WTO AND INTERNATIONAL BUSINESS

Qurat-ul-ain Siddiqi
M N d tA i
Rimsha Tariq

Maheen Ejaz

Huma Bashir

WTO And International Business

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Executive Summary 3
Our products Offering 3
VISION: 5
MISSION: 5
GEOGRAPHICAL CONSIDERATIONS: 5
CULTURAL PERSPECTIVE 6
Political and Legal requirements 7
7
8
8
8
9
9
Human resource management 11
Supply chain management 11
12
Economic Considerations 15
MARKETING PLAN: 16
17
Sustainability and Expansion Strategy 21
22

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Espresso Yourself will a standard and registered mobile coffee business that will be located in the
busiest roads of Pakistan. We have to secure the necessary street vending / mobile truck permit
that will enable us to operate all around Pakistan. We have plans to sell our franchise and operate
all across the Pakistan.It will be involved in the preparation and sale of a wide varieties of coffee
beverages to our customers via our mobile truck that can be found in major locations all across
Pakistan.

We have, home delivery option, self – service options for our customers,.Much more than
retailing well – prepared coffee via our mobile coffee trucks, our customer care is going to be
second to none in the whole of Pakistan. We know that our customers are the main reason that
why we are in business which is why we will have go to the extra mile to get them satisfied when
they purchase coffee and drinks from us and also to become our loyal customers and
ambassadors.

At Espresso Yourself, our client’s best interest come first, and everything we do will be guided by
our values and professional ethics. We will ensure that we hold ourselves accountable to the
highest standards by delivering the excellent as well se neat jobs and also meeting the need of
clients precisely and completely.

Our product and service offerings are listed below:

Freshly roasted organic Fair Trade espresso, ground, and pressed to order.
Hot or Iced Coffee
Latte
Cappuccino
Mocha
White Mocha
Caramel Macchiato

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Chai
Hot Chocolate
Flavors
Vanilla, Hazelnut, Caramel, Brown Sugar Cinnamon, Sugar Free Vanilla & Hazelnut, Dark
Chocolate, & White Chocolate.

100% fruit, blended with ice and water. Try blending with milk of choice for a thicker creamier
smoothie.
Strawberry & Banana
Pineapple & Banana
Peach Strawberry
Peach Mango
Peaches & Cream
Strawberries & Cream

We are serving high quality beverages at affordable prices through our mobile outlets.

To provide our customers healthy and delicious beverages which will not cost them much and
provide our best services so that they can come again and enjoy their free time at our places.

An espresso truck is a mobile food business concept where a large vehicle is equipped with a

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kitchen to cook and serve food. Location is a huge factor. The truck have to go spot where
customers can find it with some regularity and predictability. The Espresso truck will be
well-known throughout Pakistan instead of only in the metropolitan cities.So, we are planning to
establish in Pakistan and explore possibilities of opening up in different cities. Our intention is to
be funny, intelligent and insightful; however, there has to be some depth and there is a level of
sophistication that is important to us. The invention of this espresso truck is an aspirational
brand. And we want our customers to see the brand as their peer. We import the same coffee
beans from other countries. The difference is our baristas – the training and the knowledge we
have about what goes into making a good cup of coffee. Our strategy is to stay away from malls.
The mobile vehicles will upload their location online, so that nearby customers (and even those
stuck in traffic) can easily get cup of coffee and juices on the way home. Benefit of our truck is
the greater mobility to areas where the demand for coffee is present but there are barely any
restaurants to cater to that clientele. Quality remains the sole focus of the espresso team. So
instead of expanding our menu further we intend to stay in the fast making coffee department and
to perfect it.Our target region is Islamabad where population is nearly 2 million and 40,000 to
50,000 people from different parts of country visit Islamabad.

In demographic segmentation we are targeting people of age 8 to 65years. Climate is rainy,

humid, hot and temperate in Islamabad.Class of middle and upper middle class. Our Main focus
is on youths to entertain them according to their interests such as classical music, logo of their
names on cup etc. We will move to number of places like Parks, Picnic spots, Tourist Areas and
the prime location on weekends would be Lake Viewpark, Zoo, Daman-e-koh and Trails etc.

Coffee is the common man’s gold and, like gold, it brings to every person the feeling of luxury
and nobility.’ This charming description of coffee by the great Muslim scholar Shaikh
Abd-al-Kadir is as apt today as it was when coffee was first discovered in the late 14th century.
Pakistan, a tea-loving country traditionally, is gladly embracing the strong aroma, bold colour
and rich taste of coffee. Younger generation in Pakistan definitely prefers coffee over tea. This is
not only because coffee is more hip than tea but also because coffee is more helpful in keeping
energy levels going than tea ever has been.However with time we have seen Pakistan opening its

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doors to the coffee culture. Coffee culture has been so fast in spreading its wings. The coffee
culture in Pakistan with the launch of Espresso in 2004 in Karachi. Over the years, coffee
transformed from a bitter beverage consumed mainly by the elite and expats to a beverage the
youth have come to brand cool. Pakistanis, however, like their coffee; milky, creamy, flavored
and sweet — Cappuccino, Latte or Mocha mostly. The Espresso truck boasts of the latest
machines, highly trained staff and certified baristas. We offers a variety of exclusive blends,
espresso-based beverages and iced drinks, sweet treats and fine beverages. Hot chocolates and
frozen yogurt are among the favorites besides coffee. The truck also offers different varieties of
tea. White chocolate and latte are among the favorites of Pakistanis whereas espresso is usually
preferred by foreigners who are fond of the place as it offers a huge variety of black coffee found
at no other place in the city. There is a now a consensus that coffee is more than just a drink: It’s
a culture, an art, and a passion.

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Most of the business activities take place within the country. Making, buying, and selling goods
and services inside the country is called domestic business. And international business includes
all the activities needed to create, ship and sell goods and services across the nation. International
business allow us to purchase famous items made in other countries.

Most of the countries using this concept of espresso truck. The most popular espresso truck is in
Chelsea. In the espressotruck they serve the all types of coffee flavors to their customer and these
days this concept is going popular within all countries. Same like espresso truck there is a food
truck available in Islamabad, Pakistan but there is no espresso truck in which all kind of coffees
available. So we are starting a business of espresso truck in which we provide Espresso, Double
Espresso ,Short Macchiato, Cappuccino, Chai, and all ther flavor of coffee which want customer.

And in addition our espresso truck is seasonal we are providing juices and smoothies and
summers. Our espresso truck is the first coffee truck in the Pakistan. And we are going to start it
with the one espresso truck and after some time when our business grow when expend it with
more espresso trucks in different countries.

Before starting a business in any country, investigate transportation, utilities, political and
economic stability of that country. We are starting our business in Pakistan so we consider all the
economic and political conditions of Pakistan.

There are four types of governments exist. Oligarchy is a style of government in which only few
people have power. Aristocracy is another style of government in which power and influence held
by a minority of peoples. Monarchy is the type of government in which only one ruler that is the
king or queen. Democracy is the type of government in which power is held by the people. Many
democracies use the system of voting in which the people choose the elected representatives to
serve in government. And Pakistan is under the democracy government.

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Political system is the set of formal legal institutions that constitute a government or a state. In
Pakistan The President acts as the ceremonial figurehead while the people-electedPrime Minister
acts as the chief executive (of the executive branch) and is responsible for running the federal
government. Political situation effect on the businesses which are operating in the country. If the
government of Pakistan going to change the law and we will have to pay taxes on revenue
regardless of whether our profitable. In this case it will effect on our profit. So from the current
situation of Pakistani politics is favorable of because the new government of Pakistan is
appreciating new peoples who want to start their own businesses in Pakistan. It will help Pakistan
in increasing its GNP.

Not everyone have an ability to run a business it requires technical capabilities that not everyone
possesses. There is no competition exist in market of our product due to this huge opportunities
its gives in rise the large profit margin. Secondly, for some business to be registered and become
operative, certain government licenses are required.

There are many license and permits which are necessary for all the business to get these license
before starting their business in any country or city.

We may need to get a permit from our fire department if our business uses any flammable
materials or if our premises will be open to the public. In some cities, you have to get this permit
before you open for business. Other areas don't require permits but simply schedule periodic
inspections of your business to see if you meet fire safety regulations. If you don't, they'll issue a
citation. Businesses such as restaurants, retirement homes, day-care centers and anywhere else
that lots of people congregate are subject to especially close and frequent scrutiny by the fire
department.

So in the case of our business we also need this license.

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Now in many countries they have their own department that work to control air and water
pollution.If you burn any materials, discharge anything into the sewers or waterways, or use
products that produce gas (such as paint sprayers), you may have to get a special permit from this
department that is exist in your city or county.In our business we don’t need this kind of license.

Some cities have sign ordinances that restrict the size, location and sometimes the lighting and
type of sign you can use outside your business. To avoid costly mistakes, check regulations and
secure the written approval of your landlord you must need the sign permit.

We also need the sign permit for our business.

Few types of businesses do require federal licensing, including meat processors, radio and TV
stations, and investment advisory services.

We don’t need this federal license.

Sales taxes vary by state and are imposed at the retail level. It's important to know the rules in
the states and localities where you operate your business because if you're a retailer, you must
collect state sales tax on each sale you make. And we don’t this license for our espresso truck.

Producing safe food is essential for every business's success, as our customers will expect that
our food products are safe. We must be able to verify the safety and quality of our products to
export markets. So we also need this license.

Every County governments often require essentially the same types of permits and licenses as
cities. If your business is outside any city or town's jurisdiction, these permits apply to you.

We need the country permit because we are launching an international business in our country

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that is not previously exist in Pakistan

The business operations will be run by all the five partners but for providing actual taste of
Starbucks to people we will contact some ex-employees of Starbucks for sharing some
scrumptious coffee and beverages recipe with us and if they are willing they are most welcome to
serve people with us. For serving customers swiftly and efficiently we recruit 5 to 10 people
initially for a single truck. One of whom is a driver who drives efficiently and carefully, and rest
of people will serve people. Two of them are coffee or beverages makers one assists them and
two employee deals with customers for taking orders. Starting pay for chefs will be 5000 to 8000.
For assistant it will be 3000 to 5000 and waiters will be paid on daily wages. For removing
boredom, we shuffle the duty timings of employees. One of us will be there every time for
checking whether business operations are running smoothly.

Supply chain management (SCM) is the broad range of activities required to plan, control and
execute a product's flow, from acquiring raw materials and production through distribution to the
final customer, in the most streamlined and cost-effective way possible. So, in our business our
coffee and beverages ingredient would be shipped by online shopping store. They
have a flat shipping fee of AED 25 on all orders. However, we wouldn’t pay shipping cost
because our order would be in bulk, so this cost will be exempt. Desert cart have a policy if order
exceeds AED 250, shipping is on them which cut our cost. They have express delivery facility too
but with additional charges which helps if we need stock immediately. Rest of material like
coffee grinding machines, juicer blenders, cream, sugar cups straws will be bought locally from
metro cash and carry. We initially keep all inventory at shop sort of warehouse where one of us is
responsible for securing and maintaining inventory. On initial stages of our business we park our
truck there too which is monitored by a security guard later, on business expansion we will buy
land and build our own storage house and parking area and hire more trusted employee for
inventory supervision. Production of coffee or beverages will be done on spot infront of
customers. So that customer will be no more concerned about hygiene issues and prefer to drink
again.

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Truck cost 1,300,000 Olx (malircantt)

Importedcoffee 150,000
beans(25000*6)
Expresso roast whole bean
coffee(1Lb)

131aed=RS4060

Deep freezer 35,050

Fridge 35,000

Solar panel 17,550

Solar Cell *PID

RESISTENT ,Low-light
Performance Severe
Weather
Resilience,Durability
against extreme
environmental conditions

Wiring of electricity 5,000

Small air cooler 4000

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Water Dispencer 14,000

Petrol generator 29,897

Sound Proof Canopy
Enclosed Generator

Truck decoration 5000

Coffee Machine 50,000

Cups (499*365) 182,135 100 cups of Rs 499 from

whole seller

Straws (700*365) 255,500 100Pcs of 700 Flexible

Silicone Colorful Straws for
Drinks

Auto insurance 400,000

Advertising cost 600,000

TOTAL 3,083,132

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ESTIMATED MONTHLY OVERHEAD EXPENSES

Accounts Amount in Rs

Salary of 5 person 50,000

Electricity charges 7000

Fuel expense 5000 daily 150,000

Water charges 1500

Disposable gloves,caps,accessories,tissue 3,000

rolls

Gas expense 2,000

Maintenance expense 2,000

Total 215,500

ESTABLISHMENT COST 2,483,132

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ESTIMATED MONTHLY OVERHEAD 215,500*12=2,586,000

EXPESES

Total 5,669,132

According to Business Insider, Coffee is the second most sought-after trade goods within the
entire world, with an industry that is value over $100 billion across the world.

The beverage industry in Pakistan has become visible as a progressive sector over the years. As
per the most recent report by Regarding one hundred seventy units are operative across
the country in this particular sector, that is contributing towards growth in upstream and
downstream industries. A comprehensive categorization of the beverage industry would include
divisions such as; aerated drinks, juices, milk based drinks, energy and sports drinks, tea, and
coffee and also, bottled and bulk water as well. In Pakistan, there are different players that
dominate in different categories, based on their specialization and the target audience.

As far as coffee in concerned, it is considered to be more well liked among the urban population
and its consumption is attributed with the dynamical preferences among the masses, based upon
the social values placed on the coffee. The most prominent brand of coffee in Pakistan is
Nescafe, which is the oldest coffee brand in the country. No major innovations have been
introduced in this specific market.

The beverage industry in Pakistan incorporates a ton of potential and space for growth and
development. It is one of the few sectors that have shown measurable growth and alsothe
progressive augmentation in consumption is more probably to continue in future as well and will
certainly benefit in the long run. Also, flourishing consumerism and establishment of stronger
brands with unique and superior products has contributed towards the beverage industry’s
growth. There exist heaps of opportunities for new entrants and native players to take advantage
of the untapped facets of the market, for example the energy drink market or juices, by

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strategically positioning their products and by resorting to unique and effective marketing
strategies. Coffee business remains largely unexploited as well, which is dominated by only one.
Hence, new entrants can penetrate any of these segments which have nascent demand or few
competitors.

However, there do exist some serious threats to this industry as well. According to a recent report
on Pakistani Food and Beverage Industry, the two main threats to this industry are; political
instability and the continuous militant activity, that have the tendency to impede foreign direct
investment in this industry. This report further emphasized that Pakistan remains one of the most
potentially profitable markets . Another major hazard is that the increasing rate of inflation,
which was reportedly 9.20% in December 2017, that ultimately translates into depreciated
purchasing power of the household that may lower consumption of certain drinks.

⦁ The organization belongs to the Hot Drinks sector in Pakistan which includes Coffee
houses, Bistro’s etc which is a wing of the restaurant industry. With tourism and hoteling
increasing globally, some effects are witnessed in the Pakistani market as well and this
probably means that the demands are met through the increased businesses in the industry
sector to cater these needs. Islamabad, Lahore and Karachi has been brimming up with
coffee houses and dine in places that take a leap forward to cater the needs of the
consumers to provide them with a relaxing cup of coffee to make the evening relaxing
and delightful.
⦁ In last few years, demand for juices in Pakistan has been increase. Weather conditions is a
main factor for this demand elevation. They are included in daily food that’s why to
achieve the demand level juices are being imported. A lot of the investment can be save
by manufacturing them locally. For preserving juices, he suggested different methods
such as heating, chilling, radiation treatment as well as use of chemical preservers
(Murtazaet al; 2016)

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8 to 65 years
Rs 5000 to Rs 150000
Middle class, Upper middle class and upper
class

We are in business to prepare and serve a wide variety of coffee and juices
through our mobile coffee truck to the following groups of people;

⦁ Event Planners

⦁ Corporate Organizations

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⦁ Households

⦁ Schools

⦁ Corporate Executives

⦁ Business People

⦁ Sports Men and Women

⦁ Students

⦁ Tourists

When it comes to fixing prices for the varied ranges of coffees and drinks we
sell, we are going to ensure that we set price in line with what is available in
the coffee and beverage industry. The bottom line is that our customers will
derive real satisfaction when the consume our coffee and juices
We also have plans in place to discount our coffees once in a while so in
order to reward our loyal customers with free cups of coffees from time to
time.

We will adopt the following sales and marketing approach to win customers
over;
⦁ Open our mobile coffee car business in a grand style with a party for
all.
⦁ Introduce our mobile coffee business by sending introductory letters
with our brochures to corporate organizations, schools, event
planners, households.
⦁ Ensure that we have a wide variety of coffee and juices at all times in
our mobile carts.
⦁ Make use of attractive hand bills to create awareness and also to give
direction to our mobile coffee carts will pass through and be
positioned per time.

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⦁ Create a loyalty plan that will enable us reward our regular customers
⦁ Engage on road shows within our neighborhood to create awareness
for our mobile coffee cart business.

There are number of café, canteens, bakeries, stalls operating throughout the
country but the competitive advantage/edge we will get will be the offering
of Diverse Menu with the best possible hygienic conditions, Lowest price
and courteous services and providing ease of location.

There will be number of ways to promote our business. For this purpose
Amount of RS. 50000 is allocated in establishment cost which include the
following:
⦁ An website
⦁ An official facebook page
⦁ An official twitter account
⦁ Advertisment through pena flexes
⦁ Banners at different prime locations
⦁ Brochures, leaflets and SMS advertisements

Taking the average of 70 customers per day, monthly forecast will be

70*150=10500, 10500*30=31,5000,
1st year total estimated sales will be RS 3,780,000

The future of a business lies in the numbers of loyal customers that they have and the capacity
and competence of the employees and also on their investment strategy and the business
structure. If all of these factors are missing from a business or a (company), then it won’t be too
long before the business close shop.

One of our major goals of starting our coffee t to build a business that will survive off its own

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cash flow without the need for injecting finance from external sources once the business is
officially running. We know that one of the ways of getting approval and winning customers over
is to retail our coffees and drinks a little bit cheaper than what is obtainable in the market and we
are very well prepared to survive on lower profit margin for a while in order to attract our
customer.

It will make sure that the right foundation, structures and processes are put in place to ensure that
our staff welfare are well taken of. Our company’s corporate culture is designed in order to drive our
business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, the profit-sharing arrangement will be made available to all our management staff
and it will be based on their performance for a period of three years or more. We know that if that is put
in place, then we will be able to successfully hire and retain the best hands so we can get in the industry;
Hence they will be more committed to help us build the business of our dreams.

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https://www.thebalancesmb.com/getting-a-business-license-or-permit-398914
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Giang, V. (2018, December 13). The Economics of Running a Food Truck. Retrieved from
https://www.fundera.com/blog/the-economics-of-running-a-food-truck
Khan, J.Q. (2009). Pakistan beverages industry. Balochistan Times, 28-06- 2009, Pakistan.

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Ahmad, N. (2003). Beverages industry: an analysis. . Accessed on 14-12-2010.

Business Licenses and Permits for Business Startup. (2018). Retrieved from
https://www.thebalancesmb.com/business-licenses-and-permits-398925
(2018). Retrieved from https://www.quora.com/How-is-the-political-situation-in-Pakistan
(2018). Retrieved from https://www.desertcart.ae/

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