Aifs Currency Hedging Solution
AIFS Case
Finance in a Global Environment
Rochester Institute of Technology
Group 4
Mengjie Ban
Liu Gu
Danielle Sherwood
Bill Speight
Mohamed Waheed
Summary
The American Institute for Foreign Study, also known as AIFS, is a student exchange organization that specializes in academic and cultural exchange programs for both college and high school students. The AIFS was founded by Sir Cyril Taylor in 1964, in the United States, and is split into two divisions: the Study Abroad College division, based in London, and the High School Travel Division, based in Boston. Christopher Archer-Lock and Becky Tabaczynski, are the controller and CFO for the college and high school divisions, respectively.
Approximately 50,000 students travel per year with AIFS, and the company currently has annual revenues nearing 200 million dollars. Both the college and high school divisions are focused on American students studying abroad. Europe and Australia are two common destinations shared by the divisions. The college division also travels to Russia and South Africa while the high school division travels to the Americas, China and Africa. The AIFS is also associated with other divisions including the Au Pair, Camp America, and Academic Year in America divisions, which conversely to their regular divisions, place non-American students in the United States.
The two divisions, both college and high school, are susceptible of reacting to world news and events close to their travel dates. However, the high school travelers are most likely to react to worldwide news. Some of these events in the past that have affected AIFS revenues include the 1986 terrorist attacks, the 1991 Gulf War, the 2001 September 11 attacks and the 2003 Iraq War.
Since AIFS is predominantly working with American students traveling abroad, there are different types of financial risk that affect their potential for profit from providing these services to the students. AIFS’ revenues are
Finance in a Global Environment
Rochester Institute of Technology
Group 4
Mengjie Ban
Liu Gu
Danielle Sherwood
Bill Speight
Mohamed Waheed
Summary
The American Institute for Foreign Study, also known as AIFS, is a student exchange organization that specializes in academic and cultural exchange programs for both college and high school students. The AIFS was founded by Sir Cyril Taylor in 1964, in the United States, and is split into two divisions: the Study Abroad College division, based in London, and the High School Travel Division, based in Boston. Christopher Archer-Lock and Becky Tabaczynski, are the controller and CFO for the college and high school divisions, respectively.
Approximately 50,000 students travel per year with AIFS, and the company currently has annual revenues nearing 200 million dollars. Both the college and high school divisions are focused on American students studying abroad. Europe and Australia are two common destinations shared by the divisions. The college division also travels to Russia and South Africa while the high school division travels to the Americas, China and Africa. The AIFS is also associated with other divisions including the Au Pair, Camp America, and Academic Year in America divisions, which conversely to their regular divisions, place non-American students in the United States.
The two divisions, both college and high school, are susceptible of reacting to world news and events close to their travel dates. However, the high school travelers are most likely to react to worldwide news. Some of these events in the past that have affected AIFS revenues include the 1986 terrorist attacks, the 1991 Gulf War, the 2001 September 11 attacks and the 2003 Iraq War.
Since AIFS is predominantly working with American students traveling abroad, there are different types of financial risk that affect their potential for profit from providing these services to the students. AIFS’ revenues are