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Whether an agent or the distributor is beneficial for the company depends on the situation and what the Ruinously has in its vision. Here in the given case study, it shows that Gerald considers the success more than a trend and wants that he wants concentrates more on preserving the business as a family business, showing the recalcitrance towards not introducing any new in the family business. In case of adopting the agents, we need to step up same existing operational functionalities, which is in Ottawa, in France, which was something against the vision and wish of Gerard.
And Having a Distributor was something that was going in the way what Gerard wanted. Following are the advantages of having a distributorship agreement over sales agent agreement. 1) There is not responsibility that needs to be shared between the distributor and Gerard. And in this selling the sunglasses in France becomes the core responsibility of the distributor and thus, Gerard can be free from the duties of selling the products in France and can concentrate over the business in Canada. ) Distributors should be more motivated to sell the stock that they purchase room the Ruinously, since they take on greater risk of failing to sell. This way the sales of the Ruinously can be increased in France by giving independent responsibility to the distributor and at the same time, Gerard can also contributor towards the sales in Canada. Thus by having the sales in both Canada and France, simultaneously and independently can make great sales for the Ruinously. ) The supplier will not need to monitor accounts with a number of customers, but only with the distributor. This way Gerard can decrease the overhead of incurring the business in the France ) Various other possibilities of having international business endeavor for the Ruinously are as follows: 1) Turn-key Projects: In this means of medium, the organization helps to provide all kind of services that are required for the organization to set up business in another country.
Like here, any Sunglasses company in France would help Ruinously to set up his own organization from the very beginning of the design stage to the operational level. But in this easer since the Gerard is not interested in taking his manufacturing out of house, having such projects in not feasible. 2) Joint Venture: In this, Ruinously needs to collaborate with the local companies or government of the foreign company in order to build up various industrial operations right from manufacturing the product and sales.