Expanding Whisky Industry in Japan: Risk Assessment, Entry Decision, and SMART Objectives

This presentation discusses the expansion of the whisky industry in Japan, including risk assessment, entry decision, and SMART objectives. It covers the modes of entry, Porter's five forces, and BERI index for successful expansion. The report concludes that Japan is a great market for whisky expansion due to less legal requirements and a large whisky market.

WHISKY TO JAPAN

TABLE OF CONTENTS
 Introduction
 Risk assessment matrix
 BERI Index
 Porter’s five forces
 Entry decision
 Modes for entry
 SMART objectives
 Conclusion
 References

INTRODUCTION
Japan is considered as the second largest industrial production market
in the world. Every foreign country tries to expand their business to
enjoyed undisputed dominance in the share market. The Japanese
market has significantly changed over the last few years. Japan is the
best place to move into the new business market where whisky
company can be expanded.

RISK ASSESSMENT MATRIX
 Very low risk
 Acceptable risk
 Very high risk
 Disastrous

BERI INDEX
BERI index was developed by the Business Environment Risk
Intelligence and has its major components are operations risk
index (ORI), the political risk index (PRI) and the remittance
and repatriation factor which are used in combination for
consistent forecasting of country’s business climate.

PORTER’S FIVE FORCES
 Threat of entry
Intensity of Rivalry Among Existing Competitors
Pressure from Substitute
Bargaining Powers of Buyers
Bargaining Powers of Suppliers

ENTRY DECISION
Japan’s population is very nationalistic and has
tremendous respect for their local culture and ancient
traditions which is why foreign brands need to be
careful while expanding into the country.

MODES OF ENTRY
 Direct Exporting
 Licensing and Franchising
 Joint ventures
 Strategic Acquisition
 Foreign direct Investment

SMART OBJECTIVE
 Specific:
 Measurable
 Actionable
 Relevant
 Time Bound

ANALYSIS MADE
 It is very beneficial for the whisky company of the UK to establish new industry of whisky in
Japan because there is less legal requirement for licensing to trade the business in Japan.
 Japan is one of the biggest producer of whisky brand all over the world. So, the Japan helps them
to diversify their business and cover large market share to attract the customer.
 Japan is the best place for increase supply chain of the product due to availability of large
whisky market which helps the industry to succeed in the competitive market.

CONCLUSION
From this above report, it has been concluded that use of improve methodology for ascertaining the
country risk index and comparative use of BERI index helps to expand the business in Japan. The
porter five forces helps to analyze the market standards to improve the quality of product to
implement foreign economic activity. Also, the Porter’s five forces deals with the power of company
to analyze the customer preference, competitive rivals and influence the company’s productivity.
The whisky industry uses the Porter’s five forces to analyze the market and identify the policies that
required for successful expand of the business.

REFERENCES
Wellner, S. and Lakotta, J., 2020. Porter's Five Forces in the German railway industry. Journal of Rail
Transport Planning & Management, 14, p.100181.
Agwu, M.E., 2018. Analysis of the impact of strategic management on the business performance of
SMEs in Nigeria. Academy of Strategic Management Journal, 17(1), pp.1-20.
Kendall, G. and Rich, M., 2019. The Future‐Fit Business Benchmark: Flourishing Business in a Truly
Sustainable Future. Sustainable Development Goals: Harnessing Business to Achieve the SDGs Through
Finance, Technology, and Law Reform, pp.235-252.
Desai, C., 2019. Strategy and strategic management. In Management for Scientists. Emerald Publishing
Limited.

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