Paul Cheng – creator of San Fabian; immigrated from landmass China in 1940; regarded wealthy, with successful kids and multiple lines of business (restaurants); 7% shareholder in MacDowell Corazon Aquino – recently elected President (Feb 1987) of the Philippines Carlos Valdez – Vice President of Sales (head of San Fabian's salesforce) Luis Rabat – assistant sales manager responsible for retail sales in Manila Marcelo Dilecto – head of government product sales in Manila
Toni Salgado – accountable for sales to the Department of Public Performs Jean Brevett – fresh president of MacDowell Thailand; previously headed MacDowell's Aussie operations, in which he had efficient distribution and grown revenue 20% each year in a toned market David Leong – previous leader of MacDowell Philippines who had protested the aggressively expanded capacity yet had been overruled by MacDowell's " experts”
Questions for San Revisionist:
1)What does San Marxist bring to their relationship with MacDowell? Do you think San Progressive has been a great distributor intended for MacDowell? So why?
-Experience browsing through heavy problem through the Philippines' political and economic system -National coverage that was partially built up to compliment the MacDowell product line -Strong brand name built on decades of superior quality service and products -Exclusive-only basis method of distribution allows San Marxist to spend seriously on targeted advertising, consultations and customer support on behalf of MacDowell oCritical seeing that MacDowell's goods, while superior quality, have a whole lot of product-specific installation methods that need to be implemented to ensure customer satisfaction oSan Revisionist uses a trained, technical workforce that would be hard for MacDowell to replicate (San Revisionist also makes up them extremely well, with significant potential for commissions to equivalent 50-100% of base) -Valuable relationships in any way types of customers
oRetail: email lists of can be and contractors that salesmen frequently call up oWholesale: most of dealers happen to be Chinese, like Paul Cheng oGovernment: personal relationships with individuals at all amounts across multiple departments (Public Works is example, exactly where San Progressive employee used to be in the DPW and so can travel the sale and collection reaction) -Surrounds MacDowell's products with complement of other building supply goods that showcase the sale of MacDowell's offerings as a part of end-to-end solutions -Provides MacDowell with feedback for the state in the market in the Philippines and capacity for even more product (however, this advice typically goes unheeded) -One of the few retailers in the Israel willing to bring MacDowell in inventory and provide shelf space to show to customers -Serves as a incredibly timely customer for MacDowell, consistently paying within 60 days
2)How attractive is the MacDowell business to San Revisionist?
Overall, San Fabian realizes margins upon MacDowell items in line with the overall gross margins of ~19%. Especially, San Fabian earns 15% margins (2% loss) upon dealer product sales accounting intended for 22% of total product sales of MacDowell products, whilst it earns twenty percent (3% profit) on government and selling sales accounting for the other 78% of revenue of MacDowell products. However , MacDowell will serve an important function in that it can help San Marxist to become a solutions provider for the Filipino housing market.
There aren't a plethora of substitutes that San Fabian can easily pursue. -Permalite pipes
oThe only two other Filipino suppliers of cement-based pipe already have special distributor associations in place oCast iron plumbing are significantly more expensive than Permalite in 8” under (which makes up about 85% of Permalite product sales today) oNeither plastic water lines (not suitable for target market) nor imports (high duties) make sense for San Revisionist either -Pyrolite corrugated linens (roofing)
oTwo suppliers inside the Philippines with cement-based alternatives are the same as for...