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Word Count: 1,094
Introduction 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 FTC advantages - 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 FTC disadvantages - 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 1990s has expanded to EU market where now their export has totaled 60 of their total sales How and why should the company expand internationally First in order to expand
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