Blades, Inc. Case Study Analysis Paper

995 words - 4 pages

Blades, Inc. Case Study Analysis PaperFactors of Foreign Exchange RatesExchange rates are the amount of one country's currency needed to purchase one unit of another currency and the foreign exchange market is the monetary nexus between countries that makes it possible for global trade to be accomplished more efficiently than barter. The foreign exchange market is where one countries' currency is exchanged for another because each nation uses its own monetary unit. Therefore, if people in one nation want to acquire goods in another nation, currency must be replaced from one country for the other country to accommodate the business deal.Foreign exchange rates, at the most basic level, are derived from long-term economic fundamentals. These variables weigh and measure the value of one currency to another. Over time, these economic fundamentals and macro-factors will lead to very long-term trends. From the fundamentalist's perspective, the main factors that affect foreign exchange rates are Interest rates, Trade balance, Inflation, GDP (Gross Domestic Product), and Employment Statistics.Case SummaryBlades, Inc. needed to order supplies two months ahead of the delivery date. The company considered an order from a Japanese supplier that required a payment of 12.5 million yen payable as of the delivery date. Blades had two choices to either purchase two call options contracts (since each option contract represented 6,250,000 yen) or purchase one futures contract (which represented 12.5 million yen).The futures price on yen had historically exhibited a slight discount from the existing spot rate. However, the firm would have liked to use currency options to hedge payables in Japanese yen for transactions two months in advance. Blades would have preferred hedging their yen payable positions because the company was uncomfortable leaving the position open given the historical volatility of the yen. Nevertheless, the firm was willing to remain unhedged if the yen became more stable someday.Ben Holt, Blades' chief financial officer (CFO), preferred the flexibility that options offer over forward contracts or futures contracts because he could let the options expire if the yen depreciates. He would have liked to use an exercise price that was about 5% above the existing spot rate to ensure that Blades would have to pay no more than 5% above the existing spot rate for a transaction two months beyond its order date, as long as the option premium was no more than 1.6% of the price it would have to pay per unit when exercising the option.In general, options on the yen have required a premium of about 1.5% of the total transaction amount that would be paid if the option is exercised. For example, recently the yen spot rate was $0.0072, and the firm purchased a call option with an exercise price of $0.00756, which is 5% above the existing spot rate. The premium for this option was $0.0001134, which is 1.5% of the price to be paid per yen if the option is...

Find Another Essay On Blades, Inc. Case Study Analysis Paper

ABC Inc Case Study

1028 words - 4 pages of the root causes for ABC, Inc. However, most importantly, procrastination, operational knowledge and follow through of his duties appear to be the primary culprit.ReferencesUniversity of Phoenix. (2006) Week Two supplement, Case Study for Student Analysis. Retrieved November 5, 2006, from University of Phoenix, Week Two, rEsource. COMM215 â€" Essential of College Writing.University of Phoenix. (2006) Week Two supplement, Sample Short Report Case Study Format. Retrieved November 5, 2006, from University of Phoenix, Week Two, rEsource. COMM215 â€" Essential of College Writing.

Case Study: Dell, Inc

911 words - 4 pages Untitled Case: Dell, Inc. Casey Wilson INSS 720 Company Summary: Michael Dell founded Dell computer at the age of twenty-one in his dorm room at the University of Texas, Austin. Dell's strategy is to build a computer so that the consumer can order it easily. It's build to order strategy has made Dell

AucScan, Inc. Case Study

1860 words - 7 pages AcuScan, Inc. Case StudyI am newly hired Vice President of Organizational Development, and will be responsible for creating the Organizational Development department over the coming year. This company is trying to find a new product based on their technology, a retinal scanning system, because revenues have been dropping. Two members of the management team have suggested a new product for a new market, but the manager of Product Development has

Amgen Inc Case Analysis

1773 words - 7 pages Amgen Inc Case Analysis The biotech firm Amgen Inc. gives much attention and time to the planning process. Because the outcomes for a company like Amgen are often very unsure and many employees are quite sceptical about the use of such a planning, the main issue can be described as follows: What is the added value of planning for a fast-growing company in an uncertain and dynamic environment? To address this issue, an analysis will

Coach Inc. Case Analysis

7996 words - 32 pages Coach Inc. Case Analysis Six years after deciding to be an independent public company in late 2000, Coach Inc.’s net sales had grown at a compounded annual rate of 26 percent and the stock price had increased by 1,400 percent due to a strategy keyed to a concept called accessible luxury. Coach crafted the accessible luxury category in women’s handbags and leather accessories by differentiating themselves on price, but matching competitors

Case Study for ABC Inc

811 words - 3 pages Case Study for ABC Inc.IntroductionThere were a number of problems encountered during the recent hiring process. This case study is an attempt to identify and recommend ways to improvement this process. From the information that has been obtained I believe that a combination of a lack of employee experience, and a lack of prior planning and follow up resulted in a failure to accomplish all the tasks necessary to hire the new employees in a

Custom Chip, Inc. Case Analysis

1656 words - 7 pages Custom Chip, Inc. Case Analysis Summary Custom Chip, Inc case describes the situation of a company where lack of coordination and cooperation among different departments is hindering them to achieve their common or ultimate goal as a single business entity. Applications engineering, product engineering and manufacturing are all inclined towards achieving their individual objectives and timelines rather than collaborating and synergizing their

Home Depot Inc. Case Analysis

2179 words - 9 pages mentioned above, Home Depot can improve its future performance and profitability and be dominant in the market in the years coming.References:K. Palepu, 'The Home Depot, Inc.', the case, Harvard Business School, 1996Palepu, Healy and Bernard. 'Business analysis and valuation', Third edition, 2004Table 1: Stores Productivity198319841985Sales/Store ($million)Transaction/Store (000)Sales/TransactionSquare Foot/Store (000)Sales/Square

Case Study: Faith Community Hospital: MGT 350 Case Study Analysis Paper (instructors markings included)

1974 words - 8 pages Case Study: Faith Community HospitalThe Faith Community Hospital has concerns about their growing problems within the hospital. These problems are their mission statement, ethical medical practices, and costs to run the hospital. The executives of Faith Community Hospital have been tasked with how to solve these problems. They must frame the problems, make the decisions, and evaluate those decisions for the betterment of the hospital. Their

White Castle Systems Inc. Case Study

1372 words - 5 pages affordability and convenience of White Castle burgers makes it an ideal choice after one suddenly feels peckish. This is truer after consumption of alcohol, which heightens one's appetite for carbohydrates and fat (Wikipedia, 2007).This case study analysis has been prepared to address White Castles system's strategic marketing issues to capture a greater share of the fast food market and direct marketing efforts beyond the limited franchising in Malaysia

Krispy Kreme Doughnuts Inc Case Study

1130 words - 5 pages Krispy Kreme Doughnuts Inc Case Study Summary In this SWOT analysis, I will delve into the strengths, weaknesses, opportunities, and threats that affect the Krispy Kreme Doughnuts Inc. Krispy Kreme is a highly successful company, whose main product, not surprisingly, is doughnuts. The company went public in 2000, and saw a hugely successful increase in share price immediately after. Vernon Rudolph founded the Krispy Kreme company in 1937

Similar Essays

Abc, Inc. Case Study Analysis

518 words - 2 pages  ABC, Inc. Case Study Analysis •     Introduction A number of problems were made during the recent hiring process. This case Study is an attempt to identify and recommend ways to improve this process. From the information that has been obtained, I believe that a lack of employee experience and a lack of prior planning and follow up resulted in a failure to accomplish all the tasks necessary to hire the new employees in a

Abc, Inc. Case Study Analysis

1012 words - 4 pages ABC, Inc. Case Study Analysis Problem At the beginning of April, Carl Robbins was hired at ABC, INC. as a new recruiter. He successfully hired several employees, even though he was fairly new at his job. This was his first recruitment effort that turned out quite well. After this, the Operations Supervisor, Monica Carrolls, tasked Carl to recruit 15 new employees to begin working at ABC in July. So Carl scheduled an orientation to take

Case Study Analysis Abc Inc

1113 words - 4 pages policy booklets would be in place by the June 15 deadline. Mr. Robins however, has failed or neglected to ensure that necessary arrangements were taken before the June 15 new hire orientation. Mr. Robins also failed or neglected to follow up with all pre-requisites before the new hires could begin orientation. The goal of this case study is to look at ways Mr. Robins could have conducted his work habits better and find resolutions to the problems

Case Study Analysis Of Harley Davidson Inc

2427 words - 10 pages Case Study Analysis: Southwest AirlinesHistorySouthwest Airlines, Originally Southwest Co. was conceived in 1968 by Rollin King and Herb Kelleher as a flight carrier to fly between 3 Texas cities. Southwest Airlines was started originally in Dallas, TX and is still headquartered there today. Although Southwest Airlines has had a small number of different executive officers, and presidents, none seem to have the universal impact and lasting