Post on 25-Jul-2015
transcript
HARDING TOOL CORPORATIONLARGE AND SMALL MACHINES TOOLS, PARTS AND GEARS
MANUFACTURER
Nicolas GriereAlexandre MassiotHugo Morin
WHAT IS THE SUBJECT OF TODAY’S MEETING?
1978 1979 1980 1981 1982 1983 1984 1985 1986 ?0
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Part of exhibit 3
1978 1979 1980 1981 1982 1983 1984 1985 1986 ?0
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7000
Dollar Exchange Rate
Sales in Brazil
THE DEAL
HARDING CORPORATION• 400 000$ IN ASSORTED GEARS
COMPANHIA INTERNACIONAL
• 400 000$ IN BRAZILIAN SHOES
DO WE HAVE TO CONSIDER THIS OFFER?
TOOLS IN EXCHANGE OF SHOES
• 1ST APPROCH
AN UNUSUAL KIND OF CONTRACT
WHAT SHOULD WE DO WITH SHOES ?
• 2ND APPROCH
A HUGE CONTRACT
GREAT OPPORTUNITY TO MAKE PROFIT
TIMELINE
Contract offer
Dialog between Mr
Wilcox and Mr Cabral
Communication between
Harding and Overseas
Meeting of Haring’s
executives
A HUGE CONTRACT
1978 1979 1980 1981 1982 1983 1984 1985
Argentina -- -- 126 114 83 197 112 133
Brazil 264 327 431 524 640 342 206 183
Colombia 324 531 589 320 512 434 486 472
Venezuela 434 576 484 372 464 207 181 192
Mexico 313 236 174 189 76 62 41 77
Chile -- -- -- -- -- 122 221 204
Other 120 170 330 410 474 314 306 284
Total 1 454
1 840
2 134
1 929
2 249
1 678
1 553
1 545
% of total gross sales
7,8 6,5 8,9 10,7 10,2 9,8 8,2 6,1
in thousands of US dollar
Exhibit 3
SHOES
MEN’S WOMEN’SName Price Number
Pumps leather 10,0 $ 8 000
Pumps 8,00 $ 12 000
Flats 7,00 $ 4 000
Sandals 5,00 $ 7 670
Name Price Number
Oxfords 13,5 $ 4 500
Loafers 12,0 $ 6 200
Casual 9,00 $ 2 500
Sizes Men’s : 7 - 12Women’s : 5 - 10 Total : 400 000
$
Exhibit 1
OVERSEAS DEVELOPMENT CORPORATION
- A REFUNDER COMPANY
- BASED IN NEW YORK
- 2 % COMMISSION ON SALES
Exhibit 2
OUR EXPECTATION
initial shoes prices 400 000 $
our commission about 5 – 7 % 421 000 – 428 000 $
2 % commission from Overseas Corporation 412 580 – 419 440 $
COMMUNICATION / MANAGEMENT
STRENGTHS
• GOOD COMMUNICATION AMONG HARDING EXECUTIVES
• AGRREEMENT TO INVESTIGTATE THE MATTER FURTHER
WEAKNESSES
• DIVERGENGES AMONG EXECUTIVES
• NEED TO MANAGE SUBCONTRACTOR
Exhibit 4
MARKETING
STRENGTHS
• OPPORTUNITY TO SELL NEW PRODUCTS
• NO PRODUCTION OF SHOES
WEAKNESSES
• NEED TO COVER COMMISSIONS
• ADDITIONAL COSTS
DISTRIBUTION
STRENGTHS
• LATIN AMERICA IMPORTANT MARKET
WEAKNESSES
• DOLLAR EXCHANGE RATE IMPACTS NEGATIVELY
OPTION 1REFUSE THE CONTRACT
ADVANTAGES• NO RISK TAKEN
• FOCUSS ON OUR MAIN ACTIVITY
DISADVANTAGES• LESS PROFITS
• MAY LOOSE THE BRAZILIAN MARKET
OPTION 2ACCEPT THE CONTRACT
ADVANTAGES• COULD MAKE EASY PROFITS
• DISCOVER A NEW MARKET
DISADVANTAGES• MAY LOOSE MONEY IF UNSUCCESSFUL
• NOT OUR PRIMARY ACTIVITY
OPTION 3FIND ANOTHER REFUNDER
ADVANTAGES• A LOWER COMMISSION
• A BIGGER MARGIN
DISADVANTAGES• TAKES TIME
• COMPANHIA INTERNACIONAL MIGHT NOT WAIT
OPTION 4ACCEPT THE CONTRACT WITH NEGOCIATIONS
ADVANTAGES• COULD MAKE EASY PROFITS
• DISCOVER A NEW MARKET
DISADVANTAGES• MAY LOOSE MONEYMONEY IF
UNSUCCESSFUL
• MAKE LESS PROFITS
OPTION 5CLOSE THE BRAZILIAN MARKET
ADVANTAGES• TAKE NO RISKS
• AVOID FUTUR PROBLEMS
DISADVANTAGES• NO MORE PROFITS FROM BRAZIL
• MAKES THE COMPANY REGRESS