Essays on Specific Economic Trends and Conditions Assignment

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The paper "Specific Economic Trends and Conditions" is a perfect example of a finance and accounting assignment. The current condition of the economy is not very good because, given the report from the financial information of cloud 9 Pty Ltd, the company projects to make losses in the incumbent financial year. Is the business affected by developments in other countries, foreign currency fluctuations or other global forces? The business is affected by developments in other countries such as foreign currency fluctuations and other global forces because its parent company has subsidiaries in several countries, which are KU, GERMANY, Canada, China and Brazil.

This means that the company has international transactions which are subject to the constant fluctuation of the global financial market. If the industry is labour intensive, are there unusual or unique labour relations issues? Though the company is labour-intensive, there are no incidences of labor relations issues that are out of the normal expected performance from the employees. How do the company’ s growth and overall financial performance compare with the industry and what are the reasons for any significant differences? Compared to the rest of the industry, the company’ s growth and overall financial performance are above average.

This is because its other competitor like Nike traded with total revenue of between $20,000,000 and $27,000,000against Cloud 9’ s revenue of between $32,000,000 and $34,000,000. However, in terms of profitability, the company is doing below its competitors in the global market, considering its $1.4 million profit against Nike’ s 2.5 million. What are the volume and the type of transactions in the business? The volume of transactions in the business is expected to increase by 3% of the total company net worth and the transaction types for … … … … … … … … Are the client’ s operations centralized or decentralized? The client’ s operations are decentralized with an independent financial department, which is not controlled by the central management team. Is the client’ s business cyclical in nature or influenced by seasonal fluctuations in the market? The business is cyclical in nature and is not greatly affected by fluctuations in the global financial market, except slightly.

This is because the company uses purchases its goods on Free on Board terms once they are shipped, thus, taking immediate ownership of the goods as soon as the international courier accepts delivery.

This and other factors make the company more dependent on its internal system, rather than the external environment, to ensure that it has a cyclic performance. What is the susceptibility to fraud/theft? (Is the product something that can be stolen and has a sale market? ) The susceptibility to fraud and theft is very high for the product because it has a ready sale market, which is why there were reports of thefts from the stores in Sydney. COMPETITIVE ENVIRONMENT What products does the client sell, and have there been significant changes with respect to: Major products or brands? Selling strategies? Sales/gross margin by-product? The client sells basketball shoes and in the recent past, there have been a couple of major changes in respect to major brands, such as the introduction of Heavenly 456, which is a walking shoe introduced in 2009.

The selling strategy was also changed significantly in 2011 when the company agreed to sponsor Queensland Thunder and when the company signed Kevin McDonald as a spokesman for the brand. The gross margin by-products have not changed significantly, neither has the sales margin.

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