Write in memo format a response to your Manager, based on the information presented below for the Duncan Company and also based on your additional research. Your Manager has advised you to make any assumptions where necessary. Duncan Company is a large manufacturer and distributor of cake supplies. It is based in United Kingdon (Headquarters) It sends supplies to firms throughout the United States and the Caribbean . It markets its supplies through periodic mass mailings of catalogues to those firms. Its clients can make orders over the phone and Duncan ships the supplies upon demand. The main competition for Duncan’s comes from one U.S. firm and one Canadian firm. Another British firm has a small share of the U.S. market but is at a disadvantage because of its distance. The British firm’s marketing and transportation costs in the U.S. market are relatively high. a) Duncan Company plans to penetrate either the Canadian market or two other Caribbean Countries (Jamaica and Haiti). What factors deserve to be considered in deciding which market is more feasible? b) Given that one-third of the company sales are exports to the United Kingdom and invoices for exports are in US dollars, the demand for its exports is highly sensitive to the value of the British pound. In order to maintain its inventory at a proper level, it must forecast the total demand for its products which is somewhat dependent on the forecasted value of the pound. In your memo separate demand-related factors from the supply-related factors, that may influence exchange rate movements. Include any possible government-related factors and be specific. (Tie your description to the specific Duncan Company case background provided here).
Write in memo format a response to your Manager, based on the information presented below
for the Duncan Company and also based on your additional research. Your Manager has advised
you to make any assumptions where necessary.
Duncan Company is a large manufacturer and distributor of cake supplies. It is based in United
Kingdon (Headquarters) It sends supplies to firms throughout the United States and the Caribbean
. It markets its supplies through periodic mass mailings of catalogues to those firms. Its clients can
make orders over the phone and Duncan ships the supplies upon demand.
The main competition for Duncan’s comes from one U.S. firm and one Canadian firm. Another
British firm has a small share of the U.S. market but is at a disadvantage because of its distance.
The British firm’s marketing and transportation costs in the U.S. market
are relatively high.
a) Duncan Company plans to penetrate either the Canadian market or two other Caribbean
Countries (Jamaica and Haiti). What factors deserve to be considered in deciding which market is
more feasible?
b) Given that one-third of the company sales are exports to the United Kingdom and invoices for
exports are in US dollars, the demand for its exports is highly sensitive to the value of the British
pound. In order to maintain its inventory at a proper level, it must
products which is somewhat dependent on the forecasted value of the pound. In your memo
separate demand-related factors from the supply-related factors, that may influence exchange rate
movements. Include any possible government-related factors and be specific. (Tie your description
to the specific Duncan Company case background provided here).
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