Hong Kong Distribution Strategy

Having been told that the company is considering three options, I will recommend a fourth. The reasons why will be clear after I give my negative reactions to each of the three alternative decisions on the table.

Before doing that, however, it is helpful to get a firm fix on the percentage of revenues that have been generated by our Asian operations.

Table 1: Revenue Percentage by Region

It is safe to say that even in spite of the time and energy devoted to the Hong Kong operation, it does not show positive results.

The question before us then, is will any of the three proposed options bring about the desired increase?

Potential of Option 1: Buy 51% or more of existing operation and grow business from that base.

It is hard to see exactly what "base" there is, considering both the performance of our representative and the sales in Hong Kong. According to the research evidence provided me, I find the statement "Loctite sales to the Hong Kong distributor in 1992 were $1,183,000 in 1992, and the distributor was estimated to achieve a gross margin around 50 percent." (p. 12).

At the same time that he is unwilling to reinvest any of his profits to grow the business, or expand customer base, China's economy is growing fast

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Some common words found in the essay are:
Hong Kong, Mainland China, Southeast Asia, China Subsidiary, Taiwan Thailand, Distribution Strategy, Connecticut Asia, Potential Option, North America, hong kong, Latin America, china subsidiary, grow business, asian operations, option 2, kong partner, sales hong kong, hong kong partner, option 3, sales hong,
Approximate Word count = 958
Approximate Pages = 4 (250 words per page)

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