International Business Approach of Ingham Enterprise

This report discusses the international business approach of Ingham enterprise including its different elements. It also identifies the available international business strategies for Ingham enterprise. The report concludes that transnational strategy should be initiated by Ingham enterprise along with initiating the entry strategy of Greenfield investment in operating in the target market.

Running head: STRATEGIC MANAGEMENT
Strategic management
Name of the student
Name of the university
Author note

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Executive summary
The aim of this report is to discuss about the international business approach of Ingham
enterprise including its different elements. In this report, the available international business
strategies for Ingham enterprise are being discussed. It is identified that Ingham enterprise is
having huge global business opportunities due to the rapid increase in the fodder and meat based
food. In addition, this report concluded that transnational strategy should be initiated by Ingham
enterprise along with initiating the entry strategy of Greenfield investment in operating in the
target market. This report stated a few recommended steps that will further help Ingham
enterprise to enhance their future strategic direction.

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Table of Contents
Introduction......................................................................................................................................3
Identification of international opportunities....................................................................................4
Identification of the international strategies....................................................................................5
Identification of the mode of entry..................................................................................................6
Greenfield investment..................................................................................................................6
Joint venture investment..............................................................................................................7
Direct exporting...........................................................................................................................8
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
Reference.......................................................................................................................................10

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Introduction
Agribusiness is one of the major business sectors in Australia with having the position of
employing ones of the largest workforces in the country. It is reported that agribusiness of
Australia is estimated at US$ 256 billion. It is also reported that agribusiness in Australia will
continue to witness growth in the coming years. Australian agribusiness consists of meat, poultry
and farming activities and with having market span of over 60 countries in the global market
(Plunkett et al. 2017). Thus, it can be said that agribusiness of Australia is well established and
expanded with having maximum opportunity in the future. However, it should also be noted that
with the increase in the opportunity in this sector, competition is also increasing due to the
inflow of new companies. It is causing the existing companies to witness the increase in
competition and affecting their profitability (Whitton, Baker and Mounter 2016).
Ingham enterprise is one of the largest producers of poultry and fodder products in
Australia. They are founded in 1918 in Adelaide and currently they are having more than 100
stores around Australia and New Zealand with having employees of more than 9000
(inghams.com.au 2018). Thus, they are one of the leading names in the Australia agribusiness
sector. However, till now, the products of Ingham enterprise are only available in Australia and
New Zealand. Thus, it is becoming more important for them to tap newer markets in maintaining
their competency in their business operation.
This report will discuss about the international opportunities available for Ingham
enterprise along with discussing potential strategies for the enhancement of their business. In
addition, different entry mode strategies will be discussed that will be suitable for Ingham

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enterprise. In accordance to the above identified elements, a few recommended steps will also be
discussed.
Identification of international opportunities
One of the major opportunities for Ingham enterprise is increase in the demand for
poultry items. It is reported that average global economy is growing and with that the demand for
protein food is increasing in the global market. This provides huge opportunity for Ingham
enterprise in selling their high protein poultry items in the global market (Ahmad 2014). On the
other hand, another major opportunity for Ingham enterprise is having both chicken and turkey
based products. This will help in targeting different market segments based on the popularity and
preferences for particular type of meat. Demand for fodder is also increasing mainly in the under
developed and developing countries (Camelia 2014). Hence, this is another major opportunity for
Ingham enterprise to tap the livestock market in these countries. Developing countries such as
India and China are having huge population and thus market for agri products is more in these
countries. This will also act as business opportunity for Ingham enterprise in their global
business.
With the increase in health consciousness among the average customers around the
world, demand for organic food products is increasing. Ingham enterprise with their existing
infrastructure can focus more on producing organic food products that will help them to tap the
growing demand for organic products in the global market (Lee and Yun 2015). It is reported
that Ingham enterprise cancelled their halal certification in 2008. Thus, if they can have this halal
certification again, they will be able to tap the market opportunity in the Islamic countries.
Demand of meat is always high in the Islamic countries and thus halal certification will help in

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tapping this opportunity. Thus it can be concluded that Ingham enterprise is having huge market
opportunities only if they can operate in the global market.
Identification of the international strategies
In order to identify the potential international strategies for Ingham enterprise, Ansoff
matrix will be the most effective tool. According to this tool, there are mainly four strategies
being available to the business organizations in enhancing their business in the global market
(Hussain et al. 2013). One of the major strategies that can be initiated by Ingham enterprise is
developing newer products. Ingham enterprise is not having any vegetarian foods other than
meat based food. Thus, with the help of the market development strategy, Ingham enterprise will
be able to develop new products that will targeted to the vegetarian population around the world.
Target customer segments will get increased for Ingham enterprise. Another international
strategy that can be initiated by them is product diversification (Oh, Sohl and Rugman 2015).
This will enable Ingham enterprise to enter in a new market segment different from their existing
one. For instance, they can launch ready to eat packaged food. This will help them to tap the
larger market segments apart from their existing customer segments. There are number of
countries where ready to eat food is having huge market share and diversification will help
Ingham enterprise to tap this market.
Customization or product adaptation can be another effective international business
strategy for Ingham enterprise (Hussain and Khan 2013). This is due to the reason that food
products are having forms with different tastes in different countries. Thus, it will be effective
for Ingham enterprise if they can customize their existing products in accordance to the
preference pattern of the target market. This will help them to target the customers from different

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countries properly. This strategy can also be termed as product development strategy according
to Ansoff matrix (Griffith et al. 2014). It should also be considered that initiation of the product
adaptation strategy will also enable Ingham enterprise to source their raw materials from the
local partners. Thus, the cost of operation will get reduced due to the low cost involved in
sourcing materials locally.
However, it is also identified that transnational strategy may also be suitable for Ingham
enterprise. This is due to the reason that with the help of the transnational strategy, Ingham
enterprise will be able to maintain some of their global elements as well as customizing others
elements according to the target market (Miska, Stahl and Mendenhall 2013). For instance,
Ingham enterprise can maintain their brand name, logo and some of their core product offerings
as well as offering some more specific products accordingly. This will help them to target the
local market along with maintaining their existing brand identity and value.
Identification of the mode of entry
Greenfield investment
There are number of mode of entries available for the business organizations in doing
business in the global market. Each one of these entry modes is applicable in different situation
and for different sets of business. In the case of Ingham enterprise, one of the most effective
entry mode strategies will be Greenfield investment (Tulung 2017). This is due to the reason that
with the help of Greenfield investment, they will be able to set up their plant and base in the
target country and can manufacture the products according to the local market trend. This
strategy will also help Ingham enterprise to change their business and product strategy in
accordance to the change in the local market trend. In the current business state of affairs, taste

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and preferences of the customers are changing rapidly and it is important for Ingham enterprise
to have flexible operation facilities to cope up with this change. With having the physical
facilities in the target market, Ingham enterprise will be able to offer products according to the
change in the market. In addition, having the physical setup in the target market will help Ingham
enterprise to offer products in competitive price by sourcing the materials locally.
However, in the case of Greenfield investment, the major barrier that will be faced by
Ingham enterprise is increased cost of investments. This is due to the reason that in the
Greenfield investment, the entire investment for setting up the facilities in the target market
should be borne by Ingham enterprise. Thus, the business risk will increased for Ingham
enterprise and they will also face in having positive return on investments (Stoddard and Noy
2015). Furthermore, Ingham enterprise will have the risk related to the political risks and other
external risks. In case of any unwarranted incidents in the target country, it will be difficult for
Ingham enterprise to get the maximum out of their investments.
Joint venture investment
Another major mode of entry that will be effective for Ingham enterprise will be joint
venture. This refers to the process of entering in partnership with another firm preferably from
the target country. Thus, the risk and level of investment will get divided between the two
entities. Moreover, partnership with a domestic firm will help in determining and catering the
local market effectively (Sun and Lee 2013). This is due to the reason that domestic firm will
have more market data about the local market that will be beneficial for Ingham enterprise.
However, on the other hand, it should also be noted that initiation of joint venture may pose
challenges in the business operation of Ingham enterprise. In the case of joint venture, business

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decision in the host country cannot be taken only by Ingham enterprise; rather they have to
consult with their partnering company also. This may create issues in the decision making
process.
Direct exporting
Direct exporting is another potential mode of entry for Ingham enterprise in operating in
the global market. This refers to the transportation of the goods from the home country to the
target market without having any physical facilities in the host country. However, this strategy
will not be appropriate for Ingham enterprise due to the fact that agri products sold by them
should be made offered in competitive price and export strategy will increase the price by means
of tariffs and taxes (Sui and Baum 2014). In addition, in the case of direct exporting, product
adaptation strategy cannot be implemented according to the taste and preference pattern of the
target market. This will further increase the challenges for Ingham enterprise in operating in the
host market (Eriksson et al. 2015). However, it should also be noted that direct exporting strategy
will help Ingham enterprise in having less risk related to investments in the host country.
Recommendations
 It is recommended that Ingham enterprise should initiate the transnational strategy along
with having Greenfield investments. This is due to the reason that transnational strategy
will help them to tap the local market effectively and Greenfield investments will further
help to design the product strategy accordingly. Moreover, effective evaluation of target
market is important to identify the potential target country where Greenfield investment
will have more positive return on investments.

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 It is also being recommended that Ingham enterprise should initiate market development
strategy by means of developing new products and targeting new customer segments.
This will help Ingham enterprise to enhance and diversify their existing customer base
and generate more volume of sales. Furthermore, it should also be noted that extended
product portfolio is important in order to operate in the global market and catering to
different sets of customer segment.
 Ingham enterprise can also initiate the strategy of horizontal growth strategy by means of
acquisitions and mergers. This will help Ingham enterprise to create favorable presence in
the target market in short timings along with reduction in the level of competition by
merging or acquiring competitor firms. This can also help Ingham enterprise to gain the
market share in the target market along with the brand value and identity of the acquired
firm.
Conclusion
This report concludes that Ingham enterprise is having huge opportunity in doing
business globally. In this report, different opportunities in the international market for Ingham
enterprise are being discussed along with the potential international strategies for Ingham
enterprise. It is identified that entering in the foreign market can help Ingham enterprise to
enhance their sales volume, revenue and market segments. In addition, this report also concluded
that Greenfield investment will be the most effective mode of entry for Ingham enterprise due to
the reason that it will help in offering localized products in competitive price. A few
recommended steps are being discussed in this report that can further enhance the strategic
direction of Ingham enterprise in their future course of business.

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Reference
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