The Nakamura Lacquer Comany

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GLOBALIZATION POLICY
OF
THE NAKAMURA LACQUER COMPANY

SUBMITTED TO: MR SANJAY KUMAR GUPTA
DATE OF SUBMISSION: 18.08.2008 SUBMITTED BY: JOYDEEP MUKHERJEE (20081020)

To
Mr Nakamura
The Nakamura Lacquer Company
From: Joydeep Mukherjee
Date: August 18, 2008
Subject: Report on Globalization Policy of the Company
Dear Sir
The issue of Globalization of the Nakamura Lacquer Company has been addressed in this report. The opportunities provided by National China Company and Semmelback, Semmelback and Whittacker have been evaluated. The provision for not opting for globalization has also been taken into account. Considering, the total scenario, partnership with Semmelback, Semmelback and Whittacker for expansion in the American market has been zeroed upon as the decision that would be in the best interests of the company.

Executive Summary:
Nakamura Lacquer Company is going through a phase where it has explored every possibility in the domestic market and has reached an optimum level. Globalization of the product is a policy decision, which needs to be taken. Two American companies, National China Company and Semmelback, Semmelback and Whittacker, have shown interest to promote the brand in the American market. After assessing the important criteria like, company profile, growth, marginal profit, security offered, risks involved, brand building etc. it seems appropriate that our company forms an alliance with Semmelback, Semmelback and Whittacker to promote its product in the global market.

Situation Analysis:
After 12 years that Young Mr Nakamura had taken over the reigns of the Nakamura Lacquer Company, the company has conquered the domestic market. The strategy change with effective mechanization of the trade of producing lacquer wares named the “Chrysanthemum” brand at large volumes and effective prices bore fruit. With growth in the domestic sector attaining levels of saturation, “globalization” was what other companies were offering to Nakamura Lacquer Company. With the brand spreading, American companies started showing interest in starting ventures in this domain. Two first rate companies, National China Company and Semmelback,Semmelback and Whittacker lined up immediately, offering Mr Nakamura, substantial growth, valid prices, increasing brand domain and new investment opportunities.

Problem Statement:
Deciding whether to explore new territories in the global market, taking into consideration the present opportunities and risks. The company’s own production and managerial competitiveness to deal with the substantial growth, also is a concern for the company.

Statement of Options:
The options that Mr Nakamura has at the present moment are:
1.To maintain a status quo, i.e. to remain focussed in the domestic sector. 2.To opt for National China Company for partnership in its globalization strategy. 3.To opt for Semmelback, Semmelback and Whittacker for partnership in its globalization strategy. 4.To opt for a Company for partnership in its globalization strategy after surveying the market scenario itself. Regarding the last option, we do not have sufficient data to evaluate it; so effectively we have only 3 options to work upon in the present context.

Criteria for Evaluation:
The following criteria have been taken into consideration, before deciding upon the recommended decision; a)Company profile
b)Order quantity(security)
c)Time span
d)Total Profit
e)Brand Building
f)Initial Investment
g)Risks
The other issues which also could affect the future business concern, in case globalization strategy has been confirmed upon are:- Capacity of the plant: Whether the company would be able to expand and maintain production according to the demand of the future. Demand in future in both foreign and domestic markets: Whether there will be sufficient...
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