International Strategy for Fonterra to Enter Japan Essays

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Executive Summary This report examines provides a comprehensive summary of the threats and opportunities for Fonterra to expand its operations into a new market within Japan. Japan has a relatively stable political and legal environment which reduces the risks associated with entering the foreign market. The political system is a democratic system, with a Westminster form of government similar to Australia, which is favourable for western cultures when conducting international business. The legal environment on the other hand, is built on the foundations of the European Civil Law system with an English-American influence. Therefore Australian businesses must understand the differences when conducting business to ensure the…show more content…
Japan is located in the Pacific Ocean in East Asia close to the Asian market. It is 378,000 square kilometres with a total population in 2010 of 127.5 million people (Globaledge, 2011a). 98% of Japan’s population is Japanese. This can be beneficial when looking to enter the new market as a majority of the country holds the same culture and beliefs. It is an attractive market for Australian producers due to their relatively high average income and significant population (Austrade, 2011a). Over the past decades Japan has seen a shift towards less traditional foods to international cuisine (Austrade, 2011a). As a result there is increased competition on the global food market and an increasing consumer demand for healthy foods (Austrade, 2011a). This is due to a rapid increase in health consciousness and the ageing population within Japan (Austrade, 2011a). Therefore providing Fonterra with the opportunity to enter a new market. This report has been prepared for Fonterra which recommends the most appropriate entry mode, international strategy and human resources approach to enter the Japanese market, with an assessment of ethical issues they should be aware of. Macro Issues International business is much more complex than operating within the domestic market because countries are extremely different in many ways. The

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