International Business Plan : KORA organics

International Business
Plan

Table of Contents
INTRODUCTION TO THE REPORT............................................................................................3
BRIEF BACKGROUD OF COMPANY AND INTERNATIONAL COUNTRY.........................3
CONCLUSIONS OF SWOT ANALYSIS......................................................................................4
ADDITIONAL ANALYSIS OF COUNTRY.................................................................................5
COMPETITIVE STRATEGY ANALYSIS (PRODUCT)..............................................................6
MARKET ENTRY OPTION ANALYSIS......................................................................................7
MARKETING AND R&D CONSIDERATIONS...........................................................................8
RECOMMENDATION REGARDING PRODUCTION................................................................8
INTERNATIONAL HRM ISSUES AND CONSIDERATIONS...................................................9
CONCLUSIONS..............................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION TO THE REPORT
The following report is based on a comprehensive international business plan. In this report
a company naming KORA Organics is planning to establish business in an Asian country.
KORA organics is an Australian organisation which is founded by an Australian model naming
Miranda Kerr in the year 2009. In this report, India is the country where establishment of KORA
Organic is taking place and this assessment will help in identifying market opportunities for
products and services of organisation. This report describes market entry strategy options and
R&D considerations for this company. At last, international human resources management issues
are explained.
BRIEF BACKGROUD OF COMPANY AND INTERNATIONAL
COUNTRY
The KORA Organics is going to establish new business in an Asian country, India. India
is world’s fastest growing economy and the GDP rate of India is expanding every year. Indian
market is a great opportunity for new businesses to establish business and capture new
customers. It is also challenging for KORA Organics to attract Indian customers towards organic
beauty products. The India Government is working on making India an ideal place for
investments. There are many companies which have entered Indian market and achieved great
profits and revenue. When a country decides to enter Indian market it is necessary to analyse
different factors like PESTEL or SWOT as these helps to estimate possible opportunities that
KORA Organics have in Indian market. Most of the foreign companies are establishing business
in India because Government of India allows foreign companies to own up to 100$ of the
business. KORA Organics is an Australian company that was founded by a model, Miranda Kerr
who is very passionate about beauty products and skin care. This woman is passionate about
natural skin products and thus created a company that sells natural and organic skin care
products. In the initial stages, products of company were sold through website
www.koraorganics.com and a retail giant David Jones. These products were appreciated by
customers in US as well as other international countries. There are different kind of products of
KORA organics. These are made from quality certified organic ingredients that consists of Aloe
Vera, Green Tea and lavender. Different products offered by KORA Organics are mists,
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cleansers, creams, etc. for various usages on face, lips, body, eyes, etc. In the marketing of
product of this company, Miranda Kerr used herself as the brand ambassador. Social media was
the key approach used by this organic product company to market itself in the world. In present
scenario, there are hundreds of retail stores in the world and mostly the products are sold online.
The website used for selling products of KORA Organics is Magneto ecommerce platform. The
marketing strategy of the company was very good as they sold personalised cards with blessings
to every new customer of products. This helped KORA Organics in increasing satisfaction and
loyalty among customers. The main reason behind success of KORA Organics is it’s
advertisements and promotions that are based on real life experience of Australian model,
Miranda Kerr. This company is using social media effectively to generate awareness about it’s
products and they generally promote products through websites like Instagram, Facebook,
Pinterest, etc. There are more than 100,000 followers of this brand on social media. Another way
used for advertising KORA Organic brand is placement of posters on Bus stands and Billboards.
CONCLUSIONS OF SWOT ANALYSIS
SWOT analysis of the company is done to analyse the threats and opportunities that are
present for company while entering into new markets. Summary of SWOT analysis of KORA
Organics while entering into India is described below-
Strength
There is a drastic change in market of India these days. There is a huge change in
technology and trends of customers. Indian customers are also preferring online service delivery
of products. In India, the population of youngsters is about 267 million and Indian consists of a
number of target customers. Indian customers are influenced by advertising products with
celebrities like film actors, cricketers, singers, etc. Thus, KORA Organics can hire a local
celebrity to be the brand ambassador of the brand so that there is increase in sales of products of
the company.
Weakness
The major weakness of KORA Organics is that Indian customers are not aware about
benefits and advantages of organic products. KORA Organic has to work upon creating
awareness of organic beauty products to people so that they can buy creams and other products
of the company. Also Indian customers are not willing to pay extra for an organic product rather
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they would prefer other less expensive cream. Thus, KORA Organic has to solve this issue and
change it’s pricing strategy.
Opportunities
There are numerous opportunities for customers in Indian market. As India has huge
population, there are a lot of customers who can buy the products of company. IF KORA
Organics captures only 10% of Indian beauty product market, then it will be very beneficial for
the company to generate revenue. Also, the Total Disposal income of India will increase by 2020
so there will be more number of customers that will buy organic products of KORA.
Threats
There are several opportunities and threats for KORA Organics to settle business in India.
But on the other hand, there are many threats also while selling products in Indian market. The
major reason that limits new companies to establish business is corruption. When any foreign
company enters Indian market, it is opposed by different local marketers and sometimes political
influences are also made regarding such issues. If KORA Organics wants to capture Indian
market then it should become competitive. This can be done by collaborating with any
international brand that can provide more financial support to this brand for establishing success
in business. Indian market is very competitive and it is not possible for companies to capture
Indian customers easily. They require more time. It is not easy for new companies and especially
foreign companies to enter Indian market and do business. KORA Organics has to make
effective market plans and strategies to attract Indian customers.
ADDITIONAL ANALYSIS OF COUNTRY
India is said to be the nation, which has occupied space among growing economies.
Therefore, it can easily be said that for Kora Organics, it will be beneficial for the company to
expand its business in India. As mentioned by pwc.com.au development rate of India was
expected to 7% in the year of 2018 and it is also consisting with an average rate of 6.5 % to get
expanded in upcoming years from 2019 to 2025. Citizens of India, now started considering of
focusing upon their looks and showed their concern towards their skin care. Women in all over
India focuses upon improving their skin tone and men are likely to become attractive with the
help of cosmetics. Organic products are said to be one of the crucial approach which business
organisations has started entering this market area. This has helped them in becoming a well-
known brand in India in such a short span. As the business organisation is going to Target both
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women and man and, it will be required for the company e to make alterations as well based on
the requirements of citizens of India. on the other hand the Framework which India has chosen
that is market-based has also helped government of this country to attract FDI. Many
organisations like Tesco, Starbucks and more has expanded their business within this country
which could be considered as the reason behind Kora organic may easily reach to desired goal
and that is to expand its business successfully within India.
COMPETITIVE STRATEGY ANALYSIS (PRODUCT)
If it is talked about competitive strategy analysis, porter’s generic model can be utilised
by Kora Organics. With the help of this, position of a company within its industry determines
whether its profitability is above or below the industry average. The fundamental basis of above
average profitability in the long run is sustainable competitive advantage. There are two basic
types of competitive advantage a firm can possess: low cost or differentiation. The two basic
types of competitive advantage combined with the scope of activities for which a firm seeks to
achieve them, lead to three generic strategies for achieving above average performance in an
industry: cost leadership, differentiation, and focus. The focus strategy has two variants, cost
focus and differentiation focus. Porter’s generic model in regards to Kora Organics is done
beneath:
Cost Leadership : Under this factor of Porter generic model, where Kora Organics is
entering a new market i.e. India and looking forward to become a well known brand of products
that are considering low cost. In context of Kora Organics, organisation has decided to use this
type of approach in order to improve the sustainability and recognition among people through
offering them with different range of benefits with their products or services offered by them.
Organisation can take help of different range of elements like pursuit of economies of scale,
proprietary technology, preferential access to raw materials and other factors. Becoming a low
cost producer, it can help Kora Organics to gain money competitive advantages and through this
cost leadership approach organisation can perform in a fruitful manner in regards to their profit
margins.
Differentiation : under this kind of strategy within the Porter generic model, it can be
said that Kora Organics wood required to bring unique range of products true fulfilling all the
special needs and requirements of customers. With the help of this Kora Organics could easily
develop an effective image among its potential wires of range of products that company is
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offering. It selects one or more attributes that many buyers in an industry perceive as important,
and uniquely positions itself to meet those needs. It is rewarded for its uniqueness with a
premium price.
Focus : This type of strategy comma with in a market is being used when there is less
competition present within the industry. Under this, it can be said that Kora Organics can
improve itself and divide segments within the industry true focusing upon the strategy of serving
customers with potential products focusing upon the quality as well. Along with this, it has been
analysed that this may also consist with two variants and these are given underneath :
1. If it is talked about cost focus then a company like Kora Organics mainly looks into gain
cost advantage within the industry in which areas performing the operations through
targeting different range of segments based on the cost of different products and services
offered by the company.
2. On the other hand, if it is talked about differentiation then company basically look into to
target segment and may offer customers among different range of segments with various
groups that has been made of products.
In present context, it can be said that Kora Organics must required to have various target
segments. Could help business organisation and exploring or exploiting various range of special
needs that customers of this business organisation are having. Along with this, cost mainly
focuses upon behaviour of the individual in regards to deal with all major issues that might help
company in reaching to new limits.
MARKET ENTRY OPTION ANALYSIS
If it is talked about market entry options that can be adopted by Kora Organics, then it
could be anything from franchising, joint venture, partnership, licensing, and more. A few of
them are comprehended underneath :
Franchising : India is a nation with open market and government of this country
believes in in foreign direct investment, which means if a company like Kora Organics is
looking forward to expand its business then, there will be no issue will come in front of the
organisation if all the legal requirements are being followed by the company while running
business. This could be considered as one of the most influential element where the independent
but semi considering a few responsibility based owners, will be required to pay fees along with
the royalty it could be considered as franchiser.
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Joint venture : Another market entry option which could be utilised by Kora Organics,
and this is mainly be categorised with the help of sharing different returns, risks and ownership
as well. While taking access of a whole new market Kora Organics can use this type of market
entry mode as it is one of the best suitable approach which is highly beneficial for the company
and for the parental company as well. Since, Kora Organics is entering in India it will be highly
beneficial for the company to take in use of joint venture as well particularly help company to
share risk with each other It will also give access to both capabilities and skills of employees and
the the major investments would also be shared in the two companies.
In present context, for Kora Organics, franchising will be much more fruitful as it is less
cost investment approach, where an individual is going to sell products and services of Kora
Organics who is focusing upon expanding business at Indian business market.
MARKETING AND R&D CONSIDERATIONS
Since Kora Organics, is continuously utilising social media as its marketing strategy of
products and services, it will be highly beneficial for the company while expanding its
business within India. It is because, youth in India likes to use range of electronic gadgets
and mobile is one of them. Number of users of internet where people has account on different
websites like Instagram, YouTube, Facebook, Pinterest and many more. Posting an
advertisement on social media will directly grab the attention of users using social media
platforms to market its product. It has also been analysing that, social media platform has
over 100,000 followers, so any new product launch or announcement the company makes, is
communicated to a large audience. Therefore, it can easily be said that Kora Organics will
directly reach two desired goal where company can gain competitive advantages.
RECOMMENDATION REGARDING PRODUCTION
If it is talked about production unit of Kora Organics then at the time of expanding
business in India, it will be required for the company to consider good range of suppliers in
India. it will help business organisation to carry stock among different range of stores this
company. Considering this, it will directly help customers to purchase products as much as they
can and you too a good supply chain it will help Kora Organics in reaching to new heights. On
the other hand, it is also recommended to Kora Organics is that company would have to open a
warehouse as well because the distance between India and Australia is long enough and
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whenever it is required for the company to enhance the sales, it will not be able to deal with the
demand. Therefore, it is much required for the company to open up a warehouse within India
only near to the coastal area.
INTERNATIONAL HRM ISSUES AND CONSIDERATIONS
Since, the culture of both countries differ from each other it will be required for Kora
Organics to deliver the training to existing employees and to staff that the company is going to
recruit. On the other hand, it can also be said that the same policy which Kora Organics was
following in Australia it is may be possible that it will not work in the same way for the company
while operating business in India. It is because the mentality an Indian is totally different from
an Australian point it will be required for the company to make alterations among compensation,
flexible hours, leave related and many more policies. It will also be necessary for the Kora
Organics to you looking to all the issues which might an employee who belongs to India only
faces at the time of working with Australian staff in India. Setting meetings is also show an
important work for an HR manager of Kora Organics where it will be required for the individual
to deliver training and information as well that what company is going to perform in near future.
Along with this, policies which are going to be developed are also required proper analysis as
well because Indian law is also different from Australian and it will be required for the company
at the time of entering India to go through all the business loss which might impact upon their
performance level.
CONCLUSIONS
With the help of above mentioned report, it is being concluded that when a company
looking forward to expand its business it will be required for or organisation to first perform a
market analysis in order to find out rival’s strategies and current trends that the market area is
following. With the help of this, an organisation like Kora Organics could easily target potential
customers with an ease. Market entry options like joint venture, partnership and many more are
said to be e some crucial strategies that can be adopted by a company while expanding business
in a whole new country. On the other hand, International human resource related issues can also
be removed or reduced through recruiting employees that are already having experience of the
country in which the organisation is expanding its business.
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