global issue presentation nz honeyland manuka
TRANSCRIPT
HONEYLAND MANUKA HONEY
Mohd Nidzamuddin Bin Nor Said 2010343541
Mohamad Farid Bin Abd Rahman 2010516079
Mohd Ali Maghpur Bin Muhammad 2010146051
IntroductionSUE
- Scholl teacher- Back house- Business trip
International market
3 Main factors :1) quality 2) Supply ability3) Stability in
price
Problem face:a) Language barrier - Learn local language
in doing business in foreign
countryb) Export barrier - MAF requirementc) Logistics - Shipping cost and
method of deliver goodsd) Pricing - Currency instabilitye) Market - Local market demand
( Japan requirement )
Global Business
Global or international business was started back
to early existence of
mankind
As 20th Centuries, activities involved
international trading and
global businesses are high in volume and
rapidly growth.
International business is no
longer reserved for a
few large, multinational corporations but now even
small company starts to
venture in international .
Nowadays, many global
issues regarding the international business rose up and being
talk.
Global warming, price oil increase, natural disaster, political issues,
culture issues and instability
exchange rate.NZ Honeyland
Manuka - Small company that
involved in international
business
Global Issues
Global Warming
Increase in Oil Price
Political Issues
Instability in Exchange Rate
Natural Disaster
Culture Issues
NZ Manu
ka
Consequences Affected Sectors
Impact Industries Malaysian Company/Econom
yGlobal
Warming
1. Flora and Fauna disturbance: Decreasing in Manuka Plant growth.
2. Degradation of ecosystem.
1. Honey Farming Sector
2. Manufacturing
1. Less resources2. Less Quality
Food & Beverage
Healthcare
1. Low quality of Manuka honey
2. Low volume of Manuka Honey exported to Malaysia.
3. Increasing in NZ Manuka Honey in the market.
Price Oil
Increase
1. Transportation cost Increased.
1. Transportation Sector.2.Operation and manufacturing
1. Price of the product increase.2. Material price increase
1. Food & Beverage
2. Import & export
3. Logistic
1. Increasing in manuka Honey product price in Malaysia.
2. Consumer will prefer local honey which low in price.
3. Good prospect of exporting Malaysia honey product to the nearby countries. Reduction in transportation cost.
Natural Disaste
r
1. Damage in company facility.
2. The farm will be shut down.
3. Cut off in supply-chain. Road and transportation heavily damaged.
1. Manufacturing
2. Transportation sector
3. 3.Trading
1. Halt production
2. Short in supply.
3. Increase in material price.
1. Food & Beverage
2. 2. Logistic
1. Price of product increase
2. 2.Low stock for Manuka honey.
3. 3.Company shut down
Global Issues Analysis
Cont…Political
issue.1. The farm will be shut down.(War) 2. Economic instability.3. Tourism issue will be Affected.4. Country differences (Policies, Regulation, Ideology)
1. Tourism Sector
2. Manufacturing Sector.
3. Services Sector.
1. The numbers of
unemployed people will increase.
2. No production
of honey.3. The number
of Tourist decrease.
4. Limitation of
trading between Countries.
Food & beverage.
Import & export.
1. Difficulties in doing business between countries.
Instability
Exchange Rate
1. Instability in currency
exchange.2. High risking the
trading.
Business sector Unexpected loss.
1. All multinational business
1. Higher currency rate for new Zealand
Culture Issues
1. Language barrier.2. Cultural differences
Work nature
ServicesManufacturingRetail market.
1. Differences in understanding
1.Import & Export
Global Issue: Global Warming• Flora and Fauna disturbance: Decreasing in
Manuka Plant growth.• Degradation of ecosystem.
Consequences
• Honey Farming Sector• Manufacturing
Affected Sectors
• Less resources• Less Quality Impact
Industries
Malaysian Company/Economy
•Food & Beverage•Healthcare
•Low quality of Manuka honey•Low volume of Manuka Honey exported to Malaysia.•Increasing in NZ Manuka Honey in the market.
Global Issue: Price Oil Increase
Consequences • Transportation cost Increased.
Affected Sectors• Transportation • Sector.• 2.operation and manufacturing
Impact• The price of the product also will be increase.• 2. Material price increase
Industries• Food & Beverage• Import & export• Logistic
Malaysian Company/Economy
• Increasing in manuka Honey product price in Malaysia.
• Consumer will prefer local honey which low in price.
• Good prospect of exporting Malaysia honey product to the nearby countries. Reduction in transportation cost.
• .
Global Issue: Natural Disaster
Consequences• Damage in company facility.• The farm will be shut down.• Cut off in supply-chain. Road and
transportation heavily damaged.
Affected Sectors• Manufacturing• Transportation sector • Trading
Impact• Halt production • Short in supply.• Increase in material price.
Industries • Food & Beverage• Logistic
Malaysian Company/ Economy
• Price of product increase• Low stock for Manuka honey.• Company shut down
Global Issue: Political issue• The farm will be shut down( i.e.; war) • Economic instability• Tourism activity will be affected• Country differences (policies, regulation,
ideology)
Consequences
• Tourism Sector• Manufacturing Sector• Services Sector
Affected Sectors
• The numbers of unemployed people will increase
• No production of honey• The number of tourist decrease• Limitation of trading between countries
ImpactIndustries
Malaysian Company/Economy
- Food & beverage- Import & export
- Difficulties in doing international business- Company go down because no customer come to buy their product
Global Issue: Instability Exchange Rate
Consequences •Instability in currency exchange•High risking the trading
Affected Sectors •Business/trading/ investment sector
Impact •Unexpected loss
Industries •All multinational business
Malaysian Company/Economy
•Higher currency rate for new Zealand will make more loss for ringgit Malaysia.
Global Issue: Culture Issues
Consequences• Language barrier• Cultural differences• Work nature/ business environment
Affected Sectors•Services•Manufacturing•Retail market
Impact •Differences in understanding
Industries •Import & Export
Malaysian Company/ Economy
• Hard for multinational company to succeed at foreign country with different cultures
Discussion question:1) Imagine that you are in charge of
logistics for a small exporting business such a Honeyland. What are the difficulties you need to think about?
- Time constraint- Capacity & Frequency- Safety2) What are the specific contextual
requirements when exporting from New Zealand?
- Need to fulfill the MAF requirement. = phyto-sanitary and bio-security regulations = Inspection
3) Considering that Sue is under a significant time constraint, do you think that outsourcing the entire logistics would be a good move for Honeyland?
- Yes = outsource the entire logistics. = reliable delivery period
= documentation = less risk – expert(their field)
4) What would have been an alternative entry strategy for the Japanese market?
- Collaboration with local company (Joint Ventures)
- Licensing- Franchising5) Do you think the company should
expand or diversify?- Diversify = establish market
= new value added product= reduce cost= honey supply is not encouraging
ConclusionThe world has become an economic marketplace without
boundaries.
But at the same time, there are many global issues that can affect multinational business(i.e. global warming, price oil increase, natural disaster, political issue, instability exchange rate, culture issues.
To avoid large loss, multinational companies must know and analyze briefly the effect of those issues.
Hence, strategic option must be selected by the companies to develop and become competitive in the global market.