Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

Fruits and Vegetable Export

Prepared by: Faiqa Asif

Date: June 25, 2015

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

ContentsExecutive 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................................................................................................................................................12

Financing Source for Global business Plan................................................................................................12

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................................................................................................................13

Module: 10................................................................................................................................................13

Managing International Financial and Business Risks................................................................................13

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

1. Economical and Financial Risk...........................................................................................................13

2. Social and Cultural Risk......................................................................................................................13

3. Political and Legal Risk.......................................................................................................................14

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

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

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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.

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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

A B Gartrell INTERNATION PVT LTD

AFPC Exports

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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

Holman Fresh PTY LTD

JAYFRESH Australia

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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 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.

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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 EnvironmentAustralian 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.

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

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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 isNot 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.

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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).

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

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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.

Module: 08

Creating a Global Management Information SystemIn 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

Course: International Business Submitted to: Sir Ali Chauhan

CeoFaiqa Asif

Top Managment

International Marketing ExectivesExport ManagerProject ManagerInternational Marketing ManagerTrade Financer

Middle Managment

Sales man Retailors, Wholesalers

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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. TrainingThe 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. Consistently and accurately perform order processing/screening elements. Work within the rules established for the protection of national security.

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

Module: 10

Managing International Financial and Business RisksIn this module, I will tell you about some risks that can emerge will start a business internationally.

1. Economical and Financial RiskFor operating a business internationally so many risk can emerge some of them are following:

Foreign currency and exchange rate risk 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 RiskPolitical 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.

4. Risk Management TechniquesWe can minimize risk by following techniques:

Cross check the accuracy of information received from offshore. Conduct regular audits of financial information.

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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.

Module: 12

Designing a Global Distribution Strategy

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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 Sales Representatives or agents Foreign Distributors Direct sale to end user

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

Module: 13

Planning a Global Promotion Strategy

1. Promotional GoalsAs 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 AnalysisCosts 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 License cost Packing cost Agent’s commission Export duties Insurance agreement cost

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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 SourcesThe 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:

1. Understand the difference of Culture.

2. Unique services.

3. Unmatched in both freshness and High quality.

4. Product range.

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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

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

Course: International Business Submitted to: Sir Ali Chauhan

Name: Faiqa Asif ID: 114405055 Final Project: Global business Plan

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

Course: International Business Submitted to: Sir Ali Chauhan