W2: TEKCOM CORPORATION: Driving Future Growth

Question 1

TEKCOM

Answer 1

Used to be a company that distributed construction materials for the domestic market. It became the leading manufacturer of film-faced plywood (FFP), based in Vietnam

Question 2

Main question

Answer 2

TEKCOM has seen growth from 2013 to 2016, but is expected to plateau in the next 3 to 5 years. The CEO is wondering whether TEKCOM should focus on its core services or enter new markets

Question 3

Wood logs

Answer 3

Can be hardwood or softwood

Question 4

Veneer

Answer 4

Key raw material for plywood manufacturing. Consists of thin slices of wood and is obtained by the trunk of a tree or slicing blocks of wood. Graded by; size, smoothness, colour, and surface quality

Question 5

Plywood

Answer 5

Known for its ability to resist cracking, shrinkage, splitting, twisting, and warping. Often used for construction, but also for furniture and flooring. Due to increased demand and favourable production cost, production emerged into new countries. Environmental impact was an important factor in the buying process. Production is labour-intensive and requires long lead times

Question 6

High-end plywood

Answer 6

Asked for higher prices and also generated high returns

Question 7

Regular FFP

Answer 7

Had lower prices and also offered lower profitability to the company. Made with Grade C veneer