Case | HBS Case Collection | October 1994 (Revised November 1995)

N.V. Philips Electronics - Currency Hedging Policies

by Richard F. Meyer

Abstract

Describes Philips Electronics' policies and problems relating to foreign exchange risk and hedging. Explains centralization versus decentralization of currency hedging, economic role versus transaction role, the difficulties of capturing the necessary information centrally, and assigning currency gains and losses in a matrix system of management.

Keywords: Business Divisions; Currency Exchange Rate; International Finance; Globalization; Policy; Information Management; Management; Problems and Challenges; Risk and Uncertainty;

Citation:

Meyer, Richard F. "N.V. Philips Electronics - Currency Hedging Policies." Harvard Business School Case 295-055, October 1994. (Revised November 1995.)