Dorchester, Inc. is a U.S. based conglomerate. They have seen a marked trend tow

Question

Dorchester, Inc. is a U.S. based conglomerate. They have seen a marked trend towards their competition expanding operations internationally. Dorchester, Inc. is interested in purchasing a company that specializes in consumer electronics.
Research three potential takeover targets that are based in three different countries and have substantial operations overseas.

Provide a three to five page (excluding title and reference pages) economic assessment to Dorchester, Inc. management regarding the pros and cons of buying a company that is based in each of the three countries.

Explanation / Answer

The three potential take over targets which are based in three countries are -

1) MIRC Electronics Ltd - India

2) Changhong - China

3) Kyocera Corporation - Japan

MIRC Electronics Ltd. - MIRC Electronics ltd is a company based in India. This company specializes in consumer electronics like Televisions, Air Conditioners, Washing machines, Microwave oven's and mobile phones.

Pros of buying the company

1) This is the oldest electronics company in India, well known for its television sets. The company is very ethical and has a very well reputation in India.

2) MIRC Electronics won "Award for excellence in electronics" award in 1999. This tells how company excelled in the electronics domain in the past.

3) This company is awarded as "The most trusted brand" award in 2014.

Cons:

1) The company has not made any significant developments from few years.

2) The position of MIRC electronics in the stock market is very low.

Conclusion: MIRC Electronics will be a good option for Dorchester Inc if it plans to have its presence in India

2) Changhong - Changhong is a Chinese Consumer electronics company based in Mianyang, Sichuan. The company was founded in the year 1958. The company is specialized in manufacturing Television sets. It also manufactures other products like Refrigerators and air conditioners

Pros of buying the company

1) Company is second largest manufacturer of televisions in China. In 2004, 90% of the television sets exported from China to United states are from Changhong.

2) Company has minimal presence in North America.

3) Responsibility, Innovation and strength are three traits of the company

Cons:

1) This is a Chinese based company, so dealing with Chinese government could be major drawback.

Conclusion : Changhong will be the best option, if Chinese government agrees to this purchase.

3) Kyocera Corporation - Kyocera is a Japanese multinational electronics and ceramics manufacturer based in Kyoto, Japan. Company is specialized in printers, digital imaging systems, electronic devices, telecom equipment, semiconductor components, solar power generating systems etc.

Pros:

1) Since that is a Japanese company, they follow strict quality norms.

2) Very high customer satisfied products is what the company offers

3) In the year 2007, the company has been awarded with "Recycler of the year" award.

Cons:

1) It is specialized in other domains also like - ceramic products, photovoltaic modules etc which is not necessary to Dorchester.

2) Purchasing of the Consumer electronics division only, can be little difficult.

Conclusion: If the Consumer electronics division is sold, then this will be best option.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.