AMB210 Assignment 2: Export Planning Report for Mullins Food Company

This report presents an export plan for Mullins Food Company, a US-based gourmet sauce manufacturer, aiming to expand into the Australian market. The report begins with an executive summary highlighting the company's interest in international expansion and the potential opportunities in Australia. It then assesses Mullins Food's export readiness, considering its product range, market share in the US, and brand awareness. The report includes a detailed PESTEL analysis of the Australian market, covering political, economic, socio-cultural, technological, environmental, and legal factors. It also examines cultural dimensions, noting similarities and differences between the US and Australian markets. Finally, the report proposes export strategies, including proactive exporting, and addresses logistics and regulatory requirements. The analysis suggests that the Australian market presents significant opportunities for Mullins Food, given the country's food culture and eased financial pressure for new businesses.

Running head: ASSIGNMENT 2: EXPORT PLANNING REPORT
ASSIGNMENT 2: EXPORT PLANNING REPORT
Name of the Student
Name of the University
Author Note

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Executive Summary
The focus of the report is to provide a comprehensive Export plan for a US based
organization. The chosen company is the Mullins Food company. The company is small to
medium sized organization that mostly operates in the various markets of the United States. The
company would like to expand its business to Australia. The implications of the report point
towards the better opportunities for expansion that are present for the company in the country.

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Table of Contents
a. Export readiness of the company chosen.....................................................................................3
b. Analysis of the chosen market: Australia....................................................................................4
PESTEL.......................................................................................................................................4
Cultural Dimensions....................................................................................................................7
c. Assessment and proposal of strategies.........................................................................................8
Export entry method....................................................................................................................8
Management of Logistics issues..................................................................................................9
Regulatory requirements..............................................................................................................9
References......................................................................................................................................10

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a. Export readiness of the company chosen
The chosen company is the Mullins Food company. The company is small to medium
sized organization that mostly operates in the various markets of the United States. The company
sells various types of gourmet sauces, marinades, glazes, dipping sauces, barbeque sauces,
coleslaw, mayonnaise and various other types of sauces (Blog, 2019). An important part of the
business of Mullins food is their manufacture of custom sauces. The customers can contact the
company and place order fo the exact kind of sauce that they would like the company to make
for them. The current operations of the organization are only in the various domestic market.
Since the organization manufactures products like sauces and marinades that are used much in
cooking meat, it focuses on outdoor cooking as a significant part of its product placement.
Naturally, the barbeque culture in many places across the United States helps to promote the
products of the Mullins Food. The organization was started off as a family business and has a
homemade feel to the sauces that they manufacture. The warmer areas of the United State like
the Midwest, East coast, South and West are some of the important markets for the products.
It is important to understand that in order to expand to international markets the first
consideration is for a suitable country. This country would essentially need to be a market where
demand of the product can be created effectively. It is here that the export readiness is needed to
be considered as per the Australian markets. The company has to attain a certain degree of
effectiveness in manufacturing and selling a product if it wants to sell it to an entirely new
market. In this case it can be said that the productivity of the Mullins Food company is currently
enough to make the international expansion. However, the organization would have to do this
one at a time. Thus, Australian market would need to be reached first before expanding to any

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other country. It is now important that the analysis of the expansion potential of the organization
is done in terms of the Australian market. The first most important aspect that contribute to the
export readiness of the Mullins Food company is the large number of products that are
manufactured by the company. Australia is a country with strong food culture and the people
depend on a large number of complementary factors to determine the value of their food. Lots of
sauces are used for cooking in the country which makes penetration relatively easier.
There is significant competitive advantage that can be gained by the organization. The
company has a significant market share in the United States. It is a subsidiary of the Newly Weds
Foods which as revenue of 116.5 US dollars. The organization has been steadily improving in
the sauce market of the US and is in a good position to reach the market of Australia. There is
significant brand awareness that is present in the United States. In many outside markets as well
Mullins Food is popular. Australia is a good new opportunity to do business for the company.
The country has eased the financial pressure on starting new businesses. Moreover, the
construction permits have been made lesser expensive in the country. Thus, Mullins Foods can
have relative ease when going into the market of the country.
b. Analysis of the chosen market: Australia
PESTEL
Political
The political climate in Australia is good and there are very less number of restrictions on
the companies that are trying to expand their businesses to Australia. There are relatively lower
amount of taxes that have contributed to the better placement of the organization. The Doing
business score of the country in regards to paying taxes are 85.65 (Explore Economies, 2019). It

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is important to note that the government of Australia always focuses on improving the conditions
of the organizations that do business in the country. Australia usually has very good relations
with the United States in terms of business. Some of the US brands are widely popular in the
country.
Economic
The economy of Australia is ranked 18th among all the major economies of the world.
Social. For starting a business as per the doingbusiness.org (2019) the country is ranked 7th. It is
ranked 14th as per paying taxes are concerned. The country has been listed as an OECD high
income country. The country has a per capita gross national income of 51,360 US Dollars. As of
2019 the country has been listed at 26th rank in terms of paying taxes. The country might not be
the lowest ranked as per the taxation rates but there is much scope for improvement for a
company like Mullins Food.
Socio-cultural
Australia has its very own barbecue culture like that of the US. In Australia, there are
more varieties of meats that are used. Hence, it becomes important that the sauces are made
taking into consideration the tastes and preferences of the people of Australia. As per the social
setting of Australia the most important products are mayonnaise, barbeque sauces and
mayonnaise are more important. Australians are fond of having outside barbeques with chops,
steaks, sausages and wine. The indigenous population of Australia have always cooked their
food in the open. The country loves to have food with sauces. Moreover, the varied number of
cuisines available in the country would help the company to sell its wide variety of sauces. The
company has a good business proposition as per the social conditions are considered.

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Technological
Technologically Australia is a sound country with all the relevant and utilizable
technology available for a company like Mullins Food. The company relies on some important
technological factors to manufacture sauces. Australia ranks 9th in dealing with construction
permits in the world. Hence, it would be relatively easier for the company to establish the
technological aspects in the country. The country has a very developed infrastructure in terms of
technology. This can easily be used to the advantage of Mullins food. There would not be any
significant challenges in this area.
Environmental
Environmental factors that affect the business of Mullins Food are related to the produce
that are available for the manufacture of the sauces that are produced. The agricultural sector of
Australia is vast and diverse. There should be enough available raw materials to help the
company manufacture its products in the country if it likes to. The packaging becomes the most
important concern for the organization. Eco-friendly packaging functions should be used.
Moreover, the environment laws of the country are significant in determining the precautionary
measures that are to be taken by the organization. The organization would have to focus on using
cleaner and environment friendly means of production.
Legal
The most important law to consider is the food safety act 2005 of the food and safety
regulations of Australia. All the organizations working in the country need to abide by the food
safety laws of Australia. Usually, the focus should be on lesser usage of harmful preservatives
that can very unhealthy for the consumers. There should also not be any misleading content that

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can affect the perception of the audiences. The Australia New Zealand food standards code is an
important factor that should be considered as far as the legal requirements are considered. The
food standards are important in determining the health effectiveness of the food products that are
produces. The Food regulation act 2016, Food Production Safety Act 2000 and Food Production
Safety Regulations 2014 are very important considerations for the organization.
Cultural Dimensions
When starting a business in a country it is very important to consider the cultural
perspectives of the populations of any country. In this case Australia is a new market for the
products of Mullins Food Company. It becomes important that the cultural dimensions that
govern the country are given much importance towards determining the effectiveness of the
marketing and promotional activities that are to take place. Australia has some of the cultural and
legislative similarities with the US. This makes them a country that can be utilized for better
revenue potential.
In Australia 90% of the population can be said to be urban dwelling population. Hence, it
becomes imperatives that almost 90% of the population of the country would have direct access
to the shopping malls. The food products manufactured by the Mullins food company would
mostly be present at the various shopping malls of the country.
The infrastructure of Australia is highly developed. There are strong transportation
networks across the entire country. Most of the cities of the country are infrastructural very
developed. The infrastructure of the country is effective in determining the value of businesses.
The logistics functions would also be enhanced due to the better road connections that are
available in the country.

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The United States and Australia have some essential cultural similarities. There are
similar cultural perspectives, economies, political systems and business models that are based on
cross-cultural communications. It is important to consider that like the United States, Australia is
also a multicultural country (GlobeSmart® – Aperian Global, 2019). The organization is focused
towards using these similarities towards its advantage. It is important to consider that the
consumers in both the countries essentially behave in similar ways. It is important to manage the
customers in accordance with their preferences in business scenarios of both the countries.
The food tastes of the Australians have evolved in accordance with the different
immigrants that have arrived in the country from many different places across the globe. Italian
food is a very important cuisine in the country just like it is in the United States. Moreover, there
is quite preference for English food, Irish food, Greek and Chinese. Currently, there is the rise of
the Mexican-style cuisines.
Some of the important competitors are Mars and Masterfoods, Aldi, Simplot Australia,
etc.
c. Assessment and proposal of strategies
Export entry method
One of the export methods that can be used is proactive exporting. It is important that the
products are not released in the country directly. The better way will be to release the products in
the market in a batch system. The company would focus on slowly building a brand reputation
among the target audiences. There would be no payment made to intermediaries. The
organization would focus on controlling the pricing, branding and marketing. The direct
marketing of the user behavior would be done to understand the problem. Retention and

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development of relationships would be focused. Identification of new opportunities would be
important in determining the strategies.
Management of Logistics issues
The primary sales region of the company would be the Melbourne region. The region is
well connected. However, some of the logistics challenges in the city would be bringing in large
shipments if the product in the initial stages. Large ships cannot enter the Melbourne port. This is
a problem and the export has to be made in smaller batches. The logistics facilities of the city are
not much effective at all times and there is a lower number of logistics companies in the city.
Moreover, the intercity transportation facilities tend to be cramped up at times affecting intercity
logistics. The market situations are competitive enough to ensure warehouse competition. To
tackle these problems it becomes necessary that the company takes effective steps towards
sending smaller batches primarily. The company would need to use local transport.
Regulatory requirements
The regulatory requirements would be the food safety laws and the Australian export
laws primarily. The company would need to consider the most important laws that govern export
and import oriented activities of Australia. The export and import related laws that are to be
considered are concerned with the Free Trade Agreements, Tarrifs and Duties, Import
regulations. A customs license would be required for the export into Australia. Department of
home affairs and duties form the laws. The Australia New Zealand food standards code is an
important factor that should be considered as far as the legal requirements are considered. The
food standards are important in determining the health effectiveness of the food products that are

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produces. The Food regulation act 2016, Food Production Safety Act 2000 and Food Production
Safety Regulations 2014.

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References
Blog. (2019). Retrieved from http://www.mullinsfood.com/blog
Explore Economies. (2019). Retrieved from
http://www.doingbusiness.org/en/data/exploreeconomies/australia#
Food Act and Food Standards Code | Queensland Health. (2019). Retrieved from
https://www.health.qld.gov.au/public-health/industry-environment/food-safety/
regulation/act-standards
GlobeSmart® – Aperian Global. (2019). Retrieved from https://www.aperianglobal.com/modes-
of-delivery/globesmart/