QUT BSD119: Global Business - Daintree Estates Market Analysis

This report, prepared by an international business analyst, provides a detailed market analysis of Daintree Estates' products, focusing on Malaysia and Singapore as potential export markets. The analysis considers the socio-economic, political, and legal environments of both countries to determine their suitability for sales expansion. The report examines the organizational background of Daintree Estates, a cocoa and chocolate producer, and its 'plantation to plate' business model. It delves into the economic conditions, including GDP growth, employment, and consumer spending, to assess market feasibility. The political and legal environments are also evaluated, considering factors like government policies, taxation, and business regulations. The report compares the business environments, including the cocoa industry landscape, competition, and market entry conditions in both countries. Ultimately, the report concludes with recommendations on the most suitable market for Daintree Estates, based on a comprehensive evaluation of the factors influencing business growth and market potential.

Running Head: GLOBAL BUSINESS ASSIGNMENT
Global business assignment
Student’s Name
University Name
Author’s Note

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1. Introduction
As an international business analyst, the researcher, will conduct an extensive business
research in this report with the intention of analyzing the market potential of the Daintree
Estates’ products for sales. The two chosen markets where the sales expansion would take place
are Malaysia as well as Singapore. As a consultant, the researcher would be providing relevant
recommendations for the selection of the best choice for DE. The market potential analysis of the
report would be based on the analysis of the socio-economical, political as well as legal business
environments.
1.1 Organizational Background
Daintree Estates is an original home grown cocoa as well as chocolate organization. in
the year 2011, the organization developed the first ever chocolate produced from cocoa grown in
Australia. although most of the chocolate makers are following a bean to bar model of business,
Daintree follows the plantation to plate model of business. The organization highly favors
responsible farming and responsible production. They have been supporting the local economies
as well as farmers of Australia in Northern Queensland. Developing eminently new solution for
cocoa technology as well as practicing ethical leadership they have been able to provide a new
direction to the domestic cocoa industry of Australia. They have contract with more than 150
retailers around Australia which are responsible for the distribution of products of Daintree
around the world (Nor et al. 2016). The organization also has a well pronounced sales channel
whereby they have established contract with several important suppliers around the world.
However, in spite of the fact that the organization has a well defined sales channel and they
product unique products that are already popularized in the Australian market, they have not

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taken any integrative marketing initiative in order to promote their cocoa products in the
international market. Nevertheless in this context, it can be highlighted that the organization is
currently emphasizing on the marketing of their products in two new markets of Asia, in
Malaysia and Singapore. The role of the international business consultant is going to be very
critical in this context, since the organization has been expanding in new business geography.
Hence, it can be analyzed that the report is going to consider the factors that would lead
to development of a new customer base operational in countries like Malaysia as well Singapore.
2. Socio-economic environment
In this section, an analysis of the social and economic environment of the two countries
will be made and on that basis the feasibilities of both the countries as export markets will be
indicated. Nevertheless, it can be highlighted that the economy of Malaysia has been performing
stably and their economic growth has taken place at more than anticipated rate. In fact, IMF
statistics show that Malaysia is going to achieve the high income status in the upcoming decade.
Other than the depreciation in industrial productivity to some extent and the slow rise in the
living standards of the people, the rest of the economy is progressing at a fast pace. Malaysia is
showing improvement in terms of trade over commodities like oil and gas as well as in the
FMCG category like processed food products like cocoa products like that of Daintree. However,
flow of trade should not be concentrated in whole sales export or import. Another important
factor that would be helpful in fostering the business of Cocoa products of Daintree with the
Malaysian dealers is that the strong domestic employment of the country is helping in boosting
of private consumption as well as the investment is also helping in order to drive growth.

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2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
GDP Percentage change from 2013 to 2022
Malaysia Malaysia Singapore
Years
Percentage of GDP change
Arguably the economic conditions of Malaysia are more favorable in comparison to the business
development conditions of Singapore. However there are two ways of perceiving the growth
opportunities in the two countries. In the first place, the business objective of the brand in
Malaysia would be revenue generation. Again in the Singaporean market, the objective of the
brand should be enhancing the expansion of the brand presence by means of which the
organization would be able to expand in the other Asian domains.
3. Political-legal environment
As per the recommendations for economic improvement from the IMF, the government
of Malaysia is inclined on rising the revenue generation of the skilled as well as unskilled
workers of the country. the government has discarded their policy of achieving their goals in
continued cost cutting by means of public spending. As an outcome, the graph of GDP
development of the country has reduce from 3.4 % GDP growth in the year 2014 to 3% in the
year 2017. However the nature of growth of the Malaysian economy suggests that there is
enough growth opportunity for Daintree under the current market conditions. They can provide a

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new business solution that would be able to diversify business, create new business opportunities
as well as generate taxes for the business.
The legal prospective of Malaysia are also in favor of business growth of the country.
There are no unprecedented legal constrictions on the growth of foreign business in the country.
Hence, it can be highlighted that there are both ways of expanding the business in Malaysia as
well as in Singapore. On one hand there are ample opportunities of expanding the business by
means of exporting finished products in Malaysia (Lim, 2017). On the contrary, the Singaporean
economy is supporting the expansion of foreign business on an entrepreneurial level in the
country.
Comparison of political atmosphere of the two countries
Malaysia Singapore
Political forces encourage mobility f economy and
cash liquidity. This is why; new business and
business diversification will be prioritized.
Industrial development mis prioritized because of
which it would be easier for the company to make a
market entry.
Decline in cocoa industry entices the government
to depend on imports from other markets
Liberal economy enhances the fascination for
foreign luxury products because of which the
company will get a big open market
Political control is stable and tax rate is stable. Taxation norms are complex, but market entry is
easier.
4. Business environment

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The cocoa industry and intrinsic production of cocoa has declined in Malaysia. Hence, it
is evident that in order to fulfill the demand of cocoa products in the market, it is necessary that
country depends on the external provision in order to ensure fulfillment of market demand.
The same is applicable in context of Singaporean business. “It is estimated that the cocoa
industry contributed a total of RM1.566bil to the country’s gross domestic product (GDP),
consisting of RM16mil from the upstream sector and RM1.406bil from the downstream sector,
At the moment, we have 49 chocolate and confectionary-based factories, consisting of 185 local
entrepreneurs that are operating across the country with a sales value of RM721mil. As an
outcome, the business growth of cocoa industry and the new foreign cocoa companies trying to
enter the market. At the event, the ministry also launched a new fertiliser known as MCB F1
HYFer, specifically for cocoa, which had been found to increase its production by 20%
compared with conventional fertilisers.
Differences in Business environment
Malaysia Singapore
Favorable for exporting volumes of finished
products
Favourable for market entry
Entrepreneurship in luxury food products is lower.
This is why market scope is high. But business
trends are adverse
Entrepreneurship is favored. Foreign brands get a
open market economy.
No competition in cocoa industry Two or three local as well as foreign rival brands
existing in the country.
5. Analysis

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The 11th Malaysia plan has ample scope that can favor the growth of business of Daintree
in Malaysia. In order to foster economic productivity, the organization is trying to establish a
policy for increment of labor’s share of income, employment of skilled labor and is also
launching various schemes for development of new employment opportunities to flourish in the
new business sectors. In this context, it can be highlighted that these are some of the industry
specific growth needs that can help in the flourishing of the business of Daintree. This is a
comparatively innovative business and there are high chances of flourishing of the business in
Malaysia. There are chances of high productivity in Malaysia if raw cocoa is exported to the
country and products are manufactured according to the demand of the country. In this context it
can be highlighted that under any circumstance, there are chances of high profitability of the
company. In the first place, it can be highlighted that because of the stability and constant
development of the economy, the purchasing capacity as well as disposable income of a large
section of people working in the organized sector of the country. As an outcome, the propensities
of the customers to invest in luxury products like chocolates have increased to a great extent.
Analyzing the political conditions prevailing in the market, it can be highlighted that the
market entry conditions are very lucrative. Both the organizations are highly proactive about the
new brand entry in the Asian domain (Trivedi, 2017). Malaysia will be favoring foreign business
if they are able to provide job opportunities and develop new skill base for a large section of
unskilled laborers in the market. Again, Singapore is favoring the direct market entry of foreign
brands, rather than ensuring the expansion of brands through product import only. In this
context, it can be highlighted that the proximity of brand awareness development in Singapore is
the highest. The government of both countries has also emphasized on training in scientific
production areas. As an outcome of that, the number of workers in the organized sector is highly

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enhancing. This will also create the opportunity for the availability of skilled and cheap laborers
in processes like marketing, manufacturing, process and for the pre and post sales processes also.
6. Conclusions
Analyzing the business conditions prevailing in the market, it can be concluded that the growth
feasibility in the Malaysian market is higher than Singapore. However, the market exposure that
Daintree will get as an impact of business expansion in Singapore in the whole of Asian market
is the highest.

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Reference List
Trivedi, R. H. (2017). Entrepreneurial-intention constraint model: A comparative analysis among
post-graduate management students in India, Singapore and Malaysia. International
Entrepreneurship and Management Journal, 13(4), 1239-1261.
Lim, L.Y., (2017). The evolution of Southeast Asian business systems. Business, Government
and Labor: Essays on Economic Development in Singapore and Southeast Asia, p.243.
Nor, N.M., Bahari, N.A.S., Adnan, N.A., Kamal, S.M.Q.A.S. and Ali, I.M., (2016). The effects
of environmental disclosure on financial performance in Malaysia. Procedia Economics and
Finance, 35, pp.117-126.