Analyzing MIFCO's Business Expansion in India's Aquaculture Industry

This report examines the international marketing strategies of the Maldives Industrial Fisheries Company (MIFCO) as it seeks to expand its aquaculture business in India. It provides an executive summary, introduction, and detailed analysis of political risks, green concepts, international selling, and business negotiation strategies. The report highlights the challenges MIFCO faces, including political instability, corruption, and inadequate infrastructure, and offers potential solutions. It also explores the importance of green concepts, such as sustainable practices and biodegradable packaging, in the fisheries industry. Furthermore, it outlines the process of international selling and business negotiation, emphasizing the need for thorough market research and strategic planning. The report concludes by summarizing the key findings and recommendations for MIFCO's successful entry into the Indian market, providing a comprehensive overview of the opportunities and challenges within the Indian aquaculture sector.

Running head: International marketing management
International marketing management

International marketing management
Executive summary
The paper talks about the international business and it also explains the significance of the
business to business market. It explains the various key challenges of the company. The report is
based on the aquaculture industry that wants to explore and flourish its business activities and
operations in India. Thus, the various challenges are faced by the company. Another side, it
explains that how the company can overcome these key challenges. It describes the green
concept, international selling concept, and Hofstede’s model. It also explains the intracultural
business negotiation. MIFCO is a well-known company in the fisheries industry. It deals in
various fish products. Thus, it provides various aquaculture products and services to the
customers across the world. The firm is making various effective policies and strategies to
control and manage these key challenges. It describes the various green concept issues and
obstacles. It explains that how acquaculture business provides various employment opportunities
to the employees.
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International marketing management
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Political risk.................................................................................................................................................4
Green concept and issues............................................................................................................................6
International selling.....................................................................................................................................7
Business negotiation..................................................................................................................................13
.Conclusion................................................................................................................................................15
References.................................................................................................................................................16
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International marketing management
Introduction
The report presents a brief overview of the Maldives industrial fisheries company that
wants to operate its business activities in India. It explains the various kinds of risk which are
faced by the company during the business. It explains the green concept, international selling,
and negotiation. The Maldives industrial fisheries company (MIFCO) is a public company which
is dealing in fish products. It was founded on 1 November 1993 in Maldives. It is dealing various
products such as canned tuna, frozen tuna, katsuobushi, frozen yellowfin tuna, fish meal, and
loins etc. Today, the company is expanding its business across the world. Fish is the most
demanding products in Sri Lanka to exports in other countries. Now the company has decided to
expand its business in India. Therefore, the company has to look for the Indian market and
opportunities for aquaculture growth in Indian market.
India is the third biggest producer and manufacturer of fish across the world. Fisheries
are a very important business for the Indian economy because it provides various employment
opportunities to the people. It is the important source of the nutritional food and earning. The
fisheries industry contributes approx 1.21 percent of the total gross domestic product and approx
5.37 percent of the GDP from the agriculture industry. It provides various employment
opportunities to approx 14 million people. Indian market is very good for the aquaculture
business. Thus, if the Maldives industrial fisheries company (MIFCO) wants to expand its
market in India then it can take various opportunities in the market. If the company starts a
business in India then it can take gain its revenue and profit. India has the developed country to
expand the fisheries business in the market (Nagengast & Marsh, 2012).
Political risk
Risk: It is an uncertain situation and event. If it occurs then it affects the goals and objectives of
the company. If the MIFCO expand its business in India then it should focus on the various kinds
of risk that exist in the market as well as the environment.
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International marketing management
Political risk: Political risk is faced by the investors, governments, and corporations. It affects the
political decisions, conditions, and events that extensively affect the profit and revenue of the
business. The company should manage and control the political risk factors (Tucker, 2012).
Aquaculture is the sector of huge and immense diversity. Thus, the political risk affects the
business of the aquaculture. Lack of water control structure, the company will face many
challenges. The company cannot gain the good opportunities due to the inappropriate resources
and energy crisis. There are various other reasons that affect the business of fisheries in India.
They have been discussing below (Lédée, Sutton, Tobin and De Freitas, 2012).
There is instability in the Indian government. Secondary, corruption and fraud exist in the
Indian government. The financial and economic policies of the government are not good in India
for doing aquaculture business. Inadequate water supply and environmental sustainability risk
are also a big concern for the company to expand its business in such country. In addition,
inefficient and inappropriate administrative system is also a big obstacle to aquaculture growth
and development (Saleem and Larimo, 2017). There is lack of trust between Sri Lanka
government and the Indian government. Political interference influences the business activities
and operations of aquaculture development. The company will face various weak and poor law
enforcement issues, labor-related issues. The country does not provide the good wage payment to
the employees therefore, various difficulties are faced by the firm. Another side, there is a
shortage of qualified and talented manpower in India to expand the business of aquaculture
(Ponte, 2012).
The company will have to fulfill the entire legal requirement to start up the business in
such country. It will have to register the product and company and it needs to complete the
various customs requirements. Further, Odessa, Gujarat, and Tamil Nadu presently engage in
legal and policy revision process, therefore, this process will affect the business of fisheries
industry. The west Bengal policies are not good in regards to aquaculture business. Poor
infrastructure is one of the biggest risks to flourish the business of aquaculture in India. The
coastal states procedure and the process are not relevant in such country. The retail suppliers do
not invest huge amount for the various operations and business activities thus, the company faces
various problems. High employee turnover also exists in the Indian market that will affect the
business of the association. There are no proper facilities for processing, transport, and freezing,
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International marketing management
therefore it will affect the business of the organization. The country does not maintain the proper
quality standards, regulations, and hygiene standards. Tropical and steamy weather conditions
are also considered the political risk and it will influence the trade of the fisheries industry.
Religious sentiments will also influence the company practices in such country. The customers
purchasing power of the country are very low and poor thus, it affects the business of fisherman.
Further, politicians do not take interest in general public so they do not prefer the fisheries
business in the market. Rapid and hasty changes in the politically nominated authorities in the
government will affect the stability and sustainability of the company. In India. There is a
shortage of clean and hygiene water thus it influences the trade activities and operations of the
fisheries industry. The Regional and district disparities among the various states such as
Jharkhand, Bihar, and Orissa also which also influence the company business activities and
operations (Wheelen and Hunger, 2011). On the other hand, globalization, culture, nature, tastes,
preferences of the Indians are also considered the political risk that affects the entire business of
aquaculture. In India, many people do not like to eat non vegetarian food so it will affect the
fisherman trade negatively. Many people prefer only vegetarian food (Yang and Gabrielsson,
2017). Sometimes, the government gives extra money to the food authorities therefore, the firm
is not able to import the good quality of fish in the market. It will affect the health of the people
and will become the excellent reason of various health diseases. The operational risk will occur
due to the inadequate and insufficient processes, procedures, policies and systems thus, it will
disrupt the business process and procedure in the market. The company will also face the
various market risks due to the various competitors are existed in the market. The company also
deals with financial risk due to unavailability of huge investment. Sometimes, food companies
are failed to invest the huge amount in such business across the world. Due to the inadequate
financial risk and operations costs, the company also faces various challenges in the market. If
the company wants to start its operations and business activities in India then various transfer
risk, production risk, and marketing risk will be faced by the company. It will influence the
aquaculture business adversely (Mohamed et al, 2012).
Green concept and issues
It is related to the positive environmental changes that are existed in the company. The
concept focuses on finding the solutions to society’s problems. The Company checks the
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International marketing management
environment of the employees and management and take actions on the problems which are
faced by the organization. The company must be well aware of the environmental needs. The
strategies planned for trading should be in favor of the company. It is a B2B concept, one has to
meet the requirements of other business. This concept majorly focuses on the green issues of the
business. Before trading in the company, Maldives will have to look after the type of material
quality that is used by India to make the product (Rutaisire, Nandi & Sundaray, 2017). It is
necessary for them to use the good quality of material in making any fisheries product. The
materials are also an another problem in the aquaculture industry. There should be more use of
renewable resources so that the product can be utilized for the further purpose. Renewable
resources are the resources that can be renewed and can be used again. The products utilization
must be of the by-products. By-products are the already used by the company to flourish its
business activities. The company should make the products in such a way that it should be used
for a long time. There should be a long life of the products so that it can have optimum
utilization. The product's design should make it worth purchasing to the customer. As being a
fish product it should be fresh, well packed and hygienic. The packaging should be bio-
degradable. The company should focus on the hygiene and biodegradable issues. Fish is an
eating product thus, it should be packed properly with biodegradability. Maldives has to focus on
such things before making its trade business in India. These green issues must be kept in mind
because these are the techniques through the company can easily make a growth in Indian
market. These are the strategic plans that will be helpful for Sri Lanka. These green issues are
related to the societal needs. It is necessary for the company to meet the demands of society for
earning future profits (Murphy, 2010).
International selling
Sales: Giving goods and services and taking money in return is called selling. In general, a
product is sold to a customer and the customer pays the amount relating to that product. The
product is given in exchange for money. It focuses on two individuals, the buyer, and the seller.
The buyer is the one who gets the product and the seller is the one who exchanges the product
with a buyer for money (Sovacool, 2012).
International selling: International selling is done with outside countries. This means one
company joins hands with the other companies. The purpose of buying and selling the
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International marketing management
commodities to expand the business globally. This also helps is making good contacts with the
company’s prevailing all over the world. International selling is a B2B concept. Companies tie
up with other companies to generate profits from a larger level. It is done outside the boundaries
of the home country. Maldives industry has to put a lot of efforts and has to face many
challenges while flourishing its trade business in India. It is not very easy to trade in a India
(Wheelen & Hunger, 2011).
Search for the company for a new business
Before indulging in the trade business with other countries, it is necessary to check
through which countries can fulfill the demand of the company. Maldives will have to be very
specific in searching a profitable Indian company for its fisheries business. In India, there is a
whole hub of small and big markets selling fishes. So it is not comparatively easy to find a
relevant company Maldives can tie up with. Such businesses are also run by larger companies
who ask them to do so. Hence, it will become difficult to search for the best company.
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Search for the company for a new
business
Arrange telephone contacts/video
conference
Fix up meetings
Identify company requirements
Plan strategies
Present the idea in front of the
company front doing the business

International marketing management
Arrange telephonic contacts
Once the company is selected the next approach should be to contact the company
telephonically. Reaching directly to the company is not a good option. It can be the waste of
resources if the company does not turn out to be relevant (Thomas and Peterson, 2017). Through
telephonic conversation, one make out what strategy will be needed to convince the company to
trade in India. Same way, the company can also converse by video conferencing. In today’s
world, networking has become very easy for everyone. But sometimes contacting outside the
boundaries of the home country it becomes difficult to make a direct contact. It is mandatory to
have a proper network system. The company not only has to look for the basic amenities but also
have to flourish with the fast-growing technological environment. Since Maldives fisheries is a
big company, it is easy for them to make such conversations (Temple et al, 2017).
Fixing up meetings
The company should tie up with the other companies. When the company is finally
decided then it is necessary to meet them and know about them. Fixing up meetings is a great
way of dealing with the firm. It helps in knowing the company in a better way. It is a
professional way of expanding the business in India. Fixing the meeting with India it will not be
a tough task for Maldives. Maldives will have to look after the policies and strategies of the
country (Pan, Minling, 2014).
Identifying company’s requirements
The company should know its needs for easy business. It must fulfill the requirements of
the other country. If the company’s needs and requirements are satisfied it becomes easier to the
work. Maldives has become the large-scale company of fisheries. Sri Lanka will have to fulfill
their financial demands, their work must give good results in the market. Maldives will have to
follow the demands. In a business, it is necessary to satisfy company needs and requirements
(Tófoli et al., 2016).
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International marketing management
Strategic planning-
A proper way of planning which can generate profits and good results is known as
“strategic planning”. Strategic planning is an important feature of the business. Maldives should
plan according to the requirements. The strategy should impress the Indian company. The
planning has to be impactful and it should be easy in expanding. A good strategy becomes the
the result of good outcomes and profits. Maldives has to put efforts in making a strategy. It
should fulfill the needs of the market. The profits should be earned in a large amount
(Papadopoulos and Heslop, 2014).
Presentation-
A good presentation reflects the company’s reputation and type of functioning. A good
plan is only expected from one who is experienced. Hence, the presentation has to be
professional and accurate. The idea must impress the minds of the company’s authority.
Maldives should make the effective strategies to explore the business in India. India is a country
where people need good quality of the products at lesser price (Nunes & Ghermandi, 2013).
Hofstede’s concept
Greet Hofstede introduced a psychological concept which took into consideration the
cross-cultural communication, i.e. how the culture affects the values and the behavior of the
natives. Therefore, it was an invention to bring across the interweaving between various cultures
through communication and exchange of values. The approach has been divided into three parts
that have been discussed below.
1. Inequality of power
According to this dimension proposed by Hofstede, the power is unequally divided among the
working class. This results into the authority of the ruling class over the working class.
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International marketing management
2. Lack of unity
Another key term proposed by him is Individualism. The company should follow and maintain
the unity and teamwork in the organization.
3. Overshadow of men over women
It is the essential dimension that influences the business performance and efficiency of the
workers Though women are competitive and have achieved the targets and soared heights,
Although it is considered as a taboo. In a male-dominated society, women are still confined to
the social spheres of life which surround them with household chores, caring nature, and
submissiveness. On the other hand, men are the center of attraction and the heroes of all the
times (Czinkota & Ronkainen, 2013).
The major drawback of this concept is the inconsistency which is criticized by famous
critics. This concept has been used to determine cultural values by the analysts (Tucker Jr,
2012).
4. Uncertainty and Avoidance
It is a dimension which depicts the uncertainty and ambiguity of people in a society which is
unfulfilled by the company.
5. Short-term versus long-term
This dimension is dictated by the truth. When it exercises higher degree it leads to the
adoption of values. When on a lower index it leads to variation in thoughts and actions
(Nagengast & Marsh, 2012).
Self-Reference Criterion
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International marketing management
The SRC (Self Reference Criterion) gives the information about the cultural values, the
experiences, and knowledge on the basis of decisions being made. It relates to something where
people have their own opinion in their own company, the culture followed by them or the
strategies planned for doing the things. The company accepts the demand of the market which
makes it easier to work with international marketing. This results in a successful international
marketing. It is important for international marketing as it deals with the foreign and domestic
market. This makes company cope up with the company within and outside the market. This
minimizes the effects and maximises the profits.
I n today’s world, due to the expanding of the market and the number of products,
international marketing has to suffer from the issues prevailing with the cross-cultural
techniques. Many marketing researchers explain that the criteria of self-reference have now
become an important feature to understand the cultural views of the market (Herna Octavia
Damayanti, Indah Susilowati & Herry Boesono, 2017).
Self-reference criterion is an application of a cultural viewpoint. The Self-reference
criterion goes parallel to ethnocentrism. The essential aspect of trading in the other country is to
identify and address the differences that before placing it on the levels of foreign marketing. This
leads to a successful business planning (Shyam, Shridhar and Fernandez, 2017). The strategies
made at such level will result in good outcomes. The differences are cleared and company meets
the requirements of the market. Many firms believe that after selling a particular product with
great success, the company will now flourish in the market. This becomes the major drawback
for the company. Such things will affect the growth of the business. Success in a foreign market
is not that easy. The company should put hard labor at every stage. In this way, looking at the
aspect of SRC it is not easy to expand the trade. Self-reference criterion, therefore, becomes a
hurdle in trading with international market (Guttormsen et al, 2011).
It gives the information about the cultural values, the experiences, and knowledge on the
basis of decisions being made. It relates to something where people have their own opinion in
their own company, the culture followed by them or the strategies planned for doing things. For
example, it is possible that the company can make decisions according to their own
requirements. This will affect the expansion and development of the business. It also goes
parallel with what is being done in the foreign market will be done in the foreign market. It will
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