Case Name :      Ventramex and the Mexican Peso Crisis

Authors :           John Kamauff, Michiel R. Leenders, David L. Ager, Daniel D. Campbell

Source :             Ivey Publishing

Case ID :            97D013

Discipline :        Operations Management

Case Length :    14 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

After a substantial devaluation of Mexican currency, a major automaker attempts to reduce the price it is paying to a Mexican-based supplier. The supplier (Ventramex) is put in a difficult position because a large portion of its costs are based in U.S. dollars. The company must decide how to respond to the automaker while considering options that would increase the proportion of its costs that are based in Mexican pesos.