The Effectiveness of exchange rate risk management strategies on financial performance: the case of retail industry Zimbabwe
- Author
- Chitsungo, Nyaradzo
- Title
- The Effectiveness of exchange rate risk management strategies on financial performance: the case of retail industry Zimbabwe
- Abstract
- The present study was objective to analyse the effectiveness of exchange rate risk management strategies on financial performance; the case of retail industry Zimbabwe. In relation to the retail industry in Zimbabwe, OK Zimbabwe Limited was used as the case study organization. The present study was mainly based on achieving three objectives which are; to identify factors influencing the successful implementation of exchange exposure management strategies in relation to OK Zimbabwe Limited, to assess the current exchange rate risk management strategies being used by OK Zimbabwe and to recommend alternative risk management strategies that can be adopted by OK Zimbabwe Limited to improve organizational financial performance. The reviewed literature was based mostly on the purchasing power theory and the interest rate theory. The literature showed that interest rates parity possess risk to business organizations and purchasing power of customers affects the performance of organizations in the retail industry. The study adopted a descriptive study with the target participants being employees, supervisors and directors working with OK Zimbabwe Limited. The researcher selected the sample of the study using a purposive random sampling technique. Data was collected using questionnaires. Also, data collected was then presented using tables, charts and graphs. From the study the researcher found that the factors that ensure the successful implementation of exchange exposure management strategies in relation to the retail industry are; information technology, organisational culture, top management commitment and communication. The researcher discovered that, alternative foreign exchange risk management strategies that can be implemented in the retail industry to improve organizational performance are hedging, risk sharing, insurance, avoidance and risk reduction.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- Exchange rates
- Financial performance
- Risk management
- Supervisor
- N/A
- Item sets
- Department of Banking and Finance
- Media
-
Nyaradzo Chitsungo.pdf