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EXPANDING C&C INDUSTRIES INTO OVERSEAS MARKETS Prepared for Man Ho Kit President C&C Industries Prepared by Christopher Smith C&C Industries July 18, 2007 MEMORANDUM Date: July 18, 2007 To: Man Ho Kit, President C&C Industries From: Christopher Smith, Manger of Operations Subject: Expanding C&C Industries into Overseas Markets This is in regards to my original memo concerning the expansion of C&C Industries into overseas markets. I have continued my research effort to evaluate the practicality of expanding to Japan instead of Australia. After careful review of several strategic advantages and disadvantages in both countries, and factoring in the objectives of C&C industries, it was apparent that Australia is the right choice for our expansion effort. Australia will fit better with our business goals and give C&C Industries a greater chance of success in overseas markets. In this report I will summarize several key areas that will directly influence our expansion effort into overseas markets. After you review each of these sections it should be evident why I have selected Australia. As always, if you have any questions regarding this report please feel free to contact me at any time. ...read more.


Japan has an efficient public transportation network, especially within the metropolitan areas and between the large cities. "Japanese public transportation is characterized by its punctuality, its superb service, and the large crowds of people using it" (Japan Guide). Just like Australia, Japan relies heavily on its shipping ports for exporting and importing goods to the country. Japan also offers a state of art railroad system that that connects in major urban cities. All the major cities in Japan have airports that offer direct routes to other major cities and back to C&C's corporate headquarters in China. Australia and Japan both offer major airports in all of their more populated cities. I see no transportation problems with Australia or Japan and traveling to and from our headquarters in China present no problem for either country. Customer Base Both Australia and Japan offer a large market for potential customers. The Networking Services division of C&C Industries targets current internet users as prime candidates for our products and services. In a survey performed in May 2007 that studied internet behavior among users aged 15 and over, it was revealed that "62% of the Australian population and 49% of the Japanese population use the internet" (JIJI Press America). ...read more.


Based on the research and information presented it should be evident why C&C Industries should select Australia as the country to expand our business. I think it's important to add that Australia and China are currently working towards a free trade agreement. As of June 2007, the two countries had just concluded their 8th round of negotiations (Department of Foreign Affairs and Trade). Though the negotiations have spanned over two years, it's thought to believe that there will be a signing of the agreement within the next year. Currently the next rounds of negotiations are set to take place in October 2007. When the agreement is signed it would be very beneficial to our company to already have an established business setup and operating in Australia. By taking all of the factors I have discussed into consideration, I believe the facts speak for themselves. Japan is definitely a good place to expand our business to, but right now there is too much competition in that country and we need to choose a location where the market place isn't over saturated. Choosing Australia will allow us to do just that, with less risk and the same amount of potential reward. ...read more.

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