There are always business risk when it comes to expanding a company, especially from an international standpoint. There are many strategic risk that needs to be evaluated in order to expand the company successfully. Examining the possible risk of foreign currency exposure, basic functions of international banking/financial market, support of long term financing of operations, and assessment of opportunities that can be implemented within the company. There are risk on three dimensions of international finance, economic trends of the country, impact of globalization and monetary system. All of these situations will be discussed in this paper.
Bose Corporation continuously look for new opportunities to expand their product portfolio. In 2010, the company launched a new product for the trucking industry, Bose Ride system. The system is a suspension base, integrated custom-designed seat top. This is supposed to reduce the damaging effects of the whole body vibration (Bose Corporation Swat Analysis, 2013). October 2012, the company introduced the Wave Music System 3 which improved frequency/amplitude modulation tuner as well as displays the artiste’s name and song title. Then in November 2012, Bose launched Solo Television Sound System, a single speaker designed specifically for watching TV (Bose Corporation Swat Analysis, 2013). So the vision statement for Bose Corporation is opportunities and innovative technology to please the customers. This is good for the business market because the more products the organization puts out into the market; the more opportunities it give the corporation to maintain successfully in the market.
Looking into the possible risk of foreign currency exposure when it comes to expanding technological devices internationally will need to be evaluated. The value of investments are significantly impacted by the global currency exchange rates. It is important for investors to consider and understand the changes of influence foreign exchange market have on the stocks. So the investors need to know the currency exposure of the company portfolio.
Bose has a strong international presence. The company makes all kind of technological devices for all the major markets in United States (US), Europe, Canada, Australia, Asia, the Central America and South America (Bose Corporation Swat Analysis, 2013). The establishment of Bose company being an internationally market is already there, and currency/transaction exposure can affect the company. Bose Corporation sells automotive systems for vehicle manufacturers, professional audio products for musicians, noise reduction products for pilots, material testing instruments for universities and products for homebuilding and remodeling. The organization is diverse in their products and selling them outside of its home country will cause currency exposure.
It is best to prepare a strategic plan for currency exposure of Bose products, due to the transactions risk faced by...