A2 Milk Exported into Japan- Sajin Singh Hoondle 16394637 PDF

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Main assignment for the class, got A-...

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16394637

Sajin Singh Hoondle

A2 Milk Exported into Japan

Image retrieved from (Food Navigator USA. 2015)

International Business Plan 152.261

Sajin Singh Hoondle 16394637 Massey University 2018 1

16394637

Sajin Singh Hoondle

Table of Contents 1

Product.......................................................................................................................6 1.1

Product Information........................................................................................................6

Illustration 1........................................................................................................................................ 6

1.2

Business Opportunity Analysis.........................................................................................6

1.3

Action Plan......................................................................................................................7

Table 1 : Export Analysis....................................................................................................................... 7

1.4

2.0

Continuous Improvement................................................................................................8

Competitor Analysis................................................................................................8

2.1

Potential Competitors......................................................................................................8

Table 2: Competitor analysis table........................................................................................................ 9

2.2

Competitive Advantage..................................................................................................10

2.3

International strategies..................................................................................................10

2.4

Absolute and/or comparative advantage.......................................................................10

2.5

The Action Plan..............................................................................................................11

2.6

Continuous Improvement..............................................................................................11

2.7

Supplement Activity.......................................................................................................11

3.0

Trade and Investment Policy.................................................................................11

3.1

Instruments of Policy.....................................................................................................11

3.2

Tariffs.............................................................................................................................12

3.3

Subsidies........................................................................................................................12

3.4

Quotas & Restrictions....................................................................................................12

3.5

Local Content Requirement............................................................................................12

3.6

Administration Requirements........................................................................................12

3.7

Anti-Dumping................................................................................................................13

3.8

Political Arguments for Policies......................................................................................13

3.9

Economic Arguments for Policies...................................................................................13

3.10 Foreign Direct Investment...................................................................................................13 3.11

The Action Plan..............................................................................................................13

3.12

Continuous Improvement..............................................................................................13

4.0

2

Culture & Business................................................................................................14

4.1

Business Culture............................................................................................................14

4.2

Cultural Analysis............................................................................................................14

4.3

Social Institutions...........................................................................................................15

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Sajin Singh Hoondle

4.4

Business Ethics...............................................................................................................15

4.5

Informal Trade Barriers..................................................................................................15

4.6

The Action Plan..............................................................................................................15

4.7

Continuous Improvement..............................................................................................16

4.8

Supplement Activity.......................................................................................................16

5

Country Analysis.......................................................................................................16 5.1

Country Information......................................................................................................16

5.2

Geographical Influences.................................................................................................16

5.3

Major Products and Industries.......................................................................................17

5.4

Government and Politics................................................................................................18

5.5

Current economic conditions.........................................................................................18

Table 3: Japanese Economic conditions.............................................................................................. 18

5.6

Social facts and Conditions.............................................................................................19

Illustration 2: Japan’s ranking in world for education.......................................................................... 19

5.7

Technology and Infrastructure.......................................................................................20

5.8

Legal..............................................................................................................................20

5.9

Environmental...............................................................................................................21

5.10

Formal Trade Barriers.....................................................................................................21

5.11

The Action Plan..............................................................................................................21

5.12

Continuous Improvement..............................................................................................22

6

Market Entry Strategy...............................................................................................22 6.1

Strategic Planning..........................................................................................................22

6.2

Entry Modes..................................................................................................................23

6.3

Strategic Alliances..........................................................................................................24

6.4

The Action Plan..............................................................................................................25

6.5

Continuous Improvement..............................................................................................25

7.0

Organisational Structure.......................................................................................26

7.1

Strategic Planning..........................................................................................................26

7.2

Strategic Objectives.......................................................................................................26

7.3

Centralisation.................................................................................................................26

7.4

Organisational Structure................................................................................................27

Figure 1 : A2 milk company org. structure........................................................................................... 27

7.5

Integrating and Control Systems....................................................................................27

7.6

Location of the Value Chain............................................................................................28

Figure 2 : Japanese Value chain.......................................................................................................... 28

7.7

The action plan..............................................................................................................28

Table 5 : Summary of organisational structure.................................................................................... 28

3

16394637 7.8

8

Sajin Singh Hoondle

Continuous improvement..............................................................................................28

Finance.....................................................................................................................29 8.1

Start-up costs.................................................................................................................29

8.2

Economic environment..................................................................................................30

Table 6 : Economic environment table indicator.................................................................................. 30

8.3

Financing Sources..........................................................................................................30

8.4

Economic and Financial Risks.........................................................................................31

8.5

Social, Cultural and Ethical risks.....................................................................................31

8.6

Political and Legal Risks..................................................................................................31

8.7

Risk Management Techniques........................................................................................32

8.8

The Action Plan..............................................................................................................32

8.9

Continuous Improvement..............................................................................................32

9

Measuring success....................................................................................................33 9.1

Revenue Sources............................................................................................................33

9.2

Operating Costs..............................................................................................................33

9.3

Start-up Costs.................................................................................................................33

9.4

Profitability....................................................................................................................34

9.5

Economic Benefits..........................................................................................................34

9.6

Social Benefits................................................................................................................34

9.7

Social Costs....................................................................................................................34

9.8

Future Direction.............................................................................................................35

9.9

Action Plan.....................................................................................................................35

9.10

Continuous Improvement..............................................................................................35

10

Product Development and Production..................................................................35

10.1

Product Concept............................................................................................................35

10.2

Product Life Cycle...........................................................................................................36

Illustration 3 : Product adoption stages.............................................................................................. 36

10.3

Branding and Packaging.................................................................................................37

10.4

Target Market................................................................................................................37

Table 7 : Target market....................................................................................................................... 37

10.5

Production Location.......................................................................................................37

10.6

The Action Plan..............................................................................................................38

Table 8 : Development plan................................................................................................................ 38

10.7

Continuous Improvement..............................................................................................38

10.8

Supplement Activity.......................................................................................................39

Illustration 4 : Concept board............................................................................................................. 39

11 4

Human Resource Management.............................................................................39

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Sajin Singh Hoondle

11.1

Staffing...........................................................................................................................39

11.2

Training and Development.............................................................................................40

Table 9 : Training and Development.................................................................................................... 40

11.3

Performance Appraisal...................................................................................................40

Table 10 : Performance Appraisal....................................................................................................... 40

11.4

Compensation................................................................................................................41

Table 11 : Salary................................................................................................................................. 41

11.5

Staff Turnover................................................................................................................41

11.6

The Action Plan..............................................................................................................42

11.7

Continuous Improvement..............................................................................................42

Bibliography.....................................................................................................................43

5

16394637

Sajin Singh Hoondle

1

Product

1.1

Product Information

A2 was once a struggling unknown dairy company and where consumers didn’t know that milk contained an obscure milk protein. The A2 milk company was founded back in 2000 by Dr. Corran Mclachlan [ CITATION The18 \l 1033 ] due to a scientific discovery founded while studying at Cambridge University whereby the proteins in the milk can affect people differently.

As A2 is relatively an up and coming company there is opportunity to expand its trading areas such as Japan etc., to date there is trading activities situated in Australia, the UK, USA, China and New Zealand. [ CITATION The18 \l 1033 ]

As in the name ‘A2 Milk’, the milk produced comes from cows that only naturally produce the A2 protein and not the A1 protein as shown in illustration 1. As the body breaks down the A1 into a fragment protein called ‘Beta-casomorphin-7’ which can lead onto inflammation thus making it more difficult for those who are lactose intolerant to digest the milk sugar. [ CITATION The18 \l 1033 ]

Source : [ CITATION The18 \l 1033 ]

and A2 producing A2 protein

1.2

Illustration 1: How one cow produces a mix of A1 proteins compared to a cow naturally

Business Opportunity Analysis

There is opportunity to expand the A2 milk brand globally especially trying to export into the Japanese market. This is an opportunity where the A2 Milk company can showcase how and why A2 Milk is beneficial compared to consuming a mix of A1/A2 milk goods. Most Japanese people (approximately 70%) are lactose intolerant [ CITATION Gut13 \l 1033 ], thus with the 6

16394637

Sajin Singh Hoondle

introduction of A2 m...