EXECUTIVE SUMMARYDonga Michael is a

EXECUTIVE SUMMARY
Donga Michael is a newly created export company located in Fort
Lauderdale, Florida. The company started its operation in September 2005.
It exports computers and parts to the Republic of South Africa. Trade in
computers between the United States and South Africa has been growing at a
faster rate since the end of apartheid. The company intends to supply highquality computers to the business sector and later to schools and universities.
South Africa is the largest computer market for the United States in subSaharan Africa. Every year, it imports computer peripherals and accessories worth over $60 million. With the end of apartheid and the lifting of
sanctions, South Africa is open for trade and investment. The development of
a black professional and business class and the building of infrastructure facilities to enable all South Africans to participate in the economic life of the
country provide enormous business opportunities for U.S. exporters of information technology. Even though there is strong price competition in the
computer sector, Donga Michael will focus on the upper end of the consumer
market. Donga Michael’s competitive advantages over existing companies
include a coordinated marketing program, prompt delivery and services, as
well as a professional image and expertise in the North American market.
President and founder George Hunat brings a wealth of experience to the
firm. Vice President Alice Munroe also has extensive marketing experience.
The estimated required investment is $200,000. Mr. Hunat will invest $40,000
of his own personal funds in the business. Ms. Munroe will invest $35,000,
while $80,000 will be borrowed from a local bank. The balance of $45,000
is solicited from a venture capitalist who will acquire 37.5 percent of the
corporation stock.
Export-Import Theory, Practices, and Procedures, Second Edition