Porsche Exposed

c. Did anything surprise you about the company's values? Why or why not? (1-3 sentences. 1.0 points)

2. What do you think are the motives of Harnischfeger's management in making the changes in its financial reporting policies? Do you think investors will see through these changes?

1. Discuss the nature of stock as an investment. Do most stockholders play large roles in the management of the firms in which they invest? Why or Why not?

In this report, I am going to evaluate the influence of different stakeholders exert at Mercedes Benz. The stakeholders I will be discussing is the owner of the business, customers who buy cars as they provide good quality of service, employees who help the business to perform well and making profits and the Government who support Mercedes Benz because they have been running successfully throughout the years so they want to invest money to further develop the business. On the other hand, I will make the following points in my report is by commenting on the level of influence that each stakeholder exerts on Mercedes Benz. I will also be referring to evidence from different sources for the comments that I make. I will state the strengths and the weaknesses on the influence of different stakeholders. Also, I will make recommendations on how Mercedes Benz can do to overcome the weaknesses which can affect their performance. At the end I will write a conclusion by summarising what I wrote in the report, which stakeholders have the most influence and which stakeholders have the least influence in Mercedes Benz.

•     Jaguar Treasury could create Money Market Hedges by borrowing USD, converting the proceeds into GBP using spot rate, and using the revenues generated in US market to pay back the USD principle and interests in the future. This would provide a "natural" hedge against Jaguar’s dollar revenue stream.

1.From the annual reports you previewed, what is the company's corporate strategy? What are their company goals and were they successful in achieving those goals? Please list the company of the annual report you previewed.

Dr.-Ing. h.c. F. Porsche AG, alias Porsche AG is a German automobile manufacturer specializing in high-performance sports cars, SUVs and sedans and the introduction of Boxter in 1996 created a lot of furore for the simple reason that this was the first time that the manufacture of the car would happen outside Germany and for the first time Porsche would be entering the fast growing sport-utility vehicle (SUV) market by 2002.

B) How well has Berkshire Hathaway performed? In the aggregate? In its investment in Scott & Fetzer? In its investments in earlier purchases of GEICO stock? In its investments in convertible preferred securities?

1. What do you think about the capital structure policies Diageo has pursued in the past. Do they make sense? How does it compare to Diageo’s competitors’ policies? Which competitors would make for the best comparison? 2. Why is Diageo selling Pillsbury and spinning off Burger King? How might value be created through these transactions? 3. Based on the results of the simulation model, what recommendations would you make for Diageo’s capital structure? Does the model capture all of the important risk factors faced by Diageo? Would you want to adjust the model I any way?

Dozier can capture a profit through both of the hedging strategies albeit it being smaller than the target six percent originally built into the bid. An un-hedged position is unacceptable due to the firm’s recent financial difficulties - it is critical that Dozier profits from this initial venture into this new market. While leaving the receivable un-hedged alternative does offer the greatest potential profit at the current prevailing FX rates, these profits are not guaranteed (see appendix for profit/loss possibilities given GBP/USD FX fluctuations). Given the importance of locking in a profit and the uncertainty of the GBP/USD future exchange rates, we recommend Dozier hedges the £1,057,500 receivable by exchange rate in

Well, throughout this case there was a sense of internal war between the executives of two of the world’s largest automobile companies. Wiedeking, the CEO of Porsche, can be seen as a dominating personality throughout this case. Wiedeking was famous for his efficient production and astute marketing, which turned Porsche into world’s most profitable car company. Therefore, keeping this same attitude in mind, he wanted to make some major changes in the Volkswagen group(VW) because he was aiming to achieve something big. He wanted to remove inefficient operations and also insisted on shutting down the production lines of some cars like ‘Phaeton’ and ‘Buggati’, which according to him were not highly profitable and were a commercial failure. On the other hand, Ferdinand Piech, the CEO of Volkswagen group, had something else in his mind. Unlike Wiedeking, who only focused

1) The buyer decision process of traditional Porsche customers relies on the motivations that determine these people to select this brand. Their purchasing decision process is based on the exclusivity of the brand that is connected with the car owner. In their opinion, by purchasing a Porsche, traditional customers purchase the exclusivity and luxury associated with the brand. These customers want to purchase a car that reflects their social status and their financial power. In addition to this, they are not interested in the utility of the car, but in the characteristics that differentiate it from utility cars. These traditional buyers are rather interested in their feeling while driving a Porsche in comparison with the size, price, or fuel economy of the car.

Volkswagen has lost its reputation due to the recent emissions scandal. Volkswagen needs to recover its brand reputation and rebuild the relationships within its value chain, while pursuing its strategic goals (improving fuel economy with lesser emissions), in order to remain competitive in the automotive industry. To prevent future scandals, effective corporate governance needs to be implemented at Volkswagen.

Porsche is one of the most well-known brands in the world. In customers' minds, Porsche stands for exclusivity, class, and high quality. The company's marketing strategy is oriented towards identifying the needs and preferences of a small group of customers and on developing car models that satisfy these needs. However, Porsche was forced to introduce several models on the market that were not in accordance with what typical customers of the company usually prefer. These models refer to lower-priced cars, but also to high class SUVs like Cayenne and Panamera.

Analyzing the effect of the exchange rate movement and cost of hedging on the financial figures of XJP, J&J underestimated the significant role played by exchange rate movement and cost of hedging on the gross cost of product sold of its subsidiary. It’s obvious that the parent company had set the objective of 20% growth in earning without considering the high cost of hedging and foreign exchange losses.