French tiles corp. (FTC) is a French company based in the northern part of France. It is own by Mr. Bourdon. Recently he has been able to develop a new process of synthetic tiles. These new tiles have a good capacity of isolating temperature, humidity and noise. Because of this he has been able to sell them at a higher and more expensive price than the competitive product.
Customers of the corporation:
- Private customers revamping their houses.
- Small entrepneur for private.
- Architect, engineering officers and final customers.
Two people to help bid the tenders for significant orders. Example:
- Railway (public tenders).
- General contractors or civil builders (direct contacts and private tenders).
- Promoters of offices and habitation (Public office for low cost or private promoters).
Competitors: (Facing problems where FTC benefits).
- Italian manufacturers: Handicapped by transportation of heavy product.
- Eastern Europe manufacturers sell more current products but cheaper.
- Delivers on site.
- Good penetration in neighboring countries.
- Turnover $ 5 M for the last 6 years.
- Need for investments decreased.
- Plant is well run.
- Products satisfying customers.
- Orders come in easier.
- Patent registered to cover its process.
- As Italian manufacturer are handicapped by transportation of the heavy product this will transform to an advantage for them.
- Manufacturing cost 70 % of sales.
o 34 % Direct labor (VC).
o 30 % material (VC).
o 6 % plant overhead (VC and FC).
- 3% profit margin after tax.
How their international action should be planned?
International action is a very essential for business survival it has been adopted by several business in order to have growth .Example : FIAT company in the mid 1990's has expanded to EU...