Read the paper, Metallgesellschaft and the Economics of Synthetic Storage by Culp and Merton (1995) from Moodle. The article discusses the case of MGs hedging strategy in the futures market that went wrong in the 1990s.Write an analytical report of 1,250 word on MGs risk management style and assess the reasons that led to the debacle. In your analysis, cover at least the following:
The underlying risk position that MG was compelled to hedge,
comment on the implementation of MGs hedge strategy,
what went wrong and who should be blamed for it.In the report, demonstrate your technical knowledge of how the futures market and hedging with futures work. Amon other things, define all jargons and terminology from the futures market whenever you use them.
PS: Make your presentations neat, concise and clear. Avoid long and complicated sentences. A good report will be one that has been able to sift through the vast amount of information and present only what is necessary and important. Good luck!

Report

MNG93002 Strategy and Case Analysis Assignment 1

Instructions
You have been asked to prepare a 2,500 word report on Porter’s Five Forces Framework. With the aid of clearly drawn diagram explain the key elements of Porter’s Five Forces Framework. What are the principal benefits and challenges in using this framework to inform strategy?
Your report must be structured as follows:
? Purpose (2 marks)
? Background (3 marks)
? Porter’s Five Forces Framework
o Diagram (2 marks)
o Components (10 marks)
o Advantages and challenges (8 marks)
? Discussion (5 marks)
? Conclusion (5 marks).
Five (5) additional marks will be allocated to English expression and grammar.
Tips for preparing your report:
? Define your terms;
? Clearly explain the concepts (better explanations will include concrete examples);
? Make use of multiple references (minimum of five);
? Keep to the word limit; and
? Ensure your assignment is well-presented and free from grammatical and typographical
errors and appropriately referenced.

Report

MNG93002 Strategy and Case Analysis Assignment 1

Instructions
You have been asked to prepare a 2,500 word report on Porter’s Five Forces Framework. With the aid of clearly drawn diagram explain the key elements of Porter’s Five Forces Framework. What are the principal benefits and challenges in using this framework to inform strategy?
Your report must be structured as follows:
? Purpose (2 marks)
? Background (3 marks)
? Porter’s Five Forces Framework
o Diagram (2 marks)
o Components (10 marks)
o Advantages and challenges (8 marks)
? Discussion (5 marks)
? Conclusion (5 marks).
Five (5) additional marks will be allocated to English expression and grammar.
Tips for preparing your report:
? Define your terms;
? Clearly explain the concepts (better explanations will include concrete examples);
? Make use of multiple references (minimum of five);
? Keep to the word limit; and
? Ensure your assignment is well-presented and free from grammatical and typographical
errors and appropriately referenced.