GOMAN MARKETING COMPANY

GOMAN COMPANY Name Course Lecturer School Date a) Been based in Poland, Goman company faces a market which seemed to be monopoly where state controlled the distribution market. The company is well known for its importation and distribution of sugar, coffee and tea throughout Poland. It is till 1992 when Goman faced a tough competition since several distributers had joined the market and therefore there was the need to implement some measures by Goman Company for them to remain in the competing market. This paper will assess whether Goman was to expand its capacity, maintain the capacity that they already have or whether to improve their channels of distribution and whether by increasing the number of vans will make it better or worse for the company. The channels of distribution as well those of transportation were made possible to increase due to freedom in the market. For this reason, Goman strategy was to expand its capacity as well maintaining and improving their services to customers. The main elucidation for this was for Goman Company to increase their productivity as well the delivery system capacity. For these reasons, they considered the option of acquiring larger vans, but they had not decided whether the vans or the buckets were suitable for their solution. Though we have limited information regarding Goman Company the co-operative programme between the Warsaw School of economics and the Carlson school of management was developed in 1992 and published in 1996 were we will assume it was dome for three years and evaluate what profit or loss they acquired during this period and be able to come up with the supposition for the Goman company. The sales per day per van (smaller vans) ware estimated to be PLN 7,500 while those of 15-20m3 was estimate to be PLN 10,800 and from this we can note that the average delivery is 300 time where 25 is for 10-12 m3 and 36 for the larger vans. If the same assumption is taken for three years, then the sales could be PLN 8,212,500 for 10-12m3 Vans and 11,826,000 for 15-20m3 vans and we get a difference of 3,613,500. If the same evaluation is done to the cost of vans, plastic buckets for again three months, we will get to see the cost of capital time 3/12 of the year appreciated to that of the truck and since the fundamental thing for Goman company is to deliver goods within 48 hours, it clearly appears that getting hold of a larger van will generate good profit since the number of sales increases compared to that while small vans are used, and here we can say that the larger the van the more profit is attained. Goman Company faced increased competition in 1992 and the idea of whether to purchase new and larger vans came but the problem is that the company was not sure whether the increased cost of purchasing new vehicles was justified and on the other side, the option of the new bucket was under consideration and this give as a reason whey the Warsaw could purchase bigger vans since the profit increases hence well progress of the company. The other thing that could contribute to the purchase of bigger vans is that though the transportation system was seen to be like monopoly, the state companies and the operating trucks ...