International Finance - currency Essay Example | Topics and Well Written Essays - 2250 words

International Finance - currency - Essay Example Same method is applied for obtaining the values mentioned at other places and tables elsewhere also in this paper. FOREX experts thought that the pound would begin the year 2003 on an optimistic note but unfortunately for the pound, that year also began with a downward trend against the Euro and continued till the year end. The first quarter saw the pound value against euro drip by 5.8% from 1.539429 to 1.449098. It further continued the downward journey to 1.438329 by the end of second quarter reaching its lowest of the year at 1.397857 on May 30. The decline in the second quarter was 0 .7 % and negligible when compared to the first quarter decline. On the whole, the pound dripped by 6.56 % during the first half of the year which had seen the euro rise against the pound from 0.649591to 0.695251. The following table and the subsequent graph show the decline of the pound against the Euro as explained earlier in the first half of the year 2003. The European Central Bank (ECB) has continued with a policy of consistency in bank rates boosting up the morale of the Euro in FOREX markets. In January and February, 2003, the Governing Council of ECB decided to continue with existing rates of 3.75% and 1.75 % for marginal lending and deposit facilities respectively. The minimum bid rate on main refinancing operations also continued to be at 3.75% putting at rest all the rumours. This was followed by a report, released on February 24, 2003, that claimed that the solvency levels of EU banks also continued to be even stronger. The regulatory capital ratio for EU banking system stood at 12% as against the minimum requirement of 8% in the preceding two years of 2001 and 2002, according to this report (Press release, 24 February 2003-EU Banking sector stability, The banking sector has remained stable). While these decisions helped the Euro maintain its stability and uptrend against the pound, some unfavourable trends persisted on the home ground for the latter currency adding fuel to the fire. No doubt, the British economy had recorded maximum growth rate in the third quarter of 2002 due to buoyancy in consumer spending and rising of prices while the GDP rose by 0.94 % in comparison with the previous quarter. But the inflation rate had crossed the Bank of England's (BOE) expected target of 2.5% reaching almost 2.8% in the last quarter (Released on 1/9/03 For 4 Jan 2003 ). The BOE defended the inflation rate arguing that the tendency was temporary and had its sources in the rising prices of oil and housing. With a view to reverse the inflation trend, the BOE had reduced the interest rate to 3.75 percent from 4%. This was the lowest level borrowing rate in the country since 1955 (Released on 2/6/03 For Feb 2003) and it naturally made the public and FOREX traders lose interest on the pound leading to its continuous downtrend against the Euro. The following table shows how it went down further in the second half of the year 2003. Date / Month

Leading Strategic Change and Business Strategy Case Study

Leading Strategic Change and Business Strategy - Case Study Example (2003) suggest, strategic change can move beyond merely the formulation of strategy by a consideration of the whole process from planning through to implementation. Change management does involve "managing" and thus control, but also the realization that change is often an organic process that develops in unexpected manners. Baloqun's most important idea, one that moves beyond traditional change management, is that it should move beyond the "formulaic" and "linear" process that has previously dominated the models. Context-specific analysis is an interesting variation on the normal modeling process, as it seeks to enable the manager to see that which is specific to her company rather than that which fits into the models. The change kaleidoscope involves dissecting the possible ramifications of change, while always keeping in mind the overall strategy that is in place. The manager must develop what Baloqun refers to as "change judgment": that is, the ability to understand the critical features of a specific change context. The important element here is to recognize what is and what is not possible within change implementation. A manager involved in change management first needs to be aware of what exactly is happening at the given moment within the business, and then needs to be able to extrapolate possible outcomes based upon that awareness. The first premise of planning is having as much knowledge as possible. The type of planning which is now occurring has changed radically from that envisioned in the traditional business model. As John Byrne puts it, "gone are the abstraction, sterility, and top-down arrogance of the old model." (Byrne, 1) Now managers in the most successful corporations are part of a system in which "today's gurus of strategy urge companies to democratize the process", and they do this "by handing strategic planning over to teams of line and staff managers from different disciplines." (Byrne, 1) Often young, junior managers who are noted for their creative thinking are teamed with near-retirement, senior managers who essentially have nothing to lose and so can tell it like it is. So from the most junior to the most senior manager there is a role, both for planning within their own specific area of the business, but also for constant consideration of how that may effect longer-term and more far-reaching plans. This is the democratic and enrolling type of leadership that is increasingly seen as the most successful in the modern business environment in which change is constant. Planning is perhaps the central role of all managers, because all the other functions flow from it and must always consider their relationship to it. A business without a plan has no future, and so all the other functions will be redundant. Organization within a business is essential to planning: in one sense it is one of the tools that may be used to realize a plan. Organization is divided into two basic areas: control/co-ordination of tasks, and the management of information flow within the company. Management of tasks and deciding what information needs to be collated and to whom it should go is essential for business growth, particularly for the vital task of leadership development. Organization involves investing in "human capital, the most important asset inside of organizations today." (Carter, xi) Managers, especially at the highest level, must organize the tasks of their