Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case from journal
-
Reference no. JIACS14-01-04
Published by: Allied Business Academies
Published in: "Journal of the International Academy for Case Studies", 2008

Abstract

St Louis Chemical is a regional chemical distributor, headquartered in St Louis. Don Williams, the President and primary owner, began St Louis Chemical ten years ago after a successful career in chemical sales and marketing. The company has gradually expanded it product line and network of manufactures. However, a year-end report had shown shrinking profit margins on product lines that include chemicals purchased from a Canadian manufacturer. Williams has asked for recommendations regarding his firm’s exposure to exchange rate risk. The primary subject matter of this case is hedging foreign currency exchange rate risk. Secondary issues examined include assessing transaction exposure and comparing hedging techniques to effectively manage unwanted exposure. The case requires students to have an introductory knowledge of accounting, statistics, finance and international business thus the case has a difficulty level of four (senior level) or higher. The case is designed to be taught in one class session of approximately 3 hours and is expected to require 3-4 hours of preparation time from the students.
Location:
Industry:

About

Abstract

St Louis Chemical is a regional chemical distributor, headquartered in St Louis. Don Williams, the President and primary owner, began St Louis Chemical ten years ago after a successful career in chemical sales and marketing. The company has gradually expanded it product line and network of manufactures. However, a year-end report had shown shrinking profit margins on product lines that include chemicals purchased from a Canadian manufacturer. Williams has asked for recommendations regarding his firm’s exposure to exchange rate risk. The primary subject matter of this case is hedging foreign currency exchange rate risk. Secondary issues examined include assessing transaction exposure and comparing hedging techniques to effectively manage unwanted exposure. The case requires students to have an introductory knowledge of accounting, statistics, finance and international business thus the case has a difficulty level of four (senior level) or higher. The case is designed to be taught in one class session of approximately 3 hours and is expected to require 3-4 hours of preparation time from the students.

Settings

Location:
Industry:

Related