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At the conclusion of 3 years, Nakamura would've minimal bargaining power with RC because it would have an excess capacity of 275,000 pieces and excessive labor which it could need to use. Within this sense the offer you is risky. Even further, the present will not be flexible. Long-phrase gain maximization is unsure Within this case a issue that could be managed in the SSW offer you. As a result, this provide is rejected.
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If need exists in the U.S., the ability could be expanded. Using this type of give, risk is minimized. Even further, it would be more tips here competing on its own brand identify. Distribution would be taken care of and very long-time period income maximization criterion could be happy as this Extra resources option has the likely of $one million in profits annually. At time of renewal in the agreement, Nakamura might have enormous bargaining power.
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