Analysis of Haigh's Chocolate Market Expansion in Singapore: Report

This report analyzes the potential for Haigh's Chocolate to expand its business operations into Singapore, focusing on market trends, financial data, and strategic recommendations. The report begins with an overview of Haigh's Chocolate and the confectionery market in Singapore, highlighting the increasing demand for premium chocolate products. It presents a discounted free cash flow model, demonstrating the financial viability of the expansion project. The report then discusses market entry strategies, including licensing agreements and the impact of GST. A PESTLE analysis is conducted to assess the political, economic, social, technological, legal, and environmental factors influencing the business. The benefits and drawbacks of the expansion are evaluated, along with various promotional tools and distribution channels. The report concludes that the business expansion is beneficial for the company as it generates more revenue and sales for the company, generating goodwill in the international market and providing more opportunities to produce products and services.

Accounting
Assignment

Cover Content
 Introduction
 Overview of the company
 Market Trend
 Entrance in Market
 Analysis of data
 Licensing
 PESTLE Analysis
 Benefits of the Haigh's Chocolate
 Drawbacks of the Haigh's Chocolate
 Promotional tools
 Distributional channels
 Conclusion
 References

Introduction
This project report will have discussed about the
market expansion in the other country which enhances
the revenue and goodwill for the company.
The business growth in the other countries will
increases the market share and also provides new
opportunities to the company in the new country.

Overview Of The Company
Haigh’s Manufacturing Pvt. Ltd is a privately owned
organization which produces chocolates and confectionery as a
traditional small batch manufacturer.
The company associated their business operations in fine
chocolates and also in premium gifts in special occasion.

Market Trend in Singapore for chocolate
 Singapore has a well-developed market for confectionery
products. The country is best investment potential and world’s
smartest city in the world.
 The rapid increase of premiumization with consumer trend
has been changed and demand also for speciality chocolate
has been increased over the six years.

Evaluation of financial data
Discounted Free Cash Flow Model
Particulars 2018 2019 2020
Sales 1500000 1650000 1815000
COGS 650000 715000 786500
Gross Profits 850000 935000 1028500
Operational expenses 258500 258500 258500
EBITDA 591500 676500 770000
Depriciation 50000 50000 50000
EBIT 541500 626500 720000
Tax 162450 187950 216000
PAT 379050 438550 504000
Cash flow 429050 488550 554000
Discounted factor@10% 0.909090909 0.82644628 0.751314801
NPV 390045.4545 403760.331 416228.3997
Project cost 1000000
Present value 1210034.185
NPV 210034.1848

Continue
As per the above calculation, this can be rightly observed
that the project costs was 1million which was recovered
within 3 years of initiating the project. Now, net present
value of the project was 210034 which shows that the
positive inflows from the project. Henceforth, there is a
need to invest the money in the aforementioned project in
order to expand in the Singapore. As, this shows the
positive response and company would capitalise more
amount.

Entrance In The Market And Rules And
Regulations
The company can enter into the market with the help of
license agreement, Partner Company and also enter directly in
the market.
A 7 percent GST (Goods & Services Tax) is going to be
levied for all chocolate products which are imported into
Singapore.

Licensing
The company can enter into the market with the help of licensing
agreement and operates their business operations in the foreign
market. Following there are benefits to licensing which are listed
below:
It increases market share
It also increases ROI (Return on Investment)
Lower capital requirements
It decreases financial and legal risks

PESTLE Analysis
 Political
 Economic
 Social
 Technological
 Legal
 Environmental

Benefits To The Haigh’s Chocolate
Company In The Singapore
 With the help of experience, the company can expand
their business operations in the other country.
 The company can also take competitive advantage in
the market of Singapore by introducing the new
products according to the taste and preference of
consumers of a country.

Drawbacks To The Haigh’s Chocolate
Company In The Singapore
 The company face the tough competition from the
local players and international players also which
are already do their business in an effective manner.
 The government rules and regulations also affect
various strategies and plans of the company’s
business operations.