Descol Export Plan

10 October 2016

In this export plan you will read about various aspects, which we have investigated in order to compose this export plan. We have given a description of Descol, covering its history, the management of the company, the export team, an overview of the sales/revenue/financial stability and stating the goals and objectives of Descol. Furthermore we have also given a description of the product that Descol is currently providing in the domestic and international market, and the growth potential in Argentina will also be examined.

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Another aspect that is included in the export plan is the new foreign market place analysis. This includes an explanation of the rationale for exporting and rationale for the selected foreign market, a country profile, a cultural profile, and also an industry profile covering the direct customers and competitors. What strategies will be used to successfully enter the market can also be found in this export plan, covering strategic alliances, the target customer profile, new foreign market product description, pricing strategies, sales and promotion strategies, and logistics and transportation.

The international law will also be looked into, will there be any disputes to be addressed in the sales contract, are there any language considerations, what are the contract terms and conditions, is there product liability to take in consideration, will there be intellectual property protection and what are the agreements with the sales agent and/or distributor.

Moreover, this export plan provides a financial analysis, including the facility and equipment requirements, a sales forecast, the costs of goods sold, projected international income statement, projected international cash flow statement, a breakdown analysis, the financing requirements and as last the financing sources. Risk management is also included in this final report, covering the risk of the country, commercial, currency, internal and the market. For the final part of this report, you will read about the research methods and theoretical bases, what research methods and techniques have we used in preparing this export plan.

From our findings we can conclude that Argentina definitely has market potential for Descol, and in the best case scenario according to our calculations Descol will be able to make profit starting from the fifth year. 2. Company Description 2. 1 History I. Company Development Descol Kunststof Chemie BV was founded by two formers Sikkens BV employees in 1965. At first, the company was only focused on painting services, and offered a few products, which were various epoxy compounds for the building industry.

Later, the company realized the potential of polyurethane material, which was used to produce seamless chemical resistant flooring. This discovery led to the development of the Pulastic brand in 1968, a type of flooring mainly designed for in-door sports. In 1970, the first sports floor was installed in the Marimba Hall in Rijswijk. In the following years, Descol started introducing Pulastic to adjacent countries of the Netherlands, and the first target of this export was Belgium.

Their world-leading branded products are all proven solutions and create value for our customers. It is Descol’s mission to be a durable and competitive partner for your champion team, for you as athlete, trainer, facility manager, architect, contractor, dealer, supplier, social partner or employee. Descol aims to be a world leader in indoor polyurethane sports floors, be an innovative supplier of sports floor solutions in general and to provide an important value to the Sika success in polyurethane industrial flooring. Descol is a company that aspires to have long-term partnerships with internal and external parties by creating a durable added value for challenges in the field of polyurethane sports floors.

This can be the end-users with a specific requirement for a sports floor, dealers with a need for commercial and technical support, raw materials suppliers with unique products, or employees with the ambition to develop. Descol and Pulastic stand for professional supplier of solutions, innovative systems and high-quality products, a trustworthy and pleasant partner for all parties, such as customers, shareholders, current and future employees, suppliers and the community, High ethical and environmental standards, stability. Descol develops the market by committing itself to the customer. We are focused on a long-term customer benefit, loyalty bonding, renewal and teamwork.

Our customers are the users of sports floors, shareholders, and operational managers of sports facilities, architects, contractors and professional distributors. Descol serves customers in the Benelux with turnkey-solutions and service and international customers with certified system designs and materials as well as commercial and technical support. Descol assists all of the decision-makers. Descol concentrates all activities to global market segments where we can be a technological leader and acquire the first or second position in those markets. At all markets, we present ourselves with the Pulastic brand name, supported by the addition of Sika / Descol.

Descol targets itself to transform available and newly developed raw materials of different origins into innovative polyurethane compounds and coating products, whereby our own certified sports floor systems can be applied. For the most important raw materials and intermediates Descol relies on strategic alliances with suppliers. Only if an attractive output can be realized, does Descol offer trading products in the field of sports flooring to achieve optimization of the value added client file. Descol’s tries to maintain a sustainable increasing cash flow and an above-average efficacy on capital with their shareholders. Descol’s employees are their best valued partners.

Descol is as proud of them as they are proud of Descol. The working atmosphere at Descol is a blend of entrepreneurial spirit, renewal, performance, and mutual respect. We learn from each other. This is the Descol spirit. Descol strives to be a useful and professional partner for the society and pay a lot of attention to the environment and sustainability. Key elements for Descol are traditionally: -Trustworthiness -High innovation -Complete package of products and services -High quality -Excellent service -Expertise -Honest and reliable value for money spent. -Descol’s core values -Courage for innovation -Strength to persist -Pleasure of working together

The organization structure of the company is described as detailed as the diagram below: * 76 Employees * 76 Employees Scheme 1 Employees The sustainability policy of Descol has been taken in consideration and followed strictly because the company wants to maintain production efficiency, and also reduce damage done to the environment. By doing this, Descol focuses on three main factors: * Megatrends: the on-going interests of the world such as Energy and Raw Materials, Climate Change, Water, Infrastructure, and Social Stability. * Sustainable Entrepreneurship: Descol cares about Environment and Safety, the balance between environment and people. Moreover, they also care about the safety and health of their employees. Finally, Descol cares about the growth of society. With these considerable thoughts and actions, Descol has objectives and directions for their own development. III. Identification of Key Personnel, Summary of Qualifications, and Exporting Experience. Descol believes its employees are the best valued partners. Descol is as proud of them as they are proud of Descol. The working atmosphere at Descol is a blend of entrepreneurial spirit, renewal, performance, and mutual respect. We learn from each other. This is the Descol spirit. Descol strives to be a useful and professional partner for the society and pay a lot of attention to the environment and sustainability.

The key personnel of Descol consist of the General Manager, a Manager Export, an Area Manager Export and various other employees. These key personnel offer a great quality and knowledge of their product. Most of these men cover great area’s spanning from USA to Russia, all over the globe. Descol has been using distributors as an export strategy in the past, present and will be doing so in the future. Descol has a worldwide network of distributors active in the field of sports flooring. In past Descol was exporting only to nearest countries, such as Belgium and Switzerland. Nowadays Descol is exporting to over 60 countries. In 1994 Descol was awarded for the quality Organization with the ISO-9001 certificate.

Pulastic Led Court was awarded “Dutch Sports Innovation Award 2009” on October 13th 2009, which proves the creativity, and ability of Descol’s team. 2. 3 Export Team I. Identification of the Export Staff Mr. Peter Minnee is the manager of export department and the charger of foreign region (China, Japan, and America) Within Descol there are seven people who are responsible for export: Peter Minnee Export Manager Arend Kooistra Area Export Manager Baobin Sun Sales manager in China Miranda Belder Customer service Veronica Ruano Marin Customer service Zubeyde Karkis Customer service Errol Breukers Manager Benelux The main tasks of the Export Managers are to make and maintain the export process, implementation process, and contacts of customers in their country of responsibility. II.

Evaluation of the Export Staff One of the reasons that Descol has become leader of the sports floor surfacing market is skill and knowledge, the employees have to master many foreign languages, such as English, French, Spanish and Japanese. The main characteristic of Descol is the cross culture. The company needs to fulfill customers coming from different cultural backgrounds. All employees are learned to respect each other without discrimination. Descol trains their employees to prepare for international sales markets. Descol uses a wide range of transportation methods including trucks, trains, planes and ships. Descol exports the floor materials in metal cans.

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