The Structure Of Business Decision Essay

916 words - 4 pages

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Individual Assignment No 1
Case Analysis Report
‘The Structure of a Business Decision’
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Mr. Nakamura recently takes over charges of his family business of lacquer ware. His brand “Chrysanthemum” is the top selling brand of only Japan. He wants to expand his business across the globe. But Japanese government does not allow direct investment foreign.
In the way two US Company approaches him for collaboration. First has fixed demand of 400000, with 5% more margin but no brand recognition of “Chrysanthemum”. Second has estimate demand of 600000 with brand recognition ...view middle of the document...

First, “Rose and Crown” which has market share of 30% of dinner ware in Unites States. They proposed a proposal of fixed 400,000 sets purchase annually for three years. They pay 5% more what they sell in Japan but they will not sell their product with their own brand name “Rose & Crown”. Rose & Crown wants to retain own brand name for new product. Nakamura also could not sell to anybody else, with his own brand or any other brand, during that period in United States so the same quality and that specific product could not reach to market by any other means.
Other company “Semmelback, Semmelbach and Whittacker” which is largest supplier of hotel & restaurant supplies in United States. They have proposed to acquire their brand name “Chrysanthemum” for five years at standard commission rate. They are willing to pay 15,00,000 for introduction and promotion for two years. They also used first 20% of sales on pay-off of promotion and introduction. They done their deep study of market and forecast demand of 6,00,000. They are in good financial condition & have better marketers.
The situation arises for Nakamura to choose the best option among them.

Problem Statement
The constraint of government policy leads to have a joint venture for business expansion in abroad without direct investment. Nakamura’s problem is to decide the way of expanding the business whether with one of two company or other options.

The main objectives of organization are
1. To expand his business abroad.
2. To create a brand value worldwide
3. To increase the revenue and sales.

The options to achieve objectives of organization are
A. To go with the proposal of “Rose & Crown”
B. To go with the proposal of “ Semmelback, Semmelbach and Whittacker”
C. To explore new opportunities and market in local market of Japan.


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