PREFACE

Taka Shimizu Cycles (TSC) is based in Nagoya, Japan. Its brand is well known in
Japan and in the United States. The company sells four models of bicycle :
a. Road bicycles for the non-enthusiast, general user. Price: US$100-$300
b. Touring bicycles for serious cyclists who travel long distances. Price: US$600-
$3,000
c. Racing bicycles for professional cyclists. Price: US$1,000 upwards
d. Mountain bicycles for energetic, adventurous, keep-fit cyclists. Price: US$100-
$250
In the next 10 years, TSC plans to expand in Europe and South-East Asia so that it
becomes a global company. To do this, it has decided to build its own factory in an
overseas country. The factory will have approximately 2,000 workers, who will
produce the frames for the cycles locally. Other components, such as saddles,
gears, chains, tyres, etc., will be imported. Workers will be recruited locally and
trained, if necessary, at a special school set up for that purpose.
 SALES REVENUE

Previuos Year Taka Shimizu Cyles, mempunyai pendapatan dari penjualan

berdasarkan jenis sepeda yang dimilikinya dalam persentasi digambarkan sebagai
berikut :
55% dari total penjualannya berasal dari Road bicycle, selanjutnya di urutan kedua
ada Touring bicycle dengan 25%, sisanya untuk mountain bicycle 17% dan 3%
untuk racing bicycle.
Untuk last year, Revenue Taka shimizu cycles terdapat beberapa perubahan dalam
komposisi penjualannya, diantaranya menurunnya dalam penjualan road bicycle dan
touring bicycle, berbanding terbalik dengan meningkatnya penjualan mountain
bicycle. Dengan rincian 41% dari total penjuallannya masih dikuasai oleh road
bicycle meskipun dalam persentasenya mengalami penurunan dibandingkan
previous year, touring bicycle turun 6% dibanding previous year menjadi 19%,
mountain bicycle naik 14% dibandingkan previous year menjadi 31% dan ada sedikit
peningkatan dalam penjualan racing bicycle sehingga menjadi 9% pada last year.
 Advantages and disadvantages

Advantages :
Country A (Europe)
a. Population : 120 – 150 Milion.
b. GDP US$ 21.100.
c. Frequent traffic jams.
d. The government will contribute 30% towarss the cost of a new factory
Country B (Europe)
a. GDP US$ 65.800.
b. Inflation rate 1,6%
c. The Country has a stable government
d. Has fully integrated road and rail network
Country C (Asia)
a. Population 110 milion
b. GDP US$ 3.800
c. Growht rate (last year) 8,9%
d. About 70% of the population in major cities are under the age of 30
Country D (Asia)
a. Population approximately 262 milion.
b. GDP US$ 3.580.
c. Several modern, well run airports, low rates for handling cargo.
d. Profits are tax free for the fisrt three years after a factory has been built.

Disadvantages
Country A (Europe)
a. Growth rate (last, year) 2%
b. Wage rates : rising in major cities.
c. Political problem : People in some southern provinces want to become
independent.
Country B (Europe)
a. Population 4.6 millones.
b. There are generous tax credit for building new factories.
c. There are strict new laws on pollution.
Country C (Asia)
a. GDP US$ 3.800.
b. Road network needs a lot of investment.
c. There is a strong protest movement against international companies.
Country D (Asia)
a. GDP US$ 3.580.
b. A lot of paperwork is required for new businesses.
c. Unions in cycle industry.
Rank About Country :
1. Country D (Asia)
2. Country B (Europe)
3. Country C (Asia)
4. Country A (Europe)

Decision :
I chose country D that is located in Asia, I Think is the opinion because it has a
great geography and because the people is unskilled, we have the opportunity
to pay them average wages and because of that we can invest in the rebuild
road and rails.