Business Report on South Indian Foods Limited

This business report provides a comprehensive analysis of the market selection, entry mode, and communication strategies for South Indian Foods Limited in Malaysia. It includes an examination of the Ansoff Matrix Model, PESTEL analysis, Porters Five Forces Model, SWOT analysis, and market entry mode. The report also discusses the target market and positioning strategy for the company.

Running head: BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Business Report on South Indian Foods Limited
Name of the Student:
Name of the University:
Author Note:

1BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
EXECUTIVE SUMMARY
The primary aim of this paper is to design an international business report plan for the
company named as South Indian Foods Limited concerning the country of Malaysia. In this
connection, the study analyses the rationale of the market according to the MCTs of Ansoff
Matrix Model. Further, the study investigates the PESTEL factors of Malaysia that may
create influence in the business procedures of SIFL. Moreover, the report also examines the
Porters Five Forces Model and SWOT analysis that helps in the examination of the potential
strengths and weaknesses the company has in the market of Malaysia. Furthermore, the study
examines the market entry mode for the concerned industry and the effective communication
process to communicate with the customers. The report also critically focuses on reviewing
the promotional mix strategies which would help the company to make itself aware in the
eyes of peer customers and market. Finally, the report ends with analysing the possible
increase in the effectiveness with the help of key performance indicators for the concerned
business as per the report planned.

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Table of Contents
Introduction................................................................................................................................3
The rationale of Market Selection..............................................................................................3
Ansoff Matrix Model.............................................................................................................3
PESTEL Analysis.......................................................................................................................5
Porters Five Forces Model...................................................................................................11
SWOT Analysis of the food industry in Malaysia...............................................................13
Market Entry Mode..................................................................................................................14
Communication with potential customers................................................................................16
Announcing presence in the market.........................................................................................17
Promotional Mix..................................................................................................................17
Key Performance Indicators through the communication ideas..........................................20
Conclusion................................................................................................................................20
References................................................................................................................................21

3BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Introduction
The given report is based on the company South Indian Foods Limited in
consideration with its business set up in the country Malaysia (Salim and Padfield 2017). To
investigate the same, the paper focuses on analysing the several micros and macro
environmental factors of the Malaysian business market that would create a significant
influence on the future of the concerned company. The report is structured to understand the
entry mode of the company to the demand for Malaysia and suggests the possible ways of
communicating with peer customers.
The rationale of Market Selection
As opined by Tietenberg and Lewis (2016), the idea of market penetration to a new
international based country is generated because of the urge to achieve growth in the current
business conditions in a global nature. In this connection, the report tends to suggest the
Ansoff Matrix Model to the company of SIFL in context to investigate the market of the
Malaysian food industry.
Ansoff Matrix Model
As stated by Presley, Meade and Sarkis (2016), Ansoff Matrix Model is a strategic
tool that imparts a framework for the management of a business entity to develop strategical
plans and processes for future benefits. In this connection, the four different growth strategies
for working organisation of SIFL concerning the country of Malaysia. The same is explained
as below.
 Market Development – It will critically help SIFL to analyse the strategy and mode
to enter the new market.

4BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
 Product and Development – SIFL will be to develop and modify its products and
services according to the market structure of Malaysia where the firm has decided to
expand itself.
 Market Penetration – After analysing the mode of entry to the market and strategies
to develop the product according to the taste and preference of Malaysia, the model
helps the company to penetrate the depth of the same. This would encourage SIFL to
increase the sales volume of its products and services.
 Diversification – This strategy of Ansoff model will help SIFL to investigate the
need to diversify from its core products and services. Thus, the concerned company
can effectively shift to the market of Malaysia with the idea of selling new products
with its current base of customers and acquisition.

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Figure 1: Showing Ansoff Matrix Model
(Source: By Author)
PESTEL Analysis
As stated by Moutinho and Phillips (2018), PESTEL analysis is a business tool that
helps in analysing the macro-environmental factors that impact the organisational working
plans and procedures.
Political
As analysed in the below diagram, it is examined that the political stability of
Malaysia which has fallen adversely in the year of 2016, has gradually increased after that in
2017 and at present is expected to increase at a growing rate. This becomes an opportunity
for the SIFL to enter the Malaysian market.
MARKET
PENETRATION
MARKET
DEVELOPMENT
PRODUCT
DEVELOPMENT
DIVERSIFICATION
CURRENT PRODUCTS NEW PRODUCTS
CURRENT
MARKET
NEW MARKET

6BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Figure 2: Political stability of Malaysia
(Source: Based on Von Vorys 2015)
Economic
The economic growth of Malaysia has recorded to grow significantly in the year of
2017. Studies show that the economic growth of Malaysia was at its peak point in the year of
2014. However, the same has decreased in the fiscal year 2015 and 2016. Studies also show
that the economic growth of Malaysia increased recognisable in the fiscal year of 2017. The
same is illustrated in the below diagram.

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Figure 3: Economic growth of Malaysia
(Source: Based on Lee and Ng 2015)
Social
As stated by Goodin and Le Grand (2018), the social condition of the middle-class
people in Malaysia in increasing and newly wealthy people are emerging in the society of
Malaysia. Studies even show that the literacy rate of Malaysia is growing significantly since
last three chronicle stages of the year. The same is illustrated in the given below diagram.

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Figure 4: Literacy rate of Malaysia in chronicle order
(Source: Based on Islam and Asadullah 2018)
Technological
The Ministry of Science regulates the technical factors of Malaysia, Technology as
well as innovation (Ainin et al. 2015). This leads the technology sector of Malaysia to be
powerfully effective and efficient. Studies show that the technological exports of Malaysia
have been examined to be growing in a record-breaking manner since the fiscal year of 2012.
The same is illustrated with the help of the given diagram.

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Figure 5: Showing technological export in Malaysia
(Source: Based on Rasiah, Crinis and Lee 2015)
Environmental
Researches show that the natural environment of Malaysia consists of biotas and
geologies approach that sustains the natural environment of Malaysia. As opined by Andrew,
Ismail and Djama (2018), Malaysia is renowned as a country of the megadiverse country
consisting of a bio-diversified range of flora as well as fauna that are found in different
regions of the concerned nation. Studies showed that the agricultural land of Malaysia is
increasing with passing years that proves the environmental stability of the same. The
statistical data on agricultural land in Malaysia is shown below.

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Figure 6: Showing agricultural land owned by Malaysia
(Source: Based on Sulong and Taha 2016)
Legal
Studies show that the legal considerations in the country of Malaysia are examined to
be strict and ordered according to its viable rules and regulations (Crane and Matten 2016). It
was also analysed that the legal factors of the country have improved in the past few years.
This statement can be proved by stating that the trade openness in the country has developed
in the fiscal year of 2017 because of the laws and orders of the concerned nation. The same is
shown in the diagram given below.

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Figure 7: Showing Trade openness in Malaysia
(Source: Based on Sohag et al. 2015)
Porters Five Forces Model
As opined by Barney (2015), Porter’s Five Forces Model is that strategical tool of
business that helps it to analyse the potential strengths and weaknesses the business entity has
in its working environment. In this connection, the same is explained in terms with the
country of Malaysia concerning the SIFL.
Suppliers Bargaining Power
The suppliers of the Malaysian market is considered to indulge all the maximum
sources of inputs for a food concerned would need. It helps the business in its scope for sales
of goods and services the company deals with. Therefore, the study tends to state that the
bargaining power of the suppliers is not that strong because SIFL in consideration to expand
its business in Malaysia will have several options to choose from multiple ranges of
suppliers.

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Customers Bargaining Power
Concerning the market of Malaysian business environment, it was examined that the
customers are known to impose pressure on the business entities to provide them with
substantial discounts. This, in turn, would result in the weakness of SIFL to gain a high
amount of revenue and profit.
The threat of new entrants
Studies examined that SIFL has a constant threat of new business entities concerning
food and beverages in the market of Malaysia. In this connection, the concerned business
organisation should focus on keeping pace with diversifying and modifying their business
strategies and plans to stay ahead of the new companies entering the market.
Existing Rivalry
The ideology of rivalry players is the intense competition that already exists in the
business market of food and beverages industries in Malaysia. In this context, it was
examined that the rivalry power of food and beverages companies in Malaysia is at a higher
level. Therefore SIFL should focus on practical and efficient research and development
practises estimating the strategies of the potential competitors.
Substitute Products
SIFL always has a threat of business entities upbringing modified and similar
products entering into the market of food and beverage industry of Malaysia. This results in a
higher level of danger for the concerned business organisation to have a reduction in their
competitive advantage.

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SWOT Analysis of the food industry in Malaysia
As opined by Bull et al. (2016), SWOT analysis is that business tool that helps an
efficacious business organisation to understand its inherent strengths and opportunities as
well as the weaknesses and threats that may occur in the working proceedings of the business.
In this context, the SWOT analysis affecting the business limitations for SIFL in Malaysia is
determined as below.
Strengths
 Flexibility in terms of being able to implement new products and services regarding
the different varieties of food that would enhance the taste of India in Malaysia
through SIFL.
 Availability of effective raw materials to produce the final food products to be
offered by SIFL.
Weaknesses
 The margin of low profitability earning in the food industries in Malaysia will affect
the revenue of SIFL.
 Limited portfolio of food products categories concentrated in Malaysia.
Opportunities
 The edible oil used for the preparation of food products is expected to grow by 6% at
an annual rate by the end of 2021 in Malaysia, and the price of the same is expected to
decrease. This would provide an opportunity to SIFL for preparing quality foods at a
lower rate of production.

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 The peer customers of the food industry in Malaysia are recorded to increase their
purchase of foods offered by international restaurants. Thus, the SIFL can reach its
target market with the help of creating an omnichannel of distribution strategies.
Threats
 The limitations in the global growth of the food industry in terms of Malaysia may
affect the future paradigm of SIFL.
 The frequent changes and uncertainties in the developing food market of Malaysia
impact the variables of growth of food industries in the concerned country. The same
would thus affect the growth of SIFL.
Market Entry Mode
As opined by Buckley and Casson (2016), a business entity to expand its business
opportunities has to excel in the global sector along with its establishment in its local market.
In this connection, the study considering the above shreds of illustrations tends to state that
the market of Malaysian foods and beverages would be efficient for SIFL to expand its
business.
Target market and positioning strategy
In the modern world of the business environment, STP is done for the examination of
Segmentation, Target and Positioning of the market in order to examine the new customers
and market (McDonald and Wilson 2016).
 Segmentation of the products and services according to the taste and preference of the
customers and the end market to fulfill their demands and expectations. The better the
products, the more the sale.

16BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
 Targeting the market as per the demographics of the country. As researches show that
the total population of Malaysia is 32,036,583 and amongst them, the median age
group consists of 68.35% of the total of them (Lee et al. 2017). This is evident that
SIFL has excellent opportunities to expand in Malaysia because the median age is the
people who are more interested in various kinds of foods and dishes.
 Positioning of the business entity according to the infrastructure of the business
market of Malaysia to attract the maximum number of peer buyers for the products
and services.
Objectives to enter the new market
Any business entity entering into the international business market has some specific
goals and objectives in the processes and plans. In this connection, the purposes of SIFL to
enter the market of Malaysia are determined with the SMART analysis (Diaz-Diaz, Munoz
and Perez-Gonzalez 2017).
 Specific to expand its business in the international sector. Measurable in terms of keeping their cost of inventory and production to the minimal
range. Attainable in terms of achieving their desired goals and objectives effectively and
efficiently. Relevant in terms of providing new types of food to the international base of
Malaysia. Time-Based in terms of timely satisfying the demands of the customers.
Primary market research methods
As opined by Bell, Bryman and Harley (2018), the market is researched by a business
entity with the help of two main methods named as Primary and Secondary. In this

17BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
connection, SIFL can research the market of Malaysia with the help of the same. Undertaking
the primary research would allow SIFL to take survey researches, interviews focusing on a
group of people, observing the market condition and experimenting their products and
services by providing a free trial to the market. Secondary Research would include the studies
and researches done by other people before and recently that would require the company to
examine the market condition of Malaysia and the strengths and weaknesses of the same.
Market entry method
Based on the examination of the above, the study tends to state the best method of
entering the market for SIFL in terms of Malaysian food and beverages industry is the mode
of setting a whole new business entity (Fishcer 2016). The reasons behind the entry as a new
start-up business of SIFL in Malaysia are specified as below.
 SIFL will be able to gain a better competitive advantage because of its different nature
of offering South Indian food in Malaysia.
 The political stability of Malaysia is strong and thereby would help SIFL to gel up
with the government rules and policies.
 SIFL would be able to gain a monopoly in the food industry of Malaysia with the
start-up of a new company since no South Indian food Industry alone is reported to be
established in Malaysia.
 The expected growth in social stability, as well as the environmental factors in
Malaysia, will help to increase the sales and production techniques of SIFL.
Communication with potential customers
In order to communicate with the peer consumers to the foods and beverages offered
by the SIFL, there are several methods of communicating with them. Few of them are
mentioned below.

18BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED

19BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Face- to- face communication
The business entity can physically communicate with the customers when they visit
the stores and ask for their desired products and services.
Verbal communication
The business entity can communicate with the peer customers with the help of making
verbal communication through the means of a phone call or any other available audio call
techniques for the business purpose.
Non-verbal communication
There are several means of non-verbal communication that are available to the
business entity to communicate with their customers mainly online means of sending emails
and information or offline means of texting.
Announcing presence in the market
In order to let people be aware of the existence of the business in Malaysia, the
business entity has to promote itself in the business environment. The promotional techniques
are explained below.
Promotional Mix
Promotional mix technique is a part of the marketing mix that consists of several
aspects that helps the business entity to reach their several goals and objectives (Morse 2016).
The theory of promotional mix explains the several ways of letting the customers know about
the business.

20BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Advertising
Advertising through the means of different online and offline methods of
communication such as social media like facebook, instagram, google ads and twitter.
Several means of offline communication such as television ads, radio ads and newspaper ads.
The online means of advertising will help grab a considerable amount of audience at one
point of time and will help the business entity to promote the whole business at a minimum
period. The traditional means of the promotion will help the business promote its product to
the audience who prefer offline methods of communication. Thus, a massive number of
audience will be grabbed by the help of advertising promotions.
Sales Promotion
Sales promotion is a technique through which a business promotes its product as
small demo packages or offering a different form of discounts and offers so that the
customers know about the existence of the company as well as its potential products and
services. The business firm can focus on offering different types of food products and
services that would create an impact on the international people about the taste of the origin
of SIFL’s base country. This will help promote the effective products and services of the
concerned country, and the international people will understand the different tastes that abide
in different parts of the world. This, in turn, will help the business to increase its sales and
promotion.
Personal Selling
It is that selling procedure where the business entity sells the product to the customers
in the physical presence of them. The sellers promote their products with their marketing
skills and talents in the on shop techniques. The customers are treated with sufficient priority
to attract them to the services and make them feel that they are the most influential people in

21BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
the business for the owners. This will help the business entity to attract a number of
customers as they will feel like part of the business and not just the customers.
Direct Marketing
In this means of promoting the products, the business entity sells its product through
means of telephonic conversations and even messages. The business entity can sell its
products to other wholesalers and retailers as well. The small stores would then sell the
products to their customers, and the promotion will thereby take place.
Public Relations
Public relations is the means of promoting business with the help of building healthy
business relationship with potential customers. The business entity is liable to keep
transparency with its customers in order to gain higher customer and brand loyalty.
Promoting the business through the means of public relation helps the business entity to
sustain in the long run. It will help the concerned company to gain loyal customers and
therefore the risk of customers shifting from one company to, and in turn, the sales revenue of
SIFL will increase.
Based on the above pieces of evidence the study tends to state that the culture and the
branding as well as the buyer behaviour of the customers since they are the only who are to
decide the considerations of the business entity. Their feedbacks and reviews will determine
the future paradigm of the business and will help gain the business organisation gain a
compelling competitive advantage in the field of food and beverage industry in the Malaysian
market. As stated by (), customers are the real boss of the business, and they are to be kept at
a perceived value from the business.

22BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Key Performance Indicators through the communication ideas
Based on the shreds of evidence of the report presented the estimations for SIFL that
is expected is analysed with the help of key performance indicators. The same is interpreted
as below.
 The sales and promotion of the business are expected to increase by 10%.
 The website traffic is expected to increase by 5%.
 The expected awareness in the business market of Malaysia is said to be increased by
10%.
 The profit and revenue of the SIFL are estimated to increase by 10%.
 The competitive advantage of the SIFL is estimated to increase by 5%.
Conclusion
On the examination of the above-examined report, the study tends to conclude that
SIFL has excellent opportunities and strengths to expand its business in Malaysia. This is
because the political stability of Malaysia is durable and will help to have a good political
background and run its business entities. However, as stated in the report above the country is
limited to the profit earning capacity of the business environment of Malaysia. The study
critically indicates that in order to maintain a healthy business relationship with the
customers, the business should focus on promoting their products and services and should
keep the quality of the same at a premium level in order to attract and satisfy the customers.

23BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
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