Company – Australian Dairy Nutritionals

Text Book – International Business: the new realities by S. Tamer Cavusgil, Gary knight, John John Riesenberger, S. Tamer Cavusgil, , S. Cavusgil, , Gary Knight, , John Riesenberger, , and S. Cavusgil

Published 2019

Assessment Brief:

Assessment 2 follows on from Assessment 1, which had a focus on researching the external business environment of an emerging market for a chosen ASX listed Australian company with the potential to internationalise. In Assessment 2, you should use your understanding and knowledge obtained from Assessment 1 to develop an entry strategy for your chosen organisation to enter into the emerging market that you selected while working on your assessment 1.

Based on the information (i.e., the findings from your own research) presented in your first assignment you will need to discuss and analyse the chosen emerging market environment. You need to develop an entry strategy for the emerging market that you have chosen in the first assignment. Please remember, that you must draw on an overarching international business theory (e.g., institutional theory, resource-based view theory etc.) and justify the choice of all elements of the strategy (place of entry, timing of entry, scale of entry, and mode of entry). The congruence between your chosen entry strategy and the IB theory is critical. You also need to briefly discuss resources required to undertake the suggested entry strategy. The key question that you should address is “Why” – so, when you describe the selected elements of entry strategy, you need to justify the selection based on the theory that guides your research, other firms’ experience you may have found in the literature, and your logical thoughts. The use of the graphical illustrations including figure(s), table, maps, and any supporting visual materials that are relevant to the context of your research should add value to the discussion. You must closely relate your entry strategy to the information provided in the first assignment (host country industry, operating environment, resource conditions as well as home country environment, resources and capabilities of the organisation etc.). Given the differences between advanced economies and emerging economies with regards to the quality of the institutions (e.g., regulatory framework, capital market structure), physical and technological infrastructure, capital market, talent/labour market, overall economic condition, political instability, you should extensively discuss the strategies that the senior management of your chosen organisation should take to navigate the challenges to tap market opportunities and minimise challenges. Here you are expected to be critical rather than taking a simple descriptive view to present your arguments or compile information from other research.

Suggested format:

Whilst the format may vary for your report, below is suggested format for you to follow:

Executive summary: Succinctly discuss the main purpose of the report, theoretical and analytical tools used, key finding and the strategic implications of those findings for the senior management team of your chosen organisation. Suggested 150 and 200 words (excluded from the total word count).

Table of Contents (list all main and sub-section headers and page number).

Introduction:

Articulate the key concepts of the topic briefly, provide a good background of the organisation including its business, competitiveness, market position in the local market, competitors, market share annual turnover, products etc. as well as the background of the selected emerging market. Provide a brief structure describing various sections of the report in the last paragraph of the introduction. Suggested up to 400 words.

 Main body

• Country and Product Market Attractiveness Assessment: Briefly describe the striking features of your chosen emerging country market including economic, political and legal cultural dimensions, and specific product (s) that are suitable for the selected emerging country market. Justify why the particular country has been chosen and the reasons for the product choice. Suggested up to 500 words.
• Relevant theory (s) of foreign market entry strategy: Discuss potential entry strategy (s) and their underpinning theoretical perspective to demonstrate how they fit with the organisation’s business model as well as the operating environment of the particular emerging country. Suggested up to 800 words.
• Strategic Implications of the Choice: Discuss the resources required to implement the international business strategy, and possible risks. Specifically discuss organizational, financial, marketing, leadership and human resources, as well as environmental considerations. Suggested up to 600 words.

Conclusion (detail and reflect on the information that was available and utilised in assembling this assignment, considering whether there was enough, its validity and reliability). Suggested up to 200 words.

• Reference list (provide a complete reference list for the resources that are cited in the report using the APA citation style).
• Appendix (not mandatory, any material that supports points made in the main body).

Introduction – 400 words

ADN (Australian Dairy Nutritionals) is a vertically integrated dairy food product manufacturer. It is a publicly traded company on the Australian Stock Exchange located near The Great Ocean Road in Victoria. Apart from being in an excellent farming area AND also have modern technologies through which they determine finest grazing medium for the livestock.

Country and Product Market Attractiveness Assessment:

Dairy holds a very crucial role in Indian society including food, economy, religion, and tradition. India produces and consumes highest level of milk in the world (1). Most of the milk produced is consumed domestically, however a little amount is exported.

Dairy Products in India

India produces a wide range of dairy products using techniques that have evolved over time. (11)

Cultural

From ancient times to the present, dairy has been an essential part of Indian food. Dairy products like milk, butter, cream, yogurt, paneer (type of cheese) and ghee (clarified butter) are very significant to Indian Cuisine. Milk is also very commonly used in India for preparation of Tea call Chai (sugared milk tea). Majority of the population consumes Chai on daily basis rather than coffee. 

In Hinduism, which is India’s majority religion, the cow is considered sacred. However, buffaloes provide approximately half of the milk produced in India, which is also consumed as meat (carabeef) 2. Also, in Hindu religious practise and legend, milk and dairy products have a role. Many Indian states prohibit the slaughtering of dairy cattle, particularly cows, and the Union Government introduced the Prevention of Cruelty to Animals (Regulation of Livestock Market) in 2017, forbidding the sale of lactating cattle for slaughter. (4)

In Ayurveda, an Indian style of holistic medicine, milk has a significance role. It is recommended for daily intake by Ayurveda due to its digestive and sedative qualities. (10)

Economic

The Department of Animal Husbandry and Dairying (DAH&D), which is part of the Ministry of Animal Husbandry, Dairying, and Fisheries, is the primary regulating organisation for dairy production in India (3). DAH&D oversees livestock management and the development of the dairy industry.

Political

Trade

India applies duties on imported dairy products, including processed milk powder and dairy derivatives such as cheese, butter, yoghurt. In the context of the Regional Comprehensive Economic Partnership, the issue of lowering import tariffs on dairy goods has been a subject of negotiation for India. (5) Indian dairy producers, including Amul, protested and opposed an industry plan in 2020 to allow the importation of skimmed milk powder into India without any import charges, claiming that it would damage national milk supply. (6)

Most dairy products imported into India demand evidence that the animals involved were not fed feed containing ruminant extracts for religious reasons. As a result, most dairy products from the United States are banned from being imported. In addition, both governments have initiated trade talks about the United States’ entrance to the Indian dairy market. (7) The Indian government has prohibited the import of milk and milk-related commodities from China since 2008. These restrictions were imposed in consequence to the finding of melamine, a hazardous chemical, in milk (8).

India’s dairy exports are limited due to high domestic consumption and uncompetitive worldwide prices. (9)

Relevant theory (s) of foreign market entry strategy: 800 words

Strategy for International business:

Building Global Firm:

The Integration-Responsiveness Framework:

Organisational structure in international business: Centralized structure

Organisational structure in international operations:

Foreign Market Entry Strategy

• Strategic Implications of the Choice: Discuss the resources required to implement the international business strategy, and possible risks. Specifically discuss organizational, financial, marketing, leadership and human resources, as well as environmental considerations. Suggested up to 600 words.

• Conclusion (detail and reflect on the information that was available and utilised in assembling this assignment, considering whether there was enough, its validity and reliability). Suggested up to 200 words.

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