MAN304 Case Study: International Business Issues for Grants Toothpaste

This case study analyzes the international business challenges faced by Grants Toothpaste, an Australian company seeking to enter the Malaysian market. It examines competitive advantages, focusing on the toothpaste market and key competitors like Colgate and Darlie. The analysis covers various factors for market entry, including demographic, human capital, and environmental considerations. The study explores distribution strategies, entry modes, and the importance of understanding the Malaysian market. It also addresses ethical, legal, social, and labor issues, alongside intellectual property and tax implications. The paper emphasizes the need for economic, legal, ethical, and philanthropic responsibilities in international business, highlighting issues like jurisdiction, human rights, and environmental standards. The conclusion underscores the complexities of international business and the need for careful planning and adaptation to local conditions.


Issues in International
Business

 Globalization of business by an organization is known as International
business.
 International Business (IB) has many advantages with some potential issues
as well.
 Most of the large organziation have a vision to expend their business in
global market (Hill, 2008).
 Grants can face many issue in Malaysian market because of giant
competitor Colgate.
 Toothpaste is daily purpose product and it sales at every place. Therefore,
the company should consider different parts of Malaysian market.
International
Business


 There are different sources to take competitive advantage
for a firm, such as reputation, economic performance, value
added, people retention, and others
 Organization can improve these factors for taking
competitive advantage in the existing market.
 Toothpaste is a daily usages product, which is used
by the most of the people.
 Three main competitors in Malaysian market for toothpaste,
which are:
 Darlie (market share is 31%)
 Colgate ( Market share is 60 %)
 Sensodyne ( Market share is 5 %)
Competitive advantage to
Grants


 Advice by constant or professional about the
business
 Acquire industry related licenses and requirements
 financial rate should be know by the grants
 create and secure distribution premises
 Human resource and management for hiring workers
 Conduct Intellectual Property rights based on
Malaysian government
 Tax planning and registration is necessary for start
a business in Malaysia
Requirements for business in
Malaysia

 Organization should consider different factors
in choice of country for international business,
such as demographic factors, human capital
factors, environmental factor, and others.
Malaysia is select for business

 The grants of Australia should know about
different factors as mentioned in the below
diagram.
 Grants should consider different, local market
for increasing sales with the help of distributors
 The company should create different
distribution centre for better facility for buyers.
Information about the Malaysia


Mode of entry in
Malaysia
 Partners should have
knowledge about the
market of Malaysia.
 Distributors should
be properly
managed
 Products and
services
 Consider buyers in
local and national
level


 1. Set clear goals for the toothpaste launch
 2. Research Malaysian market and launch at proper
places, such as supermarkets, local shops, and many
others
 3. Study about the competitors in the Malaysia, such
as Colgate, Sensodyne, and Darlie
 4. Choose supermarket for mode of entry as well as
local shops, because toothpaste is daily usages
product
 5. Figure out your financing needs and develop the
strategy document
Grants should take to implement its strategy of entry mode


International Business
needs
 Economic
responsibility
 Legal responsibility
 Ethical
Responsibility
 Philanthropic
responsibility

 Ethical issues: IB requires strong ethics to work in
international market. reputation of organization makes a
huge business in international market. Grants use their
reputation in Malaysian market.
 Legal Issues: different countries have different laws for
starting of business (Buckley, 2016).
 Social Issues: It is a basic need to implement IB in host
country and they should build schools, hospitals, and many
other things.
 Labour Issues: Labour is huge factor, which affects
international business. Malaysia is good for business as it
have low labour cost.
 Environmental issues: global warming is increasing data by
day. Therefore, it is necessary to follow international
standards (Shenkar, Luo, and Chi, 2014).
Issues in Business in
Malaysia


Jurisdiction
 International business
should consider
primary issue, such as
jurisdiction
 They should have legal
body to make decisions
 Organizations should
follow legal systems of
various countries to
develop their business


Intellectual Property
 Intellectual Property (IP) is
uncertain in different legal
jurisdiction
 In case of IB, copyrights and
trademarks are mostly
considered
 E-business should follow
certain steps to secure their
copyrights, which is related
to their website.
 They should registered their
trademarks in each country
in which a business operated