Currency risk management at Monsanto

Article Abstract:

Monsanto Co (St. Louis, MO) has implemented a sophisticated currency risk management operation in order to control the effects of currency fluctuations. Monsanto Co is a large international firm, and during the early 1980s, the firm began to notice the erosion of sales in foreign markets due to a strong dollar. The firm began to use options in order to hedge its currency exposure. The firm calculated the exposure to currency fluctuations, the revenue less the cost that constituted the profit that it wanted to protect, and bought options to cover the selling periods of products. The benefits of hedging currency exposure with options included containing costs and protecting the company from unexpected undesirable fluctuations in the value of the dollar. Hedging products allow Monsanto to protect operating margins and budget performance.

Methods, Accounting and auditing, Options (Finance), Hedging (Finance), Monsanto Co.

---

Catching the wave: alertness, responsiveness, and market influence in global electronic networks

Article Abstract:

Alertness and responsiveness are major capabilities that firms need to succeed in rapid-paced, information-intensive industries. In a model that was developed to describe needed firm capabilities in a fast-moving information-intensive environment, the concept of alertness is operationalized as a capability emerging from how information networks are used by firms while the concept of responsiveness is concerned with the speed of response to shifting market signals. The model is tested in the population of 4,088 banks in the global currency trading industry. Findings offered evidence to the notion that banks that are alert and responsive are usually those with greater market influence in the industry.

Functions related to deposit banking, Foreign Exchange Dealers, Commodity Contracts Dealing, Markets (Economics), Organizational effectiveness, Business success

---

Reducing buyer search costs: implications for electronic marketplaces

Article Abstract:

Buyer search costs, the expenses incurred in acquiring information on product offerings and their respective prices, are declining with the formation of an electronic marketplace. The impact of buyer costs on differentiated markets characterized by heterogeneous product offerings can be examined using a model. It has been observed that under differentiated market conditions, lowered search costs result to a smooth reduction in seller profits and, possibly, a socially optimal allocation of the products. A good example of a differentiated consumer market is the airline industry during the 1980s. Airline reservation systems allowed airlines to improve their operations, thereby lowering operating costs.

Economic aspects, Airlines, Information technology, Technology application, Information systems

Similar abstracts:

• Abstracts: Environmental product differentiation: implications for corporate strategy. Sources of corporate environmental performance
• Abstracts: Competitive priorities in operations management. Selecting a portfolio of technologies: an application of decision analysis
• Abstracts: Organizational infidelity: how violations of trust affect the employee-employer relationship. The working poor: locked out of careers and the organizational mainstream?
• Abstracts: Incapability of technological capability: a case study on product innovation in the Japanese facsimile machine industry. part 2
• Abstracts: Hospital sector's current strength to face new pressures. A fragmented industry in transition. Influences on member commitment to group purchasing organizations

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.