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saq TM. Who’s holdin’ your balls?. saq TM in Canada. Goal: To produce high quality bags that can resist “wear and tear” New Corporation Sells high quality drawstring bags Targets athletes Licensing agreement with NBA Manufactured in China. Canada. saq TM Organizational Structure.
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saqTM Who’s holdin’ your balls?
saqTM in Canada Goal: To produce high quality bags that can resist “wear and tear” • New Corporation • Sells high quality drawstring bags • Targets athletes • Licensing agreement with NBA • Manufactured in China
Canada saqTM Organizational Structure
Expansion Proposal: China
Southeast Asia Summer: hot and rainy Winter: cold and dry Climate varies China?
Demographics • Largest population in the world • Age Structure: • 0-14 years: 20.1% • 15-64 years: 71.9% • 65 years and over: 8% • Unemployment rate:4% • Poverty? • Labour Force: 800.7 million • Male:Female
GDP (PPP): $7.099 trillion Trade Surplus: $315.4 billion Industrialized; Developed Mixed Economy Rapidly growing private sector Literacy Rate: 90.9% Economy Exports:
Currency • Chinese Yuan • Hard Currency • Needed for: • Raw materials • Pay Chinese employees
Culture • Mandarin • 3 main religions • Very hospitable • Small families • High context • Seniority • Han • Basketball
Government • Communist • Quotas • Tariffs • Licensing • Foreign Branches • WTO
Focus: Beijing • Largest City in China • Industrialized • 17, 430, 000 people • GDP per capita: $17, 063 • Han culture • Target market: • Males, 12-25
saqTMOrganizational Structure International Factory Workers
What we’re about… Multiculturalism Total Quality Control Individualism Fair Trade Fair Trade Polycentricism Social Responsibility
Production Natural Resources Capital Resources • Nylon • Rubber • Steel • Magnets • Manufacturing Equipment • Money • Factory in China Human Resources • Employees • Skilled Workers
Production Product Developers at Headquarters Canadian Retail Stores Logistics Ideas via E-mail Shipping Overseas saqTM Factory in China JIT Trucks Subcontracted Truck Company • Semi-automated • TQC B2B Raw Materials from Chinese Companies Chinese Retail Stores
Yao saqTM • To generate awareness of welfare and wellness of kids in China and the US • 25% of sale goes towards foundation
Costs in China • Bag to Retailer • $21.00 $39.99 $54.99 • $39.99 = 252.60 CNY • $54.99 = 347.43 CNY
Finance • Selling shares (TSX) • $5 per share with 10 million shares • Credit • Large raw material shipments on credit terms • Bonds • Factory in China
Legal Affairs • Patent: TightSeal • Trademark: saqTM • License agreement: • NBA • China • Contracts with major athletic retail stores
Brand • Specialized drawstring bag companies? • Advantage: • vs. cheap Chinese bags • vs. Nike, Adidas, Reebok, etc. • “Birkenstock of bags”
Advertising • Internet users: 253 million • Billboards • Magazines • Yao Ming
Warranty and Liability • 10 year product warranty • Liable for damages to product • Warning Label • Not liable for injury or death to consumer • Ensure product quality; avoid negligence
What’s Next? • Expansion into other cities around China: • Tianjin • Shanghai • Develop a product that is equally appealing to women
Bibliography • http://www.theyaomingfoundation.org/ • www.nba.com • http://www.indexmundi.com/ • http://www.skygarden.ca/Images/canada-flag.jpg • http://www.lystad.us/china/misc-jpg/twenty-yuan.jpg • http://www.wired.com/images_blogs/gadgetlab/china-iphone.jpg • http://www.sandan.com.hk/image/FactoryChina_l.jpg • http://www.germes-online.com/direct/dbimage/50263117/Inside_Outside_Rubber_Fire_Hose.jpg • http://www.global-b2b-network.com/direct/dbimage/50210488/Stainless_Steel_Round_Tube.jpg • http://www.aristaflag.com/orange%20nylon%20fabric.jpg • http://www.ropeinc.com/catalog/nylon-doublebraid.jpg • http://www.filkab.com/images/category_pics/pic_1175_bg.jpg