Business Plan Report: Sheng Siong's Expansion Strategy in Australia

This business plan report evaluates the expansion strategy of Sheng Siong, a Singapore-based supermarket chain, into the Australian market. The report analyzes the company's decision to franchise in Australia, considering the country's developed economy, favorable franchising environment, and high household consumption. The study examines the nature of the venture, highlighting the advantages of franchising for market expansion with lower risks. It references the Franchising Code of Conduct in Australia and the significant presence of franchise businesses in the country. The report emphasizes the potential for Sheng Siong to thrive in Australia, leveraging its established brand recognition. The analysis includes references to relevant academic sources and market data to support its conclusions.

Running Head: BUSINESS PLAN
BUSINESS PLAN
NAME OF THE STUDENT
NAME OF THE UNIVERSITY
AUTHOR NOTE

1Business Plan
Executive Summary
The study is based on the evaluation of the business plan. The company has been taken as
the Sheng Siong and the country has been decided to open up the expanding venture is Australia.
Sheng Siong is already an established brand in Singapore. It is the chain of supermarkets and the
study will further evaluate whether Australia will be the right choice for the expansion plan and
how the franchise business works there.

2Business Plan
Introduction
The business plan is based on the company Sheng Siong (Luo, 2019), which is
established in Australia. It is the supermarket chains and is one of the largest under its brand
name. They approximately have 54 stores and has an employment human force of around 2324
and more. However they are originally based in Singapore and therefore, want to expand their
options and in order to generate more sales and revenues and diversifying the business and in
order to reduce cost and acquire new talent, the company is looking forward to start their new
destined venture.
Australia As The Target Country
Australia being the country with the well-developed economy. The net adjusted per capita
income is nearby $33138. There are many resources like ore, gold, iron as well as the
agricultural products gets exported by the country. The Australian franchising are dealt with the
Franchising code of conduct. There are around more than 79000 franchise companies that are
successfully running in the country and out of which nearly 28% of them are from the
international companies. Therefore Australia is a great country that ensures that there are perfect
business opportunities for the foreign businesses. Almost 60% of the Australian GDP is
comprised of the household consumption (Supermarket market share, 2020). The economic
benefit of the supermarket does not pertinent to the revenues and the generation of the
employment opportunities. However, the value that the supermarket adds up lies in the servicing
industry of the entire supply chain (Teng et al., 2019).

3Business Plan
Nature of the venture
The nature of the Sheng Siong startup in Australia is franchise. However, it is the safe
option for the expansion of their already existing Singapore super market empire. Since whoever
wants to expand their market shares with lowest risks and in a low-cost way then franchising is
one of the best option (Watson et al., 2019). It is one of the popular method for the startup of the
business, especially if the start-up is in the competitive market. The franchisor is the original
name of the company that already exists and which let its name or in another word they sell their
names and let the other company or franchisee to sell their products under their trademark. One
of the biggest advantages of the franchisee business is that they get an established name of the
brand. Australia being the developed country, which is full of opportunities can enable the Sheng
Siong to flourish well. Since it is one of the settled brand in the other country. Therefore it can
definitely have the opportunity to flourish well in Australia (Yakimova, Owens & Sydow, 2019).

4Business Plan
References
Watson, A., Dada, O., Wright, O., & Perrigot, R. (2019). Entrepreneurial orientation rhetoric in
franchise organizations: The impact of national culture. Entrepreneurship Theory and
Practice, 43(4), 751-772.
Yakimova, R., Owens, M., & Sydow, J. (2019). Formal control influence on franchisee trust and
brand-supportive behavior within franchise networks. Industrial Marketing
Management, 76, 123-135.
Luo, M. (2019). Redefining risk in prospect theory: how goal framing and efficacy difference
interact to promote elderly Singaporeans’ influenza vaccination (Doctoral dissertation).
Teng, P., Montesclaros, J. M. L., Hulme, R., & Powell, A. (2019). The Evolving Singapore
Agrifood Ecosystem.
Supermarket market share. (2020). Retrieved 22 January 2020, from
https://www.abc.net.au/news/2019-05-03/supermarket-market-share-roy-morgan-single-
source/11073926
(2020). Retrieved 22 January 2020, from
https://www.trade.gov/topmarkets/pdf/Franchising_Australia.pdf