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Introduction

THE NAKAMURA LACQUER COMPANY CASE REPORT PGP 2008 - 10 Addressed to : Mr. Sanjay Gupta WAC - I Date of Submission : Monday, August 18th, 2008 Name and Roll number : Hasumati Vankar 20081018 Decision on expansion of Nakamura Lacquer company Submitted to Mr. Nakamura (President : The Nakamura Lacqurer Company) Submitted by: Hasumati Vankar February 09,1962 The Nakamura Lacqurer Company Internal Memo To: Whom so ever it may concern From: Hasumati Vankar Date: 9th February 1962 Subject: Decision report on whether to expand the firm or not The report states the decision taken regarding the collaboration with two international US companies taking into account various factors. I have come to certain conclusion. The detailed report is attached herewith for your kind perusal. Enclosure: Decision report Thanks & Regards Hasumati Vankar CONTENTS 1) EXECUTIVE SUMMARY 2) SITUATION ANALYSIS 3) PROBLEM STATEMENT 4) STATEMENT OF OPTIONS 5) CRITERIA OF EVALUATION 6) EVALUATION OF OPTIONS 7) RECOMMENDATION 8) PLAN OF ACTION 9) CONTINGENCY PLAN 1) EXECUTIVE SUMMARY Mr. ...read more.

Middle

3) PROBLEM STATEMENT Business strategic plan for Nakamura Lacquer Company on expansion of company in USA 4) STATEMENT OF OPTIONS Some of the options available with the company are: 1) Accepting offer of National China Company this are the following terms which would be applied if Nakamura Company Plans to deal with National China Company. a. Introduction of lacquer dinnerware to a small but discriminating public in the U.S.A. b. Annual purchase of 400,000 sets of the Nakamura lacquer dinnerware at 5 percent more for three years by the National China Company. c. There wont be direct contact with the company since the lacquer dinnerware is delivered to the Japanese jobbers d. Modification of brand name from "Chrysanthemum" to "Rose & Crown" till the above tenure. e. Mr. Nakamura undertakes not to sell anyone else in the U.S. lacquer ware either with his brand or with any other brand during that period. 2) Accepting offer of Semmelbach and whittacker a. It is foresighted that there is a market for at least 600,000 sets of the Nakamura lacquer dinnerware a year and within five years it should be a couple of millions. ...read more.

Conclusion

which is National China Company's Brand. Our Brand identity is lost by doing so which is a big loss for us. So options 2 or 3 are better if we want to continue with our brand identity. Looking at short run profits wil be higher in options 1 but option 2 will give us more profit after recovering the expansion cost. Option 2 is the best if we look at the expansion point of view. 7) RECOMMENDATIONS Looking at our objective goal of expansion, profit maximization and brand identity. The deal with Semmelback, Semmelbach and Whittacker Company seems to be the perfect. It will need an investment in expansion so it has high risk but return will be higher if we are able to recognize in the American market. 8) PLAN OF ACTION Next step should be to take proper Government permission and start looking out for the best ways to recover the money for expansion. Then he also need to alter his techniques to increase the production of sets as required and also increase the production to at least 600,000 sets of lacquer dinnerware by employing more men and by using more advanced technique. ...read more.

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