It was January and the legendary Porsche sports car manufacturer wanted to rethink strategy. Porsche’s management had always indifferent to opinions of the stock market, buts its currency hedging strategy has always been something of a lightning rod for criticism. Although the currency hedging results were positive, many experts believed that Porsche had simply been “more lucky than good.” There was a growing nervousness among analysts that the company was actually … Read more »

It was January and the legendary Porsche sports car manufacturer wanted to rethink strategy. Porsche’s management had always indifferent to opinions of the stock market, buts its currency hedging strategy has always been something of a lightning rod for criticism. Although the currency hedging results were positive, many experts believed that Porsche had simply been “more lucky than good.” There was a growing nervousness among analysts that the company actually speculating on currency fluctuations, and that was not in the best interest of shareholders. Analysts had estimated that more than 40% of income came from foreign currency hedging. Porsche president and CEO, Dr. Wendelin Wiedeking, now the company wanted to reconsider the exposure management strategy.
This is a Thunderbird Case Study.
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from
Michael Moffett
Barbara S. Petitt
Source: Thunderbird School of Global Management
13 pages.
Publication Date: Apr 24, 2004. Prod #: TB0119-PDF-ENG
Porsche Exposed HBR case solution

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