San Fabian Case Study Essay

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Paul Cheng – founder of San Fabian; immigrated from mainland China in 1940; considered wealthy, with successful children and multiple lines of business (restaurants); 7% shareholder in MacDowell
Corazon Aquino – newly elected President (Feb 1987) of the Philippines
Carlos Valdez – Vice President of Sales (head of San Fabian’s salesforce)
Luis Rabat – assistant sales manager in charge of retail sales in Manila
Marcelo Amado – head of government sales in Manila
Toni Salgado – responsible for sales to the Department of Public Works
Jean Brevett – new president of MacDowell Philippines; previously headed MacDowell’s Australian operations, where he had streamlined distribution and grown sales 20% annually in a flat
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No – I believe that MacDowell’s are too strategically important to drop them entirely. They serve to complete San Fabian’s product portfolio, and while they will take a hit to their margins, MacDowell accounted for less than 14% of sales in 1986 (44.051/320.619) and will contribute even less going forward. The retail portion of MacDowell product sales accounted for 4% of San Fabian’s 1986 sales. I also believe that if MacDowell strikes out on its own and ultimately realizes that it’s made the wrong choice, maintaining a relationship with them is critical in trying to renegotiate a new exclusive distribution agreement.

4) What should Paul Cheng do now? What should his ultimate goals be? How should be go about doing it?

Paul Cheng should not lift a finger to help MacDowell as they try to penetrate the Filipino market
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