The Structure of a Business Decision

Topics: Brand, Economics, Term Pages: 3 (1019 words) Published: March 12, 2011
Nakamura Lacquer Company of Kyoto, Japan became one of the best manufacturers of lacquerware. Its brand 'Chrysanthemums' was Japan.s best known brand. Now the company had offers to grow in the American market which led to a dilemma for the current owner.

Statement of the problem:
Though the company had brands that were most popular in Japan, it had no business outside the country. There was a huge demand of Japanese lacquerware in America. But it was not being satisfied due to the fact that Japan's government did not allow its companies to invest outside the country. Now, the dilemma occurs to Mr. Nakamura when he received offers from two different American companies. He has to decide whether he wants to expand his business or chuck both the offers. Also, if he wants to go ahead with this business expansion, he needs to decide which American company to deal with.

Causes of the problem:
The huge demand of Japanese lacquerware was unsatisfied in America was due to the fact that Japan's government did not allow its companies to invest outside the country. This is a sufficient impediment for even the best company to stay in Japan. Now, the reason that Mr. Nakamura is in a dilemma is that if he does not grab this opportunity in front of him, both the American companies would take their offers to some other of the many handicraft companies in Japan. This could ultimately lead to losing its market leader position. Also the terms and conditions in both the offers are stringent and lead to lowering of its brand image in one way or the other. He has to predict which offer is the most profitable for the company's growth while causing least damage to its brand.

To sustain in the market, the company has some short term objectives and some long term objectives. The short term objective of the company is to expand the existing business and grow beyond boundaries while making profitable decisions. The long term objective for the company should be to...
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