REPORT ON EXPORT PLAN

Submitted to: MS KASHFIA AMEEN

Course: INB302

Section :1

Submitted by:

NAME ID

SALMAN KHAN SHAWON 1621559

TANJILA JAHAN 1521975

MD KAMRUZZAMAN MAJUMDER 1530218

SAYED NURE ALAM 1511103

INSANUL HAQUE 1310873

RAIHAN CHOWDHURY 1521833

1
 Letter of Transmittal

MS KASHFIA AMEEN

Lecturer,

School of Business

Independent University, Bangladesh

Subject: Submission of final report about exporting bag and luggage.

Madam,

With due respect, we would like to submit our final report that you have assigned to us. The report
concentrates on the basic information on Kings bag and luggage industries limited. We have tried
to exert all the knowledge that we gathered through a group discussion and information taken from
online research. Before facing the real business world, we have gathered prior knowledge about
the Export planning process. We hope that all the information and analysis provided within the
report will be up to your expectations.

Your feedback and suggestions are highly welcomed and will help us to improve our work.

Yours Obediently,

Salman Khan Shawon,

Tanjila Jahan,

MD. Kamruzzaman Majumder,

Syed Nure Alam,

Raihan Chowdury

Insanul Haque

2
 Acknowledgement

We express our sincere thanks to our respective faculty MS KASHFIA AMEEN for giving us the
opportunity to do this wonderful project on this topic and also helped us a lot in finishing the report
within the limited time. We would also like to express our deepest appreciation to all those who
provided us the possibility for completion of this report. This report helped us in doing a lot of
Research and we came to know about so many new things. We have learned a lot about exporting
theories of international trade and why people engage in international trade. We are also very
thankful to our friends and well-wishers. Without their support everything must be different.

3
 Table of Contents

1. Executive Summary …………………………………………………………………….5

2. Company Overview……………………………………………………………………..5
3. Why the company needs to go global…………………………………………………...6
4. Entry Strategy……………………………………………………………………………7
5. Country Profile……………………………………………………………………….......8
6. Implications of International Trade Theories for managers……………………………...9
7. Significance of International Trade Theories in Business………………………………..9
8. SWOT Analysis…………………………………………………………………………10
9. Conclusion……………………………………………………………………………….11
10. Reference and Bibliography……………………………………………………………..12

4
Executive Summery
Kings Bag and Luggage Industries Limited understands the needs of the customer it serves
innovative change the end users. In order to achieving its position as one of the nation’s leading
100% Export oriented readymade Bag factory manufacturing company. It is essential that we
consistently meet our customer’s requirements and expectations for quality, performance,
timeliness, cost of products and services. The procedural outline of this followed during production
of bag and luggage. The products Kings Bag and Luggage are of international standard in order to
ensure a consistent product quality for our valued customers. By practice these exercise customer
requirements can be meet in timely and effective manner. Another milestone in the company’s
consistent success was the assignment for developing all.

So it is true that within a short span of time Kings Bag and Luggage Industries has rapidly turned
in to a successful player in production sector. Kings bag and luggage are produced with high
quality raw materials imported from china. The products have durable and non-faded fabric. Good
quality plastic and chain is provided for longevity of the product.

Company overview

Kings Bag and Luggage Industries Limited is 100% Export oriented bag and luggage manufacturer
established in 2017. We have established our factory in our own land in Mirpur Industrial Area
with high quality industrial equipment. We used ACI&AIST and Bangladesh national Building
code for structural Design purpose. We applied for BSCI Certification. Our factory with highly
experience technical shaft backed by latest technology. We have enough logistic support such as
150 KVA Wilson Brand generated etc. specializes in supply all kinds of Bag and Luggage like
school bag, office bag, laptop bag, ladies ‘hopper bag, shopping bag, backpack etc. which are we
sale to Asia and Europe. It established Sampling and Design department in January 2017. We
manufacture products as per buyer requirement how at any cost of we try to meet the buyer’s
quality of standard. The objectives and all efforts of the management is to ensure quality products
as per buyer's design and specification our factory is 100% export oriented and we have facility to
source all materials from China as we have liaison sourcing office there to support our production.
Kings bag and luggage are produced with high quality raw materials imported from china. The

5
products have durable and non-faded fabric. Good quality plastic and chain is provided for
longevity of the product. Backpack, Executive Bag, Laptop Bag, Luggage, Ladies Bag,
Accessories Bag, all other kinds of bag are available and the manufacturer can make custom design
of the product according to the consumer requirements.

Currently we are suppling only between national boundaries and we are getting positive responses
from the local people of our country. After meeting local demands, we want to go globally so that
we can earn some foreign currency and can contribute to our country’s economic growth.

Why the company needs to go global?

Nowadays with this ever speeding technology business technique has changed completely. So to
get better benefits companies need to go global to grow business internationally. Being a small
business doesn’t mean you have to think small. Technology makes it possible for many small
businesses to expand globally. Companies go international for a variety of reasons. In general,
companies go international because they want to grow or expand operations. More specific
motives include generating more revenue, competing for new sales, investment opportunities,
diversifying, reducing costs and recruiting new talent. Going international is a strategy that is
influenced by a variety of factors and is typically implemented over time. Sometimes, governments
will incentivize expansions into global markets. (Bizfluent. (2018)). As a small business we think

6
we need to engage in international trade. After meeting our local demand, we want to expand our
business internationally. Because through engaging in international trade, we can be benefitted
through these things that are given below (Bruns, J. (2018)):

 We can diversify our markets and customer base.

 We can extend the sales life of current products what is already popular in our local market.
 We can reduce dependency on our current markets by spreading our risk.
 We can learn how to compete and grow and may end up wanting to expand from market
to market.

At first, we want to expand our business in India. Because India is the nearest country from
Bangladesh. The taste and preferences of people are not that much different. So it will be very
helpful for us doing business there. Using exporting as an entry strategy we will take our business
globally. Besides this, the political situation of two countries are good enough and the barriers and
tariff are not that much high. For this we are choosing India to expand our business globally as it
is a similar types of country to Bangladesh.

Entry Strategy

Selecting market entry strategy is influenced by various factors, such as the promising size of the
market, targeted market, the customers buying capacity, etc. Our form of operation is
''EXPORTING''. The entry strategies for our product are: -

Direct exporting: We are going to follow direct exporting. It will help us to interact with the foreign
market directly without any third parties’ interference. We are going to enter into INDIA market.
We are going to hire local distributes. They will act according to the company's instructions and
will help us to inform about the market needs and the market research.

Country Profile

7
Cultural: The culture of India is the way of living of the people of India. India's languages,
religions, dance, music, architecture, food, and customs differ from place to place within the
country. Many elements of India's diverse cultures, such as Indian religions, yoga and Indian
cuisine, have had a profound impact across the world. India is the birthplace of Hinduism,
Buddhism, Jainism and Sikh ism, collectively known as Indian religions. Indian religions are a
major form of world religions. India is one of the most religiously diverse nations in the world,
with some of the most deeply religious societies and cultures. Religion plays a central and
definitive role in the life of many of its people. Traditional clothing in India greatly varies across
different parts of the country and is influenced by local culture, geography, climate and rural/urban
settings.

Economics: India is a stable democracy. It is 80 percent Hindu but also home to one of the world’s
largest Muslim populations. India’s diverse economy encompasses traditional village farming,
modern agriculture, handicrafts, a wide range of modern industries, and a multitude of services.
Services account for nearly two-thirds of India’s output but employ less than one-third of its labor
force. India has capitalized on its large, educated English-speaking population to become a major
exporter of information technology services, business outsourcing services, and software worker.
Trade is moderately important to India’s economy; the combined value of exports and imports
equals 40 percent of GDP. The average applied tariff rate is 6.3 percent. Nontariff barriers
significantly impede trade. Government openness to foreign investment is below average. State-
owned institutions dominate the financial sector, and foreign participation is limited. In public-
sector banks, troubled assets account for about 10 percent of total assets.

Political environment: The political environment can impact business organizations in many
ways. India is the largest democracy in the world. A country where is a handful of politicians
control more-than-a-billion population. Business, just as other things in India, is adversely affected
or rather controlled by politics.

Market size: Indian luggage industry is the most significant and the largest segment of the Indian
bags and luggage industry. Luggage has become a necessity now. This variation in needs and
requirements makes the consumers to demand luggage in various styles and this provides the
reason for the luggage products to be so diverse in terms of utility. Luggage is the most
indispensable part of travel and tourism. The luggage market is mainly driven by the growth in the

8
Indian travel and tourism industry as with more people travelling, the luggage they carry will
increase proportionally. Luggage is an indispensable part of travelling and now it is becoming a
status symbol too. Moreover, the increase in urban population and increase in per-capita income
have led to increased demand for luggage industry’s products.

Implications of International Trade Theories for managers

International trade theories are simply different theories to explain international trade. Trade is the
concept of exchanging goods and services between two people or entities. International trade is
then the concept of this exchange between people or entities in two different countries. There are
different types of theory like Product Life Cycle Theory, Heckscher Ohlin Theory, Ricardo’s
theory of Comparative Advantages, Porter’s Diamond Model, New Trade Theory etc. The
implications of Trade Theories for managers wishing to expand their business globally are given
below(Slideshare.net. (2018)):

 Location implications: A company should export only those countries where it can
perform its various types of activities efficiently and effectively. A country should export
those types of products which is abundant in nature. Like for our company, we produce
different types of bags. As we are labor abundant country we should export labor intensive
goods.
 First- Mover- Implications: A first mover advantage can help a company to dominate
global trade in that product.
 Policy implications: A company should lobby the government to adopt policies that have
a favorable effect on each component of the Porter’s Diamond Model.

These are the things that a manager wishes to imply trade theories to expand business globally. As
a manager of a local company I want to imply this thing to expand my business globally.

Significance of International Trade Theories in Business

There are different types of model like Product Life Cycle Theory, Heckscher Ohlin Theory,
Ricardo’s theory of Comparative Advantages, Porter’s Diamond Model, New Trade Theory etc.
These all are important in international business decisions. To expand our business, we have
chosen two theories which are Ricardian comparative advantages theory and new trade theory.

9
Ricardian comparative advantage theory explains why countries engage in international trade
even when one country's workers are more efficient at producing every single good than workers
in other countries. He demonstrated that if two countries capable of producing two commodities
engage in the free market, then each country will increase its overall consumption by exporting
the good for which it has a comparative advantage while importing the other good, provided that
there exist differences in labor productivity between both countries.

New trade theorists relaxed the assumption of constant returns to scale, and some argue that using
protectionist measures to build up a huge industrial base in certain industries will then allow those
sectors to dominate the world market.

In our business we will use these two theories to export, we are using new trade theory which gives
constant return to scale. Our country is good at producing labor intensive good and our product is
also labor intensive good so we are exporting labor intensive good, in the ricardian model of
comparative advantage it is mentioned that capital intensive country will export capital intensive
good and import labor intensive good. labor intensive country will export labor intensive good and
import capital intensive good.

SWOT Analysis

A SWOT analysis is an incredibly simple, yet powerful tool to help you develop your business
strategy, whether you’re building a startup or guiding an existing company.

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

STRENGTHS

Strengths are internal, positive attributes of any company. Our company ensure quality products
as per buyer's design and specification our factory is 100% export oriented and we have facility to
source all materials from China as we have liaison sourcing office there to support our production.
We always prefer to serve quality products to our customer maintaining good relation with the
customer. We innovate and differentiate our product to be more competitive advantage than the
competitor.

WEAKNESSES

10
As a new company in the market we have some weaknesses. We are exporting products to India
where is heavy competition with bigger companies competing in the market. To export in a bigger
market like India we need big capital investment. We also need to invest in advertisement because
our company is new in the market.

OPPORTUNITIES

Opportunities are external factors in your business environment that are likely to contribute to your
success.

Along with the weakness our company has opportunities in business. We can expand our business
because we have a bigger market and demand for our product . We can maintain good relationship
with the customer and ensure quality product to the customer to Attract more customer. We can
differentiate our product from the customer product so that our product demand rises.

THREATS

Threats are external factors that you have no control over. As along with opportunities there are
threats in our industry and in foreign market. There is huge competitions in the home and foreign
market and new competitors are also joining in the market along with the Bigger and key
companies already competing in the market.

Conclusion

Kings Bag and Luggage Industries Limited understands the needs of the customer it serves
innovative change the end users. We prefer to ensure customer with quality products. The products
Kings Bag and Luggage are of international standard in order to ensure a consistent product quality
for our valued customers. Objectives and all efforts of the management is to ensure quality
products as per buyer's design and specification our factory is 100% export oriented and we have
facility to source all materials from China as we have liaison sourcing office there to support our
production.

we are exporting in India to expand our business. There are threats from competitors who are
already participating in the business as our company is new in the market but along with risk there

11
are opportunity because there a big market and demand for our product. Main goal of our business
is to earn profit by giving quality service to our customer

References & bibliography

 Bizfluent. (2018). Why Do Companies Go International? [online] Available at:
https://bizfluent.com/facts-5256365-do-companies-go-international.html [Accessed 12 Nov.
2018].
 Bruns, J. (2018). 5 reasons to go global and what to know before doing so | Missouri Business
Development Program. [online] Missouribusiness.net. Available at:
https://missouribusiness.net/article/reasons-to-go-global/ [Accessed 12 Nov. 2018]

 Slideshare.net. (2018). Chap 5 International Business (International Trade theory). [online]

Available at: https://www.slideshare.net/NeerabImAn/chap-5-international-business-
international-trade-theory [Accessed 12 Nov. 2018].

12
13