International Business Report: South Indian Foods Limited in Malaysia

This business report analyzes the potential for South Indian Foods Limited (SIFL) to expand its operations into Malaysia. The report begins with an executive summary and introduction, outlining the rationale for market selection and employing the Ansoff Matrix Model to assess growth strategies. It then delves into a detailed PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors influencing SIFL's business in Malaysia. Furthermore, the report utilizes Porter's Five Forces Model and a SWOT analysis to evaluate the competitive landscape, identifying strengths, weaknesses, opportunities, and threats. It explores suitable market entry modes, communication strategies, and promotional mix options to effectively reach potential customers. Finally, the report concludes by proposing key performance indicators (KPIs) to measure the effectiveness of the business plan and overall market entry.

Running head: BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Business Report on South Indian Foods Limited
Name of the Student:
Name of the University:
Author Note:

1BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
EXECUTIVE SUMMARY
The primary aim of this paper is to design an international business report plan for the
company named as South Indian Foods Limited concerning the country of Malaysia. In this
connection, the study analyses the rationale of the market according to the MCTs of Ansoff
Matrix Model. Further, the study investigates the PESTEL factors of Malaysia that may
create influence in the business procedures of SIFL. Moreover, the report also examines the
Porters Five Forces Model and SWOT analysis that helps in the examination of the potential
strengths and weaknesses the company has in the market of Malaysia. Furthermore, the study
examines the market entry mode for the concerned industry and the effective communication
process to communicate with the customers. The report also critically focuses on reviewing
the promotional mix strategies which would help the company to make itself aware in the
eyes of peer customers and market. Finally, the report ends with analysing the possible
increase in the effectiveness with the help of key performance indicators for the concerned
business as per the report planned.

2BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Table of Contents
Introduction................................................................................................................................3
The rationale of Market Selection..............................................................................................3
Ansoff Matrix Model.............................................................................................................3
PESTEL Analysis.......................................................................................................................5
Porters Five Forces Model...................................................................................................11
SWOT Analysis of the food industry in Malaysia...............................................................13
Market Entry Mode..................................................................................................................14
Communication with potential customers................................................................................16
Announcing presence in the market.........................................................................................17
Promotional Mix..................................................................................................................17
Key Performance Indicators through the communication ideas..........................................20
Conclusion................................................................................................................................20
References................................................................................................................................21

3BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Introduction
The given report is based on the company South Indian Foods Limited in
consideration with its business set up in the country Malaysia (Salim and Padfield 2017). To
investigate the same, the paper focuses on analysing the several micros and macro
environmental factors of the Malaysian business market that would create a significant
influence on the future of the concerned company. The report is structured to understand the
entry mode of the company to the demand for Malaysia and suggests the possible ways of
communicating with peer customers.
The rationale of Market Selection
As opined by Tietenberg and Lewis (2016), the idea of market penetration to a new
international based country is generated because of the urge to achieve growth in the current
business conditions in a global nature. In this connection, the report tends to suggest the
Ansoff Matrix Model to the company of SIFL in context to investigate the market of the
Malaysian food industry.
Ansoff Matrix Model
As stated by Presley, Meade and Sarkis (2016), Ansoff Matrix Model is a strategic
tool that imparts a framework for the management of a business entity to develop strategical
plans and processes for future benefits. In this connection, the four different growth strategies
for working organisation of SIFL concerning the country of Malaysia. The same is explained
as below.
 Market Development – It will critically help SIFL to analyse the strategy and mode
to enter the new market.

4BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
 Product and Development – SIFL will be to develop and modify its products and
services according to the market structure of Malaysia where the firm has decided to
expand itself.
 Market Penetration – After analysing the mode of entry to the market and strategies
to develop the product according to the taste and preference of Malaysia, the model
helps the company to penetrate the depth of the same. This would encourage SIFL to
increase the sales volume of its products and services.
 Diversification – This strategy of Ansoff model will help SIFL to investigate the
need to diversify from its core products and services. Thus, the concerned company
can effectively shift to the market of Malaysia with the idea of selling new products
with its current base of customers and acquisition.

5BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Figure 1: Showing Ansoff Matrix Model
(Source: By Author)
PESTEL Analysis
As stated by Moutinho and Phillips (2018), PESTEL analysis is a business tool that
helps in analysing the macro-environmental factors that impact the organisational working
plans and procedures.
Political
As analysed in the below diagram, it is examined that the political stability of
Malaysia which has fallen adversely in the year of 2016, has gradually increased after that in
2017 and at present is expected to increase at a growing rate. This becomes an opportunity
for the SIFL to enter the Malaysian market.
MARKET
PENETRATION
MARKET
DEVELOPMENT
PRODUCT
DEVELOPMENT
DIVERSIFICATION
CURRENT PRODUCTS NEW PRODUCTS
CURRENT
MARKET
NEW MARKET

6BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Figure 2: Political stability of Malaysia
(Source: Based on Von Vorys 2015)
Economic
The economic growth of Malaysia has recorded to grow significantly in the year of
2017. Studies show that the economic growth of Malaysia was at its peak point in the year of
2014. However, the same has decreased in the fiscal year 2015 and 2016. Studies also show
that the economic growth of Malaysia increased recognisable in the fiscal year of 2017. The
same is illustrated in the below diagram.

7BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Figure 3: Economic growth of Malaysia
(Source: Based on Lee and Ng 2015)
Social
As stated by Goodin and Le Grand (2018), the social condition of the middle-class
people in Malaysia in increasing and newly wealthy people are emerging in the society of
Malaysia. Studies even show that the literacy rate of Malaysia is growing significantly since
last three chronicle stages of the year. The same is illustrated in the given below diagram.

8BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Figure 4: Literacy rate of Malaysia in chronicle order
(Source: Based on Islam and Asadullah 2018)
Technological
The Ministry of Science regulates the technical factors of Malaysia, Technology as
well as innovation (Ainin et al. 2015). This leads the technology sector of Malaysia to be
powerfully effective and efficient. Studies show that the technological exports of Malaysia
have been examined to be growing in a record-breaking manner since the fiscal year of 2012.
The same is illustrated with the help of the given diagram.

9BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Figure 5: Showing technological export in Malaysia
(Source: Based on Rasiah, Crinis and Lee 2015)
Environmental
Researches show that the natural environment of Malaysia consists of biotas and
geologies approach that sustains the natural environment of Malaysia. As opined by Andrew,
Ismail and Djama (2018), Malaysia is renowned as a country of the megadiverse country
consisting of a bio-diversified range of flora as well as fauna that are found in different
regions of the concerned nation. Studies showed that the agricultural land of Malaysia is
increasing with passing years that proves the environmental stability of the same. The
statistical data on agricultural land in Malaysia is shown below.

10BUSINESS REPORT ON SOUTH INDIAN FOODS LIMITED
Figure 6: Showing agricultural land owned by Malaysia
(Source: Based on Sulong and Taha 2016)
Legal
Studies show that the legal considerations in the country of Malaysia are examined to
be strict and ordered according to its viable rules and regulations (Crane and Matten 2016). It
was also analysed that the legal factors of the country have improved in the past few years.
This statement can be proved by stating that the trade openness in the country has developed
in the fiscal year of 2017 because of the laws and orders of the concerned nation. The same is
shown in the diagram given below.

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Figure 7: Showing Trade openness in Malaysia
(Source: Based on Sohag et al. 2015)
Porters Five Forces Model
As opined by Barney (2015), Porter’s Five Forces Model is that strategical tool of
business that helps it to analyse the potential strengths and weaknesses the business entity has
in its working environment. In this connection, the same is explained in terms with the
country of Malaysia concerning the SIFL.
Suppliers Bargaining Power
The suppliers of the Malaysian market is considered to indulge all the maximum
sources of inputs for a food concerned would need. It helps the business in its scope for sales
of goods and services the company deals with. Therefore, the study tends to state that the
bargaining power of the suppliers is not that strong because SIFL in consideration to expand
its business in Malaysia will have several options to choose from multiple ranges of
suppliers.