Case study foreign exchange hedging strategies at general motors

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future. The next step is organizing the solution based on the requirement of the case.

The Japanese yen issue is an interestingly different issue in that competitive position is in play. Implementation framework helps in weeding out non actionable recommendations, resulting in awesome Foreign Exchange Hedging Strategies at General Motors: Position and current economy trend i.

Pest analysis is very important and informative. In the strengths, management should identify the following points exists in the organization: Social attitudes and social trends, change in socio culture an dits effects.

However, introduction should not be longer than lines in a paragraph. How important is the competitive exposure? Why is GM worried about the yen?

This leads to either missing details or poor sentence structures. Begin slowly - underline the details and sketch out the business case study description map. To make a detailed case analysis, student should follow these steps: Competitive Exposures case study solution.

Product and services quality standards Threat from changing technologies Weakness that threaten the business. Build a corporate level strategy - organizing your findings and recommendations in a way to answer the larger strategic objective of the firm.

Foreign Exchange Hedging Strategies at General Motors

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. Should multinational firms hedge foreign exchange rate risk? Competitive Exposures Once you finished the case analysis, time line of the events and other critical details.

Reading up the HBR fundamentals helps in sketching out business case study analysis and solution roadmap even before you start reading the case study. If you able to provide a detailed implementation framework then you have successfully achieved the following objectives - Detailed understanding of the case, Clarity of HBR case study fundamentals, Analyzed case details based on those fundamentals and Developed an ability to prioritize recommendations based on probability of their successful implementation.

Focus on the following - Zero down on the central problem and two to five related problems in the case study.

Foreign Exchange Hedging Strategies at General Motors Harvard Case Solution & Analysis

Brainstorm and assumption the changes that should be made to organization. The graph shows that the options are more profitable at 1. The translational risks can be minimized by borrowing in local currency so that overall risk can be netted off.

Following points should be considered when applying SWOT to the analysis: The strengths and weaknesses are obtained from internal organization. Is there any way that the issues above are linked? The case study addressed the exposure of General Motors to the foreign risk that arises due to its presence at a number of geographical locations and transactions in different foreign currencies.

A strategy needs to be evaluated to deal with this long term risk. Also, manipulating different data and combining with other information available will give a new insight.

Foreign Exchange Hedging Strategies at General Motors Case Solution

It is used for the purpose of identifying business opportunities and advance threat warning. Analyze the threats and issues that would be caused due to change.

Moreover, it is also called Internal-External Analysis. Effect on organization due to Change in attitudes and generational shifts. Control and out-of-control situations.Describes General Motors' corporate hedging policies, its risk management structure, and how accounting rules impact hedging decisions.

Although the overall corporate hedging policy provides a consistent approach to the foreign exchange risks that General Motors must manage, the company also has to consider deviations from. The case examines transactional and translational exposures and alternative responses to these exposures by analyzing two specific hedging decisions by General Motors.

Describes General Motors. By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.

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If you continue browsing the site, you agree to the use of cookies on this website. Foreign Exchange Hedging Strategies at General Motors: Transactional and Translational Exposures case study. Mihir A. Desai approach to the foreign exchange risks that General Motors must.

GLOBAL FINANCE Case study: Foreign Exchange Hedging Strategies at General Motors. Needless to say that youare encouraged to refer to your personal experiences and other relevant sources inanswering the assignment questions.

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Case study foreign exchange hedging strategies at general motors
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