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Toucon Collections

Toucon Collections must decide whether or not it is in their best interest to accept the mass-merchandise department store’s contract. Which will ultimately change the company’s business definition.   Some sort of change must be done in order to preserve a competitive growth among its industry.  
Toucan sells two products, authentic artifacts and replicas.   Collectors and specialty dealers purchase the genuine artifacts that are sold with the ultimate consumer being the interior designers and decorators.   The locating importation and distribution of the artifacts have been its business since it was established in the early 1900s.   It is the majority of its total sales. Which entirely, duplicates the current account for only a small portion of total Toucon sales.   All their strengths are held within their national reputation for being one of the most respected importers of artifacts for collectors.   In the mid-1990s Toucon expanded its product line to include items that were replicas of authentic artifacts.   This was done for the firm’s clients who desired an expanded line to compete with growing competition. However, they have found most favor among gift buyers and individuals looking for decorative items.   Toucon’s gross sales are about $25 million and have increased at a relatively constant rate of 20 percent per year over that last decade.   In general, this means that the industry is growing.   Conversely, a few problems arise for the company; the problem of supply from the increase in competitors in government restrictions, and the general difficultly in searching for the pieces.   Due to these facts, Toucon faces a supply restriction and decreasing gross margins.
The contract seems accurate with having a possibility of adding a potential of four million dollars in additional sales over and above their national growth. Toucon, thus, would pursue the industry trend by keeping up with its competitors.   Accepting the departments’ stores contract means Toucon...