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  • Damar International: Case Discussion

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    Jainish Porwal
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    Damar International is considering expansion strategies in the US market. To do so, it would need to target mass consumers, which could increase profits but require changing its business model. It should also seek bank loans for expansion and establish better communication between the US and Indonesia to share order information. To protect against exchange rate fluctuations, Damar could use forward exchange contracts or clearing accounts. Shipment delays could impact Damar but obtaining investments that ensure stable cashflow and improving communications could help overcome this.

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    Damar International @04163610

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    Damar International is considering expansion strategies in the US market. To do so, it would need to target mass consumers, which could increase profits but require changing its business model. It should also seek bank loans for expansion and establish better communication between the US and Indonesia to share order information. To protect against exchange rate fluctuations, Damar could use forward exchange contracts or clearing accounts. Shipment delays could impact Damar but obtaining investments that ensure stable cashflow and improving communications could help overcome this.

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    96 views1 page

    Damar International: Case Discussion

    Uploaded by

    Jainish Porwal
    Damar International is considering expansion strategies in the US market. To do so, it would need to target mass consumers, which could increase profits but require changing its business model. It should also seek bank loans for expansion and establish better communication between the US and Indonesia to share order information. To protect against exchange rate fluctuations, Damar could use forward exchange contracts or clearing accounts. Shipment delays could impact Damar but obtaining investments that ensure stable cashflow and improving communications could help overcome this.

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    © All Rights Reserved
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    Damar International

    Case Discussion:
    1. Evaluate alternative expansion strategies for Damar International in the
    U.S.
     Damar must change their entire business model in order to expand further
    into the United States. They would have to target the mass market, which
    would increase cash flow and thus profits.
     Damar should seek bank loans to help them expand their business in the
    United States.
     Damar should establish a communication channel between the United
    States and Indonesia in order to provide timely order information.

    2. How can Damar protect itself against exchange-rate fluctuations?


     Damar should deal in forward exchange contracts to avoid fluctuations in
    exchange rates.
     Clearing Account Arrangements or Switch-trading

    3. What are the likely effects of shipment delays on Damar? How can these
    be overcome?
     Shipment delays can be caused by unstable cashflows, uncertainty in the
    supply chain, or communication breakdowns.
     These can be overcome by seeking investments from institutions or banks
    that guarantee timely payment to artisans and a stable cashflow.
    Improving communication with US authorities and providing appropriate
    documentation

    Jainish Vijay Porwal @04163610 1

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