Subject category:
Strategy and General Management
Published by:
Stanford Business School
Version: 25 March 2007
Length: 9 pages
Data source: Published sources
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Abstract
Based in Charlotte, North Carolina, American Colonial Heritage, Inc (ACH) was a top-ten US furniture manufacturer focused on the upper end of the indoor home furniture market. Alexandra Jones, who had recently earned her MBA, worked on the International Expansion Team. At the beginning of 2006, ACH got its first $100,000 order from its new distributor, Jutland Indvendig, in Denmark. Due to strong competitive pressure and ACH''s desire to secure the deal, ACH agreed to denominate the order in krone, making some at headquarters concerned about the currency risk ACH could face in the transaction. The case follows what Jones did to learn about currency fluctuation and what ACH could do to mitigate its risk. Note: The company, the characters, and the quotations in this case, unless otherwise stated, are fictional and were created by its authors. No reference is intended to any person.
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Abstract
Based in Charlotte, North Carolina, American Colonial Heritage, Inc (ACH) was a top-ten US furniture manufacturer focused on the upper end of the indoor home furniture market. Alexandra Jones, who had recently earned her MBA, worked on the International Expansion Team. At the beginning of 2006, ACH got its first $100,000 order from its new distributor, Jutland Indvendig, in Denmark. Due to strong competitive pressure and ACH''s desire to secure the deal, ACH agreed to denominate the order in krone, making some at headquarters concerned about the currency risk ACH could face in the transaction. The case follows what Jones did to learn about currency fluctuation and what ACH could do to mitigate its risk. Note: The company, the characters, and the quotations in this case, unless otherwise stated, are fictional and were created by its authors. No reference is intended to any person.
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