preview

Fins Tanaka

Better Essays

Tanaka
…Committed to Quality, Excellence and Building Relationships
PRE-NEGOTIATION STRATEGY REPORT
Prelude
Over the years, Tanaka has become a name synonymous with quality, excellence, and dynamism. With a humble beginning in the city of Tokyo, we have built ourselves as a strong, respectable, and successful electronics corporation in Japan. We are one of the leading manufacturers and exporters of microanalyzers with a world market share of 20%. With the objective of expanding our global reach and maintaining our competitive position, we are building strategies to invest in the emerging markets of the Exotican continent, with the primary focus being on the countries of East Tropicalia, West Tropicalia, and Paradiso.
We, the …show more content…

This is required to ensure our ability to implement the cost leader strategy. Moreover, due to expected ramping of sales over time, rates starting low and increasing with time are highly undesirable. Instead, either a constant low rate or a higher initial rate decreasing with increased sales is desirable. Our target tax rate is 5%, and regional import duties of 0% along with a non-regional rate of 6%. The target dividend tax rate is 10%;
�� The target for technology license fees will be set at 3%.
Desired Entry Mode:
We propose a joint venture, in the emerging markets of Exotica with local companies of Paradiso and Tropicalia. Tanaka 's first effort will be directed towards negotiating with SysTrop S.A and
ParaInfo S.A which are currently distributors for our microanalyzers in East and West Tropicalia and Paradiso.
ParaInfo will produce the output sub-assemble and final assembly, while SysTrop will produce the input sub-assemble. Each plant will be in the country of its respective locality. In respect to
East and West Tropicalia, the country giving the better offer will be chosen. Logic subassemblies will be imported from Japan. Each JV will be apportioned with their contribution toward the entire enterprise. Plant sizes are ideally to be one standard each.
It is expected that each JV 's equity will be determined by capital contribution of the partners.
Tanaka will directly provide at most 60% of the capital

Get Access