TABLE OF CONTENTS

2

3

Introduction of HuReMil Company.....................................................................................................3
2.1

Company’s name.........................................................................................................................3

2.2

Country of Origin........................................................................................................................3

2.3

Product Line................................................................................................................................3

Where to be marketed?........................................................................................................................4
3.1
Identify and describe one product of your organization to be marketed for a relevant market
sector and justify the objective of the international expansion.................................................................4

4

3.1.1

Market Segmentation in Indonesia.......................................................................................4

3.1.2

The best way to distribute products meal-ready-to-eat.........................................................5

Factor of Considering in Indonesia......................................................................................................6
4.1
Discuss the country of your choice based distinctive features of doing business in a specific
country.....................................................................................................................................................6
4.2
4.2.1

Political stability:.................................................................................................................6

4.2.2

Business or individual tax system:.......................................................................................6

4.3

Economic Factors........................................................................................................................7

4.3.1

Exchange rates:....................................................................................................................7

4.3.2

Inflation rates:......................................................................................................................7

4.3.3

Import:.................................................................................................................................7

4.4

Social Factors:.............................................................................................................................8

4.4.1

Population............................................................................................................................8

4.4.2

Age factor:...........................................................................................................................8

4.4.3

Religion:..............................................................................................................................8

4.5

5

Political & Legal factors:.............................................................................................................6

Technological Factors:.................................................................................................................9

4.5.1

Transport system:.................................................................................................................9

4.5.2

Communication system:.......................................................................................................9

4.5.3

Geographical location:.......................................................................................................10

4.5.4

Natural or environmental disaster:.....................................................................................10

Strategy tripod for HuReMil...........................................................................................................11
5.1
Based on strategy tripod, project a business strategy and justify the specific rationale
that makes your idea a viable business opportunity.......................................................................11

6

VRIO Model for HuReMil................................................................................................................13

Page | 1

..1..............................................................................................2 Joint Venture...........1 Direct Exporting.........................................................................................................................15 7...4 Ownership.......................................................18 Page | 2 .............................................................3 Strategic Alliances..........................................................................13 6.....................................................................................15 7.................................................................................................................................13 Market Entry to be used for HuReMil..................................................16 7..............................................................17 9 References................................1 By using VRIO Framework discuss on how your organization’s plan for your product or service in order to sustained the competitive advantage in the global marketplace for a long run.........15 7.....2 7 Competitive advantages......16 8 Conclusion..............................................................................................6...........................................................................................

It contains high calcium and vitamin that can help human survive in worst condition or situation. Approved by Ministry of Health. HuReMil stand for Human Ready Meal which is normally use by military during war time. Other than that. This biscuit not like ordinary biscuit in the market. This is because foods in HuReMil are ready made and only need to warm before eat. For now. We provide some foods that can be eat with bread and rice such as Chicken Curry. This product is based on Food and Beverage industry. emergency and to serve for a homeless people which our company will focus on.1 INTRODUCTION OF HUREMIL COMPANY 1. this kind of food is available to the public. In addition. HuReMil basically can also be defined as Turbo Meal which is very efficient to use during hard time such as natural disaster. we also have “Energy Sparkling Water” that come with a unique packaging. Page | 3 . The packaging is hardly to break or leaked. we can guarantee the hygiene level of our products. “Beef Kurma” and “Serunding”.1 COMPANY’S NAME Our company’s name is HuReMil. Our factory also equipped with a latest technology machine that can work efficiently and increase production level in order to meet our beloved customer’s demand.3 PRODUCT LINE HuReMil products focus on foods that suit with local taste. Not only ready to eat food. Chicken cooked with chilly mix with coconut milk (“Chilly Paddy Chicken”). 1. Sentul. On top of that. 1.2 COUNTRY OF ORIGIN HuReMil origin country is Kuala Lumpur. we also produce our own unique biscuit that we name it “Energy Bank”. HuReMil is a healthy foods and very suitable for anyone. Malaysia. We have one factory that produce variety of foods and it covered all processes from raw material to finish products. What makes this water different from any other water in the market is some special ingredients that can make one who need energy become more energetic. The packaging of this water also really suitable to be use in any conditions. The factory located in Jalan Ipoh. HuReMil foods also have a unique expired time which is longer than any other ordinary fast food in the market.

we had examined changes in food consumption patterns and measure the growth of modern food retail chains. 1. we will provide ready-to-eat meal at age population range between 21 and above because of its large size that will growth the potential in demand and needs on their daily life. Generally. soybeans. Indonesia itself has a widen land field which is plentiful of resources like dietary foods for instance rice. Thus. who prefer fast food due to the lack of time and save money. so that it will making fast food easily and this services would be able accessible to a large number in urban population. and low classes that focusing on peoples living in Indonesia mainly. Based on my researched on economic output in Indonesia their largest sector in economy which is agriculture. we will use all these resources that I have mentioned above to create a meal ready to eat based on their dietary food tastes but also provide a diversification product that can be accessible and suitable their taste as well as long it is healthy food Page | 4 .1. upper. Plus. packaged food purchases as well as we providing our products based on demographic and trends including the middle. and sugar.9 million a year.1 IDENTIFY AND DESCRIBE ONE PRODUCT OF YOUR ORGANIZATION TO BE MARKETED FOR A RELEVANT MARKET SECTOR AND JUSTIFY THE OBJECTIVE OF THE INTERNATIONAL EXPANSION. the behavior of the students and workers tend to go supermarket or convenience store that come equipped with microwave and hot water. Basically.1 WHERE TO BE MARKETED? 1. As Indonesia country the world’s fourth highest populated country that is expanding at a rate of 2.1 Market Segmentation in Indonesia We choose Indonesia as it country has potential for growing profitable growth with regards to market entry an economic growth and urbanization in Indonesia over the past decade has been get along with fast growing modern retail food sector and by changes in food consumption patterns.

Despite.1. plus. all items are labeled with fixed prices. and convenience stores in which it has increased in Indonesia over the last few decades. In modern stores. Lastly. In traditional markets. Unlike at Jakarta and Bandung in both of western Java modern retail food outlets we would not necessarily put the lowest price as it because people who living in cities basically are rich. mini markets. Comfort environment. HuMeRil Company will hire workers that are willing to distribute being as traditional retailer division to sell our product as well directly at rural area. modern food retail stores sell an increasing share of food products and particularly packaged goods to urban consumers. Food safety assurance as modern outlets can protect fresh foods from oxidization better than the unintegrated supply chains of the traditional sector. thus those urban consumers afford to buy our product but different thing at rural area we decided to put the lowest price for lower income at rural area. Page | 5 . the urban consumers are demand for convenience of large space hypermarket. Secondly. and shoppers themselves can select the food items easily. Other facts about we want to distribute product by traditional retailing as such using mobile stalls or other ways we will going to sell direct to customers whether at sidewalk and etc.2 The best way to distribute products meal-ready-to-eat The movement distribution a set of meal ready to eat in Indonesia has 2 ways which is in a Modern retailing format is by food retailing through supermarkets. hypermarkets. both ways has different target in market segmentation which are the products will allocate at kind of different location in area within urban cities and also at the rural area that comprises of middle and lower income. Furthermore. Thirdly.1. and price bargaining is too commonly. While most Indonesians purchase their food from traditional retail outlets. vendors sometimes select the item to be purchased. Surrounded with an environment and air conditioning are important aspects in Indonesia’s moist and regarding warm climate. information. because people can buy anytime and anywhere by our products that hypermarket or convenience store are able to operate business in 24 hours in a week compared to the traditionally retailer.

Susilo Bambang has elected as president and Muhammad Yusuf Kalla is the Vice-President. Last time it was held on 8 July 2009 (next to be held in July 2014).2 Business or individual tax system: Tax system has various rules and categories for example on first 25. For this question.000 it is 30%. the government cannot charge us to pay the tax. our company will choose Indonesia as our country to do the business.2 POLITICAL & LEGAL FACTORS: Indonesia is considered as Republic country.2. So. 1.000 it is 15% and on next 50. At this point we can see that the political factors in their country is quite stable because the government keeps shuffle and have a new people in their organizations. This also can tells to our company that. the country are safe to be penetrate for us. the best way to know about the country is by doing an analysis using a PESTLE method. 1. Similarly. So for next 5 years there are more chances of stability of the government. If our company are below than that. 1. Cabinet also appointed by the president.1 DISCUSS THE COUNTRY OF YOUR CHOICE BASED DISTINCTIVE FEATURES OF DOING BUSINESS IN A SPECIFIC COUNTRY.1 Political stability: In Indonesia after every five-year election is being contested for president and vice president post by direct vote of the citizenry. It declared its independence on 17th August 1945 from Japan so 17th August is the national holiday. In the same way Income Tax on interest from Indonesian banks is fixed at a final 15% for both companies and individuals. Page | 6 .2 FACTOR OF CONSIDERING IN INDONESIA 2.2.000 income rate of tax is 10% then on next 25.000.000. For our company. this tax can be considerable because the tax of 10% is when it reaches the target of income rate. Their constitution has abrogated by Federal Constitution in 1949 and Provisional Constitution abrogated in 1950 which restored on 5 July 1959. Indonesia legal rules and regulations are based on RomanDutch law.000.

1 Exchange rates: 1 MYR = 3.1%. chemicals. we can confident our product are sold in that country.5% of their GDP to develop their nation. South Korea 5. They have hub of natural resources such as in Oil production.3. income. The major import partners are Singapore 16. if we are selling the food in a new way.3 Import: Due to change in population.3. US 6. The major import commodities are machinery. In addition.1.3.62 billion and expenditures $98. Due to the government policies and treasure of national resources. The major reason behind it is economic downturn. It was 9.02 IDR If the tax rate 10% are being applied to our company. if we take a look at their main import product. According to last announced budget they had revenues $92. equipment.7% in 1999. 1. Malaysia 6. The total import in 2008 was $125 billion compare to $85.500 MYR based on our profit by selling the meal ready to eat product. it must reach around 7. Page | 7 . mostly they are importing a machinery and equipment tools more because they quite many the industrial place there but for the foodstuff is quite low.8%. Thailand 4.9% in 2008 compare to 6. fuels and foodstuffs. 1.9%.4%.7%. It is because their citizens also are competing each other to sell their foods and it is all delicious.9% (2008).26 billion in 2007. their GDP growth has been increasing rapidly from last few years. it has 23rd rank. So.2 Inflation rates: Inflation rate is still high but it has come down after a high of 20.3 ECONOMIC FACTORS Indonesia is considered as a developing country. China 11. Japan 11. They spend 23. in natural gas production and in export it is on 8th position. import and export in Indonesia are increasing every year.261. 1.3% in 2006.88 billion in 2008.9%.

52% of total population live in urban areas which are increasing at3.26 years and for female its 73.1 years and for female its 28.38 years. Roman Catholic 3%. we can see that most of Indonesian are younger which are perfect to sell our product also besides from sell it to the natural disaster people or homeless. If we talk about majority it is a nation of Muslim with 86.4. which is increasing at a steady rate. The birth rate in Indonesia is 18.4.8%.25 deaths/1. 1.4. it is very confident to promote our product because most of the Indonesian are Muslims and we also more focusing on halal foods and also the hygiene factors.000 populations.000 and the mortality rate is 29.1.522 populations which is growing at 1. The total life expectancy rate is 70.2 Age factor: Indonesia is considered as nation of young people. As been stated before. it contains an energy which keeps the people who eat it. Based on this analysis also. Protestant 5. 1.1%. and Hindu 1. will more energetics because most of the young people are busy and have no time to eat proper meal.3 Religion: Indonesia is a multi-culture and religion country where people from different religion work there.271.2% every year.1 years.7%. From this age factors analysis.76 years in which for male its 68.4 SOCIAL FACTORS: 1. It is on the 5th position all over the world with total 240.84births/1.13%.6years in which for male it is 27. The total median age is 27.1 Population Indonesia has a large population. Page | 8 .

33 millions of people use landlines where as 83. Belawan. 1. Kotabaru. Page | 9 .3 million of people use Cellular mobiles in the same way there are 13 million of internet users which is good sign for a country. Tanjung Perak. Palembang. Tanjung Priok. Ciwandan. The technology in Indonesia are quite impressive where our company do not need to worry much because all their infrastructure are well manage and build. It has interisland microwave system. HF radio police net and domestic satellite communications system coverage which makes its communication system better. Most of the transportation and communication technology giving us the ability to promote and deliver our product perfectly and just in time.2 Communication system: The communication system in Indonesia is highly developed which maintained 17. It has one of the largest merchant moraine with 971 in which 114 is already registered in foreign country. Krueg Geukueh.5. Panjang.1 Transport system: Indonesia has effective and highly developed transport system with 139 airports.5. railways with 8529km and water ways covering 21579km and major ports are Banjarmasin.5 TECHNOLOGICAL FACTORS: 1. SungaiPakning.1.

3 Geographical location: Its geographic environment is one of the most complexes and varied in the world. several times Indonesia has faced many natural disasters such as in December 26.904.100 different dialects are spoken. Even discounting the calamitous effects of the fire. 2007. Basically it is hot and humid country. in Feb.569 sq km area in that land is 1. Therefore.811. Sulawesi. the landscape ranges from rain forests and steaming mangrove swamps to arid plains and snowcapped mountains. based on this natural and environmental disaster. January 27. In the same way.000 hectares per year and possibly as much as 1 million hectares per year. magnitude 9. 2008 and many times country has faced same trouble because of its location. and Sumatra.5. this country is our perfect choice to penetrate and aggressively promote our product in order to make all the disaster people to survive with our healthy foods and energy water to keep them all healthy and not in suffer anymore.000 sq km. at 700.667 islands. 2006.0 earthquake caused a tremendously powerful tsunami in the Indian Ocean and about 155000 people died and after this in May 26. 1. The nation encompasses some 13.569 sq km and water is 93. At least 669 distinct languages and well over 1. In 1983. Page | 10 .4 Natural or environmental disaster: Due to its geographic location. By one count. it has situated in South-Eastern Asia between the Indian Ocean and the Pacific Ocean. 2004. country has faced deforestation. about 3 million hectares of prime tropical forest worth at least US$10 billion were destroyed in a fire in Kalimantan Timur Province.1. in the mid-1980s Indonesia's deforestation rate was the highest in Southeast Asia. The disastrous scale of this fire was made possible by the piles of dead wood left behind by the timber industry.5. It has total 1. due to its mountainous interior regions of Kalimantan. soil erosion and massive forest fires.

Page | 11 . the asset based perspective tends to thin execution and global business system to assets in particular firms. everything else that has no physical vicinity however can at present be possessed by the organization. The totaled perspectives are elements of examination discoveries did in situations whose organizations are apparently institutionalized and stable. For the intangible assets. After that. Brand notoriety.1 BASED ON STRATEGY TRIPOD. Dissimilar to physical assets. Immaterial assets more often than not stay inside of an organization and are the principle wellspring of reasonable upper hand. trademarks. PROJECT A BUSINESS STRATEGY AND JUSTIFY THE SPECIFIC RATIONALE THAT MAKES YOUR IDEA A VIABLE BUSINESS OPPORTUNITY The industry based of view is established in the supposition that the procedure utilized by MNEs is controlled by the conditions inside of the business of core interest. Likewise. Because of the industry of HuReMil are easily get the resource and the business are one of the favorite local food in the country. brand notoriety is assembled over quite a while and is something that different organizations can't purchase from the business sector. In the interim these perspectives have not possessed the capacity to manage the annoying inquiries acted by methodology like respects speculation areas for the HuReMil organization. protected innovation are all elusive resources. the HuReMil have they own competitive advantages one of them are that the secret ingredient of HuReMil food contain this is the tangible assets.2 STRATEGY TRIPOD FOR HUREMIL 2.

In the organization we do the institution based view by doing a third leg of the strategy tripod that show in the figure 1. Then. Page | 12 . the conditions and transitions of our organization are very stable and very accepted from the local of the area either in urban and rural area. Figure 1 This figure show how the organization to function well and in good performance by doing the best strategy. In the form of resources and capabilities. our organization one of the flexible in the country and easily adapted with the environment. In the industry based competition our organization are best in the competitive advantages the other industry can’t compete because of the secret ingredient that our organization provided.

1. here is the developed a VRIO EXCELLENT RELATION WITH SUPPLIERS CUSTOMER SERVICE BRAND NAME & REPUTATION CONCEPT INNOVATION MANAGERIAL KNOWLEDGE & SKILLS PRODUCTION PROCESS EFFICIENCY QUALITY & WIDE RANGE OF PRODUCTS FINANCIAL CAPACITY COMPETITIVE IMPLICATIONS VALUE RARITY INIMITABILITY ✓ ✘ ✘ PARITY ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✘ ✘ ✓ ✓ ✓ ✓ ✓ ✘ ✘ ✘ ✓ ✓ ✓ ✓ PARITY PARITY TEMPORARY ADVANTAGE SUSTAINED ADVANTAGE SUSTAINED ADVANTAGE SUSTAINED ADVANTAGE SUSTAINED ADVANTAGE analysis. HuReMil needs to have sustained competitive advantages and in order to better understand them. explaining if they contribute or not to sustained competitive advantage.3 VRIO MODEL FOR HUREMIL 3. 3. Table 1 – VRIO framework Page | 13 .1 By using VRIO Framework discuss on how your organization’s plan for your product or service in order to sustained the competitive advantage in the global marketplace for a long run. to survive in the fast food industry. Hence.2 COMPETITIVE ADVANTAGES The industry mapping shows a lot of competitors inside the food industry and several substitutes. This framework is used to evaluate the resources and capabilities of the firm.

HuReMil managers negotiate frequently with its suppliers and use their knowledge and skills to operate with an efficient production process. Page | 14 . the efficiency of the production process. with a strong investor (Syed Mokhtar AlBukhari) as partner. with the financial capacity to expand to the main shopping centers of the country and to consider international growth. Finally. HuReMil is giving back the status that it deserves in a moment where many international fast food chains seem to be taking over in Malaysia. There are many important resources that allow the company to offer such value for the customers. In order to operate with the concept mentioned above. because it is extremely hard to offer great quality products for affordable prices in a short period of time. In fact. HuReMil is a business financially well-structured and disciplined. HuReMil further offers a greater variety of products than the competition. the financial capacity and the quality of the wide range of different products and ingredients. As so. is rare and difficult to imitate. HuReMil has competitive advantage. with strict measurements defined to assemble each meal. As the HuReMil is one of the most emblematic Asian dishes and has an extreme emotional value to the Asian consumer. The rarest and difficult to imitate are the managerial knowledge and skills. Nevertheless.The fast casual dining concept of HuReMil is an innovation controlled by few companies in the Malaysian fast-food market. but the company will only be able to sustain it with organizational improvements in order to grow through franchising the company needs to optimize and standardize processes. To conclude. eating in HuReMil is an improved ritual with a clean and refined aesthetic where everything still suggests the traditional Asian feeling of the ritual. the value proposition of HuReMil lies in the innovation in the product and in the very strong price and quality relationship. more than individual resources. what really makes the difference for the company. is the combination of resources – that’s what really has value.

culture and nature of the competition and the opportunity. factors such as the trends. JV would be an interesting choice to establish our business there step by step.2 JOINT VENTURE If possible. But the problem is that we don’t have the full control over the management of the JV company. but to have a successful market entry. so that there will be less conflict when we start to run our business. it is because we share the same norms and culture like we used to in Malaysia which ease the process of doing our business there. But there is a consequence is since we have a very unstable exchange rate of our Ringgit Malaysia. quotas and other exemption for our businesses. perhaps threat of competitor would turn in to an opportunity. Likewise. And the good thing about exporting in Indonesia is because that both countries are part of ASEAN. since we are producing in home country. HuReMil selected country for investment is Indonesia for now. which means we probably will have less taxation. So far this are the choice that will probably fit with the current situation. In order to learn their culture. we can’t follow up their trend of food. we need to partner with the host country company such as Blambangan Food and etc. By doing so we can learn their culture and slowly catching up with the other competitor to rise to the surface of the competing arena. we probably will have trouble if the exchange rate fluctuates so sudden.4 MARKET ENTRY TO BE USED FOR HUREMIL There are many entry strategies. Page | 15 . it begins with evaluating possibility. There are several entry strategies that we chose to run our business listed below: 4. But it can be overcome by map out in advance of what they expect to achieve and how it should be. and some partners may have different views on expectation of how the company should be. 4. since we share risk and profit together. But somehow we need to have a perfect fit strategy for our business to run smooth as well.1 DIRECT EXPORTING Exporting can be used if we prefer to have less risk of operating our business there in Indonesia.

we think that we have to do the ownership after we can walk on our foot from JV. and the government would be need of us to supply food to the victims. we can build our own company to have full control over it to reduce the risk of being overpowered by the other partner. skills and knowledge of running this business to compete against the big existing company. It is a wise decision. Furthermore. Somehow every alliance has it weakness such as overpowered by other parties. we might have ended up to follow the order of the other partner since they have bigger share. there is a big profit coming ahead if there is disaster such as tsunami.3 STRATEGIC ALLIANCES If we could make a strategic alliance with the government. 4. government might be needing us to make MRE for their army supplies if we able to compete between the local vendor that already exist in the market.4. By doing so we could achieve the economics of scale. spending and return since now we have no aids from our partner. but if there is a contract which limit the power of control between two or more parties it should be fine. From our viewpoint. Thus. we might have a chance to be a vendor of their choice which will bring more sustainability to our company.4 OWNERSHIP This strategy would come after we have a very stable business to run 100% on our own control. learn from the locals. earthquake etc. On another viewpoint is that we can also create two or more SME host/home country company food industries to have the resources. which can lower our production cost by pooling resources to each other. adapt to the culture and get used to the environment there in Indonesia. Page | 16 . with huge capital. but we have to monitor very careful on the capital. which is why JV or Exporting should come first before establishing our very own company. It may not take a long time to adapt to the situation since we share the same norm with Indonesia as well.

Therefore. if the situation aren’t good for the strategy we will have to shift to another. it is important to know the culture of the country first before make any business or dealing with them. every decision has to be perfectly analyzed before put it into action to minimize possible risk in order secure our future. strategies can change in time based on the current situation. it really depends. Page | 17 .5 CONCLUSION In the nutshell. perhaps there is a chance that we do not face any problem with the communication at all. That is why we should take the closest country which is Indonesia because the norms and value that we practice are most likely the same as theirs. But any strategies that we take will face some problem. Because you will never be going to guess whether there will be rain coming. Thus. there would be certainly few issues regarding the communication. it is how we manage our problem into an opportunity. As we know. as for example if the JV does not work well with each other anymore we should try another partner or shift into direct export strategies. but certainly we need an umbrella if it does.

[Online] Available at: http://www. Indonesia Pestle Analysis 2015. The Ready Store.agr.6 REFERENCES ASAE Center. Attitudes and Perceptions Toward Food Products. 2010. [Online] Available at: http://www.asaecenter. [Online] Available at: http://www.gc. J. International Market Bureau.fao. Indonesian Ready-to-eat Food Market set to Increase. [Online] Available at: http://blambanganfood.html [Accessed 12 November 2015]. [Online] Available at: http://www.Behaviour. About US: Content. 2000. [Online] Available at: http://www.htm [Accessed 14 November 2015].org/AboutUs/content. 2013. 2015. Canvassco. Blambangan Food. The Indonesian Consumer . [Online] Available at: http://www. 2014. Our Company. About Us: The Ready Store.thereadystore. FAO Corporate Document Repository..com/bfpi_ourcompany1.com/ [Accessed 27 November 2015].com/articles/92563-indonesian-ready-to-eat-food-marketset-to-increase [Accessed 13 November 2015].cfm?ItemNumber=137633 [Accessed 14 November 2015]. Page | 18 .org/docrep/w5973e/w5973e0b.foodengineeringmag.slideshare. Gerrard.net/Canvassco/indonesia-pestle-analysis-2015 [Accessed 23 November 2015].ca/eng/industry-markets-and-trade-/statistics-and-market-information/byregion/southeast-asia/the-indonesian-consumer-behaviour-attitudes-and-perceptions-toward-foodproducts/?id=1410083148749 [Accessed 26 November 2015]. Chapter 7: Market Entry Strategies. 2011. 2008.