International Business Plan for Coffex's India Expansion

This report presents an international business plan for Coffex, an Australian coffee company, aiming to expand into the Indian market. It begins with an executive summary and a table of contents, followed by an introduction outlining the report's objectives. The report provides a background of Coffex and its experience, along with an overview of the Indian market. A SWOT analysis is conducted to identify strengths, weaknesses, opportunities, and threats, followed by additional analysis reflecting future country analysis. Competitive strategies such as cost leadership and differentiation are analyzed, and market entry options, including franchising and joint ventures, are explored. Marketing and R&D considerations are addressed, and recommendations are made regarding production, international HRM issues, and conclusions. The report emphasizes the importance of understanding market conditions, selecting appropriate entry strategies, and implementing competitive strategies to ensure Coffex's successful international business expansion into India.

Running head: INTERNATIONAL BUSINESS
International business
Name of student
Name of University
Author note

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Executive summary
The topic was focused on the management of international business considering the
coffee business named Coffex from Australia, which aimed at offering products and services
in India and establish its presence there. Due to cross border business, there were several
issues and barriers that might hinder the successful management of global business and in
such cases there is need to analyse the global market conditions and at the same time,
determine suitable market entry options such as franchising and joint venture to establish
business in the foreign market much comprehensively. The cost leadership and differentiation
should also assist Coffex to differentiate its products through innovation facilitated by
research and development activities, furthermore, influence the buying behaviours of
consumers effectively too.

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Table of Contents
Introduction to the report...........................................................................................................4
Background of the company and selected international country...............................................4
Conclusion of SWOT analysis...................................................................................................4
Additional analysis reflecting future country analysis...............................................................5
Competitive strategy analysis....................................................................................................6
Market entry options analysis....................................................................................................7
Marketing and R&D considerations...........................................................................................8
Recommendations regarding production...................................................................................8
International HRM issues and considerations............................................................................9
Conclusions................................................................................................................................9

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Assessment 3 International business plan
Introduction to the report
The report is prepared to design the international business plan for the purpose of
ensuring successful business management considering the business organisation named
Coffex in Australia. The report highlights the importance of identification and analysis of
market scopes and opportunities along with the focus on various market entry strategies and
research and development considerations to make sure that Coffex manages international
business with ease and efficiency (Shenkar, Luo & Chi, 2014). Considering the fact that the
importing country is India, it is important for Coffex to analyse the market entry options
along with the competitive strategies required to facilitate the production and ensure delivery
of good quality coffee products and services to India for steady revenue generation and to
achieve the objective of attaining competitive advantage in business too (Coffex.com.au,
2019).
Background of the company and selected international country
Coffex is one of the major coffee wholesalers in Australia that has over 50 years of
experience and delivers good quality coffee products and services for meeting the needs and
preferences of people all over. It has been one of the best coffee roasters present at Australia
that has strived at optimizing the unique and excellent flavour and aroma of the coffee that
has been offered. The company is not only considered as a wholesale coffee supplier, rather it
has been considered as an unique coffee roasters, which focuses on delivering a great coffee
experience to the customers who have purchased the products and services of Coffex,
Australia (Coffex.com.au, 2019). The coffee roaster company has brought the premium
standard in coffee roasting as well as facilitated the management of extensive and unique

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coffee services for increasing the level of satisfaction among the clients much more
comprehensively (Coffex.com.au, 2019).
The coffee roasting company was introduced in the year 1959 and since then, the
company has reached heights of success by delivering an exceptional beverage consuming
experience for the customers by meeting the demands of customers for better quality coffee
in Australia. Later, the company has expanded into the markets of Indonesia, China,
Malaysia, New Zealand, Singapore, etc. for managing global business and at the same time,
managed perfect blends through sharing of passion for coffee roasting. The company has also
fulfilled the corporate social responsibilities by supporting the Organic and Fairtrade farmers,
which ensured differentiation of flavour profiles for the coffee products offered to the
customers (Goyal et al., 2013). The company is not only known for its good quality coffee,
but also has been recognised for its great quality production capabilities, equipment and
machineries used, which served the roasting needs and also ensured achieve positive
outcomes effectively.
The selected country where the products and services of Coffex, Australia must be
exported would be India. Thus, the exporting country here is Australia and the importing
country, i.e., where the products and services should be offered to facilitate international
business expansion has been India (Singh & Gaur, 2013).
Conclusion of SWOT analysis
Based on the SWOT analysis, it can be concluded that there are multiple strengths,
weaknesses as well as the opportunities and threats experienced by the organisation, which
can influence management of global business for Coffex while operating in the global market
of India. The strengths of the organisation include strong brand equity and a positive brand
image, which could allow the company to make an entry into the Indian market quite easily

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(Chari, 2013). The consistency in delivery services also reflect use of good quality and
premium coffee beans from all over the world to ensure adding supreme freshness and
exquisite taste and flavour to the coffee products. In the Indian market, Starbucks and
Baristas are popular coffee retail chains that offer premium quality coffee products to the
customers and thus it is evident that the Indian people prefer to consume the coffee beverage,
which can create great opportunity for Coffex to enter the marketplace effectively (Vishnu &
Kumar Gupta, 2014). The major strengths of the company also include extraction of good
quality coffee beans from various reliable sources and brewing the freshest quality coffee to
satisfy the customers largely while the large network for distribution and targeting every
segments of customers have further enhanced the brand image and reputation (Bose, Vira &
Garcia, 2016).
The weaknesses include stiff competition from other coffee based businesses such as
Starbucks, Baristas, etc. while the high price of products and services is also a matter of
concern and thus been considered as a major weakness. The company lacked innovation in
certain areas, due to which, focus has been mostly on the beverage items and thus the snacks
items and other food items have been ignored as well (Kolk, 2013). Due to this, the Indian
marketplace might be difficult to make an entry by Coffex, because the Indian customers
prefer consuming snacks alongside coffee items.
The entry into the foreign marketplace could allow for greater scopes and
opportunities to manage global business expansion and at the same time, create a large
customer base for higher revenue generation. The management of e-commerce technology
could also create extensive opportunities for managing products and services’ delivery online,
furthermore promote the channels of distribution effectively too (Dharni & Sharma, 2015).

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The threats include the presence of competitors within the marketplace as well as the
threats of new entrants and similar kinds of coffee based products and services available.
There are threats caused by trade laws, rules and regulations along with tax rates, which can
also affect the business functioning for Coffex, Australia while making an entry into the
Indian marketplace (Sundar, 2013).
Additional analysis reflecting future country analysis
Considering the fact that entry into the Indian marketplace might not be easy due to
lack of business friendly policies and programs, making an entry into the market definitely
can be good for long term sustenance in the future. It is also true that a business relies largely
on the rate of return on investments made and as India already provides a number of benefits
or advantages in terms of long term achievement, managing global expansion by considering
India as the importing nation could be a viable option for the company (Noe et al., 2017).
The analysis of Indian marketplace demonstrates that the economy of the country has
been the ninth largest in terms of the nominal GDP and the purchasing power parity is also
the third largest within the whole world. It is a true fact that the growth trend in India has also
been expected to go much beyond the growth trend in China as well. Many of the businesses
have invested in India, because of which, the Foreign Direct investment or FDI has also risen
to a large extent (Boscagli, 2019). The expansion plans for some of the major global business
organisations have indicated that the performance objectives could be easily achieved in the
future as well as increased possibility of revenue generation on a larger scale. Coffex could
analyse the investment scopes and opportunities or even focus on acqusitions to ensure
making investments by adapting the global business management practices and link it with
the global economy of the nation (Madsen & Walker, 2015). This would not only allow the
company to identify its potential to survive in the new area, but also would prioritise on the

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management of business operations and processes to ensure scaling up the effective business
functions efficiently.
The entry into the global marketplace of India requires identification of the target
market scopes and opportunities and also determine the key partners with whom the company
can work with to know the local market conditions and get acquainted with the procedural
issues (Lechner & Gudmundsson, 2014). The diverse market environment and strategies must
be understood as well along with the income groups to ensure that the targeted markets are
attracted for gaining acceptance by fulfilling the needs of local people effectively. The Indian
import procedures must be understood too for smooth entry into the Indian marketplace for
Coffex, Australia (Coffex.com.au, 2019).
Competitive strategy analysis
The competitive strategies are implemented by the companies to gain long term
benefits and at the same time, attain a competitive edge over its competitors much easily. By
implementing these competitive strategies, the company would be able to develop a good
position within the marketplace and even sustain within the beverage industry by generating
good rate of return on investments too (D. Banker et al., 2014). According to the Generic
strategies of Porter, there are different strategies that can enable the organisation to develop a
proper direction that must be followed and make sure to implement the right strategies for the
accomplishment of business goals and objectives, furthermore, stay ahead of the competitors
in business much conveniently (Ray Gehani, 2013). The four major competitive strategies
could be the cost leadership, differentiation strategy, cost focus strategy and differentiation
focus strategy.

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Considering the product component, the cost leadership could allow Coffex to analyse
the prices of similar kinds of products and services in the marketplace and then set prices that
are lower than the competitors. The lowering of costs would easily influence the buying
behaviours of customers and aim at gaining a greater market share and even possess a
substantial investment capital at the disposal, manage effective logistics operations and even
offer the products and services at lower prices in terms of material and labour management
(Zehir, Can & Karaboga, 2013).
While targeting a broader market, the coffee product must possess unique
characteristics that can make the customers differentiate between the products of Coffex and
the products of some other coffee businesses. This would make the product exclusive as well
as differentiate when compared to its competitors, furthermore, assist the company to stay
ahead of its competitors. The company must conduct research and development activities for
the purpose of remaining flexible and at the same time, adapt quickly to the changing foreign
market conditions to prevent exposure to global market risks (Chintakananda & McIntyre,
2014).

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The cost focus strategy could also be beneficial for Coffex to target the niche market,
i.e., the market segments where there is lesser competition, which could allow for remaining
focused on the market segments without fearing to compete with others, rather, understand
the dynamics of targeted market and meet the needs of customers by keeping the costs of
products lowered too. The differentiation focus, on the other hand, could tend to bring more
positive outcomes with the help of engaging brand loyalty programs and establish trust
among them too (Song, 2014). These competitive strategies are implemented to keep the
customer motivated and encouraged towards the organisation, furthermore, resolve the
barriers that might be associated with the management of global business too (Coffex.com.au,
2019).
Market entry options analysis
There are various ways or approaches that are associated with the entry into the
foreign market, i.e., India, which has been the importing nation considered here. The coffee
business named Coffex, to make an entry into, the Indian market, should follow the different
market entry strategies to gain increase in sales and even manage greater adaptation of
products and services along with engaging with the local marketing techniques and
transportation activities too (Tolstoy, 2014).
The Direct exporting could enable Coffex to sell the products and services directly
into the market and at the same time, acquire the resources and competencies required to
facilitate global business management. The company should work with the local agents and
distributions of India to adapt to the local market conditions, assess those properly and ensure
exporting activities to be managed properly.
The Licensing could enable forming a contractual agreement between two companies
and enable Coffex to transfer the rights and responsibilities to use the products and services

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of the company by another company (Stock & Reiferscheid, 2014). The licensing could also
facilitate gaining a bigger market share by improving the effectiveness of marketing and
production processes too.
The joint venture working could also be a viable option for Coffex to form partnership
with another major coffee business already established in India to target a specific market and
meet the needs of clients, though considering the fact that the risks and profit would be
equally shared between the two companies.
The franchising market entry strategy is another option for making an entry into the
market, which enables focusing on rapid market expansion and even acquire strong brand
recognition that could be successful for gaining sustenance in the global marketplace and
cope up with the recent trends to attain success in the future competition too (Pattit et al.,
2014).
The franchising and joint venture working, both, could be viable options for making
an entry into the global market, furthermore, prioritize on rapid expansion of market along
with gaining strong brand recognition too.
Marketing and R&D considerations
The research and development partnerships are more likely associated with the
formation of strategic partnerships between the organisations that allow for the development
of new products and services along with the management of innovation aspects for gaining
benefits. Coffex would work with another coffee business as strategic partners where the
limited partners could provide a good amount of fund or make investments for the purpose of
research and development scopes and opportunities (Story et al., 2014). This could be
beneficial for Coffex to innovate its products and services and advance in business to cater
the changing needs and preferences of people in India.

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This could also create opportunities to extending the marketing techniques such as
evolvement of marketing with the engagement of social media platforms to attract more
customers and influence their buying behaviours while at the same time, share the profit
achieved, costs as well as the associated risks to ensure that the time to market the products is
reduced largely. The marketing efficiency would increase and also bring competitive edge
over its competitors, furthermore, result in faster revenue generation and sales too
(Coffex.com.au, 2019).
The R&D considerations could also include management of intellectual property,
which should be possible for Coffex with the help of clearly defining the investments along
with sharing of profit and gaining the ability to purchase the intellectual property while
managing this strategic partnership agreement with another business (Rees & Smith, 2017).
As Coffex is an Australian company and it aims at managing global business in India, it is a
case of cross border research and development partnership, which could enable assessment of
patents, copyrights and other intellectual property and make sure to keep those protected
while working on the project (Coffex.com.au, 2019).
Recommendations regarding production
 It is recommended for Coffex to automate the reordering aspect for keeping record of
the stocks that have been purchased by assessing the invoices, which could save a
significant amount of cost while managing business globally
 The streamlining of scheduling process would also reduce the working hours that are
being spent by the employees
 The development of training program and identification of developmental needs are
critical for strengthening the skills of employees and make them respect the Indian
values, beliefs and culture while operating in India