Analysis Of Arctic S. A.
I. Presentation of the Company
Short History Arctic S.A. is the largest Romanian household appliances producer and one of the largest refrigerators producer in Europe. It is the leader on the local home appliance market, with a market share of over 35%. At the same time, Arctic is also the largest manufacturer of household appliances with his Factory at Gaesti which has the capacity to produce anually over 25 million refrigerators. Arctic was founded in 1968 in Găeşti by the former Communist Regime. The company was privatized in 1997 when the majority share package was taken over by the European Bank for Reconstruction and Development and Groupe Societe Generale with some of the shares being listed on the Bucharest Stock Exchange. In 2002, the company was acquired by the Arçelik group, based in Turkey, which produces and distributes large and small electronics, electronics …show more content…
The currency rate risks means that the economic benefits of the company may decrease due to changes in the exchange rate of an individual currency. The main export currency of Arctic is Euro since most of its exports are to the major European Countries and such the company is exposed to possible fluctuations of the Euro.
Operational Risks The most important list of risks regarding the household appliances industries are the operational risks. It is the most exposed part of the industry to different types of failures and it requires a great deal of risk planning in order to avoid them. Internal Fraud refers to losses due to employee actions intended to misappropriate property or circumvent regulations or company policy. In the case of Arctic who boasts over 3,000 employees proper training of the personnel and a good regulatory system is required to be in place in order to prevent
Short History Arctic S.A. is the largest Romanian household appliances producer and one of the largest refrigerators producer in Europe. It is the leader on the local home appliance market, with a market share of over 35%. At the same time, Arctic is also the largest manufacturer of household appliances with his Factory at Gaesti which has the capacity to produce anually over 25 million refrigerators. Arctic was founded in 1968 in Găeşti by the former Communist Regime. The company was privatized in 1997 when the majority share package was taken over by the European Bank for Reconstruction and Development and Groupe Societe Generale with some of the shares being listed on the Bucharest Stock Exchange. In 2002, the company was acquired by the Arçelik group, based in Turkey, which produces and distributes large and small electronics, electronics …show more content…
The currency rate risks means that the economic benefits of the company may decrease due to changes in the exchange rate of an individual currency. The main export currency of Arctic is Euro since most of its exports are to the major European Countries and such the company is exposed to possible fluctuations of the Euro.
Operational Risks The most important list of risks regarding the household appliances industries are the operational risks. It is the most exposed part of the industry to different types of failures and it requires a great deal of risk planning in order to avoid them. Internal Fraud refers to losses due to employee actions intended to misappropriate property or circumvent regulations or company policy. In the case of Arctic who boasts over 3,000 employees proper training of the personnel and a good regulatory system is required to be in place in order to prevent