'Eastwind Trading Company Essay\r'

'The potential opportunity and pertinacious term sustainability of Eastwind Trading Company lies in the uniqueness of their ware. The Swanson pearls are the only remaining collection of camp-made freshwater pearl buttons in the world. The amount is control and cannot be easily duplicated due to current environmental condition. Therefore, the situation that no one else carries these types of buttons is the main rivalrous return the Eastwinds Trading Company posses.\r\nThis exclusiveness, however, can in addition result in the lodge’s weakness: very perishable, expensive, and difficult to handle small items that consume careful organization and specialization to control costs. The conjunction is still in the existence stage. Gail and Martha are straightway focusing in getting enough bills to cover all the expenses the acquisition of the clientele pass on bring. However, they may also need to center their heed in how to generate enough tools to make their lin eage expand and become a viable company.\r\nBy having a product that is unique and hard to duplicate, this advantage is long-term. There is a great opportunity in expanding the business by creating new bias of change the pearls. Hiring sales events representatives that will cover all the nation, glide path clothing manufacturers and de residenceers that will buy the buttons at sweeping price and covering the areas that were previously uncovered by the Swansons are some of the main goals of Martha and Gail.\r\nThese goals will submit the business at a competitive advantage against competitors by satisfying the necessitate of customers that would be attracted by the exclusivity of the buttons. The key risk for investors is that button business is much(prenominal) an unconventional deal that it may result unattractive. The guide for exclusive buttons in the manufacturer industry as there are other types of cheaper fastenings that can be used for clothing i. e. Zipper and plastic buttons may be decreasing.\r\nConsequently, the Eastwind Trading Company needs to use some sort of diversity in its draw off to supplement the sales of the raw material when the command for buttons is low. Martha and Gail have experience in management and trade which makes a good addition to the development and conquest of their future business. Their experience can be utilize in the development of a new strategy that will re- introduce the pearls in the market eon expanding the product in areas that were never covered by the previous wners.\r\nThe fact that the raw material could be cut off leaving a semiprecious stone that could be mounted as earrings, necklaces or rings is a plus for the business and needs to be exploit at its maximum. Despite the fact that the pair was advised by the monetary proponent that they will be working in an â€Å" anemic lending environment, they sell the bankers only the concept of the buttons business, ignoring the to a greater extent pro fitable concept of selling them as jewelry.\r\nAs a result their offer was rejected by about 10 financial institutions. Finally, Stadium entrust would lend the money but only if stock-purchase warrant by the Small Business Administration (SBA). By having the SBA guaranteeing their debt Martha and Gail may be removing the bank’s incentive to work directly with them. If they encounter a financial problem they may be ignored by the bank instead of getting assistance as borrowers since SBA is guaranteeing the loan by 90%.\r\nThe fact that the company’s loan has to be personally advised by their owners may be a downside for the negotiation. Gail and Martha’s personal assets may be affected if this approximate goes wrong. We hardly recommend Eastwind Trading Company to go extremely careful the terms of their loan, see if the loan is right for them and confirm that what the bank is offering is what their business really needs to flourished and succeed before the y sign any agreement with the lender. As for right at one time we will turndown Eastwind’s project.\r\nThe venture has no strategy in place to explain how the company plans to diversify itself through the use of new products or new services related to the existing product except for the vague ideas associated with the jewelry’s’ debut which is in fact the most profitable option. When a business is such an unconventional deal as the sale of buttons is, it may result unattractive. The key to supremacy will be then to create a really strong business plan, marketing strategy, a good team of sales rep, well-organized channels statistical distribution and an aggressive advertizing campain in order to sale your ideas and pursue your business aspirations.\r\n'