Business Case Study Small Business Dilemma - 1444 Words

Read, analyze, and answer the case questions for the Small Business Dilemma Chapters 11-14. 1.Course Project Chapter 11: Small Business Dilemma in the hedging decisions by the Sports Exports Company. After reading the above small business dilemma, answer all of the following questions below: Mr. Logan can purchase a put option over the counter from a securities company that has what is called an exercise (strike) price of $1.645, a premium of $. 025, and an expiration date of 1 month from now. 1.Decide the amount of dollars received by the Sports Exports Company if the receivables to be received in one month are not hedged under both of the two exchange rate scenarios. Scenario 1: A 3% rate of depreciation reflects a future spot rate†¦show more content†¦4.Summarize the outcomes of dollars received based upon an unhedged strategy, a put option strategy, and a forward hedge strategy. Choose the strategy that you prefer based upon the information given. Result Based on Scenario I Result Based on Scenario II Unhedged Strategy $16,005 $16,830 Option Hedge $16,200 16,580 Forward Hedge 16,450 $16,450 Considering that there is a 70% chance of Scenario I, the forward hedge seems to be the optimal choice. However, if Scenarios II takes place, the unhedged strategy yields the best results. Nevertheless, there is only a 30$ chance that this scenario will happen. 2.Course Project Chapter 12: Small Business Dilemma in hedging the Sports Exports Company’s economic exposure to exchange rate risk. After reading the above small business dilemma, answer all of the following questions below: 1.How may Logan adjust his operations to lessen his economic exposure? What is a likely disadvantage of such an adjustment? I believe Mr. Logan could decide whether the material could be purchased from a British manufacturer, in order for him to have some payables in pounds to offset some of the receivables in pounds. Although, this solution does not entirely eliminate the exposure, simply, because the amount of receivables denominated in pounds would still exceed the amount of payables denominated in pounds. Moreover, the costs of ordering material from the U.K. may be more costly and likely subject to delays or setbackShow MoreRelatedBusiness Case Study : Small Business Dilemma1149 Words   |  5 Pagesexamine, and answer the case questions for the Small Business Dilemma Chapters 15-18. 1.Course Project Chapter 15: Small Business Dilemma about multinational restructuring by the Sports Exports Company. After Reading the above small business dilemma, answer all of the following questions below: 1.Are there any reasons why the business that has been so successful in the United Kingdom might not be successful in other European countries? In the case of this business, when the business was initially madeRead MoreCase Study: Ethical Issues Confronting Jacob966 Words   |  4 Pagesnumber of ethical concerns contained within the case study. Due to the large number of ethical issues confronting Jacob, he may wish to make a decision as to whether he truly desires to work in such an unethical culture. The environment of a business can certainly influence the individual employee, either for good and positive aspects, or in a bad or negative manner. Organizational ethics are definitely in play in this particular case study. A 2010 study found that an organizational culture reflectsRead MoreEthical Dilemm Ethics And Behavior Essay1578 Words   |  7 PagesIn this case study, April is faced with a moral dilemma. She must decide if she will be honest with the owners of the firm she works for and her coworker or be dishonest for financial gain, which she is in dire need of. 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Ltd., the key issues brought up by this dilemma, and an analysis of my recommendations on how to handle these issues. â€Å"The environment is intimidating, the service is bad, and they don’t understand my needs. Sometimes, there’s no dressing room, or it’s surrounded by men. It’s just not comfortable.† Giant Manufacturing Co. Ltd., one of the largestRead MoreEthical Decision Making : The Ethical Dilemma901 Words   |  4 Pagescustomers, qualified employees and even have an easier time raising capital (Robinson, 2014). Organizations must ensure that everyone within their business operates ethically and understands what to do when faced with ethical dilemmas and decisions. Jacob’s Ethical Dilemma In the case study, Jacob is faced with a significant ethical dilemma. He works for a small ad agency that was compiling a bid to try and receive a large government contract. 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