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

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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.

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