1. Assume the following information:​

​

1. An U.S. investor has $1,000,000 to invest (note: the investor uses own money, not borrowed funds). What is the yield to the U.S. investor who conducts covered interest arbitrage? Make sure you show your works step by step and explain your calculations. Does covered interest arbitrage work for the U.S. investor?

2. A Swiss investor have Swiss francs (CHF) 1,000,000 to execute covered interest arbitrage (i.e., convert CHF into US$, invest in the U.S., and use forward contracts to hedge foreign exchange rate risk). What is the yield to the Swiss investor who conducts covered interest arbitrage? Can the Swiss investor earns a higher return than investing at home (i.e., Switzerland)? (6 points in total)

Using the supply and demand model described in Chapter 4 of the text, show on a graph (label it clearly!) and describe what should happen to the value of the Indian rupee relative to the U.S. dollar as a result of the following (each question is independent):

1. The real interest rate in the U.S. rises relative to the real interest rate in India.

2. The nominal interest rate in India rises relative to the nominal intertest rate in the U.S. The real interest rates are the same in both countries, before and after the change in the nominal rate. Should Indian speculators attempt a carry trade strategy by borrowing in the low nominal interest-rate country and investing in the higher rate country?

3. Circulating rumors suggest that the Indian government plans to impose a large tax on investment returns generated in their country and remitted to the U.S. Although analysts are uncertain about the likelihood of implementing the tax, if adopted, it will be in force for the next five years.

4. U.S. GDP is expected to grow at twice the rate of Indian GDP over the next two years.

Determine what the dominant strategy is for each player in each game below:

a. ​​​​​​

b.

c.

Hawkeye Networks is a U.S. corporation with $20 million of U.S. source income and no foreign-source income of its own. Hawkeye Networks has wholly owned subsidiaries in Korea and Singapore. The Korean subsidiary has $43 million of pretax Korean-source income, faces a 40% Korean tax rate, and pays a $10 million dividend to Hawkeye Networks. The Singapore subsidiary has $7 million of pretax Singapore-source income, faces a 25% Singapore tax rate, and pays a $2 million dividend to Hawkeye.

a. How much taxable income will Hawkeye Networks report on its U.S. tax return? Assume repatriation of income from the foreign subsidiaries will qualify for the participation exemption for U.S. purposes.

b. Now suppose the Singapore subsidiary's income is Subpart F income. How much taxable income will Hawkeye Networks report on its U.S. tax return? Assume Hawkeye will take foreign tax credits for foreign taxes paid rather than deducting foreign taxes.  

Dynasty Electrical Engineering Company Limited has developed a new Voltage Regulator to cut down electric power consumption in production plants in the country by 30%. This they believe is cheaper, more reliable and efficient compared to that of competitors.
The Group CEO, Mr. Adams wanting to capture the market, hastily put together a 120-page proposal to the five major production firms in the country recommending their new Voltage Regulators to be installed.
The first 85 pages of his proposal concentrated on the mathematical theory and engineering design behind the product and the next 33 describes an assembly plant he is planning to construct for mass production of his product.
Buried in the appendix were the test results and graphs indicating how much money these production firms would make and save. Dynasty Electrical Engineering Company Limited was denied the contract and folded up in 6 months.

Instructions
As a Business Communication expert who wants to revive the company, the following should be highlighted in your presentation to management:
1. What was the goal of the communication sent by Mr. Adams?
2. Identify any five communication errors in the proposal with reference to your knowledge in clear writing, presentation and report writing.
3. What do you think were the costs/losses incurred by Dynasty Electrical Engineering Limited? Explain any five
4. In your view, discuss any five possible solutions or strategies that would address this problem whiles serving to revive this company.

You are the audit senior responsible for the audit of Spectrum Ltd for the year ended 30 June 2018. During your initial planning meeting with Justin James, the chief financial officer (CFO), he informs you of the following changes in the company’s operations.

(a) To help achieve budgeted sales for the year, Spectrum is about to introduce bonuses for sales staff. The bonuses will be an increasing percentage of the gross sales made by each salesperson above certain monthly targets.

(b) Spectrum plans to close an inefficient factory in country Tasmania before the end of 2018. It is expected that the redeployment and disposal of the factory assets will not be completed until the end of

(c) the following year. However, Justin is confident that he will be able to determine reasonably accurate closure provisions.

(d) The chief executive officer (CEO), Geoff Alderton, has just returned from Italy, where he signed a contract to import a line of clothing that has become the latest fashion fad there. The company has not previously been engaged in the clothing industry.

Due to Justin’s workload, the company recently employed a treasurer, Alice Campbell. Justin is excited about the appointment, because in the three months since Alice has been with the company she has realized a small profit for the company through foreign exchange transactions in US dollars.

For each of the scenarios provided, outline how the information affects inherent risk.

TOPIC: Importance of ethical behavior for senior management

Objectives : To recognize the role of chair, CEO, executive directors and non-executive directors.

ASSIGNMENT DIRECTION & REQUIREMENT/S (Identify the ILOs to be assessed at the end of each requirement. Include the rubric or marking scheme for each item/requirement.) :

You are the Company Secretary of a large UK multinational company operating in the energy sector. Your company has operations in 25 different countries, some of which are developing economies, and it has raised debt finance, as well as equity finance, in 15 of these countries. You are aware that there have been protests from environmental lobby groups in several areas regarding oil pipelines. There have also been demonstrations about the impact of operations on local communities. Your company has an internal audit committee, an audit committee, and a reasonably well-developed system of internal control loosely structured around the Turnbull Report's recommendations. However, the board has decided that perhaps it should form a new committee, a 'risk committee', which will deal with risk management and internal control specifically. Accordingly, the board has asked you to prepare a briefing paper which summarizes the main risks facing the business at present,

1. Examine the faults which were not considered while arranging the pipelines?

2. Analyze the internal and external risk as those are important to the business, and highlight where the primary exposures are likely to be?

This is all information available

From Dunkin Donuts to Just Dunkin! The famous American Donut’s brand is rebranding and closing stores across the world including Oman as its outlets have shut down for good. The demand for donuts in America is decreasing as customers preferring more healthy food with less sugar and fat.

The company’s brand CEO Mr. David Hoffmann said, “the rebranding comes as an effort to reshape the company’s strategic goals and focusing on drinks more than donuts.” While analyzing the company’s different products, the managers noticed that 60% of its revenue is coming from drinks like coffee while demand for donuts is declining.

The company redesigned its brand, and its stores making them look simpler. The company is also introducing new coffee experiences like nitro, cold brew, black...etc. The company will also introduce digital menu and drive through to fit the customers on the go lifestyle. The company will also reduce its employees as the new digital menus will eliminate the need of human employees, reducing the company’s costs.

Questions:

1. Develop Integrated Marketing Communication for the new brand “Dunkin” . (250 words)
2. Do you agree or disagree with the company’s rebranding strategy? Support your opinion based on your knowledge of the factors influencing the buyer behavior. (250 words)
3. Discuss the role technology plays in Dunkin donuts new strategy. (250 words)

>> IKEA

IKEA was founded in 1943 by a 17-year-old Swede named Ingvar Kamprad who sold pens, Christmas cards, and seeds out of a shed on his family’s farm. The name IKEA was derived from Kamprad’s initials (IK) and the first letters of the Elmtaryd farm and the village of Agunnaryd where he grew up (EA). Over the years, the company grew into

a retail titan in home furnishings and a global cultural phe- nomenon, inspiring BusinessWeek to call it a “one-stop sanctuary for coolness” and “the quintessential cult brand.”

IKEA inspires remarkable levels of interest and devo- tion from its customers. Each year more than 650 million visitors walk through its stores all over the world. Most need to drive 50 miles round-trip but happily make the effort in order to experience IKEA’s unique value proposi- tion: leading-edge design and functional home furnish- ings at extremely low prices

IKEA’s Scandinavian-designed products are well made and appeal to the masses. To stay relevant and fashionable, the company replaces approximately one- third of its product lines each year. Most have Swedish names, such as HEKTAR lamps, BILLY bookcases, and LACK side tables. Kamprad, who was dyslexic, believed it was easier to remember product names rather than codes or numbers.

Besides featuring fashionable and good-quality prod- ucts, IKEA stands out in the industry because of its bar- gain prices. The company’s vision is and always has been “to create a better everyday life for the many people.” As Kamprad said, “People have very thin wallets. We should take care of their interests.” A high percentage of its cus- tomers are college students and families with children.

IKEA continuously seeks out new ways to run its businesses more efficiently and pass those cost savings on to the customer. In fact, it reduces prices across its products by 1 percent to 3 percent annually. How can it do so? For starters, IKEA engages the consumer on many levels, including having the customer do all the shopping, shipping, and assembly.

IKEA’s floor plan is designed in a winding, one- way format featuring different inspirational room settings, so consumers experience the entire store. Next, they can grab a shopping cart, pay for the items, visit the warehouse, and pick up their purchases in flat boxes. Consumers load the items in their car, take them home, and completely assemble the products themselves. This strategy makes storage and transportation easier and cheaper for the store.

IKEA has also implemented several company-wide strategies to keep operational costs low. The company buys in bulk, controls the supply chain, uses lighter pack- aging materials, and saves on electricity through solar panels, low-wattage light bulbs, and energy from its own wind farms in six different countries. Its stores are located a good distance from most city centers, which helps keep land costs down and taxes low.

When IKEA develops new products, its designers and product developers start with a low price tag first and then work with one of their 1,350 suppliers around the world to develop the product within that price range. Designs are efficient, and waste is kept to a minimum. Most stores resemble a large box with few windows and doors and are painted bright yellow and blue—Sweden’s national colors.

Many of IKEA’s products are sold uniformly through- out the world, but the company also caters to local and regional tastes. For example, stores in China stock specific items for each New Year. During the Chinese Year of the Rooster, IKEA stocked 250,000 plastic place- mats with rooster themes, which quickly sold out. When employees realized U.S. shoppers were buying vases as drinking glasses because they considered IKEA’s regular glasses too small, the company developed larger glasses for the U.S. market. After IKEA managers vis- ited European and U.S. consumers in their homes, they learned that Europeans generally hang their clothes, whereas U.S. shoppers prefer to store them folded. As a result, IKEA designed wardrobes for the U.S. market with deeper drawers.

Showrooms in each country or region vary as well. For example, managers learned that many U.S. con- sumers thought IKEA sold only European-size beds. Beds are very important to U.S. consumers, so IKEA quickly changed its U.S. showrooms to feature king beds and a wide range of styles. After visiting Hispanic households in California, IKEA added more seating and dining space to its California stores, as well as brighter color palettes and more picture frames on the show- room walls. In China, IKEA set up its showrooms in small spaces to accurately reflect the small size of apartments in that country.

As the company expands globally, it is learning that attitudes towards its core DIY (do it yourself) delivery and assembly business model vary. In China, for ex- ample, consumers do not want to assemble products themselves and will pay a significant amount for home delivery and assembly. As a result, IKEA has added these services, and sales in Asia have taken off. The company plans to implement the same strategy in India, where DIY is also less common.

IKEA is known for its quirky marketing campaigns, which help generate excitement and awareness of its stores and brand. It ran a campaign inviting customers to be the “Ambassador of Kul” (Swedish for “fun”), but in order to collect the prize, the contestants had to live in an IKEA store for three full days before it opened, which they happily did.

Thousands of people will line up for a chance to win prizes and IKEA furniture. In Sweden, IKEA launched a Facebook page for the manager of a new store. Anyone who could tag his or her name to an IKEA product on the profile page won that item. The promotion generated thousands of tags.

IKEA has evolved into the largest furniture retailer in the world, with approximately 350 stores in 43 countries and revenues topping €27.9 billion, or $36 billion, in 2013. The majority of sales still come from Europe, but the company has aggressive plans to expand the $11 bil- lion brand further into Asia, India, and the United States.

1. Write the position statement for IKEA? Write the purchase of parity ? write the Write the purchase of parity ?
2. Into which consumer product classification dose the IKEA belongs to and write the implication 4ps marketing strategy?
3. What is the branding strategy of IKEA ? what is the product line ?
4. Write five product level ?
5. Which pricing strategy is appropriate for this case ?
6. Draw and explain the channel flow and which distribution strategy is used?
7. Develop a promotional campaign steps in developing effective communication ?