The Internal Analysis about Toll Group of Asia Essay

The Internal Analysis about Toll Group of Asia - Essay Example This study will also focus on the strength, weakness and the threats to the Toll Asia. Toll group was established in 1888 by A F Toll in Newcastle, Australia. IN 1986 the business was sold to a management led by current Managing Director Paul Little and former chairman Peter Rowsthorn and it succeeded to be listed on ASX in 1993. The company ranks 25 on Australian Stock Exchange, it has AU$ 9 billion worth of market capitalization and its annual revenue is more than AU $ 8 billion. The company has 30,000 employees in a network of 670 sites in all over Australia and in Asian region. It has the key Australian ports, railway, warehousing, road fleets and the air capacity in transport and infrastructure facilities and it has diverse customer base to catering by the best management of supply chain Toll Asia produces the renowned brands of the world; Colgate, Palmolive, Samsung, Philips, Johnson &Johnson and Yamaha. It also operates in oil and gas supply base SOPS in Singapore as well as satellite bases in Thailand and Azerbaijan to support companies busy in onshore and offshore oil and gas exploration and production. The logistic sector of Toll Asia is very important for Singapore it serves two purposes one is of industry and the other is of enabler. Logistic sector as an industry has the share of 8% in the GDP o f the company and it employees 100,000 workers. As an enable the company provides logistics outside Singapore to avoid the cost factors. Singapore offers excellent business connectivity through the strong network of business partners and investors, Toll is caters some 3,000 local and international logistics companies from the countries like US, and countries from Europe, and Asia. It brings multiplicity and classiness to their logistics capabilities, and it makes Singapore the number to attract companies from all over the world for the one-stop supply chain solutions centre for Asia. Gati (from India), PWC Logistics (from Kuwait), Cosco Logistics (from China) and CJ Global Logistics (from Korea) are taking great interest in logistic services. The Toll is the best in storage and off shoring platform getting 70% share. Moreover, it is the largest oil and gas tolls manufacture to help to soar the profit to $ 4billion in 2005. The world class infrastructure, skilled man power has helped many countries to use Singapore as the command and control centre. Strength: The integrated strategy of logistics with the smart technology to connect the services and a permanent interfacing with the consumers is the point which distinguishes Toll from others in the market place. It also provides defense logistic services. Mr. Lim Siong Guen the chairperson, Singapore Economic Development board said, "Toll's partnership with Singapore enhances our specialized logistic capabilities for the oil and gas industry. This speaks volumes of Toll's confidence in Singapore as one-stop logistics and supply chain gateway to Asia."(1) He also expressed his intention to enhance the net work of services by expanding intra Asia logistics. As Toll is operating in

Analyzing article for Derivatives Risk and Management Class Essay

Analyzing article for Derivatives Risk and Management Class - Essay Example For mothers, they might have an option to be a plain housewife or to be a working mom. For working parents with meager income, they might have an option to start a new business and leave their jobs or to continue working for a company. All of these options seem to have a thing in common: uncertainty and the need of a decision. However, decisions are not made out of thin air; they have to be carefully woven and a well thought because any wrong move would affect the success of one’s own life. The question then is how to come up with a sound decision. In business sense, there are so-called financial options that give individuals the right, not an obligation to make a business decision---usually involving capital investments. Basically, there are two types of methods. One is the traditional method, commonly used is the net present value, which solely assess the financial value of the decision therefore ignoring any economic implications. The decision involved here will be very obj ective taking into account only the discount factors, cost of capital, etc. Using this method, if the computation produces a positive net present value, the investment must be pushed through. On the contrary, the second one, which is the real options method, is a modern approach to decision making. It takes into consideration the importance of a flexible management and a dynamic working atmosphere. Thus, clearly, it does not purely focus on the financial aspect of the decision but also on its economic value. Options start to surface as they pose new opportunities. Opportunities of growth are commonly the main reason why individuals are looking out on them rather than sticking to their present condition. However, the results of these opportunities may or may not materialize in the short-run, medium-term, or long run. There are a lot of factors to be considered before considering an option hence it may take some time to come up with a final decision. First is the irreversibility of th e decision. Once a person is already at it, he/she cannot easily escape from the realms of his/her decision. Second, opportunity loss may be offset by waiting for the appropriate time to implement the action. In other words, an allowance for a delay in decision-making is provided in order to make more sound decisions. To meet these two requirements, there are these â€Å"real options† that are allows you to exercise what you want to accomplish in the future. To show a concrete example, consider a young man who recently graduated from a university with a bachelor’s degree in business administration. After finally getting out of the academe, he had in mind two options: to continue his studies in Law School or to work in the corporate world and earn money. In this case, whatever the decision is, a trade off will exist. Notice also that whatever decision he chooses, then it would be irreversible as it would mean a waste of time and money. If he goes to Law School, that mea ns he has to forego the course that he has taken up for years and enter a new realm or school of thought. Therefore, there is an opportunity cost involved here. However, there is a need to do so in order to be flexible enough to face the world waiting for him outside the academe. Financially, it would not be favorable for him to take up law because he will just be spending another years in law school both with time and