Explore BrainMass
Share

Explore BrainMass

    The Acme Company is exploring many strategic options

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The Acme Company is exploring many strategic options. Whichever global business strategy the Acme Company eventually chooses, the firm inevitably will require the services of a bank to help manage its working capital. Many major multinational banks provide a variety of working capital and multinational cash management services.

    Here is a list of Acme's assumptions:

    It will have subsidiaries in South America and Asia that import materials and parts and assemble for export.
    It wants to centralize cash management.
    It needs local lending sources for operating cash.
    It needs short-term investment vehicles for excess cash balances.
    It needs foreign exchange and forward market services.
    It will have bills to pay in both local and other currencies.

    Using the websites of a variety of these cross-border banks (starting with the banks listed below), search out the international banks that offer multinational cash management services that combine banking with foreign exchange management. Select one bank and describe how the services it offers will take care of Acme's international working capital management requirements. Be sure to demonstrate why you believe your choice is the best alternative among the banks you investigated (i.e., compare and contrast).

    Bank of America
    HSBC
    Citibank

    © BrainMass Inc. brainmass.com October 10, 2019, 3:09 am ad1c9bdddf
    https://brainmass.com/business/international-finance/the-acme-company-is-exploring-many-strategic-options-409231

    Solution Preview

    The response addresses the queries posted in 841 words with references.
    // In this paper, we will discuss various strategic options for Acme company. This portion will shed light on several international banks, which offer cash management services to global organizations. Cash management is crucial for an organization in smoothly functioning of its business operations.//

    Introduction

    An analysis of various multinational or cross-border banks is conducted in order to select an appropriate international bank that offer multinational cash management services that combine banking with foreign exchange management to help the Acme Company to manage its working capital of its subsidiaries in South America and Asia. The Acme Company also needs services to centralize its cash management, local lending sources for operating cash in these countries, short-term investment vehicles for excess cash balances, foreign exchange and forward market services, and services to pay bills in both local and other currencies.

    Banks Examined

    International banks that were examined to analyze the best option available to the Acme company to cater its needs of managing its working capital of subsidiaries in South America and Asia includes Bank of America, HSBC, Citibank, Standard Bank, and Chase. These banks were examined because all these banks provide most of the working capital management services. By analyzing all the services provided by these banks, it is analyzed that Citibank, HSBC and Bank of America were the banks that provide most of ...

    Solution Summary

    The response addresses the queries posted in 841 words with references.

    $2.19