This conversation is, in effect, a mini-presentation. Charlie Styles, CEO of a distribution company,
is presenting an expansion project to the Board.
Ladies and gentlemen, please feel free to interrupt if you have any questions. Now, if you’ll direct your attention to the screen ...
Over the past 3 years, our business in Asia has grown by leaps and bounds. 22% of our revenue now comes from there,
compared to 9% just 3 years ago.
You’ll notice from this trend chart that the volume of business in this market is projected to increase by 60% over the next 5 years.
Based on past performance, we would normally pick up 40% of this market.
However, some of our Asian clients are already complaining about delivery times,
but because of our reliance on foreign distribution firms,it is difficult to be very pro-active in dealing with them.
If we don’t correct this situation, we stand to lose some existing customers,
and the loss of reputation could hurt us in acquiring new ones.
Therefore, I propose that we immediately set in motion the creation of 3 Asian distribution centers,in Beijing, Tokyo, and Seoul.
We could have them operating within 6 months, and be in a much better position to deal directly with our customers.
Ladies and gentlemen, if we don’t act on this right away, I’m afraid we’re going to lose some market share.
Our main competitors already have their own Asian distribution centers,
and some of our customers may gravitate to them if we don’t act quickly. Thank you.
