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MEMORANDUM
From: Ronald Akke
To: Mr. Triggs
RE: Vincor’s recent performance, future direction and potential Goundrey acquisition

As requested, the following is an analysis of Vincor’s performance in the past, the direction in which it is headed and suggestions to help move the business strongly into the future with specific emphasis on the potential acquisition of Goundrey. Vincor has performed well recently. We find ourselves in a weak to moderately competitive industry (please see Exhibit 1), we are on top of the driving forces for change in our industry (Exhibit 2) and our goals are aligned with key industry success factors (Exhibits 3 and 6). We face ample opportunity and only minor threats (Exhibit 4) and stand ready to capitalize on these opportunities and threats by utilizing our internal strengths and building upon our weaknesses (Exhibits 8 and 9). We are in good standing financially (Exhibit 5) and enjoy much internal strength (Exhibit 7). Our corporate strategy stands ready to respond to national drivers and we happily exceed the industry average in pushing for global leadership (Exhibits 10 and 11). We are confidently moving towards our business objectives (Exhibit 12) and the acquisition of Goundrey will be a great step towards these goals (Exhibit 13). As exhibit 1 shows, there is rather weak rivalry within our industry. The only real threat we face within our industry comes from buyer bargaining power. We must make it our chief concern to satisfy the buyer above all other. This is because we face fairly weak intra-industry competition, only a weak threat from new entrants and our suppliers have weak bargaining power. We face a moderate threat from substitute products, but this again mostly comes from the ease by which our customers can change their buying habits. We must ensure we effectively respond to changes in customer preferences. Although we face relatively weak within-industry competitive pressures, we still face threats that

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