International Investments And International Trade

Running Head: MARKETING PLAN
Marketing Plan
Name of the Student
Name of the University
Author note

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Part A
Reaching the international customers
Introduction
The aim of the paper is to conduct an analysis of the international trade that is aimed at
meeting the international customers. As such, the paper would indulge in a discussion where
the aspect of the international trade is discussed in the respect of the scenario of the
globalization. The paper would indulge in a discussion in an understanding of the
international customers. The attributes of the export and import would be the concern of the
essay. The regulations that are concerned in the course of the discussion would be looked at
from the perspective of Malaysia. The paper would analyze the implication of the foreign
trade through the lens of the Nestle Confectionary.
International trade
International trade is referred to as exchange that takes place in terms of the goods
and services irrespective of the international border and territories. In terms of most of the
countries, the implication of the international trade is noted in terms of the effect that it
creates in the value of GDP. However, the history of the international trade dates back before
the advent of globalization. The impact of Globalization is noted in the history of the silk
route and in the trade of the Amber road (Feenstra, 2015).
The international trade is even more complex than the domestic trade. When the trade
takes place between two different nations the factors that are affected even gravely are the
ones of the currency, policies related to the government and the judicial system.

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In terms of international trade, in order to make the process of smooth one the World Trade
Organization had been set up. The implication of the organization can be noted in the
facilitation that is maintained in the growth of international trade (Vernon, 2015).
Despite the complexities in the situations regarding international trade it can be stated
that global trade has allowed the organizations to get exposed to the foreign market as well as
towards the product. With the onset of globalization in the international market scenario,
there has been a change in the mindset of the people regarding the international trade. As
such, the factors that came to be effectively linked with the globalization are the factors of the
industrialization and the outsourcing and the coming up of the multinationals in the global
business scenario (Feenstra, 2015).
The international trade is specifically beneficial for the countries as it enhances a
wider exchange of the values and products across the boundaries of the border. The shift in
the nature of international trade has also led to a shift in the leadership that has been used to
conduct the business in the international market. Many leading countries that have been
benefitted from the exchange of values included the US, Korea, Taiwan, and China. The
advantage of china in the world trade has been noted in the fact that they had started to flood
the market with a lower rate of products (Vernon, 2015).
Though, in terms of the motivation and the ideological aspect, international trade is
not different from the domestic trade. However, the differences in the domestic trade are
invested in the complexities that is lying in the process. Another aspect that needs to be
considered in international trade with respect to domestic trade lies in the mobility of the
product, labor and the resources which are readily available in respect of the domestic trade
(Vernon, 2015).

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The international trade in Malaysia has experienced a boost in the last 3 years. The
impact of the international trade in terms of Malaysia had experienced and boost primarily
because of the fact that the country and its .trade scenario had welcomed the advent of the
industries that is oriented to the export. Along with the export, oriented trade a positive
environment of investment had fostered a close relationship with the privatized business
scenario and the government (McGovern, 2018).
Fig: Growth of the International trade in Malaysia
Source: thedollarbusiness.com, 2020
However, in terms of international trade, the country had readily welcomed the
import-related trade. The government had set up certain barriers in terms of the importation
of goods as well as of the services. However, the implication of the measures can be noted in
terms of certain organizations and sectors. The implication of the foreign trade in respect of
Malaysia is noted in the doubling of the export from US$29.416 to an amount of US$ 74.037
billion.

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In the scenario of the post-1997 turmoil, Malaysia had experienced a certain amount of
recess in the economic sphere. The implication of the recess is less effective in Malaysia as
compared to Indonesia and South Korea. The economic measures of the country had reached
a new level on the basis of the tight economic measures that have been taken, which allowed
the country to recover its status and reach a new level with US$83.5 billion by the year 1999.
The aspect of trade in Malaysia attracts a wide range of traders to indulge in a
business with a country. It has been noted that the foreign trade of the country is marked by
the 130.5% of the GDP of the country in its gross value. The country has grabbed the market
mainly in terms of electronic products, chemicals, and petroleum products. The country is
also a leading manufacturer in the metal. The import of the country takes place mainly in
terms of the electronics that comprise of the 29.8% of the total share while the petroleum-
based market comprises of approximately 10%.
The main partners of the country in terms of international trade include Singapore, China,
the US, Japan, and Hong Kong. The suppliers include China, US, Singapore , Japan, and
Hong Kong. However, the supply had been slowed down by the slowdown of the supply
chain in the country. However, despite of the slowdown of the supply process, the demand of
the US regarding their supply had remained intact within the country.
According to the data that has been circulated in the course of discussion there has
been a disposal of the fact that the export of the good of the country had accounted for an
amount of about 247.4 USD and the imported had accounted for an amount of 42.5 million.
The national agency that is concerned with the promotion of the trade had acclaimed that
there had been a fall in the export rate of the country by a percentage of 4 in the latter half of
2019. This was in sharp opposition to the increased rate of growth in the year 2018. The
import of the country also declined to a considerable proportion ta an amount of 152 billion

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USD. The resultant surplus of the trade had been 24.5 billion. As such, the country had
accounted for the 22nd year of consecutive surplus. The government of the country had been
supportive of the Transpacific partnership and the agreement of a free trade, which was used
to negotiate the trade between other nations. The treaty was being signed by several bodies
involved in foreign trade by Malaysia and 11 other countries. The progressive treaty had been
constructed on the basis of the Trans-Pacific treaty. However, the country has experienced a
boost in the number of countries that have been turning to the potential base of the country in
order to conduct their foreign trade.
The increased openness of the country to the foreign trade has enhanced the
vulnerability of the country in terms of the demand that used to an influx in the country with
the growing laxation of the trade-related laxation.
International trade played a crucial role in guiding the course of the economy of the
country. The connection has been established between the countries separated by
geographical borders and assigning a considerable amount of profit to them. As such, the
import and the export forms a crucial part of the trade happening in a different part of the
country. The impact of foreign trade in the country can be experienced in terms of the
enhancements that have been ascribed to the country in terms of the consumption pattern of
the country. The changes in the consumption pattern are marked by the quality, quantity, and
pattern of the community. International trade had brought about changes in the consumption
pattern of the country. The close cooperation in Malaysia began with the international trade at
its disposal. The country had become absorbance of the increasingly made investments
The implication of the foreign trade is noted in the increase in the external
competition that came in the way of the country and as such, it affected the local market of
the country. The price was expected to be higher as compared to the local price as the

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taxation was high. The impact of the foreign trade was noted in the attraction of the
customers towards the products from the US including the Nike, Adidas and Puma. The
quality had received a wider consideration as compared to the price in the country. The
resultant impact was that the demand for the local goods have been decreased considerably in
the country. The competition of the inner market is also from the internal competitors. The
pressure on the internal market was to enhance the quality of their good in order to thrive in
their desired market (Abidina, Haseeb & Jantan, 2016).
The advantage of the international market was noted in terms of the technological
advances that the country had borrowed from the foreign market, by the virtue of their
interaction with other forces of the international market. The local market has borrowed
extensively from the foreign market in order to improve the quality of their product in the
market that they were a part of. The efficiency in the production has increased the fast paced
production of the goods. This has boosted the confidence in the market. In order to
encourage the import the country had invested a considerable amount of resource in order to
bring about resources from the foreign market including that of the japan, china and Taiwan.
In order to increase the import the country has adopted zero tariff policy.
The international trade has also contributed in a decrease of the rate of the
unemployment in the country has reduced to a considerable amount. The investment in the
foreign trade along with the export has reduced the rate of unemployment in the country. It is
primarily because of the openness of the international trade in Malaysia, a lot of countries
have invested in the country. It has not only enhanced the economic development but also
created the opportunities for more jobs in the country (Abidina, Haseeb & Jantan, 2016).
As such, the international trade is looked upon as a opportunities to enhance the job
opportunities. With the international trade a wide range of customer had been catered to and

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by increasing the base of the customers a higher standards of the living has been assured. The
competitions from the external market has urged the inner market to enhance the standards of
the living. The abundance of the market has enhanced the living standards of the people
residing in the country.
Mobility of Resource
The international trade has enhanced a greater availability of the resources. The
mobility of the resources has been enhanced in the areas where the greater communication
had been possible in terms of the goods, capital and the availability of the labors in the
country. The outcome was also noted in the exchange of the technology as well as of the
values. The challenges were for the simple countries in order to enhance their efficiency.
Understanding the International customers
For an organization to carry out their trade in their international trade, it is important
for the organization to bring about modification in their product as well as in their service in
order to function in the global market. This require the organization to find out the exquisite
pattern in the country that the organization requires to find out the pattern in the ethnographic
sphere. It also requires the organization to understand the market data that can elucidate in
front of the organization crucial factors about the market that they are planning to enter. The
data would allow the organization to derive the factors that would allow the organization to
find the factors that would be able to enhance their growth in the international market as well
as gain their desired amount of revenue from the market (Abidina, Haseeb & Jantan, 2016).
Such a process also allows the organization to think in a global manner. The attempt
of the organization is to make their local market unique by their venture. Though the

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organizations conduct researches in order to enter their desired market, they make
assumptions regarding the market, which might not be accurate.
In order to enter the global market, the strategy that is taken by the organizations to
enter their global market is to grab their local market with the strategy taken at the global
level. It is also important to make the global strategy flexible in order to maintain a
consistency in terms of the marketing.
While the trade in the international market refers to the exchange of the goods as well
the services. The prospect of the international trade leads to the steady investment in the area
of international trade in an increased manner. It involves the assets from the countries they
are conducting their trades in. the openness in the international trade as ascribed a lot of
advantages to the countries indulged in the foreign trade. It has allowed the country to expand
their market both in terms of goods as well as in terms of the services which in other mode
would not have been possible to the market. As such, the global trade enhances the exposure
of the community to the global trade as well as to the goods and the services that is new to the
market of the country. It also allows the market to expand the market. Almost every kind of
product is shared on a wider basis in the international market. However, making the trade free
the risks that the country has encountered included the aspects like the economic loss. The
huge number of exporters also leave the market owing to the free trade in the market. The
larger number of the exporters leaving the country compared to the number of the importers
coming in, is known as the surplus balance in terms of the trade. The resultant outcome is the
return of the revenue in the country. With the greater imports as compared to the export the
generated revenue is marked by the flow of the money both in and out of the country. The
countries that are involved in a trade with the country include the countries of Japan,
Pakistan, New Zealand, India, Australia, China, Korea. The export and the import takes place

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because the country acquire the goods and the services that they cannot produce within their
market (Abidina, Haseeb & Jantan, 2016).
Export and the import
According to the proposition of the world bank, it is suggested that the total export of
Malaysia accounts for about an amount of 247,323,665.36 in US$ where the import of the
country counts about an amount of 217,358,263.56 US$. The increase in the trade of the
organization had been 5.12% and the international increase in the rate of World trade had
been with 3.5%.
The last decade had been extremely beneficial for Malaysia as it allowed the country
to enjoy a growth in terms of the economic as well as a stability in terms of the political
scenario of the country. The resultant outcome was noted in the fact that the country had
attained the 20the position in terms of the export in the world economy. The annual report of
the country had elucidated the fact that the export amount of the country accounts for an
amount of $184 billion and the import accounted for the amount of $156. With a flourishing
economy the scenario of the country can be understood in the terms of the positive trade
balance of an amount $27.4 billion. However, the country had experienced a decline in terms
of the value of the export from its status, five years back. Out of all the commodities that a
mark a forefront in the commodities that are exported. The commodities include the
petroleum, palm oil, aluminum, coconut oil and crude petroleum. The facts that have
contributed to the wider export and imort of the country includes the highways of a greater
length. The country boasts about the largest roundabout of the country. The indigenous fruit
of the country is the largest citrus fruit to have existed in the country. The Fortune Global 500
is made by the Malaysian company Petronas (Payaud, 2014).

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The economy of the country has accounted for the third largest in the geographical
domain of the Southeast Asia and 35th country in terms of the world economy. The country
can boast about the higher labour productivity as compared to the countries that surrounds it.
It has primarily happened because the industry of the country is knowledge based. The
adoption of the cutting edge innovative technology has benefitted country beyond
imagination. According to the report of the Global competitiveness the country has become
the 25th most country in the world to be competitive.
The lifestyle of the country is most affluent in terms of the lifestyle and the income of
the upper middle class as compared to the peers have been comparatively high has provided
added advantages to the country. This has also happened because of the lower income tax at
the national level, lower cost of the food and the transport, fuel and household related
expenditure that people can readily invest in the trade. As such, the per capita income of the
country counts about an amount of 10,620 in the terms of the US dollar. Government policy
has been reframed in order to push the status of the country towards per capita income of the
country. However, one aspect of the trade that has been extremely volatile is that of the
national income and the reliance of the government with the export in the oil. This has been
joined by the fluctuation in the currency. However, the country had increased and enhanced
different measures in order to enhance the revenue that has been earned by the country
(Feenstra, 2015).
Regulations
In order to regulate the foreign trade between the countries involved in the
international trade, it is crucial for the organizations involved to adhere to the rules and
regulations of the organizations of international standards. With the completion of the advent
of the GATT and the WTO organizations have become primary institutions to guard the

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functioning of the organizations involved in the trade. As such, the existence of the
organizations can be of the principle regime in terms of the global trade (Payaud, 2014).
Under the custome related act, known by the name CA 1967 urges to pay the custom
duties on the basis of the ad valorem in the area of the export and the import. The legislations
that are linked to the subsidiary like the ones of the Customs Duties in the 2017. Relevant
rates have been established along with the exceptions if they are applicable depending on the
goods that they are crossing across the border. The GST or the good service tax had been
removed from the scenario of the trade and in place of that, sales and the service taxation had
been imposed on the country. The tariffs are imposed in the cases where the duties are
tremendously higher (Payaud, 2014.
The remedies of the trade related factors have not being utilized in the history of the
country. In the year 1957 the GATT had been signed by the country. Custom ordinance had
been framed in response to the custom duties from the Act of 1957 in order to prevent the
dumping that had been in the Malaysia. The government that the imposition of the duties
across the boards in the country. It went against the policy on the first basis and the second
outcome led to the inflation. The commitment of the country had been noted under the GATT
and the commitment of the members of the ASEAN and the CADDA was noted under the
specialization of the Ministry of the International trade (Yamey, 2000).
However it can be noted that the country underwent several changes as it went on
implement the changes that were imperative on its way of bringing about. However, it was a
way for the local administrations to bring about changes in the trade and provide a solution to
it. The evidence has explicated that it had allowed the country to experience a change in the
legal scenario of the international trade (Payaud, 2014.
Conclusion

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Thus to conclude, it can be stated that the globalization had enhanced the trade on a
global level. The implication of the global trade can be noted in the liberation in the strategies
as created by the organizations to enter the foreign market. In order to facilitate the global
trade, it has become important for the organizations to adhere to the governance of the
international organization like the GATT and the WTO.
Malaysia had provided a strong ground for the functioning of the international trade
and had been effectively benefitted from the increased openness and the relaxation that the
country underwent in order to achieve an enhancement in terms of the trade (Payaud, 2014.
Part B
1. EXECUTIVE SUMMARY
The paper discusses the implication of the international trade for the ‘Nestle
Confectionary’ as the organization is entering the market of Malaysia. The paper
indulges in an environmental analysis of the brand as well as the SWOT analysis. The
paper would furnish a business plan for Nestle as the organization is entering the
market of Malaysia. The paper also discusses the implication of the marketing
objectives for the organization along with strategies that the organization to take up in
order to enter the desired market. The paper would also look into the implementation
of the strategies and the evaluation of the entire business plan.
2. ENVIRONMENTAL ANALYSIS
Political With its operation in the 190 countries, the organization
has faced differences in the measure of their operation.
The changes in the policies of the Government and the
changes that is impediment in the scenario.
The changes in the standards of the food as well as the
related regulations has affected the business environment
The increasing cost of the ingredients in the global market

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has affected the trade
Corruption in the market inhibits the business scenario for
the foreign organization (nestle.com, 2020)
Economic Vibrant economy of the country has created a potential
market for the advent of the foreign companies
The location of the country has allowed the organization
to engage with it in the international trade
The shift in the international currencies have acted as a
crucial issue for Nestle
The last year of the organization has experienced an
upswing for profit, a considerable portion of which can be
contributed to the selling of the confectionary in the
international ASEAN market (Nestlé, 2006).
Social Social scenario of Malaysia is composed of the people
from different populations, particularly from the market of
India, China and Malay.
The culture of the country is marked by its vibrancy and
the existence of the racial harmony has affected the
scenario of the organization.
The buying behavior of the customers is marked by the
multiplicity of the demographic factors as well as with the
obsession of the customers with the healthy product.
Technological The area of research and development for Nestle demands
greater care for organization
This is of even greater importance in terms of the market
of Malaysia where the organization is entering.
The evolving technology in the global market has allowed
the organization to adhere to the need of the global
customer.
Legal The implication of the legal system in the market demands
the organization to adhere to the rules and regulations of
the country. NESTLE need to be confident about the legal
implication of the trade in the Malaysian market (Nestle,
2001).
Environmental The environmental aspect of the country has been
developing with increased rapidity.
3. SWOT ANALYSIS
Strength
1. The research and development
of the company has resulted in
the capability of the
organization to expand in the
Weakness
1. The organization has faced
extensive criticism over the
high wastage of the elements
2. The organization has faced

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market of Malaysia
2. Nestle has a strong geographic
presence by the virtue of its
existence as a multinational
brand
3. The strong brand image of
nestle globally with a
unrivalled array of products
4. The attempt of the
organization to establish
sustainability (Köse, 2007)
criticism for the involvements
of the child labor in their
marketing process
3. The weakness of the
organization is from the
contamination of the food
product (Sorayaei &
Hasanzadeh, 2012)
Opportunities
1. The opportunities of the
organization is from the clear
labelling that indicated the
harmful aspects of the products
2. The transparency that is
exhibited in the organization in
the terms of its material
sourcing (Green, 2006).
3. The sudden growth of the
smaller level silicon Valley
based food startups had aided
the organization in their food
products
4. The innovation that the
organization is bringing in the
market tea that are ready to
drink as well as coffee market
(nestle.com, 2020)
Threats
1. The threat of the organization
is from the degrading quality
of water and the scarcity of the
same in certain parts of the
globe
2. The tendency of the people to
have the health conscious food
3. The threat of the organization
is to adhere to the legal
framework of the country
4. The challenge of the brand is to
cater to the need of the
multiple population
5. The increased competition over
the food and the beverage
market has proved to be a
threat for Nestle
6. Due to the current climactic
adversities changes have been
noted in the price of the coffee
raw materials
5. MARKETING OBJECTIVES
The objective for Nestle in order to enter the market of Malaysia is to cater to the
following needs that are crucial for the country
1. Establishing its brand identity in the market of Malaysia.

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2.
3. Fig 1: Confectionary Market
Source: Nestlé, E. 2006
4. Deal with the challenges present in the human rights issues like that of the Child
labor (Mohajan, 2015)
5. Implement the monitoring measures in order to cater to the factor of the
contamination of the food products, resulting in a disruption in the brand name of
the organization.
6. Bring innovation in terms of their food in order to cater to the need of the health
conscious people
7. The brand need to bring about changes training in order to develop a competence
with the dynamic legal scenario

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8. The organization need to adhere to the proposition of the GATT and WTO in
terms of conducting trade in the foreign market
9. The organization need to attain a competitive advantages in the foreign market
where the brand is planning to establish themselves
Fig 2: Nestle Market Share
Source: Nestle, 2005

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6. MARKETING STRATEGIES
Keeping in concern the several objectives that has been shared in the course of the
discussion; the researcher would like to suggest some strategies that would allow the
organization to mitigate the flaws that lie in the market of Malaysia.
1. Differentiation: Nestle need to bring bout changes in their products to cater to the
need of the potential customers. The variation can be brought about in terms of
introducing new product keeping in mind the diverse taste of the diverse
population. Differentiation in terms of the products can be brought about in terms
of introducing values that would suffice the product to be a health conscious
product.
It would be crucial for the market of Nestle as it is a globally acclaimed brands as
producers of confectionaries and beverages. For the people with diabetes and the
conscious of calories, the brand can bring about products based on Sugar
supplements. The chocolates and the beverages can be equally developed along
the line of the supplement-based products.
2. Social media marketing: In order to make its presence felt in the new market, the
organization need to bring about a modified marketing strategies in order to reach
the target market. In the current global business world, the implication of the
social media marketing cannot be denied effectively. The implication of the social
media marketing can be noted in terms of the reach that it is capable of bringing
about in the market (Tuten & Solomon, 2017).
The advent of the information technology has connected the different parts of the
world irrespective of the geographical barriers. Also because of its wider reach,
the social media marketing strategies have been able to connect to a wider group
of the customers with the content about their product. It would also allow the

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organization to establish its brand image in the emerging market for the
organization (Akhtar, Xicang & Iqbal, 2017).
3. The organization can also adopt market entry strategy, which might include the
organization entering the market with collaboration with other organizations in the
existing market. The implication of the collaboration in the market is noted in the
ability of the organization to join with other existing and established organization
in the market. In order to do so the organization can adopt different strategies that
would allow the organization to establish its brand identity. The collaboration
would assist Nestle to cut down the cost that is involved in the operation related
spheres (Yamey, 2000).
4. The organization should bring about training in order to adhere the members of
the organization to the legal aspect of conducting business in the country of
Malaysia.
5. The organization can consider the option of coming in a joint venture with their
competitors as it would allow the organization to develop a competitive advantage
in the new market where the brand is trying to enter (Vander Schee et al., 2011)
6. Nestle can indulge in joint venture with other established confectionary company
where it would allow them to establish themselves in the market where it would
allow them to share the risk of the market as well as a gave share over the existing
customer base
7. MARKETING IMPLEMENTATION)
Sustainability Feasibility Acceptability
Differentiation The strategy is
sustainable for
Nestle as it would
allow the
organization to
enhance their
The R and D
team of the
Nestle are
equipped enough
to consider the
need of bringing
The strategy can
be accepted as the
innovation that is
being brought in
the product
include the

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brand name and
by introducing the
product with
health value
would allow the
organization to
enhance their
sustainable factor
about innovation
in terms of the
product. Apart
from that the
organization is
developing their
products on a
regular basis in
order to suit the
changing taste of
the global market
attribute of the
development of
product that
would provide the
brand with added
advantages
(Busco et al.,
2006)
Social Media
Marketing
The social media
marketing is new
trend in the global
market as it
allows the
organization to
reach to a large
number of
customer over a
comparatively
short period.
The technological
advances and the
capability of the
organization is
equipped enough
in order to bring
about the desired
changes
The response
from the new
customer group
would be
necessary for the
organization as it
would allow them
to develop their
strategies
accordingly and
attain greater
understanding of
the new market
where they are
stepping in
Training The organization
need to bring
about training in
order to accustom
the members with
the legal aspect of
conducting
business in the
market of
Malaysia
The training
would also be
required in order
to serve the
customers who
are marked by
their ethnographic
differences
In order to bring
about the training
the organization
need to bring
about
professional who
will be initiate te
same among the
concerned
members of the
organization
It would provide
the organization
with added
advantages in
order to
understand the
market and
develop their
future course of
action in reaction
to it.
Collaboration Collaboration can
be one of the
market entry
strategy, which
Collaboration
would allow the
organization to
save a
The collaboration
would result in
the loss of the
brand name of the

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would allow the
organization to
enter the market
of Malaysia with
investing much
concern in the
operation related
area. The
collaboration with
the competitors
would allow the
organization to
develop a greater
understanding of
the market and
establish its brand
considerable
amount of the
operation related
cost
organization
8. EVALUATION AND CONTROL
Considering the SAF matrix it can therefore be suggested that for the organization
in order to enter into the competitive yet diverse market of Malaysia, it is
suggested that the organization adopts the differentiation of their product in order
to establish their brand name in the market. The innovation of the product on the
aspect of the health quotients would allow the organization to enjoy an added
advantage over the market (nestle.com, 2020).
Thus it can be recommended for the organization that in order to establish
themselves in the desired market, the organization can carry on with the
establishing themselves with required training regarding the foreign trade in the
market of Malaysia and other related regulations. Nestle by the virtue of its
existence as a global multinational already has its added advantage in the global
market The diverse dynamic market of the Malaysia would prove to be a market
potential market for their confectionaries.

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References
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Akhtar, S., Xicang, Z., & Iqbal, S. (2017). Impact of Brand Image on the Profitability of
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Busco, C., Frigo, M. L., Giovannoni, E., Riccaboni, A., & Scapens, R. W. (2006). Integrating
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