M8.

4 Project Work: Business Plan

Excelsior University

BUS 435: International Business

Dr. Miguel Corona

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 Table of Contents
Executive Summary...................................................................................................................... 3

Company Description................................................................................................................... 4

Market Analysis............................................................................................................................ 5

i. Strengths........................................................................................................................... 6

ii. Weaknesses...................................................................................................................... 7

iii. Opportunities..................................................................................................................... 8

iv. Threats.............................................................................................................................. 8

Products........................................................................................................................................ 9

Marketing Plan.............................................................................................................................. 9

Logistics and Operations Plan.................................................................................................. 11

Financial Plan.............................................................................................................................. 12

Cash Flow Statement.................................................................................................................. 13

Conclusion.................................................................................................................................. 14

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Executive Summary

Nawah aims to transform the coffee industry through sustainable innovation. Our

principal production, date-seed coffee, originates in the UAE and reflects its cultural heritage

while providing health benefits and premium taste. Our plan for strategic collaborations with

local farmers will ensure ethical sourcing and community support. Accordingly, our unique

organizational structure blends efficiency with cultural understanding of the local context. Nawah

offers two signature products: Nawah Pods and Nawah Roast Coffee. Nawah Pods deliver

convenience without compromising taste, catering to diverse brewing methods. Nawah Roast

Coffee captures the essence of freshly ground coffee, appealing to both traditional and modern

taste preferences. Our commitment to sustainability is aligned with Emirati cultural values and

the country’s national vision.

The flourishing UAE coffee market, valued at $165 million in imports, offers substantial

growth prospects for Nawah. Projected revenues of $299.80 million by 2023 attest to the appeal

of our health-conscious and culturally resonant offerings. Correspondingly, our intended

collaborations with local businesses and influencers will enhance our market presence and

connect with the audience. Our financial strategies include currency hedging through forward

contracts and alignment with the UAE dirham. The UAE's robust GDP growth, tax framework,

and regulatory environment bolster our venture's stability. Nawah's journey merges innovation

and culture, contributing positively to the UAE's economic landscape.

Nawah envisions a sustainable future where every cup of date-seed coffee embodies

change, authenticity, and a delightful experience.

Nawah – Pouring flavor: A Journey from Seed to Cup

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Company Description

Nawah, headquartered in New York, is a US-based enterprise dedicated to advancing

environmental, social, and economic sustainability across its global supply chain. With a

commitment to fostering positive impacts on both people and the planet, our core mission is to

introduce innovative and sustainable solutions to the market. Anchored in the United Arab

Emirates (UAE), Nawah's business model revolves around producing and distributing date-seed

coffee. This eco-friendly alternative to conventional coffee is crafted from ethically sourced date

seeds procured from sustainable and ethically managed date farms (Niazi et al., 2017). Through

responsible sourcing and production, Nawah strives to reduce waste, support local

communities, and offer consumers a delightful and sustainable coffee experience (Lannone &

Caruso, 2023).

Nawah envisions establishing a significant presence as a leading player in the UAE's

date-seed coffee sector. Our mission extends beyond financial success, aiming to set a new

benchmark for environmentally conscious products while positively influencing local

communities and preserving natural resources. By forging strategic partnerships, investing in

research and development, and emphasizing ethical sourcing, we aim to become synonymous

with premium and sustainable coffee in the UAE market.

Nawah will adopt a multifaceted approach. We will prioritize forming meaningful

collaborations with local farmers to ensure fair market access for their date seeds, secure a

reliable income stream, and reduce food waste. We also intend to channel resources into

research and development, enhancing our date-seed coffee's quality and taste profiles through

innovative techniques. Lastly, Nawah is committed to raising consumer awareness through

educational campaigns and aims to do so to foster a sense of responsibility toward sustainable

food choices.

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 Our organizational structure, designed for optimal efficiency within a foreign context like

the UAE, combines functional departments and product-specific teams. This matrix structure

empowers centralized decision-making in critical areas such as sustainability initiatives, brand

development, and overall strategic direction. The approach respects local autonomy, offering

space for region-specific adaptations crucial for accommodating cultural nuances and market

dynamics (Englehardt & Simmons, 2002). This design ensures alignment with our vision while

enhancing employee engagement and ownership.

Nawah date-seed coffee is a premium and versatile product crafted meticulously from

ethically sourced date seeds. Our unique flavor profile, underscored by notes of sweetness,

promises a memorable coffee experience. Nawah differentiates itself with its product

adaptability, suitable for various brewing methods, including coffee machines, moka pots, and

coffee pods. This choice accommodates both coffee enthusiasts who prefer the aroma of freshly

ground coffee and those who seek convenience. Our dedication to offering a premium,

sustainable coffee option resonates with health-conscious consumers and underscores our

mission to elevate the coffee experience in the UAE.

Market Analysis

One of Nawah's primary goals for entering the UAE market with date-seed coffee is to

capitalize on its potential health benefits. Date seeds contain various antioxidants that can

contribute to overall wellness. Nawah presents specific attributes in comparison to regular

coffee. These encompass its innate, pleasant flavor profile resembling sweetness, and its

notable abundance of antioxidants (Habib et al, 2013; Kongu & Sengottian, 2016). By

leveraging these properties and our flavor profiling expertise, we aim to create a distinct product

that appeals to health-conscious consumers. Regarding strengths, Nawah possesses several

advantages that give them a competitive edge over existing players in the market.

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 Nawah is poised to capitalize on a compelling opportunity in light of the flourishing UAE

coffee market. As of 2021, the UAE's coffee imports reached $165 million, ranking it the 38th

largest global coffee importer, as reported by OEC (2021). The UAE and the United States

boast promising coffee markets with substantial revenue figures. With projected revenues of

$299.80 million in 2023 and a yearly growth rate of 3.54% from 2023 to 2028, the UAE's coffee

market is experiencing robust growth (Statista, 2023). Nawah's innovation and the cultural

significance of dates within Emirati traditions position us favorably to carve a niche within this

landscape. The UAE's political stability and pro-business environment further create an ideal

backdrop for our venture (United Nations, 2017). Nawah's commitment to responsible sourcing

and adherence to local regulations ensures alignment with UAE's sustainability, safety, and

consumer protection policies (Tamm, 2023). The global trend toward healthier dietary choices

indicates that a considerable segment of health-conscious individuals in the UAE will find date-

seed coffee appealing (Ali & Ali, 2020).

i. Strengths

Firstly, Nawah possesses the distinct advantage of cultural relevance, with its products

deeply rooted in the UAE's heritage of date consumption. The strong connection between date-

based products and Emirati culture gives Nawah a unique selling proposition. This cultural

alignment enhances brand resonance and creates an emotional connection with consumers,

fostering loyalty and brand preference. Given its profound connection with local traditions and

practices, comprehending the cultural customs associated with dates becomes essential

(Asgary, 2019).

Secondly, Nawah will leverage the expertise of local specialists in palm cultivation and

date extraction. This strategic approach entails cultivating palm trees within the UAE's

conducive environment with optimal soil composition and temperature conditions. This

positioning offers us a distinct advantage in sourcing superior-grade date seeds, a vital

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component in our coffee production, and underscores our commitment to delivering a premium

product. Ultimately, this will ensure consistency in flavor and quality which is crucial for

maintaining customer loyalty.

Lastly, offering both roast coffee grind and coffee pods caters to a broader range of

consumer preferences, ensuring inclusivity and convenience. As the demand for healthier food

and beverage options rises, Nawah's products cater to the health-conscious consumer

demographic. The inherent health benefits of date seeds, combined with Nawah's premium

coffee offerings, create a product line that aligns seamlessly with the preferences of individuals

seeking healthier and sustainable alternatives.

ii. Weaknesses

Date-seed coffee is a relatively new concept, and educating consumers about its

benefits and unique flavor may require substantial marketing efforts. The the process of

adapting marketing messages to resonate with local customs and preferences could be

challenging, especially considering the cultural significance of dates in Emirati culture.

While offering premium quality, Nawah's pricing strategy could also be considered a

vulnerability. Striking the right balance between premium pricing and affordability is crucial.

Setting prices too high could alienate price-sensitive consumers, potentially limiting the

product's accessibility and growth. Conversely, pricing too low may undermine the perceived

value and quality of Nawah's offerings.

Accordingly, gaining acceptance from the established coffee community could prove

challenging. Due to ingrained preferences and loyalties, the traditional coffee industry may resist

or hesitate to embrace innovative alternatives like date-seed coffee. Overcoming this obstacle

requires targeted efforts to educate and win over coffee enthusiasts who may hesitate to deviate

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from their familiar choices. Nawah must invest in persuasive messaging and collaboration

strategies to address this potential weakness.

iii. Opportunities

The UAE's coffee market is projected to experience significant growth, providing an

opportunity for Nawah to capture a share of this expanding market. Nawah's commitment to

ethically sourced date seeds aligns perfectly with the growing global sustainability trend. In an

era where consumers are increasingly conscious of the environmental impact of their choices,

Nawah's emphasis on responsible sourcing and production practices resonates strongly. This

ethical foundation appeals to environmentally conscious consumers and positions Nawah as a

socially responsible brand, fostering trust and positive brand perception. By emphasizing our

use of locally sourced dates and supporting local farmers, we can appeal to consumers who

prioritize supporting local businesses.

Additionally, the intrinsic connection between date-based products and Emirati culture

presents a unique avenue for market penetration and brand resonance. This can be seen as

both a strength and an opportunity. By tapping into this cultural significance, Nawah can create

an intimate emotional bond with consumers, fostering loyalty and affinity. This opportunity

extends beyond the local market, enabling Nawah to establish itself as a cultural ambassador

by introducing its products to international audiences who appreciate and seek authentic cultural

experiences.

iv. Threats

One major threat is competition from established players in the coffee industry, who may

also recognize the potential of date-seed coffee. The UAE coffee market is diverse and includes

various established players. Nawah needs to differentiate itself to compete effectively. To do so,

Nawah aims to create a unique value proposition highlighting our expertise in flavor profiling and

commitment to sustainability.

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 External factors such as regulatory changes or economic conditions can also challenge

Nawah's operations. Changes in import/export regulations or fluctuations in currency exchange

rates can impact their ability to source raw materials at competitive prices or export finished

products profitably. Remaining informed on market dynamics and adapting our strategies

accordingly will be crucial to mitigating these threats. Lastly, Misalignment with local

preferences and customs could hinder the acceptance of date-seed coffee, impacting market

penetration.

Products

Initially, Nawah will launch two products: Nawah Coffee pods and Nawah Roast Coffee.

These products will cater to brewing preferences, ensuring inclusivity among coffee enthusiasts

with varying tastes and lifestyles. Nawah Pods are carefully designed to be compatible with a

wide range of coffee machines to offer all consumers effortless brewing at the push of a button.

On the other hand, Nawah Roast Coffee is a product tailored to those who appreciate the

authenticity and aroma of freshly ground coffee. Whether prepared in a moka pot or using other

brewing methods, Nawah Roast Coffee was developed to satisfy the demand of more

precisionist consumers.

Marketing Plan

To successfully promote date-seed coffee in the UAE, it is essential to identify and

understand the target market. In determining the target market, we have considered several

demographics, including age group, psychographics (such as lifestyle preferences), and cultural

characteristics. According to research by Chang & Spierings (2023), millennials and young

professionals are significant consumers of specialty coffees in the region due to their willingness

to experiment with new flavors and experiences.

We will leverage a multi-faceted approach that includes strategic partnerships, local

collaborations, and influencer engagement to achieve this. Our focus will center on introducing

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our unique products by creating an impactful and sustainable brand image that resonates with

the values of health-conscious consumers and coffee enthusiasts within the population.

Nawah's competitive strategy revolves around offering a premium and sustainable

alternative to traditional coffee. Our unique value proposition lies in our ethically sourced date-

seed coffee, which differentiates us from existing players in the market. We will collaborate with

local cafes, retailers, and influencers to penetrate the market effectively. By aligning with

established brands and engaging personalities who share our values, we aim to build credibility

and gain the trust of our target audience.

The UAE market boasts a robust tradition of date consumption, supported by its

favorable climate for cultivating date palms(Gulf News,2023). The advantageous climate of the

UAE enables us to grow date palms and ensures an ongoing and consistent supply of quality

dates. The population's historical bond with dates aligns seamlessly with our strategy, given that

our product is firmly grounded in local customs.

Collaborating with local coffee shops can be highly beneficial when launching a new

specialty product like date-seed coffee in an unfamiliar market. These partnerships provide

access to established customer bases and increase visibility within the local community. Our

strategies include offering exclusive menu items featuring date-seed coffee and conducting joint

promotions that help create brand awareness while leveraging existing customer loyalty toward

these popular establishments.

To generate buzz around Nawah, we will employ a mix of influencer collaborations and

in-store taste sampling. By collaborating with influencers with a significant following in the UAE,

Nawah will be promoted effectively to a broader audience (Verplancke & Gelati, 2022). Our

affiliation with influential food bloggers and social media personalities will involve conducting

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giveaways and sponsored content during organized events around the launch of Nawah. Onsite

taste testing is an essential strategy for generating consumer awareness and interest.

Our pricing strategy is aligned with the premium nature of our product. While we aim to

be competitive, we acknowledge the inherent value and outlay of our eco-friendly and ethically

sourced coffee. We will introduce promotional pricing and special offers during the initial launch

phase to entice early consumers and drive trial.

Adapting branding elements such as packaging, messaging, and visuals according to

the culture of the UAE is crucial for successful marketing. The UAE has a rich cultural heritage

rooted in traditions and values that should be respected when introducing new products.

Accordingly, we have incorporated traditional Emirati motifs and symbols into our product

packaging, which will help create a sense of authenticity and familiarity. Cultural sensitivity is at

the heart of our marketing plan.

Developing a well-executed marketing plan will be crucial for the successful launch of

Nawah into the UAE market. By understanding the current coffee market trends in the region,

identifying suitable target markets through demographic analysis, collaborating with local coffee

shops and influencers, conducting onsite taste testing events, adapting branding elements

according to UAE culture, and implementing attractive offers, Nawah can gain traction and

establish itself as a unique and desirable product in the UAE's growing coffee industry.

Logistics and Operations Plan

Our strategy for logistics and operations integrates local knowhow in material production

and sustainability practices along a robust network to serve Nawah's target market. By

centralizing our manufacturing processes in the UAE, we will gain access to local expertise in

date palm cultivation and a reliable supply of high-quality date seeds. This simplifies our

sourcing compared to global logistics. Accordingly, the UAE's business-friendly political

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environment perfectly complements its favorable climate and soil conditions required for

growing date palms ensuring a sustainable supply of raw materials (Shahid & Abdelfattah, 2008;

Lieb, 2020).

Additionally, rooting our operations within the UAE provides many benefits, including

cultural synergy, enhanced communication, and cost-effectiveness due to shorter transportation

distances and timeframes. Nawah has mapped across the country to develop an intricate

distribution and supply chain management network; it involves partnerships with local farmers,

distributors, coffee shops, and supermarkets to reach diverse customers across the UAE. The

arid climate of the region naturally aligns with the water-efficient nature of date palm cultivation,

requiring minimal irrigation to thrive. This approach conserves precious water resources, a vital

consideration in a desert environment (Carr, 2013).

Financial Plan

As Nawah operates exclusively within the UAE, the local currency, the UAE dirham, is

our primary transactional medium used for our financial plan. The UAE dirham is undervalued

by 7.6% against the US dollar, with an exchange rate of 1 USD to AED 3.67, according to

sources such as Guagenti (2023) and The Big Mac Index (2023). This financial environment

leads us to use forward contracts, a strategic hedging technique, to lock in exchange rates with

our suppliers. These tactics, explained by experts Garber & Spencer (1995) and Brown (2001),

will protect against unexpected currency fluctuations.

The UAE's financial landscape shows a strong GDP of $427.88 billion in 2022, with an

annual growth rate of 7.4% (The World Bank, 2023). The GDP per capita also experienced

gains, reaching $53,757.9 in 2022, with a growth rate of 6.5% (The World Bank, 2023). Inflation

remained stable at 4.8% in 2022, according to Focus Economics (2023). Notably, as Nawah

products are locally made with no current plans to export, we are exempt from tariffs. Starting

June 1st, 2023, the UAE Corporate Tax has a tiered structure. Profits below AED 375,000 are

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tax-exempt, while those exceeding it are taxed at a 9% rate. Multinational conglomerates with

consolidated global revenues over AED 3.15 billion are subjected to specific rates based on the

OECD's profit-sharing norms (KPMG, 2023; OECD, 2023).

UAE regulations prioritize sustainability, safety, consumer protection, and local industry

support. Tamm's (2023) perspective underlines these pursuits, focusing on agriculture,

manufacturing, and the food sector. Pertinent guidelines advocate environmentally conscious

cultivation methods and water preservation techniques (OECD, 2019). The culinary landscape

aligns with Islamic dietary laws through the stringent requisites of Halal certification, an

imperative considering our domestic manufacturing approach (MOIAT, 2023).

The UAE's unemployment rate in 2022 was 2.75% (O'Neill, 2023). Accordingly, the low

unemployment rate is coupled with no income tax to increase the populace's disposable income

reaching a reported $2000 (Hjazeen et al, 2021; Abbas, 2023). These factors demonstrate the

financial strength of the UAE's economy.

Cash Flow Statement

Project Name: Nawah Date-seed Date: 20 Aug 23 Per Year in Total Cost in
coffee USD USD (5 Years)
Work Breakdown Structure
Categories (All costs in USD)
1. Initial Investment (One-time cost
for setting up manufacturing
facility, equipment, and inventory) $500,000 - $500,000
2. Operating Costs
2.1 Employee Salaries and Benefits
(To hire and retain skilled workers in $200,00 $1,000,00
the manufacturing and sales teams) 0 0
2.2 Raw Materials and Supplies $150,00 $75,000
0
2.3 Rent and Utilities $60,000 $300,000
2.4 Research and Development $30,000 $150,000
2.5 Marketing and Influencer $80,000 $400,000
Collaborations
2.6 Packaging and Labelling $20,000 $100,000
2.7 Transportations and Logistics $30,000 $150,000
2.8 Regulatory and Licensing Fees $10,000 - $10,000

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 (One-time cost for necessary permits
and licenses)
Total $2,185,00
0
3. Sales Revenue (Locally in the
UAE)
Year 1 $100,000
Year 2 $200,000
Year 3 $350,000
Year 4 $460,000
Year 5 $550,000
Total $1,660,00
0

Conclusion

In conclusion, Nawah's launch in UAE shows great promise. We are well-prepared to

take advantage of the opportunities presented by the market's complex economic, regulatory,

and cultural landscape. Our business plan is built on the solid foundation of the UAE's robust

GDP growth and stable inflation dynamics. Accordingly, we intend to track exchange rates

closely and employ forward contracts to skillfully navigate the intricate currency landscape.

The UAE's tax framework and its focus on sustainability and industry standards align

harmoniously with our ethos. By adhering to local regulations and tapping into the principles of

environmental consciousness and Halal certification, we ensure that our path is integrity and

cultural integration. Our venture into the UAE market is also informed by the dynamics of

imports, showcasing the diverse tapestry of the nation's economy

Nawah's journey within the UAE's economic and cultural milieu signifies a pursuit that is

not merely commercial but one of alignment and resonance. Through financial acumen, ethical

adherence, and cultural sensitivity, we will navigate this course with determination and

contribute to both the market, environment, and the local fabric of consumers in a meaningful

and sustainable way.

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