rates. These factors will mean that the economy is stronger and that on the whole the consumers will have higher levels of disposable income, and so there is potential for increased revenues and ultimately higher profitability for the company. ? Price transparency Price transparency will benefit the company in that the buyers will be able to directly compare prices of supplies across Europe and source the best deals. The ability to directly compare across the continent will make suppliers more competitive and therefore will increase profit margins for the company. Again this will have a positive effect upon the dividend for shareholders of the company. ? Improved cross - border operations The main problem for a company looking to expand abroad is setting up. To organise new head offices internationally is time consuming and more importantly an additional overhead for the company. However, the single currency will make cross border operations far easier as all payments and sales will be taken in the same currency. So for example, head office of the company in the U.K will be able to pay its French retail employees without incurring further cost or time delays. ? Investment capital more obtainable Should the directors of company implement an expansion programme or investment into the business, additional capital may be required outside of the businesses reserves. ...read more.

Conclusion

It is vital to plan for unexpected circumstance prior to entering the single currency so that any unforeseen problems can be dealt with as efficiently as possible with minimal damage to the company. This will involve ensuring the initial cost of preparing the systems to accept the Euro is kept to an absolute bare minimum as these costs will never be recouped through sales. The two major disadvantages of the Euro regard to the possibility of increased interest rates. There is no way of tackling this, apart from limiting borrowing from banks and to ensure the company does not carry unnecessary debtors. This will ensure maximum chance of survival during a recession. In order to present the company's opinions to the government, who ultimately make the decision, we need to make them as fully aware of our viewpoint as possible. Once the report has been published it should be presented by the directors to government, to illustrate the degree to which the Euro will benefit the company. ~Appendix~ Many sources were use in the collection of research for this report. The majority of which were web-based, details as follows. www.carphonewarehouse.co.uk The company's own web site provided much useful background information about the company. http://www.hm-treasury.gov.uk/ The treasury's main website that contains various relevant press releases and important speeches by officials, on the subject of the Euro. http://www.euro.gov.uk/prep_reports.asp The treasury's official public resource on the Euro, which contains several reports on preparations for the Euro. http://www.eubusiness.com/emu/euroamue.htm The EUbusiness web site is an independent online business information service about the European Union, that has specific advice for retailers on the introduction of the Euro. http://news.bbc.co.uk/1/hi/business/default.stm The BBC's business news site with many relevant articles. ?? ?? ?? ?? ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE Economy & Economics section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE Economy & Economics essays

  1. Critically evaluate the perceived competitive starategies of the five clothing retail outlets, namely Edgars, ...

    branded products in South Africa. U.S. apparel has a reputation in South Africa for superior quality. South Africans are prepared to pay top dollar for American products because they get value from American products. South African consumers follow U.S. fashion and culture very closely. The "American image" sells.

  2. Bellway Plc is a holding company with subsidiaries; its main subsidiary company is Bellway ...

    These were mainly used for marketing purposes such as more showrooms and creating new divisions. By having stable equity issues Bellway is not diluting shareholder value. Activity Ratios In 2004 Bellway employed an average of 2020 people, 7% more than 2003, which helps strength labour strategy.

  1. Toyota Motor Company Limited

    If Toyota operates in one country, it can easily expand business and sell its automobiles to neighbouring countries. For example, people are now concerned about pollution problems. Research shows that carbon dioxide, which is mostly produced by cars, decreases ozone.

  2. The purpose of this report is to advise the chief executive officer of Cisco ...

    The home products range is the same as that of the corporate range, with just a smaller capacity. There products include routers, switches, wireless access points and Internet Protocol phones. The business market is split up into small and medium business (SMB), financial services, large enterprises, service provider and government.

  1. Why has Nucor performed so well in the past?

    production technologies. Such technology had the effect of reducing the minimal efficient scale of production "from millions of tons to hundreds of thousands of tons, or less" (Nucor Case, 1990) as well as reducing the capital cost per ton of capacity by a factor of 10.

  2. If Carphone Warehouse was considering opening a new store, they would have to take ...

    on a bus or train route, this is so any customer would be able to get to this store relatively easily. The cost of premises or land is a huge factor to consider as Carphone Warehouse would not be able to afford to buy a store if it was too

  1. Discuss the Advantages and Disadvantages of International Trade for Elecrox PLC

    These two factors combined means that if Elecrox PLC manufacture abroad, there can sell their goods at a greater profit margin which will mean that the company will be able to become wealthier. This additional income to the company can allow them to spend more money into research & development

  2. Exchange Rates and their Effect on Morocco Report.

    A fixed exchange rate or a pegged exchange rate is an exchange rate regime where a country currency value is set against another asset. This can be another currency, a basket of currencies or a commodity such as gold or silver.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work