FTDipFM11
Module
International Finance
Assignment
Individual
Submission date
FT on 13th lesson; PT on 7th lesson
Word limit
1000 to 1200 words
Weightage
30%
Assignment Format
1. Write your name and student identification number clearly on the cover page using the ASSIGNMENT COVER SHEET FORM.
2. Your assignment must be TYPE-WRITTEN.
3. Spacing 1.5 with font size 12 using Arial script and justified.
4. Include page number.
5. Include a Reference Page at the end of your assignment.
Blades. Inc, is a U.S. based company that has been incorporated in the United States for 3 years. Blades is a relatively small company, with total assets of only $200 million. The company produces a singly type of product, roller blades. Due to the booming roller blade market in the United States at the time of the company's establishment. Blades has been quite successful. For example, in tis first year of operation, it reported a net income of $3.5 million. Recently, however, the demand for Blades' "Speedos," the company's primary product in the United States, has been slowing tapering off, and Blades has not been performing well. Last year, it reported a return on assets of only 7%. In response to the company's annual report for its most recent year of operations, Blades' shareholders have been pressuring the company to improve its performance; its stock price has fallen from a high of $20 per share 3 years ago to $12 last year. Blades produces high-quality roller blades and employs a unique production process, but the prices it charges are among the top 5% in the industry.
In light of these circumstances, Ben Holt, the company's chief financial officer (CFO), is contemplating his alternatives for Blades' future. There are no other cost-cutting measures that Blades can implement in the United States without affecting the quality of its product. Also, production of alternative products would require major modifications to the existing plant setup.