Executive Summary
In recent years people are growing more aware of the need to maintain a healthy lifestyle
and hence they are preferring to engage in less destructive feeding patterns that will ultimately
uphold their well-being. Subsequently, it is evident that the business of exporting and importing
fruits is rising on a daily basis around the world. The export business in this case will be focused
on fruits under the title Fruity limited liability company. In essence, fruits will be exported from
Kenya to the Australia, the latter of which lack the necessary resources as well as climatic
conditions to support the growth of these essential commodities. In essence, there are
considerable opportunities in this market as there are numerous clients who desire to purchase
healthy fruits at affordable prices and which are of high quality. The business’ main office
(receiving office) will be positioned in Sydney, Australia while as the exporting office will be
located in Nairobi, Kenya. The main intention or goal of this business will be offering the state
and the community with High quality fruits that are not presently grown or available in Australia
and at affordable prices.
There are multiple opportunities that are available in the fruits export business on a global
scale which offers a suitable prospect for enterprises to venture and exploit. Statistics indicate
that the fruits export business embodies one of the most ideal business on a global scale as it
assists the relevant countries to expand on various fronts specifically from an economic
perspective. In addition to this, the government of the other nation will also extensively support
the business of fruits due to the fact that the products are a basic requirement for survival for
human beings and it is also linked to an enhanced well-being of the community, replacing
chemically manufactured drinks. As indicated, the primary product will be fruits from Australia
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and since consumers have an interest in high quality and affordable fruits, the company will aim
at exporting the best of the products in order to augment customer satisfaction. The key target in
this case will be households in Australia although there will be a need to incorporate third parties
such as retailers and shopkeepers who will function as the conduit for the delivery process. In
line with this, the business aims at securing an estimated 50 market share in the country with a
sales target of 180,000 tons which are estimated to be worth $60 million in exports. Financing
will be catered for by the owner at an estimated $100,000 and a bank loan of $50,000 to kick-
start the business.
Phase 1 – Planning the Global Business Enterprise.
Module: 01
Identifying Global Business Opportunities
The Fruit export business is essentially a food oriented undertaking and it may not
demand a high investment amount but is linked to considerably high profit margins in case an
adequate marker base is established. Despite there are risks associated with this business
including the possibility of expiration or some of the stock being rejected by the licensing bodies
due to failure to meet health and safety standards (Doh, Luthans & Slocum, 2016). In addition to
this, the marker in Australia is ripe for exploitation evidenced by the fact that the country is
characterized by a high demand for healthy products that are affordable. The country also has
numerous channels of distribution as well as favorable opportunities for marketing.
Module: 02
Analyzing International Competitors
Over the past few years, the world has become highly interconnected with numerous
channels of interconnection which function to simplify life. Subsequently, the high level of
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connection has made it possible for business to venture on a global scale hence leading to
extensive competition for local enterprises as well as the multi-nationals already operating within
a given country. Australia has an extensive scope of fresh fruit entities operating within its
borders, both local entities as well as multinationals and that have already established a solid
client base. Some of the leading entities in the country include:
Anchor Trading Company
Allianz Trading
Indus Valley Trading
Imtiaz Enterprises
In combination, these four corporations control an estimated 50% of the country’s total
market and hence, it will be a challenge to win over a market share. However, with effective
marketing and promotion, substantial progress can be made in securing a clientele base.
Module 3
Assessing the Economic-Geographic Environment
The geographical factors including location, weather have a considerable influence as
well as implication on business irrespective of size. In this case, there is a specific considerable
impact on the Fruits business as the relevant stakeholders have to take considerable care of fruits
and adjust setting and handling mechanisms based on weather patterns. These geographical
dynamics perform critical role in the success or failure of an enterprise (Beilin, Santhanam-
Martin & Sysak, 2019). It is therefore, critical to factor in the weather of a country coupled with
where the business is being expanded to. Australia’s geographical schematic comprises and
extensive variety of bio geographic locales being the sixth-largest nation globally. In addition to
this, the population of the country is specifically concentrate along the southeaster and eastern
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coasts and hence there is a need to assess this population as well as their individual dynamics to
determine the most suitable approach of venturing into this market (Beilin, Santhanam-Martin &
Sysak, 2019). The landscape of the region is also not conducive for the growing of fruits of
fruits. Specifically, the largest proportion of the country is arid or semi-arid evidenced by the fact
that a total of 18% of the nation’s mainland is comprised of known deserts while as the
additional regions are regarded to be characterized of desert climate as a result of high
temperature and a decreased amount of rainfall (Beilin, Santhanam-Martin & Sysak, 2019).
However, only the south-west and south-east are characterized by a temperate climate and a
temperately fertile soil which is mainly covered by forest cover and food for sustenance purposes
including wheat.
Module 4: Assessing the socio-cultural environment
Despite the fact that Australia is largely a Christian nation there is a variety of religious
affiliations in the region. In specific, there is a high number of Judaism, Buddhism, Hinduism,
and Islam in the country hence adding onto the diversity of the region. Such a high degree of
diversity offers for a high level of acceptance of the various individuals in the country and hence
there is a higher probability of acceptance of any product affiliations. Nevertheless, the culture of
Australia is evidently a Western culture which has been considerably influenced by the
expansive globalization as well as the high interconnectedness of the region from a global
perspective. Also considered to be the most welcoming nations in the world, Australia prides
itself in being a multicultural nation as nearly 50% of the population is comprised of foreigners
or Australians who have parent born in another nation, leading to an excess of 260 distinct
language within its boundaries. The political stability as well as the economic expansion during
the 50s were critical to the advancement of a prosperous society as well at the arrival of the
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initial expansive wave of immigrants. This has function to boost the diversity of the country as
the different individuals accept each other.
Module 5: Assessing the political legal environment
The basic principle underlying the Australian contract law is considered to be the
freedom of contract, on the basis of which parties are at freedom to ratite whatever agreement
they opt for. When undertaking to the enter agreement with the various parties, it is good practice
to undertake recording the terms of the contract in written form – no unique procedures or forms
are necessary – and Australian courts are more likely to give substantial significance to the
expressed intentions of the parties in case they are presented in documentary form. In order to
engage in this business with minimal confrontations with the government, it is essential for the
relevant stakeholders to observe the necessary legal constrains including the National
Measurement Act 1960 as well as the National Trade Measurement Regulations 2009 which seek
to regulate the manner in which fruit and vegetable can be sold based on measurement as well as
the relevant health and safety guidelines.
Based on the Food Act of 2008, any corporation engaging in the sale of food is mandated
to undergo registration as a food business with the pertinent local government authorities within
which the business intends to be focused. In line with this, there is also the need to seek
authorization from the various importing parties to ensure that the business is suitably aligned.
Taxation is also an important factor to consider as the government imposes capital gains tax and
value-added tax to which the various entities or enterprises must adhere to. The parties to a given
contract for the international dealing with goods may approve to the notion that the Convention
is Not to apply, and may opt for a selection of laws of one of the faction’s home jurisdiction as
the governing law of the relevant contract. However, in case they fail to agree on the laws to sign
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to, then the Convention is applicable, and integrate into the contract as per the guidelines
enshrined in the Convention.
Module 6
a) Strategic Planning: Fruity Limited Company will function as a Sole Proprietorship and
will be operated from the head office or exporting office in Nairobi, Kenya. This
approach is important as it will aid in controlling the distinct aspects of the enterprise.
a. Product and Services: The main export product in this case are fruits from Kenya
to Australia. As clients have a considerable interest in high quality and affordable
products, the company will undertake to export the best quality and value for
money commodities to uphold customer satisfaction. Specifically, the enterprise
will focus on:
i. Export fruits based in seasonality
ii. Dry fruits which can last for longer
iii. The business will also incorporate additional products as the
business expands including: frozen or canned fruits
b. Target Market and Client Benefits: The target market for the fruits will be local
Australian households. Principally the target market customers will be Quality
focused clientele that seek for premium products. There will also be numerous
benefits for the customers including:
i. Customers can be offered their desired fruits at their door step using their
preferred channels.
ii. Clients can enjoy the seasonal fruits that are not available in the
country.
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iii. All customers will enjoy high quality products which are hygienic
and which are reasonably priced.
iv. The clients will enjoy all types of fruits irrespective of season
hence keeping them constantly satisfied.
c. Company benefits: The primary concentration of the company will be to acquire
an estimated 50% of the Australian market share. From a long-term perspective,
the primary purpose of the corporation will be to gain a firm grip on the
agriculture sector. Some of the targets include:
i. Sales target amounting to 175,000 tons equivalent to $60 million in
exports
ii. A rise in employment opportunities to support the increase in
annual sales.
d. Employee Satisfaction: Employee satisfaction is critical as it ensures that the
relevant goals are achieved as envisioned. Approaches of achieving this include:
i. Considering employee input and engaging in critical discussions.
ii. Equitable allowances and medical cover to be provided to
employees
iii. Ensuring continuous employee growth through education and
exposure to opportunities for acquiring skills.
iv. Continuous employee workshops to brainstorm ideas and
subsequently boost their performance levels.
b) Entry mode: The Company will primarily run its operation from Kenya and send directly
to Australia directly with the means of transportation being air due to the perishability of
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the products. Essentially, the company will venture into the market by the title “Fruity
Limited Company” a unique name which will make the entity prominent in the country.
a. Pricing: The pricing will be contingent on various factors including, competitor
prices, the type and quality of products delivered to customers, the number and
strength of competition in the market, and the value-addition in relation to
customer satisfaction at the various levels.
b. Licensing: The licensure of the entity will be undertaken through the Australian
Business Register (ABR) the organization tasked with the responsibility of
licensing various types of entities that seek to operate within the country.
c. Organization structure: The company will be headed by the CEO, followed by the
Top Management (International Marketing Manager, Export Manager, Trade
Financer, Project Manager, and International Marketing Executives), and Middle
Management (retailers, wholesalers, and salesmen).
References
Beilin, R., Santhanam-Martin, M., & Sysak, T. (2019). Security and Climate Change in
Australia. Sustainable Solutions for Food Security: Combating Climate Change by
Adaptation, 437.
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Beilin, R., Santhanam-Martin, M., & Sysak, T. (2019). Vulnerability Amidst Plenty? Food
Security and Climate Change in Australia. In Sustainable Solutions for Food
Security (pp. 437-457). Springer, Cham.
Doh, J. P., Luthans, F., & Slocum, J. (2016). The world of global business 1965–2015:
Perspectives on the 50th anniversary issue of the Journal of World Business: Introduction
to the special issue.
Priyadarshini, A., & Priyadarshini, A. (2018). Market dimensions of the fruit juice industry.
In Fruit Juices (pp. 15-32). Academic Press.
Sun, X. (2016). Opportunities and challenges relating to the export of fruit and vegetable products from Queensland to Asian Countries.