Exportation of Lucero Olive Oil to China

Success in the Chinese’ fruit beverage market is contingent upon distribution decisions made by firms in the market. Many companies have failed to prosper in this market due to poor distribution decisions. However, the Chinese fruit beverage market is attractive. The advantageous nature of this market is revealed by examining competitive rivalries, and the social, economic, and political forces that will affect your firm’s ability to successfully compete.

Doing business in such different countries ask you to be flexible and need to be able to adapt quickly to the local demand and cultural differences. Your strategy has to be adapted to the ethical standards, cultural norms, but also the way the business is going locally. In others world, the company has to localize its distribution and marketing strategy to the requirements of the local market.

But the issues have been to have alternatives to replace palm oil cultivation and production. Other alternatives like the soy bean and others do not prosses the qualities that palm oil has. However, the views of drivers of the socio-economy, governmental decision and environmental activists that make palm oil “Palms of Controversies” (Rival and Levang, 2014).

The increased use of palm oil in products, results in a narrow variety of choice for ethical food customers. Around 50% (Anon., n.d.) of goods produced contain palm oil. This leaves only half the amount of products

A transnational company is a corporation that is registered and operates in more than one country at the same time (West's Encyclopedia of American La., n.d.). A transnational corporation has its headquarters in one country and operates wholly or partially owned subsidiaries in one other, or many other countries. Some companies will outsource a portion or sometimes all of their Information Technology (IT) functions to a foreign country for a verity of reason. Companies that move a portion of their operations, such as IT, need to investigate the

The CEO of Kudler Fine Foods, Kathy Kudler has always kept a keen watch to expand her business to new locations. Kathy along with her team is looking forward to the product launch of their fine wine selection in China. Kathy is optimistic about her project launch in Shanghai, China and hopes that the product will do just as well as it has been doing in places where the company has already established it. She looks at China as one of the expanding markets in the world and there is increased demand for food products that the company has to offer. Kudler fine food products will be launching their wine selection, gourmet and other food products in Shanghai, China. There are many aspects of the business that need to evaluated by Kathy and her team before she releases her fine wine selection in Shanghai China. This is the purpose of the SWOT analysis.

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

The international olive oil market is a highly competitive field with its top firms located around the world. In total, the International Olive Oil Council estimates at least 3.2 million tons of olive oil were produced in the year 2013. The top olive oil producing countries are Spain, which produces 1.5 million tons, Italy (500,000 tons), and Greece (230,000 tons) (Butler, 2013). In this market, the top firms are determined in international competitions. One of the most prestigious is the New York International Olive Oil Competition with 702 entries from 22 countries. In this competition, the highest award for each olive oil blend and variety is "Best in Class". Two of the top performers included Frantonio Franci (Italy), and Cobram Estate (Australia) (Best Olive Oils, 2013). Another prestigious source, World's Best Olive Oils, determined the top three brands based on 18 international competitions. They were Venta de Baron (Spain), Rincon de la Subbetica (Spain), and Oro Bailen Reserva Familiar (Spain) (World's Best Olive Oils, 2013). Due to this variety of competitions and rankings, the leaders of the market can fluctuate based on the yearly performance.

The aim of this report is to provide the company with a feasibility report for the proposal expansion. The proposed expansion will require the company to have access to muesli, machinery and labour in Japan in order to produce health foods, muesli bars and other confectionary products. This report will analyse the political, economic, socio-cultural, technological and legal environments (PESTL) that exists in Japan, which will then be recommended to Carmen Fine Foods whether to expand their business into Japan. The proposed expansion strategy is by exporting required resources from Australia to Brazil, because they do not have the experience in working overseas.

The uncontrollable factors such as the Chinese economy, political climate, technological, socio-cultural and legal factors are first extrapolated showing that China is the second largest economy in the world and plays an influential role in the global economy. The robust economy has given rise to high levels of disposable income, leading to increased demand for foreign products, and in particular, Australian wine. Politics and the economy are closely inter-related, with the Chinese

With a specific end goal to comprehend the full possibility and the possibility of the rapeseed oil market in China we ought to all the more nearly take a gander at the Chinese customer and the monetary segments that assume a part in adjusting and affecting their conduct and inclinations (Pan, 2012).

I believe that Coke is now trying to pursue transnational Strategy as it has been practiced by many multinational companies like Procter and Gamble, Xerox and etc. Goizueta’s approach was on Global Strategy and Daft’s approach was more on localization strategy. The transnational Strategy actually is a combination of both Global and Localization Strategy. The firm seeks to combine the benefits of global-scale efficiencies with the benefits of local responsiveness.

Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.

As trade increases hyper-competition grows forcing organizations to go global. By a company going global it requires them to rethink strategy and reform (Ananthram and Pearson, 2008). Global organizational structure is the way a company aims to merge local preferences with global strategy. The definition of global strategy is “strategic choices that have the characteristics of being globally uniform or integrated,” (Yip et al., 1997) such as standardization of products, uniform marketing, and competitive moves, but all globally (Townsend et al., 2004; Zou and Cavusgil, 2002; Bayraktar and Ndubisi, 2014). Global strategic strategy is a way to adjust to globalization. Globalization is “the economic and social process by which economies and communities grow inextricably interdependent “(Jhirad et al., 2009). The recent financial crisis (Das, 2010), large amount of poverty, and climate change are all problems that show how the world is globally connected because all countries impact each other (Jhirad et al., 2009).

While the country scores high marks from the World Bank Doing Business Report in enforcing contracts, it ranks poorly in providing attractive conditions to start a business and protecting investors. When talking about functional food products it is noticed that they are much less common in China than in Western Europe and North America and the Chinese organic market is still in its infancy. However, although still timid, organic and functional foods are starting to be present in supermarkets and other caterings in China. Growing increasingly distrustful of local food sources, many people are turning to organics and/or imported food items, which are perceived to be safer. Lesser trends have also developed, including urban farming and dining out less frequently due to recent food scares.