Assignment

On

Global Market Expansion

Course Title: International Business

Course Id: INB 301

Section: 01

Date of Submission: 30.07.2017

Submitted By:

Name ID
Lazina Mona 1510834
Paromita Saha Tumpa 1531214
Sinthia Zahan Tushi 1530511
Afsana Mumu 1420863
Ashian Bin Mohid Khan 1530007
Md Adu Shadak Papon 1510068
Executive Summary:
Bangladesh is an emerging country for global economy with reputation of some industry
growth. We already drew attention of foreign markets for exporting quality products like raw
jute and jute product. Asia Jute is a company that has already attained global market and
export in different countries in the world and hoping to continue, sustain and looks forward to
reach other opportunity market.

Especially from last decade, many country discourage the products that are a cause to
environmental pollution and emphasis highly on eco-friendly product. Our country patronize
this type of product with subsidy, monitor and favor policy making. There was a time
Bangladesh used to earn 80-90% just by exporting jute. To get back the market position we are
seeking and identifying opportunity market by competing with our competitors. Asia Jute draws
attention in the domestic and foreign market focuses using excellent promotional activity. In
immunes, to select new market we consider cultural, political, economic condition and
sustainability of the countries. We analyze trade friendliness, diplomatic relationship status,
export import policies, regulation and future market potentiality. We have chosen Australia and
France due to the aforementioned reasons, further details of which are in the analysis below.

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Letter of Transmittal
30th July

Abu S. Arif
Sr. Lecturer, Marketing
School of Business,
Independent University Bangladesh.

Subject: Submission of research report

Dear Sir,

It indeed is a great pleasure to present before you the overall findings of the internship research
report.I have tried as far as it was possible to meet all the specifications and instructions you
have provided for the report and necessary to prepare a report.

I appreciate having a chance to prepare this research report. I have tried my best to prepare this
in a proper way in spite of various constraints like time and complications in understanding.

I earnestly hope that this research report will meet your specifications and would be delighted to
furnish you with any clarification if required.

Thanks and regards

Yours truly,
Lazina Mona
On the behalf of the group

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Acknowledgement:

This report has not only gave us some invaluable experience, at the same time it has made us
indebted some extremely helpful and knowledgeable people.

Firstly, we want to express our gratitude to faculty, Abu S. Arif, without whom this report would
not be possible to accomplish. We are honored to have him as our faculty, who have taught us
about the different values in life as well as academics. Last but not least; we would like to thank
all the group members who have worked in making this report. Without their assistance and co-
operation, this report might not have seen the light of day.

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Table of Content
Contents
History.........................................................................................................................................................7
Mission........................................................................................................................................................7
Vision...........................................................................................................................................................7
Goal.............................................................................................................................................................7
Core competency........................................................................................................................................7
Company finance.........................................................................................................................................7
Jute Bags..................................................................................................................................................8
Jute Handicrafts...........................................................................................................................................8
Features of the products:............................................................................................................................8
Export opportunity:.....................................................................................................................................8
Growth potential.........................................................................................................................................9
Product strategy..........................................................................................................................................9
Rational for exporting................................................................................................................................10
Rational for targeted foreign market.........................................................................................................10
Australia................................................................................................................................................10
France....................................................................................................................................................10
Present Scenario of Potential Countries................................................................................................10
Industrial Profile........................................................................................................................................11
Jute Goods:............................................................................................................................................11
Export of Jute Goods by BJMC:..................................................................................................................12
Competitor analysis...................................................................................................................................12
Form of operation.....................................................................................................................................13
Indirect / direct exporting.........................................................................................................................13
E-commerce option...................................................................................................................................13
Target customer profile.............................................................................................................................13
Pricing strategy..........................................................................................................................................13
Pricing Packaging & Delivery:....................................................................................................................13
International law.......................................................................................................................................14
Language consideration.........................................................................................................................14

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 Contract terms and condition................................................................................................................14
Sales agent / distribution agreement....................................................................................................14
Export/ import regulation......................................................................................................................14
Country risk...............................................................................................................................................15
France....................................................................................................................................................15
Australia................................................................................................................................................15
Commercial risk.........................................................................................................................................15
France....................................................................................................................................................15
Australia................................................................................................................................................15
Currency risk..............................................................................................................................................15
France....................................................................................................................................................15
Australia................................................................................................................................................15
Market risk................................................................................................................................................15
France....................................................................................................................................................15
Australia................................................................................................................................................16
Political risk...............................................................................................................................................16
France....................................................................................................................................................16
Australia................................................................................................................................................16

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Company Description
History
The company was founded on 10 th January 2008 by Shamsuddin Muttaki. It was when he identified an
opportunity to provide a practical solution to companies and consumers who wanted an ecological
alternative to plastic bags. The company is located at the West Shanarpar, Shiddirganj and Narayanganj.

Mission
Asia Jute is a full service vendor with strong vertically integrated production facilities as well as creative
and analytical capability which clearly sets us apart from most other South Asian countries.

Vision
To gain leadership in high value added jute product USA and Europe dominate this markets in high
quality.

Goal
Jute is the golden fiber of Bangladesh. It has a golden history. Bangladesh was the leading jute
producing country. Our Jute mills are closing & on the other side Indian jute mills are rising up.
In this situation, we are trying to create a market for jute products.

Core competency
Bangladesh is the largest jute producing country in the world but now it is at second position in the
world. The labor cost of Bangladesh is cheaper than other jute producing manufacturing countries in the
world.
 Raw materials
 Cheap labor

Company finance
Asia Jute is a sole proprietorship SME company .Initial investment is of Tk.50,000, fixed asset is of
Tk.32,06000 and current asset is of Tk49,62376 which is in total investment Tk.82,18,376. Our bank
loan is of Tk. 48,00000 and equity Tk 35,000000 totally Tk.83,00000.

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Product description
Jute Bags

Some manufactured jute bags are Jute Hand Bags, Jute Beach Bags, Jute Shopping Bags, Jute Sling Bags,
Jute Christmas Bags, Jute Sacking Bag, Jute Promotional Bags, Jute Bottle Bags, Jute Hessian Cloth Bags,
Jute Hydro-Carbon Free Bags and last but not the least Jute Food Grade Bags.

Jute Handicrafts
Some manufactured jute handicrafts are Notebook, Pen holder, Greeting cards, Photo frame, file folder,
Gift Box, Memo Box Tissue, Box, Slip Pad Holder, Jute Wall Hangings, Jute Coasters, Jute Table Mats Jute
Hammocks, Jute Lamp Shades and Jute Stationery.

Features of the products:

Important features of our Products are : Environment Friendly, 100% Biodegradable, reusable,
sustainable.
1. Jute Products are ethical and morally right, we should do bit to protect the environment
and help in not polluting the environment.
2. Jute products are made from 100% organic materials not using any artificial chemical.
3. Jute products are sustainable and are able to continue over a period of time causing less
damage to the environment.
4. Jute Products are able to decay naturally overtime consuming less cost and effort.

Export opportunity:

The high officials of the world are thinking about controlling global warming, environmental pollution
and how to live in a fresh and pollution free environment. Thinking on this matter many country have
already banned anti-environmental products like plastic bags and are highly encouraging eco-friendly
products like jute product. Since the last era our selected countries like France, Australia are highly
concerned about this issue.
In our country about 60% manufactures produce jute products like bags including big and small
company.

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Growth potential
This year product export from Bangladesh has increased by 5.83% from the last financial year according
to the report the of Bangladesh Export Promotion Bureau(BEPB). To make market grow sustainably and
boost respectively, Bangladesh Bank has created a refinance fund worth Tk.2.0 billion for the jute sector.
Some 16 banks have signed memorandum of understanding with the BB. Some Tk. 610 million has been
disbursed from the re-finance fund. Source: thefinancialexpress-bd.com

Product strategy
Our strategy is quite simple and easy to understand. The product strategy flow chart is shown below:

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Foreign market analysis
Rational for exporting
Bangladesh is one of the major producer and exporter of jute. We are second in position when it comes
to producing jute. On the other hand, we secure first position in respect to price of exporting raw jute
and jute product to all over the world. We have very potential for jute product. Jute product comes from
our traditional use and historical arts. Now it is very emerging and friendly product in most of the
countries.

Rational for targeted foreign market

Australia
We are considering Australia as a potential market. The reason are many. Some of them are: The rapid
increase of total consumer because of rise of multi-cultural immigrants, government policy against
synthetic/ polypropylene products, and the awareness of environmental role and impact of product
among local consumers, the presence of different segment of consumers.

France
Generally France is easily tradable country with strong economy. We consider this country as our target
market because they are highly encouraging ecofriendly product. In addition to discourage global
warming they banned plastic bags almost all over the country.
Present Scenario of Potential Countries

The comparable country profile for getting some basic information in a tabular format is given below
about the countries.
Country Australia France
Capital Sydney Paris
Political view parliamentary semi-presidential republic
democracy
Currency Australian Euros
dollar
Per capita GDP $65,400 $41,200
GDP(PPP) $1.489 trillion $2.647 trillion
Credit rating AAA with AA with negative outlook
stable outlook
Tariff GSP benefit GSP benefit
100% duty free 99.0% duty free coverage.
coverage.
Labor force 12.5 million 29.84 million
Labor force by agriculture: agriculture: 3%
occupation 3.6% industry: 21.3%
industry: 21.1% Services: 75.7% (2013 est.)
services: 75.3%

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 Gini- coefficient 31.3 33.1
Unemployment 6.2% 9.9%
Main industries mining, Machinery, chemicals, automobiles,
industrial and metallurgy, aircraft, electronics; textiles, food
transportation processing; tourism.
equipment,
food
processing,
chemicals, steel
Export goods Wheat, coal, Machinery and transportation equipment,
iron ore, gold, aircraft, plastics, chemicals, pharmaceutical
meat, wool, products, iron and steel, beverages.
alumina,
machinery and
transport
equipment.
Important Port Brisbane, Brest
Sydney
Organization WTO WTO
member
Ease-of-doing- 13 27
business rank

Industrial Profile
Jute Goods:
The table below shows production, local consumption, export and export earning of jute goods from FY
2003-04 to FY 2012-13:

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Export of Jute Goods by BJMC:
The table below shows export of jute goods by BJMC from FY 2003-04 to FY 2012-13:

All the above data show the increasing trend for jute and jute product. The last year growth is 5.83%
according to Ministry of Textile and Jute.

Competitor analysis

As a jute product producer we have to compete with other competitors of the world. Among them we
consider India, China, Myanmar, Nepal and Vietnam as our competitor.
When exporting from Bangladesh to Qatar, South Africa, Denmark and France we have to compete with
China, Indian Vietnams and Tanzania Companies.

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Market entry strategies
Form of operation
Asia jute is a small company. Its form of operation is team work base. They work as a team when they
place an order or deliver any product .The whole process is handled by the CEO.

Indirect / direct exporting

As a jute product vendor, Asia jute allows direct and indirect exporting.

E-commerce option
Asia jute has E-commerce option. Buyer can place order on their website easily from anywhere. They are
also available at alibaba.com, world leading B2B online market platform and many other sites.

Target customer profile

To select target customer of different reason different characteristic might be followed, for example
cheapest price with acceptable quality is the demand for American market, reasonable price with high
quality for European market and height price with zero defect quality for Japanize customer.

Pricing strategy
The strategy and method to determine the price of the product are given below:
 Raw Material Cost
 Inventory Management Cost
 Operating expenses
 Machine Maintenance Cost
 Overhead Cost
 Sales & Marketing cost
 Transportation cost
 Communication Cost

Pricing Packaging & Delivery:

Packaging & Packaging Detail 50/Pcs in a poly & 50/Pcs in a 7ply paper carton.
Delivery: Delivery Detail: Shipment will be made within 30 days after receiving Advance Payment. 
Container Loading: LCL or FCL on requirement of Buyer.
 Shipping By air, sea or combined transportation
Details:  Express via FEDEX,TNT,UPS,DHL,EMS,HK Post(As buyer request)
Tracking Number will offer you immediately after delivery.
Shipping cost depends on the shipping method, product quantity, weight, carton size and your
area.  

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International law
Language consideration
We consider English language to trade because it is an international language and is highly recognizable
for business purpose.

Contract terms and condition

We take approximately 7 to 10 days from the date of receipt of total specification / confirmed design
and accessories (if sent by client) for sample dispatch.
DHL/TNT/FEDEX normally deliver the sample within 4-5 days.

Sales agent / distribution agreement

Distribution channel of our product: Whole seller
Asia jute exports their product directly and indirectly. We offer different option for trading like direct
buyer, vendor, supplier and agents.
1. Perform Invoice Valid for 30 Days.
2. Production Lead Time Depends on order quantity.
3. Payment: 60% Advance with 100% Irrevocable L/C, or 100% Advance T/T
Export/ import regulation
1. Sample lead time: Usually within 3~7days
2. Our highly creative R&D team releases around 50-100 new bags designs every week to satisfy market
demands.
We need to charge the samples and shipping fee for the first cooperation. The sample fee will full return
when handbag bulk orders reach to minimum 5000pcs.
By air, sea or combined transportation:
1. Express via FEDEX, TNT, UPS, DHL, EMS, HKPost
2. Tracking Number will offer you immediately after delivery.
3. Shipping cost depends on the shipping method, product quantity, weight, carton size and your area.

Financial analysis
Facility and equipment requirement:
As jute is the golden fiber of Bangladesh and has a great potentiality, the government gives an
opportunity to incentive and train to develop the jute industry. Even after that we need more
technology support to make our product unique than other countries of the world.
Cost of goods sold
Costing
→ Jute Fabric Costing
→ Making Charged
→ Trimmings/Accessories (i.e. Cane Handle)
→ Profit

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Risk management
Country risk
France
French economic growth may lag in next two years as investment growth and external demand remain
lackluster. Meanwhile, meager wage growth and high unemployment mean that household
consumption - traditionally the key driver of the economy - will become less able to support growth.

Australia
1. It is dependent on Chinese demand and commodity prices.
2. Highly vulnerable changes in climate.
3. External vulnerabilities stem from chronic current account deficit and high external debt.
4. High household’s debt.

Commercial risk
France
As the economy is strong and the GDP rate is high the exporter company needs to be more careful
about the exchange. Moreover the product quality needed to be highly designed.

Australia
It is dependent on Chinese demand and commodity prices. Highly vulnerable to change in climate.
External vulnerabilities stem from chronic current account deficit and high external debt. High
household’s debt.

Currency risk
France
Exchange rates fluctuate due to many factors in France. Some may be strictly financial but political
events can also affect the exchange rates. The current GDP of France is disagreeing for some reason and
it may fluctuate the exchange rate so it is a risk for export in France.

Australia
Sudden changes in the currency markets could mean significant movements in the exchange rates
between different currencies. Adverse movements may have a consequent impact on bottom-line of
your intended export or import.

Market risk
France
France is a highly economically developed country. The current market of France is very competitive and
the exporting goods are needed to be more quality full or they won’t survive in the France market.

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Australia
Australia is the largest potential market in the world. In Australian market India and China export their
jute product and thus we have to compete with them and also face the political and economic barriers
of the market.

Political risk
France
In France their political situation is good enough for export though the GDP has decreased from last year
but the political overview of France is friendly enough for exporting. So export opportunity in France is
good then before all though the government has some strict rules and regulation.

Australia
Australia has a system of Government based on liberal democratic values of religious tolerance, freedom
of speech and association, and the rule of law. It is important to note that laws and regulatory practices
can change between Australia states, so businesses looking to operate in multiple Australian states
should check the regulations in each state.

External Assistant
WTO is the external assistant for our jute industry and our government takes foreign trade assist from
this organization mainly.

References
http://www.tradingeconomics.com/australia/rating
http://www.tradingeconomics.com/bangladesh/rating
http://www.bja.com.bd/index.php?option=com_content&view=article&id=173&Itemid=174
http://www.bja.com.bd/
http://data.worldbank.org/indicator/SI.POV.GINI
http://www.worldjute.com/jute_bangladesh/bangladesh_jute_news.html
http://asiajute.com/get-quote/
http://motj.portal.gov.bd/sites/default/files/files/motj.portal.gov.bd/news/c512d929_ef14_45aa_8bf5_
8ac71599d922/Jute%20Policy-19-04-16.pdf

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