Export Marketing

Quiz 6

Umar Farooq 17U00609

Case Study 1 –

1. What advantages and disadvantages would you see for Yang Toyland in signing the
proposed contract with Gross-Versand?

Ans. The main point to note in any possible agreement between Yang Toyland and Gross-
Versalan is whether G-V will take delivery of the second half of their original order, or not. Only
that way, the investment in additional equipment will be viable economically, especially in the
short-run. Clearly, a more prominent measure of deal in units, either to G-V or potentially to
other clients’ needs to proceed and even be expanded if the speculation is to have since quite a
while ago run benefits. A significant danger with this sort of plan is that Yang Toyland turns out
to be excessively subject to a solitary client, which is especially disadvantageous since extra
capital hardware is required. One potential approach to support against G-V's not tolerating the
rest of the request is to discover a producer in Singapore or somewhere else in Southeast Asia
who might create units on an agreement fabricating premise.

The main advantages to Yang Toyland are gotten from the market broadening managed by the
request for G-V. Working with G-V prompts enhancement both geologically and in kinds of
conveyance outlets. Dangers are in this manner spread. Another potential benefit is the more
prominent benefit that could be created if G-V acknowledges the whole request. Additionally,
Yang can find out about the mail-request strategies for conveyance that could help it in trading to
other mail-request houses.

However, the main disadvantage in marking the contract is simply the contract itself. It is
excessively uneven. Everything is to the benefit and advantage of G-V. Providers have no
genuine advantages expressed. In the event that the items offered to G-V are fruitful, they may
be sold through other export and retail distribution techniques. In spite of Mrs Muller's remarks,
the assertion of general buy conditions says just that mail-request houses can't be provided with
the items offered to G-V. Y.C. requirements to explain this issue with Herr Clausen and should
demand that solitary mail-request houses be covered by the contact.

2. What should be Y. C.’s objective in his discussion with Herr Clausen?

Ans. The main objective of this discussion should be to reach an agreement which will be good
for both parties. Y.C. needs confirmation that the second half of the order will be accepted, if the
quality standards are met in the first half. These points should be the main objectives of the
discussion, but generally it should be about how these 2 companies can work with each for the
mutual benefits.

3. What topics should Y. C. discuss with Herr Clausen and in which order?

Ans. The main topic that Y.C should discuss with Herr Clausen are the following:

 Splitting of the order

 One-sidedness of the contract
 Future Plans
 How to avoid such complications further
 How to make communication process better between both companies.

There isn’t any specific order of these topics, but they firstly need to decide on how to resolve
the current issue. In this discussion all the topics should be covered that are relevant for reaching
out to the agreement for mutual benefit.

Case study 2 –

1. Are service companies like the Klako Group most valuable in ‘unique’ situations
like China or do they have a role in assisting companies wanting to enter markets
elsewhere, as, for instance, the European Union or North America? Explain
Ans. The Klako Group likes competitive advantage by helping other companies that want to
enter the Chinese market and giving an assortment of administrations to organizations after they
are in the Chinese market. As a result of their associations in different pieces of the world, they
could offer to help Chinese organizations keen on entering markets in those spaces. Yet, it would
require creating broad new information and abilities in regards to the objective business sectors
of Chinese organizations.
Big organizations like the Klako Group should participate in helping organizations with
restricted global information to create and execute plans to enter unfamiliar business sectors.
Disregarding the numerous wellsprings of data accessible, as talked about in the fundamental
book, more modest organizations would frequently profit by help by an assistance organization
that has broad information on and contacts in their objective market. Issues for the help
organization would incorporate discovering possible customers and persuading them regarding
the requirement for help.

2. In what ways would you expect the Klako Group to be able to assist a company
interested in finding and making arrangements with:
 A Chinese supplier
 A Chinese marketing organization
 A Chinese partner

Ans. In spite of the fact that Klako spends significant time in offering types of assistance inside
and through Hong Kong, they have workplaces and contacts in Shanghai, Beijing, and Shenzhen.
They can utilize their own encounters and their contacts, and contacts of their contacts, to help
discover and assess Chinese providers, promoting associations, and likely accomplices.