Jack Zadow, a consultant has briefed Allan Moulter, CEO at Quality Care about the implementation system will reduce the operational cost, help in reducing the staff, reduce stress of employees, and simplify their service processes. As per the survey they have high customer retention rate Allan has doubt that this huge investment will not affect much. According to Pat Pentsone, CIO, reception centre is first touch point for customers so it is a critical point. She also foresee that they have to implement it anyway when government will intervene. Ginger Rooney, required human touch instead of machine. But they have the doubt about the information given by customer in survey. Customer need to tell what they required human touch or better quality service. After that when people will use it then they will recognize it & start to adapt the process. So Allan has to make the decision that whether they should move forward with new system or not, considering view of Jack, research by competitors.
The Nakamura lacquer company of Kyoto, Japan making lacquer for the daily table use with Chrysanthemum brand became bestselling brand in japan . But practically Nakamura had no business for American tourist. In this situation Mr. Nakamura received offer in rapid sequence from two visitor of the U.S. First visitor want 3 year contract for annual purchase of 4 lakh sets of lacquer. But brand name will be of that company. Second visitor have an offer of promotion and representation of his brand in US market for 5 year but Nakamura will not get profit in this duration. It is recommended that Mr. Nakamura should sign a deal with second visitor for growing his brand in the U.S market.
Mr Nakamura had taken over his old family business in that height where his lacquer demand reached 5 lakh sets in domestic market. His brand Chrysanthemum has become Japan’s best known and bestselling brand with good quality, middle class, and dependable. Now he wants to expand his business in abroad .But as the rule, Japanese government does not allow anyone to
invest in abroad. 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 two good offers from United State companies. Which were very highly recommended with the very highest and best credential. First offer: – National China Company- with brand “Rose &Crown” Which is the largest Manufacturer (Company A).
Second offer: – “Semmelback, Semmelbach and Whittacker, Chicago “which is the largest supplier in the State (Company B).
Mr. Nakamura has to make a decision whether he should go with first offer or second offer.
STATEMENT OF OPTIONS:
Mr Nakamura has three options;
(1) He should sign a deal with company A
(2) He should sign a deal with company B
(3) He should continue his business and expand in that market without sign a deal.
CRITERIA FOR EVALUATION:
1) Brand value
2) Risk associated with deal.
3) Time duration of the contract.
4) Order quantity.
5) Initial investment in deal/cost.
6) Profit from the deal.
EVALUATION OF OPTION:
If he make a deal with company A
• There is no global representation of his brand.
• He has to supply with Rose and Crown trademark and he can’t sell with his own brand Chrysanthemum. So after the end of 3 year Mr. Nakamura’s company might have to restart all business again.
• Time duration of contract is 3 years
• The order quantity of order is annually 400,000 sets of lacquer dinnerware.