R.S. Corporation's Strategic Globalisation Plan for Australian Market

This report examines R.S. Corporation's strategic plan to establish and expand its consumer product business in Australia, focusing on exporting its products to various nations. The study presents a comparative analysis of global versus local business operations, highlighting the importance of market, legal, economic, and political research in the Australian context. It details the company's proposed structure, including hiring, management, sales, and production processes, while also addressing potential opportunities and threats such as cross-cultural differences and competition. The report concludes by justifying the reasons for the business's potential success in Australia and offering recommendations for navigating the complexities of the Australian market and ensuring sustainable growth.

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GLOBALISATION
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Globalisation
Name of the Student:
Name of the University:
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Author Note

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Abstract
R.S. Corporation is a consumer product company which is going to establish its business in
Australia and would export its products to various nations. This report aims at researching
and evaluating the business conditions in Australia and assess the suitability of the market in
which the company will establish itself. The report presents a comparative study of local
business and global business. The results of the research relating to market, legal, economic
and political environment has been presented. The report presents an outline of the structure
of the company and it mentions the procedure for hiring, management, sales and production.
The opportunities and threats that the company might face are presented. The report
summarises with a conclusion justifying the reasons for success of the business along with
some suggestions.
Keywords: Global business, FMCG sector, Australian business environment, cross-culture

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Table of Contents
Introduction................................................................................................................................3
Comparative Study of Global and Local Business Organisation...............................................3
Strategic plan..............................................................................................................................4
Initial Plan..............................................................................................................................4
Market, country, legal and economic research.......................................................................5
Development of the Structure....................................................................................................7
 Description of the Company........................................................................................7
 Product description......................................................................................................8
 Market research...........................................................................................................8
 Management and Organization....................................................................................8
 Building brand image and capturing market share......................................................8
Hiring of employees...................................................................................................................8
Production..................................................................................................................................9
Management...............................................................................................................................9
Sales...........................................................................................................................................9
Opportunities and Threats........................................................................................................10
Opportunities........................................................................................................................10
 Great exposure...........................................................................................................10
 Increase in efficiency and productivity.....................................................................10
 Growth prospects.......................................................................................................10

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 Brand Image..............................................................................................................10
Threats..................................................................................................................................10
 Cross-cultural differences..........................................................................................10
 Legal issues...............................................................................................................11
 Competition...............................................................................................................11
 Business environment................................................................................................11
Conclusion................................................................................................................................11
Recommendation......................................................................................................................11

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Introduction
Globalisation is the expansion of business and trade across the national boundaries by
collaborating with different nations, international organisations, clients and it involves
serving customers abroad (Peng, 2016). It relates to the integration of cultures, industries,
policymaking, markets and industries around the globe. Globalization is a result of increasing
innovation and advances in technology, communication and transportation and has facilitated
the smooth flow of goods, services and economy across the globe. R.S Corporations, being in
the Fast Moving Consumer Goods (FMCG) sector would export its consumer goods to
foreign countries. The company is establishing its business in a foreign country Australia by
setting up a new organisation in the country. Before expansion, it needs to evaluate the
marketing and business conditions that prevail in Australia. In this era of globalization and
modernization, R.S Corporation can succeed by conducting a proper research on the foreign
market and consumer behaviour, political and legal aspects and social and cultural
background of Australia. The report throws a light on the necessary aspects to be considered
by R.S Corporations to expand its trade to Australia and it is finally concluded by justifying
the reasons for its success in Australia.
Comparative Study of Global and Local Business Organisation
A global or international business is characterised by business operations beyond the
geographical location. A global business is one that operates in multi nations and in
collaboration with several organisations and clients from across the globe. The characteristic
of a local business includes performance within the national boundary. A local business
organisation is one that operates within the town, city or local geographic areas collaborating
or having tie ups with other local organisations or clients. The company R.S Corporation,
while expanding its trade to Australia will face the challenges of cultural and social

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differences which includes beliefs, values and perceptions people. The marketing policy and
strategies have to comply with the cultural background and ethnicity of the nation unlike in
case of local or national business where the focus would have been on the cultural
environment of the home country. Challenge in building brand image and capturing market
share is another characteristic of companies establishing their business in foreign lands.
Consumers tend to incline towards the already established brands in the country which makes
it difficult for enterprises entering the foreign market to build a brand image among the
consumers of that nation. Building brand equity and retaining customer loyalty is thus an
easy task for the organisations performing within the national boundaries.
Strategic plan
Every business where local or international, needs to develop a proper strategic plan
for future before proceeding with the business actions. The following section discusses the
strategic plans that could be adapted by R.S Corporations to successfully establish its
business in Australia and export its products to various nations.
Initial Plan
An organisation, which is going to perform globally, must first set its vision and
mission. This gives it an insight into the future as to what needs to be done and how it is to be
done. An international business plan communicates the ‘sales pitch’ to investors and clients,
which helps them to identify the profitability of the company. Initial plan of R.S Corporation
must include identification of products to be manufactured and exported, pricing strategy and
marketing strategy. The company assess and evaluate the scope of trade and export business
in Australia. The company needs to understand the business and marketing environment
prevailing in Australia. Government laws and regulations, nature of global customers and
other parameters need to be considered to enable successful flow of business across the
world.

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Market, country, legal and economic research
While designing marketing strategies, R.S Corporations has to focus on the points as
mentioned below:
 FMCG sector in Australia has a huge contribution towards the economy of the
country. Grocery sector and the food and beverages sector of the country contributes a
share of 30% and 17% respectively to the overall turnover from the retail ("Setting up
a business in Australia - Austrade", 2019). A research needs to be done on the
positioning of competitors of R.S Corporations in FMCG sector. The FMCG
companies in Australia are Coca-Cola Amatil, Treasury Wine Estates, Wesfarmers,
GrainCorp, Woolsworths, Blackmores, The A2 Milk Company, Metcash Limited,
Bellamy’s Australia and Asaleo Care. To establish a successful business of consumer
goods in Australian market and to compete with these companies, R.S. Corporation
needs to evaluate and understand their positioning strategies and Unique Selling
Propositions (USP). The strategies adapted by the company must enable it to capture a
large market share and take over the competitors.
 The marketing environment of the Australia needs to be critically studied and
analysed to properly export the products all over the world. There is a consequential
change in the marketing environment of Australia post the Marketing in Australia of
Infant Formulas (MAIF) agreement that was enacted in 1992 ("Australia - Market
Challenges | export.gov", 2019). The changes were as follows:
a. Shifts in attitudes and expectations of consumers: Over the last two
decades, there has been a shift in the power from marketers to the consumers.
With the increased access to information, expectations of high-quality
products, protection and increasing scepticism towards companies and

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marketers has led to an increased demand for safety regarding the products
and disclosure of information.
b. Change in structure of the market: Since the enactment of MAIF
agreement, Australia has seen a lot to structural change in its market. Several
producers have entered the Australian market that mainly serve the Middle
Eastern and Asian market and are non-signatories to the MAIF agreement. To
expand or establish a business in Australian market such structural changes
need to be studied since market structure of a nation puts a great impact on the
marketing strategies of a company.
Australia as a country has a huge opportunity in exporting business in its FMCG sector.
In 2018, the Commonwealth of Australia distributed goods of worth US$253.8 billion around
the world and it has increased 0.5% since the year 2014 and the gain from the year 2017 to
2018 is 10.5% (Navarro-García, Arenas-Gaitán, & Rondán-Cataluña, 2014). Based on the
reports presented by Central Intelligence Agency’s World Factbook, 21.5% of total economic
output or Gross Domestic Product (GDP) of Australia is from exported goods and services
(Dawson, 2014). Research done by the Australian Government has revealed that growth rates
of productivity, output and investment are high due to increased exports of goods (Zajda,
2015). R.S. Corporation would succeed in expanding its business to Australia and exporting
its consumer products by conducting a detailed research on the trend and upcoming
opportunities of export business in the country.
Coming to the legal aspect of export business of Australia, the country has a strong
business tie ups with the rest of the world which makes it easier to increase its globalisation.
It has become a major distributor of its goods and services in the Asia-Pacific region. The
government of Australia has several laws and regulations that help the nation in assisting and
developing its international business. There also exists regulations that are aimed to protect

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the domestic organisations and consumers from dangerous and harmful goods of the
importers. Australian industries and exporters are supported and aspired by a scheme named
the Export Market Development grants (EMDG) which is a program of financial assistance
developed by the Australian government (Lokuwaduge & Heenetigala, 2017). For companies
wanting to expand its business to Australia and enter into the export business, there lies a
huge success rate since the exporters of Australia get all the necessary support from the
government.
R.S. Corporation has to study the Australian economic environment which would give
it an insight into the scope of expanding its business. According to the Economic Complexity
Index (ECI), Australia holds the position of 20th largest economy in export business in the
world and the 59th country having an economy which is the most complex one (Tam &
Clarke, 2015). Export from Australia in 2017 was $243 billion and imports were $199 billion
which resulted to positive trade balance $44 billion (Salahuddin, & Alam, (2015).
Development of the Structure
Since international business encompasses dealing with consumers of various cultural
background and nations having varying political, legal, marketing and business environment,
outlining or structuring of the business prior to the expansion is the most effective way to set
up an organisation abroad. The outline of the structure may be designed as follows:
 Description of the Company: A company before establishing itself into a foreign
land needs to outline its vision and mission which would give it a direction to its trade
and business (Brettel et al., 2014). The company must comprehensibly communicate
its offerings to the potential consumers and identify its local as well as international
competitors.

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 Product description: Deciding on the products to be offered according to the needs
of the target segments is an integral part of the process of setting up a business abroad
(Hitt, Ireland & Hoskisson, 2016). R.S. Corporation needs to identify its consumer
base and design its products accordingly.
 Market research: International businesses need to focus on the market environment
of various nations of the world. R.S Corporation must go for outlining their position
in the market. Facts related to FMCG sector of Australia can be collected to analyse
the market trend, size of market and technology that is prevailing in the market.
 Management and Organization: A well-managed and organised enterprise boosts
employee morale, efficiency and employee benefits (Itegi, 2015). The internal
management structure of the company will directly have an effect on the motivation
and productivity of the employees. The effective management of the organisation is
serves as a factor of successful of the export business.
 Building brand image and capturing market share: Creating brand image and
brand loyalty is a difficult task at the initial stage for the organisations entering into
international business. R.S. Corporation on entering into the Australian FMCG sector
would face a tough challenge and competition from the already established brands of
the country as well as from other companies importing products to Australia. Thus, a
creating a brand image and capturing market share is the top most priority of the
company to survive in Australian market and export its products to other countries.
Hiring of employees
The hiring of employees in R.S. Corporation plays a significant role in the success of
the business in long run. Since it is an export business of consumer goods, employees from
across the globe and from multi-cultural background would fit in such organisation.
Candidates from various nations are most preferred in export or import businesses due to

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their understanding of cultural norms and business environment of their native country (Noe
et al., 2017). Effective hiring of employees should focus on the candidates having full
knowledge of international business. Communication skill is a major factor that the company
should consider while employing people since the business will perform globally.
Production
Since R.S. Corporation has to compete with the Australian FMCG companies and
other international companies, it has to adapt certain effective strategies related to production
of goods. Companies entering into foreign market can capture a huge part of the market by
product differentiation which needs a thorough research of the existing products offered by
the competitors (Adolph, Tisch & Metternich, 2014). The company can attract its target
segment by modifying the products thus surpassing the existing brands and creating a brand
image in the market.
Management
International business requires a great management of the functioning and
coordination of various organisations and clients. Despite having a plethora of opportunities,
global business also entails a huge amount of risks which demand for risk management
within the organisation (Nikolova, Kuporov, & Rodionov, 2015). In this case the sources for
risk need to be identified and necessary measures have to be adapted to lower them. Other
areas that needs management are sales, finance, operations, human resource and supply and
distribution
Sales
To gain popularity in the Australian market, the sales and marketing of the company
have to extensive. Before exporting to the rest of the world, R.S Corporation has to establish
itself well into the Australian FMCG sector by setting up stores in convenient locations in the

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country. Since selling needs proper distribution channels, studying the networks of
distribution in the nation would be an effective way of setting up supply chain in the market.
Challenges and Advantages and/or Opportunities and Threats
The opportunities and threats that R.S. Corporation is likely to face are described
below.
Opportunities and advantages
 Great exposure: Performing in the global market would provide R.S Corporations an
opportunity to get exposed to new ideas, practices of management, techniques of
marketing and dealing with international clients.
 Increase in efficiency and productivity: Going overseas brings in efficiency into an
organisation and the productivity also increases as a result of tough competition from
companies across the globe (Zedillo, 2014).
 Growth prospects: R.S. Corporation has a huge growth prospect by establishing its
business in Australia and entering into export business as it needs to employee highly
educated and skilled staff and adaptation of technology is also needed.
 Brand Image: Creating brand image across the world is another great opportunity for
the company. Brands that are present globally have high brand equity as compared to
brands of local businesses (Wolf, 2014).
Threats and challenges
 Cross-cultural differences: The biggest threat that a company might face while
establishing itself in the market of Australia is the differences between cultural
backgrounds as there exists a vast difference between the ethnicity of Australia and
the home country of the organisation (Cavusgil et al., 2014).
 Legal issues: While setting up an organisation in a foreign nation, issues related to
laws and regulations is another threat for the company (Dancygier & Walter, 2015).