Why Tim Tam Should Expand Its Operations to the Indian Market

The study reveals that India has a better education system than Afghanistan, which is formalized and focuses on overall student development. This supports the recommendation to Tim Tam to expand its operations in the Indian market rather than Afghanistan, as the high price of their product would be more affordable in India compared to Afghanistan where people cannot afford it.

ISSUE IN INTERNATIONAL BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
PRODUCT TO SELL......................................................................................................................1
BRIEF BACKGROUND OF SELECTED COUNTRY.................................................................1
SUMMARY OF INDIA..................................................................................................................1
SUMMARY OF AFGHANISTAN.................................................................................................2
LITERATURE REVIEW................................................................................................................2
RECOMMENDATION TO BOD...................................................................................................2
JUSTIFYING RECOMMENDATION...........................................................................................3
REFERENCE..................................................................................................................................4

INTRODUCTION
The company that is selected for this report is Tim Tam. It is an Australia based biscuit
company. This sells a variety of chocolates (Xu and Hitt, 2018). The company had started its
operation in the year 1865. On the other hand, in the Asia Pacific Region the firm had won the
title of the largest food company. There are around 50000 employee’s works in Australia. It has
its operation present in more than 40 countries. The two countries that are chosen for firm
expansion are India and Afghanistan.
PRODUCT TO SELL
In both the market, the company would sell its Arnott’s fancy favorite range that includes
three flavors such as Iced VOVO, Rasberry shortcake, and Venetian. The price range is between
3 to 4 dollars. In the Australian market, people like the flavors of biscuit a lot. Further, these
biscuits are made from different fruits flavors and they are high in nutritional value also.
BRIEF BACKGROUND OF SELECTED COUNTRY
India and Afghanistan are the two countries where the firm could expand. India comes
under the list of the seventh largest country. It has a population of around 1.3 million.
On the other hand, Afghanistan is an Islamic country and it has a population around
31,575,018.
SUMMARY OF INDIA
On the basis of the analysis, it is identified that the GDP of India is 10.401 Trillion
Dollars. The current inflation rate is 2.57%. The average interest rate in India is 6.65%.
However, there is less than 5% workforce in India who had undergone formal skill development
training (Jiang and Holburn, 2018). But, this does not reveal that India is backed with skilled
labor. The government runs different programs with an aim to make its citizens employable. I
USD is equal to 69.44 INR. 7.20% of people in India are unemployed. Further, the average
income of people in India is around 616 dollar. Thus, these are the major characteristics of the
respective country in an effectual manner. India possesses competitive advantage in its well
developed transportation facility as well as supportive law to the international business.
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SUMMARY OF AFGHANISTAN
It has also been identified from the conducted analysis that the GDP of Afghanistan is
around 72.911 billion dollar. On the other hand, the average inflation rate in Afghanistan is
around 3.84 %. This is very high from India. Thus, the given thing will depict that the value of
Afghanistan currency is lower than Indian currency. In addition to this, it is also identified that
Afghanistan is suffering from the problem of a shortage of skilled labor force (Verbeke and
Ciravegna, 2018). Only 31% of the population who are more than 15 years of age can read and
write. This thing will give clear depiction that the education system of the nation is not well.
15% is the interest rate of the country. 8.9% of the people in the nation are unemployed. Average
income is 410 dollar. Further, 1 dollar is equal to 76.10 afgani. Afghanistan possess competitive
advantage in its legislation which gives support to the international firm for performing business
in their territory.
LITERATURE REVIEW
On the basis of the analysis, it is identified that India is a better country than Afghanistan
for international expansion purpose (Singh and et.al., 2018). Singh (2018) have depicted that
India is a growing economy and thud global firms will have many options with regard to entering
in the respective market with so many options. Further, the Panhans and Kaufmann (2018) have
also revealed that the government of India works a lot with an aim to make its citizens skillful. In
this regard, Deng and Sinkovics (2018) have found out in the study that the government of
Afghanistan does not put much effort into the process of raising the employability skill of its
respective citizens. It is because of the given reason only the nation is going through with
different types of problems. Utama and et.al., (2018) revealed that India has a better education
than Afghanistan. This view is supported by Behl (2018). In this context, in India education
system is very much formalized and thus major focus is put on the overall development of the
students (Hearson, 2018). But, this thing is not there in the case of Afghanistan in an effectual
manner. Reuber and et.al.., (2018) have determined that Indian government gives support to the
international firms through infrastructure and other facilities. This thing is not very much
effective in Afghanistan (Thussu, 2018).
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RECOMMENDATION TO BOD
From the above-conducted analysis, it is suggested to the manager of Tim Tam that it
should start its operation in the Indian market.
JUSTIFYING RECOMMENDATION
The firm should begin its operation in the Indian market because the findings of the study
give a clear answer about the same. In this regard, it can be said that the price offered by Tim
Tam is very high. Thus, in India people have the capacity to afford the product of this price. But,
if the firm will take the decision to expand its operation in Afghanistan then in this condition it
will become very difficult for the firm with respect to earn profit and sales. This is because
people of the respective country cannot afford the product.
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