International Finance and Financial Crisis Case Study

International Finance and Financial Crisis - Case Study ExampleThey should everywheresee if the sources of silver have an undisrupted flow and if they are able to pay their creditors. Having a clear understanding, the society should try to tap the cash positions. In 2008, Woolworths had net cash flow of 39.2 millions in comparison to 27.1 millions in 2007. In collect contrast to it, the company had 2.2 millions of net cash flow in 2003. So, it can be said Woolworths took mandatory measures to have the increased cash flow during the time of crisis.Identify and aggressively minimise operational risks - The companies, amidst monetary crisis, should try to identify and reduce all sorts of avoidable day-to-day risks. During crisis, it is desirable that the companies follow the basics. The operations generated over 61.7 millions in 2008, a drastic increase over the previous year.Conduct rigorous scenario planning - During crisis the companies should as well take a proper stock of th e economic scenario. They should strategise on the basis of the GDP growth, currency depreciations, etcetera Woolworths Group scrapped the idea of nonrecreational interim dividend in 2008 considering the net loss it has incurred and the global meltdown.Review argumentation performance and prepare for divestitures - The c... They should strategise on the basis of the GDP growth, currency depreciations, etc. Woolworths Group scrapped the idea of paying interim dividend in 2008 considering the net loss it has incurred and the global meltdown.Review business performance and prepare for divestitures - The company, to prolong and survive the crisis, should continuously review its performance and take essential steps, as and when required. Also, the company should prepare itself for necessary divestments to increase the cash inflow. As the cash inflow was great for Woolworths, so we can say that the company took regular assessments of its business performance.Maintain the confidence of key stakeholders - Any company that wants to stay floated for long term, knows the protect of its stakeholders. Relationship with shareholders, suppliers and customers if once lost can not be regained. The revenue has increased in 2008 compared to 2007 for Woolworths Plc and likewise there are no bank overdrafts in the year. Dividend Policies, Capital Structure and the Shareholders WealthShare-holders are the aline owners of any company. And the dividend is the earning of the owner because of his stock holding on the basis of the companys pull ahead. Apart from the capital yield (which a share-holder might earn, if he sale away the share), earning of dividend is the reason of purchasing shares by the shareholder. If a company earns profit from its professional and operational activities, the instruction can either retain the profit or future investments (called retain profit or retained earning) under the head of reserve and surplus in the balance sheet or the management of t he company can distribute the profit among its