Oriflame S.A. (A)
Posted: 14 Feb 2012
Date Written: October 5, 2011
Abstract
A direct-selling cosmetics company involved in emerging markets exhibits significant foreign exchange risk exposure and profitability swings in the wake of the 2008 financial crisis. Students must review the company's use of derivative instruments and other hedging techniques to establish whether it pursues the right FX risk mitigation strategy.
Learning Objective: Introduce the students to different types of foreign exchange risk exposure and their financial impact; present and assess FX risk mitigation tools and strategies; discuss the impact of FX risk exposure on the investors.
Suggested Citation: Suggested Citation
Hawkins, David F. and Misztal, Karol and Beyersdorfer, Daniela, Oriflame S.A. (A) (October 5, 2011). Harvard Business School Accounting & Management Unit Case No. 111-050, Available at SSRN: https://ssrn.com/abstract=2005151
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.