Custom «Business Problem» Essay Paper Sample

Business Problem

The Australian company called ‘ABC’ breeding is one of the highest quality producer and exporter of bio-dynamic Wagyu beef. The company is strategizing on the best export strategy to export its beef to the United States of America. The company will have to come up with the best export strategy that will market its product to the new business environment in the United States. There exist several way in which an international market can be gauged for its market potential for the beef product. The best way to access the beef product export strategy is to start with the local markets and analyze the success of the ABC in Australia. This will help in projecting the success of the company in United states taking in mid the differences in climate, environmental factors cultural and social factors. Other major factors that may differ from those in Australia may include; foreign exchange, lower or higher wage cost, lower purchasing power, government import controls among other factors (Trout and Ries 1981).

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These factors should be taken into consideration before coming up with the export strategy for ABC Company. If the bio-dynamic Wagyu beef has been successful in the domestic market one main strategy would be an analysis of the strategies that are used locally in Australia followed by a selection of similar markets abroad. In this case, little or no product modification will be required.

Before deciding on the export strategy there will be a number of this to be considered. There will be need to analyze the uniqueness of the beef product in United States. If the product is unique then the low cost research will be available to assist in accessing the oversee market potential of US. The already available international trade statistics can be used to give the preliminary indication of the US market for bio-dynamic Wagyu beef or indication related / substitute products that are being sold.

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Before making the export decision the company must first consider a number of factors that include:

  • What the ABC Company want to gain from the export
  • What kind demand will the export place on the company resources especially on its financial status?
  • Is the export strategy consistent with all the legal requirement of the US and Australian?
  • Are the Benefits of export worth the cost incurred?

There will be need to screen the market or market entry options in the process of planning for a an export strategy Formulating an export strategy based on good information and proper assessment increases the chances that the best options will be chosen, that resources will be used effectively, and that efforts will consequently be carried through to completion (Trout, 1969).

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The main reason for making an export plan before embarking on the real export is that one is able to assemble all the necessary facts, goals, constraints to come up with a an action statement that will come up with an export plan that includes specific objectives; it sets forth time schedules for implementation; and it marks milestones so that the degree of success can be measured and help motivate personnel (Trout, 1969).

Analysis of basic customer profile, import statistics for lat five years, marketing and distribution channel to reach customers (entry mode and finding a partner) and Custom regulations - SWOT analysis - PESTEL Framework, political, economical, social, technological. Environmental and legal. In particular, you should explore the trade agreement between Australia in this section. Pages7 Added2010-05-06 16:15 Delivery2010-05-07 13:51 Salary63 Bonus / penalty0

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 The USA economy is one of the largest developed economy with a nominal GGDP estimated at around $14.5 trillion in year 2009  which is almost three times that of the second world largest economy which is Japan.

 Thu USA GDP in parts per million is two times that of china. The USA economy has a high output per person level that is steadily maintained therefore having a $ 46,443 GDP per capita in the same year. The USA has been ranked as the best and it has maintained a stable overall GDP growth rate, high levels of research, capital investment and low unemployment rate. The capital investment has been funded by both national and also with the decreasing saving rates that is increased by foreign investor. This economy will be appropriate for ABC Company to invest the bio-dynamic Wagyu beef.

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Business in the USA

There are a lot of opportunities in the US and importing or exporting goods is a great way to expand a business in the US. In US those companies that do Business globally expand faster that those who restrict their operation locally. There are a number of Programs from the government that can assist a foreign company such as ABC on how to go about it. There are however strict regulation that apply in import and export business that have to be followed in order to acquire all legal licenses.

There are Details plans for developing, marketing, and exporting products and services that are published by the Department of Commerce and Unz & Co. there are guide for businesses interested in expanding their business in international markets that give all the procedure and requirements that have to be full filled. In addition to this the USA government  offer basic guide to exporting, exporters guide to trade agreements, and also international trade online courses al  of which are provided by the federal government and are meant to assist international Companies to understand the process of doing business that involve imports and exports.

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US Trade policy

The US trade policy have place a lot of emphasis on commercial interests and overwhelmingly favor incorporating other priorities-protecting the workers ,preserving the international labor standards in furthering trade and protecting  the environment . The trade policy makers are in fact willing to reduce trade if that is what it takes to meet the above. In  January 2001 a poll conducted for the Congressional Institute found that a 53% majority favored "eliminating some of the barriers that exist to international trade, for example by reducing tariffs, in order to promote increased international trade;" (Steven, and Glen 1991)

Swot analysis

A  Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis will permit ABC business management to come up with appropriate strategies to maximize profits of a in the new environment . The SWOT analysis will also enables ABC companies and their employees to adapt to changing factors in the beef industry. It can be categorized either into internal or external factors interfering with ABC company. The Opportunities and Threats are the external factors that will affect the company's performances as far as export strategy is concerned

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Swot analysis for an internet marketing plan

The beginning point is categorizing the analysis into four that is, strengths, weaknesses, opportunities and threats. Using a box divided into four as shown below





The one on the left hand side (strength and opportunities), refers to the company’s internal nature while the second pair on the right hand side represent the external factors

Examples of Internal Strengths of a Company

Strength of a company is essentially factors from within the company that have attributed to the success of the company. For example, the present of management team with strong caliber will move the company forward and will consider flexibility to change. This will enable the company to persevere amongst competitors giving the company a competitive advantage, particularly when external threats, such as deviation in regulation with respects to the industry.

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A second example of the strength is; heavy financial cash flow.  The fact that the Company is liquid in cash and has been successful in the Australian market will make the marketing plan and the export strategy to succeed in the long-run. This will provide working capital (cash) to maintain the company's ability to pay the marketing employee and even to hire extra one to implement the new export strategy, marketing plan, suppliers and fund marketing campaigns.

Other strength will include; unique idea either in marketing its bio-dynamic Wagyu beef that no one else has it, or its unique export strategy. The presence of experienced and motivated employees, source of inspiration and motivation for the employees, a very strong and experienced artistic team including are some of the company strength that can be best utilized to achieve its corporate goal.












A weakness of the company can be harmful to the survival of the company and should be minimized as much as possible. Some of the company weaknesses will include; poor retention rate of employees resulting to the increased employees’ turnover of dissatisfied employees. This mostly occurs as a result of poor compensation packages or presence of a weak organizational culture that hold back employees from expressing their views and concerns. This weakness should be taken positively and tries to work on them to push forward the export strategy plan and to realize its full potential. Other weaknesses in the company include; very few advertisers interested in our new marketing strategies, minimal opt- in customers use that prefer to remain anonymous, and lack of interest from venture capitalist.

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Opportunities in the external environment

 An opportunity allows the company to maximize profits by donating a gap in demand, increasing the consumer base, or it might bring in an opportunity to diminish costs. The company’s’ strategic goal will be to move forward to achieving opportunities that comes up in the market. For example, the absence of a real competitor in or space of internet marketing, several companies approaching us to seek our services, the increases awareness in internet marketing and the willingness of most companies to venture in this type product or substitutes of beef . Opportunities will vary depending on the shifts in customer preferences.

Company’s threats 

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Any threat will affect the company negatively way, especially if the company is not in a position to adapt to the threat and mitigate its harmful effects. These threats will include; the presence of other large Beef companies or substitute for beef companies that have been in existence and are well known. Factors affecting our potential customers’ will be ABC’s threats since this will affect its business. This threat will reduces revenue in companies, regardless of the beef sector.

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