INTERNATIONAL BUSINESS OF CAPILANO HONEY

QUESTION

This assignment is exporting Capilano Honey from Australia to North American (U.S and Canada), emphasis on 5.1 and 6. There should be a comprehensive bibliography.

 5:Description and measurement of the impact on foreign activity and value to the company, by each environmental factor that the company faces with the operation/investment in the foreign country,

 5.1. Political Economy (Making use of qualitative and/or quantitative techniques as appropriate)

 6. Internal Structure and Strategy, including entry strategy

 Report Content

Treat the report as if it is a profession report you have been asked to prepare by your superior or for a client. You have been asked to prepare a report evaluating the decision that the company made to enter into the foreign country. This should look at all relevant factors both internal and external, and the mode of entry and make a recommendation as to whether the company’s decision to enter that foreign market was a good one or if it might have been better off either not entering that market or by doing something differently (this could be in terms of their structure, strategy, preparedness or nature of entry).

SOLUTION

Capilano Honey has one of the biggest markets in north America  specially in countries like America and Canada. A lot of consumers want to take the honey and it fetches good amount for honey. This is the reason why our company wants to enter into these kinds of areas so that it fetches good returns and there are maximum people who are benefited from this kind of entry. As far our company is concerned, our company is into production of these kinds of honey for the last 10 years and the quality of our hone is very good.

We are already exporting this product to Asia and other European countries and have found good response for these products. As per Joachimsthaler, E. (1999), this product is very good and there is less amount of time that is needed for the production and thus, the main goal of our company is to tap more and more markets so that there is good amount of growth and prosperity. Honey is mainly used in these American countries and the taxation law is also very less for the time being. People do buy our products because of quality and Capilano Honey is one of the best products that is being marketed and sold in these kinds of areas.

We have also seen that people have demanded Capilano Honey in America and Canada and are also willing to spend good amount of money for these products. Thus, it is important that we see the practical aspect of this honey and bring in one of the best known honey so that the rarer more consumers that can be targeted by this move. We have now to finalize on the entry path of these countries because it is only through these areas that we would be able to gain good returns.

 

Plan of action of Exporting

When we think about Exporting a products other country, the main thought that comes tour mind is how to exported and what should be the medium. To make things simpler, we need to first do an analysis as to how to export a particular commodity to particular country. We have now chosen our commodity as honey and thus we have to first have a look as to what all are the custom rules and regulation of exporting that particular product.

As per my analysis of Honey, the countries do not have huge exporting barrier of honey and thus by simply paying some local custom taxes and other port charges we can export the product to that particular country. As per Jean-Loup (1995), now before exporting the product to that country we also have to understand as to who all would be buying our product out their and we have to first negotiate some deals with them.

I have spoken with some domestic honey traders out their and they are happy to buy our product at good margins. The proposes rate of selling the honey out their has been kept at 50 $ per liter of money which is quite a good money for all our products. This money would be good in terms of exporting a particular set of honey and also paying away with customs and port charges. Te client is also happy in sending us some advance payment so that we can send our products out their. Thus, this is one of the basis and initial steps that any company which is into the process of exporting should analyze and do it in advance. Without this process, it would be really tough to market our products r their in any kind of environment.

 

Local Environment of the Exporting country

This is also one of the best things that any company ahs to watch before entering into these areas. There local environment of America and Canada has to e watched with good keenness so that we can ascertain the impact of our product in both these countries. The main factor that has to taken into consideration is the political environment. The political environment of America is mainly  Democratic country type of setting. It is mainly capitalistic in nature with a lot of companies going into these kinds offsetting. The main factor for these areas is that the company would be getting a good type of global arena which would mainly help all small companies to grow more further.

As far as Canada is concerned, the government here is also Capitalistic Democratic and thus, the company here would also enjoy good power and supremacy. There is abundance of trade of Canada with Australia and thus their would not be any kind of problem for any company. This is a critical factor for all the major palters and thus, people would feel very relaxed whenever trade happens n these countries. The government might change but their has been no instances that there is any sort of problem for the traders in these areas. Thus, the government well set and there are different set of rules and regulations for all the people in the society. The ,main factor for all the traders is that the custom taxes and other kid of taxes are leas and thus, traders do not feel that pitch while importing good and services from different parts of the world.

Hus, we now can get a good picture as to what is the nature of the government and how does one company deal with other companies. The main arena of trade is that the government ahs good support with the traders and both the countries enjoy good attorney for trade.

This is good trade relations of one country with that of anther and thus, people also do not feel that there is any id og iasnes of traders with other trades. Good and peaceful activities happen between each other and thus, there is good and prosperous kind of making. What else in important is that people like to trade with Australia and this is on of the biggest plus point for our company.

 

Internal structure

The internal structure of our company is mainly based upon a lot of factors. The main thing about finding out the internal structure is to access the amount of trade that we can d keeping in mind all other kind of factors. As per Barczak, Gloria (2003),  it is very important to find out the source of all these factors and to bring out something competitive in nature. The internal structure of our company mainly comprises of the core international marketing team which would analyze to what all are the credible sources of expiring and how to get the best possible out come. The main outcome would come if their is good and of promotion and targeting of our products in the International Arena.

The marketing team needs to fist analyze s to the amount of trade that our company would do with the rest of the world. Since, we now know that our company is good in producing honey and we also selected the target audience for our honey, thus we now Need to make sure that these production is bound to be good and best in nature. The marketing team need to analyze the possible sources of promotion of our predicts. Internet and social networking sites like Face book, orkut, Twitter are one of the best areas from where the promotion of our products can e done.

The sources mainly helps in making good contacts with the rest of the world and thus brings out what is not their in the picture. People need to understand that all depends upon the kind of a marketing that our company would doso as to make the best possible outcome available to thye end consumer. We have now jotted doen the amin areas as to where we have to spend or money into and the budgets that needs to be made while prompting our products in the online and offline modes.

 

 

Strategy of Exporting

In the initial phase of the project, we had decided that the best way to promote and export our product would b exporting it directly to the dealers in these particular countries. It is one of the best ways of promotion as for any new vender, it would serve the bet possible outcome. Direct exporting of our products to the vendors would mainly help in reducing the risk of marketing our products in the overseas market. The main danger in marketing our products in the overseas market is that people would do not have good contact and thus, our product would then be a waste.

Thus, the companies like us mainly find out reliable and credible buyers who can market our products ell in  these areas. This kid of thing is the best fit and is also known as direct exporting. We cannot straight away go in for setting up our own premises in the host country as it would lead to a lot expenses and our product being a new product in the alien environment would not get the best possible rewards. Thus, the best thing would be to give our products to the sellers in the other country so that they are able to get some clients for us.

After the initial stages of promotion we can go in for directly setting up our vase in these countries so that we can also enjoy some supremacy and can expand our base in the coming years. But, as of now the best thing would b to set up our own retailers in these countries which would marletoyr products and thus bring out good revenues for us. This is one of the best ways of marketing our products in the alien environment and this would also bring out good profits for our company.

 

Conclusion

Capilano Honey would be a good product for all the consumers since it is new for them and it would be good since, the demand of this honey is also good in America and Canada. As per Simonian, H. (2005), the method that choose to export our products is also one of the best methods and thus, it is important to ascertain the real way to taper more and more customers. With the help of local retailers we would be able to soon et in touch with a lot of other agents and thus, it would help in overall expanding our base in other parts of the country.

In the initial stages, we would mainly export honey to tee countries and look  forwards or acceptability of our products. If the demand of these products increase then , we would mainly sell more of the goods out their. By accessing the demand and supply relationship after a period of 1 year we can introduce other products which are their in our pipeline.

 

The best thing that our company should have in itself is the way to market our products. Marketing is one of the best ways and this has to betaken into consider soon that it is only through good and effective marketing that we would be able to fid some base in these countries.

Hence, the short term goal that we have taken as of now is to reach maximum audiences so that there is good scope of growth and development of our products in these countries. As and when their is good market, then we can go in for more of diversifications and in the alter stages of our life we can set up our base out their to directly cater to the needs of the people. This would mainly appreciate our value in their markets and it would in long run bring out positive results for our company in the coming years.

 

 

 

 

 

 

 

 

 

 

Bibliography and References

Aaker, David and Joachimsthaler, E. (1999). The Lure of Global Branding. Harvard Business Review (November-December):137-144

Agrawal, Madhu (1994).  Review of a 40-year debate in international advertising: Practitioner and academician perspectives to the standardization/adaptation issue. International Marketing Review 12 (1): 26-48.

Anon. (1979). Adapting export packaging to cultural differences. Business America; Dec 3, 1979; 2.

Archawski, Jean-Loup (1995). The long farewell: Peugeot’s departure from the U.S. market. Business Horizons (May-June)

Baalbaki, Imad B; Malhotra, Naresh K. Marketing management bases for international market segmentation: An alternative look at the standardization/customization debate. International Marketing Review; 1993; 10, 1; pg. 19

Barczak, Gloria (2003). Managing Global New Product Development Teams. Institute for Global Innovation Management Working Papers.

Bartlett, C. A. and S. Ghoshal (1989). Managing across borders: The transnational solution. Cambridge, MA: Harvard Business School Press.

Benady, A. and Simonian, H. (2005). Nestle’s new flavour of strategy: Global Selling: The world’s largest food company has put marketing at the heart of its plans for future growth. Financial Times (February 22, 2005): 13.

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