Finance and Operations Business Report

Topics: Foreign exchange market, International trade, Finance Pages: 3 (1070 words) Published: May 16, 2013
Executive Summary
Orange is a global telecommunications company operating out of Australia. With the modern day business world rapidly growing, there is a greater emphasis on globalisation and conforming to the global market. Orange are in the process of researching the effectiveness in relocating business operations from Australia to Vietnam. Many global operational and financial strategies result in a business change such as this. Operations strategies such as global sourcing and economies of scale are an effective implementation into a business looking to expand operations globally. As well as financial strategies that pose with a global movement such as, interest rates and exchange rates. There are many options that global telecommunications business Orange, are in need of considering when expanding in global operations and into the global market. 1.1 Global Sourcing

Global Sourcing refers to businesses purchasing supplies or services without being constrained by location. Many advantages and disadvantages arise surrounding global sourcing throughout the world of global businesses. Outsourcing operations globally can reap many benefits for a business including many cost advantages, as well as a greater access to new technologies, advantages of expertise and specialised labour and the ability to operate over extended hours. These benefits coincide with the various disadvantages that global sourcing can pose on a business. These may include: increased costs of logistics, storage and distribution and the control that the business primarily loses when expanding operations to an international firm. There are also many financial risk associated which are most commonly found within exchange rate fluctuations which can both positively and negatively affect the business. Due to these various factors it would be appropriate for a business such as Orange expanding into global business, to implement an effective monitoring strategy, in order to maintain and...
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