Nakamura Lacquer Company
EXECUTIVE SUMMARY
Our Company has limited growth in Domestic Market as we are already the best seller. We are having no international business. As classified by the Government of Japan, we cannot invest abroad hence should think seriously about export.
The National China Company, the largest manufacturer of good quality dinnerware in United States has offered the annual purchase of 400000 sets of our product at 5% extra price for three years.
Semmelback, Semmelbach and Whittacker, Chicago, the largest supplier of hotel and restaurant supplies in Unites States and buyers of dinnerware and similar goods for a number of department stores are willing to represent our “Chrysanthemum” brand for five years at a) standard commission rates and b) first 20% on all the sales Our Company will make during that time to recover the investment they are bearing for the introduction and promotion in United State.
SITUATION ANALYSIS
Our company is a market leader in domestic market. We are having no international business.
For future growth, Company has to target the other segments of domestic market and to start exporting. Classified by the Government of Japan, We cannot invest money abroad. The National China Company has demanded for fixed order and Semmelback, Semmelbach and Whittacker, Chicago is willing to represent the company in United State. Both the offers can’t be accepted together.
STATEMENT OF OPTIONS
Domestic Market
International Market
• Export to other countries.
• Offer from the National China Company.
• The offer from Semmelback, Semmelbach and Whittacker, Chicago.
CRITERIA OF EVALUATION
1. Existing production level
2. Investment
3. Selling price
4. Profit
5. Brand Value
6. Time period required
7. Risk involved
8. Market segments
EVALUATION OF OPTIONS
1. Existing production level: A substantial business, employing several thousand labors and production of 500000 sets of lacquer table ware each year so as to meet the
Our Company has limited growth in Domestic Market as we are already the best seller. We are having no international business. As classified by the Government of Japan, we cannot invest abroad hence should think seriously about export.
The National China Company, the largest manufacturer of good quality dinnerware in United States has offered the annual purchase of 400000 sets of our product at 5% extra price for three years.
Semmelback, Semmelbach and Whittacker, Chicago, the largest supplier of hotel and restaurant supplies in Unites States and buyers of dinnerware and similar goods for a number of department stores are willing to represent our “Chrysanthemum” brand for five years at a) standard commission rates and b) first 20% on all the sales Our Company will make during that time to recover the investment they are bearing for the introduction and promotion in United State.
SITUATION ANALYSIS
Our company is a market leader in domestic market. We are having no international business.
For future growth, Company has to target the other segments of domestic market and to start exporting. Classified by the Government of Japan, We cannot invest money abroad. The National China Company has demanded for fixed order and Semmelback, Semmelbach and Whittacker, Chicago is willing to represent the company in United State. Both the offers can’t be accepted together.
STATEMENT OF OPTIONS
Domestic Market
International Market
• Export to other countries.
• Offer from the National China Company.
• The offer from Semmelback, Semmelbach and Whittacker, Chicago.
CRITERIA OF EVALUATION
1. Existing production level
2. Investment
3. Selling price
4. Profit
5. Brand Value
6. Time period required
7. Risk involved
8. Market segments
EVALUATION OF OPTIONS
1. Existing production level: A substantial business, employing several thousand labors and production of 500000 sets of lacquer table ware each year so as to meet the