Chapter 12, Problem 29PS

Summary Introduction

Case summary:

Mary Smith is an analyst of Bank of Ireland, hired for analyze wineries of French wine industry and present a report for examines competition on wineries market. Mary Smith analyzed past five years record and examine profit margin, market share and cost management system. Mary smith identified four major French wineries available for wine industry and made a table for characteristics of such areas. After examination of records available, Mary smith identified few key points about the bargaining power of buyers of French consumer. Mary Smith presented draft report to Mr. Ron VanDriesen for review. Mr. Ron VanDriesen reviewed report and discussed about the strength and weakness of such areas. Then Mr. Ron VanDriesen asked Mary smith for few correction in report and few matters for further analysis.

Character in this case:

Mary Smith, Mr. Ron VanDriesen

Adequate information:

Mary Smith is analyst of Bank for analyzing wine industry.

To select:

The impact of appreciation in French home currency against English currency on the competitive position of the East winery i.e. whether less, equal, or more competitive.

Introduction:

As per global economy system, exchange rate is the best factor that affects the international market competition between home country and other country. Any change in currency exchange rate affects market position of the products of that country in other country.