Finance

The management of Sports Products, Inc. must be cautious and concerned with the reaction of their employees andor stockholders. The management of Sports Products, Inc. must work towards a goal of striking a balance between earning profits and having adequate beneficial corporate governance. A corporation whether it be stock or non-stock must never forget about the duties that it has both to its stockholders and to the society in general. The management has been elected or chosen by their stockholders based on the trust and capability that the latter perceives in them. Thus, these managers or officers must meet these expectations and work towards achieving the goal of bringing in profits to the company while being mindful of the ethical considerations that they have to comply with.
The firm appears to have an agency problem. This is for the reason that the employees and stockholders are having doubts about the objectives of their officers. The employees are entertaining suspicions of possible conflict of interests between the managers and the stockholders. The managers are occupying a position of trust and they have both a duty and an obligation to make sure that they are not working for their own advantage. The managers have a responsibility to its people. It is very perilous to the stability of the company if the investors or the stockholders would begin to entertain thoughts about their officers or managers being unfaithful. This might result to a possible slump in the prices of stock.
The expense being spent on pollution control is in the best interest of the company despite the seemingly adverse effects that it has because if these would not be given attention to, there would be bigger problems later on. There might be charges filed against the company for failure to accede to environmental compliance laws which would necessitate expenses for costs of litigation. If there would be victims later on who would be affected by the pollution that the company brings, this would also amount to further expenses on their part. Thus, even if there is a bad effect on profits, this is nothing compared to the long term problem that pollution might pose in the future. It would be best to prevent the problem at an early stage than to try to solve it when pollution issues gets out of control.
No, the firm does not have an effective corporate governance structure. For one, it seems that the stockholders are at a disadvantage in this scenario. There has been no distribution of dividends for the past 20 years without offering any explanation for this action. Although the right to declare dividends rests solely on the discretion of the directors, this authority cannot be abused by them. There must be adequate steps taken to ensure that the interests of the stockholders are protected above the interests of those who have control of their investments. The management of a corporation must be mindful of the position that they occupy and their actions must not be questionable or doubtful. The managers do not have an effective leadership style which might jeopardize the company.
The firm must address the issues raised by the employees. The managers must call a meeting in order to apprise the stockholders and employees as to what is really going on in the company. There must be transparency as to matters of which the stockholders have the right to know. It would be best if the officers of the corporation would be given access to the financials of the corporation to gauge the real status of its investments. If it would be impossible to meet these stockholders then there should at least be a memorandum or letter given to them to inform them of the real situation of the corporation.

By definition, Multinational entities (MNEs) are entities that produce in more then one country. This normally involves a direct presence in a country outside the country of origin which may take the shape of either a subsidiary or a joint venture. HSBC is an example of a multinational corporation with headquarters in London and Hong Kong and a presence in over 85 countries with 9500 offices providing financial services to a wide spectrum of clients in Europe, the Asia Pacific Region, and the Middle East  Africa.

The vast nature of global operations with a local focus in the financial services industry makes it necessary for this company to have a strong local as well as central treasury function as the same is required to
Local Cash Management Needs Banks are always dealing in cash and hence the treasury function has to be alert on how everyday requirements on the asset and liability side can be met, that is, asset and liability mismatches do not occur in the short and long term. This also has implications for the statutory requirements on Cash Reserve Requirement (CRR) and Statutory Liquid Reserve (SLR) in the different economies that HSBC operates in as the local treasury function in each country has to ensure compliance with relevant regulatory requirements on these and other requirements on deposits that the respective central bank may impose. Failure to meet these requirements leads to penalization while an asset liability mismatch can cause a severe dent in profitability and reputation (BPP, 2009). 
Liquidity Management From a local and international perspective, respective treasuries of the group will have to collude to ensure that liquidity concerns within the group are addressed. Often we see that different economies will have varying levels of liquidity and investment opportunities. The trick from a group perspective is to use excess liquidity where available and invest in opportunities wherever they might be. This ultimately leads to value creation (FTC, 2007).
Exchange Rate Risk Management The treasury function, by nature of the operating core of the business, is heavily involved in mitigating transaction exposure for clients and for the company itself when intra group transactions take place for example, when remitting dividends back to head office or head office grants being received. Similarly, regional treasury functions, for example of HSBC Middle East, are looking at mitigating the effect of potential translation exposure through hedging derivatives. These risk management exercises ensure that value of the business is preserved and that uncertainty is removed in own and client transactions. (Schweser, 2009).
Interest Rate Risk Management  Treasuries also act as signals to the business generation function of a bank on a local as well a central level on the deposit intake that should be undertaken and the cost that should accompany the deposit given the opportunities for higher spread lending to corporate, SME and consumer clients and the expectations from the treasury function to place any excess funds in money market instruments. At the same time, adverse interest rate movement coverage may be sought by the local treasury to cover any exposure to interest volatility on funds borrowed from other members of the group treasury or from head office  or even from clients through investing appropriately and seeking out coverage where necessary to preserve value and reduce uncertainty (CFA Institute, 2008).

In essence, for HSBC to be a successful enterprise, a good treasury function will be required to adequately manage cash that is generated each day across 86 countries with a local cash management and regulatory focus as well as and a group liquidity focus. At the same time, exchange rate risk management and interest rate risk management on every level of the treasury function preserves value for clients and the company itself. Essentially, the treasury function is the back bone of any Bank and when you talk about a bank the size of HSBC, the role of the treasury function in managing hundreds of billions of dollars of cash in different currencies and in different regulatory and market environments, not to mention the ease or lack of it by which funds can invested  divested locally or internationally is in essence a formidable task on which the smooth operation, value preservation and value creation of the whole bank is dependent.

The initiative in creating change has always been an integral aspect of man. Equipped with their relative skills and competencies, they engage in various efforts to create opportunities that will improve their capabilities and cater to the service of individuals. Amidst the trials and difficulties in the process, hard work and determination remains to be a vital factor in attaining their desired objectives and purpose in life.  It is with this mindset, that I begin this three year career development plan.
I have recognized that the economic problems that are plaguing the world economy at the present are numerous to say the least.  Since the collapse of the Housing market, economies around the world have experienced what some have come to call an economic recession.  While it remains to be seen if the global market is really undergoing a recession at this point in time, this situation can be used as a great opportunity for anyone looking to establish an excellent career in finance to take advantage of.
In the short term, I see myself gaining valuable experience from the top firms in Europe.  I feel that joining a global investment bank in Londons Financial District as a financial analyst will allow me to acquire experience in the assessment of capital budgeting projects, mergers and acquisitions, and the methods by which firms raise capital, as well as gaining cross-cultural experience.  I understand that the lessons I can gain here will provide me with an edge in the ever competitive international finance market.
Eventually, I envision setting up my own consultancy firm, specializing in international trade.  With the shaky economic developments in Dubai, it becomes important for anyone to become an expert in this field to not only have that cross-cultural perspective but also a keen understanding of financial markets.  This is why I have realized that in order to be prepared for this advanced education in my area of specialization I require the training and expertise that your fine academic institution can impart.