Daytun Case Report

Topics: Management, Business school, Strategic management Pages: 2 (440 words) Published: January 28, 2013
To: Doug Bell, CEO of Daytun IncFrom: Daniel WangDate: July 5,1990 Vision:Daytun wants to increase the revenues from 6M to 10M within the next two years. Problem Statement:
Can Daytun grow by 30% CGAR within the next 2 years without the damage of brand reputation? Company Strategy Choices:
A. Acquisition of the local dealership of office products and POS system company B. Acquisition of the dealership of Konica at the larger metropolitan area C. Establishing a new dealership in the small metropolitan area D. Acquisition of the local competitor

E. Develop new business model like cost-per-copy product
Strategy A Analysis:
Since the current Copier business in Daytun increased only by 6.7% and the copier market is mature in London area, acquisition of the local POS dealership is the best strategy for Dayton to reach the goal within the next 2 years. Daytun needs to consider the following aspects in this strategy: 1. Can Daytun Finically secure to purchase the POS company? The value of the POS company is around $200-300K. Base on the current assets status, Daytun can slightly increase the debt from bank to purchase the company. 2. Can Daytun keep the same service excellence with the new business? The current POS company has the same service-oriented philosophy as Daytun does, and there is not dominated brand in the POS market. Daytun can establish the same reputation and earn the customer royalty. 3. Can Daytun merge with the POS company without losing the talnets? The current POS company has one 1/5 size of Daytun. Base on the very similar company culture and well-defined compensation policy, Daytun should be able to keep the talnets on both side. Daytun needs to provide more training to the whole new organization to understand and operate the new business in the very early stage. 4. Can management handle the acquisition and business expansion? Since the POS company is local, there is no geographical challenge to deal with...
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