This document discusses the expansion of a business at the international market, focusing on planning phases, shipping of products, the effect of GST law, international marketing campaign, managing financial commitments, and risk and rewards. It provides valuable insights for businesses looking to expand globally.
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Expansion of Business at International Market
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Contents Introduction......................................................................................................................................3 Discussion........................................................................................................................................3 1)......................................................................................................................................................3 Three difference phases of planning............................................................................................3 1 a) Shipping of Products............................................................................................................4 1 b) Effect of Australian GST Law on Overseas Price................................................................4 1 c) Effect of law of other countries and International Agreement on the business....................4 2) Purpose a “Freight Forwarder” and its role in Business.............................................................5 3) Setting up of international marketing campaign through Google and Facebook........................5 4) Managing financial commitments and keeping of financial records..........................................6 5) Risk and reward in the international space and concept of economics within the Business.......7 Conclusion.......................................................................................................................................8 References........................................................................................................................................9
Introduction Expansionofbusinessisreallyessentialsothatassociationcangrabmaximummarket opportunities. For a new business idea, it is essential to develop an innovative plan so that association become successful. The selected idea for the expansion is Espresso Coffee Shop which mainly situated at the Flagstaff railway station to generate more and more profit. Coffee shop owners has analyzed one major competitor only and take coffee beans fromLavazza as they mainly famous at Australian market. This assessment will be covered different factors which strengthen the business like R&D division, finance division, marketing division etc. It will be stated the role of Freight Forwarder and its assistance to a business. Marketing campaign launching will discuss as well with evaluation of estimated cost. A recruitment and hiring process will be discussed in context of a company. Discussion 1) Three difference phases of planning Research and development division is helpful for a business to grow and become successful (Li, et. al., 2016). They are they one which enable Espresso coffee shop to assess major competitors at market and the best location to start coffee shop. R&D department of Espresso coffee shop has initiated some aspects and use planning phases so that they can expand business in Australia properly. The three stages which assess by the R&D department in the planning phase include: Environment assessment: R&D department of Espresso coffee shop has initiated some work to assess the environment or best place to initiate the activity. They assess the best location and type of customers typically determine at such locations. It is a one of a most essential factor which support coffee shop while facilitate operation at international level. Legislation: Another factor which has been assessed by Espresso coffee shop research team refer to legislation. Department has assessed all legal obligation include GST law and other law properly so that they can take proper licensing and facilitate operations properly. Financial/ Economic context: Research and development department of Espresso coffee has assessed the financial aspect and economic stability of the country. They assess
location properly and determine costing used to take place while produce overseas locations. 1 a) Shipping of Products The products can be shipped to overseas with the help of Freight Forwarder. It is a one of a best way to shipped products overseas and gain benefits as well. Before initiating such aspect, it is required for managers to assess some points to shipped products effectively. Espresso coffee shop has to assess these elements before shipped products to overseas customers like in Australia flag staff railway station (5 Tips for Shipping Goods Overseas, 2019): Use customer broker Evaluate the business and duties associated with it include import, export, VAT etc. Taxes Import-export restrictions Prepare budget and focus on plan Espresso coffee shop owners are required to focus on all these aspects before shipped products to overseas customers. It enables in shipped coffee products to Australia easily and proclaim tough competition to rivals present at flagstaff railway station. The price of shipping can become $30 AUD after adding all taxes, duties. It is a simple estimated value which need to charge by Espresso coffee shop to its customers. 1 b) Effect of Australian GST Law on Overseas Price In Australia GST prices will be charged on business with annual turnover of $75,000. The charge of GST in Australia is 10%. Thus, this price will be influenced the overseas prices of products as well. Companies need to pay 10% GST on overall products. Espresso coffee shop need to pay 10% GST only if they define annual turnover of $75,000 which is not possible in the initial days of operations (Australian government, 2019). 1 c) Effect of law of other countries and International Agreement on the business Legislation sometimes influence business or products or services due to certain legislative agreements. Coffee is a healthy product for the customers and do not impose any negative influence on the business. Thus, it not used to disrupt the environment but reduce tension and headache as well. Thus, for such products none of a law used to prepare to restrict it in other
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countries and facilitate with appropriate agreements as well.ISO 14001and ISO 9001 mainly followed by the Espresso coffee shop with ISO 45001 for health and safety standard. 2) Purpose a “Freight Forwarder” and its role in Business Freight forwarder work as an agent which support importer, exporter and many companies so that they can transport their goods and services from one country to other. It is a major body of the international trade market and transport community. Following are some define purpose of FreightforwarderwhichneedtounderstandbytheEspressocoffeeshop ownersinan appropriate manner (Llamazares, 2019): Freight forwarder support Espresso and other companies about export cost, freight cost and other cost so that they can deliver coffee products to Australia properly with additional charges and securely. Freight Forwarder work as a thread between Espresso coffee shop and Australian market so that coffee products reach to destination on time which proclaim high quality standard. Their purpose is to pack entire coffee products in such a manner so that it reach to users without any damage. These are some limited purpose which analyze for the freight forwarder. Such are some major purpose on which freight forwarder mainly work so that espresso coffee shop and other companies can provide quality products to users. They can help business to deliver coffee products to flagstaff railway station in minimal time duration so that a customer trust and faith used to maintain for a longer duration (Gordon, Carrigan & Hastings, 2011). Thus, it is a major role used to perform by the freight forwarder for the Espresso coffee shop. 3) Setting up of international marketing campaign through Google and Facebook. Marketing is a helpful aspect for a business to reach wide range of customers properly. Espresso coffee shop wants to explore business operations in Australia at flagstaff railway station so that business can enhance their value and goodwill in an appropriate manner. An international marketing campaign of espresso coffee shop for Drive thru Espresso with help of social media marketing campaign. Google and Facebook are two relevant strategies to explore marketing about coffee products at Australian market (Czinkota & Ronkainen, 2013). The objectives of a company which need to define initially include:
To serve the customers with outstanding coffee; To earn revenue through providing refreshments to the customers; To establish a world class drive thru coffee shop. Social media marketing strategy is most powerful and helpful aspect for the business to become successful and compete with rivals properly (Al-Dmour, et. al., 2016). It provides an opportunity to reach wide range of customers. Along with this, it also helps in define products information to users so that major target group like university students, passengers can reserve their seats at coffee shop (James and Osborn, 2016). A clear information is required to provide about products include Barista,Lavazza and the milk used to produce coffee Pura and Devondale. Thus, such aspects provide company to take social media marketing strategy advantage and generate more and more revenue with limit of competitor’s sales. Beside this, company can communicate information related to offers and schemes as part of attracting large number of customers. Also, marketing through Facebook has significant audience reach and it helps the company in boosting its sales volume in long run. The average sales of social media marketing strategy can be $70. This need to add in final cost of product while shipped to Australian customers. 4) Managing financial commitments and keeping of financial records Espresso coffee shop will be going to hire some people so that they can manage financial commitment and records properly. It mainly facilitate with the help of manager and accountant who used to take care about record of each single amount (Marsden, 2017). Thus, a hiring is a best aspect to maintain record as a single person is not capable to perform all task and manage environment at workplace. Following are the some steps mainly initiated to recruit accountant for the coffee shop to maintain and manage all sort of records in an appropriate manner which includes: Advertisement in the local newspaper Proper education and skills of financial record management lead to assess properly. Training and induction program lead to hosted so that accountant become aware about roles and responsibility During the first year, the cost which used to impose on this activity is $100 AUD. This is a only cost which can initiate on first year and need to consider by the managers of Espresso coffee shop to recruit suitable candidate for the job. Company has to file a return properly and charge
GST on products and services with VAT as well. All such legal obligations are required to fulfil so that coffee shop can easily facilitate their operations at Australian market. The major documents which need to keep while initiating the activities include: Registration paper GST number ISO certificates Code of ethics form All these are some important documents which need to organize the activities in Australia. With the help of these, all activities in Australia can initiate properly and in an effective manner. 5) Risk and reward in the international space and concept of economics within the Business Different risk and rewards are identified in the international space which impose adverse effects on a business (Wilkins, 2016). It is really essential to draft some plan so that risk and rewards get manage at international level. The major risk aspects or issues which can be identified for the drive thru espresso are listed as follow: Decline in profit Monetary loss Social issues These are the major problems which can be encounter by the espresso coffee shop. With these problems, coffee shop can also initiate some benefits and positive aspects. These rewards are assessed in terms of opportunities (Christopher & et.al., 2011). Such opportunities are required to assess properly so that business can involve them in future: Innovation can be a reward for business to strengthen their position Reach to wide range of customers Improvisation in serve delivery approach include environment friendly method Expansion of menu with some new products These all are major rewards which boost business towards positive direction. It has helped a business to become superior and different from others as well. The economics refer to aspect of a country in which business mainly operates. Australia is an example of mixed economy where all
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concern business lead to take place. Mixed economy is mainly encounter by the Espresso coffee shop with their expansion model. This sort of economy is helpful for a business as it brings many opportunities for a business (Clarke, Tamaschke & Liesch, 2013). Moreover, it provides a positive interface to business with different competitors. A cut throat competition maintain healthy environment in the market. It mainly contributes in the economic development and growth. Hence, such sort of economics is mainly encounter by drive thru espresso at Australian market world. Conclusion On the basis of assessed report, it has assess that expansion of business need more and more aspects to consider. Research and development department has to focus on different aspects like legislation, economy and environment of the market place. For shipping of products at overseas, companies mainly use freight forwarder to export products safely without loss and damage. 10% GST law has been imposed on the business but with annual turnover of 10%. Freight forwarder has helped in better management of goods and services from one country to another safely with any hurdle and disruption. Social media marketing costs high but assist in delivery of information to users properly. Accountant has helped in better management of financial records and transactions properly so that business become successful. Various risk and rewards has been identified which enable a firm to operate properly in mixed economy system. Risk has analyzed in lack of understanding of market, decline in profit etc. Rewards has assessed as reach to more users etc.
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