Case Analysis of Alliance Design Concepts - Essay Example

The company maintains a competitive age over other firms that deal with similar services by offering quality products and maintaining a strong relationship with its customers.

The two primary types of services provided by the company include the installation of video system solutions and live production services that entailed the provision of audio and video equipment for live performances. Problems since the company used to deal with more than one currency, then the exchange rate proved to be a challenge. Foreign currency rates are never constant; they fluctuate daily due to the interaction of a variety of elements that are beyond the scope of this case analysis.

Delays in ordering and payment together with exchange rate fluctuations pose a significant risk for a company like Alliance that deals with more than one currency. Although it is uncertain, it could be argued that with exchange rate could fluctuate in either direction thus providing some room for profitability. The other problem that Alliance faced was the fact that they have been in operation for only three years. Some of the company's administrative and supply chains processes, such as those for equipment procurement and generation of price quotations require improvement and formalization.

This can be attributed to the fact that they have only been in operation for quite a short period (Aleshaiway, 2005). Solutions and Alternatives1. Involve the customer can participate by modifying the price quotation process in a bid to mitigate the foreign exchange risk. This policy can be implemented in several various ways including, changing the acceptance period (30 days) and changing the required amount of deposits to be made. A stipulation saying that the final charges would be based on the exchange rate at the time of project completion and should be included in the original contract.2. Internal Process changes to add to the above strategy, a review of the internal processes related to cash management (including collection from customers and payment of suppliers), price quotations, and equipment procurement.

Although there are aspects of the overall process that are dependent on schedules and operations of others such as the completion of projects, there are small issues within that process that could bring about risk mitigation of exchange rates.3. Foreign Exchange Services The company could have a foreign exchange account with a local bank or even a foreign currency specialist such as Canadian Forex. This would enable the business to reduce service charges on frequent conversions from CAD to USD, it could also allow for the conversion and deposition of money as it is received.