Using the Patton model, discuss the degree of risk (quadrant), and what is the best course of action to mitigateSmith's risk for this situation and in the future.

WWIW evaporator coils in New Mexico. Most of AirF-'ro's business had been domestic. and all their customers were within driving distance to their manufacturing facility. Recently. AirPro forayed into intemationat markets with a sale to King Kool. a Brazilian air conditioning company. The recent sale to King Kool. while modest in size at 12300 coils. had been a signicant nancial boost to AirPro. Inc. The order had used up some raw-materials inventory that Smith had considered reselling at a loss a few months before the King Kool order. Furthermore. the company had been running well under capacity and the order was easily accommodated within the production schedule. The purpose of the meeting was to nalize details on a new order from King Kool that was to be 50% larger than the original order. Also. payment for the earlier King Kool order had just been received and Smith was looking forward to paying down some of the balance on the rm's line of credit. Jane Doe was a sales manager and needed to meet with CEO John Smith to discuss the recent results of the sale to King Kool. As Smith sat down with Doe, he could tell immediately that he was in for bad news. It came quickly. Doe pointed out that since the King Kool order was denominated in Brazilian real {BRL}. the payment from King Kool had to be converted into U.S. dollars (U353) at the current exchange rate. Given exchange rate changes since the time AirF'ro. Inc. and King Kool had agreed on a price. the value of the payment was substantially lower than anticipated. More disappointing was the fact that King Kool was unwilling to consider a change in the price for the follow-on order. Translated into dollars. therefore. the new order would not be as protable as the original order had initially appeared. In fact. it would not even be as protable as the original order had turned out to be due to a rise in some of AirPro. Inc.+ Costs. This deal was initially thought to be nancially good for AirPro. lnc.. Although. after factoring in exchange rates. this was not the case. In the original order. King Kool was charged 104.338.3121 BRL for their purchase. After the exchange of currency from BRL to us. dollars. AirF-'ro. Inc. was estimated to receive $48.3?1.24 {104,338.30 * .4536}. This means that AirPro. Inc. brought in $55.96'f less from their deal with King Kool than was expected