Strategy Evaluation

The first objective: Set up PC manufacturing plants in the European Union area

Result:

We have bought one running plant from Nippon in the European Union in the first quarter. In the same period, we produced completed Personal Computers at this plant. An order to construct a new PC plant in the European Union was placed at the same time. This new plant started full production in quarter two. We successfully achieved this objective without any problem.

The second objective: Set up central and regional sales offices in the European Union   

                                    area

Result:

In the first quarter, we set up a central sales office in the European Union. We started to sell PC at this central sales office in the following quarter. In the second quarter, we placed an order to open two regional sales offices in European Union due to the increase in PC inventory. These two regional sales offices started to sell PC in the third quarter. This objective was successfully achieved.

The third objective: Control costs by focusing on exploiting efficiencies and using lower-   

                                 cost methods of achieve scale

Result:

The main ways to reduce the variable costs are: lower production cost in plants and buy chips at lower price. Every quarter, we invested sufficient amount in the method of improvement to control the variable cost. Moreover, we tried to figure out the cheapest chips supplier. In fact, we got the chips supplied at a reasonable low price through our partners. We agreed this objective was achieved.

The fourth objective: To set up strategic alliance with companies to achieve the

advantage of synergy.

Result:

TechniCo have successfully maintained relationship with stable suppliers of chips. As the relationship is in long term, we achieved synergy in long term. This objective was achieved.

The fifth objective:  Global expansion (The United States and Brazil)

Result:

This is along term objective for TechniCo. We did not do any global expansion up to this moment; however, we are seeking the opportunity to achieve this objective by observing the market changes. Until TechniCo has a stable market position in European Union, we will not enter the US and Brazil market.