Swire Group Case

Assume that Swire Group (www.swire.com), with significant investments around
the globe, is considering a strategic investment in Qantas Airways
(www.qantas.com) with the intention of becoming a major shareholder. As an
analyst working with Swire Group, prepare a report which includes:

1. A brief background on business environment in Australia, operations of Qantas
and Swire Group within the global context;

2. Discussion of the impact of currency fluctuation on Qantas and approaches they
have used to manage currency risk;

3. Discussion of the impact of currency fluctuation on a potential acquisition and
approaches to managing this impact to mitigate risk;

4. Discussion of the impact of a sharp fall (say 20%) in A$ against major currencies
on the acquisition (include transaction and translation exposure in your answer) and
approaches to hedging;

5. An investment recommendation to Swire Group supported by appropriate
quantitative and qualitative information relevant to a cross-border transaction.

This is group work. Please complete 3, 4 and 5 ONLY. No title is required.

This is no detailed mark criteria. Marks will be awarded for quality and accuracy of analysis, content, and presentation. 

Use library links to access relevant research databases and most recent financial
reports and market disclosures. Also, the following should provide you with
background information.


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