文档介绍：Xian-JanssenPharmaceutical(China)panybothhedgeitscurrencyrisksandstillmeetthesalesandprofitabilityobjectivesdirectedbyleadership?€RxRmbPaulYoungwasthefinancialcontrollerofXian-JanssenPharmaceuticalLtd.(XJP),.-basedmultinational,Johnson&,ChristianVelmer,(corporate),a20%essful2003yearThiswouldbeachallengegiventhatXJPwassufferingfromanumberofrisingexpensesandforeignexchangelossesXJPofChinaAjointventure,producesandmarketedprescriptionandover-the-counter(OTC)medicationstomostlyhospitalsinChina(whichmadeuproughly80%ofsales)MostsalesintheChinesemarketwerethroughtendersales,paniesproducedbidsforsalestoindividualhospitalsandwereawardedsalesonthelowestcostbids(alsotermedaDutchAuctioninsomeplacesintheworld)XJPhadclosed2003witha98%essrateontendersXian-JanssenPharmaceuticalandtheEuro2XJPpurchasednearly95%ofallitsproductfromEuropeMostproductpurchasesfromEuropewerefromJ&JEurope,andthereforethepricesweretransferprices–panyPaulYoungbelievedthatmostofthetransferpricesXJPwaspayingwererelativelyhigh,increasingtheprofitabilityoftheEuropeanbusinessbutincreasinghiscostsinChina(andthereforedecreasinghisprofitability)AllEuropeanpurchaseswerepricedandinvoicedineuros,andtheeurohadbeenrisingsignificantlyinvalueagainsttheRmb(sincetheRmbwasfixedtoth