INB 301

“Internationalization Of Dynasty Group”

Group 7, Team ‘ Maroon’
Course title: International Business Course

Course ID : INB 301

Section: 4

Date of submission: 28/09/2020

Submitted to : S M Yusuf Mallick

Submitted by:

Mashiat Kabir Muskan 1830901

Pushpita Tanisha 1721825

Paul Micky D Costa 1830486

Imtiaz Hridoy 1811181

Gazi Imrul 1722220

Contribution Table
ID NAMES CONTRIBUTIONS

 Letter of transmittal
 Acknowledgment
1830901 Mashiat Kabir Muskan  Which country we are exporting to
and why?
 Conclusion

 Executive Summary
1721825 Pushpita Tanisha  Country Analysis

 Company Description
 History
 Goals and objectives
 Core competency
1830486 Paul Mickey D Costa  Management
 Export Item
 Company finances
 Product Description
 Export Opportunity
 Growth potential

 Market Entry Mode Analysis

1811181 Imtiaz Hridoy

 Choosing the suitable strategy of

1722220 Gazi Imrul
internationalization
 LETTER OF TRANSMITTAL

28th September, 2020

To,

S.M Yusuf Mallick

Lecturer

Department of International Business

School of Business

Independent University, Bangladesh

Subject: Submission of report

Respected Faculty,

It is a great pleasure for us to submit you our report on “Internationalize Dynasty Group
in the foreign market”. The purpose of the report was how we could export our product to
another country and its strategies.We have tried our level best to follow the guidelines
provided by you and we have applied relevant concepts that we have learned throughout our
course. It is worth mentioning that, we have enjoyed the whole event during preparing this
report. So it became an extremely interesting experience for us. We are very glad that you
have given us the opportunity and all the support to prepare this report from which we could
learn so many things.

We hope you find this report satisfactory.

Thank you

Sincerely yours

On behalf of the whole group

ACKNOWLEDGEMENT:
First, we want to pay our gratitude to the almighty Allah for the preparation of the report
successfully.

Then, we would like to thank Mr. Baivab Titam Chowdhury, Financial Adviser of Dynasty
Group, for giving us his valuable time and cooperating with us by providing us with
important information regarding the company ‘ Dynasty Group’

Lastly, we would like to thank our respected course instructor S M Yusuf Mallick sir to
give us the opportunity to do this work as well as for giving an overall concept on the
process of preparation. He helped us with proper instruction and theoretical knowledge for
this report. So with due respect we express our gratitude to him

.It was a great effort to do this report and we hope the effort will work out.
TABLE OF CONTENTS:
Cover Page

Contribution table

Letter of Transmittal

Acknowledgment

Executive Summary

Company Overview

 History
 Goals and objectives
 Core competency
 Management
 Export Item
 Company finances
 Product Description
 Export Opportunity
 Growth potential

Country Analysis

Country choosing And reasons

Market Entry Mode Analysis

Suitable Strategy for Internationalization

Conclusion

References
EXECUTIVE SUMMARY :
We were assigned to conduct primary and secondary research along with country analysis on
the export plan of any organization in Bangladesh and we chose Dynasty Group which is one
of the leading sweater manufacturing industry in Bangladesh.
This report provides a complete in-depth analysis of Dynasty Group and which country will
be the most suitable for exporting its product among the 3 chosen countries being Singapore,
Australia and Canada. The company is going through continuous growth from past 25 years
through its operation but however can expand into the global market by exporting its
product. Exporting includes a thorough research on themselves to find out whether it’s a
good choice to export or not. For all the three countries we went through cultural,
economical, political, and legal environment. We also selected a marketing strategy to enter
the best possible country among all three by providing comparison tools to show the risk-
taking and market return opportunities. To have a more in depth understanding we have also
mentioned the exchange rates of the chosen countries.
COMPANY DESCRIPTION :

Dynasty Group is one of the leading Sweater Manufacturing Industry in Bangladesh under
the leadership of Mr. Jahid Akbar Chowdhury, Chairman. This Group has started its
production since 1995. In the year 2004 the units of this group accommodated in an
independent campus. The building of the industry constructed with all facilities as per code
of conduct of International Standard. The location of the Industry is about 35 kilometers
from Dhaka City . It is a journey of 40 minutes from Pan Pacific Sonargaon Dhaka by drive.
Business customers have desperate need‐from yarn contents to complete design together
with competitive price. Dynasty meets these diverse requirements with a unique combination
of sourcing, merchandising, leading‐edge technology, and marketing experience and best in
class management team. Today, Dynasty Group is One of Bangladesh’s leading sweater
exporters & its strength as an innovator along with state‐of‐the art production facilities put
the organization in ideal position to direct the future of sweater manufacturing and exporting
in the region. Business customers benefit from company's extensive integration, expertise
and more than seven years experience in sweater manufacturing. The chairman through his
vision and strong sense of commitment has built a team of experts who are relentlessly
working for the organizational growth and prosperity.

HISTORY

The group was founded by its Chairman Mr. Jahid Akbar Chowdhury in 1995 after quitting
his job as a Bangladesh Police Officer. A former senior police officer now Chairman of
Dynasty Group has entered into the business by establishing a small size of sweater knitting
projects namely Dynasty Knit Fashion Ltd. in the year after voluntary retirement from
government job. Mr. Jahid Akbar Chowdhury’s father’s name is Late Ali Ahmed
Chowdhury and mother’s name is Late Afazunnesa. Born on March 1, 1948 at village
Khandakia, Chakaripara (Chowdhury Bari) under Hathazari upazilla of Chittagong district.
GOALS AND OBJECTIVES

The group’s goals and objectives has always been about being a quality oriented
organization and hence this has led to it being the first sweater supplier for H & M from
Bangladesh due to its high prioritization of quality standards, this has been very crucial and
the driving factor for their success and business sustainability which has led to their
continuous orders and business expansion from abroad.

CORE COMPETENCY

This group comprised with three units namely : Dynasty Knit Fashions Ltd. Millennium
Sweater Ltd. Dynasty Sweater (BD) Ltd. All this three units Dynasty Knit Fashions Ltd.,
Millennium Sweater Ltd.& Dynasty Sweater (BD) Ltd. are producing fine knit sweaters 1238
Manual, 428 jacquard machines. Now its production capacity is 3,63,792 pcs per month. In
comparison with the other giants in the RMG sector the organization believes that they are
better suited to be fully focused on manufacturing sweaters and especially general
cardigans. It’s more specific competencies would that they are the best manufactures of 12
gauges sweaters in Bangladesh. In order to maintain this core competency Dynasty Group
has built a state-of-the-art production facilities with efficient and modern machineries such
as 428 jacquard machines, 1238 manual machines and with a production capacity of
3,63,792 pcs of products per month.

MANAGEMENT

Primarily it’s a family run business, so the management board consists of Mr. Jahid Akbar
Chowdhury as its Chairman, his daughter Ms. Zohara Farjana Ferdousy as the Finance
Director, his elder son Mr. Jobair Hasan Chowdhury as the Managing Director and his
younger son Mr.Baivan Titam Chowdhury as an Finance Advisor with contribution to the
operations as well, and lastly his wife Mrs. Chowdhury as an executive director. By the late
2016 the group appointed few more board members from related business sectors such as
RMG and Pharmaceuticals, three new directors from OPEX SINHA which is a RMG sector
business. And one director from ACME Pharmaceuticals who is looking after the
procurement of all the chemicals needed in Dynasty’s production.

EXPORT TEAM

The export team consists of 7 people. One being the head of the department and just below
him is the manager for the commercial department under whom there are 5 people; 3 for
export and 2 for the import of raw materials, chemicals, machineries and its parts and
anything that is needed for Dynasty’s business operations. The team’s main work is the
dealing with Letter of Credit (L/C).
COMPANY FINANCES

As with any other company, Dynasty Group’s finances are kept confidential but we were
able to find out that during the company’s inception it’s founder Mr. Jihad Akbar
Chowdhury started the company by taking commercial loans from banks such as Janata
Bank.

PRODUCT DESCRIPTION

Dynasty group mainly produce 12 gauge sweater and cardigan .They are the first sweater
supplier for H&M from Bangladesh.

EXPORT OPPORTUNITY

Before 10- 15 years the Bangladesh was thriving in the international market for RMG, there
were less competitor in the RMG market but now there are more foreign competitors for the
North American market like- Myanmar, Thailand and India. So as there are more competitor
there are less export opportunity, but Dynasty Group has identified and capitalized on the
niche market for large retailers like – Primark, LD and have been supplying them with
generic cardigans for them to display on their stores. Their reason for choosing retailers such
as Primark is because of the volume of order as they have more number of stores.
GROWTH POTENTIAL

There is a good potential for growth but the access to new markets such as Brazil, Argentina
and Mexico at the moment is limited because they do not have any representative office or
sourcing agent in Bangladesh, as that is the general medium of doing business at the current
market scenario. However, this gap of communication has significantly reduced since the
past few years, and recently they have been able to send few shipments to Brazil and
Argentina, though in a very low quantity but it is increasing day by day.
Country Analysis:
So for our firm the three countries we are analyzing are Canada, Singapore and Australia.
Down below are the evaluation of these three countries:

■ CANADA
Language: The official language of Canada is English. It is spoken by 56% of Canadians.
French is also considered to be a major language in Canada.
Religion: Canada supports freedom of religion that is why it has many diverse religions and
beliefs. It is now a secular state and many Canadians think religion is unimportant in their
everyday life. But Christianity used to be dominant religion.
Population and National Resources: By total area (including its waters), Canada is the
second largest country in the world, after Russia. In 2019, Canada was stated to have 37.59
million. The 2019 population density in Canada is 4 people per km2 (11 people per m2),
calculated on a total land area of 9,093,510 km2 (3,511,022 sq. mile).
Much of Northern Canada is covered by ice and permafrost. 42 percent of the land acreage is
covered by forests (approximately 8 % of the world's forested land). Canada has over
2,000,000 lakes which is more than any other country, containing much of the world's fresh
water. There are also fresh-water glaciers in the Canadian Rockies, the Coast mountain, and
the Arctic Cordillera. Canada is very active geologically.
GNP & GDP: The economy of Canada is a highly developed market economy. It is the 10th
largest GDP by nominal and 16th largest GDP by PPP in the world. As with other developed
nations, the country's economy is dominated by the service industry which employs about
three quarters of Canadians. Canada has the third highest total estimated value of natural
resources, valued at US$33.2 trillion in 2019. It has the world's third largest proven
petroleum reserves and is the fourth largest exporter of petroleum. It is also the fourth largest
exporter of natural gas. Canada is considered an "energy superpower" due to its abundant
natural resources and a small population of 37 million inhabitants relative to its land area.
The service sector in Canada is vast and multifaceted, employing about three quarters of
Canadians and accounting for 70% of GDP. The largest employer is the retail sector,
employing almost 12% of Canadians.
Culture:
Power Distance: Canada's Power Distance (PDI) is relatively low, with an index of 39,
compared to a world average of 55. This is indicative of a greater equality between societal
levels, including government, organizations, and even within families. This orientation
reinforces a cooperative interaction across power levels and creates a more stable cultural
environment. It is customary for managers and staff members to consult one another and to
share information freely. With respect to communication, Canadians value a straightforward
exchange of information.
Individualism: The fundamental issue addressed by this dimension is the degree of
interdependence a society maintains among its members. It has to do with whether people´s
self-image is defined in terms of “I” or “We”. Canada scores 80 on this dimension (its
highest dimension score) and can be characterized as an individualist culture. Similar to its
American neighbor to the south, this translates into a loosely knit society in which the
expectation is that people look after themselves and their immediate families. Similarly, in
the business world, employees are expected to be self-reliant and display initiative. Also,
within the exchange-based world of work, hiring and promotion decisions are based on merit
or evidence of what one has done or can do.
Masculinity: A high score (Masculine) on this dimension indicates that the society will be
driven by competition, achievement, and success with success being defined by the “winner”
or “best-in-the-field.” This value system starts in school and continues throughout one’s life
– both in work and leisure pursuits. Canada scores 52 on this dimension and can be
characterized as a moderately “Masculine” society. While Canadians strive to attain high
standards of performance in both work and play (sports), the overall cultural tone is more
subdued with respect to achievement, success and winning, when compared to the USA.
Uncertainty Avoidance: The dimension of uncertainty avoidance has to do with the way
that a society deals with the fact that the future can never be known: should we try to control
the future or just let it happen? This ambiguity brings with anxiety and different cultures
have learnt to deal with this anxiety in different ways. The extent to which the members of a
culture feel threatened by ambiguous or unknown situations and have created beliefs and
institutions that try to avoid these are reflected in the score on Uncertainty Avoidance. The
Canadian score on this dimension is 48 and Canadian culture is more “uncertainty
accepting.” This is indicative of the easy acceptance of new ideas, innovative products and a
willingness to try something new or different, whether it pertains to technology, business
practices, or consumer products.
Economic Environment:
The economy of Canada is a highly developed market economy. As with other developed
nations, the country's economy is dominated by the service industry which employs about
three quarters of Canadians. In 2018, Canadian trade in goods and services reached CA$1.5
trillion. Canada’s exports totaled over CA$585 billion, while its imported goods were worth
over CA$607 billion, of which approximately CA$391 billion originated from the United
States, CA$216 billion from non-U.S. sources. In 2018, Canada had a trade deficit in goods
of CA$22 billion and a trade deficit in services of CA$25 billion. Canada is unusual among
developed countries in the importance of the primary sector, with the logging and oil
industries being two of Canada's most important. Canada also has a sizable manufacturing
sector, based in Central Canada, with the automobile industry and aircraft industry being
especially important. With the world's longest coastline, Canada has the 8th largest
commercial fishing and seafood industry in the world. Canada is one of the global leaders of
the entertainment software industry. It is a member of the APEC, G7, G20, OECD and
WTO, and was formerly a member of NAFTA until the USMCA came into force in 2020.
According to the OECD's annual economic survey of Canada in June 2012, Canada has
experienced weak growth of multi-factor productivity (MFP) and has been declining further
since 2002. One of the ways MFP growth is raised is by boosting innovation and Canada's
innovation indicators such as business R&D and patenting rates were poor. Raising MFP
growth is "needed to sustain rising living standards, especially as the population ages".
Political and Legal Environment:
Canada’s political system is a parliamentary democracy, with its own social and political
institutions. The economy is closely linked to that of the United States, but Canada has its
own economic institutions. Canada also has a well-developed social safety-net to protect
citizens from financial inequities. In 2013 Canada was ranked in the 84th percentile for
Political Stability and Absence of Violence/Terrorism and in the 97th percentile for
Government Effectiveness according to The Worldwide Governance Indicators (WGI)
project.
The legal system of Canada is rooted in the English common law system, inherited from its
period as a colony of the British Empire. The legal system is bi-jurisdictional, as the
responsibilities of public (including criminal) and private law are separated and exercised
exclusively by Parliament and the provinces respectively. Quebec, however, still retains a
civil system for issues of private law (as this domain falls within the exclusive jurisdiction of
the provinces). Both legal systems are subject to the Constitution of Canada. The federal
government has jurisdiction over certain domains which are regulated exclusively by
Parliament, as well as all matters and disputes between provinces. These generally include
interprovincial transport (rail, air and marine transport) as well as interprovincial trade and
commerce.
Tariffs:
• The New West Partnership is set of agreements that economically integrate the
Canadian provinces of Alberta, British Columbia, Saskatchewan and Manitoba. They
were created on April 30, 2010.
It is composed of:
• the New West Partnership Trade Agreement (NWPTA)
• the New West Partnership International Cooperation Agreement
• the New West Partnership Innovation Agreement
• The Free Trade Area of the Americas (FTAA) was a proposed agreement to eliminate
or reduce the trade barriers among all countries in the Americas, excluding Cuba. Free
Trade Area of the Americas (FTAA), proposed free-trade zone encompassing all of
the Americas. Negotiations to establish the Free Trade Area of the Americas (FTAA)
ended in failure, however, the state parties having been unable to reach an agreement
by the 2005 deadline they had set. The FTAA was to include all countries of North
America and South America and of the Caribbean with the exception of Cuba.
Quotas: A TRQ is a mechanism that allows a set amount of specific products to be imported
at a low or zero rate of duty. In Canada, this is commonly referred to as the “within access
commitment.” TRQs are established under trade agreements and are available to the parties
to such agreements. Canada replaced its existing cheese import quota with a TRQ in 1995
under the World Trade Organization (WTO). The “within access commitment” for Canada’s
WTO cheese TRQ is 20,411,866 kg, which may be imported at a rate of duty that ranges,
depending on the country from where the product is imported, from 0% duty up to 3.32 cents
per kilogram. The rate of duty for “over access commitment” is 245.5% and not less than
$3.53 to $5.78 per kilogram and is applied regardless of the country from where the product
is imported.
International Integration: The Amalgamated Transit Union (ATU) is a labor organization
in the United States and Canada that represents employees in the public transit industry.
Established in 1892 as the Amalgamated Association of Street Railway Employees of
America, the union was centered primarily in the Eastern United States; today, ATU has
over 200,000 members throughout the United States and Canada.
The Seafarers International Union of Canada is a Canadian labor union of mariners working
aboard Canadian flag vessels. SIU Canada is an affiliate union of Seafarers International
Union.
The Confederation of Canadian Unions, or CCU (in French "la Confédération des
syndicates Canadians" or CSC) is a national trade union center, a central labor body of
independent unions in Canada.
Canada has been an active participant in many WTO disputes, including as a complainant,
respondent or third party. Participation in a WTO dispute settlement is a key way to help
ensure the rights of Canadian traders are protected and help maintain the integrity of the
dispute-settlement system as a whole. In 2014, Canada joined a number of other WTO
members, including China, the European Union, Japan and the United States, in launching
negotiations toward a new WTO plurilateral agreement on environmental goods. Canada is
committed to its leadership role in finding solutions to the 21st-century challenges to the
multilateral trading system.

■ SINGAPORE:
Language: There are four official languages of Singapore, they are Mandarin, Malay, Tamil
and English. With English being the most common language. The symbolic mother language
is Malay

Religion: 33.2 % Buddhism, 14% Islam, 5% Hinduism and 18.8% Christianity, 18.5% No
religion, 0.6% Others, 10% Taoism and folk religion.

Population & Natural Resources: The current population of Singapore is 5.64 million.
Singapore population is equivalent to 0.08% of the total world population. Singapore has
very few natural resources. Deep water reserves of petroleum are mined and exported to
other countries.

GNP & GDP: Singapore has a GDP of $369.6 billion (nominal) Increase $602.6 billion
(PPP). Its GDP rank is 34th nominal in 2019 and 36th PPP in 2020 with a growth of 3.4%.

Culture:
Power Distance- Singapore scores high here (score of 74). Power is centralized and
managers rely on their bosses and on set rules. Employees expect directions and don’t do
anything by themselves. Everything is controlled and formal behavior is expected towards
manager
Individualism-Singapore, with a score of 20 is a collectivistic society.
Masculinity- Singapore scores 48 and is in the “middle” of the scale but more on the
Feminine side.
Uncertainty Avoidance- Singapore scores 8 on this dimension and thus scores very low on
this dimension. Singaporeans call their society a “Fine country. You’ll get a fine for
everything”.

Economic Environment:
Singapore is a highly developed free-market economy. Singapore's economy has been
ranked as the most open in the world, 4th least corrupt, most pro-business, with low tax rates
and has the third highest per-capita GDP in the world in terms of Purchasing Power Parity. It
has one of the highest living standards in the South East Asia. Singapore is considered a
global financial hub, with Singapore banks offering world-class corporate bank account
facilities.

Political and Legal Environment:

Singapore follows a parliamentary political system which means that the executive branch of
government has the direct or indirect support of the parliament and this support is shown in
the form of vote. The relationship between the executive and legislature in a parliamentary
system is called a responsible government. Its legal system is based on based on English
common law. Level of government intervention with business is low. Singapore offers a
corruption free business environment with low tax rates. There are few trade barriers,
Singapore is consistently rated as one of the best countries to do business. Singapore
encourages investment and international business activity since it is highly dependent on
imports and exports.

Tariffs: More than 99% of all imports enter the country duty-free. For social and/or
environmental reasons, Singapore levies high excise taxes on distilled spirits and wine,
tobacco products, motor vehicles and petroleum products.
Quotas: Singapore has a quota on foreign workers.

International Integration: Singapore is a member of a number of regional economic blocs

and this has facilitated the economic integration of Singapore with the region and the world
at large. An economic bloc is a large free trade area. A free trade area means a group of
countries that have removed barriers to trade between them, barriers like import tariffs and
quotas. Singapore is part of ASEAN, WTO and GATT.
■ AUSTRALIA:

Language- Australia has no official language, English is regarded as the national language
and is spoken by the majority of the population.
Religion- Catholic Church (22.6%), Anglican Church (13.3%), Other Christian (16.3%),
Islam (2.6%), Buddhism (2.4%), Hinduism (1.9%), Other religions (1.7%), Not stated or
unclear (9.1%), No religion (30.1%)

Population & Natural Resources- Australia has a population of 25 million. Australia is the
world's largest exporter of coal (35% of international trade), iron ore, lead, diamonds, rutile,
zinc and zirconium, second largest of gold and uranium, and third largest of aluminum.
GNP & GDP- It has a high living standard with GDP per capita of 1.36 trillion USD (2019)
in PPP. Australia is ranked as 14th (nominal) in GDP in 2019.

Culture:

Power Distance- Power Distance (PDI) in Australia is relatively low, with an index of 36,
compared to the world average of 55. This is indicative of a greater equality between societal
levels, including government, organizations, and even within families.
Individualism- Australia, with a score of 90 on this dimension, is a highly Individualist
culture.
Masculinity- Australia scores 61 on this dimension and is considered a “Masculine” society.
Uncertainty Avoidance- Australia scores a very intermediate 51 on this dimension.

Economic Environment:
Australia has a very strong economy that has seen many highs and lows in the past few
decades. Australia's mixed market economy is a prosperous, Western market economy
where the GDP is high and the rate of poverty is low. Its free market is among the first five
developed countries of the world, with the four main components being Trade,
Manufacturing, Services and Financing.

Political and Legal Environment:

Transparent, stable democratic government, with laws passed in an orderly and deliberative
manner. Safe and secure place to do business, with a transparent tax and legal system.
Globally significant mineral resources, well-positioned to capture rising Asian markets.
Stable legal and regulatory environments for foreign investment match government's
welcoming attitude. Transport and infrastructure occasionally vulnerable to natural disasters
such as bushfires and floods, which cause moderate disruption several times per year. Distant
from traditional Western markets and dependent on shipping for access to markets.
Dependence on the mining sector is weakening other sectors, supporting a stronger currency,
and increasing the economy's exposure to exogenous demand and price shocks.
Tariffs: The goods and services tax (GST) in Australia is a value added tax of 10% on most
goods and services sales, with some exemptions (such as for certain food, healthcare and
housing items) and concessions (including qualifying long term accommodation which is
taxed at an effective rate of 5.5%).
Quotas: Australia has commitments under the World Trade Organization (WTO) on tariffs
and tariff quotas, export subsidies and domestic support for agricultural products.

International Integration:
Australia has strong trade ties with the rest of the world. Its location has also allowed
Australia to become a major supplier to markets in the Asia-Pacific region. The Australian
Government has a number of policies that seek to develop and assist Australian businesses
involved in international trade. Regulation also exists to protect domestic industries,
consumers, and the environment from harmful and dangerous goods imported from overseas.
Australia has six Free Trade Agreements (FTAs) with other countries in force and another
eight under negotiation. The FTAs contain legally binding commitments by each member to
liberalize access to their markets for goods and services as well as investment.

Risks Comparison-

Political Risk- There is Least political risk in Singapore as it has a relatively conflict less
growth. Australia has seen its fair share of ups and downs with 5 prime ministers in 8 years.
Toronto has a relatively stable with a good score of 6/7 in political freedom.

Legal Risk- Singapore has the lowest legal risk due to their strict laws in place. They are
known to fine even for the slightest mistake so one must be aware of their laws. Canada has
strict rules on its agricultural sector. Australia has moderate legal risk.

Competitive Risk- Canada has more competitive risk in comparison to Australia and
Singapore as the market is very saturated for Bengali food in Canada.

Exchange Rates:
1 AUD = 59.5219 BDT
1 BDT = 0.0168005 AUD
1 SGD = 62.1237 BDT
1 BDT = 0.0160969 SGD
1 CAS = 63.2 BDT
1 BDT = 0.016 CAS.
Which country we are exporting to and why ?
Considering the socio, economic, cultural and political aspects of all the three countries
Singapore, Canada and Australia we are choosing Canada to be the most suitable county to
export our product.

This is because Canada is a democratic county which follows a market based economic
system so it will be best for our local firms to enter their markets as they have a better
political background, less political risks, legal facilities and government do not intervene in
terms of any business activities. Canada can also provide privatization and promote
intellectual property rights. The economy of Canada is a highly developed market economy,
therefore; by exporting to Canada, we can reach a whole new market with minimal risk as
the purchasing power of people is better there. It is one of the least corrupt countries in the
world, and is one of the world's top ten trading nations, with a highly globalized economy.
Garments are one of the most popular items that are imported into Canada and one of the
most protected with duty rates averaging 17.5%.

The values and norms of Bangladeshi culture highly differs from Canadian culture so our
company has to study a bit about their culture to enter their market. This can be one of the
main problems. However, despite Canada’s official language being French, English is
spoken by most of the people so our company can adapt with the terms and conditions of the
country easily which is a great advantage for us. There seems to be more freedom and
flexibility in the Canadian culture and it is not very restrictive.

The products Dynasty group produces are sweaters and cardigans and Canada has more of a
cold climate, with short warm summers and long, frigid winters, whereas in Singapore the
weather is quite hot and humid throughout the year and in Australia also, winter is mild so
selling out our product in Canada is a better option. In the end, it all comes down to the
intensity of Canada’s cold weather which promises higher sales than the other two options.
Market Entry Mode Analysis:
Generally Dynasty Group follows the Direct Exporting as their foreign market entry mode.
As they have decided to export their branded sweater in Canada, so it will be much better
and beneficial for the company if they select Direct Export Entry Mode for their newly
selected country for Internationalization. We will give Logical Arguments about this but
first we need to know what is Direct Export.

Direct Export: In one word, Direct Export is basically a method of selling products in
foreign markets or outside of the country by the producer or manufacturer companies. If one
country’s company is able to produce or manufacture goods, that company’s have an
opportunity to Internationalization that product by many market entry mode options. Direct
Exporting is one of them. It is a very common and beneficial (for some companies) method.
By using this method, sometimes companies can reach their products at a very lower cost
which is beneficial for both the manufacturer companies and also for the consumers.

There are also many Market Entry Modes for Internationalization local products except
Direct Exporting such as Licensing, Franchising, Joint Ventures, Turnkey Project,
Greenfield Investment, Wholly Owned Subsidiary etc.

Why Choose Direct Exporting: Logical Arguments

As we know that what is Direct Exporting, now it’s time to give the Logical Arguments
about this mode.

Every companies first priority is profit gaining. So if a company really wants to earn the
maximum profit from its business, that company should have to analyze very carefully every
section for the profit maximization. It will be only possible if a company can select its
lower cost operations in every sector. Wherever find that it will be possible to operate that
deal with the maximum level of lower cost, that company should deal with only that
operation. The higher of possibility of profits, the higher of risks. So a company should
operate very carefully if they really want to gain the higher possible profits.

In that case, Dynasty Group select Direct Exporting Method in Canada for
Internationalization because the Logical Arguments for this factors are-

 Direct Exporting avoids the cost of Establishing Business in Foreign Location

o By choosing exporting, a company do not have to establish or build the
structural business in foreign location. The cost for establishing a business in
foreign market is much and more higher than the exporting. And in Readymade
Garments Sector, Direct Exporting is the best option to Internationalization their
products. It reduce costs so that the company gets the chance for gaining a
higher profit.
  Direct Exporting gives the Control of Transaction
o By choosing the Direct Export method, company can control its all transactions
and do not lose any control of the company’s economical activities.

 Direct Exporting is Easy to Control

o Direct Exporting gives the company much and more control in overall activities.
It is much easier method to control over any activities regarding
Internationalization products than any other methods in Readymade Garments
Industry.

 Direct Exporting is Flexible

o Direct Exporting mode is flexible because it is far easy to cancel a contract or
deal rather than close or end the company’s structure in foreign market. It is
also more sufficient and take less time.

 Direct Exporting does not allow any Middleman

o Direct Exporting directly exports the product and goods by its contract and
demands. So there is no broker or middleman or third party needed for this.
Direct Exporting method does not allow any middleman or broker or third party
in the process of exporting.

So, by analyzing all of this it is fully clear that Dynasty Group will select the Direct
Exporting Mode for entry mode in a new country which is Canada for
Internationalization their particular products. It will bring the maximum profit to this
company. For this reasons, Direct Exporting Entry Mode will be most appropriate entry
mode rather than any other entry modes that is existing in the market.
Choosing the suitable strategy of internationalization:
The strategy that will be best for the knitting industry is international strategy as the local
responsiveness is not a big factor for gaining profitability. As there will be less emphasis on
local responsiveness the cost of production will be less comparatively to the good and
services that will follow transnational strategy. Garments industry is one of the biggest
industries in Bangladesh, a huge amount of revenue is gained through this industry and the
biggest export industry of Bangladesh is garments industry because of its lower labor cost,
the production cost of is minimal.

International strategy is the best strategy because, as Dynasty Group is a textile company,
they don’t have to localize there products according to the countries they are doing business
with or keep cultural and economic factors kin mind before expanding it business. The
expansion of the business is less costly because of its minimal local responsiveness factor.
The productivity will increase which is decrease the costing of production and organizations
can reach economies of scale faster. In addition to its effect on financial performance,
international diversification can provide benefits in the form of knowledge transfer and
innovation. Entry mode represents one of the most critical decisions for MNEs expanding
overseas due to its implications for organizational control, resource commitments and
investment risk exposure. And, entry decisions entail the timing and speed of entering
particular foreign markets. The temporal dimension of internationalization has long been
considered an important concern yet, most research on internationalization has emphasized
the mode of entry with perhaps only implicit consideration of time. However, more recently,
there has been a shift in the focus from entry mode to entry timing and speed.
Conclusion:
The purpose of this study was to understand how our company, Dynasty group is to
internationalize and what are the factors that may influence the firm’s internationalization
process and the selected entry strategy. Dynasty group is looking for entering into foreign
market for the first time. I would say that, there is no best way of entering an international
market. It all depends on the type of products an organization produces, the resources it is
willing to commit in the new market, the risks it is willing to take, and the barriers that are in
the new market. In order to be succeeding in internationalization, the organization should be
able to think globally. International marketing is an important aspect in internationalization
of an organization. By selling our product in another country, we can introduce our company
to huge markets, increase our sales and profits, gain brand recognition and reduce the risk of
only operating in one mark. By exporting to other zones, it not only brings a higher revenue,
but divides the risk among the target markets as well. However the culture, religion and law
of each country are extremely important to consider here. Canada and Bangladesh are
countries which lie on different levels of the spectrum. Starting from the economy to the
target market’s mindset, almost all the characteristics oppose each other. The primary
concern amidst these differences is definitely the needs of the potential customers of the two
countries. At the end of the day, proper strategy implementation for each respective country
and its people will certainly bring positive results and good sales returns.
References
http://dynastygroupbd.com/
https://en.m.wikipedia.org/wiki/Canada?fbclid=IwAR2W6-
2NcM7Zkv0ASJc7K40kSdwttj4MXpmjvdrZ9CoUuK9KlOE0PtLdbYE
https://en.m.wikipedia.org/wiki/Singapore?
fbclid=IwAR0H05Muk6OtXw7RHUeTswG68JYqSNg__zTSmYk7TflEwqs4
AaFqFATFk4U
https://en.m.wikipedia.org/wiki/Australia?
fbclid=IwAR3kAB0CQ0t93mYyqaRJdT31-
dCJditOYIDycop_3IId7yFcAt9Onfcff7k
https://www.researchgate.net/publication/280625154_International_Strategy
_From_Local_to_Global_and_Beyond