INTERNATIONAL BUSINESS

END SEM EXAM

ANSWER 1
New international businesses, notably Chinese firms, are posing a danger to Jeevan. Over the
years, his company had expanded. The arrival of new Chinese players, on the other hand,
represents a significant problem. Jeevan also wishes to extend his business internationally.
He'll need to devise tactics to stay afloat in both the home and international markets. Large-
scale production aids him in lowering his long-term average cost. To compete with the new
players in his industry, he needs to improve technologically. This may be an excellent
opportunity for him to put his skills to the test.
The arrival of Chinese firms within the Indian industry raised the stakes, forcing Jeevan to
contemplate expanding internationally. Jeevan was sure in his items' superior quality
assisting him in overcoming the challenge faced by Chinese companies and other players
from throughout the world as a result, Jeevan needed to figure out which nations he wanted to
visit. could enter, as well as design a plan for doing so successfully. Previously, he had
worked hard to achieve and understood that he needed to pick his battles carefully. to push
his company to new heights Despite India's tremendous agricultural productivity, a
substantial amount of food is wasted. Due to a lack of proper infrastructure, a lot of waste
happens. According to the report, post-harvest losses account, Ministry of Food Processing
Industry (MoFPI) Annually, for US$1.5 billion (INR 92,0000 million). In total, less than ten.
In the United States, % of total food production is processed into value-added goods. India.
According to a research published by the Associated Chambers of Commerce in 2017, The
food processing sector in India is represented by the Association of Small-Scale Industries of
India (ASSOCHAM). By 2020, it is estimated to reach USD 482 billion, owing to
development in the Consumer behaviour is evolving, and the retail industry is becoming more
structured. In urban and semi-urban settings, materialism is rampant.
Jeevan was well aware of the danger presented by worldwide brands, but he believed that
indigenous companies had an advantage in terms of price and after-sales customer support.
Despite this, machinery with high performance and innovative technology had to be
imported. The obstacles in the export market, on the other hand, were rather different. "In
developed countries, the perception of Indian-made machinery in general is low compared to
major global firms," Jeevan says. When I was negotiating for sales of coffee seed sorters in
Brazil, I ran into this issue. I didn't succeed there, but I was able to break into a few African
nations since there was less of a perception problem, and these countries needed full
installation, after-sale support, and training aid. You must travel abroad to attend significant
trade fairs in order to build your export market and network."
Food processing equipment is gradually being imported into India by global firms such as
GEA Group, Alfa Laval, HRS Process, and others. When compared to top worldwide
manufacturers, opinions of Indian-made equipment are bad in developed countries. When he
was considering selling coffee seed sorters in Brazil, this issue occurred. He was unable to
establish it there. Full setup, after-sales assistance, and training were necessary in developing
countries. Frequent international travel to large trade shows is crucial for expanding export
markets and networking, and as a result, the company was able to join the developing country
market but not the developed country market. Spectrum was a little company, thus it had to
compete with larger firms all around India.
Due to its tiny size in terms of being an enterprise, Spectrum first encountered pushback from
big domestic clients who were accustomed to importing their gear and were wary of investing
in an Indian brand, citing concerns about its quality and performance.
Because they were importing less priced CCD cameras from China and other countries,
Spectrum's competitors were able to offer a cheaper pricing. To combat this, he created his
own RGB Trichromatic cameras, which performed better in sorting and other similar tasks.
Price competition, on the other hand, put a strain on Spectrum's domestic sales.
China is a key supplier of colour sorters and other food processing gear, and it offers fierce
economic rivalry.

ANSWER 2
For worldwide market entry and expansion, he needed to pick certain nations. Based on his
previous experience, he needed to assess country-specific critical factors such as economic,
political, and legal issues, as well as cultural aspects; assess long-term profit potential and
growth of business prospects; consider after-sales service support; and conduct country-
specific market research to understand demand potential, competition, and buying behaviour
of local populations, and, as a result, short-list the countries over a plaza.
Jeevan understood that no single-entry style was preferable to another, thus he had to match
the entry mode to the organisational context, aims, and objectives. He also had to examine his
organization's internal resources and capabilities, as well as the climate in the nation of entry,
while deciding how much money to devote. Jeevan was confident that he would be able to
approach the Indian government, the Ministry of Food Processing Industries (MoFPI), and
foreign embassies to see if they might give fruitful markets for his firm to develop.
Jeevan also had to assess the circumstances in the chosen nations and choose the best
moment to enter the market. He had to consider his resource availability for deployment, the
market environment, and competition at the moment of entrance.
Jeevan's budget estimate for new foreign market expansion was roughly INR 15 million for
preliminary market assessment and creating marketing regional offices and infrastructure,
based on his current export market expertise to date. Despite his initial preferences for
African courtiers, the Far East, Australia, Europe, and Thailand, he was unsure how he would
achieve his worldwide sales turnover goals of 15-20%. "The greatest way to forecast the
future is to create it," he pondered as he sipped freshly prepared coffee.
Jeevan had some expertise with export marketing, which he might use as a springboard for
further expansion. However, he needed to devise a successful international market entrance
strategy that focused on appropriate entry mechanisms, target nations, and entry time and
procedure.
Jeevan examined matching his foreign market entry plan with his company's aims and goals,
which included ensuring the company's product's long-term survival and growth in the
international market.
He felt that profit enhancement could be reached through profitability, and that profit growth
could be achieved over time by selling more in existing markets and entering new export
markets. He had to pick between a worldwide standardisation plan, localization, and a
transnational strategy to determine the best strategy. Jeevan was aware, however, that while
designing colour sorters, he would have to consider aspects such as localised design, as well
as the type and quality of input materials necessary for processing.
He had to decide on the best mode for admittance and expansion as well. Direct exports,
indirect exports, franchising, licencing, contracting, manufacturing overseas, joint ventures,
and founding a totally owned subsidiary were all options available to him. Each style had
advantages and disadvantages, so he had to choose between a pragmatic approach or a
combination of ways, which varied by country.

ANSWER 3
Jeevan saw that no single method of entry was preferable to another, thus he had to tailor the
accounting process to the company's circumstances, aims, and aspirations. He also had to
evaluate the internal resources of his organisation. He had to choose between standardisation,
localization, and international standards as a strategy. He'd have to think about things like the
type and quality of raw materials he'd need for operations, as well as the architecture of the
area. He had to decide on the best admittance and growth strategy.
He had to choose between a practical plan and a mix of tactics that differed by location. He
had to choose particular nations for global market entry and expansion based on his previous
expertise. He was supposed to look into long-term profit possibilities and business
development options, as well as assess country-specific factors including economic, political,
and legal challenges, as well as cultural traits. He must look into after-sales service and do
country-specific market research to identify demand potential, competition, and local
population purchasing behaviour, and then short-list the nations within a certain time frame.
Factors to consider when scanning and evaluating a country include:
a) Market Size
b) Risk Issue
c) Aspect of Opportunity
d) The Nation's Political System
e) The country's geographical situation.
f) Operational cost and resource compatibility
The majority of data collection issues in international marketing research are due to cultural
variations across nations and vary from respondents' incapacity to convey their ideas to
questionnaire translation errors.
• Methodologies for market research that are currently in use.
• High-quality...
• Outcomes of Research (For Clients) ...
• Set yourself out from your competition...
• Clientele Restriction.
common source for gathering foreign statistics are:
a) Newspaper
b) Magazines and the official website of the government might also assist in the collection of
international data.
c) The globe of economic complexity and the economic atlas Facebook, Twitter, and
Pinterest are all options.
d)The World Development Indicators of the World Bank. Facebook, Twitter, and Pinterest
are all options.
e) COMTRADE database of the United Nations. Facebook, Twitter, and Pinterest are all
options.
The grid and risk matrix utilised by the country to determine risk and opportunity in the
economy are known as the country evaluation grid and opportunity-risk matrix.
They contribute to business strategy in the following ways:
a) It gives a corporation the opportunity to assess each country.
b) Assist in assessing economic risk
c) Assist in achieving desired economic outcomes.
d) Assist in the formulation of a strategy and the establishment of objectives in the economy