The document is a global business plan for exporting fruits and vegetables from Pakistan to Australia. It provides details on the company, products, target markets, competitors, and environmental analyses. The business will be financed with $10,00,000 from the owner and a $5,00,000 bank loan. The goals are to gain 50% market share, export 175,000 tons worth $60 million annually, and increase sales and jobs over time.
Dairy Farming to Produce Milk and Cattle Breeding Detailed Project Report, Pr...
Faiqa Asif's Global Business Plan for Exporting Fruits and Vegetables from Pakistan to Australia
1. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Fruits and Vegetable Export
Prepared by: Faiqa Asif
Date: June 25, 2015
2. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Contents
Executive summary.............................................................................................................................4
Phase 1 – Planning the Global Business Enterprise................................................................................5
Module: 01.........................................................................................................................................5
Identifying Global Business Opportunities:...........................................................................................5
Module: 02.........................................................................................................................................5
Analyzing International Competitors:...................................................................................................5
GBP Module 03: .................................................................................................................................7
Accessing the Economic-Geographic Environment:...............................................................................7
Module: 04.........................................................................................................................................8
Accessing the Social-Cultural Environment:..........................................................................................8
Module: 05.........................................................................................................................................8
Accessing the Political-Legal Environment............................................................................................8
Module: 06.........................................................................................................................................9
1. Strategic Planning........................................................................................................................9
I. Product and services:...............................................................................................................9
II. Target Market and Customer Benefits:......................................................................................9
III. Company Benefits:.............................................................................................................10
IV. Employee Satisfaction:.......................................................................................................10
2. Entry mode...............................................................................................................................10
3. Organizational structure............................................................................................................11
Module: 07.......................................................................................................................................11
Financing Source for Global business Plan..........................................................................................11
Module: 08.......................................................................................................................................12
Creating a Global Management Information System...........................................................................12
1. Training........................................................................................................................................12
Module: 09.......................................................................................................................................12
Identifying Human Resource for Global Business Activities..................................................................12
1. Staffing.....................................................................................................................................12
2. Training and Development.........................................................................................................12
3. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Module: 10.......................................................................................................................................13
Managing International Financial and Business Risks ..........................................................................13
1. Economical and Financial Risk....................................................................................................13
2. Social and Cultural Risk..............................................................................................................13
3. Political and Legal Risk...............................................................................................................13
4. Risk Management Techniques....................................................................................................14
Module: 11 Product and target Market Planning................................................................................14
1. Product Life Cycle .........................................................................................................................14
2. Branding and Packaging................................................................................................................14
3. Target Market...............................................................................................................................14
Module: 12.......................................................................................................................................15
Designing a Global Distribution Strategy ............................................................................................15
1. Distribution Barriers..................................................................................................................15
2. Distribution Channel..................................................................................................................15
Module: 13.......................................................................................................................................16
Planning a Global Promotion Strategy................................................................................................16
1. Promotional Goals.....................................................................................................................16
2. Media Plan................................................................................................................................16
Module: 14.......................................................................................................................................16
Selecting an International Pricing Strategy .........................................................................................16
1. Cost Analysis.............................................................................................................................16
2. Competitor Analysis ..................................................................................................................17
Module: 15.......................................................................................................................................17
Determine Organizational Financial Results........................................................................................17
1. Revenue Sources.......................................................................................................................17
2. Profitability...............................................................................................................................17
Module: 16.......................................................................................................................................17
Measuring International Business Success..........................................................................................17
References:......................................................................................................................................18
4. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Executive summary
There is no doubt that import and export is increasing day by day world widely. The export
business will be run by Faiqa Asif as a limited liability company. I will export Fruits and
vegetables from Pakistan to Australia. Fruits and vegetable export company will export high
quality fresh Fruits and Vegetables from Pakistan to Australia. Fruit and Vegetables Export
Company will offer these products, exported directly from Pakistan, to the Australia. The
business main office will be located at Lahore, Pakistan and the Head office will be located in
Sydney, Australia. Our intent is to provide the community and state with High quality and fresh
Fruits and Vegetables that are not available in Australia.
There are huge numbers of opportunities that are available in the Fruit and vegetable export
business world widely. Fruit and Vegetable export business is one of the best businesses all
around the world. It helps both countries to grow economically. The Government of other
country will support this business as these Fruits and Vegetables are the basic requirement of
survival for the people live other there in Australia. It will help local retailers, and shopkeepers
to grow their business as well which will be beneficial for our business. The Fruit and Vegetable
Export business is basically food oriented business. It may not required high investment but
profile margins are high in this business.
Our main product is exporting Fruits and Vegetables from Pakistan to Australia. As consumers
are interested in high quality, clean and value for their money so, we export best quality and
clean material so that customer will be satisfied. Target market for Fruits and Vegetable will be
domestic households in Australia. Company will need following employee to start export
business: Export Manager, Project Manager, International Marketing Manager, Market
researcher, Trade Financer.
The main focus of my company is to gain at -least 50% market share in Australia. The long term
aim of the company is to make a good grip to agriculture sector. The company’s sale target is
175,000 tons worth $60 million export. Employment opportunities to rise with increase in sales
every year. As sale increases it will beneficial for company’s profile.
The main objectives of company are to achieve a profit in the first year, establish an export
business in the city of Australia, Sydney, create jobs, provide quality products and customer
service at a reasonable price, achieve the largest market share in the city for imported
products, and to increase average length of customer relationships and decrease customer
turnover.
The business will be financed with $10, 00,000 of the owner's money and $5, 00,000 from a
bank loan. Starting costs are $50,000. Sales are estimated at $80,000 per year by the first year.
A positive cash flow will be produced at the end of the first year.
5. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Phase 1 – Planning the Global Business Enterprise
Module: 01
Identifying Global Business Opportunities:
There are huge numbers of opportunities that are available in the Fruit and vegetable export
business world widely. Fruit and Vegetable export business is one of the best businesses all
around the world. It helps both countries to grow economically.
The Government of other country will support this business as these Fruits and Vegetables are
the basic requirement of survival for the people live other there in Australia. It will help local
retailers, and shopkeepers to grow their business as well which will be beneficial for our
business.
The Fruit and Vegetable Export business is basically food oriented business. It may not required
high investment but profile margins are high in this business. There is many risk involve in this
business, but business grow world widely successfully.
Module: 02
Analyzing International Competitors:
The world is became global village with many benefits and ease in life. There is high level of
competition take place in all over the world. People are now more innovate and creative with
brilliant minds. In the modern era, every company who are manufacturing products or
providing services is facing many challenges and competition in local market as well as
international market. Every company needs to be unique and innovative to maintain its position
in the market.
Australia has a wide range of fresh fruit, vegetable and nut products it can offer for
international buyers. Following are the national and international competitors who trade in
same field.
2PH Farms
A.S. BARR Group
6. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
A B Gartrell INTERNATION PVT LTD
AFPC Exports
ALC trading Co PTY LTD
Almondco Australia Limited
ANTICO International
Australia Fruits PTY LTD
AVACADO Export Company
BELL VISTA Fruit & Vegetable Co PTY LTD
Benny’s Fresh Fruits Exporters
BGP International
Bungle Trading PTY LTD
CENTERWEST PTY LTD
Cherry ISLE TASMANIA
Cherry Hill Orchards PTY LTD
Condor Fresh PTY LTD
Export Plus
Finest Fruit Export
CO-Farms PTY LTD
Fresh Fruit Co
Fruit Master Australia
GFA Exports
Global Produce Solution
Grape Marketing PTY LTD (CORDOMA INTERNATIONAL)
HarrowSmiths INTRNATIONAL P/L
7. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Holman Fresh PTY LTD
JAYFRESH Australia
Seven Fields
SS Citrus Supply
SUPAFRESH
VALLEYFRESH Exports
WATT Export PTY LTD
WANDIN Valley Farms
WEBSTER Fresh
GBP Module 03:
Accessing the Economic-Geographic Environment:
The geographical factors like location, weather have a great influence and impact on any
business. There is a high influence of weather on the Fruits and Vegetables export business as
we have to take care of fruits and vegetables according to weather. These geographical factors
play important roles in the success and failure of any business. We need to keep in mind the
weather of other country as well where we are expanding our business.
The geography of Australia encompasses a wide variety of bio geographic regions being the
world's smallest continent but the sixth-largest country in the world. The population of
Australia is concentrated along the eastern and southeastern coasts. The geography of the
country is extremely diverse, ranging from the snow-capped mountains of the Australian
Alps and Tasmania to large deserts, tropical and temperate forests.
Australia is a country, and a continent. It is located in Oceania between the Indian Ocean and
the South Pacific Ocean. It is the sixth largest country in the world with a total area of 7,686,850
square kilometers (2,967,909 sq. mi) (including Lord Howe Island and Macquarie Island),
making it slightly smaller than the 48 states of the contiguous United States and 31.5 times
larger than the United Kingdom.
By far the largest part of Australia is arid or semi-arid. A total of 18% of Australia's mainland
consists of named deserts, while additional areas are considered to have a desert climate based
on low rainfall and high temperature. Only the south-east and south-west corners have a
8. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
temperate climate and moderately fertile soil. The northern part of the country has a tropical
climate: part is tropical rainforests, part grasslands, and part desert.
Rainfall is highly variable, with frequent droughts lasting several seasons thought to be caused
in part by the El Niño-Southern Oscillation. Occasionally a dust storm will blanket a region or
even several states and there are reports of the occasional large tornado. Rising levels
of salinity and desertification in some areas is ravaging the landscape.
Module: 04
Accessing the Social-Cultural Environment:
Although Australia is considered a Christian country, there are a variety of religions that can be
found here. The question about a person's religious affiliation has been asked on every census
taken in Australia. Since 1933 the answer has been specifically stated as voluntary. As there is
many religions in Australia there in high number of Buddhism, Islam in Australia but there is
Judaism and Hinduism as well in Australia.
The culture of Australia is essentially a Western culture influenced by the unique geography of
the Australian continent, the diverse input of Aboriginal and Torres Strait Islander peoples,
the British colonization of Australia that began in 1788, and the various waves of multi-ethnic
migration that followed. The predominance of the English language, the existence of
a democratic system of government drawing upon the British traditions
of Westminster Government, Parliamentarianism and constitutional monarchy,
American constitutionalist and federalist traditions, Christianity as the dominant religion, and
the popularity of sports originating in (or influenced by) the British Isles, are all evidence of a
significant Anglo-Celtic heritage.
Module: 05
Accessing the Political-Legal Environment
Australian contract law is based on the English common law, rather than on any codified or
statute law. The basic principle of Australian contract law is freedom of contract, under which
parties are at liberty to strike whatever bargain they choose.
It is good practice to record the terms of a contract in writing – no special forms or procedures
are required – and Australian courts will give considerable weight to the expression of the
parties’ intentions evidenced in documentary form.
9. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
The top individual income tax rate is 45 percent, and the top corporate tax rate is 30 percent.
Other taxes include a value-added tax and a capital gains tax. Total tax revenues equal about 27
percent of the domestic economy. A controversial carbon tax has been repealed. Government
expenditures equal 35.7 percent of the economy, and public debt is equivalent to less than 30
percent of GDP.
The parties to a contract for the international sale of goods may agree that the Convention is
Not to apply, and may select the laws of one of the parties’ home jurisdictions as the governing
law of their contract. If they do not do so, however, then the Convention will apply, and
incorporate into the contract the rules set out in the Convention.
Module: 06
1. Strategic Planning
Seasonal Fruits and Vegetables Export Company will work as a Sole Proprietorship. The
company will be operated from main office in Lahore, Pakistan to head office in Sydney,
Australia.
I. Product and services:
Our main product is exporting Fruits and Vegetables from Pakistan to Australia. As consumers
are interested in high quality, clean and value for their money so, we export best quality and
clean material so that customer will be satisfied.
We will export Fruits and Vegetables according to season
Dry fruits will be export as well
Company will introduce more product as business start growing like: canned or frozen
Fruits and Vegetables as well.
II. Target Market and Customer Benefits:
Target market for Fruits and Vegetable will be domestic households in Australia. Basically the
target market costumer will be Quality focused consumers that value a premium product.It will
be beneficial for customer much.
Customer can have delivery of their required fruits and vegetables at their door step.
Customer can enjoy every seasonal Fruit and Vegetable that is not currently available in
Australia.
Every individual will enjoy high quality, clear, fresh and hygienic Fruits and vegetable at
reasonable price.
Customer will enjoy the quality Dry Fruit in season at reasonable prices.
10. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
III. Company Benefits:
The main focus of my company is to gain at -least 50% market share in Australia. The long term
aim of the company is to make a good grip to agriculture sector.
The company’s sale target is 175,000 tons worth $60 million export.
Employment opportunities to rise with increase in sales every year.
As sale increases it will beneficial for company’s profile.
IV. Employee Satisfaction:
For employees Satisfaction Company will follow following step:
Employees ideas and discussion will be highly encourages.
Free allowances and medical will be providing to employees.
For employees growth their working will be highly appreciated and awarded.
Employee’s motivation workshop will be conducted to increase their performance level.
2. Entry mode
The company will operate from Pakistan to Australia directly. Fruits and vegetables will be
export through sea ports. Company will enter in the market by the name of “Seasonal Fruits
and Vegetable Export Company”.
1. Pricing
Competitors’ prices.
High quality product relation with customer.
No. of competitors in the market.
Value –addition and customer satisfaction at each level.
2. Licensing
1. If you are a sole trader, apply for an individual TFN External link (opens in same window)if
you don't already have one. Apply for a business TFN External link (opens in same window)if
you are a partnership, trust or company.
2. Apply for an ABN, GST, PAYG withholding, FBT, business name and AUSkey External link
(opens in same window)in one application with the Australian Business Register (ABR).
11. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
3. If you are unclear what business structure is right for you, use our Step-By-Step: Choose
the right business structure External link (opens in same window)to help
3. Organizational structure
Module: 07
Financing Source for Global business Plan
The business will be financed with $10, 00,000 of the owner's money that will be start up cost
and $5, 00,000 from a bank loan. Starting costs are $50,000. Sales are estimated at $80,000 per
year by the first year. A positive cash flow will be produced at the end of the first year. The
main focus of my company is to gain at -least 50% market share in Australia. The long term aim
of the company is to make a good grip to agriculture sector. The company’s sale target is
175,000 tons worth $60 million export.
Ceo
•FaiqaAsif
Top
Managment
• International MarketingExectives
•ExportManager
•ProjectManager
•International MarketingManager
•Trade Financer
Middle
Managment
• Salesman
• Retailors,Wholesalers
12. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Module: 08
Creating a Global Management Information System
In order to compete in international export markets, businesses must have access to resources
that can help them improve their knowledge and their export management readiness. Export
Management Development team offer training and advisory services to businesses with the
ambition to export. Trainings are available to support exporters, as well as export advisors.
1. Training
The Fruit and Vegetables Export Company will provide Management and Development team
offers professional training programs to strengthen the strategic, managerial and technical skills
of export professionals. Trainings are designed for business professionals – entrepreneurs,
managers, consultants, institutional staff – involved in providing export support services to
small businesses in developing countries.Training programmes for exporters are offered via
local institutional partners who work with export professionals locally.
Module: 09
Identifying Human Resource for Global Business Activities
1. Staffing
Company will need following employee to start export business:
Export Manager
Project Manager
International Marketing Manager
Market researcher
Trade Financer
2. Training and Development
Company will conduct several workshops and seminars for the Training and Development of
employees. In these seminars and workshop employees are guide to understand following
things:
Understand their export control responsibilities.
Follow established procedures for exports to safeguard against illegal transactions.
13. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Consistently and accurately perform order processing/screening elements.
Work within the rules established for the protection of national security.
Module: 10
Managing International Financial and Business Risks
In this module, I will tell you about some risks that can emerge will start a business
internationally.
1. Economical and Financial Risk
For operating a business internationally so many risk can emerge some of them are following:
Foreign currency and exchange rate ris k
Buyers Risk
Country Risk
Foreign Bank Risk
Loss or damage of goods in transit.
No-Payment
2. Social and Cultural Risk
Company can face Social and Culture risk because of operating in total different country that
have huge difference in cultural with our country. Working in a foreign market also means
understanding the particularities of the local marketplace. In different contexts, the same
action can indeed have very different consequences. It is also essential to enquire in advance
about the country’s rules of communication and trading, about its cultural values and
variations, and to rely on a network of reliable partners, who are perfectly integrated in the
local environment. Weather can also be a risk as my business is of food item that are
perishable.
3. Political and Legal Risk
Political instability that business can face is a war or conflict could result in defaults on
payments, delays or even loss of product. Civil disorder may affect the personal security of you
and your staff.
14. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
4. Risk Management Techniques
We can minimize risk by following techniques:
Cross check the accuracy of information received from offshore. Conduct regular audits
of financial information.
Invest in up-to-date and comprehensive antivirus and security software protection.
Where possible, get insurance to protect your business against loss caused by crime and
fraud.
Use well-known shipping or courier companies that allow you to track your products'
journey from origin to final destination. If you are ever in doubt about the authenticity
of any communication, contact the sender for verification.
Where credit cards are used for payment, always ask for the expiration date and
validation code as well as the card number. An invalid or missing detail could indicate
your customer is using the card number of a stolen credit card. Be wary of multiple
orders using different credit cards issued from the same IP address and orders charged
to different cards but delivered to the same address.
Module: 11 Product and target Market Planning
1. Product Life Cycle
In Product life cycle first of all research for fruits and vegetables producing will be tae place.
After producing fruits and vegetables I will check the quality level. Then quality fruits and
vegetables will be stored, packed and deliver towards Australia for sale.
2. Branding and Packaging
The Fruits and Vegetables will be sale under the name of company as “Fruits and Vegetables
Export”. Fruits and Vegetables will be pack into high quality transparent plastic bags so that
customer can see the fresh and quality fruits and vegetables inside.
3. Target Market
Target Market for Fruits and Vegetables Export will be domestic house-holds situated in
Sydney, Australia and nearby places.
15. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Module: 12
Designing a Global Distribution Strategy
1. Distribution Barriers
i. Foreign environment as a barrier to trade
To begin with, there are social, cultural, economic, legal, political, technical and
physical differences between Australia and the rest of the world. After all, other
countries speak different languages (e.g. German, French or Chinese), they use
different currencies (such as the dollar or the yen), and they follow different laws
(such as Islamic law). These factors all contribute to making exporting more difficult -
that is, they are barriers to exporting.
ii. Tariff barriers
Then we have tariff that are tax that is placed on imported goods by
governments. Governments do this for several reasons:
They may wish to restrict the amount of imported goods coming into the country in
order to protect or encourage a positive trade balance.
They may wish to protect a local industry from foreign competition. This is often done
where the industry in question is still very young for foreign competition.
The government will then place a tax on imported goods that compete with goods being
produced by that industry, thus making these imported goods more expensive
compared with locally produced goods.
Some countries introduce tariffs in order to generate additional revenues for the
country. This is often done in the case of luxury goods.
By exporting fruits and vegetables from Pakistan to Australia my business can face
following barriers:
Economic dependency
Quality of products in the domestic market
2. Distribution Channel
My company will use following channels to market its product on international level:
Foreign Retailer
16. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
Sales Representatives or agents
Foreign Distributors
Direct sale to end user
Module: 13
Planning a Global Promotion Strategy
1. Promotional Goals
As everybody now that fruits and vegetables are the basic necessities of life. Promotional goals
of my company for selling the product will be by spreading the pamphlets door to door in the
domestic houses of Sydney, Australia. More, I will promote my business through banners, social
media, print media, and Television and bill boards on roads.
2. Media Plan
Media plan for my company will be promotion through social media that helps us to
promote the name of your brand and business find out what customers think of your
business, attract new customer and build stronger relationships with existing customers.
More print media, television, radio and online plans will be creating to promote the business.
Module: 14
Selecting an International Pricing Strategy
1. Cost Analysis
Costs that will be occur in the start of business are following:
Registration of your company cost
Initial raw material or stock material cost
Telephone and internet installation cost
Equipments, fixtures and fittings cost
Staff salaries and wages
Marketing cost
17. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
License cost
Packing cost
Agent’s commission
Export duties
Insurance agreement cost
Delivery/ Shipment cost
2. Competitor Analysis
Australia faces strong competition from other southern hemisphere countries such as Peru,
Chile, South Africa and New Zealand. It is important to provide support to retailers for
promotional activities, to generate awareness of Australian fresh produce and establish it as
top of mind amongst consumers versus these competitors. For my company I will keep the
prices low or equal to competitors but the quality level and freshness level will never be
compromise on any cost and this will be my competitive advantage on competitors.
Module: 15
Determine Organizational Financial Results
1. Revenue Sources
The revenue source of the company will be good prices, huge booming middle class, and
reduced tariffs. In order to reach this market, my company can select from a number of quality
international trade fairs and trade missions, in addition to a number of far reaching print, radio
and television media.
2. Profitability
Module: 16
Measuring International Business Success
The following facts will ensure the business success:
18. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
1. Understand the difference of Culture.
2. Unique services.
3. Unmatched in both freshness and High quality.
4. Product range.
5. Attractive product presentation.
6. Low operating overhead.
7. Well experience management.
8. Competitive price.
References:
http://en.wikipedia.org/wiki/Geography_of_Australia
http://www.australiafresh.com.au/exporters.html#.VUDyAtIiq1k
http://alldownunder.com/australian-facts/religions-of-australia.htm
https://www.claytonutz.com/international/DBIA_brochure.page
http://www.heritage.org/index/country/australia
http://en.wikipedia.org/wiki/Geography_of_Australia
http://en.wikipedia.org/wiki/Culture_of_Australia
19. Name: Faiqa Asif
ID: 114405055 Final Project: Global business Plan
Course: International Business Submitted to: Sir Ali Chauhan
http://www.business.vic.gov.au/setting-up-a-business/how-to-start-a-business/licences-and-
registrations
http://toolkit.smallbiz.nsw.gov.au/part/2/23/107
http://manzellareport.com/index.php/trade-finance/405-risk-assessment
https://www.nzte.govt.nz/en/export/thinking-about-exporting/thinking-about-your-
strategy/types-of-risk-for-exporters/
http://www.exporthelp.co.za/modules/1_considering_exporting/barriers_to_exporting.html