Here is the synopsis of our sample research paper on Lufthansa: Consequences of Poor Decisions. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 13 page paper
discussing a Thunderbird case (A07-99-0028) describing events and conditions
surrounding Lufthansa's 1985 decision to purchase 20 Boeing 737s to be delivered in
1986. Chairman Heinz Ruhnau made some exceedingly poor decisions that had no basis
in fact and then was called to account for them before the Board. Ruhnau believed that
the all-time-high dollar would fall in the ensuing year and it did, but Ruhnau's belief was
not based on fact. He chose to hedge half of Lufthansa's exposure in case he was wrong,
but he chose the wrong instruments to use. Further, he ignored European Airbus,
Boeing's primary competitor in passenger aircraft. The paper examines the facts of the
case as well as the positions of both Ruhnau and Lufthansa's Board of Directors,
concluding that the Board likely has no choice but to replace Ruhnau as Chairman.
Bibliography lists 1 source.
Page Count:
13 pages (~225 words per page)
File: CC6_KSLufthansa.doc
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Unformatted sample text from the term paper:
Payment would be due at the time of delivery, and the two companies agreed to a package price of $500,000,000, payable in US dollars.
This was a time of great change in US business, the movement of which significantly affected the value of the dollar relative to the currencies of other nations.
Ruhnau had a variety of hedging options available, but he believed that the dollar would be worth less at the end of the year than it was when Lufthansa
entered into its agreement with Boeing. His beliefs later threatened his position as Chairman of Lufthansa. Conditions in the US
The US economy could not be said to be in upheaval in 1985, but it was far from stable at the time. All
the developed world had suffered a deep recession in response to the world oil crisis in 1973-74. In the US, the oil crisis came at a time when the
Vietnam war was ending and the true costs incurred during the Lyndon Johnson presidency were revealing themselves. The American electronics industry already had been usurped by Japanese manufacturers, and
Americans discovery of Japans high quality, fuel efficient cars during the oil crisis had translated to cutbacks and layoffs among all the Detroit-based automakers.
The future of the dollar was not certain even within the US. Inept fiscal management during the decade of the 1970s had contributed to rising inflation that was
finally brought under control by the joint efforts of the Reagan administration and the US Federal Reserve Board under the leadership of Alan Greenspan. Double-digit inflation had persisted into
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