HEDGING AT PORSCHE CASE DISCUSSION Please read the Hedging at Porsche case (you can buy the case packet here) and prepare for the class discussion by answering the following questions. 1. According to the case, why does Porsche hedge its foreign exchange exposure? From the perspective of Porsche’s stock market shareholders at the time of the case, does it make sense for Porsche to hedge? 2. Suppose it is the end of November 2007, and Porsche reviews its hedging strategy for the cash flows it expects to obtain from vehicle sales in North America during the calendar year 2009. The exchange rate at the end of November 2007 is $1.47/€. Assume that Porsche entertains three sales scenarios: In the baseline scenario, the expected volume of North American sales in 2009 is 32,750 vehicles. The low-sales scenario assumes that sales are 30% lower than the baseline sales volume.The high-sales scenario assumes that sales are 30% higher than the baseline sales volume. Assume, in each scenario, that the average sales price per vehicle is $90,000 and that all sales are realized at the end of November 2009 (this is a simplifying assumption). All variable costs incurred by producing and shipping each additional vehicle to be sold in North America in 2009 are billed in € and amount to €60,000 per vehicle. a) The no hedge tab in the Porsche Excel file contains a graph showing how Porsche’s operating cash flows in € (revenue − variable costs) obtained from its North American sales under the three scenarios depend on the $ per € spot exchange rate, S, prevailing at the end of November 2009. Write the equations that characterize Porsche’s North American operating cash flows in € under the three sales scenarios as a function of S, assuming that Porsche does not hedge.

Please write a 3 page Case Study answering the following questions. I have attached the Case Study below which should be used to support your answers. Please make sure to cite the case study and any other additional sources you use.1.) Help stalk organize the data by preparing a run chart.2.) Prepare appropriate process control charts to see if the process is in control. Is the receiving process in our our of control?3.) Customer service requirements determine that receiving process errors should never exceed 2 percent on any given day. What percentage of the days is likely to exceed 2 percent error, given the current performance at receiving? Assume a total of 8,000 transactions per day, 4,000 in each module. 4.) Prioritize the set of actions yo would take to ensure that more than 99 percent of the days have less than 2 percent receivng process error. 5.) Can you think of a continuous improvement framework that Stalk can use as an engine to improve performance in the receiving process and other processes at Springfield? Requirements: 3/4 pages ,12 point font, double spaced