RICE PRODUCTION/MILLING INDUSTRY (Final Project)

1. BUS6100 Global Business
RICE PRODUCTION/MILLING INDUSTRY
(Final Project)
YAKUBU ALHAMDU JATAU
Nexford University
BUS 6100, Global Business,
Dr. Bill Reed,
20TH NOV, 2023

2. ◦ The rice milling company (YAJAT foods limited)will
produce high quality rice to meet the need of its target
population which includes establishing branches to other
nation more especially emerging markets with central
leadership from the based country.
◦ The operation of this company will start in Nigeria with
branch offices in Niger republic, Ghana, and Benin republic
strategically at Cotonou as it is the economic route for many
African countries as this will enhance supply chain.
Business Overview

3.  According to ((FAO, 2023) we can ascertain that When an
organization has made a decision to enter an overseas market, there
are a variety of options open to it. These options vary with cost, risk
and the degree of control which can be exercised over them.
 The simplest form of entry strategy is exporting using either a direct
or indirect method such as an agent, in the case of the former, or
countertrade, in the case of the latter
Strategies for global, local, and
emerging markets

4. Export marketing mix
This takes its form from normal market mix where 4ps
plays a vital role and in this regards, we have the following
gate pass as a strategies for penetrating both local and
global as well as emerging market in the respective focal
points;
Strategies for global, local, and
emerging markets contd..

5.  Product support Price support Promotion/selling support
Inventory support Distribution support Service support
Financial support
Strategies for global, local, and
emerging markets cont.…

6.  Technical innovation strategy - perceived and demonstrable
superior products
 Product adaptation strategy - modifications to existing products
 Availability and security strategy - overcome transport risks by
countering perceived risks.
 Low price strategy - penetration price and,
 Total adaptation and conformity strategy - foreign producer
gives a straight copy.
 Using these elements can give edge for market entry in Nigeria
and other targeted country like Niger, Chad, and Libya.
(FAO, 2023)
Innovation Strategies

7.  The sustainability strategy for this industry
cannot exempt the important factors like
 environmental, social, technological, and
political factors respectively.
 climate-friendly cultivation techniques,
advent of technological input for higher
yields, and
 political influence cannot be over
emphasized when it comes to sustainable
rice production.
Sustainability Practices

8.  According to BHARDWAJ (2020) we deduced that for
suitability to be there is need to follow five basic components
of supply chain management system as follows: -
 plan; to manage inventory and manufacturing process.
 Source: identify vendor who will procure products
 Make; produce in accordance with the need of the consumers.
 Deliver; goods can be shipped to consumers using various
freight e.g. road, air and rail etc.
 Return; this is a post delivery customer support process of
returning expired or damage
commodities
Sustainability Practices cont..

9.  FDI is a typical way for sustainability to this emerging
company because having them in the strategy will particularly
add valued because of its potential contribution as a source of
funding; technology transfer; strategic business linkages;
access to large, more lucrative markets; and overall increase in
production capacities and this can be integrated into this
business by having a handy comprehensive financial report
that outlines all expenditures, capital and all revenue/ profits.
 FDI can also be integrated into this business by invitation of
other firms for joint ventures and which will actively involve
them in the management base on their area of specializations
(HAYES, 2023).
Considerations for Foreign Direct
Investments (FDI)

10. POTENTIAL CHALLENGES FOR THE RICE MILLING
COMPANY
 Lack of access to huge Capital; large amount of money
is necessary for rice milling firm because modern
methods of processing the raw product needs
automated in order to have high quality products.
 Appropriate location for Rice processing stand out to be
a challenge as this will come a lot by products that may
pollute the environment.
 Raw materials may sometimes be scarce as a result of
natural disaster.
 Power source as it is biggest challenge in Nigeria stands
out to be one of the biggest challenges.
Challenges and Risks

11.  As the company start up and continuous with available
capital, to mitigate lack of capital there is need for
involvement of financial institution in form of credit
from banks which will really help
 To mitigate the risk of polluting environment, the
company will be located in place where effect of its
activity will not affect people.
 Mitigation for the risk of raw materials stock out,
various source will be identified and be patronized
frequently
 Other means of power source will be utilized to curb the
risk of power outage from the national grid; this is
specific to Nigeria.
RISK MITIGATION FOR RICE MILLING COMPANY

12. The benefits are as follows:
 Job opportunity to the youth
 Empowerment to the farmers as they will
have open doors for more market link
 This is of benefit because it corresponds
with Goal 2 of SDG which is about creating a
world free of hunger as this company will
make rice available and affordable to the
targeted emerging market and possibly the
world over.
BENEFITS OF THE RICE MILLING COMPANY

13.  As the company start up and continuous with available
capital, to mitigate lack of capital there is need for
involvement of financial institution in form of credit
from banks which will really help
 To mitigate the risk of polluting environment, the
company will be located in place where effect of its
activity will not affect people.
 Mitigation for the risk of raw materials stock out,
various source will be identified and be patronized
frequently
 Other means of power source will be utilized to curb the
risk of power outage from the national grid; this is
specific to Nigeria.
Risk Mitigation Strategies

14.  Finally, YAJAT Foods Company is an
emerging company that will compete in the
industry with competitive advantage
because of its innovation strategies, supply
chain innovation and foreign direct
investments (FDI) opportunities, all this will
help the company stand out among its
competitors and sustain its standard for
future with a big brand name and big profi
Conclusions

15.  FAO. “Chapter 7: Market Entry Strategies.” Www.fao.org, 2023,
www.fao.org/3/w5973e/w5973e0b.htm.
 HAYES, ADAM. “Foreign Direct Investment (FDI).” Investopedia, 2023,
www.investopedia.com/terms/f/fdi.asp
 Solutions, A. nextech. (2018, August 20). Innovative Solutions For Rice Mill By Rice
Mill Consultants. Nextech Blog.
https://www.nextechagrisolutions.com/blog/innovative-
solutions-rice-mill-rice-mill-consultants/
 International Trade Administration. “Nigeria - Agriculture Sector.” Www.trade.gov, 13
Oct. 2021,
 www.trade.gov/country-commercial-guides/nigeria-agriculture-sector.
Khaliq, Zaka. “Investing in Rice Milling for Profit.” Https://Leadership.ng/, 2 Dec. 2022,
 leadership.ng/investing-in-rice-milling-for-profit/. Accessed 6 Nov. 2023.
 Garber, Rhiannon. “Elements of Supply Chain Management - NewStream.”
NewStream Enterprises,
7 Dec. 2021, www.newstreaming.com/4-elements-of-supply-chain-
management/#:~:text=Integration%2C%20operations%2C%20purchasing%20and
%20distrib
Reference