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Case Study Solution

Hedging at Porsche Case Study Solution

Hedging at Porsche "Porsche Volkswagen" is a Harvard Business

Review (HBR) case study. It is written by Stefan Nagel and is widely
used to explain challenges in Finance & Accounting field. The areas
covered in the case are - "Global strategy, Risk management". Blue
Ocean University provides - case study solution, analysis methodology
& assignment help.

Case Study Description

Porsche is taking in more money from its options strategies than it

is from the sale of cars. Some of the earnings are on foreign
exchange options, but a significant chunk of the profits is coming
from the company's huge stake in Volkswagen. Company
executives argue they have built the stake in Volkswagen to fend
off the takeover of its partner by another company, but others are
crying foul, indicating that the company's speculation is too risky.
They are questioning whether the company is still a car
manufacturer or if it has become a hedge fund. Students are
asked to recommend the best course of action.

Authors :: Stefan Nagel

Category :: Finance & Accounting

Key Words :: Global strategy, Risk management

Porter Five Forces analysis of Hedging at Porsche

To know what products or services Porsche Volkswagen is in?

What is the geographic scope of its product and services? What
are the levels of profitability in the industry and are the
competitors better positioned than the company? Please
check Porter Five Forces analysis of Hedging at Porsche

PESTEL / PEST Analysis of Hedging at Porsche

SWOT Analysis of Hedging at Porsche
VRIO Analysis of Hedging at Porsche

What is a Case? What is the case method? How do you analyze

Hedging at Porsche case study?

The case is a depiction of real life business situations that

business managers had faced. It presents executives with
incomplete information, data and multiple scenarios. Case
method enables executives to be position of the protagonist in the
case, have access to limited information, as often the case in real
world, and ask them to analyze the situation and come up with
recommendations.

The business case study method is a powerful learning tool. It

provides business practitioners with a potent approach to -
1. Talk about the Porsche Volkswagen case study effectively in
class and present the recommendations based on evidences only
provided in the case study.

2. Quickly establish a base of knowledge about a business

problem presented in Porsche Volkswagen case study and
related macro & micro environment in which Porsche Volkswagen
operates in.

3. Write persuasive case study based essays based on

information provided in Porsche Volkswagen case study.

4. Recognize the business situations & scenarios faced by

managers of Porsche Volkswagen case and apply appropriate
tools to solve problems, make decisions, or develop evaluations.

The Skills You Need to Analyze & Solve the Hedging at Porsche
Case Study

- With Porsche Volkswagen case study you need to be conscious

of how you read the material and build a mental map of the
confusing pattern.

- As a reader you need to be able to filter the noise of irrelevant or

relatively unimportant information provided in this case study.

- Business case studies are often arranged as jigsaw puzzle and

pieces are arranged to provide more than one viable outcomes.
Porsche Volkswagen case study is no different.
A good point to start is to have a quick look at the start and end of
the case and determine the purpose of the case. The purpose of
is to build a map of information that the case contains. Avoid
reading slowly and trying to memorize the content.

Case method requires two distinct set of skills –

Firstly - an ability to analyze the case, give meaning to its key

issues and questions that have been asked about it. The goal is
develop congruent conclusions based on reality in the case.

Secondly executives should be able to communicate their

findings, observations and recommendations effectively.

Blue Ocean University Guide to Case Reading & Analysis

1) Identify the type of business case study is at the core of a

case. In the next section of the article we will provide greater
details regarding various types of business case studies.
2) Follow a case reading process.
3) Pursue a methodical path of analysis.

Type of Case Study

There are three broad types of business case studies provided

by Harvard Business Review (HBR) -
1. Decision Scenario case studies
2. Evaluation Scenario case studies
3. Problem Diagnosis case studies

You can determine the core scenario of "Porsche Volkswagen"

case study by asking these two questions -

1. What does the main character have to do?

2. What is the major uncertainty?

Clearly defining the core scenario of Porsche Volkswagen case

study will help you to use relevant framework in next step and
provide specific agenda for productively exploring the case study.
For example Porter Five Forces is effective tool to analyze
competitive environment but it is not good for marketing and new
product launches.
To explore further please read Blue Ocean University - Porter
Five Forces Analysis of casename

How to Analyze Hedging at Porsche case study based on

Decision Scenario Approach

Decision cases are organized around an explicit decision made

by the protagonist of the “casecompany” case. You can use a
three part approach to conduct an analysis of a decision scenario
– decision options, decision criteria, and relevant evidences.
There are often no correct decisions in the case but the best
decision often requires cutting out scenarios of maximum
adverse. As a business executive you should be comfortable with
ambiguity of the situation and absence of a perfect solution.
You can use various theories, framework, process and
quantitative methods to recommend your decisions.

How to Analyze Hedging at Porsche case study based on

Evaluation Scenario Approach

Each of the situations in the case study has its own logic and
awareness of it can help you not only to read more efficiently but
also to write a more evidence based case study solution for
casecompany case study.
You need to take the pieces and fit them into a pattern that helps
you understand the main issue and think about the optimal ways
to address it.
You need to focus on key tasks that allow you to put pieces
together in a meaningful pattern, which in turn will give you a
better understanding of the main issue and put you in a position to
make impactful recommendations.

How to Analyze Hedging at Porsche case study based on

Problem-Diagnosis Approach

Problem Diagnosis case studies can be specified based on two

situations – One there is significant outcome or performance of
casecompany, and two there is no explicit explanation of the
outcome or performance of casecompany. By reading case you
know something critical has happened but you don’t know the
reason for it. The case requires accurate casual analysis.

How to Prepare and Discuss Hedging at Porsche Case Study

Writing case solution in exams and preparing notes for class

discussions are two completely tasks. Each has its own unique
objective.

In the exam scenario there is time pressure and you will be

judged on how comprehensively you provide the overall solution.
While in the class discussion you will be part of the class wide
discussion and you will be judged based on insights you bring to
the case discussions from your analysis, work experience and
understanding of concepts.

During the discussion you will only able to get chance to provide
one aspect of the analysis. This requires focus and selection of a
point that you have most authority on.

How to Write Hedging at Porsche Case-Based Essays

Our research and extensive experience with business executives

at Blue Ocean University training programs suggests that case
solution writing by both seasoned experts, professionals, and
MBA's is often characterized by - fuzzy points of view, disjointed
discussions of issues, and uneven use of evidences.
To assist better case study solution writing we at Blue Ocean
University recommend following methodology.

Three Step Approach to Construct Hedging at Porsche Case

Study Solution

Conclusions – State your conclusions early so that people know

what is coming next. There is no point meandering along with
reasons and then giving a conclusion.
Reasons – Once the reader is aware of the conclusions then she
can evaluate the reasons and evidences. This will not only help in
guided reading but also better understanding of your reasoning
and why you arrive at the conclusions that you did.

Evidences - Even the same set of numbers can be interpreted

differently by each person so you should strive to build reasons
based on evidences you deem critical and then use them to
support your conclusions.

The methodology can be used to all three types of case studies

by businesses executives and MBA based on their
requirements.It is not the only way but a very good way. For all
good leaders you need to exercise judgment based on material
and deliverables.

References for Hedging at Porsche Case Study Solution

Hedging at Porsche , Harvard Business Review Case Study.

Published by HBR Publications.

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