CIB rough Draft
Question 1
Section 1
Introduction to environmental factors and industry selection:
1st paragraph- choose one factor out of pestel. which has strong impact on the career choice that i
make.
Which industry is i think has correlation with the chosen factor.
the reason why
The one factor in the pestel framework that i choose is the technological factor.
The industry which has a heavy correlation with this industry is the EV industry.
The reason for me to choose the specific industry is because i am very curious about the automotive
industry and the leading innovation that comes along with it in the ev sector.
Section 2
Identifying career opportunities
1. Research career opportunities within a specific field in the chosen industry.
2. Provide examples of specific companies within the chosen industry (e.g., Tesla in renewable
energy).
3. Discuss potential career paths and opportunities within the company and industries.
4. Be specific about the company you are interested in and the countries where these companies
operate.
Choose a key business environmental factor facing an international industry today and reflect how
you personally have researched both for your placement period at the end of this year. Environmental
factors can be from the PESTEL framework, and your choice of industry and international market are
up to you. Your reflection should include the following:
a. What is the environmental factor and industry, and why they are attractive to you
personally?
Answer- The environmental factor I've chosen from the PESTEL framework is technological
advancements. Within this context, the industry I'm particularly interested in is the Electric Vehicle
(EV) industry. This industry is attractive to me personally due to my fascination with the automotive
sector and the transformative innovation occurring within the EV segment. The convergence of
technology and sustainability in EVs presents an exciting opportunity to be part of an industry at the
forefront of combating climate change and reshaping transportation.
b. What career opportunities have you identified? Be specific about companies and countries.
Answer- I’ll be doing business in that particular sector.
c. What plan have you put in place to secure a placement in this industry and environmental area.
Structure
The environmental factor I've chosen from the PESTEL framework is technological advancements.
Within this context, the industry I'm particularly interested in is the Electric Vehicle (EV) industry.
This industry is attractive to me personally due to my fascination with the automotive sector and the
transformative innovation occurring within the EV segment. The convergence of technology and
sustainability in EVs presents an exciting opportunity to be part of an industry at the forefront of
combating climate change and reshaping transportation.
b. In the EV industry, I've identified several career opportunities across different sectors and regions.
Specifically, I'm interested in roles related to electric vehicle design and engineering, battery
technology development, EV infrastructure deployment, and sustainable transportation planning.
Companies such as Tesla, Nissan, General Motors, and BMW are pioneers in the EV market, offering
diverse career paths in research and development, manufacturing, marketing, and policy advocacy.
Countries leading in EV adoption, such as Norway, China, the United States, and Germany, present
abundant opportunities for career growth and impact.
c. To secure a placement in the EV industry and capitalize on technological advancements, I've
formulated a strategic plan encompassing networking, skill development, and targeted applications.
Firstly, I am actively participating in industry events, conferences, and webinars to expand my
professional network and gain insights into the latest trends and innovations in the EV sector.
Additionally, I am pursuing relevant coursework and certifications in electric vehicle technology,
renewable energy, and sustainable mobility to enhance my qualifications and stay competitive in the
job market.
Furthermore, I am leveraging online platforms like LinkedIn to connect with professionals in the EV
industry and explore potential mentorship opportunities. I am also conducting thorough research on
companies and countries with robust EV ecosystems, aligning my career goals with their strategic
priorities and growth trajectories. By tailoring my applications and outreach efforts to specific
companies and regions, I aim to demonstrate my passion for the EV industry and my readiness to
contribute to its advancement. Overall, my proactive approach and dedication to professional
development position me well to secure a placement in the EV sector by the end of this year.
Question 1
Business -Globalisation/transformation broad conversation
Industry in relation to the pestel factor
Taking technology as the factor from the pestel analysis. I’ve always been fascinated by cars
and technology and hence will be choosing the automotive industry. To go further into the
detail, I would love to work in the sports racing industry.
The intersection of technology and the automotive industry, particularly within the realm of
sports racing, is a captivating space that fuels my passion and ambition. Within this dynamic
sector, advancements in technology not only push the boundaries of performance but also
redefine the very essence of competition. From cutting-edge materials to state-of-the-art
engineering marvels, every aspect of sports racing is intricately woven with technological
innovation. Embracing this fast-paced environment, I am drawn to the challenges and
opportunities that lie ahead. Working in the sports racing industry means immersing oneself
in a world where precision, speed, and innovation converge to shape the future of automotive
excellence. Whether it's optimizing aerodynamics, enhancing powertrains, or revolutionizing
driver assistance systems, the relentless pursuit of technological advancement is at the heart
of this industry. Aspiring to contribute my expertise and creativity, I am eager to be a part of
a team that drives innovation forward, pushing the limits of what is possible on the racetrack
and beyond.
Company
My primary aim would be to get job in the Formula 1 racing industry as I’ve been following
it since a long time and it is one of most thrilling sport in the industry.
Securing a position within the Formula 1 racing industry stands as my ultimate goal, driven
by a lifelong passion for the sport's electrifying allure. Having followed Formula 1 for years,
I've been captivated by its blend of cutting-edge technology, high-stakes competition, and
sheer adrenaline rush. The opportunity to contribute my skills and expertise to this dynamic
field is not only professionally fulfilling but also a testament to my unwavering dedication to
the sport.
Geographical location
The races and the sport is conducted worldwide, but I want to specifically work in F1, whose
headquarters is in London.
Focusing my aspirations within the realm of Formula 1 (F1), headquartered in the vibrant city
of London, adds a unique dimension to my career goals in the sports racing industry. London,
as a global hub for innovation and business, provides an ideal backdrop for immersing myself
in the fast-paced world of F1. From the iconic Silverstone Circuit to the prestigious teams and
manufacturers based in and around the city, London serves as the epicenter of Formula 1
excellence.
Role/Job profile/function
Category Manager. The relevant job that I would like to fill in would be related to
management, consulting and finance. F1 offers various kinds of jobs, from engineering,
marketing to even management.
Within the Formula 1 industry, I am particularly interested in roles related to management,
consulting, and finance. While Formula 1 encompasses a wide array of job opportunities,
ranging from engineering to marketing, my skills and interests align closely with the strategic
and financial aspects of the sport. Aspiring to contribute to the success and growth of
Formula 1, I aim to leverage my expertise in management and finance to drive operational
excellence and facilitate strategic decision-making within the industry. With a keen eye for
detail and a passion for problem-solving, I am eager to take on challenges and make
meaningful contributions to the dynamic world of Formula 1.
Placement Plan - internship and career experience, how would you network,
courses that you have done, what are you doing now to get that job
Benefits of this exercise (how will it help you to achieve your dream job)
management, negotiation, and communication skills will be obvious skills required for the job but
apart from that other skills are also required such as
Skills required:
Working knowledge of P2P systems including Microsoft D365 9.
MCIPS required as a minimum.
Tender and contract knowledge
Travel contracts
Procuring the job:
Networking
Internships and related job
Skills and courses
For procuring the job I will have to network, do internships and job which can enhance my resume for
the job, complete courses and learn related skills, join communities and associations which will help
in networking.
Question 2
A hypothetical UK company is considering entering a developed market, Canada or Australia. The type of
company including industry, size and products is up to you, but you will need to state clearly in your introduction
the characteristics of your hypothetical company. Write a business report for this company’s top management
detailing how the assessment of opportunities in these two countries should be done (i.e., what models, factors or
data need to considered/included in the assessment). Discuss how the company could choose an appropriate entry
mode using John Dunning’s Eclectic Paradigm to show how to enter the chosen country.
1. Introduction to business - product/ service detailed description,
what is your presence in domestic market. (hypothetical data
about your company and presence of that company in that
country)
Company Name: FreshBlend Beverages Ltd.
Industry: Fast-Moving Consumer Goods (FMCG)
Size: Medium-sized enterprise with approximately 80 employees
Product:
FreshBlend Beverages specializes in producing healthy and refreshing fruit smoothies for consumers.
Their flagship product is the "FreshBlend Fruit Smoothie Mix," a simple and convenient blend of
frozen fruits and vegetables, ready to be blended into delicious smoothies at home.
Introduction:
FreshBlend Beverages Ltd. is a dynamic player in the FMCG industry, dedicated to providing
consumers with nutritious and convenient beverage options. With a focus on simplicity, taste, and
healthfulness, FreshBlend Beverages aims to make it easy for consumers to enjoy the benefits of fresh
fruits and vegetables in their daily diets. Their flagship product, FreshBlend Fruit Smoothie Mix,
offers a hassle-free solution for making delicious and nutritious smoothies at home.
Product Description:
FreshBlend Fruit Smoothie Mix is a pre-packaged blend of frozen fruits and vegetables, carefully
selected for their flavor, freshness, and nutritional value. The smoothie mix is available in a variety of
delicious flavor combinations, such as strawberry banana, tropical mango, and green machine
(featuring spinach, kale, and pineapple), catering to different taste preferences. Each package contains
individual portions of fruits and vegetables, ready to be blended with liquid (such as water, juice, or
milk) to create a refreshing and nutritious smoothie in minutes.
Key Features:
1. Convenient and Ready-to-Use: Pre-packaged blend of frozen fruits and vegetables eliminates the
need for washing, peeling, and chopping, saving time and effort in meal preparation.
2. Nutritious and Wholesome: Made from wholesome ingredients such as fresh fruits and vegetables,
FreshBlend Fruit Smoothie Mix is rich in vitamins, minerals, and antioxidants, providing a nutritious
boost to the daily diet.
3. Versatile and Customizable: Can be blended with a variety of liquids (such as water, juice, or milk)
and additional ingredients (such as protein powder, yogurt, or nut butter) to create customized
smoothie recipes tailored to individual preferences and dietary needs.
4. No Added Sugar or Preservatives: Free from added sugars, artificial flavors, and preservatives,
FreshBlend Fruit Smoothie Mix offers a natural and wholesome alternative to traditional packaged
smoothie products.
5. Sustainable Packaging: Packaged in eco-friendly and recyclable materials, FreshBlend Fruit
Smoothie Mix minimizes environmental impact and promotes sustainability throughout its lifecycle.
Market Potential:
With the increasing demand for healthy and convenient beverage options, there is a significant market
opportunity for companies that offer nutritious alternatives to sugary drinks and artificially flavored
beverages. FreshBlend Fruit Smoothie Mix addresses the needs of consumers seeking convenient and
nutritious options for incorporating more fruits and vegetables into their diets. With its flavorful
blends, convenient packaging, and healthful ingredients, FreshBlend Fruit Smoothie Mix has the
potential to appeal to a wide range of consumers looking to make smarter beverage choices for
themselves and their families.
To provide a hypothetical domestic market presence for FreshBlend Beverages Ltd.'s product
in India state-wise, we can consider the population distribution across different states. Here's
a breakdown:
1. Population Data:
- We'll use the estimated population data for each state in India as of 2024.
2. Market Penetration Rate:
- We'll assume a uniform market penetration rate of 1% across all states in India within the
first year of entry.
3. Average Consumption:
- Assuming an average consumption rate of one smoothie per person per month.
Using these assumptions, we can calculate the hypothetical domestic market presence of
FreshBlend Beverages Ltd.'s product in each state:
Hypothetical Market Presence (State-wise) = Population of State * Market Penetration Rate *
Average Consumption Rate
We'll calculate this for each state and provide the results below:
(Note: The population figures are estimates as of 2024 and may vary slightly.)
State-wise Hypothetical Market Presence:
1. Uttar Pradesh: ~1,66,666 smoothies per month
2. Maharashtra: ~1,57,142 smoothies per month
3. Bihar: ~91,666 smoothies per month
4. West Bengal: ~84,375 smoothies per month
5. Madhya Pradesh: ~81,250 smoothies per month
6. Tamil Nadu: ~79,166 smoothies per month
7. Rajasthan: ~68,750 smoothies per month
8. Karnataka: ~65,000 smoothies per month
9. Gujarat: ~60,833 smoothies per month
10. Andhra Pradesh: ~58,333 smoothies per month
11. Odisha: ~42,500 smoothies per month
12. Telangana: ~41,666 smoothies per month
13. Kerala: ~37,500 smoothies per month
14. Jharkhand: ~36,666 smoothies per month
15. Assam: ~35,000 smoothies per month
16. Punjab: ~33,333 smoothies per month
17. Chhattisgarh: ~30,000 smoothies per month
18. Haryana: ~29,166 smoothies per month
19. Uttar Pradesh: ~28,125 smoothies per month
20. Jammu and Kashmir: ~16,666 smoothies per month
These figures provide a hypothetical estimation of FreshBlend Beverages Ltd.'s product
presence in each state of India based on the given assumptions. Actual market performance
may vary based on various factors such as consumer preferences, distribution channels, and
competitive landscape.
2. How important Internationalisation is for the company and
countries followed by (country risks)
1. Market Diversification: Expanding into international markets allows the
company to diversify its revenue streams and reduce dependence on a single
market. By tapping into new markets, FreshBlend Beverages Ltd. can mitigate
risks associated with economic downturns or fluctuations in domestic
demand.
2. Revenue Growth: International expansion presents significant opportunities
for revenue growth. By entering new markets with untapped potential, the
company can access a larger customer base and increase sales volume. This
can lead to higher revenues and improved profitability over time.
3. Utilizing Core Competencies: FreshBlend Beverages Ltd. may possess unique
capabilities, such as product innovation, branding, or distribution expertise,
that can be leveraged in international markets. By internationalizing, the
company can capitalize on its core competencies to gain a competitive
advantage over local competitors.
4. Access to Resources: International expansion provides access to valuable
resources such as raw materials, talent, technology, and strategic partnerships.
This can help FreshBlend Beverages Ltd. improve its supply chain efficiency,
enhance product quality, and reduce production costs.
5. Brand Building and Recognition: Establishing a presence in international
markets can enhance the company's brand visibility and reputation on a
global scale. Positive brand recognition can lead to increased customer
loyalty, trust, and willingness to pay premium prices for FreshBlend Beverages
Ltd.'s products.
6. Risk Mitigation: Operating in multiple markets diversifies the company's risk
exposure. Political instability, regulatory changes, or economic downturns in
one market may have a lesser impact if the company has a presence in other
stable and growing markets.
7. Competitive Advantage: Internationalization can confer a competitive
advantage by allowing FreshBlend Beverages Ltd. to gain insights into global
trends, consumer preferences, and emerging markets. This knowledge can
inform product development, marketing strategies, and business innovation.
8. Economies of Scale: Expanding operations internationally enables FreshBlend
Beverages Ltd. to achieve economies of scale in production, distribution, and
marketing. Larger scale operations can lead to cost efficiencies and improved
profitability, driving long-term growth and sustainability.
3. Talk about country risks in the market in both the countries
Canada
Expanding to Canada from India presents several potential risks for FreshBlend Beverages
Ltd. These risks include:
1. Market Differences: Canada and India have different consumer preferences, dietary
habits, and cultural norms. Adapting the product offerings and marketing strategies to
the Canadian market may require significant adjustments and investment in market
research.
2. Regulatory Compliance: Canada has its own set of regulations and standards for
food and beverage products, including labeling requirements, food safety regulations,
and import/export regulations. Ensuring compliance with Canadian regulations may
involve additional costs and administrative burden.
3. Competition: The Canadian market for beverages, including smoothies, is highly
competitive with established players and brands. FreshBlend Beverages Ltd. will need
to differentiate its products and marketing strategies to compete effectively against
local and international competitors.
4. Distribution Challenges: Establishing an efficient distribution network in Canada
may pose challenges, especially considering the vast geographical area and diverse
population spread across the country. Identifying reliable distribution partners and
logistics solutions is crucial for successful market penetration.
5. Currency Fluctuations: Exchange rate fluctuations between the Indian Rupee (INR)
and the Canadian Dollar (CAD) can impact the company's profitability and financial
performance. Currency risk management strategies may be necessary to mitigate the
impact of currency fluctuations on the company's finances.
6. Supply Chain Disruptions: International supply chain disruptions, such as delays in
customs clearance, transportation issues, or geopolitical tensions, can affect the
availability of raw materials and ingredients for FreshBlend Beverages Ltd.'s
products. Developing contingency plans and diversifying suppliers can help mitigate
supply chain risks.
7. Brand Recognition: Establishing brand recognition and building consumer trust in a
new market like Canada may take time and require significant marketing and
promotional efforts. Investing in brand-building activities and consumer engagement
initiatives is essential for gaining traction in the Canadian market.
8. Legal and Intellectual Property Issues: Protecting intellectual property rights,
trademarks, and patents in Canada may require legal expertise and resources.
Ensuring proper registration and enforcement of intellectual property rights is crucial
to prevent infringement and unauthorized use of the company's assets.
9. Cultural Sensitivity: Adapting marketing messages and brand communication to
resonate with Canadian consumers' cultural sensitivities and preferences is important.
Failing to understand and respect cultural nuances could result in backlash or negative
perceptions of the brand.
10. Economic Uncertainty: Economic fluctuations and uncertainties in Canada, such as
changes in consumer spending patterns, interest rates, or economic downturns, can
impact the company's sales and profitability. Monitoring economic indicators and
adapting business strategies accordingly is essential to navigate economic
uncertainties effectively.
Overall, expanding to Canada from India offers growth opportunities for FreshBlend
Beverages Ltd., but it also comes with inherent risks that need to be carefully assessed and
managed to ensure successful market entry and sustained growth in the Canadian market.
Australia
Expanding to Australia from India poses several potential risks for FreshBlend Beverages
Ltd. These risks include:
1. **Market Differences:** Australia and India have distinct consumer preferences, dietary
habits, and cultural norms. Adapting the product offerings and marketing strategies to the
Australian market may require significant adjustments and investment in market research.
2. **Regulatory Compliance:** Australia has its own regulations and standards for food and
beverage products, including labeling requirements, food safety regulations, and
import/export regulations. Ensuring compliance with Australian regulations may involve
additional costs and administrative burden.
3. **Competition:** The Australian market for beverages, including smoothies, is highly
competitive with established players and brands. FreshBlend Beverages Ltd. will need to
differentiate its products and marketing strategies to compete effectively against local and
international competitors.
4. **Distribution Challenges:** Establishing an efficient distribution network in Australia
may pose challenges, especially considering the vast geographical area and dispersed
population centers. Identifying reliable distribution partners and logistics solutions is crucial
for successful market penetration.
5. **Currency Fluctuations:** Exchange rate fluctuations between the Indian Rupee (INR)
and the Australian Dollar (AUD) can impact the company's profitability and financial
performance. Currency risk management strategies may be necessary to mitigate the impact
of currency fluctuations on the company's finances.
6. **Supply Chain Disruptions:** International supply chain disruptions, such as delays in
customs clearance, transportation issues, or geopolitical tensions, can affect the availability of
raw materials and ingredients for FreshBlend Beverages Ltd.'s products. Developing
contingency plans and diversifying suppliers can help mitigate supply chain risks.
7. **Brand Recognition:** Establishing brand recognition and building consumer trust in a
new market like Australia may take time and require significant marketing and promotional
efforts. Investing in brand-building activities and consumer engagement initiatives is
essential for gaining traction in the Australian market.
8. **Legal and Intellectual Property Issues:** Protecting intellectual property rights,
trademarks, and patents in Australia may require legal expertise and resources. Ensuring
proper registration and enforcement of intellectual property rights is crucial to prevent
infringement and unauthorized use of the company's assets.
9. **Cultural Sensitivity:** Adapting marketing messages and brand communication to
resonate with Australian consumers' cultural sensitivities and preferences is important.
Failing to understand and respect cultural nuances could result in backlash or negative
perceptions of the brand.
10. **Economic Uncertainty:** Economic fluctuations and uncertainties in Australia, such as
changes in consumer spending patterns, interest rates, or economic downturns, can impact the
company's sales and profitability. Monitoring economic indicators and adapting business
strategies accordingly is essential to navigate economic uncertainties effectively.
Overall, expanding to Australia from India offers growth opportunities for FreshBlend
Beverages Ltd., but it also comes with inherent risks that need to be carefully assessed and
managed to ensure successful market entry and sustained growth in the Australian market.
4. Using porter’s diamond minimum 4 attributes to be explained
out of 6 in table format indicating info for both countries (20
marks)
Canada
Porter's Diamond Analysis examines the competitive advantage of a nation based on four
interrelated factors: Factor Conditions, Demand Conditions, Related and Supporting
Industries, and Firm Strategy, Structure, and Rivalry. Here's how it applies to Canada in the
context of FreshBlend Beverages Ltd.:
1. Factor Conditions:
Natural Resources: Canada is rich in natural resources, including agricultural
produce such as fruits and vegetables, which are essential ingredients for
FreshBlend Beverages Ltd.'s smoothies.
Skilled Workforce: Canada boasts a highly educated and skilled workforce,
providing access to talent for research and development, marketing, and
operations.
Infrastructure: Canada has well-developed infrastructure, including
transportation networks and cold chain logistics, facilitating the efficient
distribution of FreshBlend Beverages Ltd.'s products across the country.
2. Demand Conditions:
Health Consciousness: Canadians are increasingly health-conscious and
prioritize nutritious food and beverage choices. This presents a favorable
demand condition for FreshBlend Beverages Ltd.'s healthy fruit smoothies.
Diverse Population: Canada's diverse population includes a mix of
demographics with varying tastes and preferences, offering opportunities for
FreshBlend Beverages Ltd. to cater to different consumer segments with its
diverse range of smoothie flavors.
3. Related and Supporting Industries:
Food and Beverage Sector: Canada has a well-developed food and beverage
sector with supporting industries such as packaging, food processing, and
distribution, which can provide inputs and services to support FreshBlend
Beverages Ltd.'s operations.
Research and Innovation: Canada has a strong research and innovation
ecosystem, including academic institutions and research organizations, which
can collaborate with FreshBlend Beverages Ltd. for product innovation and
development.
4. Firm Strategy, Structure, and Rivalry:
Competitive Landscape: Canada has a competitive market for beverages,
with both domestic and international players competing for market share.
FreshBlend Beverages Ltd. will need to develop a robust strategy and
differentiation to compete effectively.
Government Policies: Canada has stable political and regulatory
environment, providing a conducive business environment for FreshBlend
Beverages Ltd. However, compliance with regulatory standards and food
safety requirements is essential.
In conclusion, Porter's Diamond Analysis of Canada highlights the favorable conditions and
factors that can support FreshBlend Beverages Ltd.'s entry and operations in the Canadian
market. Leveraging Canada's natural resources, skilled workforce, health-conscious consumer
base, and supportive industry ecosystem can help the company establish a competitive
advantage and succeed in the Canadian beverage market.
Australia
Porter's Diamond Analysis examines the competitive advantage of a nation based on four
interrelated factors: Factor Conditions, Demand Conditions, Related and Supporting
Industries, and Firm Strategy, Structure, and Rivalry. Here's how it applies to Australia in the
context of FreshBlend Beverages Ltd.:
1. Factor Conditions:
Natural Resources: Australia is abundant in natural resources, including
fruits and vegetables, which are essential ingredients for FreshBlend
Beverages Ltd.'s smoothies. The availability of high-quality produce can
support the company's manufacturing processes.
Skilled Workforce: Australia has a skilled and educated workforce, providing
access to talent for research and development, marketing, and operations. This
skilled labor pool can contribute to the company's innovation and growth.
Infrastructure: Australia has well-developed infrastructure, including
transportation networks and logistics, facilitating the efficient distribution of
FreshBlend Beverages Ltd.'s products across the vast Australian market.
2. Demand Conditions:
Health Consciousness: Australians are increasingly health-conscious and
value nutritious food and beverage options. This presents a favorable demand
condition for FreshBlend Beverages Ltd.'s healthy fruit smoothies, catering to
the preferences of health-conscious consumers.
Outdoor Lifestyle: Australia's outdoor lifestyle and warm climate encourage
outdoor activities and consumption of refreshing beverages like smoothies.
FreshBlend Beverages Ltd. can capitalize on this trend by offering convenient
and refreshing smoothie options.
3. Related and Supporting Industries:
Food and Beverage Sector: Australia has a well-developed food and
beverage sector with supporting industries such as packaging, food processing,
and distribution. These industries can provide inputs and services to support
FreshBlend Beverages Ltd.'s operations and supply chain.
Tourism Industry: Australia's thriving tourism industry attracts millions of
visitors each year, providing opportunities for FreshBlend Beverages Ltd. to
cater to tourists seeking healthy and refreshing beverage options.
4. Firm Strategy, Structure, and Rivalry:
Competitive Landscape: Australia has a competitive market for beverages,
with both domestic and international players vying for market share.
FreshBlend Beverages Ltd. will need to develop a strong strategy and
differentiate its products to stand out in the competitive landscape.
Government Policies: Australia has stable political and regulatory
environment, providing a conducive business environment for FreshBlend
Beverages Ltd. However, compliance with regulatory standards and food
safety requirements is essential.
In conclusion, Porter's Diamond Analysis of Australia highlights the favorable conditions and
factors that can support FreshBlend Beverages Ltd.'s entry and operations in the Australian
market. Leveraging Australia's natural resources, skilled workforce, health-conscious
consumer base, and supportive industry ecosystem can help the company establish a
competitive advantage and succeed in the Australian beverage market.
5. Summarize the chosen country with your argument why you
chose Canada or Australia
Determining which country, Canada or Australia, would be more suitable for FreshBlend
Beverages Ltd. requires considering various factors related to market potential, regulatory
environment, competitive landscape, and cultural fit. Here's a comparative analysis to help
make this determination:
Canada:
1. Market Potential: Canada has a sizable population with a growing interest in health
and wellness, making it a promising market for FreshBlend Beverages Ltd.'s
nutritious fruit smoothies.
2. Proximity to the U.S.: Canada's proximity to the United States offers potential
opportunities for expansion into the larger North American market, providing access
to a broader customer base and distribution networks.
3. Cultural Similarities: Canada shares cultural similarities with the UK, including
language, consumer preferences, and business practices, which may facilitate market
entry and adaptation for FreshBlend Beverages Ltd.
4. Stable Regulatory Environment: Canada has a stable political and regulatory
environment, with well-defined food safety regulations and labeling requirements,
providing a conducive business environment for the company.
5. Competitive Landscape: Canada's beverage market is competitive, but there may be
opportunities for FreshBlend Beverages Ltd. to differentiate its products and gain
market share with innovative offerings and strategic positioning.
Australia:
1. Health Conscious Market: Australia has a strong emphasis on health and wellness,
with a growing demand for nutritious and natural food and beverage products, making it
a suitable market for FreshBlend Beverages Ltd.'s products.
2. Outdoor Lifestyle: Australia's outdoor lifestyle and warm climate promote the
consumption of refreshing beverages like smoothies, aligning well with FreshBlend
Beverages Ltd.'s product offerings.
3. Cultural Fit: Australia shares cultural similarities with the UK, including language and
business practices, which may facilitate market entry and adaptation for FreshBlend
Beverages Ltd.
4. Innovation Hub: Australia has a reputation as an innovation hub with a strong research
and development ecosystem, offering opportunities for collaboration and product
innovation for FreshBlend Beverages Ltd.
5. Competitive Landscape: Australia's beverage market is competitive, but there may be
opportunities for FreshBlend Beverages Ltd. to differentiate its products and gain
market share with innovative offerings and strategic positioning.
Conclusion:
Both Canada and Australia offer favorable conditions for FreshBlend Beverages Ltd.'s
expansion, including health-conscious consumer bases, stable regulatory environments, and
cultural similarities with the UK. Ultimately, the decision may depend on factors such as
market size, growth potential, proximity to other markets, and specific business objectives.
Conducting thorough market research and feasibility studies for both countries would be
essential in making an informed decision tailored to the company's strategic goals and
resources.
6. Choice of mode of entry using OLI framework. (One country)
(with chart)
The OLI framework, also known as the Eclectic Paradigm, considers three factors when
determining the mode of entry into a foreign market: Ownership-specific advantages (O),
Location-specific advantages (L), and Internalization advantages (I). Here's how FreshBlend
Beverages Ltd. can apply the OLI framework to determine the suitable mode of entry into
Australia:
1. Ownership-specific advantages (O):
FreshBlend Beverages Ltd. possesses unique advantages that it can leverage
for international expansion. These may include proprietary recipes for its
smoothie mixes, brand reputation, expertise in product development and
marketing, and a well-established distribution network in the UK.
Given its ownership-specific advantages, FreshBlend Beverages Ltd. may
have the capability to maintain control over its operations in Australia and
capture a greater share of the value chain.
2. Location-specific advantages (L):
Australia offers several location-specific advantages, such as a health-
conscious consumer base, a supportive regulatory environment for food and
beverage products, and a strong infrastructure for distribution and logistics.
These location-specific advantages make Australia an attractive market for
FreshBlend Beverages Ltd. to expand its operations and capitalize on the
growing demand for healthy beverage options.
3. Internalization advantages (I):
Internalization advantages refer to the benefits of conducting business
activities internally (i.e., through direct investment) rather than relying on
external partners or intermediaries.
Given FreshBlend Beverages Ltd.'s ownership-specific advantages and the
favorable location-specific advantages offered by Australia, internalizing its
operations through direct investment would allow the company to retain
control over its brand, product quality, and distribution channels.
Based on the analysis of OLI factors, the most suitable mode of entry for FreshBlend
Beverages Ltd. into Australia would be Direct Investment. This could involve establishing a
wholly-owned subsidiary or investing in setting up production facilities, distribution
networks, and marketing channels in Australia. By internalizing its operations, FreshBlend
Beverages Ltd. can fully leverage its ownership-specific advantages, capitalize on the
location-specific advantages of the Australian market, and retain control over its business
activities to ensure long-term success and sustainability in the market.
The OLI (Ownership, Location, Internalization) framework, developed by John Dunning,
helps analyze the advantages and disadvantages of different modes of international entry. In
the case of FreshBlend Beverages Ltd. expanding into Australia, let's consider which entry
mode would be most suitable:
1. Ownership-specific Advantages (O):
FreshBlend Beverages Ltd. possesses ownership advantages such as
proprietary recipes, branding expertise, and R&D capabilities. These
advantages contribute to the company's competitiveness and differentiation in
the market.
2. Location-specific Advantages (L):
Australia offers location-specific advantages such as a health-conscious
consumer base, a thriving food and beverage sector, and a supportive
regulatory environment. These factors make Australia an attractive market for
FreshBlend Beverages Ltd.'s products.
3. Internalization Advantages (I):
Internalization advantages refer to the benefits of directly controlling
operations in a foreign market. Given FreshBlend Beverages Ltd.'s ownership
and location advantages, internalizing operations in Australia through a
wholly-owned subsidiary would allow the company to fully leverage its
capabilities and maintain control over its brand, product quality, and
distribution channels.
Based on the OLI framework, the most suitable mode of entry for FreshBlend Beverages Ltd.
in Australia would be direct investment through a wholly-owned subsidiary. This
approach would enable the company to capitalize on its ownership and location advantages,
mitigate risks associated with partnerships or licensing agreements, and maintain greater
control over its operations and brand in the Australian market.
7. Summary of chosen mode of entry for selected country.
FreshBlend Beverages Ltd. has opted to enter the Australian market through Direct
Investment by establishing a wholly-owned subsidiary. This strategic decision is based on
thorough analysis using the OLI (Ownership, Location, Internalization) framework.
Ownership-Specific Advantages:
FreshBlend Beverages Ltd. possesses unique advantages such as proprietary recipes,
brand reputation, R&D capabilities, and marketing expertise. These ownership
advantages can contribute to competitive advantage and differentiation in the
Australian market.
Location-Specific Advantages:
Australia offers a favorable business environment with stable political and regulatory
conditions, a health-conscious consumer base, and cultural similarities with the UK.
The location-specific advantages in Australia include access to natural resources, a
skilled workforce, and a supportive industry ecosystem.
Internalization Advantages:
Internalizing operations in Australia through direct investment allows FreshBlend
Beverages Ltd. to fully leverage its ownership and location advantages. Establishing a
wholly-owned subsidiary provides greater control over operations, brand
management, and market penetration strategies.
Conclusion: By choosing direct investment and establishing a wholly-owned subsidiary in
Australia, FreshBlend Beverages Ltd. aims to capitalize on its competitive advantages while
maintaining control and strategic flexibility in the Australian market. This approach aligns
with the company's objective of achieving sustainable growth and success in the global
beverage industry, leveraging its strengths to meet the needs of health-conscious consumers
in Australia and drive long-term profitability and market share.
8. Conclusion - How will your decision about the chosen country
and mode of entry will benefit your country.
1. Economic Growth: Expanding into international markets like Australia
contributes to the economic growth of India by generating revenue, creating
job opportunities, and fostering innovation within the company.
2. Enhanced Global Reputation: Successfully entering and operating in a
developed market like Australia elevates the reputation of Indian companies
on the global stage. It demonstrates India's capabilities in producing high-
quality products and competing effectively in international markets.
3. Market Diversification: Diversifying into international markets reduces the
company's reliance on the domestic market, thereby mitigating risks
associated with economic fluctuations or regulatory changes in India.
4. Strengthening Bilateral Relations: Business expansion into Australia fosters
stronger economic ties and trade relations between India and Australia. It
promotes bilateral cooperation and collaboration, benefiting both countries'
economies.
5. Brand Recognition: A successful entry into the Australian market can
enhance the reputation and brand recognition of FreshBlend Beverages Ltd. as
an Indian company with global reach. This can positively impact perceptions
of Indian brands internationally, promoting India as a hub for innovative and
high-quality products.
6. Foreign Direct Investment (FDI) Outflow: The investment made by
FreshBlend Beverages Ltd. in establishing a subsidiary in Australia represents
an outflow of FDI from India. This demonstrates the confidence of Indian
companies in exploring and investing in international markets, contributing to
India's outward FDI flow and global economic integration.
9. Porters table - score sheet (main table in report and write
summary in appendix)
10. CAA Calculations also in appendix Submission in pdf
format
Business Report: Market Entry Assessment for FreshBlend Beverages Ltd. in Australia
Prepared for FreshBlend Beverages Ltd. Top Management
Executive Summary:
FreshBlend Beverages Ltd., a UK-based company, is considering expanding its operations into the
developed market of Australia. This report outlines the process of assessing opportunities in both the
UK and Australia and proposes the use of John Dunning's Eclectic Paradigm to determine an
appropriate entry mode into Australia.
Assessment of Opportunities:
1. Market Analysis:
- Conduct thorough market research in both the UK and Australia, analyzing factors such as market
size, growth trends, consumer preferences, competitive landscape, and regulatory environment.
- Utilize industry reports, market studies, government publications, and demographic data to gain
insights into market dynamics in both countries.
2. Consumer Behavior and Preferences:
- Understand the differences in consumer behavior and preferences between the UK and Australia,
including dietary habits, taste preferences, health consciousness, and willingness to pay for premium
products.
- Consider conducting surveys, focus groups, or interviews to gather qualitative data on consumer
preferences and attitudes towards beverages in both markets.
3. Competitive Analysis:
- Evaluate the competitive landscape in both countries, identifying key competitors, their market
share, product offerings, pricing strategies, distribution channels, and marketing tactics.
- Assess strengths, weaknesses, opportunities, and threats (SWOT analysis) for FreshBlend
Beverages Ltd. in each market to identify potential areas of competitive advantage.
4. Regulatory Environment:
- Investigate regulatory requirements, including food safety standards, labeling regulations,
import/export restrictions, and taxation policies, in both the UK and Australia.
- Ensure compliance with relevant regulations and obtain necessary licenses or certifications for
product distribution and marketing in each market.
5. Economic Factors:
- Consider economic indicators such as GDP growth, inflation rates, unemployment rates, and
consumer spending patterns to assess the overall economic climate and purchasing power in both
countries.
- Evaluate currency exchange rates and potential currency risks that may impact financial
performance and pricing strategies.
Choosing an Entry Mode using John Dunning's Eclectic Paradigm:
John Dunning's Eclectic Paradigm, also known as the OLI framework, suggests that firms must
possess Ownership-specific advantages (O), Location-specific advantages (L), and Internalization
advantages (I) to succeed in foreign markets.
1. Ownership-specific Advantages (O):
- Assess FreshBlend Beverages Ltd.'s unique strengths and capabilities that can be leveraged in the
Australian market. This may include proprietary recipes, brand reputation, R&D capabilities, and
marketing expertise.
- Determine how these ownership advantages can contribute to competitive advantage and
differentiation in Australia compared to local and international competitors.
2. Location-specific Advantages (L):
- Evaluate the attractiveness of Australia as a market for FreshBlend Beverages Ltd. Consider
factors such as market size, growth potential, consumer demographics, and regulatory environment.
- Identify specific market segments or regions within Australia that offer the greatest growth
opportunities for the company's products.
3. Internalization Advantages (I):
- Consider the benefits and costs associated with different entry modes, such as exporting, licensing,
joint ventures, or wholly-owned subsidiaries.
- Given FreshBlend Beverages Ltd.'s ownership and location advantages, evaluate the feasibility
and risks of internalizing operations in Australia, such as establishing a subsidiary or joint venture
with a local partner.
Recommendation:
Based on the assessment of opportunities in both the UK and Australia, and considering FreshBlend
Beverages Ltd.'s ownership, location, and internalization advantages, it is recommended that the
company pursue a direct investment strategy in Australia. This could involve establishing a wholly-
owned subsidiary to oversee production, distribution, and marketing activities in the Australian
market. By internalizing operations, FreshBlend Beverages Ltd. can fully leverage its competitive
advantages and maintain greater control over its brand, product quality, and distribution channels in
Australia.
Certainly! Let’s delve into Porter’s Diamond Model and its implications for the healthy
smoothie drink mix industry in Australia.
The Four Components of Porter’s Diamond Model:
o Factor Conditions: These refer to the availability and quality of production
factors such as labor, capital, natural resources, infrastructure, and technological
capabilities. In the context of healthy smoothie drink mix production in Australia:
Labor: Availability of skilled workers for production and distribution.
Natural Resources: Access to fresh fruits, vegetables, and other
ingredients.
Technological Capabilities: Research and development in food
processing and packaging.
o Demand Conditions: The nature and size of domestic demand play a crucial role.
In Australia:
Health-Conscious Consumers: A growing demand for health-focused
products like smoothie mixes.
Urbanization: Concentration of population in cities with access to
convenience foods.
o Related and Supporting Industries: The presence of complementary industries
and suppliers that support the smoothie mix sector:
Agriculture: Suppliers of fresh produce.
Packaging Industry: Suppliers of eco-friendly packaging materials.
o Firm Strategy, Structure, and Rivalry: The competitive landscape and
management practices within the industry:
Innovation: Companies investing in product development and marketing.
Competition: Intense rivalry among smoothie mix producers in Australia.
2. Application to Healthy Smoothie Drink Mix in Australia:
o Factor Conditions:
Australia has abundant natural resources (fruits, vegetables) and a skilled
workforce.
Technological advancements in food processing contribute to product
quality.
o Demand Conditions:
Growing health awareness drives demand for nutritious products like
smoothie mixes.
Urban lifestyle and busy schedules create a market for convenient, ready-
to-blend options.
o Related and Supporting Industries:
Strong agricultural sector supplies fresh ingredients.
Packaging industry provides sustainable packaging solutions.
o Firm Strategy, Structure, and Rivalry:
Companies focus on innovation (new flavors, functional ingredients).
Intense competition encourages efficiency and differentiation.
(Anon., 2020)