Reflection on the CEMS-MIM business project about renovas internationalisation and new sales channels expansion with a brief analysis on echange rate risk management and hedging strategies

Abstract

The present work project examines Renova’s intent to enter four new markets, namely Hong Kong, Dubai, Macau and Las Vegas, and to expand into new sales channels, specifically the luxury Horeca segment. The study deals also with the analysis of the risk of exchange rate changes, which Renova might face during its internationalisation plan and how it can manage its exposure. Findings show that Renova should enter Hong Kong and Macau in a segmented way by targeting few specific hotels and restaurants and by exporting its premium coloured paper products. Furthermore, the company should hedge its exchange rate risk exposure.