Financial analysis Essay Example | Topics and Well Written Essays - 1000 words

Financial analysis - Essay Example The startup of the whole food market venture in Canada will involve different foods supermarket chains that specialize in both the organic foods and natural foods. This venture aims at expanding in to the global markets within three years. The Canadian whole food will generally operate in the Canadian markets in one segment thus the organic foods supermarkets and the natural foods supermarket. The venture will operate in different stores across the Canada markets. The stores will be averagely 38,000 square feet depending with the location of the venture (Petusevsky, 2002). The venture will not be limited to grocery, produce and floral, bakery, coffee, tea, nutritional supplements, prepared foods and catering, whole fields and whole family of brands (Petusevsky, 2002). Opening the business venture in Canada will most definitely be a challenging prospect with issues ranging to exchange risks and settling in the new market ventures. In most cases, issues to do with financial risks tend to affect the business if not well taken care of (Rush, 2012). Foreign exchange risks in this case will exist when the financial transaction will be denominated in the currency, which is not part of the base currency, and in this case, the business venture. Alternatively, the foreign exchange risk will exist when the foreign lesser of the global venture maintains financial statements that is in the currency which is not part of the reporting currency and in this case the consolidated entity. For the case of the Canada whole foods venture, which operates abroad, there is high possibility that it would lose too much money even if the global venture is not prepared to crystalize its assets. Some of the common types of challenges that would most likely affect the venture due to foreign exchange risk include; translation exposure, economic exposure, and transaction exposure (Rush, 2012). Dealing