Business in Global Context: Weston Animal Nutrition Export Strategy

This report details an export plan for Weston Animal Nutrition, an Australian organization, aiming to export animal feed products (forage and fodder) to New Zealand. It explores various aspects of international business, including market entry strategies like direct exporting, and the advantages of this mode. The report also analyzes the benefits of a decentralized manufacturing strategy, considering factors like accessibility, security, and competition. Furthermore, it addresses HR approaches, emphasizing a proactive strategy to anticipate and solve challenges. The report evaluates the pros and cons of exporting to New Zealand, offering recommendations for services and utilizing a 2x2 matrix to analyze strategic objectives. The plan also discusses the New Zealand market's business environment, including its transparency and openness, making it a favorable destination for investment. It also provides a comprehensive overview of the export process, including research, marketing, and operational planning.

BUSINESS IN GLOBAL
CONTEXT
BUSINESS IN GLOBAL CONTEXT 0

BUSINESS IN GLOBAL CONTEXT 1
Table of Contents
Introduction...........................................................................................................................................2
Weston animal nutrition........................................................................................................................2
Forage................................................................................................................................................2
Fodder...............................................................................................................................................3
Recommendations.................................................................................................................................3
Services.............................................................................................................................................3
2*2 matrix.........................................................................................................................................3
Entry mode........................................................................................................................................4
Decentralized manufacturing strategy...............................................................................................4
Accessibility......................................................................................................................................5
Security.............................................................................................................................................5
Competition and potential for growth................................................................................................5
HR approaches..................................................................................................................................5
Proactive approach........................................................................................................................6
Pros and cons of exporting/investing.....................................................................................................6
Exporting advantages in New Zealand..............................................................................................6
Increased profits and sales.............................................................................................................7
Increase domestic competitiveness................................................................................................7
Diversification...............................................................................................................................7
Exporting disadvantages in New Zealand..........................................................................................7
Extra costs.....................................................................................................................................7
Modification of product.................................................................................................................7
Information on market...................................................................................................................8
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9

BUSINESS IN GLOBAL CONTEXT 2
Introduction
The plan for export is the guideline to develop international business. Export is an
international business that is bought by someone in another nation. Goods export needs the
involvement of authorities of custom. Exporting methods of a product include hand delivery,
mail, shipping by vessel, air shipping. This consists of information distribution by email,
email attachment, a telephone conversation. Agreements at the international level limit
business of transfer of specific information and goods like goods associated with weapons of
mass destruction, advanced telecommunications, torture, and arms and art and archaeological
artifacts. This includes performing many tasks that consist research of the market, generating
a marketing plan, market entry decision and methods of service delivery, daily planning
operations, potential expansion actions, addressing issues of export financing, insurance and
set timelines and targets (Waller, et al., 2015).
Plan of entry change from nation to nation as deals with services of export. There are
many advantages of exporting as it avoids considerable cost of developing manufacturing
actions in the host nation. Exporting support organizations to accomplish location economies
and experience curve effects. There are several drawbacks to exporting as include the high
cost of transportation and make exporting uneconomical for bulk products. One of the most
important ways to solve is to produce bulk products regionally. Exporting from the
organizations to the home base might be not appropriate it there are lower-cost locations for
producing the product that can originate abroad. The following discussion covers the plans to
export products of animal feed in New Zealand by the recommendation of exporting to the
market and the pros and cons of exporting to the market.
Weston animal nutrition
Australian organization Weston animal nutrition plans to export animal feed to New
Zealand. The industry of animal feed in Australia refers to the procedure of producing animal
feed by raw agricultural products. Animal feed is given to animals (Edmunds & Khoury,
2016). This organization sells tow products that are fodder and forage.
Forage
This is known as the material of plant-like plant stems and leaves eaten by grazing
livestock. This is known as a plant that directly eaten by animals as crop residue, pasture,
immature cereal crops, that is used to consists same plants cut for fodder and carried to
animals like silage or hay.

BUSINESS IN GLOBAL CONTEXT 3
Fodder
This is given to the animals (including plants cut and carried to them), in place of that
they forage for themselves. This consists of hay, mixed rations and oils, straw, silage,
pelleted and compressed feeds, legumes, and sprouted grains. Gains of the feed are the most
significant source of feed of animals at a global level. One of the reports stated that sheep and
cows need eight kg of grain for every one kg meat they produce. One of the most important
grains is soybean, maize. The US is known as the largest exporter of these grains. Many other
feed grains consist of oats, wheat, rice, barley, and so on. Animal feed traditional source
consists byproducts of food processing and household food scraps industries like brewing and
milling. Milling oil crops material is soy, corn, and peanuts that are the main sources of
fodder. Compound feed is fodder and blended by many raw materials and additives. These
are formulated as per the requirement of the target animal. These are manufactured by
compounders of feed like pellets, meal-type or crumbles. Ingredients used to prepare feed
grain consists of corn, sorghum, soybeans, barley, and oats. This feed consists of premixes
and can be sold lonely. This is composed of micro-ingredients like vitamins, chemical
preservatives, minerals, fermentation products, antibiotics, and ingredients. It helps the
animal to get recommended levels of vitamins and minerals (Mas-Verdú, et al., 2015).
Recommendations
Services
This organization provides a service of animal welfare that consists of certification,
auditing, label claim verification, a chain of custody verification, traceability, sustainability,
education, and training. This will support to ensure that the health and wellness of animals at
each phase of life and compliance with retailer requirements and animal welfare guidelines.
The industry of food of animals has attuned to customers and expectations of the investor.
This will support the organization to increased demand for transparency and proactively
responds to the emerging trend of animal welfare, processors and retailers handle defined
guideline by measurement and applied those (Descotes, et al., 2011). These are very
important guidelines and crucial for the wellness and health of animals at each step from birth
to slaughter.
2*2 matrix
In past decades globalization has increased organizations at large levels capable to
cross national borders and do business abroad. Many options have been provided to operate a

BUSINESS IN GLOBAL CONTEXT 4
business in many nations. Many of the frameworks are distinguish for many forms of
internationally operating businesses. Business is responsive to have a strategic objective that
is mutually exclusive for success. Weston animal nutrition will offer a standardized product
and have the goal to maximize efficiencies to reduce costs as much as possible. This
organization for doing business abroad should be centralized and supported to implement the
organization's' decision by act as a pipeline of strategies and products. This organization will
be considered as a global organization as have the potential to generate economies of scale
more upstream in the value chain and more flexible to adapt downstream activities like sales
and marketing. The majority of the strategy of the organization will be maintained at
headquarter (Ahimbisibwe, et, al., 2013).
Entry mode
Direct exporting will support Weston animal nutrition to export products and goods to
the New Zealand market. This will be the fastest mode for entry in the international business.
Direct exporting is also known as direct sales. This will support the organization to reach out
to the customers directly by increasing demand for goods and products in New Zealand. The
organization will be capable enough to supply goods to the importer of New Zealand in place
of establishing own retail presence in the overseas market. This will increase the capacity of
the organization to promoting brand and products indirectly and indirectly by importing
distributors or sales representatives. Western animal nutrition will select the foreign
representatives in the New Zealand market. The direct exporting strategy will support to taste
products in the market of New Zealand by making a bigger investment in the market
(Olavarrieta & Villena, 2014). This will support the organization to protect patents,
trademarks, goodwill, and other intangible assets.
The market of New Zealand is relatively wealthy and sophisticated in an open and
transparent business environment. In 2018 World Bank has ranked New Zealand first in the
work regarding doing business and transparency. This nation regularly ranked high regarding
measures of business integrity and honesty. The economy of New Zealand depends on
business at the international level like commodity exports and so on. In this nation, there are
many possibilities to assess the demand for services and products. The target audience can be
identified and easy to research long-term demand for the product. This nation is very
sustainable to get returns in the future (Taylor, 2013).

BUSINESS IN GLOBAL CONTEXT 5
Decentralized manufacturing strategy
The organization should adopt a decentralized manufacturing strategy as this consists
of many benefits. Decentralization will help the organization to decrease the burden of
management to make routine decisions. This will support the organization to devote the
available time for significant actions like product diversification, increase require finance,
generate new lines of production, and solve critical issues of business concern by less
important and routine can be left to supervisory and middle levels. Diversification will lead to
control and supervision. Management by a full authority can make alterations in work
assignments and recommend promotions in a position to supervise the subordinate’s actions.
Management of employees and relations of the community are more possible in the
decentralized strategy of a business. The organization should have the following
considerations to choose the location of subsidiaries (Cristea, 2011).
Accessibility
The business of Weston animal nutrition will depend on frequent delivery, so the
organization needs to consider the links of transport, specifically motorways and main roads.
The buying prices and property rent are steeper in higher density. The location of the
organization will be set to ensure that the location will be accessible by car, bus, and other
modes of transport. For employees, location is also a very crucial factor to recruit accurate
people in business by offered many jobs in the organization (Alessandria, et al., 2013).
Security
The location of the organization will increase the odds of affected by crime and can
influence premiums of insurance like additional measures of security that need to take to keep
business safe. Decisions of business depend on the information and help a business to make
an informed decision. Knowing the risk of potential criminal action support to prepare and
take adequate precautions (Magnusson, 2013).
Competition and potential for growth
Competing business is very critical for the success of any organization. This will
provide the advantage to Weston animal nutrition to identify the competitors in the area and
helps to choose the right area and offer a guarantee to expand business in a new location.
Exporting products of the organization is dependent on the demand for the product. Location
is very important for the organization to stay in the long haul with the suitability of business
requirements.

BUSINESS IN GLOBAL CONTEXT 6
HR approaches
There are many approaches to HR need to be addressed for the business of exporting.
There are many approaches form different perspectives like strategic approach, management
approach, human resource approach, commodity approach, proactive approach, reactive
approach and system approach (Vannoorenberghe, 2012).
Proactive approach
Management of human resources should be very active to anticipate problems and
challenges before they arise. This is a universal truth that prevention is more effective than
cure. This will save the organization considerable money and time in the long and short run.
There are also many importance of a proactive approach. Weston animal nutrition will
support the proactive approach and build the organization from starting by identify the
mission, values, vision, objectives, and goals. The workforce for the business in New Zealand
can be found based on the organization's work. There will be good and in-depth online
research for the workforce that is very important for the business of export of Weston animal
nutrition. The first option is online research that gives a lot of information about the
upcoming procedure of international trade. There are many sites and forums to assists the
local workforce. Higher chances of product export will be increased through the forums and
generate effective collaboration with a potential client. Awareness of the brand is also the
most important factor for the consideration of investment in the workforce and hiring a local
person in a management department will help the organization to plan a business potential
workforce. The logo of the organization is also very important to attract the workforce
through effective policies to build a career.
Pros and cons of exporting/investing
Organizations in today's time are committing to resources to venture into the business
of export. Organizations assess the advantage and disadvantages of exporting in the new
market. Western animal nutrition is planning to do the business of export in New Zealand and
will receive the order to purchase from a foreign buyer. This supports the organization to
make the deliberate move that is necessary to evaluate and assess before committing to the
resources (Liang, et al., 2012).
Exporting advantages in New Zealand
There are many reasons that organizations consider exporting quite compelling. The
following are the major advantages of exporting. Many products go through cycles known as

BUSINESS IN GLOBAL CONTEXT 7
an introduction, growth, maturity, and declining. After reaching the final stage organization
can introduce the product in the New Zealand market (Adenugba, & Dipo 2013).
Increased profits and sales
This will support the organization to sell services and goods to the market that the
organization never had before to boosts sales and increase revenues. Sales of organization
products in the New Zealand market will support Western animal nutrition to sales over the
long term. The organization will cover the development costs and increase overall
profitability.
Increase domestic competitiveness
This organization is known as a competitive organization in the domestic market of
Australia. This competitive advantage in the domestic market will help the organization to
acquire a strategy that supports them in the international arena. This organization is capable
enough to participate in the global market and gain a piece of share in the large international
market like New Zealand holds. This will give the organization a valuable idea about the
information on new technology and competitors at a foreign level (Harzing, et al., 2011).
Diversification
Selling the product to the New Zealand market will help the organization to diversify
business and spread risk. The organization will not be tied to change the business cycle of
domestic business for the New Zealand market. Capturing an international market will help
the organization to expand production and meet the foreign demand. The increased
production will support the organization to lower the cost per unit and lead to greater use of
current capacities. This organization has excess production for many reasons and probable
can sell its products in the market of New Zealand. This nation market not forced to give a
large discount.
Exporting disadvantages in New Zealand
There are also many disadvantages of exporting. This organization will also face
some problems while venturing into the international marketplace of New Zealand.
Extra costs
Exporting of welfare animal nutrition organization product will take time to develop
extra markets and up-front costs to develop new promotional material and allocation of
personnel ravel and other costs of administration to market the product that strain to measure
the financial resources (Birchall, 2013).

BUSINESS IN GLOBAL CONTEXT 8
Modification of product
The organization needs to alter its products to meet the New Zealand nation's safety
and security codes and import restrictions. Modification is very important to satisfy nations'
labeling or packaging requirements. Payments collection through many methods are available
like prepayment, open account, documentary collection, consignment, and so on are time-
consuming and complicated. The organization needs to carefully look at the financial risk that
is involved to do international transactions.
Information on market
Finding information about the foreign market is very difficult compared to domestic
markets. There is a scope of export that needs more involvement than sales at the domestic
level.
Conclusion
The following discussion covers the business of exporting in the foreign market.
Every business likes to earn more profit compared to the present. This organization likes to
expand its business. Many recommendations have been provided in the discussion like
services improvement, mode of entry, and approaches of human resource management.
Further discussion covers the exporting advantages and disadvantages in the market of New
Zealand for the welfare animal nutrition. The advantages for the organization are
diversification in the new market, increase profits and sales, and so on. There will be also
many disadvantages for the organization like extra costs, getting the market information, and
so on.

BUSINESS IN GLOBAL CONTEXT 9
References
Waller, V., Farquharson, K., & Dempsey, D. (2015). Qualitative Social Research:
Contemporary Methods For The Digital Age. London: Sage Publication.
Edmunds, S. E., & Khoury, S. J. (2016). Exports: A necessary ingredient in the growth of
small business firms. Journal of Small Business Management, 24, 54.
Mas-Verdú, F., Ribeiro-Soriano, D., & Roig-Tierno, N. (2015). Firm survival: The role of
incubators and business characteristics. Journal of Business Research, 68(4), 793-796.
Descotes, R. M., Walliser, B., Holzmüller, H., & Guo, X. (2011). Capturing institutional
home country conditions for exporting SMEs. Journal of Business Research, 64(12),
1303-1310.
Ahimbisibwe, G. M., Ntayi, J. M., & Ngoma, M. (2013). Export Market Orientation,
innovation, and performance of fruit exporting firms in Uganda. European Scientific
Journal, 9(4).
Olavarrieta, S., & Villena, M. G. (2014). Innovation and business research in Latin America:
An overview. Journal of Business Research, 67(4), 489-497.
Taylor, P. (2013). The effect of entrepreneurial orientation on the internationalization of
SMEs in developing countries. African Journal of Business Management, 17, 19-21.
Cristea, A. D. (2011). Buyer-seller relationships in international trade: Evidence from US
States' exports and business-class travel. Journal of International Economics, 84(2),
207-220.
Alessandria, G., Kaboski, J., & Midrigan, V. (2013). Trade wedges, inventories, and
international business cycles. Journal of Monetary Economics, 60(1), 1-20.
Magnusson, P., Westjohn, S. A., Semenov, A. V., Randrianasolo, A. A., & Zdravkovic, S.
(2013). The role of cultural intelligence in marketing adaptation and export
performance. Journal of International Marketing, 21(4), 44-61.
Vannoorenberghe, G. (2012). Firm-level volatility and exports. Journal of International
Economics, 86(1), 57-67.
Liang, X., Lu, X., & Wang, L. (2012). Outward internationalization of private enterprises in
China: The effect of competitive advantages and disadvantages compared to home

BUSINESS IN GLOBAL CONTEXT 10
market rivals. Journal of World Business, 47(1), 134-144.
Adenugba, A. A., & Dipo, S. O. (2013). Non-oil exports in the economic growth of Nigeria:
A study of agricultural and mineral resources. Journal of Educational and Social
Research, 3(2), 403.
Birchall, J. (2013). The potential of co-operatives during the current recession; theorizing
comparative advantage. Journal of entrepreneurial and organizational diversity, 2(1),
1-22.
Harzing, A. W., Köster, K., & Magner, U. (2011). Babel in business: The language barrier
and its solutions in the HQ-subsidiary relationship. Journal of World Business, 46(3),
279-287.