M018LON: Roshanstore's Export Strategy to the UK Market Analysis

This board paper outlines an export strategy for Roshanstore, an Indian packed food company, to enter the UK market. It recommends leveraging the Indian diaspora, protectionist policies against China, and promoting Indian cuisine. The report analyzes the background, potential benefits, and challenges of entering the UK market, considering factors like Brexit, trade agreements, and economic growth. It also addresses arguments for and against the recommendations, emphasizing the importance of quality products, sustainable packaging, and competitive pricing. The implementation strategy focuses on utilizing local resources, low labor costs, and healthy food options to gain a competitive advantage and increase exports. The paper concludes that with strategic planning and quality products, Roshanstore can successfully tap into the UK market and increase its exports.

MANAGING INTERNATIONAL TRADE: BOARD PAPER
Date of Paper:
Title of Paper:
For End of Module Assessment
Synopsis of the issue
The company named as Roshanstore is located in Mohali district, Punjab region of India. The
company is a famous store for packed foods in its area. This paper aims to explore the export
strategy of the company. The company is firmly established in the market of its native court and
plans to expand its business. It tends to tap the potential of the market of UK as packed food has
high demand in European countries and the USA. The company is in the financially sound
position and there is anti-incumbency against Chinese due to the low quality of their products.
This development can be an advantage for the Roshanstore. In addition to this, the protectionism
policy adopted by the governments of developed countries will benefit India and Indian
companies (Mutize & Gossel, 2018). The recommendations are provided in the next section,
after that, the topic is researched well then, the arguments against and in favor of
recommendations are presented. After that, the implementation strategy is discussed. In the end,
a suitable conclusion is drawn.
Recommendation
a) The company should enter the market of the UK and export its products there
b) The Indian diaspora present in the UK should be supplied the taste of their native land
provide native cuisines to them.

c) The company should take the benefit of protectionism policy adopted by the USA and
developed countries against China
d) The company should promote Indian foods in the market of UK with the campaign of
incredible India
e) The business-friendly government in India under the leadership of Narendra Modi aspires to
increase exports for bridging the current account deficit (Chen et al., 2018). The business
organizations are provided export incentives by the government like less number of tariff and
non-tariff barriers. In such a situation, the company cannot remain behind.
f) The food products related to taste of the UK should be provided along with the focus on
healthy products, especially when, developed countries are grappling with the problem of
obesity. The healthy products will gain a significant part of the market because of health
awareness among citizens of UK.
Background
The company was established in the year 2000 and since then exporting packed food products to
different countries. The company wants to enter the UK market where large numbers of Indians
are residing on a temporary or permanent basis. The laissez-faire policy adopted by the European
countries will make the company big competitor of other retailers present in the market (Yakubu
et al., 2018). The company can export directly to the customers or it can hire any other agency
associated with the food industry as an intermediary. The intermediary will provide the required
platform and infrastructure to sell the products in the market of the USA. The best strategy for
the company will be to use a mixed approach and access the market, either directly or through an
intermediary agency. The exports will be increased if the quality products are supplied to the

citizens and subjects of the UK. There is demand in the market as British citizens are affluent.
They can easily access the packed food economically. They have big pockets and consume
quality products. India exports its raw materials to the European market. The potential for
processing is not considered serious. There is a need to help the sector grow with the growth of
forwarding and backward linkages (Lee & Lin, 2018).
Research on the assessment topic
Recently India improved its ease of doing the business ranking by 31 points and has reached up
to 100th position. In addition to this, after Brexit, UK is keen to sign free trade barrier with India.
Entering the market of UK will lead to access to other European markets. This will lead to
further expansion of the business. The price instability in the market regarding agricultural
products used in food industry as raw material will not have a significant impact. The
government of India has developed a plan to double the incomes of Indian farmers by 2022. For
this to happen, the company can be used as a forward linkage in supply chain management. It
will get raw material directly from farmers and process them (Pata, 2018). The Indian companies
always face lacunae in packing and processing, this is the reason exports of India are less as
compared to imports. According to international trade theory, India has the natural advantage of
natural resources and low labor wages. Thus according to international trade theory, India has
specialization in the agriculture industry which is directly related to food processing industries.
This potential benefit is exclusively available in India which the company should take advantage
of. In addition to this, it should stress packing as British citizens like the products with good
packing (Shahbaz et al., 2018).

Along with this, there is one more aspect to be considered. The WTO which regulates the
international trade promotes free trade in goods and services. India is a founding member of
WTO and has a considerable say in the matters of WTO. India is among the strong lobbying
group of BRICS which covers more than 30 % population of the world. BRICS is a regional
organization involving 5 countries namely, Brazil, Russia, India, China, and South Africa. These
countries have strong potential to tile the balance in WTO in favor of emerging and
underdeveloped countries. The BRICS is an important lobbying group which takes
underdeveloped countries along with it (Murshed, 2018). The trade among BRICS countries is
continuously increasing and there are opportunities for the UK to sign a kind of free trade
agreement with India. If this trade pact is signed there will be a plethora of opportunities for the
business organizations in the UK and other European countries.
Arguments against the recommendations
According to some arguments, the Brexit will lead to a reduction in the growth of the economy
of the UK. Along with this, there will be many other repercussions like loss of the European
market. So few political analysts recommend staying away from the country like UK (Chen &
Hu, 2018). In addition to this, the UK customers prefer standard and quality products so the
company in a country like India cannot provide them the quality products. In addition to this, the
resolve of the Indian government to double the incomes of a farmer by 2022 is viewed in
negative. Some economists predict that this increase in farm income cannot be done without
increasing the prices on agricultural produce. Thus, they predict the increase in prices of raw
material used by the food processing industry. It is believed that many countries are still facing
recession so there is need to give ample time for the market to balance itself. It is said by

economists that the world is not growing at the rate it has the potential to grow (Liu & Lee,
2018). There are many international organizations which have predicted the ailing banking sector
in India leading to less number of credit provisions and affecting the economy overall. The
economic turmoil has been witnessed in many countries. China is also shifting its growth pattern
to consumption, so it will have global repercussions as China is a major exporter in the world. In
addition to this, there are many other business aspects to be considered before expanding the
business and tapping the market of UK (Yan, 2018).
Arguments favoring the recommendations
Many economists argue that Brexit will benefit India and related countries as the UK will need
friends for free trade in the international community. This benefit should be used by the company
to further its profit aims. There are many others who consider the economy of India as the fastest
growing economy in the world. In addition to this, there are low labor wages which can lead to
economies of scale. There are many other benefits like ease of doing business, large market, and
suitable political situations. The UK can sign trade pacts with India leading to further increase in
profit for the company (Kıral & Erden, 2018). Plus, the Indian government has reduced the tariff
and non-tariff barriers which will benefit the company. There will be more supply of raw
material because of large agricultural production leading to a lowering of prices. The sustainable
packaging will entice the UK customers to buy the products if the company. Promotion of
product along with healthy food campaigns will promote the growth of the company. There
would be economies of scale and state of the art facility that will compete with the standards of
products used by British citizens. There will be supportive government and positive economic
growth. The world has come out of the financial crisis of 2010 so there is the perspective of

growth. Various international institutions like IMF, World Bank, and WTO are predicting the
faster economic growth in India. In addition to this, in the year 2019, parliament elections will be
held during which there is a chance of increased investment leading to further buoyancy in the
market (Andre et al., 2018).
Implementing recommendations
The recommendations given above must be implemented. The world is on the trajectory of
growth and the rising protectionism against China will benefit countries like India. Sustainable
packaging with quality products will definitely be liked by British citizens. There are many
competitors but the company has the advantage of specialization economy. All the raw material
needed in the processing are locally available so there can be the maximization of profit. The low
labor wages will lead to the less operational cost which can lead to low pricing of manufactured
products. This will give a competitive advantage to the company. The company will be able o
sell the products at lower rates leading to gain of significant part of the market. Healthy food
products will attract the population of the UK which is one of the many developed countries
grappling with increased obesity among children and adults. Healthy food will be available to
Indian diaspora as well. There is a need to harness the potential of the Indian diaspora. It will
also generate goodwill for the company (Yépez, 2018). The Indian diaspora has not been
considered seriously till now, but it can generate a lot of earning opportunities for the persons
and organizations of India. There are a plethora of opportunities which need to be taken
advantage of.
Conclusion

It can be concluded from the above discussion that there is potential for the company to do better
in the UK. There is a need to have strategic planning so that exports are increased, but at the
same time, operational cost is reduced. The sound campaigning and the supply of quality
products will lead to an increase in exports (Raza et al., 2017). The demand in the market is
already there. But it needs to be considered that expectations of the customers are high in the era
of globalization so there is a need to provide competitive and quality products. According to the
recent reports, the world GDP is on the trajectory of growth so there are opportunities to tap the
potential of the new market and increase the exports in long run. There are multiple benefits
which have been described above (Ahmad et al., 2018). The company needs to have a tacit
understanding of the market of UK and accordingly strive hard to gain access to its market. The
campaign of incredible India can be used as the company to promote or advertise its products.
This will generate a brand image of the company, increase the exports and build the goodwill for
the company. The company should comply with the norms of WTO and other international
institutions concerning with trade and business, but should also strive hard to increase its exports
and gain access to UK market (Uprety, 2017).

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