International Business Plan - PDF

International Business
Plan

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Covered in PPT.......................................................................................................................1
TASK 2............................................................................................................................................1
Macro and Micro analysis of SBU and Dove soap................................................................1
PESTLE analysis....................................................................................................................3
Porter's five forces analysis....................................................................................................4
McKinsey 7s model................................................................................................................6
Ansoff Matrix model..............................................................................................................7
Smart objective.......................................................................................................................9
Style of entry into country......................................................................................................9
CONCLUSION..............................................................................................................................10

INTRODUCTION
A business plan is a written statement demonstrating the feasibility of new business
plans. It is a roadmap which provides directions according to which all the activities should be
carried. Companies prepare international business plan before entering the international markets
in which goals and objectives are defined along with raising and allocation of resources for
getting desired outcomes (Abdelal, Blyth and Parsons, eds., 2015). It is bifurcated into different
sections for the ease of following the plan. This report has been drawn upon Unilever which is a
British_Dutch company having its headquarters at London, United Kingdom and Rotterdam,
Netherlands. Furthermore, it covers background of the company and its proposal by describing
the product chosen in this report. Along with this, macro and micro analysis, Porters and
PESTLE analysis and other models, theories etc. are included to show the detail information of
the international business plan.
TASK 1
Covered in PPT
TASK 2
International strategic business unit (SBU), specific product and company market information
Strategic business unit (SBU) refers to an unit in large corporation which may have a
different business and other plans for carrying its individual business activities. Generally, a
brand focused on its profit making SBU for adding more profit which can benefit the overall
organization. In this report, Beauty and Personal care of Unilever has been chosen as SBU which
is considered a profit making unit of the entity. In this, the product “Dove soap” is selected on
considering which all the analysis will be done (Monaco, 2014). This product of Unilever has
gained popularity because of the quality and social initiatives it took in the past. It started the
business in domestic market in UK and Netherlands but after few years, it researched about
opportunities in international market. The outcomes were positive because of which it expanded
the business in different countries by setting manufacturing units and making the products
available in 150 countries.
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Annual report
The financial condition of Unilever is strong because of which it has made the proposal
to invest in Bhutan's market in order to launch Dove soap there. The market of Bhutan is
growing rapidly at the rate of 7.5% which is a good number. Furthermore, there are only few
competitors such as Artemisia which is the top competitor. Unilever has a good position in
global market therefore, it can launch Dove soap there. The main benefit that Dove will get are
increased customers with expanded market area. In this way, Dove can be made a global product.
Fig 1. GDP of Bhutan, 2019 (In USD)
Fig 2. Population of Bhutan
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Macro and Micro analysis of SBU and Dove soap
In order to understand the viability of the SBU and the product Dove soap, micro and
macro analysis which are as follows:
Macro factors-
The suppliers: There are many suppliers in this industry all over the world except some
countries reason being it is high revenue generating industry. Therefore, the decision of Unilever
to expand beauty and personal care can become successful. In terms of Dove soap, it has huge
suppliers providing the same raw material which is required by Unilever which makes the price
affordable (Hill and et. al., 2012).
The resellers: Beauty and personal care involves lots of intermediaries who are engaged
in making the product available from manufacturing unit to final customer. With regard to Dove
soap, it is a popular product in many countries because of timely delivery and availability of
Dove soap in retail and other outlets.
The customers: Almost all the customers in the world uses the products belonging to
beauty and personal care to maintain healthy skin and personal hygiene. Hence, a good industry
to invest into. Dove soap has gone through number of changes in its composition for making it
suitable for large number of customers.
Micro factors-
Demographic factors: Beauty and personal care industry is greatly affected by differ
choices and preferences of people from different dimensions. This increases the risks in this
sector. In relation to Dove soap, it is a successful product which is used by every sort of
customers with different perceptions and views.
Economic factors: The products of beauty and personal care are always in high demand
which has pushed the entities to manufacture variety of goods in this sector. With the increase in
demand, Unilever has launched different types soaps for kids and men. This is to satisfy the
customers (Micro factors of beauty and personal care, 2019).
Political factors: This is a sector which has high number of legislations and government
policy because of companies using ingredients which may affect the sentiments of the people
using the products. Therefore, Unilever has to follow political requirements. In terms of Dove
Soap, Unilever never faced any issues with political issues which means that, it can be safely
launched in international markets.
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PESTLE analysis
The target market of this product is those areas, where people rely on soaps. Mainly,
women are its main customers to which it sells Dove soap. In recent years, it has started
manufacturing Dove soaps for men and kids because of high demand of this product in the
domestic as well as international markets. In order to show the competency of this brand and
product to set up business in Bhutan (KYUNGHOON, 2012).
PESTEL analysis is a tool used by organizations for assessing the business environment
in which they are operating or planning to operate in future. Hence, it has been conducted in
respects of Dove soap which is as follows:
Political factors: These are the elements such as policy made by the government which
may impact the business in a significant manner. Dove soap falls in the category of beauty and
personal care which emphasizes on abiding by different legislations with regard to components
using in it. Before launching the business in Bhutan, Unilever should have the knowledge about
statues and rules which are applicable on making such products so that it can carry its business
carefully. Furthermore, it should be aware about government policies regarding MNC setting up
business in Bhutan.
Economical factors: These are the factors which are responsible for affecting the
performance of the economy. These include interest rates, foreign exchange rates, economic
growth patterns etc. In the context of launching Dove soap, it should consider inflation rate while
fixing the price. Also, purchasing power of Bhutan's customers and suppliers should be taken
care of. Furthermore, it the foreign exchange rate is an important element which may affect the
business hence, enhanced attention should be provided it Unilever is transporting any substance
outside Bhutan (Hawn and Ioannou, 2016).
Social factors: These are related to social environment of the market which cover
cultural trends, demographic, population etc. Unilever should target the teenagers and young
girls who are attracted to beauty products. Furthermore, it should be careful about choosing
regions in the market which it wish to focus. In addition to this, Dove soap should be supplied to
those areas which have high demands but unavailability of beauty and personal care products.
Also, it should track the seasons in which sales can be increased.
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