Sample Business Studies Paper on Global Business Plan

Executive Summary

In recent years people are growing more aware of the need to maintain a healthy lifestyle and hence they are preferring to engage in less destructive feeding patterns that will ultimately uphold their well-being. Subsequently, it is evident that the business of exporting and importing fruits is rising on a daily basis around the world.  The export business in this case will be focused on fruits under the title Fruity limited liability company. In essence, fruits will be exported from Kenya to the Australia, the latter of which lack the necessary resources as well as climatic conditions to support the growth of these essential commodities. In essence, there are considerable opportunities in this market as there are numerous clients who desire to purchase healthy fruits at affordable prices and which are of high quality. The business’ main office (receiving office) will be positioned in Sydney, Australia while as the exporting office will be located in Nairobi, Kenya. The main intention or goal of this business will be offering the state and the community with High quality fruits that are not presently grown or available in Australia and at affordable prices.

There are multiple opportunities that are available in the fruits export business on a global scale which offers a suitable prospect for enterprises to venture and exploit. Statistics indicate that the fruits export business embodies one of the most ideal business on a global scale as it assists the relevant countries to expand on various fronts specifically from an economic perspective. In addition to this, the government of the other nation will also extensively support the business of fruits due to the fact that the products are a basic requirement for survival for human beings and it is also linked to an enhanced well-being of the community, replacing chemically manufactured drinks. As indicated, the primary product will be fruits from Australia and since consumers have an interest in high quality and affordable fruits, the company will aim at exporting the best of the products in order to augment customer satisfaction. The key target in this case will be households in Australia although there will be a need to incorporate third parties such as retailers and shopkeepers who will function as the conduit for the delivery process. In line with this, the business aims at securing an estimated 50 market share in the country with a sales target of 180,000 tons which are estimated to be worth $60 million in exports. Financing will be catered for by the owner at an estimated $100,000 and a bank loan of $50,000 to kick-start the business.

Phase 1 – Planning the Global Business Enterprise.

Module: 01

Identifying Global Business Opportunities

The Fruit export business is essentially a food oriented undertaking and it may not demand a high investment amount but is linked to considerably high profit margins in case an adequate marker base is established. Despite there are risks associated with this business including the possibility of expiration or some of the stock being rejected by the licensing bodies due to failure to meet health and safety standards (Doh, Luthans & Slocum, 2016). In addition to this, the marker in Australia is ripe for exploitation evidenced by the fact that the country is characterized by a high demand for healthy products that are affordable. The country also has numerous channels of distribution as well as favorable opportunities for marketing.

Module: 02

Analyzing International Competitors

Over the past few years, the world has become highly interconnected with numerous channels of interconnection which function to simplify life. Subsequently, the high level of connection has made it possible for business to venture on a global scale hence leading to extensive competition for local enterprises as well as the multi-nationals already operating within a given country. Australia has an extensive scope of fresh fruit entities operating within its borders, both local entities as well as multinationals and that have already established a solid client base. Some of the leading entities in the country include:

  • Anchor Trading Company
  • Allianz Trading
  • Indus Valley Trading
  • Imtiaz Enterprises

In combination, these four corporations control an estimated 50% of the country’s total market and hence, it will be a challenge to win over a market share. However, with effective marketing and promotion, substantial progress can be made in securing a clientele base.

Module 3

Assessing the Economic-Geographic Environment

The geographical factors including location, weather have a considerable influence as well as implication on business irrespective of size. In this case, there is a specific considerable impact on the Fruits business as the relevant stakeholders have to take considerable care of fruits and adjust setting and handling mechanisms based on weather patterns. These geographical dynamics perform critical role in the success or failure of an enterprise (Beilin, Santhanam-Martin & Sysak, 2019). It is therefore, critical to factor in the weather of a country coupled with where the business is being expanded to. Australia’s geographical schematic comprises and extensive variety of bio geographic locales being the sixth-largest nation globally. In addition to this, the population of the country is specifically concentrate along the southeaster and eastern coasts and hence there is a need to assess this population as well as their individual dynamics to determine the most suitable approach of venturing into this market (Beilin, Santhanam-Martin & Sysak, 2019). The landscape of the region is also not conducive for the growing of fruits of fruits. Specifically, the largest proportion of the country is arid or semi-arid evidenced by the fact that a total of 18% of the nation’s mainland is comprised of known deserts while as the additional regions are regarded to be characterized of desert climate as a result of high temperature and a decreased amount of rainfall (Beilin, Santhanam-Martin & Sysak, 2019). However, only the south-west and south-east are characterized by a temperate climate and a temperately fertile soil which is mainly covered by forest cover and food for sustenance purposes including wheat.

Module 4: Assessing the socio-cultural environment

Despite the fact that Australia is largely a Christian nation there is a variety of religious affiliations in the region. In specific, there is a high number of Judaism, Buddhism, Hinduism, and Islam in the country hence adding onto the diversity of the region. Such a high degree of diversity offers for a high level of acceptance of the various individuals in the country and hence there is a higher probability of acceptance of any product affiliations. Nevertheless, the culture of Australia is evidently a Western culture which has been considerably influenced by the expansive globalization as well as the high interconnectedness of the region from a global perspective. Also considered to be the most welcoming nations in the world, Australia prides itself in being a multicultural nation as nearly 50% of the population is comprised of foreigners or Australians who have parent born in another nation, leading to an excess of 260 distinct language within its boundaries. The political stability as well as the economic expansion during the 50s were critical to the advancement of a prosperous society as well at the arrival of the initial expansive wave of immigrants. This has function to boost the diversity of the country as the different individuals accept each other.

Module 5: Assessing the political legal environment

The basic principle underlying the Australian contract law is considered to be the freedom of contract, on the basis of which parties are at freedom to ratite whatever agreement they opt for. When undertaking to the enter agreement with the various parties, it is good practice to undertake  recording the terms of the contract in written form – no unique procedures or forms are necessary – and Australian courts are more likely to give substantial significance to the expressed intentions of the parties in case they are presented in documentary form. In order to engage in this business with minimal confrontations with the government, it is essential for the relevant stakeholders to observe the necessary legal constrains including the National Measurement Act 1960 as well as the National Trade Measurement Regulations 2009 which seek to regulate the manner in which fruit and vegetable can be sold based on measurement as well as the relevant health and safety guidelines.

Based on the Food Act of 2008, any corporation engaging in the sale of food is mandated to undergo registration as a food business with the pertinent local government authorities within which the business intends to be focused. In line with this, there is also the need to seek authorization from the various importing parties to ensure that the business is suitably aligned. Taxation is also an important factor to consider as the government imposes capital gains tax and value-added tax to which the various entities or enterprises must adhere to. The parties to a given contract for the international dealing with goods may approve to the notion that the Convention is Not to apply, and may opt for a selection of laws of one of the faction’s home jurisdiction as the governing law of the relevant contract. However, in case they fail to agree on the laws to sign to, then the Convention is applicable, and integrate into the contract as per the guidelines enshrined in the Convention.

Module 6

  1. Strategic Planning: Fruity Limited Company will function as a Sole Proprietorship and will be operated from the head office or exporting office in Nairobi, Kenya. This approach is important as it will aid in controlling the distinct aspects of the enterprise.
    1. Product and Services: The main export product in this case are fruits from Kenya to Australia. As clients have a considerable interest in high quality and affordable products, the company will undertake to export the best quality and value for money commodities to uphold customer satisfaction. Specifically, the enterprise will focus on:
      1. Export fruits based in seasonality
      2. Dry fruits which can last for longer
  • The business will also incorporate additional products as the business expands including: frozen or canned fruits
  1. Target Market and Client Benefits: The target market for the fruits will be local Australian households. Principally the target market customers will be Quality focused clientele that seek for premium products. There will also be numerous benefits for the customers including:
    1. Customers can be offered their desired fruits at their door step using their preferred channels.
    2. Clients can enjoy the seasonal fruits that are not available in the country.
  • All customers will enjoy high quality products which are hygienic and which are reasonably priced.
  1. The clients will enjoy all types of fruits irrespective of season hence keeping them constantly satisfied.
  1. Company benefits: The primary concentration of the company will be to acquire an estimated 50% of the Australian market share. From a long-term perspective, the primary purpose of the corporation will be to gain a firm grip on the agriculture sector. Some of the targets include:
    1. Sales target amounting to 175,000 tons equivalent to $60 million in exports
    2. A rise in employment opportunities to support the increase in annual sales.
  2. Employee Satisfaction: Employee satisfaction is critical as it ensures that the relevant goals are achieved as envisioned. Approaches of achieving this include:
    1. Considering employee input and engaging in critical discussions.
    2. Equitable allowances and medical cover to be provided to employees
  • Ensuring continuous employee growth through education and exposure to opportunities for acquiring skills.
  1. Continuous employee workshops to brainstorm ideas and subsequently boost their performance levels.
  1. Entry mode: The Company will primarily run its operation from Kenya and send directly to Australia directly with the means of transportation being air due to the perishability of the products. Essentially, the company will venture into the market by the title “Fruity Limited Company” a unique name which will make the entity prominent in the country.
    1. Pricing: The pricing will be contingent on various factors including, competitor prices, the type and quality of products delivered to customers, the number and strength of competition in the market, and the value-addition in relation to customer satisfaction at the various levels.
    2. Licensing: The licensure of the entity will be undertaken through the Australian Business Register (ABR) the organization tasked with the responsibility of licensing various types of entities that seek to operate within the country.
    3. Organization structure: The company will be headed by the CEO, followed by the Top Management (International Marketing Manager, Export Manager, Trade Financer, Project Manager, and International Marketing Executives), and Middle Management (retailers, wholesalers, and salesmen).

References

Beilin, R., Santhanam-Martin, M., & Sysak, T. (2019). Security and Climate Change in Australia. Sustainable Solutions for Food Security: Combating Climate Change by Adaptation, 437.

Beilin, R., Santhanam-Martin, M., & Sysak, T. (2019). Vulnerability Amidst Plenty? Food Security and Climate Change in Australia. In Sustainable Solutions for Food Security (pp. 437-457). Springer, Cham.

Doh, J. P., Luthans, F., & Slocum, J. (2016). The world of global business 1965–2015: Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction to the special issue.

Priyadarshini, A., & Priyadarshini, A. (2018). Market dimensions of the fruit juice industry. In Fruit Juices (pp. 15-32). Academic Press.

Sun, X. (2016). Opportunities and challenges relating to the export of fruit and vegetable products from Queensland to Asian Countries.