Cost structure is the aggregate of the various types of costs, fixed and variable, that make up a business' overall expenses. Companies use cost structure to set pricing and identify areas where expenses can be reduced.

1. 4.1 Cost Structure
The main cost structure for our brand would be the cost of procuring items at both local and
international level. At the local level the costs would be at the higher side as the cost for producing
the items is high locally and considering the industry analysis, the imports become cheaper in
comparison to the local produce. This is one of the factors of the cost structure of Lord of Oceans.
As defined by Dai & Lee (2012), there are some of the costs included in the cost structure which
are fixed in nature. These include salaries of the management and the business development team
is also one of the main components of the cost structure of our brand. Other than that, as required
by the customers, relevant licenses and payments in lieu of packaging would have to made in terms
of license and packaging including renewal cost.
4.2 Revenue Structure
The revenue structure would be based on bulk orders from wholesalers and supermarkets and other
order wise sales from restaurants and hotels. These would be an ongoing basis and hence would
be on a recurring basis. The pricing of the product would be based on a cost-plus basis and hence
profitability would also be maintained. For bulk orders, there will be a policy of offering certain
level of discounts to the customers (Hong, Ching, & Fauvel, 2013).
1. Ethical Consideration
The only ethical issue which would be faced by our business would be the labelling of the product.
It is a requirement of the market that the products offered in the market are appropriately labelled
and though this won’t be an issue in the local market produce, the items imported may follow these
standards and this can pose a threat to our business. According to Palepu (2015), The mitigation
of this specific issue would be to perform necessary due diligence and ensure that the products
imported have clear labelling.
2. Conclusion
To conclude, the Lord of Oceans seems to have potential to generate great value to the customers
as it is catering to the local needs of the market. Other than that, the brand may also prove to
generate profit for the owners of the business. The market is highly sophisticated in terms of
knowledge and informed decisions and the only issue the business may face would be the labelling
requirements from international players which may be mitigated by appropriate due diligence.