Factors To Consider For Smooth Production And Service Delivery Essay.

Dock Facilities

For the purpose to enhance the productions of the firm and run production of a firm smoothly there are some factors that need to consider such as follows;

Dock Facilities: In case a business such a large number of truck dealer items or deal with heavy items it is necessary to have a dock facility. Some businesses like manufacturing need to have a separate shipping and receiving docks near the area of their location. It is necessary to locate production where these kinds of facilities are easily available or constructed. The easy availability of logistics (Netland, 2016)

Labour: For the purpose to have a smooth flow of production it is necessary to have a good labour source. In the geographic area, the firms need to have good labour so that production can run smoothly and the production can run. The much-skilled labour a firm will get the much chance of maintaining production increase.

Demography: Near the area of the production the location needs to be effective and progressive. The production area needs to be politically stable and there need to be customers available near the area of the production. Further, the competitor's position also needs to be analysed before selecting the production location (Koç, & Burhan, 2015).

Availability: It is necessary to have the access to the raw materials so that production can be completed within time and provided to customers. In case it is difficult to have the raw materials in the location of production then it will be difficult to run the production. Timely access to the raw materials will develop the production and they will get benefit from the location.  

Service is intangible and at the time of dealing with international service, many things need to analyse and manage in a manner so that the customers get adequate facilities. Human resource planning, location planning, design and capacity management all factors affect the service of the international service. Considering that capacity planning determines how many consumers the company can serve at any given time. Capacity planning does have an impact on the quality of services delivered to clients due to the sheer close customer engagement in the process of ordering (Kaza, Yao, Bhada-Tata, & Van Woerden 2018). Location planning is critical for international service operations. Most companies are obligated to be visible and accessible they intend to serve. In fact, the majority of worldwide service operations entail establishing local branches in each global market and afterwards staffing all with locals. International service infrastructures must also be properly developed in order to achieve the desired appearance and layout. When a company operates overseas, it may choose to emphasise its foreign identity or merge its home country tradition with the native culture. They also develop their service to meet their customer's needs and train the employees as per the need of an organization that is able to provide the best service experience to the target customers in the international market (Heizer, 2016).

The developed and industrialized economy has prospects and opportunities to grow. It has the competence to manage its quality of service, improve technologically and provide high-quality performance to customers. In addition, the developed and industrialized economy have the infrastructure to improve its service such as ensuring employee involvement, providing high-quality materials to maintain the high-quality service. In addition, with help of up-to-date technology, they can be able to provide the service to customers on time and efficiently enhance the value (Davis, 2016). They can use effective method that helps to improve the quality of service. Because of these elements services are highly linked with developed and industrialized economies. With help of the use of developed technology such as email, telephone, website or social media the service can be provided to customers on time. It helps them to increase the efficacy and frequency of service with the developed infrastructure. The transparency and the quality of service can be maintained that helps them to improve the quality and value. It also provides job opportunities for people worldwide with quality service. The whole work of providing the service becomes very is become of the easy availability of materials and proper link and communication system (Gereffi, & Lee, 2016).

Labour

Change in the rate of foreign exchange rate can make losses in the company balance sheet holding or translation of company, that is known as the balance sheet exposure. In case a company jas assets, equity, revenue denominated and liabilities in foreign currencies and they want to convert them back into home currency the loss may increase. Accounting rules necessitate translation when compiling consolidated financial statements. Exposure to translation is more than frequent in two scenarios. The first is when a corporation has branches in other nations, and the second is when a corporation has considerable revenues in other nations. Hedging trades can be used by these companies to lower their translation risk. Currency risk can occur in what seems to be a monetary capital gain that is actually a difference between the current worth of the assets due to exchange rate fluctuations, rather than a movement in the assets themselves (Prasad, & Suprabha 2015). Multinational companies are specifically vulnerable to translation risk since a percentage of their actions and assets will be denominated in foreign exchange. This can also impact businesses that create products or services for export, even if they do have neither any business relationships with that nation. Further, normative accounting has drawbacks, the most significant of all this is that it presents us with multiple options, all of which may be accurate.

At the international level, capital budgeting deals with things like international taxation,  cost of capital, international capital financing mechanisms, capital market segmentation, currency rate swings, political risk or country risk, and so on. International businesses have two capital budgeting methods:

Home Currency Technique: To calculate the net present value of an international project, the home currency approach is used, which involves converting the project's international currency cash flows to domestic currency using predicted forward exchange rates and then discounting the cash flows using the home currency cost of capital (Sz?csné Markovics, 2016). The significant difference in interest rates between the foreign currency and home currency can be used to compute forward exchange rates:

F0 = S0 * [(1+ia) / (1+ib)] t,

Where F0, S0, ia, and ib, are the forward exchange rate, Spot Exchange rate, the interest rate of the domestic country, and interest rate of foreign currency respectively.

Foreign Currency Technique: The foreign-currency net present value is calculated by discounting foreign-currency cash flows with an estimated foreign-currency cost of capital using the foreign-currency technique. The spot exchange rate is used to convert the net present value denominated in foreign currency to local currency. The NPV of the second technique should be the same as the NPV of the first technique which is the home currency technique. The indicated cost of capital is approximately equivalent to the cost of capital in home currency plus a two per cent difference in nominal interest rates, adjusted for inflation (Barjaktarovic et al., 2016).

The United Kingdom does not use the euro because of the fact that it is no longer a member of the European Union. Before its withdrawal on 31 January 2020, England, as part of the United Kingdom, was the most well-known part of the European Union to refuse to accept the euro. Rather, the Bank of England's pound sterling operated as the United Kingdom's official currency (Hatzigeorgiou & Lodefalk, 2016). When the euro was first suggested as the European Union's unified currency structure in 1997, then Chancellor of the Exchequer Gordon Brown stated that his country would have to pass "five economic tests" before embracing it, which it had not.  Another reason is that the government did not want to surrender the power of interest rate policy if the euro had been approved. However, in this case, the majority of them will accept that as a result of the United Kingdom's decision to leave the EU's single currency arrangement, Colefax and Fowler will be at a competitive disadvantage when negotiating with other European fabric and wallpaper companies. The business is in charge of currency conversion fees at the moment, but it has been able to successfully make the process easier (Dhingra et al., 2016). In the future, currency conversion fees will very certainly have to be absorbed, which will, of course, reduce profit margins.

Reference

Barjaktarovic, L., Djulic, K., Pindžo, R., & Vjetrov, A. (2016). Analysis of the capital budgeting practices: Serbian case. Management: Journal of Sustainable Business And Management Solutions In Emerging Economies, 21(79), 47-54.

Davis, N., 2016, January. What is the fourth industrial revolution. In World Economic Forum (Vol. 19).

Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on foreign investment in the UK. BREXIT 2016, 24(2), pp.1-10.

Gereffi, G., & Lee, J. (2016). Economic and social upgrading in global value chains and industrial clusters: Why governance matters. Journal of business ethics, 133(1), 25-38.

Hatzigeorgiou, A., & Lodefalk, M. (2016). The Brexit trade disruption revisited. Estey Journal of International Law and Trade Policy, 17(1753-2016-141269), 41-58.

Heizer, J. (2016). Operations management, 11/e. Pearson Education India.

Kaza, S., Yao, L., Bhada-Tata, P., & Van Woerden, F. (2018). What a waste 2.0: a global snapshot of solid waste management to 2050. World Bank Publications.

Koç, E., & Burhan, H. A. (2015). An application of analytic hierarchy process (AHP) in a real world problem of store location selection. Advances in management and applied economics, 5(1), 41.

Netland, T. H. (2016). Critical success factors for implementing lean production: the effect of contingencies. International Journal of Production Research, 54(8), 2433-2448.

Prasad, K., & Suprabha, K. R. (2015). Measurement of exchange rate exposure: Capital market approach versus cash flow approach. Procedia Economics and Finance, 25, 394-399.

Sz?csné Markovics, K. (2016). Capital budgeting methods used in some European countries and in the United States. Universal Journal of Management, 4(6), 348-360.