Molto Delizioso: Pricing and Profits Following Brexit Devaluation
商品編號：9B17M049
出版日期：2017/03/30
再版日期：2017/03/30
商品來源：Ivey
商品主題：General Management/Strategy; International Business
商品類型：Case (Field)
涵蓋議題：currency risk;Brexit;pricing of imports;income statement;economic exposure;price elasticity of demand;devaluation;global strategy;finance;accounting;marketing and supply chain;European referendum 2016
難易度：4 - Undergraduate/MBA
內容長度：4 頁
地域：Italy; United Kingdom
產業：Manufacturing;
事件年度：2016
When the June 2016 referendum on the United Kingdom’s withdrawal from the European Union, or Brexit, resulted in a vote to leave, the managing director of the U.K. subsidiary of Italian coffee-machine maker Molto Delizioso, SRL, faced a scenario that affected many international firms and their subsidiaries. The U.K. subsidiary imported and paid for coffee machines in euros, but when it sold these items in the United Kingdom, the revenue earned was in pounds. The devaluation of the pound after the Brexit vote affected both the company’s revenues and costs and, therefore, its profits.Molto Delizioso’s managing director had to decide what to do about pricing after the devaluation of the pound caused an increase in the cost of importing his gourmet coffee machines. If he kept prices the same, profits would go down significantly. Should he raise the prices he charged to the customer? And if so, by how much?
教學手冊：8B17M049;
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