Study On The Management Strategies Of SH Company With Exchange Rate And Oil Price Fluctuation

Dollar exchange rate and international crude oil price fluctuations have greatly influence on the profit of petroleum trade enterprises.SH Company continuous slightloss in fast four years due to the lack of accurate grasping of the dollar exchange rate and international oil price changes.Using the methods of theoretical analysis,scenario analysis method,case method this paper studied their effects on the profit of SH company.The purpose of this study is to improve the SH company’s profit level,and to provide reference for other related petroleum enterprises.It has negative impact on SH Company’s profits that crude oil price’s rising.It has positive influence on SH Company’s profits that the price of crude oil declined.In the case of dollar’s rising,SH Company gains currency premium.The dollar’s rising indirectly dead to the falling price of oil,it helps to improve the profit of SH Company.In the case of dollar’s declining,SH Company gets the monetary loss.The decline in the dollar exchange rate indirectly dead to crude oil price’s rising,it makes against improving the profit of SH Company.Crude oil price volatility and the dollar exchange rate fluctuations simultaneously affect the profit of SH Company.SH Company’s measures include four aspects against the dollar exchange rate and oil price fluctuations.(1)SH Company should establish a diversified product mix.2)SH Company should adhere to the US dollar Trading.(3)SH Company should use the financial means to deal with$exchange rate and international crude oil price fluctuations.(4)SH Company should adopt flexible marketing measures.In order to achieve the above strategy,it also should has a series of safeguard measures.(1)SH Company should enhance the company’s independent operation status。(2)SH Company should establish a risk prevention mechanism.(3)SH Company should actively carry out financing,investment.