Answer To: Afin8067 International Financial Management Syndicate Report Group Component (20%) Groups must be of...
Himanshu answered on Nov 06 2021
Executive Summary
Mission Statement of the company: Cochlear limited provides support to hearing people. The business encourages people to connect and enjoy happier lives. The organization innovates and commercializes a range of implantable hearing aids that provide sensory advantages over a lifetime. The main purpose of this report is to critically analyze the current international financial risk management tools used by Cochlear Limited. International financial risk relates to the management of currency risk and interest risk. As far as analysis is concerned, we believe that Cochlear, confined in worse time, has taken appropriate risk steps to shield itself and the shareholders from losing the capital they have invested. Cochlear raised extra money, net sales of $1,075.6 million, which improved Cochlear's capital base. In addition to additional loan programs. After the payment of the provisional dividend, Cochlear deferred the payment of the dividend to the Better Trading Climate. Cochlear has carried out a series of cost-management acts. The organization carried out a short-term operation during COVID‐19. Reduction of compensation for the Board of Directors, the CEO & President and the Senior Management, and even a freeze on hiring and the suspension of short-term benefits. The business has reduced non-essential spending, including a reduction in the advertisement, transport, etc. and contractor investment, and, where possible, has audited and decreased capital expenditure. The company maintains efficiency with the help of some Qualitative measures to minimize capital cost namely, Net gearing ration, Dividend payout ratio, and Eps growth. During the financial year, 2020 the company has bought shares on the exchange to remain heavily capitalized. There are certain threats that businesses have lately faced, exchange risk, interest risk, and market risk. Cochlear makes good use of financial risk management and risk policies developed and managed by the company's top management (Cochlear, 2020)
SWOT ANALYSIS
Strength: Working as a team will share the workload, each participant will have less duties to do, which ensures that participants will devote more attention to the position they perform, and this can lead to a better level of work. Members from diverse backgrounds and communities will have true ideas and perspectives, once a dilemma occurs, it would be easy to identify solutions.
Weaknesses: Working as a team is a brilliant idea, as described above. It is, though, often it's tough to monitor a large squad, as some people find it difficult to lead others. In comparison, if the leader does not have the right leadership skills, the team will struggle. Some people may leave their work to others, making people feel violated.
Opportunity: To work with a team, communication skills are very important, opportunity to develop this...