! Case Study 6 Foreign exchange hedging strategies at General Motors: Transactional and translational exposures ! General Motors (GM) was the largest automaker in the world‚ and the unit sales in 2001 was 8.5 million vehicles which occupied 15.1% of the total vehicle market. With the expansion through the world‚ GM faced more risk in the foreign exchange (FX). In other world‚ it would create gains or losses due to the changes in FX rate. According to the exhibit 2 and exhibit 3‚ Latin
Premium United States dollar Currency
Questions: Foreign Exchange Hedging Strategies at GM − Competitive Exposures 1. Why is GM worried about the yen? GM’s concern about fluctuations in the Yen is due not only to the impact on GM’s costs‚ but the fact that Japanese competitors face reduced costs when the Yen is depreciating. Also‚ with increasing profit margins‚ end-price to consumer can be lowered and lead to gain in market share for Japanese competitors. Research had shown that a 10 Yen appreciation to the dollar reduces operating
Premium United States dollar Marketing Supply and demand
for 100 years‚ has produced nearly 450 million vehicles globally‚ and operates in virtually every country in the world. While GM has recently enjoyed rapidly growing sales and revenues outside the United States‚ the U.S. remains the company‘s largest single market. The auto industry today remains one of America’s top employers with 1 in 10 Americans working in the industry. GM is also one of the largest purchasers of U.S. steel‚ aluminum‚ iron‚ copper‚ plastics‚ rubber‚ and electronic and computer chips
Premium General Motors Automotive industry
Definition In this case‚ GM took the strategy called "shotgun" that implements a high information technology and had spent a lot of money on information technology‚ but it was not centralized and standardized to reach every department and employee of the company. In other words‚ the information system was not linked together and standardized‚ which kept information from the employeesso they were unable to make efficient and effective decisions. One of the symptoms that GM faced in the process of
Premium General Motors Automotive industry Mercedes-Benz
com/article_display.cfm?article_id=81 Glassdoor. “Ford Motor Reviews”. http://www.glassdoor.com/Reviews/Ford-Motor-Reviews-E263.htm (2012). GM Historical Pamphlets. General Motors. http://www.gmheritagecenter.com/gm-heritage-archive/historical-brochures.html (2012). Sabatini‚ Jeff. “GM now tying all employee bonuses customer Loyalty”. Automotive News. http://www.autoblog.com/2012/06/05/gm-now-tying-all-employee-bonuses-to-customer-loyalty/. (2012). Sustainablity Report: “Employee Satisfaction”. http://ophelia.sdsu
Premium General Motors Automotive industry Ford Motor Company
BuggsRuby Financial Reporting and Accounting February 5‚ 2013 GROUP PROJECT GM VS FORD Less than 60 years ago‚ on Jan. 17‚ 1956‚ Ford Motor(F) launched its IPO into an economy in which U.S. industrial might was the envy of the world and American cars represented the apex of the automotive pyramid. Today‚ as GM eases into its second go-around‚ the questionable future of industry and the shifting definition of "made in America" cast a dark shadow over the car company ’s public celebration
Premium Ford Motor Company General Motors Automotive industry
Ford & General Motors in Russia In July 2002‚ Ford Motor Company officially opened its first Russian car factory near St. Petersburg. The factory‚ which cost some S150 million to build‚ is 100% owned by Ford and represents the first wholly owned investment by a foreign carmaker in Russia. The factory is tiny by international standards; it will employ 800 people and initially will produce 10‚000 Ford Focus cars a year. By comparison‚ a typical auto plant in the developed world produces 200‚000
Premium Ford Motor Company Automotive industry General Motors
uniqueness for the sake of being different. Differentiation is about understanding customers and how GM ’s product can meet their needs. To this extent‚ the quest for differentiation advantage takes us to the heart of business strategy. The fundamental issues of differentiation are also the fundamental issues of business strategy: Who are GM ’s customers? How does GM create value for them? And how does GM do it more effectively and efficiently than anyone else? Because differentiation is about uniqueness
Premium Customer service Marketing Product differentiation
CHALLENGES 7 INDUSTRY OPPORTUNITIES 8 III-RATIO & STOCKS ANALYSIS GM TREND ANALYSIS 9 GM‚ FORD & TOYOTA BENCHMARK ANALYSIS 10 STOCK PERFORMANCES 12 IV-CONCLUSION CONCLUSION 14 V-APPENDIX COMPANY FINANCIAL STATEMENTS 16 RATIO CALCULATIONS 21 WORKS CITED 27 I- company information General Motors (GM) is one of the biggest automotive manufacturers in the world‚ and the largest in the U.S. It’s headquarter is located in Detroit‚ MI. GM has total of 396 facilities in 6 continents and supplies more
Premium General Motors Automotive industry Generally Accepted Accounting Principles
of genetically modified (GM) foods. If evidence from around the world is anything to go by‚ there may be a case to answer. In 1999‚ the York Laboratory in the U.K tested 4‚500 people for allergies reactions and sensitivities. In previous years soy had affected 10% of consumers. In 1999‚ that figure skyrocketed 50% after GM soy from the U.S started to arrive in the U.K provoking public angst over GM foods. When massive protests followed‚ supermarkets started removing GM foods from sale and the rapid
Premium Food DNA Gene