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Such issues subjoin the operate be of the group which may adversely seismic disturbance Swore Pacifisms results of operations profitability. Swore Pacific has operations in Asia, Europe and brotherhood America. Despite having a planetary heraldic bearing, the groups operations atomic number 18 concentrated in Asia, mostly in Hong Kong. During outcome, the group generated about 89. 4% of its revenues from Asia out of which 51. 3% were generated from Hong Kong only. Overconfidence on one geographic region makes it susceptible to changes associated with the scotch and political situation of the country.Concentrated operations could also make Swore Pacific uncompetitive against rivals who cause globally diversified operations. Partnerships and Joint ventures enhancing air The group is expanding its presence through partnerships and Joint ventures. In December 2013, Swore Foods Holdings Limited, a subsidiary of Swore Pacific, create a 60/40 chocolate Joint venture for Hong Kong and Mainland mainland China with Movements Foods Licensing, a subsidiary of Movements Holding GAG.Movements Foods Licensing will contribute its brand and its coffee expertise to the new company, while Swore Foods Holdings will provide an bea-wide distribution network and its knowledge of the Mainland Chinese securities industry. Similarly, Swore Properties, through Marvel Glory Limited, a stick venture company formed with other partners, entered into an agreement to acquire a wholly-owned subsidiary of CITE Pacific Limited which indirectly owns DC technical Centre, in December 2013. These Joint ventures could enhance the groups business and improve its market share.Increasing spending on aliment in merging markets As the global economic shift towards the emerging economies continues, opport building blockies for several industries including the food and beverage manufacturing celestial sphere are created. According to industry estimates, approximately 58% of affected fo od is consumed by developing countries, owing to factors like a rapid increase in population in these countries. Furthermore, by 2050, it is expected that nearly 72% of the food consumption will happen in the developing countries back up by the fact and India. Swore Pacific derived 21% of its total revenues in PAYOFF through its beverages segment.The beverages segment of the group has the rights to manufacture, market and distribute the products of the Coca-Cola Company in Hong Kong, Taiwan, seven provinces in Mainland China and in the western US. Counting on these huge markets being created, companies like Swore Pacific are increasing their investments in emerging countries and looking at expanding their businesses. This trend of increasing spending on food in emerging markets is likely to increase the groups Beverages business. Page 6 As a global business, Swore Pacific is vulnerable to several local business risks in different countries.The group may increasingly perform expos ed to changing political, social, legal and regulatory obligations at the national and international level, such as those required by the European Union or the World Trade Organization. These regulations include changes in tariffs and trade barriers competition natural law requirements, such as restrictions on the groups ability to own or start subsidiaries or acquire new businesses in certain Jurisdictions delays in the process of obtaining or maintaining licenses, permits and governmental approvals necessary to operate certain businesses and environmental laws and regulations.These regulations could eat an adverse impact on the groups strategic planning and geographic expansion. Swore Pacifisms superstar business operations face significant competition across the diverse markets in which they operate. New market entrants, intensification of price competition by real competitors, product innovation or technical advancement could adversely continue the groups financial conditi on and results of operations. The group faces several competitive risks across its divisions.In naval services division, with a large number of newly built vessels inveterate to enter the offshore racket, increased competition is expected to result in moreover pressure on charter rates. This could result in a decline in Swore Pacifisms revenues. Similarly, in the property business, an increasing number of developers are undertaking property investment and development in China, which could result in lower returns achieved on the groups property developments.Intense competition in the groups key divisions could impact the groups financial condition and results of The demand for petroleum and related products has historically been cyclic and sensitive to the availability and prices of anoint and related feedstock. Historically, international prices of crude oil and refined products have fluctuated widely due to many factors that are beyond the control of companies like Swore Pacif ic, which has substantial interest in the aviation business through Catchy Pacific group, the HASTE group and YACHT.Fuel prices and availability are subject to wide price fluctuations based on geopolitical issues and tote up and demand, which can neither be controlled nor accurately predicted. The high atomic number 19 give the sack price had a major impact on Catchy Pacifisms operating results in 2012. Regardless of the effect of fuel hedging, Catchy Pacifisms fuel costs increased by HOOK$323 million ($41. 6 million) (or 0. 8%) in 2012. The Jet fuel price, which was $12. 7 per million British thermal unit (Btu) in 2009 is expected to reach $23. 7 per million Btu in 2015.It is further forecast to grow to $27. 6 per million Btu by 2030. Furthermore, the political uproar in the Middle East has impacted the oil prices. Page 7 Historically, fuel costs have generally represented 10% to 15% of an airlines operating costs, but due to volatility in prices over the previous(prenominal) few years, fuel costs have been in the range of to 40% of total operating costs. Thus the increase in global ND regional oil prices exposes the group to extreme fluctuations in earnings, which is likely to have an adverse consequence on its growth initiatives.Any inability to obtain Jet fuel at competitive prices would materially have an impact on Swore Pacifisms results of operation and financial condition. Page 8 Copyright of Swore Pacific, Ltd. SOOT abbreviation is the property of Marketing, a Denominator business and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holders show up written permission. However, users may print, download, or email articles for individual use.