CHAPTER 1

INTRODUCTION

1.0 INTRODUCTION

Farm Fresh Sdn Bhd is a company that produces food. Our

philosophy in business is best described by the tagline,

Healthy Food Healthy Life. We ensure that our customers

get the best quality food products at reasonable prices.

By adhering to the tagline, we are able to produce the

best products which conform or exceed international

standards.

1.1 THE COMPANY PROFILE

Farm Fresh Sdn Bhd is the company that aims to provide

high quality of manufacturing jam. In order to achieve

our mission and vision, we begin with our consumers. We

listen, we watch and we learn. We understand their joys

and their challenges because we’re consumers too. We are

different from other jam manufacturer because we are

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maintaining the pure taste of jam. Farm Fresh make

delicious foods consumer can feel good about.

The projected image shows Farm Fresh’s commitments

towards introducing and providing emphasis on quality and

services for the customers all over the world. Farm Fresh

word is basically about we are developing product from

the farm which means it is very traditional and fresh. We

want to maintain the original taste so that it can

maintain the vitamins and healthy goods in the product.

The farm picture is about to remind us that we start our

business with a small factory. Meanwhile the stars mean

we are going to shine in the international business.

1.1.1 Vision and Mission

Farm Fresh’s mission is to produce and sell world-

class products of the highest consistent quality,

2

reliability and convenience based on business

excellence principles throughout our operations. Our

second mission is to maximize the use of good

quality local raw materials. The other mission is to

be the leading multinational company in food,

nutrition and wellness. Farm Fresh had a vision of

becoming the most preferred choices jam producer.

1.1.2 The History

In year 2000, the first batch of Farm Fresh products

rolled off from a small factory in Shah Alam. Since

then, our venture has grown immensely. Today, Farm

Fresh has become a household name in the jam

manufacturing business. Our steady market growth

over the years has encouraged us to expand. From

doing business locally now we are trying to go into

globally. Our point of differentiation from

competitors is by maintaining the 100% pure taste of

the fruit.

1.2 GENERAL OUTLOOK FOR FARM FRESH IN AUSTRALIA

3

Everyone in this world needs food. Farm Fresh had look

this as opportunity for us to come out with food product

which it is Jackfruit Jam. Australia is the destination

for us to sell our product because they are eating jam as

part of their breakfast. Farm Fresh management has done

some research on how our product will be accepted by the

Australian and how we are going to promote our product.

We are going to reveal what we have got from our research

on how Farm Fresh will survive in Australia.

1.3 RESEARCH METHODOLOGIES USED TO ANALYSE AUSTRALIAN MARKET

Farm Fresh Sdn Bhd has chosen Australia after conducted

few series of thorough analyses and researches on

Australia. The research methodologies that are used were:

Market Intelligence Report (MIR), that provides a broad

overview on the country including its people, economy,

and infrastructure; Business Environment Analysis Report

(BEAR), that involves rating and evaluating key national

characteristics that may affect the marketing of the

product; Report on Opportunities for Market Entry (ROME),

that identifies several import and export opportunities

for the country being researched; and Market Entry

4

Strategy Analysis (MESA), in which the strategy

formulated must reflect the conditions of the country and

address a range of issues, such as the types of entry

mode, pricing, marketing and promotion.

1.4 SUMMARY

Farm Fresh will be perfect for the Australian market as

the first international market venture. By being

successful in the Malaysian market for more than 10 years

the company believes that Farm Fresh has a strong

foundation to kick start an international business in

Australia. This venture will be a vital milestone in the

company’s history, from being a domestic player to an

international business giant in the future. The company

sees that Australia is a nation that has significant

characteristics which open great potentials for the

company to provide jackfruit jam, since the demand can be

increase in Australia.

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CHAPTER 2:

MARKET INTELLIGENCE REPORT

(MIR)

2.0 INTRODUCTION

Melbourne is the capital of Victoria, and second most

populous city at Australia. Melbourne is located on large

natural bay known as Port Philip. The city centre is

situated in the municipality known as the City of

Melbourne, and the metropolitan area consists of a

further 30 municipalities.

The City of Melbourne was the location of the first

substantial European settlement in Victoria. Melbourne

has developed from colonial settlement to village to town

to major city. The role and function of the Melbourne has

almost turned full circle from its origins as a

residential and commercial area, through a period of

depopulation as industry moved in and residents sought

housing in areas further out, to its current situation,

6

where significant population increase is occurring

through redevelopment of former employment-related uses,

such as office space, warehouses, wharves and railway

land.

Today’s Melbourne has been well known as the centre of

arts, education, commercial, businesses and tourism. It

is also a major centre for contemporary and traditional

music. It is often referred to as the "cultural capital

of Australia”. Some of the awards that Melbourne has won:

Melbourne has been ranked as one of the top three

World's Most Livable Cities by the Economist Group's

Intelligence Unit (since 2002)

Top 10 Global University Cities by RMIT's Global

University Cities Index (Since 2006)

Top 20 Global Innovation Cities by the 2thinknow Global

Innovation Agency (Since 2007)

2.1 MARKET INTELLIGENCE REPORT

2.1.1 Geography

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Melbourne is located in the south-eastern part of

mainland Australia, within the state of Victoria.

Geologically, it is built on the confluence of

Quaternary lava flows to the west, Silurian

mudstones to the east, and Holocene sand

accumulation to the southeast along Port Phillip.

Melbourne's major bayside beaches are located in the

south-eastern suburbs along the shores of Port

Phillip Bay, in areas like Port Melbourne, Albert

Park, St Kilda, Elwood, Brighton, Sandringham,

Mentone and Frankston although there are beaches in

the western suburbs of Altona and Williamstown. The

nearest surf beaches are located 85 kilometers (53

mi) south-east of the Melbourne central business

district in the back-beaches of Rye, Sorrento and

Portsea.

2.1.2 Climate

Melbourne has a moderate oceanic climate and is well

known for its changeable weather conditions. This is

mainly due to Melbourne's location situated on the

8

boundary of the very hot inland areas and the cold

southern ocean. This temperature differential is

most pronounced in the spring and summer months and

can cause very strong cold fronts to form. These

cold fronts can be responsible for all sorts of

severe weather from gales to severe thunderstorms

and hail, large temperature drops, and heavy rain.

Melbourne is prone to isolated convective showers

forming when a cold pool crosses the state,

especially if there is considerable daytime heating.

These showers are often heavy and can contain hail

and squalls and significant drops in temperature,

but they pass through very quickly at times with a

rapid clearing trend to sunny and relatively calm

weather and the temperature rising back to what it

was before the shower. This occurs often in the

space of minutes and can be repeated many times in a

day, giving Melbourne a reputation for having "four

seasons in one day", a phrase that is part of local

popular culture and familiar to many visitors to the

city.

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2.1.3 Demographics

Population

Sources by: Australian Bureau Statistics Website

The massive growth in population is a result of the

attraction of the inner suburbs of Melbourne for

tertiary education, employment opportunities and the

'bright lights', which results in much of the

population migrating to the City being young adults

in their late teens and twenties.

The City of Melbourne plays a unique housing role in

the metropolitan context. It attracts a large number

of overseas migrants. These migrants are primarily

made up of students studying at Melbourne

University, RMIT and other educational institutions

in the inner area of Melbourne. The City also

attracts a number of permanent overseas migrants,

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many of whom settle in areas such as Kensington and

North Melbourne.

The City also attracts large numbers of migrants

from regional Victoria, the bulk of these being

young people studying or moving to Melbourne for

lifestyle or employment reasons. The City of

Melbourne is the most ‘familiar’ part of the

metropolitan area for those not from Melbourne and

is therefore attractive to migrants not only from

regional Victoria but also from interstate. The

Middle Eastern suburbs of Melbourne also provide a

net flow of migrants to the City of Melbourne. These

can be described as lifestyle migrants moving to the

City to be closer to employment and entertainment

Melbourne City Forecast Population for 3 years (2006, 2011 & 2016) Sources by

Forecast Population

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Melbourne has a proliferation of areas where

restaurants, cafes and services of similar

international demographic establish, particularly

Indian, Thai, Vietnamese, Chinese and Malaysian

cuisines. Some of these areas include Robinson,

Walker and Foster Streets, located at Dandenong

managed by Indian people. Meanwhile Central

Springvale has been populated by the Thailand

people. Then we also can find Greek Cuisines at

located at Lonsdale Street, top end of the Melbourne

City. These multiculturalisms that have existed

within Melbourne city indicate that Melbourne is a

perfect place for us to venture into the new

business because of the product that we will sell is

consumable by all the cultures that exist in the

Melbourne.

Religion

The 2006 Census records show some 28.3% (1,018,113)

of Melbourne residents list their religious

affiliation as Catholic. The next highest responses

were No Religion (20.0%, 717,717), Anglican (12.1%,

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433,546), Eastern Orthodox (5.9%, 212,887) and the

Uniting Church (4.0%, 143,552) Buddhists, Muslims,

Jews and Hindus collectively account for 7.5% of the

population. Four out of ten Australian Jews call

Melbourne home. The city is also residence to the

largest number of Holocaust survivors of any

Australian city, indeed the highest per capita

concentration outside Israel itself. To service the

needs of the vibrant Jewish community, Melbourne's

Jewry has established multiple synagogues, which

today number over 30 along with a local Jewish

newspaper. Melbourne's largest university - Monash

University is named after prominent Jewish general

and statesman, John Monash. Meanwhile, 64% of

Melbournians consider themselves Christians. The

city has two large cathedrals - St Patrick's (Roman

Catholic), and St Paul's (Anglican). Both were built

in the Victorian era and are of considerable

heritage significance as major landmarks of the

city. There are 500,000 Muslims that call Australia

home, are noted for their diversity — from more than

13

60 countries with wildly disparate cultures The

majorities of Australian Hindus live along the

Eastern Coast of Australia and are mainly located in

Melbourne and Sydney. As a community Hindus live

relatively peacefully and in harmony with the local

populations. They have established a number of

temples and other religious meeting places and

celebrate most Hindu festivals. In 1848, the first

large group of Buddhists to come to Australia came

as part of gold rush - most of who stayed briefly

for prospecting purposes rather than mass migration.

In 1856, a temple was established in South Melbourne

by the secular Sze Yap group. The first specific

Australian Buddhist group, the Buddhist Study Group

Melbourne, was formed in Melbourne in 1938; however

it collapsed during the Second World War. Melbourne

and indeed Australia are highly secularized, with

the proportion of people identifying themselves as

Christian declining from 96% in 1901 to 64% in 2006

and those who did not state their religion or

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declared no religion rising from 2% to over 30% over

the same period.

Lifestyle

Passionately devoted to sport, and the arts, the

people of Melbourne enjoy a wealth of both in a

surprising number of venues - indoors and out. Built

on two waterways, the Yarra River and Port Philip

Bay, Melbourne has always been both a bustling sea

port and a city pre-occupied with river-bank

activities. On sunny summer morning's well-dressed

executives from nearby city offices breakfast in

groups by the water, while cyclists and joggers

follow paths hugging the river's edge. With the city

skyline as a backdrop, the scene is one of

extraordinary beauty and tranquility.

Some of Melbourne's sense of fun, and individual

character is evident during the Spring Racing

Carnival, particularly at the running of the

Melbourne Cup, when high fashion and mad hats are

the order of the day. Another fine example of

15

Melbourne at its individual best is during the

Aussie Rules footy season. Played during the winter

months, the Grand Final regularly attracts crowds in

excess of 100,000 Melbournians, each one barracking

and bawling instructions from the stands.

Melbourne has also come to be known as one of the

restaurant capitals of the world. A rich

multicultural population has contributed, and there

is barely a cultural dish that cannot be found. A

city that can play host to an international tennis

match one day, and stage an outdoor concert for the

Three Tenors the next, is just a taste of what is

available at any one time in the 'world's most

livable city'.

2.1.4 World Class Infrastructure

Victoria enjoys Australia’s most advanced and best

connected system of road, rail and marine transport

infrastructure. Furthermore, it also offers fast,

reliable and cost – effective access to the main

places. Infrastructures are vital for growing the

16

productivity of Victoria’s economy and vital to

catering for Melbourne’s rapid growth now and in

years to come. Over the past decade, Government of

Australia’s has invested in infrastructure upgraded

with investment over estimated at $4 billion in the

year of 2008 to 2009. Nowadays, since Melbourne has

becomes one of the Australia’s main attraction, the

tourism industry will compliment the development

that has taken place in Melbourne.

Besides that, Melbourne is Australia’s main

transportation hub. Almost 70% of Australia’s

population and economic activity are located in the

nation’s south east, and Melbourne. It is an ideally

located in the centre of this zone of activity. From

Melbourne, Australian and international markets can

be accessed with ease, efficiency and it is very at

reasonable cost. Furthermore, freight and logistics

industry is of critical importance to Victoria.

Air links (Aviation)

17

The Airport is located less than 20 minutes by road

from the Central Business District (CBD). Melbourne

Airport is the gateway to southern Australia with

about 25 million passengers passing through it each

year. It has the lowest cost base of any major

airport in Australia. Melbourne Airport is

Australia’s second-busiest airport and one of only

two curfew-free airports in the country. The airport

handles 350,000 tonnes of air freight a year, making

it Australasia’s largest air freight hub. The

ongoing upgrade of Terminal 2 (T2) is part of a

five-year expansion plan representing one of

Victoria’s infrastructure projects.

Port of Melbourne

The Port of Melbourne is the southern hemisphere’s

largest and busiest container port, located on the

edge of the Central Business District (CBD). It

handles nearly 40% of Australia’s container trade -

about 3,500 ships and 2.14 million containers each

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year and $90 million in exports each day.

Furthermore, the Port of Melbourne has the lowest

wharf age charges in Australia. The Port is well

connected via city bypass highways, as well as daily

rail services to Regional Victoria, Metro Melbourne,

Adelaide and southern New South Wales. Ranked,

facilities include 34 commercial berths at five

docks, river wharves, Gellibrand Pier (Williamstown)

and Station Pier (in the suburb of Port Melbourne).

Rail and roads

Melbourne’s air and port capacity is well supported

by extensive road and rail networks, boosted by

continuous government investment. More than $5

billion of major road projects are currently

underway, including the Peninsula Link project, the

M80 Ring Road Upgrade and the M1 (Monash-CityLink-

West Gate).

Telecommunications infrastructure

Australia’s has the eighth-largest

telecommunications market in the world. The market

19

is deregulated, with local and international players

providing competitively-priced services. Businesses

setting up in Melbourne can be assured of

outstanding telecommunications services, with

connections to the world via a network of satellites

and submarine fibre optic cables that ensure

seamless global business links. Melbourne recently

cemented its role as the ICT capital of Australia,

with the announcement that the National Operations

and Test Facility for the Australian National

Broadband Network (NBN) will be based at the Digital

Harbour Development in Melbourne’s Dockland. This

facility will assists Melbourne in developing and

strengthen their ICT industry that will benefit them

in telecommunication.

Melbourne Public Transport

The public transportation system in Melbourne is

privatized and comprises of trams, trains and buses.

The City Circle tram is the most convenient mode of

conveyance in the Central Business District (CBD) of

Melbourne. There are also regular bus services

20

within the city of Melbourne, and between Melbourne

and other cities in Australia.

Melbourne Health and Education facilities

Melbourne has an excellent infrastructure of private

and government hospitals. St. Vincent's Private

Hospital, The Alfred Hospital, Royal Children's

Hospital, Royal Women's Hospital and Royal Melbourne

Hospital are some of the renowned private hospitals

in Melbourne. Education in Melbourne is extremely

developed. Preschools, primary schools, secondary

schools, tertiary educational institutes impart

effective and structured courses to its students.

Melbourne infrastructure has helped Melbourne to

emerge as the premier cultural, commercial, and

sports centre of Australia. Among the others popular

universities are University of Melbourne, RMIT, New

South Wales University (NSW) and many more.

2.1.5 Government

The Government of Victoria, under the Constitution

of Australia, ceded certain legislative and judicial

21

powers to the Commonwealth, but retained complete

independence in all other areas. The Victorian

Constitution says: "the Legislature of Victoria has

full power and authority." In practice, however, the

independence of the Australian states has been

greatly eroded by the increasing financial

domination of the Commonwealth.

Victoria is governed according to the principles of

the Westminster system, a form of parliamentary

government based on the model of the United Kingdom.

Legislative power rests with the Parliament of

Victoria, which consists of the Crown, represented

by the Governor of Victoria, and the two Houses, the

Victorian Legislative Council (the upper house) and

the Victorian Legislative Assembly (the lower

house).

Executive power rests formally with the Executive

Council, which consists of the Governor and senior

ministers. In practice executive power is exercised

by the Premier of Victoria and the Cabinet, who are

appointed by the Governor, but who hold office by

22

virtue of their ability to command the support of a

majority of members of the Legislative Assembly.

Judicial power is exercised by the Supreme Court of

Victoria and a system of subordinate courts, but the

High Court of Australia and other federal courts

have overriding jurisdiction on matters which fall

under the ambit of the Australian Constitution.

2.1.6 Economy

Australia's economy is dominated by its services

sector, even though it is the agricultural and

mining sectors that account for the bulk of

Australia's exports. Australia's comparative

advantage in the export of primary products is a

reflection of the natural wealth of the Australian

continent and its small domestic market; 22 million

people occupy a continent the size of the contiguous

United States. The relative size of the

manufacturing sector has been declining for several

decades, but has now steadied at around 8.5% of GDP.

The global recovery is putting upward pressure on

23

prices for Australia's commodity exports, which is

expected to cause a substantial rise in the terms of

trade in 2010. The terms of trade were expected to

rebound by around 25% by mid-2010, injecting $30

billion into the economy and helping to reinvigorate

the mining sector and economic activity more

generally.

Australia's economic standing in the world is a

result of a commitment to best-practice

macroeconomic policy settings, including the

delegation of the conduct of monetary policy to the

independent Reserve Bank of Australia, and a broad

acceptance of prudent fiscal policy where the

government aims for fiscal balance over the economic

cycle. Economic recovery is strengthening, with GDP

forecast to grow by 3.25% in 2010-2011 and 4% in

2011-2012, leading to further reductions in the

unemployment rate.

24

Sources by Trading Economics Website

The success of monetary and fiscal stimulus will

help the budget return to surplus in 2012-2013, 3

years ahead of schedule. Net debt is expected to

peak at 6.1% of GDP in 2011-2012, considerably below

the previous forecast of 9.6% of GDP.

Meanwhile, Melbourne has a highly diversified

economy with the strength in the areas such as

Finance, manufacturing, education and research IT,

logistics and transportation, conventions and

tourism. It becomes one of the preferred locations

for the multinational company to set up their

headquarters in Melbourne. Companies such as BHP

Billiton, ANZ, Telstra and many more, chose

Melbourne because of its location that situated at

the Port Phillip that will enable the export

activities become more smother.

25

Melbourne is the home to Australia’s largest and

busiest seaport which handles more than 75% billion

in trade and 39% of the nation’s container trade.

Furthermore, Melbourne is the financial hub for

important financial centre. Banks such as National

Australia Bank (NAB) and Australia and New Zealand

Banking Group (ANZ) have their headquarters located

in Melbourne. In addition to that, two biggest

automotive companies such as Ford and Toyota have

set up their manufacturing plant that involves in

manufacturing, assembling, research and development

located at Holden.

Besides that, Melbourne also one of the major

players in ICT industry that employs around 60,000

people or in other word, it takes up to one third of

Australia’s ICT workforce that has a turnover of

$19.8 billion and export revenues of $615 million.

Tourism also plays an important role in Melbourne’s

economy. International visitor expenditure in

Victoria year ending September 2010 grew by 2.4% to

3.9 billion in which outperforming growth by other

26

places such as New South Wales (+1.7%) and

Queensland (-3.5%) and national average (+1.7%).

Australia EconomyGDP (2009 – 2010

estimated)

A$ 1.2 trillion (U.S $ 1.1

trillion) Inflation rate (year

to March 2010

2.9% per year

Reserve Bank official

interest rate (May

2010)

4.5%

Trade : Exports ($176.7 billion, 2009

estimate)--coal, iron ore,

gold, meat, wool, alumina,

wheat, machinery and transport

equipment. Major markets--China,

Japan, South Korea, India,

U.S. ($8.7 billion), and U.K.

Imports ($180.5 billion, 2009

estimate)--machinery and

transport equipment, computers

and office machines,

telecommunication equipment

and parts; crude oil and

petroleum products. Major

suppliers--China, United States

($20.05 billion), Japan,

Thailand, and Singapore.

27

Exchange Rate U.S. $1 = A$1.11 (average for

2010 of A$1 = U.S. $0.90)

28

2.2 SUMMARY

Market Intelligence Report offers findings that

Melbourne, Australia as a strategic nation to sell and

market Farm Fresh, the jackfruit jam manufacturer in

kicking off international business. Melbourne, being the

largest city in Victoria, has a culturally diverse

population. Farm Fresh also confident in selling our

jackfruit jam in Melbourne, because it has received a

steady migration from the Asian Countries people such as

Vietnam, India, Malaysia, Singapore and China. The

mixtures between different cultures have made the

Melbourne unique in its way. Since English has become the

medium of interaction in Melbourne, has made

communication become easier.

Since Melbourne functions as the capital city’s of

Victoria and located at the Port Phillip, a lot of

business and commercial activities have situation their

headquarters at Melbourne because of the accessibility

and strategic especially when it involves with the import

and export activities.

29

Besides that, the infrastructures that Melbourne has,

made this location as the easiest location to transport

the product. The good infrastructure and network have

made all type of business become possible. In Melbourne,

there are lots of Asian people that have settle or

migrated that will open up more market and expand the

business of Farm Fresh in Melbourne.

30

CHAPTER 3

BUSINESS ENVIRONMENT ANALYSIS REPORT

(BEAR)

3.0 INTRODUCTION

Australia has one of the most stable economic, political

and social environments in the region. Its government and

regulatory institutions are reliable, transparent,

impartial and internationally competitive—providing

investors with a safe and secure business framework.

Australia has been chosen by many United States and

European based corporations as the desirable hub for

their Asia Pacific expansion plans due to Australia’s

sophisticated business environment including its highly

skilled workforce, sound financial systems and overall

infrastructure. This combined with a stable government

and equally stable and developed legal system provides a

unique opportunity for foreign business to establish a

presence in the Asia Pacific region. In the context of

31

global markets, the Australian government is continuously

seeking to attract foreign businesses to form new

business ventures to the region and increase their

international investments.

3.1 BUSINESS ENVIRONMENT ANALYSIS

Before doing and entering a business in Australia, one

must analyze its business environment and market.

Understanding gained from country profiles can be used to

plan business investment or market entry in a particular

country. The insights provide ideas about key business

opportunities. These are often factors which are beyond

the control or influence of a business, however are

important to be aware of when doing product development,

business or strategy planning.

PESTLE is an analysis of the external macro environment

(the big picture) in which a business operates and also a

useful tool for understanding the industry situation as a

whole, and is often used in conjunction with a strategic

SWOT analysis (Strengths, Weaknesses, Opportunities and

Threats analysis) to assess the situation of an

32

individual business. This analysis will cover six major

areas or segments, which are the politic, economic,

social, technology, legal and also the environment.

Political section provides understanding about the

political system and key figures relevant to business in

the country and governance indicators. Economic section

deals with the economic story of a country that provides

a balanced assessment of significant macro-economic

issues. Social section enables understanding of customer

demographics through income distribution, rural-urban

segmentation and centres of affluence, healthcare and

educational scenario. Technological section provides

strategic information on technology and telecom,

technological laws and policies, technological gaps,

patents and opportunity sectors in the country. Legal

section provides information about the legal structure,

corporate laws, laws to start a new business and the tax

regime. And lastly, environmental section provides

information on the country's performance on environmental

indicators and policies.

3.1.1 The Political Environment in Australia

33

The political environment in a country is how and to

what degree a government intervenes in the economy.

Political factors include areas such as tax policy,

labour law, environmental law, trade restrictions,

tariffs, and political stability. Besides that,

governments have great influence on the health,

education and infrastructure of a nation. It is

therefore imperative to understand the political

climate of Australia before operating a business in

the country.

Australia is an independent nation within the

Commonwealth. Queen Elizabeth II is the head of

state and since 1973 has been officially styled

"Queen of Australia." The Queen is represented

throughout Australia by a governor general and in

each state by a governor.

The Commonwealth government was created with a

Constitution patterned partly on the U.S.

Constitution, although it does not include a "bill

of rights." The powers of the Commonwealth are

specifically defined in the Constitution, and the

34

residual powers remain with the states. The

Politics of Australia take place within the

framework of parliamentary democracy. Australia is a

federation and a constitutional monarchy, and

Australians elect state and territory legislatures

based on the Westminster tradition, as well as a

bicameral Parliament of Australia, which is a hybrid

of Westminster practices with the uniquely

federalist element of the Australian Senate.

Australia is made up of six states and two

territories. Each state and territory has its own

parliament, flag and floral emblem. Australia became

a federated nation after the union of the six

colonies on 1 January 1901. Bound by one parliament,

one constitution and one flag, Australia celebrated

its Centenary of Federation in 2001.

Each state is headed by a premier, who is the leader

of the party with a majority or a working minority

in the lower house of the state legislature.

Australia's two self-governing territories

have political systems similar to those of the

35

states. The Territories are headed by Chief

Ministers who are the leader of the party with a

majority or a working minority in the territories'

legislature.

There are two major political groups that usually

form government, federally and in the states: the

Australian Labour Party, and the Coalition which is

a formal grouping of the Liberal Party and its minor

partner, the National Party. Independent members and

several minor parties—including the Greens and the

Australian Democrats—have achieved representation in

Australian parliaments, mostly in upper houses.

Following a party-room leadership challenge, Julia

Gillard became the first female Prime Minister in

June 2010. The last federal election was held on 21

August 2010 and resulted in the first hung

parliament in over 50 years. Gillard was able to

form a minority Labour government with the support

of independents.

36

The Premier of Victoria is the leader of the

political party or coalition with the most seats in

the Legislative Assembly. The Premier is the public

face of government and, with cabinet, sets the

legislative and political agenda. Cabinet consists

of representatives elected to either house of

parliament. It is responsible for managing areas of

government that are not exclusively the

Commonwealth's, by the Australian Constitution, such

as education, health and law enforcement. The

current Premier of Victoria is Ted Baillieu.

Executive authority is vested in the Governor of

Victoria who represents and is appointed by Queen

Elizabeth II. The post is usually filled by a

retired prominent Victorian. The governor acts on

the advice of the premier and cabinet. The current

Governor of Victoria is David de Kretser.

Victoria has a written constitution. Enacted in

1975, but based on the 1855 colonial constitution,

it establishes the parliament as the state's law-

making body for matters coming under state

37

responsibility. The Victorian Constitution can be

amended by the parliament of Victoria. Under new

provisions to be enacted, changes to the Victorian

Constitution will be subjected to a plebiscite of

votes, voting in a referendum.

Compared to other Asian countries, Australia is

regarded as having a very low risk of political

instability. Australia ranked third in the world for

political stability in the IMD World Competitiveness

Yearbook 2010 and has been ranked in the top four

countries for this indicator for the last 11 years.

At present, Australia has a rating of 9.24 out of 10

for risk of political instability in the year 2010,

in which 0 indicates a very high risk and 10

indicating a very low risk. With such a stable

political framework, Australia is a safe investment

location.

3.1.2 The Economic Environment in Australia

The economic environment in each country impacts how

businesses operate and make decisions. Economic

38

factors include economic growth, interest rates,

exchange rates and the inflation rate. Australia is

a developed, modern market economy with a GDP of

approximately $1 trillion USD. In the year 2009,

Australia was the 13th largest national economy by

nominal GDP and the 17th largest measured by PPP

adjusted GDP, representing about 1.7% of the world

economy. Australia’s economy is dominated by its

service sector, representing 68% of the country’s

GDP. However, the agricultural and mining sectors,

making up 10% of the GDP combined, account for 57%

of the nation’s exports. Australia ranks as the 21st

largest importer and 23rd largest exporter in the

world.

In the 1980s, Australia was an inward-looking,

highly protected, and regulated marketplace. Since

then, the country has undertaken significant

structural reform of its economy and transformed

itself to become an open, internationally

competitive, export-oriented economy. Key economic

reforms include reducing high tariffs and other

39

protective barriers to free trade, floating the

Australian dollar, deregulating the financial

services sector, including liberalising access for

foreign banks, increasing flexibility in the labour

market, reducing duplication and increasing

efficiency between the federal and state branches of

the government. Besides that, other steps taken

include privatising many government-owned

monopolies, and reforming the taxation system,

including introducing a broad-based Goods and

Services Tax (GST) and large reductions in income

tax rates.

Today, Australia has one of the most outstanding

economies; high-growth, low-inflation, low interest

rate economy. Australia has had a high standard of

living since the nineteenth century. The country’s

economic, political and social environments are one

of the most stable in the region, which has led to

increased investment from overseas in the recent

years. As a result of major diversification in

Australia’s export base, the country is now not only

40

a commodity exporter; it also has sophisticated

manufacturing and service industries.

The state of Victoria has the largest economy in

Australia after New South Wales, accounting for a

quarter of the nation's gross domestic product. The

total gross state product (GSP) at current prices

for Victoria was at just over A$222 billion, with a

GSP per capita of A$44,443. The economy grew by 3.4%

in 2004, less than the Australian average of 5.2%.

In 2010, national GDP is US$983 billion, with

Victoria contributing about US$210 billion of it.

The most recent Victoria economic indicators show a

growth rate revised up 0.2 per cent to 2.5 per cent

for 2009-2010, buoyed up by a strong banking policy.

Finance, insurance and property services form

Victoria's largest income producing sector, while

the community, social and personal services sector

is the state's biggest employer. Despite the shift

towards service industries, the troubled

manufacturing sector remains Victoria's single

41

largest employer and income producer. As a result of

job losses in declining sectors such as

manufacturing, Victoria has the highest unemployment

rate in Australia as of September 2009.

Key investment areas include:

Automotive: Melbourne’s history of more than 100 years

in vehicle manufacturing has resulted in generations

of expertise and broad industry capability. It’s one

of the few locations in the world that can take a

vehicle through the entire development spectrum,

from concept to complete manufacture. This has

attracted global companies such as General Motors,

Toyota, Ford, Kenworth and Iveco to set up in the

state. In short, Victoria offers the highest quality

in the Asia-Pacific region at competitive operating

costs.

Business Services: Melbourne is a premier location in

the Asia-Pacific for high-value shared services

including business process outsourcing and knowledge

process outsourcing. The city enjoys a reputation

42

for high-quality professional research and

consultancy services including financial, legal,

media and publishing, engineering, and medical

services. Recent global studies by KMPG and Gartner

highlight Australia’s strengths for Knowledge

Process Outsourcing (KPO) and offshore services:

High current availability and pipeline of talent;

low infrastructure costs; and greater political and

economic stability and security than other Asia-

Pacific locations.

Financial Services: Australia’s financial services sector

is resilient and booming. The strength of the

nation’s markets during the Global Financial Crisis

was highlighted by the World Economic Forum, which

in 2009 ranked Australia as the world’s second-best

financial centre after the UK. Australia was the

only country in the top 20 to improve its ranking.

Victoria offers expertise in pension funds

management and global financial services, as well as

financial services research, education and training.

43

Food & Beverage: Victoria’s food processing industry

is renowned for high quality raw ingredients,

excellent innovation infrastructure and seamless 24-

hour access to global markets. They’re the reasons

why major global companies like Cadbury, Mars Foods,

Heinz, Kraft Foods, Pepsi, Nestlé, Unilever and

Yakult have operations in Victoria. Melbourne’s

multicultural population was instrumental in

creating a domestic market for foods from around the

world. This demand led to the formation of a strong

export industry, and turned Melbourne into

Australia’s food and wine capital.

Australia is a member of the APEC, G20, OECD and WTO

organizations. The country has also entered into

free trade agreements with ASEAN, Chile, New

Zealand, Malaysia, Singapore, Thailand, and the

United States. On March 3rd 2011, the Prime Minister

of Australia requested to the Malaysian Prime

Minister to expedite the FTA talks and signing

between the two countries.

3.1.3 The Social Environment in Australia44

The social environment in a country addresses its

consumer attitudes and opinions, their buying

patterns and trends, lifestyle changes, demographics

(age, gender, race and family size), media and

broadcasting views, health and living standards,

education, working life, and also other aspect of

the social life.

Australia’s diverse culture and lifestyle reflect

its liberal democratic traditions and values,

geographic closeness to the Asia–Pacific region and

the social and cultural influences of the millions

of migrants who have settled in Australia since

World War II.

Australia is a product of a unique blend of

established traditions and new influences. The

country’s original inhabitants, the Aboriginal and

Torres Strait Islander peoples, are the custodians

of one of the world’s oldest continuing cultural

traditions. They have been living in Australia for

45

at least 40 000 years and possibly up to 60 000

years.  

The rest of Australia’s people are migrants or

descendants of migrants who have arrived in

Australia from about 200 countries since Great

Britain established the first European settlement at

Sydney Cove in 1788.

In 1945, Australia’s population was around 7 million

people and was mainly Anglo–Celtic. Since then, more

than 6.5 million migrants, including 675 000

refugees, have settled in Australia, significantly

broadening its social and cultural profile.

Today Australia has a population of more than 21

million people. More than 43 per cent of Australians

either were born overseas themselves or have one

parent who was born overseas. Australia’s Indigenous

population is estimated at 483 000, or 2.3 per cent

of the total.

Many of the people who have come to Australia since

1945 were motivated by a commitment to family, or a

46

desire to escape poverty, war or persecution. The

first waves of migrants and refugees came mostly

from Europe. Subsequent waves have come from the

Asia–Pacific region, the Middle East and Africa.

Migrants have enriched almost every aspect of

Australian life, from business to the arts, from

cooking to comedy and from science to sport. The

Australian society is looked upon as a highly

tolerant society that has accommodated people with

diverse cultural backgrounds. In this society, each

individual is given his space to retain and share

their cultural beliefs and practices. All this has

evolved a unique pattern of socializing where the

rights of others are respected as your own.

Shared values

The defining feature of today’s Australia is not

only the cultural diversity of its people, but the

extent to which they are united by an overriding and

unifying commitment to Australia.

47

Within the framework of Australia’s laws, all

Australians have the right to express their culture

and beliefs and to participate freely in Australia’s

national life.

At the same time, everyone is expected to uphold the

principles and shared values that support

Australia’s way of life. These include:

respect for equal worth, dignity and freedom of

the individual

freedom of speech and association

freedom of religion and a secular government

support for parliamentary democracy and the

rule of law

equality under the law

equality of men and women

equality of opportunity

peacefulness

a spirit of egalitarianism that embraces

tolerance, mutual respect, and compassion for

those in need. Australia also holds firmly to

the belief that no one should be disadvantaged

48

on the basis of their country of birth,

cultural heritage, language, gender or

religious belief.

Language

All people in Australia are encouraged to learn

English, which is the national language and an

important unifying element of Australian society.

However, languages other than English are also

valued. In fact, more than 15 per cent of

Australians speak languages other than English at

home.

The most commonly spoken languages after English are

Italian, Greek, Cantonese, Arabic, Vietnamese and

Mandarin. Australians speak more than 200 languages,

including Indigenous Australian languages.

Victoria is home to 5.5 million people with four

million living in the capital city, Melbourne.

Consistently ranked as one of the world’s three most

liveable cities by the Economist Intelligence Unit,

49

Melbourne is Australia’s fastest growing capital

city. Melbourne is a comparably young city with 48%

of people under 35 years of age.

Melbournians come from more than 200 nations, and

over half were either born overseas or have a parent

who was born overseas making Melbourne one of the

world’s most multicultural cities. More than a

quarter of Melbournians speak a language other than

English at home.

A combination of this multicultural diversity and a

temperate climate has translated into Melbournians

love of fine dining, arts and culture, sports and

the outdoors.

Australia's political and economic advantages are

complemented by its welcoming attitude and excellent

quality of social life and healthcare. In 2009,

Australia’s quality of life was ranked 6th in the

world out of 57 key economies, ahead of New Zealand,

the USA and the UK. The country ranked second on the

UNDP Human Development Index 2009, behind only

50

Norway, and Australia's life expectancy (81 years)

was the fifth highest in the world. The level of

access to healthcare professionals and services in

Australia is also amongst the highest in the world.

Australians’ health is improving in some ways,

children born in 1999 are likely to live three more

years on average than children born in 1990, and

they are now amongst the longest-lived people in the

world. Because of the concern of healthcare, the

medical practice has become increasingly focused on

improving the quality of life, rather than simply

increasing its quantity. With one of the highest

standards of living in the world, Australia offers a

superb climate, a unique and beautiful environments,

and quality social and cultural infrastructures. The

cost of living in the capital cities is also lower

than in most other major capitals worldwide,

including Tokyo, Hong Kong, New York City,

Singapore, London, Los Angeles and Dubai.

The print and broadcast media is robust and lively,

with about 1,200 lifestyle and other magazines,

51

among the most per capita in the world, which can

cater for all tastes. Overall, there are 2 national

and 10 state/territory daily newspapers, 37 regional

dailies and 470 other regional and suburban

newspapers. Meanwhile, 99% of Australian households

have a television, and all households have at least

one radio. Approximately 25% of Australian

households had access to pay television services by

the end of 2005. There are two media outlets (public

broadcasters) in Australia which are publicly

funded: the Australian Broadcasting Corporation

(ABC) and the Special Broadcasting Service (SBS).

Both broadcast on free-to-air television, radio and

online, and they are owned by the Australian

Government.

52

3.1.4 The Technology Environment in Australia

During the latter decades of the 20th century there

has been an increasingly rapid transformation of

cities which will continue into the 21st century. It

will ultimately represent a transition at least as

profound as that of earlier societal shifts such as

that from an agrarian to an industrial society. The

present transition is to an informational society.

Key drivers, as with previous societal shifts, have

been primarily associated with revolutionary

technological and economic change.

The development of telecommunications, information

technologies and fast transport and the shift to an

information economy is producing further changes in

scale and form including reversal of certain

previous trends. Industries, particularly

manufacturing, are moving to the suburbs for

increased space and access to arterial roads,

freeways, interstate highway networks, transport

hubs, component suppliers and low income labour.

53

Services, particularly consumer services, are

expanding and following people into the suburbs.

Retail activities are also moving to the suburbs.

Back offices of larger companies are similarly

moving to cheaper space and less congested roads and

streets in suburban areas. Some activities such as

producer services, which are information intensive

services such as those provided by managers,

administrators and the professions, are

concentrating in the cores of the major cities, with

major corporate headquarters and/or offices of

overseas firms.

An interesting feature is that the time people are

prepared to spend in travelling to and from work has

remained essentially invariant throughout. With

essentially constant travel time budgets (on

average, 30 minutes commuting either way between

residence and workplace) the size of the city has

been influenced by the distance which can be

traveled within that time budget. Thus, with each

transition, an increase in travel speed has been

54

provided by new technology and this has facilitated

an increase in urban scale, with transition from

walking city to transit city to automobile city to

telematic city. Further substitutions of destination

and route as well as mode have helped maintain these

travel time budgets as city size has increased.

Five key global transport infrastructure networks

can be identified which have led to long periods of

economic expansion and urban development. These are:

canals (turnpikes), railways (streets), seaports

(water, gas, and telegraph), highways (electricity,

radio, telephone) and airports (telecommunications,

computers). The latest era is envisaged to span a

period from the 1980s through to the mid– 21st

century. Each generation of infrastructure has

provided new opportunities for restructuring space.

Consequently, they are also associated with

distinctive urban forms, all of which are in

evidence to a greater or lesser extent in cities

such as Sydney and Melbourne (the high density

walking city; typically the historic cores of modern

55

cities; the transit city with its radial train and

tram networks and associated residential

development;).

The latest logistical revolution we are now

beginning to experience embodies growth in

information processing and communication capacity

and their convergence; an expansion of the knowledge

base; and further improvements to the air transport

system. These are the technologies which are

fundamental to the continued growth of all sectors

of the economy and in particular the information

sector. The increased importance of information to

urban and regional economies is evident from the

continued growth of the information sector in the

economic base of all major metropolitan areas in

Australia. Their transformation has been one from

centres of production and distribution of material

goods, to centres of information exchange, service

production and consumption as well as manufacturing.

The evolution to a service- and information-oriented

society should continue to stimulate demands for

56

telecommunications and high-speed transport

infrastructures given that information is a key

factor in production across all sectors of the

economy.

3.1.5 The Environment in Australia

The environment concludes all aspects of its

ecological and environmental issues, environmental

regulations and any other global factors for

Australia. Occupying an entire continent of some 7.6

million square kilometres, Australia is the sixth

largest country in the world. Its ocean territory is

the world’s third largest, spanning three oceans and

covering around 12 million square kilometres. Nearly

seven million square kilometres, or 91 per cent of

Australia, is covered by native vegetation. Although

this figure may seem high, many of Australia’s

desert landscapes are covered by native plants such

as saltbush, albeit sparsely. Australia is one of

the most urbanised and coast-dwelling populations in

the world. More than 80 per cent of Australians live

within 100 kilometres of the coast. Australia's

57

unique environment has many native plants, animals

and birds that exist nowhere else in the world. The

country has a real commitment to conserving its

natural heritage and has a range of protection

procedures in place. Despite the vast size of the

continent however, the majority of Australians live

on the coast and in major cities - around 75% of

Australia's population lives in urban areas.

Australia is a natural leader in addressing

environmental challenges across a range of climatic

zones and topographies, giving rise to a world-class

environment and sustainability industry. Australia’s

environment industry has an annual turnover

exceeding AUD$17 billion and has more than 3000

companies providing technologies, infrastructure,

systems, advice and expertise. As higher standards

are mandated around the world, Australia is

positioning itself to deliver its cutting-edge

technology and service solutions to environmental

challenges in both developed and developing nations.

The type of industry is perhaps best known for its

58

water, sanitation, and waste management

infrastructure capabilities, as well as its cleaner

production and environmental management technologies

and services.

Australia is the driest inhabited continent on

earth. Its interior has one of the lowest rainfalls

in the world and about three-quarters of the land is

arid or semi-arid. These arid areas extend from the

large central deserts to the Western coast. Soils in

these areas are characteristically very infertile

compared to other deserts of comparable aridity.

This has presented Australians with the challenge of

how best to manage the variety of regions in the

continent possesses to meet the competing demands of

agriculture, economy and conservation. The country

is one of the world’s least densely populated

countries (after Mongolia and Namibia), with fewer

than three people per square kilometre, but the

effects of climate change have been felt across the

continent. From 1910 to 2004, average temperatures

in Australia rose 0.9°C. The country has experienced

59

more heat waves and fewer frosts. Since 1950, annual

rainfall has declined on the eastern seaboard and in

the south of the continent, but increased in the

northwest. Droughts have become more intense and

extreme rainfall events have increased in the

northeast and southwest since the early 1970s.

3.1.6 The Legal Environment in Australia

The Australian legal system is based on a

fundamental belief in the rule of law, justice and

the independence of the judiciary. All people

(Australians and non-Australians) are treated

equally before the law and safeguards exist to

ensure that people are not treated arbitrarily or

unfairly by governments or officials. Principles

such as procedural fairness, judicial precedent and

the separation of powers are fundamental to

Australia’s legal system.

The common law system, as developed in the United

Kingdom, forms the basis of Australian

jurisprudence. It is distinct from the civil law

60

systems that operate in Europe, South America and

Japan, which are derived from Roman law. Other

countries that employ variations of the common law

system are the United States, Canada, New Zealand,

Malaysia and India.

The federal government established the International

Legal Services Advisory Council in 1990 to promote

the globalization of legal services. The council

seeks to promote understanding of different

countries’ laws, legal systems and legal

institutions, particularly in the areas of trade,

business and international law. It also contributes

to the development of legal institutions, education

and training, and legal interchanges and contacts.

Australia is a party to an extensive range of

treaties, which are the formal instruments of

international law. Australia is currently a

signatory to agreements on a wide and expanding

range of matters, including with respect to postal,

shipping, social security and health arrangements,

defense and security, nuclear non-proliferation, the

61

environment, civil aviation, maritime delimitation

and technological exchanges, and agreements designed

to establish universal standards for the treatment

of civilians in times of war. Australia has been

heavily involved in international measures to outlaw

the use of weapons of mass destruction. Australia

has also been actively engaged in work on aspects of

the law of the sea and the international trading

system.

Australia has a worldwide reputation for producing

superior quality, premium food. Australian food

producers are committed to providing the highest

international standards of quality management and

food safety.

The value of Australian food exports declined by

around 3 per cent in 2006–07 to $23.3 billion

compared with the previous year. Food exports

reached a peak of $30.8 billion (2006–07 dollars) in

2001–02 and have been declining since, largely due

62

to drought and changes in import demand from

overseas markets.

Meat and grains have consistently been the two

largest export categories, with meat accounting for

30 per cent of the value of food exports in 2006–07

and grains nearly 15 per cent. Wine and dairy

exports have also grown significantly in recent

years, with wine accounting for nearly 13 per cent

of exports in 2006–07, and dairy nearly 10 per cent.

Australia’s major markets for exports are Japan and

the United States, making up 20 per cent and 13 per

cent respectively. Since 1990–91, there has also

been an increased share of exports going to

Indonesia (from 2 per cent in 1990–91 to 7 per cent

in 2006–07), the Republic of Korea (4 per cent to 8

per cent), New Zealand and the United Kingdom (both

2 per cent to 5 per cent). Australia has benefited

from its capacity to supply high-quality food

products to Pacific Rim countries and to more

63

distant markets such as Saudi Arabia and the United

Arab Emirates.

Because of the business and product compliance

requirements, companies that are doing business in

Australia need to ensure their existing products

comply with the Trade Practices Act and State or

Territory fair trading laws. The three key

compliance areas are:

1. Labeling

The CER agreement means that New Zealand

packaging and labelling requirements are

generally acceptable in Australia. EAN and

barcodes are applicable in both countries. EAN

is a multi-industry system for identifying

products as they move through the global supply

chain. Information about labels required by

Customs under the Commerce (trade description)

can be found on the Australian Legal

Information Institute website

www.austlii.edu.au or at the Australian

64

Competition and Consumer Commission website

www.accc.gov.au.

65

2. Warranties and refund policies

Australian legislation requires that a

product must perform according to its sales

description. A product can be claimed against

even if a warranty is not officially offered.

Warranties also apply to services. If a

retailer needs to replace the product due to

faults, the supplier is required to either:

Replace the good

Cover the costs of obtaining an equivalent

good

Cover the costs of repairing the good.

3. Product safety and liability

Australian product liability legislation makes

manufacturers, distributors and/or retailers

legally responsible for the safety of the

products they make and sell. If a customer

suffers an injury or their property is damaged

as a result of faulty goods, then they can seek

compensation from the manufacturer, retailer or

66

distributor. Companies should ensure the

following:

Products meet safety standards. Goods

comply with particular performance,

composition, contents, methods of

manufacture or processing, design

construction, finish or packaging rules.

Warnings are placed on packaging. Products

have clear usage instruction, especially

if there is any possibility

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3.2 SUMMARY

Business Environment Analysis Report concludes that

Australia has been chosen by many countries as the

desirable hub for their Asia Pacific expansion plans due

to Australia’s sophisticated business environment

including its highly skilled workforce, sound financial

systems and overall infrastructure. This combined with a

stable government and equally stable and developed legal

system provides a unique opportunity for foreign business

to establish a presence in the Asia Pacific region. In

the context of global markets, the Australian government

is continuously seeking to attract foreign business to

the region.

Besides that, Australia provides a time zone that bridges

the closing of the US and the opening of the European

markets. With the Australian business day overlapping

those of the US and Europe, firms that seek to operate

internationally 24 hours a day use this time zone to

their advantage. Consequently, Australia is rapidly

becoming the customer support centre for the region.

68

Australia’s ease of interaction and cultural affinity

allows businesses to seamlessly integrate business

activities while operating within the same time zone as

major Asian markets. The time difference between

Australia and much of Asia, including Singapore, Hong

Kong and Malaysia, is only 2 to 3 hours. The ability of

companies to service their Asian clients in 'real time'

is an attractive advantage. Combined with advanced

transport and communications networks, Australian-based

companies have the edge in servicing Asian markets

quickly and effectively. With around 47 per cent of

global trade now focused in the Asian-Pacific area

according to the Australian Government Agency, Invest

Australia, Australia's popularity as a regional hub is

well justified. For businesses wishing to compete on a

global scale, the time to do business in Australia is

now.

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CHAPTER 4

REPORT ON OPPORTUNITIES FOR MARKET ENTRY

(ROME)

4.0 INTRODUCTION

Farm Fresh devices to go into Australian market mainly

Melbourne to market our service. The decision to enter

Australia is made after studying future development and

environmental effect on our service.

Melbourne is the capital and most populous city in the

state of Victoria, and the second most populous city in

Australia. The Melbourne City Centre (also known as the

"Central Business District" or "CBD is the hub of the

greater geographical area or "metropolitan area" and the

Census statistical division—of which "Melbourne" is the

common name. As of June 2010, the greater geographical

area had an approximate population of four million.

Inhabitants of Melbourne are called Melbournians.

70

4.1 MARKET SIZING AND SEGMENTATION

4.1.1 Market Demographics

The profiles for the typical Farm Fresh customers

consist of the following geographical, demographic,

and behaviour factors:

i. Geographical

For the purpose of this research, the areas have

been downsized because it is easier to identify

the potential customers for our product. This

will eventually help us in monitoring the buying

habits of our customers. The area that was

considered was Melbourne. The targeted

population was Asian community and local

Australians from this area, who likes tropical

flavored foods.

ii. Demographics

71

Melbourne is a major business centre and the

city's multicultural population makes it

attractive to international business. The city

has a huge variety of multicultural ethnic

populations within Australia, such as Chinese,

Vietnamese, Middle Eastern and Indian

communities. Which makes it easy for our product

Jack Fruit Jam to enter into Melbourne, as it is

Jack Fruit is a tropical fruit.

iii. Behavioral Factors

Local Australians are very patriotic in their

buying habits; they prefer to consume local food

products. But however, we are focusing on

differentiation of product. Our product is very

unique and different it is, because of the

health contains and the use of tropical fruit,

‘Jack Fruit’. There are no Jam produces in

Australia that produces Jack Fruit Jam;

therefore it acts as an advantage for our

business development market opportunity. We

believe that we can break through on the

72

stereotyping by local Australians towards Asian

product, because of our alliance with their

major Jam produces Sunrise, based in Australia.

4.2 CUSTOMERS WANTS, NEEDS, PREFERENCE AND BEHAVIOUR

4.2.1 Market Needs

Flourishing businesses and products are built on a

thorough definition of their markets. In general,

needs are basic human necessities. This need becomes

specific objects that might satisfy the need of an

individual. Understanding customers’ needs and wants

are not always easy. Some customers have certain

needs of which they are not fully conscious or they

cannot articulate these needs. Customers today are

more demanding than they were few years ago; they

usually have more choices at their disposal in terms

of prices and benefits, since the market is very

transparent, and they also have more information at

their disposal about what is good and what is not.

They insist on having good products that are able to

meet their specific needs.

73

As this evolution occurs, the importance of

understanding the target audience from the inside

out grows exponentially. To know better on the

consumer needs, the optimal way to approach and

convince them has to be mastered. The ways which

customers are accessing information today are

changing dramatically. Customers are no longer just

passive recipients of information; the Internet has

enabled them to be active seekers of information.

Targeting consumers effectively means understanding

their particular preferences:

what are their most important and trusted

sources of information

where and when they may be most and least

receptive to advertising and other messaging

whether the positioning fits with their

feelings about the products

Australian people are less health conscious people;

Traditional diets of Australians were rich in

nutrients and low in fat. Modern urban diets tend to

74

be high in fat and sugar, but low in nutrition. High

fat, low fiber diets have been linked to a number of

disorders including obesity, cardiovascular disease

and diabetes. Our Jam is a healthy product we focus

on the health benefits of the Jack fruits. There we

want create a change in the market and advertise on

buying more healthy jam.

Jackfruit contains Vitamin A, Vitamin C, thiamin,

riboflavin, calcium, potassium, iron, sodium, zinc

and niacin among many other nutrients. Jackfruit

also benefits one's health as it has a low caloric

content: 100 grams of jackfruit only contains 94

calories. The fruit is a rich source of potassium

with 303 milligram found in 100 grams of jackfruit.

Studies show that food rich in potassium helps to

lower blood pressure. Therefore, jackfruit has the

health benefit of providing relief for anyone who

suffers from high blood pressure. Another benefit of

eating jackfruit is that it is a good source of

Vitamin C. The human body does not make Vitamin C

naturally so we must eat food that contains Vitamin

75

C to reap its health benefits. The health benefits

of Vitamin C are that it is an antioxidant that

protects the body against free radicals, Vitamin C

holds the cells in our bodies together, and Vitamin

C strengthens our immune systems and keeps our gums

healthy. Jackfruit contains phytonutrients: lignans,

isoflavones and saponins which have health benefits

that are wide ranging. These phytonutrients have

anti-cancer, antihypertensive, anti-ulcer and anti-

ageing properties. The phytonutrients found in

jackfruit, therefore, can prevent cancer cells from

forming in the body, can lower blood pressure, can

fight against stomach ulcers and can slow down the

degeneration of cells that make the skin look young

and vital.

4.2.2 Market Growth

As for Farm Fresh, since there are no produces that

sells Jack Fruit Jam, the prices of our product is

well in the affordable which, are suitable for every

range of groups. More people are looking healthier

alternatives in their choice of products. Besides

76

that, the availability of Information Technology

such a television, Internet and so on will also help

Farm Fresh in expanding its business continuously.

With the proper amount of exposures, the growth of

our product will continue to grow steadily with

time.

4.3 EMERGING AND ESTABLISHING COMPETITION

There is one major competitor that has been indicated

that they produce Jam. Victorian Brewery have been the

market from 1858, The brewery shut down in 1876, with the

building and land then being purchased the same year by

Robert Wright and Robert Payne, who started the Victoria

Preserving Company. Jam production continued in the

building for this firm until 1970.

At a cost of $20 million the site was redeveloped and

opened on 9 October 1979 as a shopping centre, catering

to modern fashions, and in 1995 was redeveloped as the

Jam Factory. Farm Fresh makes a product which is

different compared with our competitors through our

tropical team product.

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Hence, to build a competitive advantage over the closest

competitors, Farm Fresh banks on the quality products.

The business has a big potential and it can be expanded

further. Our company will ensure that the product that we

provide our customers are secured, of high quality and

have health guaranties. The Ministry of Health gives

support on the ingredients that are used by our company.

A doctor will be consulted on the company services before

it will be released to the markets. Farm Fresh will

distribute the customer satisfaction forms to the

customers after they have consumed the product. We have a

toll free number that can be contacted at any time for

feed-back. From here, our company can determine the

customer’s level of satisfaction and make further

improvements. All of the ingredients are halal and can be

use by all races and religions.

4.4 MARKET ENTRY STRATEGY

The broad strategy refers to the regenerative innovation

with respect to the company’s traditional values. This

calls for the new strategy on product innovation,

distribution channel, sales promotion, and new market

78

development. The entry to Australian market, in

particular, requires properly equipped plan as presented

below.

4.4.1 Learning Australian Business Culture

When working in the global commercial environment,

knowledge of the impact of cultural differences is

one of the keys to international business success.

Improving levels of cultural awareness can help

companies build international competencies and

enable individuals to become more globally

sensitive. The culture-focused country profiles

contained in the World Business Culture website are

your passport to international business expertise.

Each country profile contains information on a range

of topics of immediate commercial relevance to

anybody working in a global organization or studying

international trade. The information contained in

this site has been compiled by some of the world's

leading experts on global business culture who have

many years of practical international experience.

Australian business culture are coupled with this

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trend towards an egalitarian interpersonal approach

is the influence exerted on Australian business

thinking of US business modeling, some people would

argue that this influence has been too slavishly

followed whilst others argue the need for a more US-

style entrepreneurial, risk-taking attitude amongst

Australian business people.

Similarly, Australian business contacts seem

willfully disrespectful of hierarchy when working

internationally - they are not being rude, merely

acting in a consistent Australian manner. Farm farms

awareness of Australian business culture which will

help us to interact more effectively with Australian

clients and colleagues.

a. Australia is relatively geographically

remote, economically successful and its

citizens have a comparatively high standard of

living and open to new ideas from overseas.

b. Australians prize their egalitarian

approach to life- people should not try to make

out that they are better than others.

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c. This egalitarian world view is mirrored in

many aspects of Australian business culture

from corporate structures to management and

communication style.

d. Australian corporate structures are matrix

oriented, without too many layers of

management. Everybody expects to have an input

into the decision-making process.

e. Decision-making meetings can be quite

animated and it is expected that people will

say exactly what they think without necessarily

having to defer automatically to the boss'

viewpoint.

f. Australians value punctuality as a

professional necessity

4.4.2 Choosing Appropriate Entry Strategy

We have chosen the strategy to work with a local

partner that gives us advantages over the follower

strategy in terms of initial market costs and

questionable effectiveness. As for pioneer entrants,

some factors such as demand uncertainty, entry

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scale, advertising intensity, entry time of

followers, and the scope of the economy are all

risk. We can benefit from working with a local

partner, the benefits are such as:

a. Enter a target market rapidly; aligning

yourself with an established and respected

market leader can give us immediate credibility

so that it is easier to develop business. Also,

we may be able to subcontract to our local

partner and so be earning revenues almost

immediately.

b. Reduce operating costs; sharing office space,

using local staff, and reducing travel and

communications costs will all help reduce our

costs.

c. Meet regulatory requirements; Australian

markets is hard to enter it require us to have

a local presence or joint venture agreement

with a local firm, or a locally-issued license,

in order to sell into their market.

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d. Help increase your market knowledge quickly;

Working with a local partner is an easy way to

make sure that we learn and understand local

culture and business practices.

e. Expand our network; we are able to access our

partner’s contact network and so become known

more quickly.

4.4.4 Farm Fresh SWOT Analysis

Although the company is doing fine currently, but

facing the intensive competition, the limited

Malaysian market is seen more and more hard. Under

this circumstance, it is necessary to consider

developing new market. This section analyses the

company in terms of Malaysian Jack Fruit Jam, market

by adopting SWOT approach.

Strengths Weaknesses

a. Strong brand nameb. Focus on product

differentiation

a. Products innovationb. Location of your

business

Opportunities Threats

a. A new a. Low-end products

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international, Australian market

b. Increasing demand for organic healthy products

b. Product innovationc. Rising raw material

prices

Strengths

Strong brand name

Farm Fresh has been marketed a Malaysian

well known brand throughout the years. The

consumers are still willing to buy our

products even when there has been no

innovation is due to the, brand loyalty

towards our product by Malaysian consumers.

This means that the brand to a certain

extent represents a high quality product.

This gives the company the chance and

confidence to develop new products and entry

to new market.

Focus on product differentiation

Farm Fresh focus on producing a product

flavor that is different compared to our

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competitors. This gives us and advantage,

whereby customer will purchase our product

because of our different flavors; they can

purchase it from our competitions.

Weaknesses

Products innovation

The company is known as a traditional jam

produces, with its traditional products by

India- Kerala community. It does pay

attention to suiting consumers’ taste. This

could result in a situation where it will

lose its segment consumer group like baby

boomers.

Poor operate system

The tightly control over the overheads has

been a major weaknesses that prevents the

company growth. The company’s investment in

research is extremely low. Meanwhile, its

advertisement costs are also seen as the

lowest among its competitors. In addition,85

the company’s management system is also seen

as poor example.

Opportunities

Positive outlook for the Australian market

Australia response to foreign products and

services is extremely open. Australia's

accession to the WTO will have a positive

impact on the service industry overall.

There will be more foreign imports of

advanced technology, and traditional

machinery will be replaced. The quality of

products will improve as a result.

Improvements to the distribution

infrastructure will benefit sales of

products and services, as they become more

widely available. With the further opening

up of the franchise system, more

international brand launches are expected

through foreign-owned channels.

Increasing demand for organic healthy

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products Australian awareness towards

healthy products is increasing widely. Use

of herbs in our product is a good strategy

to coop with this new life style. Demand is

expected to grow rapidly once our product is

introduced to their market.

Threats

Low-end products

Intense competition has led to the price

campaign, and in turn has resulted in a

situation where manufacturers have to give

up high-end products to cater for the

demands.

Product innovation

Another outcome of the intensified

competition is that foreign manufacturers

are engaging in the launching of new

products to increase brand shares. New

launches have also included higher end

products, as companies aim to offset falling87

margins due to the reductions in the prices

of existing products.

Rising raw material prices

With the price of Jack Fruit commodities on

the rise, manufacturers are increasingly

facing pressure on their margins. Farm Fresh

uses basic raw materials in large amounts.

If raw material prices continual rise, it

would thus lead to increased pressure on the

company’s margins.

4.4 ECONOMIC COOPERATION BETWEEN AUSTRALIA AND

MALAYSIA

4.5.1 Bilateral Government-to-Government Cooperation

Agency-to-agency cooperation activities are an

important element of on-going cooperation, for

example, between Australia Trade (Austrade) and the

Malaysian External Trade Development Corporation

(Matrade), Invest Australia and the Malaysian

Industrial Development Authority (MIDA), and the

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Australian Quarantine Inspection Service (AQIS) and

Department of Veterinary Services (DVS).

Malaysian investment in Australia has grown steadily

over the past decade. In December 2003, Malaysian

investment in Australia was valued at over A$6.2

billion representing 0.6 per cent of total foreign

investment in Australia. While Malaysia’s share of

total investment in Australia is small, it has been

rising steadily over the past decade and has risen

sharply in recent years. In contrast, Australian

investment in Malaysia has been declining since

1997. In December 2003, the level of Australian

investment in Malaysia was valued at A$485 million,

representing under 0.1 per cent of Australia’s total

investment abroad. Malaysia’s continued economic

development should encourage Australian investors to

seize emerging opportunities, particularly in

service-based investments such as health, education

and infrastructure development. Direct investment

forms the bulk of investment between the two

countries.

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Department of Foreign Affairs and Trade

The department's role is to advance the

interests of Australia and Australians

internationally. This involves working to

strengthen Australia's security, enhancing

Australia's prosperity, and helping Australian

travelers and Australians overseas.

The department provides foreign and trade

policy advice to the government. We work with

other government agencies to ensure that

Australia's pursuit of its global, regional and

bilateral interests is coordinated effectively.

Department of Foreign Affairs and Trade

address:

R.G. Casey Building John McEwen Crescent Barton ACT 0221 AustraliaTel: +61 2 6261 1111Fax: +61 2 6261 3111Media enquiries: +61 2 6261 1555

4.5.2 Regional and Multilateral Cooperation

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Like Australia, Malaysia is a relatively open

economy which recognizes the importance of

international trade for its prosperity. Malaysia

and Australia are strong advocates for a robust

rules-based international trading system as a means

of ensuring a predictable and stable trading

environment. Malaysia and Australia work together

to support multilateral liberalization goals in the

World Trade Organization (WTO) and regional fore

such as the Asia Pacific Economic Cooperation (APEC)

and the Association of South-East Asian Nations

(ASEAN).

4.5.3 WTO and Cairns Group

While their different economies mean Australia and

Malaysia approach aspects of the current WTO

negotiations from different perspectives, they are

both active members of the WTO and have developed a

constructive, co-operative relationship where their

national interests coincide.

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Most significantly, Australia and Malaysia are

members of the Cairns Group of agriculture fair

traders, and work together in that context to

further advance global agricultural liberalization.

Like Australia, Malaysia shares a desire for an

improved environment for international agricultural

trade, including greater market access.

4.5.4 APEC

Australia and Malaysia are foundation members of

APEC and work co-operatively in this forum. Their

approach to APEC’s trade and investment agenda is

largely complementary, and Australia and Malaysia

are both committed to the forum’s trade and

investment liberalization and facilitation agenda

and achievement of the Bogor Goals of free and open

trade and investment in the region by 2010 for

developed economies and 2020 for developing

economies. Malaysia and Australia also work

cooperatively on APEC capacity building initiatives

and recently co-hosted a workshop on corporate

governance in Kuala Lumpur.

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4.5.5 AFTA-CER CEP

A major breakthrough is the mutual commitment to

conclude long-standing negotiations for a Malaysia-

Australia Free Trade Agreement by 2012.

The two countries had agreed to launch negotiations

on the FTA as early as in 2005 but negotiations

stopped in early 2007 to allow both sides to focus

on finalizing the Asian-Australia- New Zealand FTA,

which was concluded in August 2008 and came into

force last year. Talks on the bilateral FTA

subsequently continued but have not made much

headway.

The year 2004 marks the 30th anniversary of

Australia’s dialogue partnership with ASEAN. On the

trade and economic front, the relationship between

Australia and ASEAN has continued to strengthen and

mature through important initiatives in the AFTA-CER

CEP. The AFTA-CER CEP provides a practical

demonstration of Australia’s commitment to

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encouraging economic growth and lowering business

costs in the ASEAN region.

Since 2002, the AFTA-CER Business Council (ACBC) has

met with ASEAN, Australia and New Zealand Ministers

to discuss options to improve trade and investment

between the two regions. ASEAN and CER Ministers

have instructed officials to work closely with the

ACBC to ensure that an FTA reflects business

priorities for deepening regional economic

integration. Since 2002, Malaysia and Australia

have worked closely in this forum as chair and vice-

chair. The chairing of the ACBC was transferred

from Malaysia to Australia in April 2004.

4.5.6 IOR-ARC

The Indian Ocean Rim Association for Regional

Cooperation (IOR-ARC) launched in Mauritius in 1997,

comprises 18 member states, including Australia and

Malaysia. The Association aims to expand and

facilitate trade and investment in the Indian Ocean

region and disseminates information on various

94

regimes, with a view to helping the region's

business community to understand better the

impediments to trade and investment within the

region.

4.5.7 Private Sector Cooperation

The Australian Government has encouraged and

supported an active group of institutions which are

keen to promote the bilateral relationship and

maintain people-to-people links. The Malaysia

Australia Business Council (MABC) and the Australia

Malaysia Business Council (AMBC) are key bodies

coordinating commercial linkages and conducting

regular dialogues with both Governments, including

participating in the Joint Trade Committee. Among

other responsibilities, the Councils assist with

business delegations, especially those accompanying

Ministerial visits, and coordinate commercial events

to coincide with such visits. The Councils are an

important source of information and advice for

businesses active in Australia and Malaysia and play

95

an important role in promoting strong business

networks.

The Malaysia-Australia Foundation (MAF) and

Australia-Malaysia Foundation (AMF) are initiatives

of the private sectors in Australia and Malaysia.

The MAF was established in 1994 and includes

prominent Malaysians - mainly from business and

government - and contributes to the relationship

through its programs of educational, cultural and

people-to-people linkages.

A number of private sector bodies and institutions

have also established close links with the Malaysian

federal and state governments through the signing of

Memorandum of Understandings covering cooperation in

a range of areas including health, agriculture, and

information and communications technology.

4.6 BARRIERS OF MARKET ENTRY

4.6.1 Trade Regulation of Australia

i. Trade Policy

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Having shielded its industry for most of the

past decades behind tariff protection, Australia

began to reduce its tariff including in its most

protected industries such as automobiles and

textiles in the 1980s. The Australian economy

has since reaped the rewards of tariff reduction

through lower prices of imported business

inputs, increased productivity and improved

international competitiveness.

ii. Import Controls

There are no special requirements for applying

an import license, nor are there any quotas on

imports. However, under the Customs (prohibited

Imports) Regulations, controls take the form of

a) an absolute prohibition meaning that import

of these goods is banned in any circumstances;

and b) a restriction where imports are allowed

only if written authorization is obtained from

the relevant authorities, or if compliance with

certain regulations is met. For some

97

commodities, import permits are required to

facilitate clearance of goods.

Items subject to control include animals and

animal products; narcotics, psychotropic and

therapeutic drugs; certain chemicals and primary

commodities; firearms and certain weapons; motor

vehicles; and certain dangerous goods. Controls

on these goods are maintained to meet health and

safety requirements or labeling, packaging or

technical specification requirements.

iii. Customs Valuation and Tariff

Australia adopted the Harmonized Commodity

Description and Coding System (HS). It is a

dual-column schedule providing for both general

and preferential duty rates applied to goods

from developing countries.

The Australian Government has planned for the

progressive reduction of tariff protection for

local industry. The tariff reduction program has

already reduced 48% of Australian tariff to zero

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and 35%. About 86% of tariff rates now range

between zero and 5%, except certain automobile

products and the textile, clothing and footwear

commodities. The average applied most-favored-

nation (MFN) rate for industrial products is

4.6%, while the applied MFN tariff for

agricultural products is less than 1%.

While there are several ways of valuing goods

for customs purposes, the method most applied is

the transaction value based on the price

actually paid for the imported goods.

iv. Customs Clearance

Importers wishing to clear their own goods

should contact the Customs Information and

Support Centre for advice on Customs

requirements and operating hours. Customers

should be aware of their obligations and base on

their assessments of import procedures.

Penalties may be imposed for the submission of

incorrect or misleading information.

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Business travelers carrying commercial goods or

sample may need to obtain permits for their

goods depending on the nature of the goods,

regardless of value. Quarantine and wildlife

regulations and other restrictions may also

apply to certain goods. Laptop computers and

other electronic goods for personal use may be

admitted duty free provided Customs is satisfied

that these goods would be taken back on

departure.

Customs advises that purchasing goods over the

Internet or mail order are subject to customs

controls. Restricted goods brought into the

country require an import permit. Goods may be

imported duty and tax free if their value is

$1000 or less, with the exceptions of tobacco

and alcoholic products. However, multiple

packages to the same addressee from a single

consignor arriving at the same time are liable

for tax assessment.

v. GST and Other Taxes

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Goods and services tax (GST) was introduced in

2000 and is payable on most goods and services

imported into Australia except for some

essential commodities. GST is levied at 10% of

the value of a taxable importation which is the

sum of the customs value of the goods, any

customs duty payable, delivery costs and other

expenses. Australia imposes GST, wine

equalization tax and luxury car tax on locally

produced and imported goods.

vi. Anti-dumping and Countervailing Duties

Where a consignment of goods has been imported

to Australia, or is likely to be imported, and

an Australian industry producing the like goods

believes there are reasonable grounds, an

applicant may apply for a dumping duty and/or a

countervailing duty notice to be published.

Australia has initiated a number of anti-dumping

proceedings against certain countries including

China. Currently there are a number of mainland

origin goods subject to Australia's anti-dumping

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measures, including preserved pineapples,

preserved mushrooms and certain chemicals.

vii. Marking and Trade Descriptions

Importers are required to ensure that goods

entering Australia are correctly labeled. It is

an offence to import goods that do not bear a

required trade description, or bear a false

trade description. Imported goods that require a

trade description must be marked with the name

of the country in which the goods are made and a

true description of the goods in English

language, in legible characters and in prominent

position with weight or quantity.

viii. Documentary Requirements

Bill of lading is required on all freight

shipments. "To order" bills are permitted,

Freight collect shipments are generally

acceptable. Certificate of Origin is not usually

required except it is specially requested by

importers. Information for a Commercial Invoice

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should include name of vessel/carrier, shipper

and consignee, country of origin of the goods,

marks and numbers, quantity and weights, order

date and number, selling price, method of

payment etc. Other documents may include packing

list to facilitate cargo clearance. There are no

specially known requirements for

consular/customs invoice, insurance certificate,

pre-shipment inspection and pro-forma invoice.

ix. Product Standards and Consumer Protection

Australia is a signatory to the WTO Standards

Code and has acceded to the WTO Agreement on

Technical Barriers to Trade; However, Australia

still maintains some restrictive standards

requirements particularly quarantine and health

restrictions that have an impact on the free

flow of goods. Liability laws provide consumers

with a ready cause of action against the

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manufactures or importers of defective products.

The Trade Practices Act prohibits restrictive or

unfair trade practices, misleading or deceptive

conduct, false representations, deceptive

offering of gifts and prizes in connection with

the sale or promotion of the goods and services.

4.7 WAYS TO OVERCOME BARRIERS OF ENTRY

Trying to break into a new market can be tricky, and many

companies fail every day. Proper planning can go a long

way toward making your attempt successful, which is why

selecting a market entry strategy should be at the top on

the list of things that small companies must do before

moving forward. A barrier of entry is defined as an

obstruction that makes it difficult for a company to

enter into an industry. There are several forms of entry

barriers that are commonly seen in established markets.

Farm Fresh look at the different obstructions and

provides insights to enter the market.

4.7.1 Economies of Scale

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Without a doubt, this is a problem for small

companies. Larger, more established companies enjoy

economies of scale as they are able to lower their

production costs just by their sheer size. Small

companies always begin operating with high costs and

usually incur losses during the first five years of

their operations, which may inevitably lead to their

demise.

There is no sure-fire way to overcome this problem

as economies of scale come with resilience and

continuous reallocation of resources to achieve

efficiency in productions. Small-scaled businesses

likes Seri Dahlia can start, however, by being

realistic. A prudent forecast of sales and profits

will indicate a reasonable level of costs in the

first few years. Purchasing only the minimum capital

(physical and human) will help curb high costs. Seri

Dahlia needs to work harder during the first few

years and to make more sacrifices financially to

pave for success in the long-run.

4.7.2 High Capital Requirements

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To increase customer sales, small-businesses have to

win over consumers from existing providers. This can

be expensive for customers as they may already be

comfortable with their current facilities and fees.

Similarly, high-scaled branding and advertising that

translates into product differentiation will entice

consumers to remain with their larger providers.

The way around here is to create a nich). A niche

target market is a specific group of consumers who

have a specific requirement. Small-businesses have

to find their own niche product or service that will

be able to cater to this group of people. Small

companies are generally unable to reach out to the

masses; the same way established companies are able

to do - so they should concentrate on building

rapport with their own niche target markets to boost

their presence in the market. This allows smaller

companies to demonstrate their own expertise and

product branding.

4.7.3 Lack of Access to Distribution Channels

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Small businesses have low bargaining power and

usually begin with shaky business networks. Because

of this, it is easy to lose out on business

opportunities to the big corporations in the market.

There are ways to overcome this hurdle. One way

would also be to concentrate on a niche product or

service. This would help eliminate the main

competition with the big players in the market.

Alternatively, Seri Dahlia can find ways to

"complement" the networking channels (with their

niche products and services) to increase bargaining

presence in the industry.

Another popular way is the use of Internet

marketing. The Internet is a potent tool in today's

business world, especially where distribution

channels are concerned. Networking and marketing via

the net is cost-efficient, fairly non-technical and

makes small business owners accessible to billions.

If the Internet marketing strategy jives with the

business model, small-firm owners may quickly work

their way up to larger distribution channels.

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4.8 SUMMARY

4.8.1 Challenge and Market Strategy

Prior to penetrating the market in Australia, Farm

Fresh needs to discover the market. The challenge

lay in understanding the requirements of the

customers, integrating the inputs of the company

regarding the product and pricing into the analysis

and providing an excellent quality of output in

terms of workable marketing strategies.

Even though Farm Fresh will face great challenge to

gain expectance, but in time we will establish

market opportunity and fit in the market as quickly

as possible. We have determined many formulas how to

go in the market after a brief study of the company

strength, weakness, opportunity and threat and

external factor of the host country such as

Australian market, culture, people and existing

competitor.

Market roadmap development is created as a guideline

for Farm Fresh to face, overcome and take action on108

possible event might happened either predictable or

unpredictable scenarios after looking at uncertainty

in survivor of new business in Australia.

Farm Fresh stands a high chance to penetrate

Australian market by implementing the market entry

strategies, develop a good business to Australian

people and sustain the growth for future

development.

CHAPTER 5

MARKET ENTRY STRATEGY ANALYSIS (MESA)

5.0 INTRODUCTION

In this chapter, we are going to develop a MESA for the

country selected which containing a strong managerial

component that is theoretically actionable by the

management. After having MIR, BEAR, and ROME in previous

chapter, we adding depth to the previous chapter strategy

109

by strengthen with a more complete a series detailed and

complex questions on the country market that we are

researching for. For this chapter, we are going to

discuss entry mode analysis, pricing and marketing

campaign (promotion).

5.1 ENTRY MODE ANALYSIS

Currently, we have selected our target location which is

totally new to us. Because of that, we found some options

or entry modes available in order to entry the host

country market which are totally entered alone,

franchising, joint venture, exporting, counter trade,

contract and etc. Now, we are trying to enter a place

which probably looking for someone or company who we

think is appropriate and approachable where able to guide

us along into the new market. With the guidance or

assistance from the local business or local people, the

process of familiarizing the new market or new

environment will be speeded up significantly. If without

having a host country partner and a company has decided

to invest into a new international market, they will find

it extremely hard and almost impossible to compete with

110

other market player due to unable smoothly start up their

business there. Therefore, the best option is joint

venture.

5.1.1 Joint Venture

Joint venture is a form of contractual agreement

where joining together two or more parties for the

purpose of executing a particular business

undertaking. In other words, joint venture is a

special type of strategic alliance in which two or

more firms join together to create a new business

entity that is legally separate and distinct from

its parents. Besides that, all parties of the joint

venture are agreed to share the profits or losses of

the enterprise. Therefore, we will be trying to

venture into Australia markets by having a ‘reliable

and supportive’ partner in Australia. In order to

seek for the partner to venture, we need to find the

suitable company which is a moderate growth company

which is not too large or too small. This is because

a host partner company may not border about our

project since they are already famous and earning

111

profit. While the host partner company is small may

suffering surviving to get the product into the

customer’s minds which may delay our project. After

a series of discussion among the management, we have

decided to adopt the strategic alliance approach

with one of the baby product company in Australia.

The selected host partner is responsible and

assisting us to promote and provide our Farm Fresh

product in market. If the host partner company able

and possible, we may aimed throughout entire

Australia so that it is able to reach as many market

segments as possible within a short period.

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5.1.2 Strategic Alliance with Local Business

A strategic alliance is a business arrangement

whereby two or more firms choose to cooperate for

their mutual benefit. We have thoroughly analyzed

the possible market entry mode is by adopting the

strategic alliance approach with one of the moderate

company in Australia which providing the same

service provided and same field like us. To be more

specified, we are looking for an alliance on the

basis of assigned arrangement whereby our host

partner will take may be partially and fully

responsibility on providing Farm Fresh throughout

Australia target market. Meanwhile, we will be

assisting the company especially this project and

given a greater authority on certain issues such as

the marketing decisions. Whereas, they are preparing

the necessary issues such as get licensing,

government approval and etc. By having this

arrangement, we and the host partner together will

be able run this project.

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The following are the reasons on why we have chosen

this market entry mode on the assigned arrangement

basis:

1. Ease of Market Entry: By partnering an

Australia business company, we are able to

overcome many kind of issues as a foreign

company such as hostile government regulations

which require certain of capital or initial

investment bring into the country, highly

taxation, licensing where there is fruit jam

manufacturer and wholesaler

(http://www.maa.org.au/) need a local people to

be registered and etc. Therefore, the chances

for our service to penetrate into a wider market

segments in Australia at the early stage are

much higher and quicker than other entry mode.

2. Shared Risk: With a host partner in Australia,

the risk will be shared at least some

percentage. This is because there is a lot of

uncertainty such as the consumer behaviour may

114

change due to certain factors, or market risk

that will cause economic turn down that we

cannot identify immediately and etc. Sometimes

people will loyal to certain brand or dislike

certain brand at the very first sight with some

‘unexplainable’ reasons. Hence, entering the

Australia market through agent or distributor

will lower our investment risks as we do not

need to physically exist in Australia such as

renting an office and shop for the operations.

3. Shared Knowledge and Expertise: In Australia,

we are seem like a new born baby where

everything about Australia that we have start

over to learn it. But having a host partner, we

able used their expertise to get the knowledge

with faster and share it in order to run the

business which will boost up our profit. For

example, they have the sale-person expertise on

communication skill in order to attract the

potential customers to take our product, or they

115

know the location that the highly potential

customers will buy the product.

4. Synergy and Competitive Advantage: Having a

host partner in Australia, we are also to

overcome most of the typical major obstacles

such as entrenched competition which will cause

hardly to “attack” the local business rather

than working together, or effectively use the

advantage of reducing the market player by

regrouping as partners rather than cause a

“price wars” where keep reducing the price to

attract customers.

5. Alliances on assigned arrangement: This basis

would help to minimize the impact of loss of

autonomy. Although there is the potential loss

of autonomy because both parties are sharing the

business and hence there could be some argument

on what each will do in order to not crash with

other’s works. Therefore, the Australia partner

116

will take the full control on the administrative

matter while our company will be given the

authority in marketing-related decisions. Yet,

we will still need the assistance from our

Australia partner in liaising with other

Australia firms in the marketing program

arrangement. By using this strategic, we believe

it could work wells and smoothly.

On the other hand, there are also some pitfalls of

this market entry mode such as the impact of foreign

exchange rate on our business which could

dramatically affect our profit margin, limitations

of fund transfer and etc. Yet, after measuring the

weight of each pros and cons, we are confident that

the strategic alliance with an Australia partner

would be the most suitable market entry mode and

best decision for our company to adopt.

5.1.3 The Host Partner – Sunshine Pavilion

We have also included some major considerations such

as compatibility, taste, type and its nature of

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product before we are selecting the alliance partner

in Australia. Our Australia partner must have a high

level of expertise and experiences in assisting us

to succeed in the Australia market. Also, they

should not have any conflict of interests with our

business so that we could fully commit to the

business for the benefits of both parties. Selecting

the Sunshine Pavilion as our partner which we think

is the one who willing to corporate with us due to

same business nature and together make profit.

Although Australia have many others company such as

Leslez Organics & Vortex Exports Rhu Bru Pty Ltd ,

Emagi Pty Ltd and etc, but we need to choose one

host partner in order to determine the market

response by starting our business before alliances

with other host partner as well. After screening all

the potential partners in Australia, our company has

finalized the list and decided to create alliance

with Sunshine Pavilion as our host partner in

Australia.

Australia Sunshine Pavilion

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Australia's ochre red pavilion attested to its

critically important relationship with China, its

largest trading partner. The three story pavilion

was constructed on a 4,800 square meter site.[16] The

facade of the structure was composed of weathered

steel, which oxidized in the months preceding the

expo's opening. The red ochre color was meant to

represent the "red center" desert regions of central

Australia.

The pavilion cost AU$83 million, the most Australia

has ever allocated for a pavilion in history.[16] AU$6

million of the total cost was contributed by the

state of Victoria, whose largest foreign trading

partner is China. The pavilion had a large visitor

capacity.

Products and service

With eighteen years experience in bi-lateral trade

to the Japanese certified organic food industry,

they are a group of dedicated individuals, working

with a range of certified organic products. By

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promoting trade, importing and exporting,

establishing client market relationships, the

management of trade fairs in Japan, as well as

offering agency consulting services, "Sunshine

Pavilion" selects only the finest quality products

to promote in their product range. Produced in 325g

and 42g handy size jars the Dalhousie organic jams

are currently available in five varieties:

Strawberry Jam, Raspberry Jam, Blueberry Jam, Fig

Jam & Orange Marmalade.

Australia has a world-recognized reputation as a

clean, green and safe environment for food

manufacture and Dalhousie is committed to

maintaining these ideals with its organic range.

They come trade inquiry and offer cooperation with

trade suppliers, retail stores, hotels, restaurant

chains, airlines or, we can organize you trade fair

in Japan for you

There are some reasons that why we choosing this

type business nature of host partner. One of the

main reasons is that many of us especially concern

120

about health and will always go for healthy food.

There is little scientific evidence to prove that

organic food is better in quality than conventional

food. Scientific research conducted so far on

various organic food items have not been able to

give strong signals about the superiority of organic

food over non organic food. People strongly believe

that organic food tastes better than non organic

food. The prominent reason for this belief is that

it is produced using organic means of production.

Further organic food is often sold locally resulting

in availability of fresh produce in the market.

Because of that, Farm fresh product will become so

attractive and more valuable. On the other From

Australia to Malaysia, Japan, to the countries of EU

and Croatia, the associates of "Sunshine Pavilion"

offer practical trading solutions in assisting

business grow in an efficient, competitive and

unique way.

With this strategy, we think that both parties will

at least get an increment of the sale and become a

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“win win situation”. Off-course, there are also some

minor benefit that able to gain which are expenses

reduced, save time and etc. Therefore, we believe

that we able to grow and expand our business with

smooth and steadily by using this strategy alliance

with this type of business nature.

5.2 PRICING

As we can see that there will be a different pricing

strategy being used in a certain country. This is because

there will a demand and supply available in a market

which are sellers and buyers which according the economic

theory. Whenever there is highly demand on the product or

service and there is less or limited supply around that

country, then the seller can charge a higher price to the

buyer. But we cannot surely confirm on how much demand

and supply available in the Australia due to we are new

market player in the country. As we know that the living

standard of Australia people is quite good but we cannot

ensure the actual data of living standard of Australia

people. This is because the actual data will help us in

pricing the suitable price for our product. We practice

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the first price degree discrimination, in which charging

the maximum prices that the customers are willing to pay.

There is one type of package, where per bottle of

jackfruit jam with 325gm is only RM4.07.

With these pricing strategy offers, we apply same idea to

Australia. But before convert the currency from Malaysia

to Australia, we need to understand how other product

being priced different from 2 other country by selling

the same product.

Price Comparison

PRODUCTS / SERVICES Malaysia

(MYR)

Australi

a (AUD)

Conversi

on Rate

McDonald Cone Ice-cream RM 1.00 $0.50 2.00

McDonald Sundae Ice-cream RM 3.00 $1.75 1.71

Dell Latitude E5410 Laptop RM

3,100.00

$1,269.0

0

2.44

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Sony Bravia LCD TV 40 inch

Series EX700

RM

6,500.00

$

1,700.00

3.82

Samsung Series 7 LA55C750

55 inch LCD TV

RM

10,600.00

$3,500.0

0

3.03

Monash University (Master

of International

Business )

RM

49,500.00

$

21,830.0

0

2.27

Currency: 1 Australian dollar = 2.85200283 Malaysian

ringgits

Now we can see that other product it seem to be move

roughly along with the currency rate where 1 Australian

dollar = 2.85200283 Malaysian ringgits. Although there is

some greater different conversion rate but this is due to

the economic theory where the supply and demand has

caused the ability to charged higher or lower price.

Since we are new to the environment of Australia, we

assuming the situation are similar with Malaysia.

124

From above Pricing Comparison table, we can see that the

living standard of Australia people is roughly same with

Malaysia people where the product or services are

affordable to the consumer. Therefore, we are following

the conversion rate roughly as the currency rate to price

our product. Per bottle of jam consists of 325gm, selling

price would be RM4.07 x 2.85=AUD$11.59.

5.4.2 Advertising Campaigns

Based on the survey that Farm fresh jam has

conducted, our findings showed that the most

preferable advertisement medium chosen by the

respondents is the Internet and followed by

magazines, radio and the least preferable is through

newspapers.

Internet Web Site with Live Chat and Booking

Facility

We will establish a corporate website which

contains the information about the jackfruit jam

product, the benefits and the company details.

By having a corporate website, it provides a

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ready access to information for the public to

understand more about Farm fresh jam. We will

also use Ads Words service in popular search

engine such as Google and Yahoo to tight up our

service with the key words such as Farm Fresh

jam. It will guide the user to get to know us

easily. Live chat is precise and spontaneous

making it easy to understand for both, the

operator and the customer. Live accomplishes an

instant customer care feeling and reduces

various other operational costs such as phone,

staff and fax. When customer book online, they

will be able to search around for the best

possible timing and packages that match their

needs.

Magazines

Farm Fresh will start advertise about our

products and services into several magazines,

such as Jam Recipes, Asian food, Organic foods &

Health. The ideas of choosing these magazines

are because most of these magazines discuss

126

about the same issues, such as Recipes,

healthcare and many more. Thus, Farm fresh

believes that these magazines will become a

suitable platform to place Farm fresh’s

advertisement, since most of the target readers

for these magazines are jam cookbook, breakfast,

and slimming & health to be. By having

advertisement on these magazines, the readers

will be able to know and get information about

Farm fresh products, pricing and contact

details.

127

Newspapers

Farm Fresh also will make use of newspapers for

advertising as it permit an advertiser to reach

a large number of people within a specified

geographical area. You can reach certain

segments of our market by placing our ads in

different sections of the paper such as in

healthy, house wives, breakfast, and quick and

easy recipes related session. We have

identified the most popular for states of Perth

such as Chronicle, The Australian and Herald.

For optimum result generated from this

advertisement, we can cooperate with newspapers

to print a voucher on the paper which offer 50%

discount for first try.

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5.4.3 Marketing Campaigns

Apart from the above medium that Farm fresh will use

to post information about jackfruit jam and company,

Farm fresh believes that by implementing a variety

of marketing tools, it will help to create awareness

Farm fresh existence and to promote its product.

Brochures

Brochures will be distributed at the

concentrated places, such residential area,

restaurants and hotels many more. The brochure

has a lot of valuable information about our

product and combined with variety of colors that

are attractive and unique.

Buntings

Buntings will be placed in front of restaurants,

hotels and hypermarkets. On these buntings,129

information such as the nature of business,

contact details and promotional offers will be

projected into the buntings.

Farm Fresh’s toll free number (1-300-Farm Fresh)

The hunting line for Farm Fresh is 1-300-32-

4542, in which the last 6 digits numbers will be

replaced with the Farm fresh word as the

symbolic and efforts to promote the company.

Customers will memorize the wording rather than

the number and this number will be placed in our

130

brochures, at decoration onto our MPV and also

at our buntings. This number will serve as a

customer touch point and convenient for them to

contact and make an appointment.

Customer Testimonial

Customer “testimonials” are one of today’s most

potent forms of promotion and grassroots

marketing for a start-up business — a potential

marketing goldmine for our venture. Positive,

believable comments from real life customers are

proof positive to other potential customers that

we are proven for the said benefits. From the

moment we launch our business, we will

aggressively seek feedback from customers. Our

goal is to build a beefy file of letters and

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emails with glowing comments, interesting

stories and other titbits that can be highly

useful in touting our business to our prospects.

5.5 ASD MODEL (AWARENESS, SUSTAIN AND DEFEND)

5.5.1 Awareness

The main objectives in this ‘Awareness’ stage are to

alert and give information to the target hotels,

restaurants, housewives on the existence of

jackfruit jam attract them to try (first purchase)

for our product. A product might have world class

quality and sells at the cheapest price in the

world, yet without a series of awareness programs,

the product will not be able to reach the market as

no one is realizing its existence. Hence, in the

very first stage of venturing the Perth market, we

have to initiate a series of awareness programs to

publicize Farm Fresh product with the secondary aim

of attracting them to have to urge to try it out.

These awareness programs have to, at least, include

the following:

132

1. Mass media advertisement as shown above.

2. Sponsorship. Be the sponsor of hotels

event and health-related campaign such as best

organic jam and give sample packet to

restaurants so that our name can be shown

throughout the events.

3. Internet. As the world greatest

information place, the Internet is the most

powerful tool in disseminating information to

the world.

5.5.2 Sustain

The success of Awareness stage will lead to the kick

off of the second stage called ‘Sustain’. After

consumers tried jack fruit jam for the very first

time, we have to ensure they are satisfied and happy

to continue the purchase jam. Hence in this stage,

we have to be more focusing on marketing our

strength and uniqueness, which tells the consumer on

why they should further pampered with our product.

133

The biggest selling point of all the things a

housewife could prepare breakfast very quick and

easily. Moreover, our jam produce with organic

ingredients which is good for health. Therefore, the

marketing strategy in this stage will be more

focusing on this selling point. Our company believes

this is an effective selling point as the health

consciousness is receiving more and more attentions

in many parts of the world.

5.5.3 Defend

When we are moving upwards in terms of market

growth, the competitive level is relatively moving

up as well, probably in a faster pace. Hence the

final stage of this ASD modal suggests that we have

to defend our product from being attacked by other

competitors. Quite often, when consumers are loyal

to a brand or the brand has successfully

‘humanized’, it will create a massive barrier for

others to attack. Typical examples would be the

instant noodle in ASEAN region has been well-

134

recognized as ‘Maggi Mee’ (one of the brand names of

instant noodle) and ‘Colgate’ for the toothpaste.

135

5.6 SUMMARY

This MESA is a completely interactive supplement to

accompany the International Business by helping previous

chapters explains in depth. Many small and medium

companies opt for strategic alliance or joint venture to

succeed in a new international market. However, larger

companies follow different strategies such as

acquisitions or establishing subsidiaries since they have

large capital to do so. Fresh Farm prefers to enter a

strategic alliance with a host partner.

Therefore, the first thing to do for our Australia

venture is looking for a reliable and helpful partner in

Australia. The alliance with the Australia partner is

suggested to be on assigned arrangement basis. One of the

main responsibilities of our Australia partner is to

assisting us in providing Farm Fresh product widely in

Australia. Hence, our Australia partner has to be

excellent in managing and must have a high level of

expertise and experiences in assisting us to succeed in

the Australia market. Also, they should not have any

136

conflict of interests with our nature of business so that

we could fully grow our business for the benefits of both

parties. Besides that, we have planned some pricing

strategies in order to capture the attention of the

Australia market. Meanwhile, we also do sale projections

or forecast on our sales in order to help us do budgeting

and planning for the future.

By having different international marketing approaches at

each stage, we believe we could gain the maximum benefits

from them as the objectives at each stage can be served

well while adding in extra benefits due to the nature of

each international marketing approach.

137

CHAPTER 6

BREAK EVEN ANALYSIS

6.0 OPERATING COST

Taking into the account of operating cost, it consists of

2 types, the first one is the fixed cost and the second is

the variable cost. Operating or production cost is those

expenses that have to be paid even if no production takes

place and that depends on the amount of food that is

produced.

* Fixed cost is not detailed out as Farm Fresh is well established company

and currently focusing on the specific product and its value. However the total

fixed cost per year is RM 120,000. This includes the rent, labour, loan

repayment, business registration fees, hygiene certificates and other licenses.

Raw material falls under the category of variable cost,

and below is for per bottle of jam which is 325ml:

Ingredients Quantity per bottle

(gram)

Price per bottle (RM)

*as per current

138

market price

Jackfruit 130 1.01

Sugar 100 0.30

Preservative and

Water

95 0.50

TOTAL 325 1.81

* Jam bottles produced per day is 283, which brings to

88, 296 bottles per year.

Thus the cost on raw materials per year is 88, 296 X 1.81

= RM 159, 815.76

* The packaging and the cost for each bottle is RM 0.30.

(plastic bottle = RM 0.10 and packaging = RM 0.20).

Thus the cost on packaging materials per year is 88, 296

X 0.30 = RM 26, 488.80

* Miscellaneous expenses = RM 1.15

Type of Production Costs

Actual costs for jam

Production per Year (RM)Fixed cost

139

Total Fixed Cost 110,000 Variable cost

Raw materials 159, 815.76Packaging materials 26, 488.80Transportation and Others 700Total variable costs 187,004.56

Total operating costs per

Year

297,005.00

140

6.1 INCOME AND PROFIT

The gross profit is the difference between the expected

income and the total operating costs over the first year.

Income is calculated as follows:

Income = Selling price per unit x number of units sold

Thus, the income depends on both the price of the jam and

the units sold. Approach that is used for this Jackfruit

jam production is where the price is set to compare

favourably with existing products and calculate the

profit at the planned scale of production.

Farm Fresh has agreed on 40% of profit distribution

taking into account the retailers’ portion of the profit

as well.

Cost price per unit for a bottle of jam without tax (RM)

= 1.81 + 0.30 = 2.11

= 2.11 + (40% of profit) = 3.54

40% of the profit calculation:

141

Selling price – Cost price x 100Selling price

During the computation of the production costs and

income, the operation/production of the business should

be above the Breakeven Point. Above this point is the

minimum level of production that can enable Farm Fresh to

make a profit (Figure 1).

Figure 1

142

42,

Below are the breakeven point calculations:

a. In the jackfruit jam production, the contribution

for variable costs per bottle per year

Contribution per year = 187,004.56 / 88,296= RM 2.12

b. The sale price per bottle = RM 4.70

c. Unit contribution = sale price - (variable) = 4.70 –

2.12 = RM 2.58

d. Total fixed costs per year = RM 110,000

e. Breakeven = fixed costs/unit contribution =

110,000/2.58 = 42, 601 bottles per year

f. Express as a % of total production capacity (42, 601

bottles per year) the breakeven point

Breakeven point = (42, 601 / 88,296) x 100 =

48.25%

In other words, the production must operate at above

48.25% of the available capacity in order to make

profit. Clearly the higher the figure for the break-

even point, the more difficult it is for a process

to be profitable.

g. The annual production costs are calculated in as RM

297,005. If all products are sold, the annual

143

revenue is calculated to be RM 414,991.20 (88,296 x RM

4.70).

h. This leaves an annual gross profit of RM 117,986.20

(414,991.20 - 297,005), which after taxes, is

available to pay the owner a salary and for re-

investment and expansion of the business.

Farm Fresh will not automatically consider the gross

profit as its own income. The money belongs to the

business and it takes a fixed wage, which is recorded as

another business expense.

144

CHAPTER 7

CONCLUSION

7.0 INTRODUCTION

We have done an extensive and detailed research of

Melbourne (Australia) as a potential market of the

Jackfruit Jam. All our findings by using various

methodologies such as MIR, BEAR, ROME, MESA and Break

Even Analysis has pointed us to the fact that Australia

has great potential to market this product. Our company,

Farm Fresh not only looks at short term gains but our

management has laid the foundation for a 5 to 10 years

business plan. We have chosen specially one of the cities

of Australia, which is Melbourne as our target market as

we can get more profit by using differentiation strategy.

7.1 EVALUATION AND CONTROLS

Farm Fresh keeps its evaluation and control process

simple and easy to manage. This been done by focusing on

what really matters – bottom line performance. Evaluation

and control information consists of performance data and145

activity reports. If undesired performance results

because the marketing strategy processes were

inappropriately used, management must know about it so

that they can correct it. The following areas will be

monitored to gauge performance of the company:

Financial: Revenue and Expenses (monthly and annual)

The sales and marketing team will constantly monitor

the sales revenues and expenses on monthly basis.

The sales forecast and market expenses forecast as

described above will be used as the standard

performance. In every month-end, the sales and

marketing team is required to prepare an analytical

report on the monthly sales revenues. The sales

forecast will be re-calculated if necessary. Similar

processes will be carried out upon the financial

year end.

Customer feedbacks

The management team will constantly monitor the

customer feedback in order to improve it services

and gauge customer’s new requirement. Any complaints

146

will be addressed professionally to the customers

delight.

Brand-awareness

The marketing team will constantly advertise measure

and monitor the brand-awareness of Seri Dahlia

services. The team is required to inform the Board

if they found the growth rate of brand-awareness is

not encouraging.

7.2 CONCLUSION

Farm Fresh is extremely confident in our first debut

international business venture. Our marketing and

intelligence research department has put in long hours to

present the case study, business analysis, environmental

scanning not to mention financial analysis before we

embark on this exciting journey.

This business venture will be a vital milestone in our

company’s history. Australia will change the way we run

our business from being a domestic player to an

international business giant in the future as Australia

is a nation that has significant characteristics that

147

open great potentials for the company. We will be looking

forward to the future with optimism and be facing with

all of the challenges that might come our ways, as we

know that this is the right decision to make. Let our

destiny to be within our own hands!

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