Bakers Delight: Market Entry Strategy and International Business Plan

This report provides an executive summary and detailed analysis of Bakers Delight's potential entry into the Indian market. It outlines the company's competitive strategy, focusing on low cost and differentiation, and recommends a transactional international strategy with Foreign Direct Investment (FDI) as the entry mode. The report emphasizes the use of a poly-centric approach for human resources and leverages India's stable political environment and cheap labor practices for production. It also covers marketing strategies, including advertising and promotion, and includes PEST and SWOT analyses, along with a CAGE framework assessment. Furthermore, the report analyzes 12 pillars of competitiveness to determine India's suitability for international business and offers recommendations for market entry, international HRM, and production/supply chain management.

INTERNATIONAL
BUSINESS

EXECUTIVE SUMMARY
Today, it has become important for the companies to expand themselves in the new
markets in order to reach new growth and development and ensure that set growth is taking
place. In the present report, it can be seen that the company Bakers Delight in order to expand
itself into the markets of India is going to use the low cost and differentiation as its competitive
strategy. The international strategy will be used by the organisation is Transactional Strategy and
the entry strategy which is going to be used is Foreign Direct Investment (or FDI). This would
allow the organisation to reach new required growth in the Indian Market. The human resource
of the organisation is going to make use of poly-centric approach in order to successfully make
the company expand into the markets of India. This would allow the company to reach new
growth and ensure set development is taking place. Along with it, it has been seen that the
company is going to make use of stable political environment of the country to reach new growth
and development and expand itself into the markets of Asia. The politics of country is safe and
good for new businesses to enter, this would develop the company's profitability and would help
it to reach in new markets successfully. Along with it, the company is going to expand the scale
on which it sells its products or services in a particular country. In order to do this., the company
is going to make use of cheap labour practices in the Indian market. It is because cheap labour
can help the company to produce its products and services on large scale and ensure that
appropriate development is taking place. It is because India is having the cheapest labour as
compared to any other country in the world. Bakers delight can make use of this opportunity and
can produce its products and services on large scale. This can help the company to reach new
growth and ensure that its practices of growth and growing itself into the Indian markets are
taking place effectively. The another important aspect which the organisation is going to cover
includes its practices of marketing. Marketing practices are the most required ones in order to
reach new growth and development. It is because the company needs strong marketing and
advertising in order to reach new market segments and attract required customers effectively.
The marketing practices which are going to be used by the company includes advertising,
promotion etc. In order to reach required advertising the company is going to hire appropriate
teams which are going to allow the company in reaching its advertising goals and objectives. It is
important for the company to reach its advertising goals while entering into the markets of India.
It is because advertising can allow the company to successfully gather required customers. It is

also important for the company to hold appropriate promotional strategies in order to ensure that
it is reaching new markets and making place within them successfully. This can help the
company to ensure that appropriate development is taking place and it is reaching the set
marketing practices. These efforts are going to allow the company to reach new growth and
ensure it is earning desired profitability.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................3
Brief Background........................................................................................................................3
Additional country analysis.........................................................................................................4
Recommendations for entry mode..............................................................................................6
Global marketing strategies and R & D....................................................................................10
Recommendation for production and supply chain management.............................................10
International HRM strategies and other considerations............................................................11
CONCLUSION..............................................................................................................................13
REFERENES.................................................................................................................................15
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INTRODUCTION
Businesses are operating at international level and highly connected with the multi-
layered business environment. International business strategy can be define to the different
business activities including two or more nation. In simple words it refers to the trade of
products, technology, services, capital over the national border at international or global level.
The second part of the study aims to do further research and analysis to recommend a
market entry strategy that enable Bakers Delight to achieve their desired goal and objective in
the new market of India (Lygnerud, 2018). The aim of the study is to provide recommendation
for Bakers Delight regrading international firm strategy, mode of entry in the international
market, marketing and human resource in international context.
The discussion include additional country analysis of India. The study will identify
market opportunities for the products and services of Bakers delight. Some recommendation will
provide to the industry to make selection between modification of product/services or adaption
required for the market success. Along with it, the report will identify the best market entry
strategy. Lastly it will analyse various international human resource management issues that will
face by the organisation and a conclusion will be drawn that focuses on key findings of the
report.
Brief Background
Company analysis
Bakers delight is one of the most successful bakeries and the management and marketing
team is effective in Australia (Abdel-Basset, Mohamed and Smarandache, 2018). They invested
in continuous innovation and R&D that help them in to plan effectively and implement it to
expand their business in the new market of India. The vision statement mentioned in the
assessment 1 stated that they are focusing on the creation of wealth for their stakeholders. The
vision will carried out by the company in the new market.
Country analysis
India is fastest developing countries and the country is successfully expanding their
innovation in technology (Bowie, 2017). The economy and political stability support any new
business expansion in the region that is beneficial for the Bakers Delight. Indian population is
also enhancing in the term of education and income level that is beneficial for the new business
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in terms of employment, consumers, etc. More expansion is beneficial for the country as it
enhance their economical growth.
PEST analysis
The macro analysis of the country stated that India offers lot of advantages to the
businesses. The political factor of India can be appear as critical factor for the company in terms
of expansion (Brians, 2016). Economy of India is supportive in nature and There are many types
of culture present in India with loads of festivals. This will support the business to target the
population with promoting their products on festivals. The legal factors of India will support the
new business of Bakers Delight. There are various strict laws that will consider by the company
to business effectively in India. The technological factor will enable the company to develop and
implement new technology in their services as the technological factor of India is supportive.
SWOT analysis
As they have very strong brand portfolio that will help them in expanding their business
in India under franchisee. The company will implement their strategies in the new market and
business expansion to successfully execute the project by implementing various revenues. On the
other hand they should improvise their marketing strategy as this their biggest weakness (Bull
and et.al., 2016). By investing in marketing activities they are able to promote their products in
India effectively. The present opportunities help them in successful expansion in India with
technologies and free trade agreements. They also have opportunity to maintain their affordable
prices in India as their shipping prices and cost of product is low. They have to analyse the
changing trend and develop strategy that help them in understanding the buying behaviour of
consumers.
Additional country analysis
Country analysis is essential to understand the capability and resource availability of the
nation.
12 pillars of competitiveness
The global competitive index is present by World Economic Forum and introduced 12
pillars of competitiveness (Hausman, McPherson and Satz, 2016). The pillars of competitiveness
is an effective measurement for Bakers Delight to evaluate the country. This will help in to
understand that India is suitable country for international business for Bakers Delight. The 12
pillars are; Institution, Infrastructure, Macro economic environment, Health and Primary
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education, Higher education and training, Goods Market efficiency, labour market efficiency,
financial market development, technological readiness, market size, business sophistication and
innovation. From the 12 pillars, India score 66 on the infrastructure, 75th on higher education
training, 107th on technological readiness (Lygnerud, 2018).
India has been ranked by World Economic Forum as the world's 40th most competitive
economy and achieve score of 4.59 in 2017-18. the country is comes a position down from 39 in
2016-17.
Even though the competitive index of India appears attractive, there are several negative
factors that are essential for the industry to consider before expanding their business in new
market such as; tax rates, weakening of currency, stock market crash is the concerning point.
Overall, India seems a competitive country and provide an effective platform for Bakers delight
to explore (The Global Competitiveness Report 2017–2018, 2019).
CAGE Framework
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Illustration 1: World Economic Forum
(Source: The Global Competitiveness Report 2017–2018, 2019)

CAGE framework is another tool that is effective in analysing the country. It compare
cultural, administrative, geographical and economical difference between two countries. Hence
the cultural dimension is discussed in the assessment 1, thus this section will analyse other three
distances between India and Australia.
India is administratively compatible to Australia mainly because of free trade agreement
(Lygnerud, 2018). The measurement of administrative closeness can be done through; country
policies, political stability, etc.
Geographically, India is extremely diverse country in compare to Australia. Australia is
the sixth largest country in the world and India is the 7th largest country in the world. Also
geographical distance is not limited to the physical distance between two countries. Thus, India
is suitable in terms of geography for Bakers Delight. It also has been analysed that the company
leads the market in the home country and will also maintain their position in the host country
(Marcoux, 2018).
Economically Australia is more compatible from India. But India is continuously
growing. Annual GDP of Australia has been calculated in 2018 at $1418,280 million in compare
India has been calculated at $2,716, 750 million that is 14 times more than India. Australia is 12th
largest economy and India is 7th largest economy that appears that the economy support the new
business in the country.
Recommendations for entry mode
It is important for the company to ensure that it is entering into the international markets
appropriately. The company needs to have proper strategies in place in order to enter
successfully into the market of India. It can help the company in reaching new growth and
ensuring that appropriate development is taking place. While expanding itself into the markets of
India, it is important for the company to identify its competitors and understand what kind of
strategies its competitors are making use of in order to successfully sell its products and services
in the market of India. The first and the the foremost requirement here is to identify at what
places Bakers delight is going to enter into the market of India by making use of right identified
strategies. As seen that the size of the company is huge as it is operating in 700 different
locations around the world (Abdel-Basset, Mohamed and Smarandache, 2018). This explains that
if the market of India is favourable the country can expand itself into the Indian subcontinent
successfully. The macro environmental factors identified of the Indian subcontinent explores that
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India is having a stable political condition. The company can reach new growth and development
by cooperating with the set government policies and developing its standards accordingly.
It is important for the organization to understand the importance of political advantage
and gain required political advantage in order to reach set growth and development. With the
help of appropriate government policies and growth the company can ensure that it is making its
place appropriately in the Indian marketplace (Bowie, 2017). The next identification is of the
economical factors, the economic situation of the country explores that its policies are safe after
the industrial reforms, 1991. Along with it, its tax rate in India is 30%. It sets a good
environment for the company to develop itself into the new markets and ensure that set growth
and development is taking place. It is important for the company to reach new growth and while
it is entering into the new markets (Brians, 2016). Bakers Delights is a bakery company, the
company can easily generate a good marketplace by selling the products which are unique and
are not available to the Indian Customers. It can also enhance and allow the company to reach
new growth by providing it with a better competitive edge. The main aim of the company is to
increase economies of scale. The company would be able to increase its economies of scale by
producing and selling its bakery products and services on large quantities, and it is going to
allow the firm in successfully reaching new growth and development while entering into the
marketplace of Indian sub-continent.
The another identified aim of the company is to achieve location economies. It has been
that the labour costs in India is typically lower than Australia. In order to reach appropriate
growth and development, the company can make use of the cheap labour costs and ensure that it
is developing its products and services on large scale and ensure that appropriate growth and
development is taking place (Bull and et.al., 2016). This would help the company to achieve
location economies and ensure that appropriate growth and development is taking place. Apart
from these, the company is looking forward to gain advantage in Indian market. In order to do
this, the company is going to attract the customers by various means. It is going to be done by
using various advertising and promotional strategies. These strategies can help it to reach new
growth and ensure that it is reaching set growth and development. These all aims would allow
the company to reach new development and ensure that it is reaching successfully in Indian
markets.
RECOMMENDED COMPETITIVE STRATEGY
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The competitive strategy which the organization is going to use includes the combination
of low cost strategy and differentiation strategy. These strategies are best suited for the market of
India. In the low cost strategy the company is going to offer a relatively low price in order to
stimulate demand and gain a market share. This strategy is going to allow the company to reach
new growth and ensure that appropriate growth and development is taking place. It is going to
help the company in selling its products and services in very low prices, it is because low prices
are going to allow the company to attract a large set of consumers and ensure that appropriate
growth and development is taking place while launching itself into the Indian sub-continent.
The differentiation strategy is going to allow the company to sell products and services
which are not sold by its competitors in the market (Hausman, McPherson and Satz, 2016). The
differentiation strategy is going to allow the company to launch products which are new and are
not sold by any of the same bakeries in the country. This would help the company to reach new
growth and development and ensure that it is selling its products and services appropriately in
the new marketplace.
RECCOMENDED INTERNATIONAL STRATEGY
The international business strategy which is going to be used by the company here is
transactional strategy. It is because transactional strategy is focused on customising the products
to the account for local preferences, whilst achieving low cost through learning effects, location
economies and economies of scale. The company requires to earn a good set of growth an
development while entering into the markets of India. Using this strategy the company is going
to plan and manufacture as well as sell the products in the Indian market. This will help the
organization to appropriately sell its products in the market and gain required consumers.
RECCOMENDED ENTRY STRATEGY
The company in order to enter into the Indian market is going to make use of foreign
direct investment (FDI) such as investing in a wholly owned subsidiary. It is going to allow the
organization to have a advantage to own 100% of its shares and have a tight control over the
functions of the organization (Lygnerud, 2018). This is going to allow the company to reach new
growth and ensure that it successfully building its growth into the Indian marketplace. This
would allow the organization to reach require growth and set development. The foreign direct
investment is one of the most effective methods seen, it is because the company will gain access
to new markets from the adoption of this strategy. Along with it, the company is going to gain
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access to resources which it requires in order to successfully produce its products and services in
the Indian market. This would allow the company to reach required growth in the markets of
India. The another important advantage which the organization is going to see is reduce cost of
its production. It is because the labour is cheap in India and it can enhance its product
development there. Also, this would allow the company to reach new product development and
growth.
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