Damar International is an importing company of handicrafts of principally Indonesian origin, which was established in Burke, Virginia, Its own is Dewi Soemantoro, who is its president, and its vice-president is Ronald I. Asche. It is in cottage Industry.
Damar international currently imports clothing, high quality brassware, batik accessories,wood carvings, and furnishings from Indonesia, workers are principally village artisans, off course, a mayor part of all items are made at hand.
Buyers of Damar principally are small shops and boutique; due to Damar don´t have the availability of supplying large stores and larger retail outlets, because it is very difficult to organize Indonesian artisans to produce handcrafted goods insufficient quantity to supply the needs of large retailers.
The president in an annual visit to Indonesia takes charge of coordinate policy with her family and to be in contact with artisans. And the rest of time Soemantoro is in contact with her family that is in Indonesia, to report new orders and check on the progress of future orders.
About the financing structure, Damar must establish thelimits to the amount that can be borrowed from family and friends; this issue is to significant impact in the working capital.
An important problem has been that paperwork and red tape involved in U.S. customs and quota regulations. it has delayed fulfilment of orders, which is not good for the company's image.
Damar took part of trade fairs, gifts shows and handicraft exhibitions, in order toexpand its market from Washington area to many locations in the eastern United States.
Dewi Soemantoro: She is the presiden of the Damar Internacional organization. Soemantoro speaks French, German and Italian. Her function in the organization is to handles the purchasing and administrative all the aspects of the business, she cooperates with her mom in creating designs thatadapt traditional prodcuts foe the Americans depends in them tastes and also in teh specifications os the U.S. buyers.
Asche: Is the vice president of the organization also is the responsible for marketing and sales and is helping in the niche strategy that in pursuing the organization.
The main problem seen in this fledgling firm is its financing structure. First of all,due to the company must establish the limits to the amount that can be borrowed from family and friends. This issue has a significant impact in the working capital, which is highly required for paying Indonesian artisans just before receiving the full payments from American buyers, (although they deposit an initial 10% of the placed order).
Furthermore, another important aspect intimatelylinked with Damar International’s financing structure, is the problem of paperwork and red tape involved in U.S. customs and quota regulations. This major problem has delayed the fulfillment of orders, which is not good for the company’s image.
The main problem of the company that reply in the limitation of their financial structure ,have many alternatives to be solved but the bestway to overcome this limitation is by come and involved with financial systems that will encourage and help the company achieve all their objectives. The alternatives that the banks can offer with loans and financial alternatives, will lead to the company to achieve more capital and increase their possibilities to respond in the right time and with a high quality products. There is also anecessity to the company to reevaluate their methods of payment, in that way they can ask for the costumers a higher percentage in their deposits that will give the company more capability to respond in the payments of the Indonesian artisans.
Other extremely important aspect for the company is the necessity of Damar to star changing their mentality for being an small enterprise with simplicity...