Managing And Transforming Policy Stigmas In International Finance

Strategic opportunity in terms of tactical and operational objectives

Discuss about the Managing And Transforming Policy Stigmas In International Finance.

It has been found that in the recent times the requirement of some good quality and professional printing is required for the purpose of carrying out the daily business activities and establishing decent communication with the stakeholders of the business. Hence the new opportunity in this respect can be capitalized profitably by the company.

The strategic opportunity that has been presented before the business is that there are very few entities that are conducting the business in this respect and hence it provides the company with an added advantage that it can gain higher market share in a very short period of time.

Proper work programs will have to be developed in this respect like the steps or the process that is going to be established within the entity to carry out the activities of the entity. Like at first the detailed request from the client will be accepted, then according to that the soft copy of the same will be prepared and a provisional copy will be sent to the customer for his approval. After the approval of the customer has been received the order will be printed (Chwieroth, 2015).

Setting up of the business objectives, the trend analysis and the time frames within the objectives have to be achieved and the way they are going to be achieved:

The business objective of “Professional Printing” would be to provide quality printed material to the customer at the most reasonable prices possible. For ensuring that the entity survives in the long run the trend analysis of the financial performance and the position of the entity are very crucial (Zhao & Huchzermeier 2018). Hence if the trends are showing negative returns corrective steps will have to be taken in that respect after the identification of the reasons for the down fall in the performance and position of the company. The time frame of the performance that is to be achieved by the entity will be fixed as quarterly.

Consultation with the relevant groups/ individual for preparation of the proposal and the steps that are going to be taken up by it for achieving the same:

The relevant group’s with whom the discussion in this matter should be carried out are the computer experts and the owners of the shops selling the colour and the paper required for the purpose of ensuring that the costs that is going to incur in this respect is continuously kept under monitoring.

Setting up of the business objectives, the trend analysis and the time frames within the objectives have to be achieved and the way they are going to be achieved

For ensuring, that the costs are being kept under the control, effort will be made to procure the raw material that is the paper, and the ink is done as peg rut economic order quantity basis. The reason for this is that it will help in maintaining the balance between the stock out cost and the inventory costs of the entity.

For the purpose of ensuring that the company doesn’t incur heavy losses in respect of the investment that is done by it on its capital expenditure  the returns that are going to be generated by the use of it must be greater than the weighted average cost of capital of the firm. If the returns are less than that the company is going to incur losses.

Financial Requirements

Startup cost

Statement Showing Startup cost
Start-up Expenses	Amount ($)	Amount ($)
Legal	2000.00
Stationery, etc.	800.00
Boucher	1250.00
Telephone	850.00
Consultants	4000.00
Insurance	1500.00
Rent	800.00
items expenses	5500.00
Advertisements	4500.00
Equipment expenses	3000.00
Other	1500.00
Total Start-up Expense		25700.00
Start-up Assets Needed
Cash balance	15000.00
Inventory items	1500.00
Other current assets	500.00
Long term assets	7000.00
Total Start up Assets Required		24000.00
Total Initial Financing Required (Startup Cost)		49700.00

Start-up Funding Plan
Source of Finance	Amount ($)
Capital	37275.00
Bank Loans	12425.00
Total Investment	49700.00

Cash Flow Statement (All amounts in $)
Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
Receipts
Collection	115000	126500	139150	153065	168372
Total Receipt	115000	126500	139150	153065	168372
Payments
Assets purchased	24000.00
Variable expenses	16700	18370	20207	22228	24450
Fixed Expenses	7800	8580	9438	10382	11420
Total Payments	48500	26950	29645	32610	35870
Net cash generated	66500	99550	109505	120456	132501
Opening balance	49700	116200	215750	325255	445711
Closing	116200	215750	325255	445711	578212

Profit or loss statement
Particulars	January	February	March	April	May	June	July	August	September	October	November	December
Income from Services	$9,583.33	$9,583.33	$9,583.33	$9,583.33	$9,583.33	$9,583.33	$9,583.33	$9,583.33	$9,583.33	$9,583.33	$9,583.33	$9,583.33
Less:
Variable Cost
Legal	$166.67	$166.67	$166.67	$166.67	$166.67	$166.67	$166.67	$166.67	$166.67	$166.67	$166.67	$166.67
Stationery, etc.	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67
Boucher	$104.17	$104.17	$104.17	$104.17	$104.17	$104.17	$104.17	$104.17	$104.17	$104.17	$104.17	$104.17
Telephone	$70.83	$70.83	$70.83	$70.83	$70.83	$70.83	$70.83	$70.83	$70.83	$70.83	$70.83	$70.83
Consultants	$333.33	$333.33	$333.33	$333.33	$333.33	$333.33	$333.33	$333.33	$333.33	$333.33	$333.33	$333.33
Advertisements	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00
Equipment expenses	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67
Other	$458.33	$458.33	458.3333333	458.33333	458.333333	458.3333	458.33333	458.3333	458.33333	458.33333	458.33333	458.33333
Contribution	$8,191.67	$8,191.67	$8,191.67	$8,191.67	$8,191.67	$8,191.67	$8,191.67	$8,191.67	$8,191.67	$8,191.67	$8,191.67	$8,191.67
Less:
Fixed Costs
Insurance	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00	$125.00
Rent	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67	$66.67
items expenses	$458.33	$458.33	$458.33	$458.33	$458.33	$458.33	$458.33	$458.33	$458.33	$458.33	$458.33	$458.33
Net Profit	$7,541.67	$7,541.67	$7,541.67	$7,541.67	$7,541.67	$7,541.67	$7,541.67	$7,541.67	$7,541.67	$7,541.67	$7,541.67	$7,541.67

Calculation of Discounted cash flow
Particulars	Year 1	Year 2	Year 3	Year 4	Year 5
Receipts
Collection	$115,000.00	$126,500.00	$139,150.00	$153,065.00	$168,371.50
Total Receipt	$115,000.00	$126,500.00	$139,150.00	$153,065.00	$168,371.50
Payments	$0.00	$0.00	$0.00	$0.00	$0.00
Assets purchased	$24,000.00	$0.00	$0.00	$0.00	$0.00
Variable expenses	$16,700.00	$18,370.00	$20,207.00	$22,227.70	$24,450.47
Fixed Expenses	$7,800.00	$8,580.00	$9,438.00	$10,381.80	$11,419.98
Total Payments	$48,500.00	$26,950.00	$29,645.00	$32,609.50	$35,870.45
Net cash generated	$66,500.00	$99,550.00	$109,505.00	$120,455.50	$132,501.05
Discounting factor @ 10%	0.869565217	0.756143667	0.657516232	0.57175325	0.49717674
Discounted cash flow	$57,826.09	$75,274.10	$72,001.32	$68,870.82	$65,876.44

Assumed discounting rate 15%

NPV

Calculation of NPV
Particulars	Amount
PV of cash flow	$339,848.77
Terminal Value	$132,503.05
Total Value	$472,351.82
Less:
Initial Investment	$49,700.00
Net Present Value	$422,651.82

Growth rate assumed for calculating terminal value is 15%.

For establishing, the budget created an effective communication has to be established between the owners and the workers of the printing entity. The communication is being made in respect of the ways the daily operations of the entity will have to be concluded for the purpose of delivering the requisite product to the customer of the company. the minimum use fo the papers and the appropriate amount of ink has to be used forte purpose of ensuring that the costs are kept under control and the value that is delivered to the customer is not hampered.

The links between the budget and the achievement of the objectives of the entity is a very crucial one and the only one whose adoption ensures that the value is created for the entity at the lowest possible costs being incurred on the part of the entity (Doherty et al., 2014). The linkage between the budget and the result is so strong because of the fact that the costs that is incurred by the entity in respect of the projects or the products that are being produced by it have a direct bearing on the profit that is earned by the company by selling the products. If the costs that are incurred by the entity are very high, then the profit margin that is being earned by the entity will reduce significantly.

For recording, the orders that have been made the entity will make use of software that will link the process of recording of data with that of the code of the email that is being received by the entity from the customer. As per the code of the email the entity the requirement file of the customer will also be attached. After proper telephonic or personal communication has been established regarding the requirements of the project that has been sent by the customer, the recording of the same will be done as revenue for the entity. For the purpose of reconciling the revenue and the costs of the entity the proper recording of the transaction is very essential. After the recording is being done the documentation of the same will help the entity to ensure that it is able to defend itself in case of any legal matters or provide the auditor with the requisite information for the purpose of audit.

Risk management and contingency plan:

For the purpose of effective mitigation of the risks that are being faced by the entity it is required that the entity keeps itself ready with a contingency plan. The contingency plan in the case of this business will be to ensure that the advice regarding the changes that are occurring in the environment of the entity are being taken from the industry experts and proper communication is being established between the various constituent of the changes and the owner of the entity. This will ensure that effective mitigation of the risk takes place within the entity.

Policies and the procedures for the proper maintenance of records of the financial performance and evaluation of the effectiveness of the financial management process:

For the purpose of maintain the records of the financial performance of the entity the help of the accounting softwares will be taken. In case the information required by the software is not in possession of the company then the reason for its absence will immediately be taken up for consideration by the entity.

Reference

Chwieroth, J. M. (2015). Managing and transforming policy stigmas in international finance: Emerging markets and controlling capital inflows after the crisis. Review of International Political Economy, 22(1), 44-76.

Doherty, T. L., Horne, T., & Wootton, S. (2014). Managing public services-implementing changes: a thoughtful approach to the practice of management. Routledge.

Zhao, L., & Huchzermeier, A. (2018). Managing Supplier Financial Risk with Pre-shipment Finance Instruments. In Supply Chain Finance (pp. 121-142). Springer, Cham.