Star Appliances Inc 5 Year Plan

.. re popular on the Hungarian market although their market shares are still low, approximately 8 percent. For example, many American companies are exporting products to Hungary from their European subsidiaries and warehouses. Whirlpool Hungary: Whirlpool Corporation established its Hungarian headquarters Whirlpool Hungary in 1992, which is 100 percent owned by Whirlpool Europe. Whirlpool Hungary is only involved in distribution, logistics and marketing activities and products arrive in Hungary from the company’s Western European factories.

Currently, Whirlpool Hungary has a nationwide partner and servicing network. Whirlpool Hungary sold about 200 000 white goods in 1998, which corresponds to a 30-percent increase compared with sales in 1997. The annual turnover of the company was HUF 6.7 billion. Whirlpool is the market leader with top-load washing machines and has a 34-percent market share in the sales of microwave ovens. Whirlpool Hungary has around 300 trading partners in Hungary that are wholesale, retail units and chain stores. Whirlpool products are supplied to wholesalers such as Herta, Cash & Carry facilities such as Cora, Auchan and Metro. Whirlpool Hungary opened its own brand-name show in the downtown area. Every third household has at least one household appliance with the Whirlpool brand. 3.

Best Sales Prospects: Star Appliances, Inc. considers the following product lines with good growth prospects: 1. Refrigerators 2. Dishwashers 3. Washing Machines 4. Microwaves 5.

VCR 6. Dryers 7. Hair Dryers 8. Vacuum Cleaners 4. Competitive Situation The Hungarian household appliances market has been dominated by Korean, Japanese, Western-European and U.S. products.

Recently, U.S. market share has fluctuated around 6 percent of the household appliances market. Imports of household appliances into Hungary account for 55 percent of the total market. Leading suppliers to the Hungarian market in 1998 were Japan: 24 percent, Europe (EU): 23 percent, Korea: 12 percent, USA: 8 percent, others 12 percent. Next to European and Japanese products, U.S. products are also appealing to Hungarian consumers, particularly large appliances, mostly washing machines, refrigerators enjoy good reputation. Despite the fact that U.S.

household appliance manufacturers enjoy a good reputation in the Hungarian market, U.S. exporters should not be complacent in assuming that it is an easy market to enter. Companies like GE, Whirlpool, which have local offices, were able to adopt their product design to meet Hungarian technical requirements. The fact that the EU has a membership agreement with Hungary provides more competitive opportunities both in terms of import duties and freight rates for products imported from Western Europe than for those from the United States. Dominant brands of household appliances in the market are as follows: Korea :Samsung, Goldstar and Daewoo; Japan Hitachi, Toshiba, Sanyo; U.S. GE, Whirlpool; Netherlands Philips, Atag, Pelgrim Germany Thompson, Bosch-Siemens, Braun, Miele, AEG Hungary Orion Sweden Electrolux Italy Merloni, Candy, Ariston, Indesit, Nardi France Moulinex, DeLonghi Spain Fagor Market share by product categories: Washing Machines U.S., German, Hungarian; Vacuum Cleaners German, Korean, Japanese; Dryers U.S., Japanese, Korean. . Japanese, Korean and German products dominate mostly the Hungarian household appliances market, except for washing machines market that has been dominated by the U.S. Whirlpool brand and refrigerators market dominated by the Swedish-Hungarian brand Zanussi-Lehel.

5. Product Name HS Code Import Duty washing machines 8422 9.5 percent spin-dryers 8421 8.5 percent vacuum cleaners 8509 10.6 percent The Value-added Tax is 25 percent in Hungary for all these products. 6. Testing procedures: Household appliances must undergo quality testing before they enter the official Hungarian trade channel. These testings are done by the Commercial Quality Control (KERMI) and Quality Control Institute (MEI). KERMI: The most important tasks of KERMI are the testing and approving of the products as well as registering imported and domestically-made consumer articles prior to entering the distribution channel.

A large number of consumer goods have to be tested according with Hungarian regulations. This procedure is regulated by Decree 5/1994 issued by the former Ministry of Industry and Trade. The most important task of KERMI is testing and approving consumer products prior to putting them on the market. A large number of consumer goods have to be tested according to rules. Products without quality certification cannot be passed through the customs and are not allowed to be sold.

KERMI’s activities include: technical testing and analysis, technical and scientific research, market research and public opinion polls, professional counseling etc. KERMI requires the following documentation for the registration procedure: exact name of the product, the producer and the country of origin, draft of the label and the application instruction in Hungarian, product documentation, The information/documentation provided to KERMI should contain the name of the product, name of the producer and its location, declaration about the innocuity of the product, name and address of the issuing agency. The applicant will also be required to submit samples for testing. The cost of the procedure is between HUF 60,000 – 90,000 (USD 300-450) plus 25 percent VAT. The exact fee is based on sample; an exact quotation price will be given to the applicant.

A twenty- percent discount can be given in case of serial tests. Length of the test: 30 days upon the arrival of samples, documentation and the quoted fee but additional fees will be charged to the client in the case of urgent testing which can be reduced to 15 days. MEI MEEI Ltd. carries out type tests to standard, safety tests, product follow-ups, factory inspections and quality system audits, which serve as a basis for its conformity certifications. The certification of products according to D1 is carried out against the Hungarian national standards and/or other mandatory regulations, while in the case of tests based on D2, the certification takes place against implemented harmonized standards. The Hungarian national standards are generally identical or equivalent in their technical contents to the EN/HD specifications or IEC standards.

MEEI Ltd. also undertakes to carry out full or partial type tests and certifications to standards other than those mentioned above but for which it is otherwise prepared. The assessment of the manufacturing process for the purpose of issuing a Certificate for Factory Inspection, may be carried out as follows: on the basis of an on-site assessment carried out by MEEI Ltd., or on the basis of audit report issued by an other inspection/certification body acting upon commission of MEEI Ltd., or on the basis of acceptance of factory inspection reports in English (CENELEC MC-6, MC-7), issued by an other inspection/certification body, recognized by MEEI Ltd., and performed previously, or on the basis of evaluation and acceptance of certificate and audit report, if the manufacturer operates a quality system certified to ISO 9001 or ISO 9002, a filled-in CENELEC MC-6B Questionnaire, proofs on regular checking of measuring-, testing- and monitoring equipment used during the process of manufacture or control, in English. 3. Recommendation on Entry Mode The key issues for consideration when entering Hungary are: The main brands competing in the market have already established a stable, permanent position; All main brands have local distributor that sells to retailers providing very competitive pricing conditions; Retail stores purchasing directly from the brand representatives dominate the market, this should be taken into consideration when bringing new products into Hungary. Recommended entry mode — Exporting Exporting – Star Appliances, Inc has had experience in exporting to foreign countries. We have had excellent performance in those countries such as Canada, Mexico, and Japan. Retail and wholesale distribution is developing toward western standards in Hungary.

In the past, large, state-owned monopolies controlled distribution, which was largely supply driven. During the transition period since 1989, the monopolistic state-controlled trading companies have been privatized and/or broken up, but a smooth-working demand-driven system has not fully developed and some inconsistencies remain. As a result, consumers cannot count on a regular supply of goods — all shoppers are familiar with the here today, gone tomorrow nature of inventory, although the use of newer technologies, such as electronic data interchange (EDI), is beginning to improve delivery of goods. Large-scale wholesaling is still embryonic and it is not unusual for retailing and wholesaling to be combined, sometimes even together with manufacturing. Although Hungary’s retail sector now includes some larger department stores and supermarkets, small family-run stores are still quite common. Examples of foreign chains with operations in Hungary include Auchan (France), Metro (Germany), Michelfeit (Austria), Ikea (Sweden), Baumax (Germany), Humanic (Austria), Julius Meinl (Austria), Penny Market (UK), Cora (France), Marks & Spencer (UK), and Tesco (UK).

A Hungarian corporation, Fotex Holding Co., has made a significant impact on the retail sector. Fotex is involved in such diversified market segments as optical, film developing, audio media, household appliances/consumer electronics, cosmetics and furniture. Recently, indoor shopping malls have arrived in Hungary. Star Appliances, Inc. thinks that it is not feasible to establish a sales subsidiary in Hungary now, because we would like the customers in Hungary to be familiar with our products and our company first.

We plan to use local agents and distributors, because they are quite familiar with the Hungarian market. Exporting may minimize the risk of dealing internationally by exporting domestically manufactured products either by minimal response to inquires or by systematic development of demand in foreign market. Exporting requires minimum capital and is easy to initiate. Exporting is also a good way to gain experience in conducting business in Hungary. FINANCING The Hungarian Forint (HUF) is fully convertible for business purposes. Because of a worsening current account deficit, the government moved to a crawling peg devaluation exchange rate policy in March 1995. Since then, the HUF continues to be a managed currency with a set monthly devaluation rate.

Most import contracts are secured by an irrevocable letter of credit (L/C) bank guarantee or involve a bank for remittance against documents. This practice is appropriate and recommended when there is no past relationship and experience with the buyer. The most common payment terms in this sector are 30, 60, and 90 days deferred payment depending on the product. Many U.S. commercial banks provide financial services in Hungary for longtime corporate clients.

The cost of local financing tends to be high (around 25%). Among the major international financial institutions, the European Bank for Reconstruction and Development (EBRD), the International Finance Corporation (IFC) and the World Bank have various project financing programs. Citibank and Bankers Trust are the only U.S. commercial banks currently in Hungary in addition to several U.S. financial service companies and consultants present in the market.

Hungary is eligible for all U.S. EXIMBank programs available to American equipment exporters. Appendices: Market share for White Goods: Whirlpool+ Ignis ElectroluxGroup AEG Siemens-Bosch Hajdu Gorenje Washing Machines 33% 26% 2% 14% 21% 4% Whirlpool+ Ignis ElectroluxGroup Siemens-Bosch Gorenje Goldstar Refrigerators 6% 74% 9% 7% 4% Whirlpool + Ignis Samsung Moulinex Goldstar Daewoo DeLonghi Microwave 28% 24% 7% 8% 18% 15% Total Market Size in pieces in 1998: Washing Machines (incl. Fronload, 160,600 – 24% increase compared to 1997 Topload, Washer+Dryer) Refrigerators: 182,700 – 22% increase compared to 1997 Microwaves: 184,600 – 21% increase compared to 1997 Source: Figures are based on preliminary and partial data of the Central Statistical Office 1998 Publications, Budapest, Hungary, on Foreign Trade Statistics issued by the Ministry of Economy, 1998 and U.S.-Hungarian Statistics issued by Kopint-Datorg Market Research Company. 1. External Environment Economic Japans economic strengths have been overshadowed by its difficulties for much of the 1990s.

Recession has brought a serious crisis since 1997. However, the overall economy continued to grow, companies did not shed great amounts of labor, and research and development sending went up. The government stepped in with a five-year economic plan of infrastructure spending. The World GNP Ranking is 2. GNP Per Capita is US$38160.

Global There were 5.3 million Japanese Internet users in 1996. The number is expected to rise to 31,950,000 in year 2000. While these are mostly businessmen using the net in connection with work, the number of household users is also increasing. 2. Industry Analysis 1.

Market Highlights & Best Prospects (Statistical Data) Unit: million of USD Estimated Annual Growth Rate 1994 1995 1996 1996-1999 Import Market 962.7 1,520.2 1,640.4 20% Production 26,624.5 31,201.1 27,022.0 1% Exports 3,256.9 3,187.2 2,701.8 -10% Total Market 24,330.3 29,534.1 25,960.6 2% Source: JETRO U.S. imports: USD 73.8 million Exchange rates: 102 yen, 94, yen 109, yen/USD Future inflation rate assumed: 1.3 percent 1996 import market share: U.S.: 4.5 pct, China: 19.4 pct, Germany: 11.2 pct, Taiwan: 9.3 pct, Thailand, 7.1 pct 2. Imports – According to JEMA, Japan imported USD 1,640.4 million of electrical home appliances an 8.0 percent increase over 1995 on a dollar basis (25.2 percent in yen terms). According to JETRO’s import data the major suppliers are as follows: Country 1996 Imports Percentage share (In USD million) China 317.7 19.4% Fr. Germany 183.7 11.2 Taiwan 152.3 12.3 R. Korea 125.7 9.3 Thailand 116.1 7.1 U.S.A.

73.8 4.5 Note: The above percentage shows shares of total imports of USD 1,640.4 million. The following tables show the breakdown of overseas suppliers of major electrical home appliance, by category. 1995 % Share 1996 % Share % Growth Electric Washing Machine China 13.8 17.4 23.9 29.4 73.1 Philippines 17.0 21.5 17.2 21.1 1.1 Italy 26.1 33.1 14.0 17.2 -46.5 R. Korea 3.6 4.1 10.3 12.7 217.5 Singapore 5.4 6.8 5.3 6.6 -0.2 USA (9th) 0.8 1.0 1.0 1.2 26.9 Other 12.3 16.1 9.5 11.8 — Total 79.0 100.0 81.2 100.0 2.7 Drying Machine for Clothes USA 0.4 30.9 0.5 33.8 12.9 China 0.2 18.2 0.3 24.3 37.8 Fr Germany 0.3 22.2 0.2 16.5 -23.6 Denmark 0.1 7.6 0.2 14.2 92.5 Taiwan 0.1 10.4 0.1 3.3 -67.2 Other 0.2 10.7 0.1 7.9 — Total 1.3 100.0 1.4 100.0 3.1 Vacuum Cleaner USA 57.5 50.3 35.2 34.0 -38.8 China 8.5 7.5 20.1 19.4 135.3 Taiwan 16.7 14.6 16.8 16.2 0.6 Malaysia 2.1 1.9 8.9 8.6 317.4 R. Korea 11.4 10.0 6.7 6.5 -40.9 Other 18.0 15.7 15.7 15.3 — Total 114.2 100.0 103.4 100.0 -9.4 Source: JETRO 3.

Expansion Strategy for the Future Five Years Star Appliances, Inc started exporting to Japan in 1990. Star Appliances, Inc has built up good reputation in both product quality and full after-sale services. According to our research, The market growth rate is expected to be about 2 percent per year for the next two to three years. Industry experts say that one key to future market expansion will be to present electrical appliances which fill an actual need, offer unique but simple functions, and have sophisticated designs which are not available in existing products. This market’s receptivity to our products is generally good. Our suppliers of electrical home appliances are advised to note that Japanese consumers are not generally interested in low priced, low quality products.

They demand reasonably priced, high quality electrical home appliances together with full after-sale service. In many cases, imported products have to be designed or modified to fit into the Japanese lifestyle and also to meet the Electrical Home Appliance and Material Control Law. Best prospects/key success features: Japanese consumers increasingly seek electrical appliances which allow them to enjoy higher and more comfortable living standards. In particular, products that fill obvious needs (e.g., products which offer great convenience, save time, and offer healthier environments or tastier foods) have bright prospects. For example: High-power vacuum cleaner – There has been a persistent concern in Japan about childrens dust and pollen allergies.

High-power vacuum cleaners with advanced technology (especially the ability to deal with dust mites, or dani in Japanese) are promising. Washing machine (drum-type)- Drum-type washing machines are relatively new to Japan because the noise and vibration have not suited Japanese-style housing. However, the first drum-type washing machines manufactured jointly by a European manufacturer and Sharp Corporation were well received, and other Japanese manufacturers have begun manufacturing similar products. In the next five years, Star Appliances will focus on product innovations and market penetration in our Japan market. We expect an increasing in sales by 15% by the end of 2004.

We are also planning on setting up a branch office in Japan in 2003. This branch office is a wholly owned corporation by Star Appliances, Inc. Setting up a wholly-owned subsidiary will involve more time and expense, but it can offer an effective means to guarantee better protection for proprietary information, obtain credit and penetrate markets which have subtle but substantial barriers to imports. Moreover, there is a perception in Japan that a company with subsidiaries is both more committed and more substantial and this perception can serve as a powerful selling point for that firm. A branch office of our company can engage in trading, manufacturing, retailing, services, or other business. A branch office may take and fill orders and carry out a full marketing program, including arranging for advertising, recruiting a sales force and performing all necessary promotional activities.

A branch is liable for payment of Japanese taxes. The branch must appoint a resident representative in Japan and must register with the Legal Affairs Bureau of the Ministry of Justice. In addition, the establishment of a branch office is considered a direct investment under the Foreign Exchange and Foreign Trade Control Law requiring reporting to the Ministry of Finance through the Bank of Japan within 15 days after the establishment of the branch office. Setting up a branch is also for the preparation of entering China in the future. Star Appliances, Inc thinks that China is a potential market for household appliances.

In order to target more Asian countries, a branch in Asia will be of great help for local industry survey and trend analysis. We would like to consider the branch in Japan as a bridge to more Asian markets. 1. External Environment Political/Legal – Canada is a young country, but it has a legal system rich in tradition. Under Canadas federal system of government, the authority to make laws is divided between the Parliament of Canada and the provincial legislatures. Common law, which is used in all provinces except Quebec, is based on principles that were developed in medieval England.

Canada is also governed by the rules of international law, whether based on custom or on treaty. The Canadian Dollar is a fully convertible currency, and exchange rates are determined by supply and demand conditions in the exchange market. There are no exchange control requirements imposed on export receipts, capital receipts, or payments by residents or non-residents. Prices for most goods and services are established by the market. The most important exceptions are government services, services provided by regulated public service monopolies, most medical services, and supply-managed and other agricultural products (including wheat, eggs, poultry and dairy products).

The principal sources of federal tax revenue are corporate and personal income taxes and the Goods and Services Tax (GST), a multi-stage seven percent value-added tax on consumption. The personal and corporate income tax burden, combining federal and provincial taxes and surcharges, is significantly higher than in the U.S. U.S.-CANADA Relations – The bilateral relationship between the United States and Canada is perhaps the closest and most extensive in the world. It is reflected in the staggering volume of trade — over $1 billion a day — and people — over 200 million a year — crossing the U.S.-Canadian border. Canada has an affluent, advanced industrial economy that closely resembles that of the United States in its per capita output, market-orientation, and pattern of production.

Growth in Canada’s export sector should continue to be fueled by ongoing strength in the U.S. economy and Canada’s low dollar. Global disinflationary pressures have more than offset the negative impact of the low Canadian dollar on import prices and consumer price inflation. Consequently, Canada’s inflation rate is at the lower end of the Bank of Canada’s one-to-three percent target band. Total two-way merchandise trade between the United States and Canada was US$334 billion in 1998 (Statistics Canada reports the total as C$505 billion). When services and investment income are included, total two-way trade was approximately US$365 billion, or US$1 billion per day in 1998.

(Statistics Canada reports the number at C$619 billion.) Regardless of which set of statistics are looked at, it is important to realize the magnitude of the bilateral U.S.-Canada trading relationship. Canada is the largest single-country export market for the United States. In addition, total two-way merchandise trade between the United States and Canada is larger than total U.S. merchandise trade with the entire European Union, or total U.S. merchandise trade with Japan. 2.

Expansion Strategy for the Future Five Years Star Appliances, Inc has entered the Canadian market in 1980. In the next five years, Star Appliances, Inc will keep exporting products to Canada. By the end of year 2004, Star Appliances, Inc expects an increasing in sales in Canada market by 15%. By establishing a manufacturing in Mexico in 2002, the labor cost and freight cost and overhead will be reduced. The cost of goods sold will be reduced by 10%.

1. External Environment Political / Legal – With NAFTA’s entry into force on January 1, 1994, Mexico lowered its tariffs on U.S.- and Canadian-origin goods. Mexican tariffs on U.S. goods are between five and 20 percent ad valorem, with the highest Mexican tariffs on agricultural products and finished motor vehicles. Under NAFTA, tariffs on U.S. goods will be phased out over a maximum period of ten years, varying by type of good.

Sixty percent of U.S. goods now enter Mexico duty-free. The North American Free Trade Agreement (NAFTA) continues to be a key factor in boosting Mexican exports and raising the overall level of economic activity. Global – The Mexican market is big: U.S. exports reached US$ sixty-seven billion for 1996.

It is also young: 50% of the population is under twenty-five years old. Mexican consumers like American products. They recognize most U.S. brand names and associate our products with quality and value. The leading sectors for U.S. exporters are heavily weighted toward intermediate goods and large infrastructure projects. Among the leading sectors are: Electrical Power Generation Systems, Electronic Components, Telecommunications Equipment and Services, Automotive Parts and Service Equipment, Pollution Control Equipment, Building Products, Management Consulting Services, and Mining Equipment.

2. Industry Analysis Analysis of major competitors Washer and Dryers Kenmore – Kenmore has almost 7,000 sales agents in Europe and the United States. It sells products to 106 nations and regions. With ambitions to become a famous global brand like Japans Matsu*censored*a, It also sells clothes washers to Japan and Mexico. Having chalked up 1996 sales of $747 million, Kenmore is some distance behind other global appliance brands.

Part of its growth will come from foreign operations. A Mexican plant makes refrigerators and washers. A Philippine factory is to begin production this year. Kenmore has built a domestic reputation for quality through the use of borrowed foreign technology. It is now relying on in-house research, allocating 4% of projected income (equaling almost $50 million) in 1998 and aiming to spend 7-8% of income for research by the end of 2000.

Kenmore is developing environmentally based technology which, Kenmore hopes it will be the green appliance manufacturer. Kenmore also will be turning out new versions of products tailored to Mexicos needs, such as a mini-washer that cleans a small load with little water. Another cornerstone of Kenmores operations is service. It has 2,500 sales and service outlets and a toll-free hotline, and promises delivery or repair of appliances within 24 hours. Maytag – Founded in Mexico City in 1947, is nowadays the leading enterprise in appliance sales and production, as well as in motors and compressors. Maytag operates various plants, located in Mexico City and four other Latin American countries. Besides Maytags end products, they manufacture their own plastic components, presses, compressors, transmissions and motors. For more than three decades, Maytag has refurbished its export industry, making it possible for their products to reach more than 40 countries in America, Europe and Asia.

With its rounded shapes and exclusive washing system, Maytag ?s automatic washers offer maximum cleaning without mistreating the fabric. Its basket, with 6,8 or 10 kilo capacity, is made with indestructible materials. They have also integrated multiple independent functions and an innovative ecological cycle that avoids unnecessary waste of water. All of this supported by a 5-year warranty. General Electric – From electric appliances, to medical equipment, GE with its multiple divisions, has a great penetration in international markets, always reflecting its great innovative spirit.

In 1987, with Latin America as a goal and then the rest of the world, General Electric has established a joint venture with Mabe to manufacture various GE appliances, like the Hotpoint line of washers and dryers. GE with a re-known international brand that is well established along with MABE, the first Mexican appliance manufacturer to be internationally sold shall be able to capture a great portion of the Mexican appliance industry. Whirlpool – In Mexico, Whirlpool is dedicated to the manufacturing and selling of ranges, washer/dryers and refrigerators. With the final goal of making a concept. Oriented towards young couples, in 1992 the brand made substantial changes in its products aesthetics. Two years later, Whirlpool focused its efforts as a full-line appliance brand that offers the best security for investment, with products that last longer for the best price.

Under this slogan, a modern, safe, dynamic, friendly and enduring image is projected. The brand is recognized for maintaining a durable line of products, with basic features and the best price. Today, Whirlpool has a complete line of refrigerators of one and two doors, stoves, ranges, extractors and compact washers with one or two baskets, automatic and semiautomatic. All of these products are certified under international quality norms Vacuum Cleaners In Mexico, there is not a single manufacturer of vacuum cleaners. The reason is that in Mexico there is that a small, but growing number of the total population that is beginning to modernize their homes by purchasing tile, hardwood and carpeting for their floors.

Most of the Vacuum cleaners in the market are imported from the United States, Japan and Korea. 3. Expansion Strategy for the Future Five Years Star Appliances, Inc is going to directly invest in Mexico in 2002. We are going to set up one factory in Mexico to be our first foreign production plant. Even though this type of investment is the costliest of all the modes of into Mexico, Star Appliances will have enough financial support and enough human resources for this manufacturing facility.

Since our products have entered Mexico in 1985, star Appliances, Inc has built up a good reputation in terms of product quality and service packages. Our increasing market share in Mexico has demonstrated that Mexico will be one of our long-term markets. Labor costs, freight costs, etc. will be greatly reduced due to a much cheaper Mexican labor force, if Star Appliances, Inc sets up a manufacturing facility in Mexico. Growth Forecasts for Years 2000, 2001, 2002, 2003, 2004 Please see attached charts.

Projected Total Domestic And Foreign Sales Projected Sales By Country Implementation Contact the Commercial Service of the U.S. Embassy for seeking an agent or distributor in Hungary through its Agent/Distributor Service (ADS) or Gold Key program. Further information can be obtained by contacting Department of Commerce District Offices in major cities in the United States or the Commercial Service in Budapest. Need for a local attorney/accountant. As a standard practice, legal counsel should be retained when engaging in business in Hungary.

All legal work in Hungary must be conducted by an attorney accredited to work as a lawyer in Hungary. Many contracts require notarization as well. Several leading U.S. law firms maintain representational offices in Hungary and provide a wide range of services for their clients. An experienced accounting firm should be consulted as well. Consult the Commercial Service in Mexico for manufacturing information and restrictions.

The View Ahead Under the five-year international expansion marketing plan, Star Appliances Inc. will have better performance in foreign and domestic markets. Our great achievements will be new milestones in the history of our company. One of the most important things that our company has to consider is gaining more markets in Asia. The branch office in Japan will supply us with insights and valuable information in dealing with household appliance industry in Asia.

The future plans of our company will focus on dealing with intense competition. The Hungarian market will provide us with opportunities in exploring other countries in Eastern Europe and Central Europe. Our integrity, creativity, intellect, and quality will aid us to achieve the goal that annual sales in Japan, Canada, and Mexico will increase by 15%. Following our mission statement and company objectives, our company will become one of the leaders in household appliance industry and the international expansion marketing plan will be of great importance and benefit to grow our company internationally. Star Appliances Inc. is looking forward to entering the new millennium with innovative products and providing outstanding services to our global customers.

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