San Fabian Case Study

Cast:

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 market
David Leong – previous president of MacDowell Philippines who had protested the aggressively grown
     capacity but had been overruled by MacDowell’s “experts”

Questions for San Fabian:

1)    What does San Fabian bring to its relationship with MacDowell? Do you think San Fabian has been a good distributor for MacDowell?  Why?

-    Experience navigating heavy corruption through the Philippines’ political and economic system
-    National coverage that was partially built up to support the MacDowell product line
-    Strong brand name built on decades of high-quality service and products
-    Exclusive-only basis approach to distribution has allowed San Fabian to spend heavily on targeted advertising, consultations and customer support on behalf of MacDowell
o    Critical since MacDowell’s products, while high quality, ...
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