Project Report: Feasibility of Kopitiam in the Chinese Market

This project report evaluates the feasibility of Kopitiam Investment Pte Ltd, a Singaporean company, entering the Chinese market. The report comprehensively analyzes various factors, including legal, environmental, product, marketing, business strategies, and financial aspects, to determine the company's potential in China. It assesses the viability of establishing a business in China, providing detailed feasibility analyses and outlining the process for market entry. The report highlights the potential for strong performance in the Chinese market and suggests new strategies and plans for the company's preparation. Key areas covered include industry and company descriptions, product factors, legal considerations, business strategies, financial planning, and management considerations. The report also includes an executive summary, contents, references, and an appendix, offering a complete overview of the company's prospects and recommendations for successful market entry. The report emphasizes the importance of adapting to the local market, understanding consumer preferences, and developing effective strategies for product positioning, pricing, distribution, and promotion.

Running Head: International business
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Project Report: International Business

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Executive summary
This report has been prepared to evaluate the feasibility of Singapore Company,
Kopitiam Investment Pte Ltd into Chinese market. The report evaluates all the related factors
such as legal factor, environmental factor, product and service factor, marketing factor,
business strategies, finance factor etc of the company to identify the performance and the
position of the company in Chinese market. It evaluates that whether it is possible for the
company to set its business into china market or not.
The report includes all the feasibility analysis on the china market and the process of
the company to enter into china market. It explains that the performance of the company
would be quite better in the company. The reports also concentrate on some new strategies
and plans which should be prepared by the company before entering into the china market.
The report includes the industry description, company description, product factor, legal
factor, strategies, evaluation, feasibility etc.

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Contents
1. Industry business description...................................................................................5
1. Company description...............................................................................................6
1.1 Type of business...............................................................................................6
1.2 Legal structure..................................................................................................7
1.3 History, mission, goals and objectives.............................................................7
1.4 Company principals..........................................................................................8
2. Products and services factor....................................................................................8
2.1 Product and service analysis.............................................................................8
2.2 Customer profile and demand analysis...........................................................10
2.3 Competitive situation......................................................................................10
3. Environmental factors............................................................................................11
3.1 Host country business climate........................................................................11
3.2 SWOT analysis...............................................................................................12
3.3 Government constraints..................................................................................13
3.4 Laws regulations and administration practices...............................................14
4. Business strategies.................................................................................................14
4.1 Product positioning.........................................................................................14
4.2 Pricing strategies............................................................................................15
4.3 Distribution and logistic.................................................................................16
4.4 Promotion and advertising..............................................................................16
4.5 Estimated sales and sales mix.........................................................................18
4.6 Production strategies......................................................................................19
5. Financial planning..................................................................................................19

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5.1 cost analysis, funds and cash flow..................................................................20
5.2 Project profit and loss account.......................................................................21
5.3 Other financial statements..............................................................................22
6. Management consideration....................................................................................25
6.1 Personnel and sales force factor.....................................................................25
6.2 Business advisers............................................................................................26
6.3 Contingency plans..........................................................................................26
7. Conclusion and recommendations:........................................................................26
References:.....................................................................................................................28
Appendix.........................................................................................................................32

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1. Industry business description
Kopitiam group is running its business in hospitality industry in Singapore. Hospitality
business covers numerous businesses which focus on the money. Few of the categories of
hospitality industry of Singapore are as follows:
Travel – Trains, flights, rental cars and busses
Hotels- Beds, motels, rental condos and breakfasts
Food and beverages – Bars, restaurants and cafes
Entertainment – Movies, sports and theatres
Tourist attraction – Museum, historical sites and park
As immense businesses are involved in the industry so, the hospitality industry is a
large revenue market in Singapore. There is little unique business in Singapore hospitality
industry such as medical tourism where people visit to the country for medical purpose. The
medical tourism is one of the largest hospitality markets in Singapore. Though, Singapore is
not a big country and the population of Singapore is dense. But the Singapore has several
zoos, universal studios, museum, Buddhist temple and flower gardens and natural tree. The
food, hotels and cafes of Singapore are also luxurious (Jie et al, 2014).
The current report of Singapore explains that the Singapore has 400 hotels and still
they are building new. It is a small island in an ocean and enhance, the sightseeing of the
country is quite better. The culture of the country also attracts the tourism. Its central location
makes it a better destination for the tourist and visitors. The hospitality industry is also
performing well at international level. It has been evaluated that the current position of
hospitality industry is quite better and thus the firms are diversifying their market and new
investors and ventures and investing their amount in the industry. The given report explains
about the Kopitiam group and its diversification policy in China market (Jianrong et al,
2014). It briefs that how the company could diversify its market into china market and what
is the feasibility of entering into china market.
2. Company description
The Kopitam group is currently running its business in Singapore market and following
is the information about the company:

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2.1Type of business:
Kopitiam Investment pte limited is a private limited company. Private limited comapny
is a company that is privately owned and held by a small business. The member’s liability of
private limited company is only limited to the invested amount or the shares which are
respectively held by them. A private limited company could not trade its shares in public
market. Though, the Kopitiam shares are not traded in the market and only few relatives,
friends and family members are holding the shares of the company. Though, the company is
trying to diversify its market in china and company is planning to Joint venture with a local
company in china.
The study on Kopitiam Investment Pte limited and its joint venture with a local
company in china market explains that the company would enjoy various pros of joint
venture in china market (Our company, 2018). The main advantage of joint venture is that it
helps the company to grow faster, generate greater profit and increase productivity of the
company. It would offer various attractive options to the Kopitiam Investment pte limited in
china market. The company should invest 51% in the joint venture.
1.1 Legal structure:
The legal structure of the company has been evaluated and it has been found that a
joint venture is required to register itself in the comapny registrar office. Joint venture is a
form of FIE (foreign invested enterprises). A company is required to follow few steps to joint
venture with a local company in china. Basically, there are few stages to register a firm and
start a joint venture company. The steps are as follows:
A letter of intent which should be signed by the partners
Joint venture name
JV contract and AOA
Pre approval from NDRC
Approval from some other ministries
Obtain a certificate from MOC (Howell, 2017)
After licensing certain formalities such as tax authorities, technical supervision, bank
account, administration of foreign exchange, certificate form bureau of statistics etc.

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Through the above steps, the company could register itself in the china market as a
joint venture company.
1.2 History, mission, goals and objectives:
Kopitiam Investment Pte limited is a prime site food shop in Singapore. It is one of
the leading names in local food services in Singapore. Kotipiam is basically a traditional
coffee shop which has been founded in south Asia supported by meals and beverages as well.
The company has been founded in 1988 in Singapore. The company has enjoyed a lot growth
in last few decades. The market share of the company has also been enhanced. Currently, the
worth of the company is s$ 2.1 million and it is a prime site food shop (Scholes, 2015).
The main business key model of the company is to identify, select and bring into line
with the right mix for each eatery item and manage the daily operations on an effective basis
(Wang, 2015). Food stalls of the company are leased to identify and select the food vendors,
drink, fruit and dessert vendors. The company has established the dessert shop in 1992 and
The Pa set in 1977. The company has acquisition with 2 major competitors to manage the
market share and enhance the profitability level.
The main strength of the company is its strong business identity, proven track
record, and professional management team, expertise in crafting the thematic eatery,
competency in managing various portfolios, quality food vendors, services and revolutionary
cashless dining. The main mission and vision of the company is to enhance the market share
and offer the good quality food to the customers.
1.3 Company principals:
The main principles of the company are offer an emotional connection to the customers
so that they could feel connected with the stalls and the company, aim to surprise the
customers by anticipating their needs proactively, Nurture the authenticity of the services and
the products, be competent in comparison of the competitors, enable flexibility and be in
touch with the customers (Johnson, 2016).
2. Products and services factor
The company is offering various eatery products and beverages in Singapore market
and the company is now planning to diversify its market into China. The feasibility analysis
on product and service of the company is as follows:

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2.1 Product and service analysis:
The company should evaluate firstly that which product and services would be offered
in the china market. Chinese food products are quite famous in the world wide. Though, the
report of local Chinese people depicts that they are always ready to taste the new food
(Armstrong et al, 2015). The taste of Chinese food is quite different that Singaporean food. It
evaluates that if the company would offer the authentic and local Singapore food in Chinese
market than there are more chances for the company to grow faster and generate more profits.
The company should start a new restaurant in china market where all the authentic food and
the beverages would be served to the Chinese people (Luthans and Jonathan, 2018)
A current report has evaluated that the Singapore food is making huge impact on the
Chinese food. Both the food offers the authentic Asian taste and thus it would be easier for
the company to attract the Chinese people. Further, Chinese people mostly eat the frozen food
and fast food which affects their health badly. It says that if the fresh and authentic food
would be served to the Chinese people than they would definitely love it. Kopitiam
Investment pte limited should focus on the local Singapore food, fresh food and the authentic
taste of the food (Rosario, 2016). Further, the service of the company should also be better.
Company should learn the Chinese culture and must greet the people accordingly. The
Chinese market is one of the huge
Though, a report also explains that the Chinese food is fattier than the Singaporean food
and thus the dietary people would prefer to have Singaporean food rather than Chinese food.
People would also love to enjoy to different cuisine and it would make the restaurant more
popular. Company could also focus on the Chinese cooking. Further, if Singaporean food
would be cooked and served into Chinese style than it would also attract the Chinese people.
It explains that the product and service analysis of the Kopitiam Investment pte limited is
quite better. This diversification strategy would offer huge market to the company to grab and
generate more profit.
2.2 Customer profile and demand analysis
Further, the customer profile and demand of the customers have been evaluated to
identify that whether the Kopitiam Investment pte limited would be successful in china
market or not. The customer of the company has been evaluated and it has been found that
local Chinese people would be targeted by the company (Benz and Thomas, 2017). The

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company would focus on the Chinese people who are looking for some changes in their daily
food or looking for dietary food. It has been found that the Chinese people are looking for
some changes in their daily food. Chinese people mostly eat the frozen food and fast food
which affects their health badly. So the company should offer the fresh and authentic food.
Kopitiam Investment pte limited should focus on the local Singapore food, fresh food and the
authentic taste of the food. It would attract the Chinese people towards the restaurant of the
company.
A report explains that the Chinese food is fattier than the Singaporean food and thus
the dietary people could be focuses by the company as they would prefer to have Singaporean
food rather than Chinese food. Some people would also love to enjoy different cuisine and it
would make the restaurant more popular. Further, the demand s of the Chinese people has
been studied and it has been found that the people are looking for different cuisines but
however, they are still connected to the Chinese culture and the Chinese taste. So, if the
Singaporean food would be cooked and served into Chinese style than it would also attract
the Chinese people and their needs would be fulfilled.
The company should also serve Chinese food in its restaurant as it would attract those
people who always prefer Chinese food. The Joint Venture Company would make it easier
for the company to cook the Chinese food and serve it to the customers of the company.
2.3 Competitive situation:
Further, the competitive situation of the company has been evaluated and it has been
found that there are various restaurants which are offering the Singapore food to the Chinese
people at china market. The analysis on the china market explains that the china market is
one of the largest food markets for international food. The company’s are growing their
business rapidly in the china market (Nebojsa and Sharma, 2015). The international
department of chins explains that the international food joints are continuously opening their
stalls into the china market with the help of joint venture.
It explains that there is huge competition in the market of china for Kopitiam
Investment pte limited. It explains that the company is required to set up some competitive
advantages so that the threat from competition could be lower. It explains that the new
strategies of the company such as cooking the Singapore food in Chinese style etc would
assist the company to set competitive advantage.

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3. Environmental factors
Environmental factors of china have been evaluated further to identify the position of
the country and feasibility of Kopitiam Investment pte limited in the market. Following is the
feasibility analysis:
3.1 Host country business climate:
The business climate of china has been evaluated and it has been found that the food
industry of china is one of largest food industry. It has been found that the food industry of
china is open for all the international flavours. The straits time (2018) briefed about the
Singapore food firms in china market and explained that there is boom in Chinese food
industry. The Chinese people always have cravings for the new taste and international
flavours and thus the food industry climate is always in the favour off the companies. It also
explains that the Chinese people are always ready to pay for the quality food and new
concepts and thus the food players could generate good profit from the china market. It also
adds that Singapore is quite near to china and thus few cultural similarities are also there. It
makes it easier for the Singapore food players to set their business in china market.
The Shanghai market is the best option for the food players as there are huge
population as well as it is a tourist destination. On the other hand, the city is crowded with
middle class families who are always ready to expose and receptive of new taste and culinary
products. Various companies who have moved into Chinese market from Singapore market
are running their business effectively as well as they are also making huge profits. Though,
china market is always possessive about the quality of the food and thus the organizations
should offer good quality food to the customers (Tajudeen et al, 2017).
3.2 SWOT analysis:
SWOT analysis study has been done further on Kopitiam Investment pte limited joint
venture in china with a local firm in Shanghai. Following is the strength, weakness, threat and
opportunities of the joint venture company:
Strength:
Strong business identity
Proven track record
Weakness:
New country
New culture

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Professional management team
Expertise in crafting the thematic eatery,
Competency in managing various portfolios
Quality food vendors
Services
Revolutionary cashless dining (Kumar and
Ghodeswar, 2015)
Different taste and demands of the customers
Opportunity:
New market to capture
Customers are willing to taste the
international flavour
New technology and cooking style
New eateries
Organic dishes and healthy food
Offer delivery services
Threat:
Competition level
Potential rising price
Suppliers issues
It explains that the joint venture of the comapny is china market would have some
strength and opportunity as well as they will have to face few threats and weakness. The
company could grab the opportunities through entering into the market and makes few
changes into the operations as well as the strategies (Camilleri, 2018). Further, the weakness
could also be controlled and vanished by the company. It briefs that it would be easier for the
company to set the business into china market and generate profits.
3.3 Government constraints:
The government constraints have been discussed further and it has been evaluated that
the Chinese market is open for the international business. A company could enter into the
china market for the business. The company is just required to fulfil some legal forms and
regulations. Though, the Chinese government has set some limits for the foreign countries

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such as investment limitations etc. a foreign company could not invest more than 51% in the
venture in china (Zhang et al, 2014). Further, it also briefs that a foreign company is required
to follow the rules of Chinese government as long as they are running their business in
Chinese market. It also adds that a foreign company is required to contract with a local
company to enter into the market and thus the Kopitiam Investment pte limited would
contract of joint venture with a local firm in china with 51% share.
3.4 Laws regulations and administration practices:
Further, the legal and administrative obligation of china market has been studied to
identify the feasibility of the business. The law regulations brief that if a foreign company
wants to enter into the Chinese market then it has to accomplish some legal formalities as
well as some registrations are also required. Though, the process is not at all complicated.
The foreign company is required to submit the name of the joint venture to the registrar office
along with a letter of intent which should be signed by the partners, JV contract and AOA,
Pre approval from NDRC, Approval from some other ministries and Obtain a certificate from
MOC. It would offer a licence to the company to work into china market (Duan et al, 2015).
After licensing certain formalities such as tax authorities, technical supervision, bank
account, administration of foreign exchange, certificate form bureau of statistics etc. are also
required to be done by the company.
4. Business strategies
Further, few business strategies have been evaluated which must be followed by the
company to enter in the china market. The analysis on the business strategies are as follows:
4.1 Product positioning:
Product positioning is an important element for a business. It assists the business to
evaluate a way to communicate with the customers of the company. It evaluates the
customer’s needs, the pressure from competitors and the communication channel which are
available. Further, it ensures that a good positioning of the product could be set in the
customer’s mind. The product positioning of Kopitiam Investment pte limited has been
evaluated and it has been recognized that the company could set its position into the
customer’s mind through advertisement and the promotion in the market. It has been