INTRODUCTION
Damar International is a small scale business organization, founded in January 1984 in Virginia, a suburb of Washington D.C. It is a partnership firm owned entirely by Messers Soemantoro and Asche. Dewi Semantoro is the president while Ronald Asche acts as her vice. They import Indonesian handicrafts, such as; clothing, batik accessories, wood carvings, high-quality brasswares and furnishings from Indonesia since April 1984. Asides the president and her vice, Damars entire labour force are in Indonesia and all are Dewi Soemantoros relatives. Though, they are yet to break even, but an increased customer base has increased their sales revenue. They supply boutiques and small shops. Also, they participate in trade fairs, gift shows and handicraft exhibitions. Presently, their annual sales revenue is estimated between $20,000 and $30,000. The firm plans to expand their operation.
KEY ISSUES
The key issues are those of finance, the labour force and bureaucracy encountered with customs officials.
The source of finance has been only from borrowings from the relatives of the partners and some of their friends. A business this big would require much more than what she gets from family and friends. This in part has limited their growth, expansion and their sales revenue.
The labour force consists of just the partners and their relatives. A larger labour force is required to cope with the pace of growth of the firm, more marketers and those who would complete paper work. This would ensure improved efficiency and improved service delivery which would translate to increased sales revenues.
Bureaucracy encountered at the ports with customs officers is also due in part to the little labour force. This sometimes prevents the firm from meeting up with supplying their customers. Such was the case when goods were delayed at the ports when there were misunderstandings about labeling and stamping of the goods.
KEY WORDS
The key words include; Handicrafts, niche strategy, breakeven, middlemen, red tape, walk-in-scouting.
LIMITATIONS
The firm is limited by her little working capital. A higher working capital would increase imports, and increased imports would translate to increased sales which would increase the firms profit and invariably more money for expansion. Also, Damar is limited by low labour force. This restricts their work in a way.
The firm has limited capital and limited labour resources, yet occupies a niche in the market. Middlemen have been eliminated yet the products which are non standardized and unique in a way have been embraced by Americans. This feat was achieved because of Damar's unique marketing strategy, the partner’s administration prowess and the effective use of the president’s family connection.
They sell their wares directly to boutiques and small retailer outlets. Also, their presence at trade fairs allows them contact with customers who in turn recommend them to other customers.
Her main weakness is the way the business is financed. The amount of money gotten from friends and family is too small to make the firm a top competitor in the market. It would benefit immensely from huge loans and credit facilities. This would surely place her on the path to greatness.
Limitless opportunities abound to the firm. Damar continues to attend trade fairs and also interact with her customers who are impressed with the products and subsequently recommend new customers and bigger business opportunities to the administrators. Example is the friend who recommended the French market to the leadership of the firm.
Bureaucracy is a major threat to the firms continued operations. Unwarranted delays at the ports result in inability of the firm to meet deadlines set by customers. If this trend continues unabated the firm would lose its confidence and trust of customers and this would spell doom for the firm.
In conclusion, Damars is an American small scale business that imports handicrafts and sells to the American public. Despite, the low capital base and low labour resources, it is doing fairly well. However, the company can become a giant in the industry if her capital base can be increased, more workers are employed and probably all her activities are computerized.
