Acme Company MBA Case Study Assignment Assistance
Acme Company MBA Case Study Assignment Assistance has many branches in South America as well as in Asia. It can select services from three different banks to manage its working capital. The bank will be chosen by the company, the bank will be the best provider of various services which can benefit the company (Acme Company 2012). The selected international bank will be able to provide various services like cash management, centralization of bills to pay in local services and other currencies. Foreign currency. There are three options for selecting a bank for the company. Bank of America, Citibank and HSBC Bank are the selected banks. One of these international banks will be selected to avail the ACME and the need for services. Experts in our best business school assignment of all three helped HSBC Bank to provide services to the Acme Company.
Profile of HSBC Bank
HSBC is known as the second largest financial service provider in the world. According to the company’s property, it is the fourth leading bank in the world, which is $ 2,348.98 billion. It is the second largest in terms of sales, which is estimated to be $ 146.50 billion. In addition, HSBC is measured with the net income of the most profitable bank in the world, $ 19.13 billion (HSBC 2012). Apart from this MBA Case Study Assignment Help, HSBC Especially in Asia and Latin America there is global financial presence. Along with this, it also provides automated transactions and international wire transfer facilities in approximately 35 currencies. In addition, HSBC has a large collection of services that enables customers to receive all payments from time to time.
Services Offered By Bank
Cash management is an essential part of working capital management for Acme Company, because with its help, the company can manage enough cash for its business operations and transactions (Law, 2011). Apart from this, the company can also avoid the problem of cash shortage through cash management. In this way, the extra cash should be invested more profitable, so that when the company is in need, then the company is available. HSBC Bank is selected for Acme Company, as it provides different specific financial services as compared to bank of America and City bank such as: management of liquidity for international corporations, management of payables and receivables (Green, 2010).
For example, recent cash management facilities provided by HSBC Bank can influence effective working capital management and can improve the company’s order-to-cash cycle (Hailer and Nicholas, 2006). In contrast, cash management services provided by both US and Citibank banks can not effectively improve order-to-cash cycle (Bank of America 2012).At the same time, it should also be noted down that this bank will also offer different services to the company regarding the receivables management processing. Hence, with the help of this service, company can improve efficiency and Effectiveness of collection cycle On the other hand, America and City Bank will not be able to handle bank receivable management (Citibank 2012). In this way, these banks cannot provide the efficiency of the company’s collection. In addition, HSBC Bank will enable Amazon to accelerate the collection, recession distribution, and therefore maximize the Net Float. These are the specific services or facilities provided by HSBC. In addition, this bank will help the company in cash transfer as soon as possible (Grays & Pellegrino, 2006).
Acme Company MBA Case Study Assignment Assistance
On the other hand, our Acme Company Analysis Assignment support specialists said that the most important aspect in the selection of HSBC Bank is the ability to transfer money from the country and ensures that it provides the facility of Foreign Currency Exchange (HSBC 2012) for the company. In contrast, Bank of America and Citibank can transfer money from one country to another, but not easily. In this way, HSBC enables the Acme Company to combine all its banking relationships and operations in different countries for easy control of cash flow. In addition, it is also noted that HSBC Bank also provides payment advisory services which enables payers of Acme International to send and advise the beneficiary with payment instructions.
According to the perceptions of Acme, the company will be subsidiary companies in South America and Asia who gather for import material and parts and export. In this situation, HSBC will be able to finance the cash conversion cycle and its transaction to the bank company until it pays the account payable until its sale (Live, 2011). In addition, HSBC is also located in many parts of Asia compared to the Bank of America and Citibank Bank. For facilitating its cash management and working capital, which will enable the Amen Company to centralize cash management (Grilse and Pellegrino, 2006).
HSBC will also help the company in reducing credit risk, because through HSBC, exporters can purchase export credit insurance. The insurer will be committed to paying the company in case of the importer’s defaults. Through this, the firm is assured of centralized management of its cash. Similarly, Bank of America and Citibank can provide both types of facilities (Heeler and Nicholas, 2006). Apart from this, HSBC’s centralized cash management system, which will help the ACM Company to capture the transaction and make extensive distribution over time. Information about the company’s cash position. This is possible because HSBC Bank’s global computer platform and almost universal presence (HSBC 2012).
HSBC can also provide a local debt source for operating cash compared to the other two banks for Acme Company, because, if appropriate, to increase its investment business using home products, this bank has its own investment management division Is (Law, 2011). It is enabled by HSBC’s new global borrowing solutions, which are specializing in the development of full-class products and services for local credit. So with help HSBC Bank’s Acme Company will utilize the in-house investment capabilities of banks to fulfill their short-term investment vehicles for their extra cash balance, but both the US and Citibank banks have their own investment management division (Green, 2010) .
It is also analyzed that the selected bank will facilitate the company to effectively fulfill its foreign exchange services. For example, the bank will negotiate with the foreign and domestic markets individually due to its leadership position in the country (Dale and Burro, 2007). In addition, HSBC Bank has the capability of global infrastructure to provide a wide range of foreign exchange services. Apart from this, the bank has a technical platform Which will help the company with risk assessment and risk management based on their outreach and participation in global markets. Consequently, Acme Company will be able to pay its bill in both local and other currencies through the bank (Grays and Pellegrino, 2006).
From the above conversation, it is concluded that to explore the strategic options, HSBC bank should be selected by Acme, as this bank can provide some specific financial services or facilities to the company to manage its working capital. In addition, HSBC bank can provide a variety of working capital and multinational cash management services to the company effectively in comparison to bank of America and City bank. In addition, the company can manage their international working capital management requirements with the help of HSBC effectively.
Acme Company (2012). Retrieved from http://theacmecompany.com/
Bank of America (2012). Retrieved from https://www.bankofamerica.com/
City Bank. (2012). Retrieved from http://www.citigroup.com/citi/
Dolly, L.R. & Borough, JL (2007). Trade finance USA: Senesce Learning
Grace, W. And Pellegrino, M. (2006). Corporate governance in institutions offering Islamic financial services: issues and options. USA: World Bank Publications.
Green, G. (2010). Good value: Reflection on money, ethics and uncertain world. USA: Grove Press.
Hailer, R. And Nicholas, M. (2006). Six Sigma for Financial Services: How Leading Companies Are Driving Using Lean, Six Sigma and Process Management USA: McGraw-Hill Professional?
HSBC (2012). Retrieved from http://www.hsbc.co.in/1/2/homepage
Live, Katie. (2011). Business of Investment Banking: A comprehensive overview. USA: John Wiley & Sons