What should Porsche management do about the company foreign exchange exposure? 2
In the recent business atmosphere, generally defined as turbulent, for companies to
improve and stay in the market, they are required to pursue every new opportunity that come
their way if they tend to leap ahead. This is the best way for Porsche management to consider.
One of the essentials that companies has been experiencing for quite a long period is the choice
whether to transfer certain activities and processes to other company or whether to devote time,
money and energy and carry out all essential processes and activities in own company.
Porsches management should consider moving some of their production to America and
make sure that; they match the dollar revenues with its cost which has been posing a
considerable risk to sale and profits. This problem faced Porsches management because their
exposure is a single–current cost based. They should not believe that the quality of the
engineering and manufacturing are at the core of its brand, and leadership should be willing to
move production beyond the existing European footprint.
For Porsches management to deal with foreign exchange exposure they should make sure
they have production in both US dollar and euro. This is to avoid sustained currency-induced
pricing pressures against the currency. This will improve in production and also the company
will not be faced with the foreign exchange exposure which leads to losses. The management
will be able to reduce the cost of production and increase the profits and get a big market share.
The measures that the management should take, is make sure that they are able to deal
with economic change in the business environment for their company to make profits. The best
way to remain in the market and have the largest market share is by making sure all the strategic
plans and decision are made considering the external and internal factors.
