Sorzal Management

Situational Analysis

Sorzal has been an importer and distributor of wise variety artifacts since the 1900s. Today, Sorzal has many competitors in this artifacts business. Many competitors and even Sorzal try to sell their products at a cheaper price. Some areas try to increased trade regulations, which made it harder to export or import items around the worlds. Even though Sorzal has face many problems through out the years, Sorzal still have a gross sales about $25 million and have increased at a relatively constant rate of 20% per year over the last decade.

Problem

• The key problem is that Sorzal should make a decision to whether or not they should sign a contract with a mass-merchandise department store chain.

• The mass-merchandise department store chains want to increase the line of Sorzal products and an assortment of authentic items.

• If Sorzal agree to sign the contract, the chain would purchase the products at 10 percent below Sorzal existing prices and that its initial purchase would be for no less than $ 750,000.

Alternative Plans

• Sorzal can sign the contract with mass-merchandiser

• Sorzal can not sign the contract with mass-merchandiser

Advantages- Sign the contract

• At least $4 million annually in sales

• Sorzal able to expand their market share

• More products for customer to choose from

• Competitive advantages

Disadvantages- Sign the contract

• Triple its replica production

• Not a unique company anymore

• Have different business strategy

• Customer might found it difficult to continue do business with Sorzal

Advantages- Not sign the contract