Assessment of risk and costs

, legal and economic risksrisk arises from the storage assets in another country and is linked to political, legal, economic changes and problems of control, as well as cultural and linguistic characteristics and geographical location. Country risk is relatively small in England. But do not forget that the concentration of its resources in only one market, increases its exposure to country risk.belongs to the minor political risk. Primarily a political risk include a variety of political crises and scandals, strikes and mass unrest, natural disasters and man-made disasters, military actions, the sovereign status of the country, changing the existing regime of sanctions and the international community. The political situation in the country for quite some time has been and remains stable. (Kevin, 2009)law include the risks associated with changes in legislation and intergovernmental agreements in the field of taxation, separation of products, tariff and non-tariff protectionism, tariffs, etc. The probability of tax changes is high, so they constitute the main source of risk. The rest of the UK legal regime is fairly stable and not prone to significant changes in that virtually eliminates the influence of these risks of doing business. Clarity and certainty to the UK legal system also minimizes the possibility of manifestation of the risks involved. (Michel Henry, 2003)group of economic risks include changes in the level of interest rates and inflation, they also are due to the interconnectedness of the economic systems of different countries. There are two main effects of the economic risk for the company in the event of adverse exchange rate changes:

■ reduction of profit on future transactions. This is called the direct economic risk;

■ loss of a certain part of the price competitiveness compared to foreign producers. This economic risk is indirect. (Meldrum, 2010)example, a coffee house located in the UK feels the constant need for supplies of coffee, which is estimated in U.S. dollars. The growth of the dollar will increase the cost of coffee in pounds sterling, which will increase the price of gold to drink in the future.indirect economic risk is costly changes and price competitiveness caused by the movement of exchange rates.firms may work abroad, achieving high sales volumes, increasing revenue and reducing operating costs by increasing production. This will enable them to improve their position in competition with firms that do not have to go beyond the boundary.the British economy is out of the protracted crisis, the economy is barely creeping up very slowly. The recession lasted one and a half years and was the most protracted and deepest since the mid-1940s (when the volume of national output declined in the aftermath of World War II)., the decline in GDP by 4.8% last year was the deepest since 1931, when production in the country dropped to 5.1%. British recession was the longest among the economies of the "Big Seven" who were in critical condition in an average of one year (however, in Italy, the recession lasted for five quarters). In fact, it was not the worst, if we evaluate the difference between the pre-crisis peak, and reached bottom. Here dubious "palm" keep Japan (8.6%), followed by Germany (6.7%) and Italy (6.5%). However, the earlier recovery of these economies means that in terms of decline in production - by 6.0% between 2008 and the beginning of the third quarter of 2009 - Britain surpassed only by Japan (7.7%) (UK National Statistics, 2012)to business research, market conditions, recovery is more confident, and labor market showed greater resistance than expected.in the UK continues to grow. In 2009 it was 2.9% in 2010 - 3.7%. In 2011 - 4.4%. Inflation in the UK is likely to slow during 2012 to 2%, according to a quarterly report to the Bank of England inflation. At the same time, the British central bank believes that the timing and extent of decline is uncertain. (UK National Statistics, 2012)will depend on the evolution of world prices, the degree of increase in inflation expectations, after a period of high inflation and how much the company will seek to restore profitability.also include raising the base interest rate the Bank of England from the current level of 0.5% per annum to 1% by 2011 and to 2% by the end of 2012.

minimum wage in the UK is £ 6 per hour. In the same month it will be equal to 1014.12 pounds. (National Minimum Wage, 2012)the past decade, coffee prices have reached "peak" mark because of the threat reduction in harvest due to drought in Brazil and Vietnam, is the largest supplier and producer of coffee in the world. According to the International Organization for coffee producers weather conditions significantly affect the amount of coffee crop. Thus, in recent years, the lack of rains in Brazil leads to a significant reduction in the production and supply in the market, namely the production of coffee here last season fell by 23% to 32.6 million bags, which supplies around the world have fallen to 114 million bags, up almost 6% less than last year. (Free Press,2012)coffee crop and therefore the proposal is accompanied by a volume growing demand in emerging markets, which have arisen due to rising incomes and consumer marketing campaigns to promote the drink. Over the past five years the demand for coffee rose 8% in the U.S. and nearly 6% in Europe, in the UK by 35%. for India, from which it will do for raw coffee Cafe Coffee Day, according to experts, India's coffee production in the next marketing year will increase by 6.7%, the yield will reach 322 250 tons of coffee, compared with 302 000 tones last year and Café Coffee Day can import raw coffee in substantial quantity from India due to bilateral trade agreement between two countries. India being earlier British colony, UK government has soft view for India and takes interests in its development. (Free Press,2012)

choice of the finished room for coffee of course is ideal.. First, the coffee shop in central London has a higher permeability and greater clientele. In addition, there is an opportunity to increase profits by expanding the terms of the coffee - it may be also open on weekends.

£ 10,000 - weekly turnover of coffee (522 500 - annual turnover). 422 000 pounds - a possible annual profit. In view of the profit tax of 30%, a profit of 295400 pounds. we consider a draft to the hotel - the current rental income from the upper floors of £ 70,440 per month (845 280 - annual turnover) Subject to income tax at 30%, a profit of 591,696 pounds. If the proposed purchase, along with apartments, we can say that after three years the project will be repaid. addition, there is an opportunity to increase profits by expanding the terms of the coffee - it may be also open on weekends. main advantages of the British companies must include the following:

• Extensive use of British companies (as an ordinary resident, nominal holding, non-resident). is a country with stable political situation, low country and the legal risks. Britain also took 6th place in the rankings on the business. open a business, you must be sure that he will be in demand. There are currently opening coffee shops can be an excellent option for business in London. This is facilitated by the growing popularity of coffee shops in the country and especially in its capital. The advantage is the fact that the coffee surprisingly resilient in matters of size and location.

Allegra Strategies (2012), from http://www.allegrainteractive.com, accessed on January 04, 2012.è Nero (2012), from http://www.caffenero.com, accessed on January 05, 2012.& Wakefield, (2012), from http://www.cushwake.com/cwglobal/jsp/newsDetail.jsp?Country=GLOBAL&Language=EN&repId=c35700016p, accessed on January 05, 2012.& Wakefield, (2012), from http://www.cushwake.com/cwglobal/jsp/categoryDetail.jsp?categoryId=600030, accessed on January 04, 2012.by L Moutinho (2011). Strategic Management in Tourism, UK, pp. 245-267., N Campbell, D and Stonehouse, G (2003). Strategic Management for Travel and Tourism. Oxford: Butterworth-Heinemann, Chapter 15.

Free Press (2012), from http://www.freepressjournal.in/news/20001-Coffee-exports-in-2011-may-touch-record-300-000-tonnes.html, accessed on January 04, 2012.W. Lu, Gero Verheyen, Srilal Mohan Perera (2009). Investing with confidence: understanding political risk management in the 21st century, World Bank Publications, pp.167-244.H. (2010). Country Risk and Foreign Direct Investment. MONEY WATCH. COM

Michel Henry Bouchet, Ephraim Clarke, Bertrand Groslambert (2003). Country Risk Assessment: A Guide to Global Investment Strategy (The Wiley Finance Series) for Coffee (2012), from http://tutor2u.net/economics/revision-notes/as-markets-coffee.html, accessed on January 04, 2012.

McCafé Coffee (2012), from http://www.mccafecoffee.com, accessed on January 05, 2012.Minimum Wage (2012), Low Pay Commission Report 2011, from http://www.lowpay.gov.uk/lowpay/report/pdf/Revised_Report_PDF_with_April_date.pdf, accessed on January 05, 2012.Evans, David Campbell (2003). Strategic management for travel and tourism, Butterworth-Heinemann, pp. 120-144.

Olsen, M D, Tse, E C-Y and West, J (1998). Strategic Management in the Hospitality Industry (2nd edn). New York: Wiley, Chapter 3., L. Ronald (1992). Managing the risks of international lending, Routledge, London, pp. 15 -23

Starbucks Coffee Company (2012), from http://www.starbucks.com, accessed on January 07, 2012.Coffee Service (2012), from http://www.tchibo-coffeeservice.co.uk, accessed on January 05, 2012.National Statistics (2012), from www.statistics.gov.uk, accessed on January 04, 2012.

ЧТО ТАКОЕ УВЕРЕННОЕ ПОВЕДЕНИЕ В МЕЖЛИЧНОСТНЫХ ОТНОШЕНИЯХ? Исторически существует три основных модели различий, существующих между...

Конфликты в семейной жизни. Как это изменить? Редкий брак и взаимоотношения существуют без конфликтов и напряженности. Через это проходят все...

ЧТО ПРОИСХОДИТ ВО ВЗРОСЛОЙ ЖИЗНИ? Если вы все еще «неправильно» связаны с матерью, вы избегаете отделения и независимого взрослого существования...

ЧТО ПРОИСХОДИТ, КОГДА МЫ ССОРИМСЯ Не понимая различий, существующих между мужчинами и женщинами, очень легко довести дело до ссоры...

Не нашли то, что искали? Воспользуйтесь поиском гугл на сайте: