Nakamura Lacquer Company

Executive Summary

Mr. Nakamura had built a substantial business and the Crysanthemum brand became Japan's best selling brand. But he had no business outside of Japan and the Japanese market was already flooded with lot of other handicrafts. So he needed to look for new markets.

This was the situation when he received offers from two highly recommended U.S companies.

Each offer has been evaluated in terms of brand representation, cost reduction and maximization of profit margin.

It is recommended that Mr. Nakamura should sign a deal with the Sammelback, Semmelbach and Whittacker Company for growing his brand in the U.S market.

( Word count - 100)

Table of Contents

SR.No. Content Page No.

1. Situation Analysis 03

2. Problem Statement 03

3. Criteria for Evaluation 03

4. Options 04

5. Evaluation of Options 04

6. Recommendation 05

Situation Analysis

World War 2 had just ended in the 1945 & the Japanese market was growing. Mr. Nakamura had just taken over the family business in 1948 & in the year 1952, he had built substantial business & developed mechanized methods for mass production. The Nakamura "Crysanthemum" brand has become Japan's best known and bestselling brand- good quality, middle class and dependable. Outside of Japan however, Mr. Nakamura did no business, except for selling occasionally to American tourists through his established Japanese outlets such as the big departmental stores & therefore Mr. Nakamura needed to expand his market.

Mr. Nakamura received lucrative offers from 2 highly recommended companies in the United States -

1. Company A - National China Company - Rose & Crown Brand

2. Company B - Semmelback, Semmelbach and Whittacker Company

Problem Statement

Mr. Nakamura has to make a decision about whether to sign the deal with National China Company ( Company A) or Semmelback, Semmelbach and Whittacker Company (Company B).

Criteria for Evaluation

1. Brand Building and growth

2. Cost

3. Marginal Profit

4. Global Representation

5. Long term planning

Options

Following are the alternatives to be considered:

1. Make