Khmer JasminePresenters: Norveakmullika Lim

Souyada LakSovanna Suos

Export Rice to Singapore

CONTENT

Introduction

PESTEL Analysis

SWOT Analysis

Business Strategy

Risks management

Performance Evolution

Backup Plan

What is our product?

Jasmine Rice

Cambodian Jasmine rice is known as the “ World’s Best Rice ” for 3 years in a row

Singapore

Rice is still the primary food which Singaporeans consume

In the last 5 years, the sales of rice had increased by 80%

“Dietician Gladis Lin said either white bread nor white rice are particularly healthy ”

Singapore’s PESTEL Analysis

Political Factors: Political risk is quite low Democratic country Political stability translated to a peace and better standard of living Taxation : MFN duty rate 0%, Sales tax 7% Exchange rate: USD1 = SGD1.44 Economic Factors: Country’s per capita is the highest in ASEAN Corruption-free environment that supports business sector Legal and Financial business frameworks help as well

Sociocultural factors:

Face and Respect: Having face indicates personal dignity

Business protocol and meeting: shaking hands is not the case with older

Strict rules of protocol that must be observed Personal relationships are the cornerstone of all

business relationships

Technological Factors:

IT infrastructure in Singapore is praise-worthy Multinational companies to set up regional operations

in Singapore

Environmental Factors:

Tropical climate with a lot of rainfall throughout the year

Shortage of water Singapore rank number 4 in term of Environmental

Performance Index (EPI)

Legal Factors:

Anti-corruption law are strong and well-enforced Singapore’s judicial system has been recognized as

one of the fairest and most efficient in Asia

SWOT ANALYSISSTRENGTHS

• Connection with English, Chinese and Malay speaking world

• Open economy, strong governance for businesses

• Reasonable bandwidth and payment of infrastructure

WEAKNESSES

• Limited size of domestic market

• Highly fragmented market due to language segmentations

• Small size of production company

OPPORTUNITIES

• High level of GDP per capita• Potential in establishing

partnerships

THREATS

• Keen competition for consumer attention from foreign content

• Small talent base• Ageing population

Business Strategy

Business Strategy

Vision Mission Entry Mode Supply Chain and

Distribution Types of Licenses Location

Target Customer Competitor Product

Differentiation Financing Advertising Promotion

Business Strategy

Vision: “ To be the best quality Cambodia rice importer and distributor in Singapore.”

Mission: To assure the best quality rice to our customers by meeting the standard, provide all accessible information regarding buying decision, and be the quick service provider.

Entry Mode

Partnership: partner with local business

Late mover

Supply Chain & Distribution

Based manufacture in Cambodia

Ship through Sihanouk Ville port

Arrive at Singapore port

Store at warehouse

Distribute to wholesalers and retailers

Types of Licenses

Stockpile (RSS)

To import and carry on

wholesale dealing in stockpile

grade rice

White rice, basmati rice,

parboiled rice, and ponni rice

Non-stockpile

To import and carry on

wholesale dealings in

non-stockpile grade rice

Brown rice, red rice,

cargo rice, and wild rice

Wholesaler

To carry on wholesale dealing in

rice

For merchants to

carry wholesale

dealing within Singapore,

import is not permitted

Manufacturer

Import for Manufacturin

g

Only 100% broken rice

for manufacturin

g purpose

Re-Exporter

Import to re-export

For re-export only and shall kept in Free Trade Zone

Stockpile Grade Rice Non Stockpile Grade Rice

We choose RSS (Stockpile Grade Rice) license since our product is premium Jasmine rice.

Minimum import amount required is 50 tonnes per month.

The government offer the warehouse (SSW= Singapore Storage and Warehouse Pte Ltd) for 1 year.

Location

We choose the location:• Has easy access to the transportation• Near the warehouse

Target Customer

Target customer: Chinese people (74.3%) Other people (3.3%)

We do not enter into Halal market.

Competitors

There are 81 companies that license in RSS. Main competitors:

Rice import by Thai companies Rice import by India companies

Product Differentiation

Import premium long grain rice, Jasmine The best quality with the high standard Quick service Free consulting regarding rice information to

anyone Provide competitive price

Cost & Financing

License fee: $50 Office: around $60,000 per

year Warehouse: around $24,000

per year Staff (6 people): around

$211,000 per year Advertising: around $7,000

per year Cost Estimate for

the first year: $ 518,050

The expenses will be shared with the local partners.

Plan for getting loan for the business in case of emergency.

Advertising & Promotion

Advertising budget will be spent in order to raise brand awareness.

Promotion: we will give the big deal of discount for the wholesalers and some discount for retailers.

Risk Management Plan

Identify risks Exchange rate

Transportation and logistics

Risk Management Up to date with exchange rate

Must understand international logistics & our legal rights.

Risks Legal & policy

Unforeseen

International laws and regulations change frequently.

contract with a legal firm

Natural disaster. News. Singapore government

protection program.

Cultural and language

visit to Singapore: better understanding of market place and the culture differences

Business performance evaluation

Comparing the results of initiatives to objectives and evaluating to what extent we met our targets Operation( sale & profitability) Market ( market share & market ranking by sales volume) Customers ( rate of customer acquisition, customer

satisfaction) Products ( quality) Internal ( employee job satisfaction & training levels) Financial ( profit margin)

Backup Plan

When performance evaluation shows that our performances does not reach the set objectives.

Increase brand awareness Check current quality control Improve staff trainings

Khmer Jasmine“ To be the best quality Cambodia rice importer and distributor in Singapore.”

“Ensure quality and satisfaction”