英语论文网

roducts in these countries. At present, OSIM have 10 franchisees/licensees, 3 subsidiaries, 6 are affiliated companies controlled by their Controlling Shareholders and the remaining 1 is an unrelated company.

The company point-of-sales outlets in Singapore, Hong Kong, Taiwan and Malaysia are operated by Company and subsidiaries. The rest of their point-of-sales outlets are franchised outlets with the exception of outlets in the PRC for which we have trademark and licensing agreements with the owners. This is OSIM business strategy that future expansion of their point-of-sales network will be substantially undertaken by franchising. OSIM company begun to gradually move away from being a retailer to being a franchisor and, in furtherance of this strategy, they have also entered into franchise agreements with their subsidiaries, OSIM (HK), OSIM (Taiwan) and OSIM (M'sia). Further, franchising help them to expand and multiply their point-of-sales outlets to more geographical markets at a faster pace with significantly less capital exposure. Franchising is also less taxing on their management's time than operating self-owned outlets in penetrating new markets.

To diversify their sources of revenue, in 1998 OSIM ventured into wholesale distribution of health-check and health-care products such as blood pressure monitors, thermometers and pulse massagers, in Singapore to hospitals like Tan Tock Seng Hospital and Kandang Kerbau Women's and Children's Hospital, pharmacies like the Apex Pharmacy and the Guardian Pharmacy chains, and Chinese medical halls. While wholesale distribution is currently only carried out in Singapore which contributes between 1 and 2 per cent. to their turnover in Singapore, and then the company intend to develop this business and carry out wholesale distribution in all their principal markets eventually.

As part of its business strategy to extend the control over of their business process and to exercise greater involvement and participation in the source of supply for their products, in 1995 the company entered into a joint venture with Daito Electric Machine Industry Company Limited (‘‘Daito''), a Japanese supplier

to OSIM Group, to take up a 30 per cent interest in Daito-OSIM (Suzhou) with Daito taking up the remaining 70 per cent.. Presently, Daito-OSIM (Suzhou) has a plant in the Singapore-Suzhou Industrial Park in Jiangsu, PRC that manufactures products like hand-held massagers and foot reflexology rollers mainly for re-export and distribution to the markets in Japan and USA. Under the joint venture agreement, Daito has the right to appoint 3 directors of Daito-OSIM (Suzhou) while OSIM only have the right to appoint 2 directors as they are the minority shareholder. However, Daito-OSIM (Suzhou) shall not change the scope of its business activities from that as described in the foregoing, without the consent of Daito and OSIM. Any material financial commitment which is above US$100,000 or material contract to be entered by Daito-OSIM (Suzhou) also requires the consent of Daito and OSIM. The joint venture agreement is of unlimited duration but may be terminated with the consent of Daito and OSIM. Neither Daito nor OSIM can transfer an interest in the shares in Daito-OSIM (Suzhou) without first making an offe本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。