International Marketing Management Business Owners

Question: Describe about the International Marketing Management for Business Owners. Answer: Introduction Globalization is one of the most sought after tern by mist of the business owners in the market. The success of a business cannot be judged just by the revenue that an organization gaining but also by the extent to which they have been able to spread their business. The more internationally present they will be, the success rate of the company will rise accordingly. Situations will be more difficult for a company, which is operating in a developing country but is planning to venture in the developed countries. Starting from the difference in the economy of the country, until the way the staffs work in the organization, difference can be seen in every aspect of the business. Ceylon Biscuits Limited is in such company that is operating in the market of a developing country like Sri Lanka. Ceylon Biscuits Limited has thought of venturing in the developed countries like Dubai, Japan and Canada. The company is working in a developing country and hence, it has to be prepared with the idea that will help them to work in the developed countries. The report will mainly evaluate the demand that Ceylon Biscuits Limited need to fulfill to venture the business in the developed countries like Dubai, Japan and Canada. After the evaluation of the three countries, one country will be selected that where the venture will be most successful. Task 1 Corporate Readiness Corporate readiness can be defined as the state of an organization, a person or group of people when the people are ready to meet the demand of the market or an action that has been planned by the organization (Rafferty, Jimmieson and Armenakis 2013). Corporate readiness can come along an organization with the help of proper planning by the senior management and readiness among the employees to carry put a task in proper manner. Proper planning, apt decision-making, training of the employees in the organization, supply of the products, storing the resource and timely delivery of the business, can help an organization to achieve corporate readiness. The company Ceylon Biscuits Limited, which is based in Sri Lanka, is planning to venture in Canada, Japan and Dubai. To venture in the international marker proper planning with the human resource department and proper market research will help the organization to achieve the corporate readiness. As Sri Lanka is a developing country and the other three countries are developed, hence, there will be a difference in the way the people work in these countries. After the identification of the gap the corporate readiness of the company could be developed accordingly. Corporate Readiness Audit Existing Required Gap Strategy The main strategy followed by the organization is portfolio diversification. they aim at gaining a product leadership by innovating new kinds of products and trying to gain lore customers with the help diverse range of product The main driving force in the countries where the organization is thinking of expansions is innovation. There is stiff competition in the market and the more innovative the product will be, the better business will be gained from the products. No gap Structure The business of Ceylon Biscuits Limited is based on family structure. One family member reports to another and any issues is resolved within the family (cse.lk 2013). In addition to this, the new generation get the knowledge if business from the family rather than going outside for any kind of training. Countries like Japan, Canada and Dubai are more professional and the family business attitude might not suit in the developed countries. The organization need to adjust themselves with the professional and competitive nature of the organization that are operating in the developed nations Ceylon Biscuits Limited needs to recruit employees in the senior management to bring about a professionalism within the organization. Systems As Sri Lanka is developing country, hence the staffs work in a close relation with each other. They are cooperative as well as carry out their tasks well. Competitiveness is present within the organization and among the employees Along with keeping the cooperative attitude , the staffs need to be competitive to deliver the business well. Style The organization follows paternalistic leadership. The business of Ceylon Biscuits Limited is based on family and the leaders tell the employees how to proceed next In countries like Japan, Canada and Dubai, people tend to follow transformational leadership. The employees are asked to face challenges and the lead ear there to guide and monitor them Ceylon Biscuits Limited needs to teach the employees to take up challenges by themselves rather than going them in every step. Staff The staffs are cooperative with each other and are staying in the organization a long period The developed countries want employees who will stay in the organization for a longer time Ceylon Biscuits Limited need to send only those employees who are experienced and will be able to understand the operations in a prompt manner. Skills The skills are being developed in the organization with the help of the senior management. For example, an employee who joined as receptionist in the organization but the person is working as the HR executive (Muncheelk.com 2016). They need professional employees when they are recruited in the organization. they are ready to give the training but they want that the employees should come in the organization with proper knowledge. Shared Values The main value that is instilled among the employee of the organization is honesty. They believe that once they will be able to carry out he business ethically, they will be able to success in the long run At times, the organization is the developed countries are not able to perform ethically No gap Level of Readiness The company is required to venture into the international country as far as the competitiveness is concerned. With the help of the senior management, they are able to develop a good competitiveness among the employees. The employees are cooperative as well as competitive and hence they will not face any issue to venture in the international market. They carry out the business ethically and hence there will be lesser chance that they will land themselves in trouble. On the other hand, Ceylon Biscuits Limited is following a paternalistic leadership. The employees are always getting help from the senior management. After venturing in the international countries, they might not get the similar support and they need to learn to work independently. They need to include senior members in the senior positions to come out of the family-business attitude. In this way, they will have professional attitude towards work and will be able to deliver the business in prompt manner. Go International Decision Risk The main risk that Ceylon Biscuits Limited will face is the chance of closure of the business if they are not able to perform up to the expectation of the customers the developed countries (Oestreicher-Singe and Zalmanson 2012). The customers are well acquainted with more developed products and might have high expectations the company. If they are not able to live up to the expectation of the customers, chances are high that they will not be able to garner goo amount of profit from the market. Motivation The motivation that the employees will face is the extrinsic motivation, once the company will venture in the international market; chances are high that the compensation for the employees, the rewards and the benefits will rise accordingly (Amit and Zott 2012). Control Ceylon Biscuits Limited has to control the cost of venturing into the international market. The company has to employ new people in the organization and have to buy new equipments to support the new business in the organization (Chen et al. 2012). However, the cost should be controlled so that the amount of revenue will be high. Selection of countries Ceylon biscuits limited is one of the most important company that deals in manufacturing biscuits for the country. It is considered as one of the oldest biscuits manufacturers in the country. With its vast variety of products , it is beneficial for the company to expand its business overseas. Though it does practise exporting its products into the international market, yet, it has not been successful enough to expand its products to those places, from where it might gain the maximum profit (Slack 2015). With the aim of expanding its products, Ceylon biscuits limited chooses three countries in order to expand its production, as follows: Country A Canada Canada is a developing country, which has the ability to provide the country with the highest profit margin, there are no barriers to entry on the country, thereby facilitating the new export countries to enter the market. The culture of the country is quite forward, hence it enables various products to gain success in the country. The people of the country are of the notion to try everything new. With the essence of a new product in the market, the country would enable them to gain success. A Canadian dollar is equivalent to 112.24 sri lankan rupee. This shows that there is a great scope to develop from the earning made from Canada. Selling the products in a country where the currency is quite appreciated, would help in availing good earnings from the export of the products (Solomon 2014). Being a developed country, Canada has various biscuits manufacturing company within the country both domestic and international. Various kinds of biscuits have been introduced in the market. With the availability of various companies in the country, great competition exists with regard to the biscuit manufacturing sector of the company. Country B Dubai Dubai is a country, which has a strong export import sector . It is quite favourable for a company to export its products to a country which promotes international products the biscuit manufacturing industry of dubai is not well developed and the domestic manufacturers are very costly in comparison to Ceylon biscuits limited. This gives the company of sri lanka the opportunity to enter the market of dubai. Culture of dubai is quite variant in nature. With relation to their food culture, they agree to the acceptance of a foreign product up to a certain level. A dirham is equivalent t 40.14 sri lankan rupee . This throws light on the profit availability that could be enjoyed by ceylon biscuits limited in selling their products to the county. The market profile of dubai with respect to biscuits and chocolate industry is quite well developed with respect to the number of export companies doing business with the respected country (Cavusgil et al. 2014). This thereby raise the competition in the country as there are various companies already exposing their products in the country. Country C- Japan Japan is a developed economy that has greater efficiency in producing all kinds of products within its own country. Though there are the possibility of exposing the products of ceylon biscuits limited in japan to greater extent, yet, the competitive structure of the company is quite high. Market profile of japan is distributed in various sectors, where the people have strong cultural support towards their maintained tastes and preferences. The currency of japan is equivalent to 1.42 sri Lankan rupee. There are possibilities of gaining exports, yet, not as much as the countries mentioned above. Analysis of the Country Options CANADA DUBAI JAPAN Selected criteria Weight (difficult =1 to easy=10) Weight score Weight score Weight score Barriers to entry 1 10 7 8 5 Culture 1 10 7 6 3 Market profile 1- 10 6 6 5 Competition 1 10 5 4 2 Total 40 25 24 15 Review of the country market CANADA DUBAI JAPAN ACTIONABLE Opportunities Market entry Beneficial to enter the market. Beneficial to enter the market. market entry has some barriers . Cross culture The culture is versatile in nature thereby helping to facilitate growth. Welcomes the inclusion of other countrys product up to a certain level. The culture of the country is too strong which promotes their own cultures. Financial consideration Developed country with good financial background. Developed country with good financial background. Financial consideration is not as strong as the other mentioned countries. Market and demand The demand for food is quite high. The demand for food is quite high. Competition Many developed companies are already present in the market. Many developed companies are already present in the market There is immense competition in the country with the domestic and international companies. Potential Threats Market entry Threats related to the country laws. Poses a threat to the company . Cross culture - Culture of the country might cause a threat to entry up to a certain level. Strict cultural issues followed by the country. Financial consideration - - Financial consideration is high, yet not as efficient as the other two countries. Market and demand - - - Competition Competition in the country is quite high in relation to both domestic and international producers. Competition is quite high, but not as high as that of Canada. Competition is quite high comparatively to the other countries. Country Market Choice According to the analysis of the three countries analysed in the section, it can be said that Canada is considered as the most suitable country for the expansion of Ceylon biscuits limited in the upcoming one year . Market entry strategies Market entry strategies consists of various methods and plans that are analysed in order to help the company referred . These planned strategies are efficient enough that uses carious plans to help a company enter its respective market. This would the company to successfully enter the market and raise the market share with greater efficiency and accuracy (Tasavori, Ghauri and Zaefarian 2016). Ceylon biscuits limited are planning to expand their business internationally. It is quite efficient to plan a market entry strategy for the company. The strategies could be both direct and indirect in nature and they have some associated trade risks too. These strategies help in analysing the ways of entering the market and decreasing the trade risks associated. the strategies that are chosen to be implemented by the Ceylon biscuits limited company if sri lanka in order to expand its business internationally to countries like Canada , dubai and japan are franchising and direct marketing. Evaluation of market entry Franchising franchising is considered as one of the efficient strategy adopted for market entry. While entering a new country, the aim of the company is to raise their market share . In order to raise the market share, the company must instigate the demand for its goods and raise the availability of their products. This could be done by the adoption of franchising. By allowing franchisee of the products, there would be more availability of the products in the market. This would generate an eagerness to taste the product of an international company. Ceylon with its wide varieties of biscuits, organic foods, and chocolates can attract the customers towards itself. Franchise also helps in advertising the products by availing it to the customers easily. Disadvantages attached to this methods is that it is quite difficult to attain franchisee in a foreign country and moreover, before favourable franchising of the goods, the products must be quite famous in nature to attract the franchise e owners. Direct Marketing direct marketing is another method of facilitating growth in the export sector of an economy. Ceylon biscuits limited is considered as one of the most developed companies of sri lanka, and it has stated its initial level of exporting its products globally. To facilitate the growth of its products to almost all the places with greater efficiency, direct marketing is one of the efficient method considered. By introducing online application software for the products of the company, would help the company to directly sell its products to the customers overseas (Perreault Jr, Cannon and McCarthy 2013). The disadvantages related to such a method are that there are costs to be incurred with respect to warehouses to be constructed in various centres around the world. This incurs lots of investment in the market. Proposed market entry The market entry strategy associated with the entry of Ceylon biscuits limited globally, are direct marketing and franchising. Franchising is followed by various international companies such as mcdonalds, pizza hut, subway, dunkin donots, etc. These companies have used franchising as a market entry strategy very efficiently. It has provided the companies with huge profit margin and has raised the market share of the company with greater efficiency. As Ceylon biscuits limited aims at expanding its business at firsts in Canada, it is quite an effective method to enable franchising of the products. The company has a wide variety of products, with variations in tastes (Lusch and Vargo 2014). Countries like Canada invite these organizations thereby promoting their products. Another strategy associated with the market entry plans of ceylon biscuits limited is direct marketing. Direct marketing is associated with marketing its products to the customers overseas, directly. This is an efficient method that does not involves any kind of intermediaries in the distribution channel. Various companies such as nike, nestle, twg tea, etc., have promoted their products and sod them directly to the customers online. This online transaction helps the customers to know about the products in detail. Ceylon biscuits limited, being one of the most important companies in the industry, has greater varieties of products , which could be easily promoted online to the customers with their exact constituents and specifications. This method is more customer friendly and accurate for market entry of a company in a new country. Market entry plan Depending upon the market strategy of expansion for a company there must be a strategical analysed plan, which would aim at achieving the objectives of expanding a business globally by accepting the steps laid in accordance with the plan. Market entry plan helps in stabilising the business of an organization overseas, that would help in promoting the business of an organization internationally. A company plans the method and steps in relation to the strategies adopted for market entry, when it agrees the acceptance of market entry plan (Grant 2016). Critical success factor is that factor for an organization that helps in achieving the objectives of the organization. Critical success factors are related to those areas of an organization that is necessary to maintain the objectives of an organization. It helps in analysing the key factors that affects the functioning of a company. Each company has critical factors which affects its progress in a market. Gantt chart PRINCIPAL ACTIVITIES JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC Proposing the country for expansion of business Analysing the opportunities and threats of expanding the business Framing the marketing strategies related to market expansion Preparation of companys online site Issuing various advertisements and promotions in the countries where expansion is to be generated. Engaging into various meeting with the export trading centres of the domestic country. Conducting meeting with the embassies of other countries. Advertising for franchising its products. Recruiting management and accountants to carry on the overseas business Analysing sales of the company in international markets. Calculating the sales, revenues and profit generated from the strategy. the above mentioned gantt chart helps in preparing and planning the market strategy to be followed in the first year of market expansion by Ceylon biscuits limited . these plans implements various steps such as : Proposing the strategies for expansion Analysing opportunities and threats for business expansion Framing the marketing strategies for market expansion Preparation of companys online site Issuing various advertisements and promotions in the countries where expansion is to be generated Engaging into various meeting with the export trading centres of the domestic country. Conducting meeting with the embassies of other countries. Advertising for franchising its products. Recruiting management and accountants to carry on the overseas business. Analysing sales of the company in international markets. Calculating the sales, revenues and profit generated from the strategy. These plans would help in framing the ideal situation of market entry plan which would efficiently enable the company to promote its products and raise the market share in the firsts year of the business (Grimm, Hofstetter, and Sarkis 2014). The work has been divide into all the twelve months, where the last month would be helpful in achieving the profit margin of the company related to the expansion. Critical success factors The critical factors to be analysed by the Ceylon biscuits limited is that there must be efficiency in the management program for international business expansion, there must be keen interest taken on promoting the products of the company and there should be an efficient supply chain management of the organization . An efficient international expansion management system would enable an organized method of expanding the business and dealing with various hurdles efficiently to overcome the problems that might come in the expansion program (Hisrich 2015). The management program would also help in achieving the targets of the organization and facilitate growth in the foreign country as that would provide the company with greater scope on areas which needs more attention. Promotion of the products of the company in the foreign country should be effectively done, that would help in raising the demand of the products in those countries. As there are many companies already functioning in the country, it is important to incorporate selling costs associated to the promotion of the products (Terpstra, Foley and Sarathy 2012). This would generate a sense of differentiation to the products of the company. An efficient supply chain management of the organization would help in the distribution system of the organization. This system must be quite efficient in nature as the products are supposed to be supplied in the overseas market. The supply chain management must be divided into various segments, that would help in supplying the products ordered by the international customers with great accuracy (Brouthers 2013). Conclusion Ceylon Biscuits Limited is in such company that is operating in the market of a developing country like Sri Lanka. Ceylon Biscuits Limited has thought of venturing in the developed countries like Dubai, Japan and Canada. The company is working in a developing country and hence, it has to be prepared with the idea that will help them to work in the developed countries. This report has provided the company , with its analysis of historical background, scope for expanding in the foreign countries, market strategies to be implanted and the marketing plan to be analysed in order to produce an effective expansion of the business. The plan should be aligned with the idea of globalisation in accordance with the aim and objectives of the company. The company should not only focus on producing enough profit margin but also aim at projecting their market shares by analysing the market entry plan and strategies framed in the report. References Amit, R. and Zott, C., 2012. Creating value through business model innovation.MIT Sloan Management Review,53(3), p.41. Brouthers, K.D., 2013. 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