The Vice President Marketing: He is responsible for marketing & sales
The General Sales Manager: He is responsible for achieving agreed upon sales targets, and strengthening the nationwide distribution network. He is supported by four regional heading N,S,E and W regions respectively.
The Marketing Manager: He is responsible for evaluating sales and profitability performance of existing brands, and designing marketing inputs to achieve predetermined profit goals. He is also responsible for generating new products concepts and product launches.
The R&D Manager: He is responsible for developing new products. He is also responsible for transferring any lab-scale development into mass manufacture.
The Quality Testing & Administrative manager: He would be responsible for the quality testing of the manufactured parts including integrated inventory planning, procurement and distribution of material. He would be helped by the team under him.
The Nagoya division manager: Since Nagoya is yet not too developed not many persons are posted there. This office would be developed under the Nagoya Vice president.
For further recruitment in the firm we can outsource our hiring process to a consultancy. We would target to hire experienced people who have already worked into industry.
2) Board of Directors: Before going for an IPO it was necessary to have board of directors because that would reflect that MCT is not dependable on just one person. We should include those members having share ownership till 2% and the Vice presidents on the four departments. This would give more recognition to the Vice president’s of each department. Refer Exhibit 2
3) Sources of funds: The financial statements reflect that our per share value have been consistent till 1997 (Refer Exhibit 3). Due to Asian crisis per share value had gone down in 1997 but again we have regained in 1998. We have a good growth but the sources of funds are a problem.
Going through all the requirement of listing at this point MCT fulfills the criteria on listing only in OTC in Tokyo.We don’t fulfill the TSE criteria as a earning of Yen100, 100 & 400 respectively is required in latest three year.We also cant fulfill the criteria to get listed in NASDAQ National market as our net worth in 1998 was less then $6MM. It was approximately $1MM.
We fulfill all the criteria to get listed in NASDAQ small capital market. Now we have choice between OTC and NASDAQ. I recommend to get listed in OTC currently and then upgrade to TSE, as entry to TSE is possible and is easy through OTC. Reason for not listing in NASDAQ at present is that our company is at a premature state to enter US market. It’s not well recognized or structured at the moment. Entering the US market at the wrong stage couldn’t hamper our brand image. We need to develop our market in US before going for an IPO in US. As previously planned we can go for IPO in 2001.
During the coming years we have projected to invest heavily in R&D. This is an indication of new innovations in our present product line. If we able to collect a good amount of fund through the initial Public offering, we could invest the surplus amount into our R&D.
4) Product Line: Our core competency is out designing capabilities and we should enhance it and use to create innovative products in paging and cellular market. Only 30 million people are using cellular telephones out of 120 million. There is still a huge market to cover. Paging market has started declining and with the decline of pager marker there is a rise of cellular market as people are moving towards new technology. In spite of the Asian crisis the cellular market has grown 20% in 1997-98. Our main focus should be cellular market for coming years. Internet software market is surely a revenue generator. In 1998 we received 1280,000 US$ from internet software which is 80% to paging which is 16000,000 US$. Letting it go would be a loss. Even if we aren’t able to capture the whole internet market at present, we shouldn’t get out of touch with it.
III MCT: Further Actions
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Organization Development: After the structuring is done organization development programme is a need. IT is aimed at creating an stress free environment, in which people worked with a sense of ownership and belonging.
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Technology implementation: As we aim to be an internet service provider we ourselves need to have the technology implemented with us. Proper IT support is needed which will further reduce our lead time. At present also our lead time is better than others competitors i.e. (NEC, Matsushita, Fijitsu, Hitachi and Mitsubishi) . We can further improve it so that it becomes impossible for the competitors to achieve such and lead time. By doing that we create differentiation in the market of cellular and paging market. We shall optimize profits, through productivity improvements, automation, economies of scale, control of wasteful expenditure and the effective combination of resources. All this is possible with a proper IT support.
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EXHIBIT 1
Exhibit 2: Board of directors
Exhibit 3 : Per share Value in (‘000 US$)