The paper 'A& C Food Processing Company - International Business" is a great example of a business case study. A& C Food Processing Company is based in Australia and processes a variety of food products including vegetables, fruits, meat, poultry, eggs and marine products. The company aims to continuously increase its share holder’ s value by providing them with high returns in relation to their investments. To do this, the company has undertaken various investment and expansion programs in order to enhance its profits. The company aims to expand its operations by investing in foreign countries. Investment Opportunity in India India has experienced rapid urbanization, increased income levels and relaxation in import regulations.
Moreover, India is characterized by high population levels and new technologies. The country has also experienced growth in the services, manufacturing, agriculture and Software sectors of its economy (Economic Affairs 2012, p. 5). Most of the companies that have invested in the Indian economy originate from the U. S with companies from Malaysia also holding a considerable investment in the Indian economy. Furthermore, India has established a trade partnership with Australia and this lowers the trade barriers and creates more trading opportunities for the Country. According to IBEF (2011, p.
3), India has experienced considerable growth in the demand for processed food due to the increased income levels. Moreover, the Indian government has established policy support for companies willing to invest in the food processing industry. Furthermore, the growth in speciality restaurants and the increased exposure to the global culture has increased the demand for processed food in India. The fact that A& C deals with food processing mean that India presents it with a good opportunity to expand by investing in that country.
In addition, the Indian agriculture sector has achieved notable success and this means that A& C will have an ample supply of raw materials. The lack of better preservation, processing and storage technologies in India means that A& C can be able to offer quality services due to the technology that it posses. This business plan will analyze the Indian market, identify our company competencies and identify the entry strategies to utilize in order to enter the Indian market. The business plan will also identify operating and exit strategies. Analysis of the Indian Market McLoughlin and Aaker(2010, p.
61) state that a market can be analyzed using 7 dimensions. They include; market profitability, market growth rate, market trend, market size, the industry cost structure, distribution systems and the industry structure. These factors will be used to analyze the processed food market in India. Market Profitability According to Protor (2005, p. 94), the attractiveness of an industry or market can be measured by its long term return on investment of the average firm. This is in turn determined by the intensity of competition, the existence of potential competitors and the bargaining power of both the suppliers and the customers. Competitors refer to other businesses that a company competes with for customers (Harrison & John 2009, p.
160). According to the India Law Office (2012, p. 15), there are currently 15 major companies in the Indian food processing industry. Most of these companies are from foreign countries and they process-specific food products, unlike A& C which processes a range of food products.
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