Identify An International Organization In Your Presentation ✓ Solved

In Your Presentationidentify An International Organization Eg Ibm

Identify an international organization (e.g., IBM, PepsiCo, Nestlé, etc.). Analyze the financial viability of the organization in the current (i.e., the last 2 to 3 years) international financial environment. Discuss the effects of instability in the foreign currency markets on your selected organization’s elements such as the supply chain, manufacturing, and production. Explain how the organization mitigates the inherent risks in international currency.

Your Analyzing the Financial Situation of an International Organization Presentation must be 10 to 12 PowerPoint slides in length (not including title and references) and formatted according to APA Style as outlined in the Ashford Writing Center’s How to Make a PowerPoint Presentation (Links to an external site.) resource.

The note section of the presentation must be utilized to explain each slide. Must include a separate title slide with the following: Title of presentation Student’s name Course name and number Instructor’s name Date submitted Must use at least three sources, one of which should be scholarly, in addition to the course The Scholarly, Peer-Reviewed, and Other Credible Sources (Links to an external site.) table offers additional guidance on appropriate source types. If you have questions about whether a specific source is appropriate for this assignment, please contact your instructor. Your instructor has the final say about the appropriateness of a specific source for a particular Must document all sources in APA Style as outlined in the Ashford Writing Must include a separate references slide that is formatted according to APA Style as outlined in the Ashford Writing Center.

Sample Paper For Above instruction

The international financial environment over the past three years has been characterized by significant volatility, primarily driven by global economic fluctuations, geopolitical tensions, and the ongoing impacts of the COVID-19 pandemic. This period has underscored the importance for multinational corporations like IBM to analyze and adapt to currency market instability, as it directly influences their operational viability, supply chain management, and strategic decision-making. This paper examines IBM's financial viability within this tumultuous environment, evaluates the impacts of foreign currency fluctuations on its operations, and explores the measures implemented by IBM to mitigate these risks.

Introduction

IBM, International Business Machines Corporation, is a global technology and consulting company headquartered in Armonk, New York. Over the last three years, IBM has navigated a complex international financial landscape marked by volatile currency markets. As a company with operations spanning more than 170 countries, IBM's financial health is intricately tied to the stability of foreign currencies, especially the Euro, Yen, and Yuan.

Financial Viability in the Current International Environment

IBM's financial stability has remained largely resilient over the recent years, despite external economic challenges. According to its annual reports, IBM reported revenues of $73.6 billion in 2021 and $57.4 billion in 2022, reflecting a strategic shift towards cloud computing and AI services. The company's diversified geographic revenue sources mitigate some risks associated with currency fluctuations, but also expose it to regional economic shifts. The company's profitability margins have shown resilience, aided by strong cash flow generation and prudent cost management strategies.

Effects of Foreign Currency Market Instability

Fluctuations in foreign currency markets affect IBM significantly, particularly in supply chain costs, manufacturing expenses, and revenue reporting. For instance, the appreciation of the US dollar diminishes the value of revenues earned abroad when translated back into USD, leading to reduced reported earnings. Simultaneously, a weaker yen or euro increases local operational costs for IBM due to inflationary pressures when importing components or services from regions with currency depreciation. These fluctuations create challenges in budgeting, financial forecasting, and strategic planning.

Impacts on Supply Chain, Manufacturing, and Production

Currency instability affects IBM's global supply chain by increasing costs and causing delays in procurement. For example, when the euro depreciates against the dollar, European suppliers experience increased costs, which IBM may pass on to consumers or absorb, thus affecting profit margins. Manufacturing operations in regions with volatile currencies face higher input costs and unpredictability in resource availability. Production schedules may need adjustments to accommodate fluctuating costs, which can delay product launches and impact customer satisfaction.

Risk Mitigation Strategies

IBM employs several strategies to mitigate foreign currency risks. The company uses financial hedging instruments like forward contracts, options, and swaps to lock in exchange rates and stabilize cash flows. These derivatives hedge against adverse movements in currency values, reducing unpredictability in revenues and expenses. Additionally, IBM adopts a regionalized operational approach, sourcing and manufacturing closer to key markets to decrease exposure to currency fluctuations. The company's financial management also emphasizes diversification across currencies and markets to spread risk.

Conclusion

IBM's ability to maintain financial viability amid global currency volatility demonstrates the effectiveness of its risk management strategies. Despite the challenges posed by fluctuating foreign exchange rates, IBM's diversified revenue streams, strategic hedging, and operational adjustments have helped secure its market position and ensure resilience. As the international financial landscape continues to evolve, sustained focus on risk mitigation and adaptive strategies will be essential for IBM's ongoing success.

References

  • IBM Annual Report 2022. (2022). IBM Corporation. https://www.ibm.com/investor
  • Cambridge University Press. (2021). Currency risk management in multinational corporations. Journal of International Business Studies.
  • Shapiro, A. C. (2020). Multinational Financial Management (12th ed.). Pearson.
  • Madura, J. (2019). International Financial Management (13th ed.). Cengage Learning.
  • Bank of International Settlements. (2022). Currency market volatility overview. https://www.bis.org/statistics
  • OECD. (2021). International commodity market outlook. OECD Publishing.
  • Chen, C. C., & Yang, C. (2020). Hedging currency risk in global firms. Journal of Financial Management.
  • European Central Bank. (2023). Euro foreign exchange reference rates. https://www.ecb.europa.eu/stats/exchange/eurofxref/html/index.en.html
  • Federal Reserve Bank. (2023). Exchange rate data. https://www.federalreserve.gov/releases/h10
  • Financial Times. (2023). Currency market analysis and outlook. https://www.ft.com/markets/currencies

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