International Strategic Plan Project
The whole Project is based on the encouraging and opening a new business and entering into an international market. Camel Milk is famous in the Arab countries which can be exported to other countries based on which there are various strategies and analysis proposed which helps in analyzing the situation of the foreign country.
There are mission statements and goals define by the firm which has to be developed by the company in order to keep forwarding in a particular direction. After that product analysis is done which is to make research on the analysis on the product. The environmental assessment is done that is about the various forces which play a major role in the investment in the foreign country. After discussing about the various forces there are marketing strategies which comes in the place.
There has been SWOT Analysis which has been done in order to understand the situations in the country where the investment is done.
The purpose of proposing this business plan is to mainly focus on the camels and their product camel milk. Now a day’s Camel milk is getting popularity all over the world with its various properties being very useful for the human beings.
We will be discussing about the company profile formed for the product which we are going to deliver and there would be various other topics which would come in the discussion which mainly comprises of Product Analysis, Environmental Assessment, Marketing, Competitive and human resources strategy and in the end there is analysis done on our findings.
Globalization is described as the process through which the terms like societies, economies and culture are integrated through a particular network of various political ideas through various means such as trade, communication and transportation. In this project the term globalization is also referred as transnational circulation of languages, ideas or culture through acculturation.
The expansion is needed in the market and at every aspect where the increment in the economy can be seen. The main target is the international market where there could be so many chances for developing the business. As Camel milk is generally produced in the Arab countries where camels are found in large amount and the milk obtained from them is beneficial in many contexts.
In this section of our study we will be describing our mission statements and business goals of our company. The company name selected is Alvin.
The company will keep on acquiring and developing quality properties which are totally based upon the practical values for the affiliation of its own investment and for its partners. These activities will continue in the targeted markets and sub markets which are generally spread throughout the France and the activities will be focusing on the transactions which would take advantage of unique opportunities. Once there is development of properties the company would like to provide systems, skills and services necessary to develop the high standard quality product to gain the upmost operating efficiencies and finally to apprehend the highest profit performance.
There are many goals which are setup by the company to achieve the target which have been estimated to achieve throughout the year. Some of the goals are –
Achievement of brand recognition within a short time.
Regularly launching of new products and creation of employee-friendly work environment.
A definite time frame is indicated for reaching on the stage of profitability after a successful launch.
A clear vision for all the employees is provided for what they are working.
There are goals set up by the company so as to achieve the target mentioned in the beginning of the financial year. There should be brand which should be getting recognized or famous with the passage of time or within a short period and regularly there should be launch of new products and environment should be worth working. The time limit should be stated for a particular project to reach a stage of profitability and a clear vision is to be mentioned in front of every employee.
Description of Product-
The product which is given for the study is camel milk which has been introduced in the France. The camel milk has the same properties as of insulin which is useful in curing the diabetes. In this section we will be going to discuss about various characteristics of the product that we are going to launch which includes the following properties such as
The product which is mentioned is Camel milk which is basically designed for the country France and the product has various useful characteristics that have various applications in different fields.
Functionality of the camel milk can be in its usage that is it can be used in various fields such as medicines, home usage and various other fields but mainly the usage of camel milk is in the field of making medicines for deadly diseases. So the product should be of usage in the medicinal field.
Design of the product should be attractive which can catch the attention of the consumer so that the there is an increase in the sale of the product but with the high quality of design, the quality of the product should be maintained.
Style of the product should be designed according to the environment of the country means as the trend going on in the country which can support the product.
Color will be according to the product for example as it is given camel milk so the color of the milk will be natural here so it cannot be altered although. (Camel Milk : The biggest hump in the milk industry , 2010)
The functionality, design, color and style are described in the above paragraphs apart from it the product should be fully developed and the whole of the product should be upgraded with the passage of time. The physical qualities should be a major concern for the company as it would be attracting more and more customers. The product should be attractive in nature as it should be fulfilling all the needs of physical quantities.
There are many benefits of the product camel milk in which some of them consists of-
Camel milk is considered equal to the human mother’s milk instead has 10 times more iron and more than 3 times vitamin C than cow’s milk.
It is also considered as antibacterial and basically has low amount of lactose.
Camel milk has been used by the nomadic communities for centuries as medicine.
In many countries camel milk is taken use for the treatment in Tuberculosis and the most deadly disease HIV AIDS which is spreading all over the world speedily.
The studies which have been done in the field of diabetes are most promising in which anti diabetic action of camel milk is considered as the important one.
High concentration of insulin resembling protein is present in it which has a positive effect on the immunity.
Camel milk is also being used in the manufacturing of beauty products as it contains Alpha-Hydroxy acids which are helpful in plumping the skin and smoothing fine lines. (sudani, 2010)
There are various benefits describing Camel milk which is to be introduced in the foreign country. There are first of all not much competitors in the world market as it is the innovative idea and if we talk about the remaining competence then the product launch will try to attract more and more of customers which are going to be sell at cheap prices than as compared with the market price. There will be lucrative offers which are provided along with the camel milk which will give a step ahead of the other companies.
There are many forces which play a major role in deciding the success of a product like camel milk which is imported from United Arab Emirates. Some of the forces are described below-
The national culture of the country to which the product is being imported is one of the cardinal factor and an essential component in the success of the companies. Major interest of market is in culture, habits and some proportion of attitude also which is important to get success in the international business. The working of a company depends on the way of interaction with the people where differences in culture are observed. Basically these are the social and cultural factors which can come across during business of camel milk in France. (Socio-Cultural forces and international business, 2009)
There are many other major issues which are related with the socio-cultural components such as attitude, belief, religion and language. These are considered with respect to the customers and the requirements of the people according to which delivery of the product is done. The policies of the company should be made taking socio cultural forces in mind. The attitude and belief of the peoples should be judge before investing in a particular country. The religion should be seen as it would not harm the religious belief of the people and the marketing which is to be done should be in the proper local language of that country.
A professor Geert Hofstede has evaluated five dimensions which are compared with one or the other terms through which the country could be analyzed as first dimension is about the small v/s large power distance, Masculanity against Femininity, Weak against strong uncertainity avoidance, Long against short term orientation and individualism v/s collectivism. These are the dimensions which can be helpful in describing cultural differences within the country or characteristics of an individual in a particular region as there will be many kind of people living in a particular country.
Economic and Socio-Economic Forces-
Economic forces generally refer to the character of the economy system of the country. The economic policies offered by the government which are suitable for the camel milk and the businessmen anticipate the market situations and make maximize with the minimum cost. There should be capital market available in the France to establish business in the sector of camel milk which will be exported from United Arab Emirates. The businessmen also study about the nature of factor endowment before investing in a particular country.
There are major issues like International debt and age distribution which should be kept in mind. The international debt is about the loan on the banks which is taken by the company which is considered as the economic forces and age distribution that is the product which is being developed should be manufactured taking every age person in their mind.
There are 8 dimensions present which come across the economic forces that are Gross National Income, GNI/capita, Income distribution, Private consumption, exchange rate, interest rate, and Unit labor cost and inflation rate. These dimensions also affect the economic condition of the country as investors analyze these dimensions. The gross national income of the France was $ 2177.7 billion in the year 2005 and in the same year GNI per capita was $ 30,540. In the year 2009 the inflation rate is 0.1% apart from the 2.8% in the year 2008. The interest rate in the past few years was 6.7% in France. These all statistics are also analyzed while investing in a particular area or region and also these were the eight dimensions which has to be take care while investing.
The country France is considered as the civil law country and the legal system is based on the body of written law. The legal forces are attached with two judicial systems- administrative and judicial. There is a provision of extra legal protection to the French citizens so there would be no chance for any mistakes committed by the exporters of the camel milk. Many legal and political forces is acting presently on the exporting and importing of any product which make difficult for any of the businessmen to setup a new business in the country.
The political factors are affecting the business at the global level which comes in many forms. The ideological forces for instance capitalism, communism and socialism which plays an important role in the operation of business and considered as venturing in the international commerce. These all factors play an important role in the exporting of camel milk in France while the basis of capitalism is free enterprise. There are many several areas where government controls businesses through interfering in the policies like safety, zoning, wages, employment conditions and various other areas. Other political factor is the political environment in a particular country is in flux, which can also affect business in importing, exporting or operating in that particular country as it is here in France. (Foreign Environments Affecting International Business, 2010)
As other forces the financial forces is also important with respect to the exporting camel milk to the France. There are much financial laws and policies created in the France which can create hindrance in the setup of business. The company which is setting up business in France should be financially strong as it could face few setbacks at the starting of the business as well as financial forces should be lenient.
There would be requirement of labor to work in the firms as the setup of camel milk industry requires large labor force. There is increment in the female labor work in the France which was reported as 46.98 percent in 2008 which was high as compared with the past few years. In France, Labor force normally consists of the people between age group 15 and older and France is considered as second trading nation and second largest economy in Europe. So the laws and policies for labor forces are made easy for the international business.
The labor force should be taken with the quantity and quality of the labor which is available in the market of that country that is a company has a requirement of cheap and a good quality work force for their firms and usually the force should be local as they would be knowing the taste of the people according to which suggestions could be taken from them to bring up innovations. The size of the workforce should be moderate who can handle and manage the work. The relationship between the manager or employer and employee should be healthy as it would take help in their maintaining decorum at their work place.
Market Entry Strategy-
Market entering strategy is the method of providing services to a particular market and distributing goods there. There are many advantages in exporting the products to the France through three ways which are as follows-
It minimizes the investment in the upfront.
It overcomes the need of the large extra fixed cost which is required for investment.
It develops a strategy to enter in the market which avoids making costly or dangerous overseas mistakes.
There are basically three common strategies to enter any type of market which are indirect exporting, directly exporting products and producing product in the target market. These were the basic strategies which can give a start to any type of business but to maintain a reputation in the growing market there is a need of other strategies which can fulfill the purpose of exporting the product. We are going to concentrate on the market of France where camel milk id to be exported from the United Arab Emirates as we know that it is hub for the market of camel milk. It also depends on the financial resources of the country to enter in the market in which France is at strong part.
In building a market strategy, there are various factors which should be kept in mind such as time, image through promotion, intelligence system and effort and money. As we know that camel milk is not at all famous in the country like France because of less quantity of camel. So there is a need of promotion campaigns which requires a large investment. There can be facing of difficulty in the contract which can be costly or weak legal integrations between two countries. There are various types of marketing entry strategies and some of them are-
Exporting which is somewhat traditional way of operating in the foreign markets. It is the marketing of goods which is produced in a particular country into another country. This is the method which we will be using in our product that is camel milk which is produced in UAE to France.
Licensing could be method in which a company is allowed to manufacture, process, trademark and some other skills provided by the licensor which will be difficult in the case of camel milk because it cannot be manufactured in France.
Joint Ventures is referred to an enterprise in which there are two or more than two investors share ownership and control rights and operations of property.
There are several other strategies such as contract manufacture, ownership and participation in export processing zones which can be useful in entering in the market but the above mentioned strategies are basically used. (Chapter 7 : Market Entry Strategy)
In the analysis of market there are various segments included which is competitive analysis, market segmentation and target market. Competitive analysis is analyzing about the competition present in the market of France which will be least in the case of camel milk. There could be competition of the camel milk from the Asia which could be found in France which is another source of camel milk. The target market should be the milk product which is being produced through milk of another animal; it should be mainly replaced by camel milk product as there is high consumption of cheese in the France which could be main focus of the company so as to develop the cheese product from the camel milk which is exported from United Arab Emirates. Market segmentation refers to the various segments of the milk products which are present in the market of France; the company should try to replace the products through its marketing strategies or marketing campaigns.
The product which we will be offering will be camel milk and the products manufactured from the same. As we know that the products made of cheese are too famous out there in France which will be our main focus of marketing. We just have to try to curb in maximum of the market through our marketing strategies and campaigns. Camel milk is not at all famous in France which will make hard for the company to make it famous and requires more effort. The product should be made differently or the taste or packing should be somewhat different and attractive from other products present in the market.
Distribution Strategy (Place)-
The place selected is the country France in which firstly the product should be launched in the main metro cities which can grab the market or gain experience which should be then expanded to the rural areas. The place should be effectively chosen where there are so much chances of failure.
The main issue which arises at the time of launching of any product is the price selection for the product as it should not cost customer much and on the other side it should be beneficial for the company as well. The price should be compared and lowered as much as the other product prices which can give extra zeal to the quality of the product.
As we talk about promotional strategies then the standard and quality of product should be maintained with the passage of time. The alteration in price should not be much which can make difference in the reputation of the company. There should be improvement in the product with the observation of market and other products and essential improvement should be made.
Competitive strategy is considered as a plan about the firm and their plans to completely formulate or evaluate the strengths and weaknesses as compared with those of its competitors as an example a small meatpacking place which has decided to concentrate on the special product that is offered in limited areas determining that it cannot compete with the major competitors.
The main author, writer and researcher Porter have given Porter’s generic competitive strategies which can help the firm find the ways to find the ways to compete. So the strategies help the company to make its strategies while entering into the market so as to make the market in favor of the camel milk. The relative position of the firm decides the profitability is above or below average of a particular industry. There are two basic types of competitive advantages which can be possessed by any particular firm that is low cost or differentiation and these two basic types of advantage combined with the scope of the activities and the firms try to achieve them. This leads to three generic strategies for achieving the above performance in the market-
Cost Leadership- In this kind of strategy the firm tries to become low cost producer in the whole industry and the sources of the advantage in the cost are varied and mostly depend on the structure of the industry which includes pursuit of economies of scale, preferential access to raw materials, proprietary technology and many other factors. The producer of low cost must fin and exploit all the sources of the cost advantages.
Differentiation- In this kind of strategy the firm should be having a unique in the whole industry along the various dimensions which are widely valued by the buyers. There is selection of a single or more attributes which is considered as important in an industry and positioned them in a unique place to meet the needs and the firm is rewarded with the premium price for its uniqueness.
Focus- The strategy of focus basically rests on the choice of a narrow scope of competition within an industry. A particular individual known as focuser selects a segment or a bunch of segment in the industry and manipulate its strategies to serve them to the exclusion of others. (Porter's Generic Competitive Strategies)
The basic job of the strategist is to understand the situation and cope with the competition but however managers have defined the competition very narrowly. There are five forces which are shaped that understand the industry situation is –
Threat of the new entrants
Bargaining power of the suppliers
Bargaining power of the buyers
Rivalry among existing competitors
Threat of substitute services or products.
The configurations of the forces differ from the industry and the strongest force determines the profitability and become most important in the formulation of the strategy. The camel milk should have to follow the five forces which have to make their profitability maximum.
Human Resource Strategy-
Human Resource Strategy in our view is a strategic process or outcome which is jointly shared by the line managers and human resources to solve the problems related with the business. The human resource department of the firm recruits top talent and keeps the present employees satisfied by their beneficial plans.
Human Resource strategies are as unique as the fingerprints because in order to flourish, they all need a special guidance and managerial support. As we are going to introduce camel milk in the international market so we will need a specific human resource strategies which could make the market in favor of the product. The company’s goals and objectives are kept in mind while attempting for a successful Human Resource strategies. We have to adopt more than one growing paths so as to place our investments and to find out the capabilities of the company to accomplish the choices of the growth. There should be both long term and short term objectives set to help the hiring managers which seek qualified talent for the open positions. The company’s objective should be kept in mind in order focus on the connection with the people and the goals themselves. There is specific framework which is followed by the company in order to set up the business in the other country because there are many weaknesses and threats which comes in the way while encountering the international market. The company provides with the opportunities and responsibilities to the employees wherever possible so as to enhance their efficiency, productivity and the quality of the end product as well as of the employees also. The personal responsibility which is provided to the employees set a defined purpose for the employees within the company to focus on their energies where they can have the greatest impact.
The company is entering the market so they have to develop human resource strategy within themselves to avoid the threats of the new entrants in the international market. As there are many hazards that most often spoil the success of the strategy so the strategies should be practical and most of the time close to the business. There should be pivot points in the talent and organization which should be find out in order to have the most positive impact on the results. There should be separate treatment given to the talent and jobs as both of them are the separate things at their places.
Finally there is a superb Human Resource strategy but it will be of no use if the proper professionals and channels are not in place to put that strategy in action, there is a support needed from top to down in order to succeed in the strategy formed by the company for entering in the international market.
As we all know if we are introducing camel milk in the foreign countries it is some kind of new and innovative product or services which will help in developing and capturing the minds of the people. The location of the business should be at the place where it is easy for the buyer, supplier and to the company. The process and procedures would be of best quality as in today’s world there is focus given on quality instead of quantity. The marketing expertise should be specialist in their respective field as the company is entering in the new market which will pose many different situations and problems in front of the company.
When we are entering an international market which can pose by many weaknesses to a particular company as the company could lack in the marketing expertise and the product could be undifferentiated or services could be same as the other competitors are giving which will not attract the customers for your product. The main weakness which comes in the way is the location of the business which be situated in a particular place where it is easier for both suppliers and buyers. The quality of the goods and services should be maintained and should be increased with the passage of time of the settling of the business. The reputation of the brand should be maintained throughout the service years as it would fetch more and more customers for their product.
There are many opportunities available for a particular company in an international market as it could provide a developing market for an instance internet. There are many joint ventures, mergers and strategic alliances. When the company is moving into a new market then the market segment in which the company is entering offer an improved profits. There are loads and loads of improved and profitable international market present in many countries where the company could maximize its profit. There may be chances of vacated place in the market through the ineffectiveness of the competitors which could be grasped as an opportunity.
At the time of entering an international market there is more chances of threats than any other thing. The main threat is the entry of new entrants in the home market which can bring up them with some different and attractive strategy in the market and grasp their customers. There is a price war which can be seen anytime of the year between the competitors whereas the competitor could bring up with the new, innovative and extraordinary services or products. There is a threat of the superiority in accessing the channels of distribution with the competitors and the other threat which could be imposed on the company is of taxation that is the product or services could face the imposing of taxation which can make the product costlier. So these were the major threats which could be imposed on the company. (SWOT Analysis, 2010)
So as we have discussed about various aspects related with the entering into the international market and the issues and strategies related with the introduction of the camel milk in the international market. The profile of the company is defined initially so as to develop various strategies related with the international market plan. The camel milk is the new and innovative product as there are not many places in the world where camel can be found except mainly in Asia and Africa. So it would help the company manufacture various kinds of product in order to capture the market related with the camel milk. There are no such kinds of competitors which can be found in the world market in order to provide competition to the company. There are various strategies discussed which could help the company sustain in the market which gives no chance of doing mistakes.
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