Global Venture Analysis for Nutradry in India

This report provides a regional and country risk analysis of South East Asia and India for Nutradry, an Australian fruit and vegetable powder company, to help them make effective investment decisions in India. It includes an analysis of the market condition of the fruit and vegetable powder industry and the requirements of customers.

Running head: GLOBAL VENTURE ANALYSIS
Global venture analysis
Name of Company:
Name of College:
Authors Note:
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GLOBAL VENTURE ANALYSIS
Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Conclusion.......................................................................................................................................6
References........................................................................................................................................7
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Introduction
This report focuses on the regional analysis and country risk analysis of the South East Asian
region and India so that a comprehensive report regarding the analysis of regional and country
analysis of the region can be submitted to Nutradry, an Australian fruit and vegetable powder in
order to help them take effective decisions regarding investment in India, which is one of the
rapidly developing economies across the globe. This report also provides analysis of the market
condition of the fruit and vegetable powder industry and also about the requirements of the
customers in the fruit and vegetable powder industry
Discussion
Regional Analysis
Regional alliances and economic integration- India maintains strong regional alliances with other
South Asian nations to facilitate effective relations with them and to attract investments from
these countries. India along with various other south Asian countries is member of ASEAN
which facilitate international trade by reducing trade barriers. India has also several Free Trade
Agreement undergoing negotiation with countries such as Australia, Canada, Thailand and Israel
that would help in promoting free trade by removing trade barriers. As opined by Liu (2013) a
trade agreement named Regional Comprehensive Economic Partnership is being proposed
between the ten ASEAN countries and several other countries such as India, China and Australia
in order to develop trade relations between the countries.
Physical Environment and its effect on trade- The region between China, India and Pacific
Ocean is termed as South East Asia that can be divided into two distinctive features namely
mainland promotion with India and China and extending to South towards Indo-China peninsula.
The island or Insular region extends to the south and east countries which are surrounded by
water. The physical geography of the region favours the development of trade owing to the high
capacity of clearly skilled and capable workers. The physical environment of the various other
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countries of South East Asia promotes trade relation with other countries in order to develop the
economy.
Political Stability- The political stability in the Asian countries is comparatively high in order to
support attracting more business ventures in their countries.
Economic Stability- The economic stability of the majority of countries is comparatively low
considering the low purchasing power of the customers and due to over dependence of the travel
and tourism industry for economic development of the countries.
Finance options available-As stated by Rajkumar (2013) the finance options which are available
in India are capital markets, loan stock, retained earnings, bank borrowings, government sources
and subsidies, business expansion fund scheme, venture capital and franchising.
Social, health and environment conditions- The region of South East Asia is considered as a
diverse region considering the cultural diversity of the region and it experiences an increase in
the population of ageing population which influences work attitudes and behaviours. Due to a
large number of people residing in the South East Asian countries the pollution level is higher
than any other region of the world and it also experiences various health concerns due to inferior
qualities of food substances consumed and also due to lack of hygienic knowledge and activities
which promotes good health.
Terrorism Threat- The threat regarding terrorism is one of the reasons behind the lack of
investment opportunity in the South East Asia as due to the high population of the region and
due to presence of cultural diversity in the region it is an easy target for the various groups of
terrorists and extremists.
Country Risk Analysis
Political and Legal stability- As opined by Singh & Bhangoo (2014) India is amongst the biggest
democracies across the globe and is politically stable country that is controlled through federal
form of Government and political atmosphere of India is largely impacted by various aspects
such as Government policies, politician’s interest and philosophies of multiple political parties
and therefore the business atmosphere is implicated by multivariate political countries.
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In recent past a number of legal reforms have been brought in India, in form of recycling efforts,
rise of nominal wages and anti-discrimination of disability which affects business organizations.
Economic conditions- The Indian economy has been evidently strong after the commencement of
industrial reforms policy of 1991. As per this policy reform there is provision of reductions in
industrial licensing, more of liberalization of foreign capital and development of FIBP which has
led to consistent development of India’s economic conditions.
Finance Options available- The finance options which are available in India are capital markets,
loan, stock, retained earnings, bank borrowings, government sources and subsidies, business
expansion fund scheme, venture capital and franchising. There is also option for Foreign Direct
Investments in India, which allows foreign companies to directly Invest in India and the
percentage of varies sector wise.
Physical environment and Distribution channel- India has some of the world’s most bio-diverse
Eco zones in form of deserts, high mountains, highlands, tropical forests, temperate forests,
swamplands, plains, grasslands and various regions surrounded by rivers and other archipelago.
The distribution network within India is very effective considering the different types of
distribution channel. The country is well connected to all parts through roadways, railways,
airways and waterways which facilitate the effectiveness of the distribution channel. In India
multiple types of distribution channel can be observed depending on the sector they belong to.
Social, health and environmental conditions- As the population of India is high, therefore the
percentage of ageing population is increasing in India. 70% of the population of India belong to
the age group of 15-65 and hence there are structures with percentages as per age group and as a
result these structures have distinct flexibleness in education, work behaviour, income
dissipation and so on.
As opined by S Cheng (2013) the level of pollution in India is gradually increasing with each day
as a result of increasing levels of industrialization and urbanization which has resulted in
increase in health problem among the individuals. Due to the increased level of industrialization
and urbanization, there has been establishment of environmental pressure groups, noise controls
and imposition of various regulatory measures on waste management and disposal. Due to rise in
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pollution levels, the individuals of India are suffering from various health related problems and
obesity problem. The poverty level of the country also results in increase of various health
problems among the poorer section of the society.
Cultural and Ethical Considerations- As stated by Gupta & Bhaskar (2016) India is a culturally
diverse country, and there are various ethics and cultural considerations which needs to be taken
into account while setting up business ventures in India. Indians value their culture to the fullest
extent and they expect business organizations to do the same. There are various ethical
considerations which needs to be taken into account while doing business in India regarding
establishing relationships, in context to food habits and cultures, building reputation and
recognizing the difference between ‘old’ and ‘new’ India.
Organization or product of service analysis- As opined by Sharma & Lotwala (2017) the
products of Nutradry such as the fruit powders, vegetable powders and speciality powders are
expected to largely succeed in India as a result of the high organic value of the products and lack
of artificial flavours in the products of the company. As India is experiencing various health
problems due to consumption of artificially made adulterated foods in the form of fruit and
vegetables, the customers of India are in search of an alternative solution which would address
their problem and as the products of Nutradry are naturally sourced and organic in nature and
manufactured by using the best technology, therefore the products of Nutradry can succeed in a
prospective market like India.
Description of Organization
Nutradry is an Australian company which specializes in fruit powders, vegetable powders, meat
powders and other speciality powders which are fully organic in nature and are sourced from
locally grown farmers. Nutradry works with the food, health and pharmaceuticals industry
adding values to their products by providing whole food powders which are filled with original
flavour and nutrition.
Legal Structure of organization
Nutradry is a Pty Ltd. Company which is based in Australia. According to Australian Law a
proprietary limited company or Pty Ltd Company is a business structure which has at least one
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shareholder and up to 50, wherein obligation of the shareholders is limited to the value of shares.
Its counterpart includes public limited enterprises and the unlimited proprietary firms with a
share capital.
Market Analysis
According to Newswire (2015) the global fruit powder market size is estimated to reach USD$
23.96 billion due to a positive outlook towards the nutraceutical industry. The consumers are
constantly striving for the fulfilment of their nutritional intake through functional foods and
drinks. With the constant change of lifecycle patterns, the consumers of the industry are inclined
towards ease of convenience food meeting their specific nutritional requirements.
Description of product to meet the need
In order to meet the requirements of the customers Nutradry sources their ingredients from local
farms of Australia in order to ensure the high quality of the products. Based on the requirements
of the customers, Nutradry uses state of the art technology in order to manufacture their products
so that it addresses the needs of the customer. As opined by Prinja, Chauhan, Angell, Gupta &
Jan (2015) the products of the Nutradry are organic in nature which addresses the health concern
of the customers and therefore it helps in gaining acceptance among the customers. Based on the
requirements of the customers, Nutradry constantly innovates their products which satisfy
customer demands and requirements.
Conclusion
From the above analysis of the report it can be stated that India is an appropriate location for
Nutradry in order to expand their business. From the regional analysis and the country risk
analysis it can be seen that Nutradry should expand their business operations to India as the
offerings of the product of the company co-aligns with the requirement of the customers which
will help in increasing the demand of the products.
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References
Newswire (2014). Global fruit powders report 2014 - comprehensive analysis of trends in the
global fruit powders market including long-term forecasts. PR Newswire Retrieved from
https://search.proquest.com/docview/1635013313?accountid=30552 [Accessed on 14 Oct.
2018]
Gupta, S., & Bhaskar, A. U. (2016). Doing business in India: Cross-cultural issues in managing
human resources. Cross Cultural & Strategic Management, 23(1), 184-204. Retrieved
from doi: http://dx.doi.org/10.1108/CCSM-09-2014-0112 [Accessed on 14 Oct. 2018]
Liu, H. (2013). The effect of banking regime change from traditional banking operation to
universal banking operation on financial crisis. Business Premium Collection. Retrieved
from https://search.proquest.com/docview/1353649366?accountid=30552 [Accessed on 14
Oct. 2018]
Prinja, S., Chauhan, A. S., Angell, B., Gupta, I., & Jan, S. (2015). A systematic review of the
state of economic evaluation for health care in India. Applied Health Economics and
Health Policy, 13(6), 595-613.Retrieved from-doi: http://dx.doi.org/10.1007/s40258-015-
0201-6 [Accessed on 14 Oct. 2018]
Rajkumar, V. N. (2013). The time series and the causality analysis of foreign investment in
India. Journal of International Economics, 4(1), 26-41. Retrieved from
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2018]
S Cheng, J.,Y. (2013). China's regional strategy and challenges in East Asia. China
Perspectives, (2), 53-65. Retrieved from
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2018]
Sharma, S. U., & Lotwala, R. (2017). Learning from china: Mitigating the problems of make in
India through responsible business behavior. IUP Journal of Business Strategy, 14(4), 55-
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71. Retrieved from https://search.proquest.com/docview/1989487653?accountid=30552
[Accessed on 14 Oct. 2018]
Singh, L., & Bhangoo, K. S. (2014). The state, systems of innovation and economic growth:
Comparative perspectives from India and South Korea. Seoul Journal of Economics, 27(1),
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[Accessed on 14 Oct. 2018]
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