Case Study : Husky Energy Inc.

American Barrick is the largest gold producer in North America. The implementation of the gold-hedging program differentiated the firm from other major gold rivals and improved its reserve and financial strength. In 1995, American Barrick ’s latest gold find necessitated the company to determine a new hedge strategy for its gold production.

DO YOU AGREE WITH MR. WILSON 'S ESTIMATE OF THE COMPANY 'S LOAN REQUIREMENTS? HOW MUCH WILL HE NEED TO FINANCE THE EXPECTED EXPANSION IN SALES TO $ 5.5 MILLION IN 2006 AND TO TAKE ALL TRADE DISCOUNTS?

There are lots of methods to solve the changes in foreign currency and interest rates issue, however, derivative financial instruments are the major tunes Nike enterprise has used to tackle this issue. Despite the fact that this approach does not wipe out comprehensively the risk of foreign exchange, Nike enterprise still utilize it to minimize or delay the negative consequences. Specifically, the derivative financial instruments comprise embedded derivatives, interest rate swap, and foreign exchange forwards and options contracts (Nike annual report, 2014).

Suncor Energy is a company I would like to work for because they have a solid foundation for both business and employee success. Also, the company has an achievement- oriented culture, enormous opportunities for career growth, a very competitive compensation package, an industry leading experience and a great reputation for social and environmental responsibility.

BHP Billiton is the world’s top producers of major commodities. China, as BHP Billiton’s largest export market, demand strongly influences the BHP Billiton’s operation (Western Australian Iron Ore Industry Profile 2015). According to the annual report of BHP Billiton (2015), China brought about 36.6% revenue in the amount of total export revenue for BHP Billiton, among the largest product is Iron Ore, which was 66% in 2015. Meanwhile, the forecast of iron ore will continue to increase production. However, Chinese steel consumption may growth slow next few years (shows in figure 1) because the real estate industry decline (Mark 2015). Therefore, oversupply and weaker demand may create the fluctuations in commodity prices which related to commodity risk.

The TexasAgs oil company case study gave us insights on different aspects of a negotiation that can happen in real world scenarios. It elegantly portrayed the importance of having a BATNA, setting target and restriction points, impact of the fluctuating markets on the ongoing negotiations, downside of the emotional behavior, importance of having a third party member or mediator in the negotiation. The case illustrates that the negotiations should be based assumptions as they may or may not be right. Having facts and understanding the other parties true objectives and goals are truly essential in negotiation. It is a typical example of how the current power on one side can dominate and take complete advantage of their position.

This is a case study analysis on Nissan Canada Inc. (NCI) and its plan to move from a “make to stock” to a “make to order” process and the implementation of NCI’s Integrated Customer Ordering Network (ICON). Involved in the implementation of ICON, NCI is faced with several challenges in the conversion of its outdated ordering process to Manugistics, an Enterprise Resource Planning (ERP) system. (Hunter, 2007)

Economic exposure is the change in expected cash flows arising because of an unexpected change in exchange rates. Aside from existing obligations of the firm which will be settled in foreign currencies at

Century Heating & A/C, Inc. is a full-service HVAC contracting company that is located in Gresham, Oregon. This HVAC contracting company has been in business for more than 40 years. Century Heating & A/C, Inc. serves the greater Portland, Oregon metropolitan area and beyond. Their services include installation, maintenance, and repair. The equipment and appliances that they install include gas and electric furnaces, air conditioners, heat pumps, gas packaged units, ductless mini split heat-cool systems, alternative power, clean indoor air systems, on demand water heaters, gas lines, sheet metal, cooktops, and dryers. Century Heating & A/C, Inc. carries the products of Coleman, Rudd, Mitsubishi, Goodman, and Daikin AC. Century Heating & A/C,

Nestlé S.A. is a Swiss company and owns a prestigious position being the world’s leading nutrition, health and wellness group (Nestlé, 2016). According to its annual report (2015), this company is exposed to many risks caused by movements in foreign currency exchange rates, interest rate and market prices. The foreign exchange risk comes from transactions and translations of foreign operations in Swiss Francs (CHF). The interest rate risk faces the borrowings at fixed and variable rates. The market price risk comes from commodity price and equity price. The former risk arises from world commodity market for the supplies of coffee, cocoa beans, sugar and others. The later risk arises from the fluctuations of the prices of investments held. (Nestle annual reports, 2015). Thus, financial derivatives instruments are used by this multinational corporation in order to hedge these risks.

Those expenses act as a natural hedge that decreases the total exposure of Aspen to foreign exchange risk. For its revenues and expenses, after “natural hedging”, the overall exposure of Aspen to foreign exchange risk is $9,484,000, with Belgium

From its definition it can be noticed that hedging is a strategy employed by companies in an effort to safeguard their economic position and to prevent the company from the losses which are associated with the unforeseen risks. Companies can hedge against risks which are associated with losses by taking control of their future purchases. The commodity prices vary in different markets and are caused or influenced by different economic factors. Some commodities are very scarce and with the increased depletion subject to the global demand in different foreign markets, the prices are set to be hiked in response to the established demand which positions the companies that use those particular commodities to have cash flow problems.

This essay will explore the extent to which a mature and cyclical product market led to General Motors (GM) restructuring in 2009 following its Chapter 11 bankruptcy protection filing in the United States. It will be debated that market maturity contributed to the company’s restructuring as the increased competition, worsened economy, and product innovation brought up the need for GM to develop a new effective strategy. Although GM enjoyed decades of success as the most important industrial company in the United States, flawed internal structure and lack of focus on the external environment, caused them to fall behind competitors and the realities of market trends. Therefore, when the global economic crisis came in 2008, GM’s

The Pacific Oil Company a well-established oil company with an assorted diversified product line including “Vinyl Chloride Monomer (VCM)”. (Lewicki, 2010, p. 583) As one of the pioneer producers of VCM, Pacific Oil cornered the market share for contracting, distributing and selling their niche product, VCM worldwide. One of Pacific’s longtime customers was Reliant Corporation. This partnership was more than a decade old and was strong. However, if Pacific Oil decided to further diversify its product line to include Polyvinyl Chloride (PVC) a VCM derivative, “it would not want to be in the position of supplying a product competitor with the raw materials to manufacture the product line, unless the formula price was extremely

General Motors Company which is commonly known as GM, is an American multinational corporation headquartered in Detroit, Michigan that designs, manufactures, markets and distributes vehicles and vehicle parts and sells financial services. General Motors was founded by William “Billy” Durant on September 16, 1908. Durant had become a leading manufacturer of horse-drawn vehicles in Flint, MI initially. At its inception GM held only the Buick Motor Company, but in a matter of years would acquire more than 20 companies including Oldsmobile, Cadillac, and Oakland, today known as Pontiac. General Motors Company is one of the biggest companies in the world of automotive industries. The Company delivers automotive vehicles around 37 countries and has joint ventures such as Shanghai GM, GM India, and GM Egypt.