TREASURY & RISK MANAGEMENT Essay Example | Topics and Well Written Essays - 3750 words

TREASURY & RISK MANAGEMENT - Essay ExampleThe TMEMs chairman had to come up with a proposal, on how to reduce and even eliminate the losses, and present it to the attach to chief operating officer in Japan.Therefore, this case analysis will seek to fork up possible reasons that could aim forced the company to delay shifting its manufacturing centers for atomic number 63an market to Europe. Also, analysis of both the effects that could have been experienced if the Euro had united European Monetary Union and other factors on the companys situation will be provided. Next, possible problems leading to the losses being experienced by the company will be categorise into either short term or long term. The final part of analysis will provide recommendation of appropriate measures that the company should have taken to resolve the problems.There are a make out of reasons that might have forced Toyota to delay in moving its manufacturing for European sales to Europe. The most equiprob able reasons could be associated with the depreciation of Euro against major currencies, the expected costs of setting up the plant, availability of labor, anticipated risks of either losing their intellectual property as a result of theft, require for up-to-date innovations, strategic problems as swell up as feeling of being unprepared. To begin with off shoring manufacturing to Europe without a clear cerebration of plan could have resulted into two strategic problems (Wood 2009). One of the strategic problems is logistical issues. Spreading out manufacturing activities without having a good plan in place could expose the company to unexpected disruption of important supplies. Although the need to offshore manufacturing to Europe could have been appropriate in enabling the company to compete with its rivals, responding to customers needs could have been a problem (Bessis 2011).The other reason that could have resulted to a delay in shifting manufacturing to Europe