Gem &

Jewelry to
Singapore
International
Business
Management

Manuja Weerasinghe

CIMA Adv. Dip in MA

Undergraduate of University of Sri Jayewardenepura
Strategy Level Candidate- CIMA (UK)
Certificate Level Candidate- CIM (UK)
Strategy Level Candidate- CMA (SL)
Diploma in ICT
4 years Experience in Lecturing – Student Development Centre
3 years experience in Marketing – Professional Education Service
manujaweerasinghe@gmail.com
https://www.facebook.com/manuja.weerasinghe
 Table of Contents

1. PEST Analysis of the Singapore ............................................................................ 3

2. Marketing Vision and Mission of the business of Gem and Jewellery to

Singapore ....................................................................................................................... 8

3. Product Description ................................................................................................ 9

4. SWOT Analysis of the business of Gem and Jewellery to Singapore.................. 14

5. Marketing Mix of the business of Gem and Jewellery to Singapore.................... 17

6. Human Resource Strategy for the business of Gem and Jewellery to Singapore. 20

7. Market Entry Strategy for the business of Gem and Jewellery to Singapore. ...... 24

8. Risk Assessment of the Singapore........................................................................ 25

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 1. PEST ANALYSIS OF THE SINGAPORE
Singapore is generally recognized as having one of the greatest business environments
in the world. It is one of the world's most competitive and most profitable business
environments in the world.

There are more than 7,000 Multi-National Corporations in Singapore nowadays. Here
we are exploring the PEST factors of Singapore.

Political Environment

Singapore is an enterprise friendly country. Singapore government stepped several

organizations to serving the business in a very efficient way. The regulation structure
is as follows,

1) Ministry of Trade and Industry (MTI)

TheMinistry of Trade and Industryhas its vision to make Singapore a leading

global city of talent, enterprise and innovation. Its mission is to promote economic
development and create jobs, so as to realize greater standards of living for all. It was
tasked with anticipating problems ahead, finding opportunities for growth,
rationalizing existing policies and giving broad instructions for the economy.

SPRING Singapore (Standards, Productivity and Innovation Board) is the enterprise

development agency for growing innovative companies and fostering a competitive
SME sector. SPRING works with partners to help enterprises in financing,
capabilities and management development, technology and innovation, and entree to
markets.
It has many methods to motivate entrepreneurship and supporting the Small and
Medium Enterprise (SME). These are two available financial incentive schemes,

i) Business Angels Scheme (BAS) - where they will offer innovative Singapore-
based new companies a matching dollar for every dollar invested by pre-approved
angel groups, up to $1.5 million.
ii) Young Entrepreneurs Scheme for Startups (YES! Startups) - where they will
provide youths with grants of up to $50,000 to start their innovative business.
SPRING also offers business leadership and capability development where a number

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of training courses are directed to improve leadership and business management
skills.

2) Ministry of Finance (MOF)

The key controlling statutes under MOF are the Companies Act, Business
Registration Act, Currency Act and Accountants Act. The emphasis of the regulatory
policy is on development, rather than regulate. MOF aims to collaborate with trade
experts to create Singapore a world-class financial and business hub. The main
approach in helping the business in the Singapore is building aConducive Business
Environment by help growth of businesses and nurture an entrepreneurial
environment.

3) Government E-Business Portal

In an effort to promote transparency, the Singapore government has setup GeBIZ

(Government E-Business Portal) who is the Singapore government’s one-stop e-
procurement portal. All the public sector's invitations for quotations and tenders are
posted on GeBIZ. Suppliers can search for government procurement opportunities,
download tender documents, and submit their bids online.

4) Deregulation & liberalization

Singapore has deregulated several markets, e.g. the electricity and telecommunication.
The government no more monopolized these markets, but it is open for competition
among the industry players. Even since 1989 the government of Singapore started
eliminating restrictions on the sale of telecom consumer goods to make businesses
more competitive. From this we can see the competitive telecommunication markets
nowadays, which benefit to the end consumer and the business as well.

Economic Environment

The Singapore economy is an example of a vibrant free-market economy that is

developing at a rapid pace.The per-capita income of the country is the high. The
business sector has been supported and strengthened by a corruption-free
environment, an educated and motivated workforce, and well-established legal and
financial business framework. In recent years, the Singapore government has invested

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heavily in diversifying the economy. This has led to growth in the tourism industry,
the pharmaceutical industry with a particular focus on biotechnology, financial
services, business consultation services, education, multimedia, retail and leisure, and
the medical technology industry.

1. Exchange Rates
Currency exchange rate is about US$1.00 to S$1.25 range nowadays. Also currency
exchange rate is about S$1.00 to LKR104.54 range nowadays. Especially the high
numbers of skilled workers from Malaysia has contributed to Singapore’s GDP
growth but on the other hand remarking loss in foreign exchange. On the other hand,
construction and heavy industries in Singapore are over dependent on foreign workers
which in one hand has become a threat to the social identity and safety.

2. Monetary and Fiscal Policies

The success of Singapore's fiscal policy over the years lies in the government’s
prudent expenditure patterns and conductive taxation policies that have
complemented monetary policy in promoting sustained and non-inflationary
economic growth. Singapore's tax policies, although providing the main source of
funding for the government, seek to enhance its economic competitiveness and attract
foreign investments to Singapore.

Under the severe global economy crisis, Singapore government has justified
withdrawal from its past reserves to fund the Jobs Credit Scheme and Special Risk-
Sharing Initiative to ensure that the Resilience Package will stimulate the business
sector.

3. International Trade

International Enterprise (IE)of Singapore is the lead agency under the Ministryof
Trade and Industry spearheading the development of Singapore's externaleconomic
wing. Its mission is to promote the overseas growth of Singapore-based enterprises
and international trade. At the same time, IE works toposition Singapore as a base for
foreign businesses to expand into the region in partnership with Singapore-based
companies.The IE’s Enterprise Group manages and develops a range of broad-
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basedservices for Singapore-based companies wanting to export
internationalizedgoods.

In 2007, Singapore was ranked the 14th largest trading nation in theworld, amounting
to total of $846.6 billion of external trade, with Malaysiaremained as the biggest trade
partner, followed by EU. The Port of Singapore is the world busiest port in term of
total shipping tonnage. It is also the world busiest container port and transshipment
port. The Port of Singapore is not only a mere economic boon but an economic
necessity as it is lack of natural resources and land.

Authority of Singapore was established with the mission to develop Singaporeas a

premier global hub port and international maritime center. The Singapore Tourism
Board aims to triple tourism receipts to $30 billion and double visitor arrivals to 17
million visitors by 2015. It is working closely with international investors to develop
new world-class attractions attract strategic business and leisure events to Singapore.

Social Environment
Singapore is an eastern country and they are following the traditional family values,
but the younger generation has started to familiarize to western culture and
values.Most of the Singapore peoples are working very hard to retain and fulfill their
materialism desire. Because of that it positively affects to the increase the nation
productivities and the business sectors can expect a higher purchasing power from the
customers.
1. Demographic Profile

The population of the Singapore about 4.8 million and it consist 72.2% of Chinese,
13.6 Malays and 8.8 of Indians. Singapore peoples dislike blue collar works like
construction and other works in hard environment. They are thinking these works are
hard and dirty. Because of that especially young generations are unwelcome these
blue collar works. This created vacancies for foreign workers to fulfill blue collar
vacancies. The business sector import cheaper labor from neighboring countries and
saving the cost. There for they can reinvest for further expansion.

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 2. Education

Singapore regulated compulsory education for primary school age children. If anyone
breaches that, it treats as a criminal offence. Because of that Singapore children have
regular attendance. English is the primary language in the Singapore education. They
have good command of English and it does generate additional advantage for
attracting foreign investment to the country. And also Chinese language proficiency
and ethics help to attract the investment from China.

According to the latest statistics shows 96% of literacy rate and 895 of secondary or
higher qualification holder in Singapore. Because of that it is the driving force for the
Singapore government to promote as knowledge economy which is less labour
incentive but more talent and intellectual are on demand.

Technological Environment

Singapore is more advanced in technologically and it is ranked as the third most wired
nation. In a Singapore 99% of peoples connected with the broadband network.
Singapore ranked the top 10 globally for network readiness. And also in Singapore
entrepreneurs can easily tap on the technological infrastructure to assist them in
business start-ups. When investigating about the technological environment there are
no hesitations to state. All the modern state-of-the-art technologies are there.

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 2. MARKETING VISION AND MISSION OF THE BUSINESS
OF GEM AND JEWELLERY TO SINGAPORE

Vision Statement

To be the best provider of precious stones and innovative customer services all over
the World.

Mission Statement

To provide high quality and a wide range of precious stones with attractive price in
Singapore and through these to develop a caring, creative and customized customer
services in an international network.

Corporate Values

Practicality – Advocating a pragmatic and realistic way of doing business

Innovation – Continuous learning and endeavor for change as well as innovations

Integration – Build a harmonious corporation both internally and externally

Excellence – Demonstrate full commitment, quest for excellence and continuous

improvement, endeavor to be the best.

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 3. PRODUCT DESCRIPTION

Gem and jewellery products are not day to day products. People consider those
products as fashionable items and a way of collecting wealth. Singapore is a
developed country and well known place for tourism. Most of the people visit the
Singapore to spend their vacations. As well as most probably big merchants are
visiting Singapore for trading purposes. Therefore we are targeting that customer
groups because that segment is usually trying to collect fashionable items when they
are on foreign country visits.

As a leading jewellery manufacturing company we mainly focus on value additioning

fashionable items, manufacturing excellence, quality and design of the product so
that we can capture that special market that has been established in Singapore. Our
target is to be the pioneer in precision-cut genuine gemstones and make jewellery.
We will place our manufacturing plant in Sri Lanka and total process of
manufacturing will be continued in Sri Lanka. As well as we will sell our products not
only in Singapore but also in Sri Lanka to gain the economies of scale in production.

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Product Variety

We cannot offer Gem in that market. Because the customer group of Singapore is not
a fixed market. It consists of visiting people and merchants. They will not buy
expensive gems in a foreign country with the risk of its genuine quality. Therefore we
offer value added, unique and balanced selection of genuine gemstone jewellery. It is
a kind of strategy to sell the gem as well as jewellery. The assortment ranges from
impressive yet affordable precious and coloured gems.

Our wide varieties of materials are available in an impressive assortment of classical

gemstone cuts and colours, inspirational, contemporary, and innovative cuts and a rich
selection of trend inspired colours.

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Jewellery Description package

Our jewellery item package contains 5 jewellery items. They are,

1) Emotional Rings – It includes over 300 gemstones including

round emeralds.

2) Emotional watches - This is our latest product innovation with

embedded gemstones which gives higher flashing light
performance to the watch.

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 3) Ladies Sapphire Ring

This includes Stunning Love-Knot style Ring contains two interlocking rows of
channel-set gorgeous Sapphires. One elegant row contains 16 full cut gemstones.

4) Gent's Sapphire and Diamond Ring

The Ring is 14kt Yellow Gold with an enclosed Solid-Back. The Centre stone is a
Genuine Blue Sapphire with Bezel-Set. The Mounting is heavy and weighs 6.5
Grams.

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 5) Ladies Culture Gem Strand Necklace

Necklace contains 4 Gem Strands, double-knotted. Gems will match well and exhibit
beautiful pink tones with magnificent lustre. Gems are beautiful with tons of sparkle
and brilliance. The clasp is smooth, stylish, and makes a great enhancement to the
necklace.

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 4. SWOT ANALYSIS OF THE BUSINESS OF GEM AND
JEWELLERY TO SINGAPORE

Strengths

We will place our manufacturing plant in Sri Lanka and total process of
manufacturing will be continued in Sri Lanka. Therefore the strengths are described in
a Sri Lankan context.

 Sri Lanka has a magnificent image for the Sri Lankan Gems because all are
accepting our gems as bests in the world market.
 Availability of raw materials especially gems and semi-precious stones in Sri
Lanka help to continuous production.
 Net Worth of the total size of the gems and jewellery sector (both domestic
and exports) is about Rs. 415,000 core. So we can say that it is financially
very strong sector.
 Highly skilled, qualified and motivated employee in Sri Lanka for the sector
of making jewellery with use of gemstones.
 High level Information Technology helps to maintain the communication
channels properly.
 Sri Lankan gold smiths’ Special designing skills are highly recognizing over
the world.
 In Sri Lanka we have easily trainable manpower for every sections of the
business.

Weaknesses

We will place our manufacturing plant in Sri Lanka and total process of
manufacturing will be continued in Sri Lanka.Therefore the weaknesses are described
in a Sri Lankan context

 There may be conflicts of interest between organized & unorganized players.

 As the major raw material is highly expensive the storage and security costs,
insurance costs will be caused to high inventory carrying costs.
 Technology is less improved compared to China and Thailand’s companies.

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  High rate of utility charges and tax regulations
 Not easy entry in the business
 Not getting benefits from training Institutes.
 Not utilization of International Markets.
 Having no any affiliation with International Gold Organizations.
 Law & Order situations.
 Limited dissemination of information related to modern production methods
 Inadequate training facilities

Opportunities

The Singapore Jewellery & Gem Fair 2014 will be held from 23 to 26 October 2014
at Marina Bay Sands, Singapore. The 4-day premiere international jewellery show
will be showcasing more than 300 renowned exhibitors from 28 countries across the
globe showcasing over US $1 billion worth of jewellery.

This is identified as Singapore’s Largest Fine Jewellery Fair, is the sister event to the
world’s largest jewellery event - the September Hong Kong Jewellery & Gem Fair. It
is now recognized as one of the top three trade events of its kind in Asia.

Last year, the Singapore Jewellery & Gem Fair featured 283 exhibitors from 28
countries and attracted a total of 8,739 visitors from over 70 countries and regions,
making it the biggest-scale regional show of its kind. This year, the fair is expecting
more than 300 notable exhibitors from 30 countries and regions. At present, exhibitors
who have confirmed their participation are from countries and regions such
as Belgium, Germany, HongKong, Israel, Italy, Japan, Switzerland, Taiwan, Thailand,
USA and Singapore.

Supplying jewellery and gemstones to some of the world's largest reputable

international brands as well as jewellery chain stores, these exhibitors will present
prized diamonds and pearls, precious stones and gems, rare and exquisite jewellery
pieces, exceptional timepieces and other dazzling collectibles to visitors. The show
will see esteemed jewellery and collectors sourcing for the most coveted jewellery
and gemstones in the world.

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Apart from those opportunities there are another opportunities also,

 New market segments in Singapore.

 We can enter to the gem and jewellery fair with our products.
 Introduce our jewellery and gem business to a large, captive pool of eager
buyers and decision makers that represent the cream of your target audience.
 The demand for gem is growing in Asian countries.
 Industry moving from a phase of consolidation.
 Expansion possibilities in lifestyle and luxury products like watches, rings,
necklaces and jewellery because of increasing disposable income of people.
 Globalization and free trade.
 Competition at international level
 Access to new marketing information and skills.
 New and unexplored markets in Singapore
 Free and transparent trade.
 Reduced role of State of the Singapore
 Facilities and incentives provided by the Board of Investment of Sri Lanka
(BOI) to foreign and local investors.

Threats

 International Competition:-China, India and Thailand's entry in small

diamond jewellery.
 Increase in the price of Gold & Diamonds.
 Other local competitors. According to the data 97% jewellery sales are by
family jewellery
 Threat from producing nation like S.A. & Russia.
 Quality standards.
 Unmatched customer Demand/ satisfaction

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 5. MARKETING MIX OF THE BUSINESS OF GEM AND
JEWELLERY TO SINGAPORE

Our marketing strategy views the world’s consumers as similar in their tastes and
preferences are consistent with the mass production of a standardized output. Initially
we have to identify the gaps in Singapore market and develop our marketing mix
including product attributes, distribution strategy, communication strategy and pricing
strategy.

Product attributes.

We are offering jewellery which is made by using gemstones. According to our

business development plan we are going to offer a package worth of five jewellery
items. As a leading jewellery manufacturing company we mainly focus on value
additioning fashionable items, manufacturing excellence, quality and design. Our
wide varieties of materials are available in an impressive assortment of classical
gemstone cuts and colours, inspirational, contemporary, and innovative cuts and a rich
selection of trend inspired colours.

Singapore is an eastern country and they are following the traditional family values,
but the younger generation has started to familiarize to western culture and values. As
well as there are many temporal ethnic groups and different nations because
Singapore is a well-known “Leisure Place” of the world “Business Trading Place for
merchants”. Therefore we will consider about the social structure and religions of the
different people.
Singapore is a developed country. Therefore the people of the Singapore and the
people who visit the Singapore are perceive high quality and westernized designs of
jewellery

Distribution Strategy

Under this strategy we are exploring how to place and delivering our gemstone
jewellery to the targeted customers. We will choose concentrated system which has
few outlets in the places where our targeted customers are located in. Therefore we
will open the outlets in Air ports, Shopping malls, Beach side areas, discount stores
and the special places that visitors are always crowded. As we are chose concentrated

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system we will use short channel length that has very fewer number of intermediaries.
We always try to use no intermediaries. As a developed country Singapore has
developed Information Technology system. Although Sri Lanka is a developing
country, our Information Technology system is well developed. So we can manage
the short channel length easily.
As well as we will maintain high channel exclusivity that is difficult for outsiders to
access. When we are maintaining short channel length with high channel exclusivity,
we will always use expertise people, core-competencies and skilled full people to
manage the channel. By considering above factors we will invest in establishing our
own channel.

Communication Strategy

To communicate the attributes of the gemstone jewellery to prospective customers we

can use direct marketing, sales promotion, Advertising and public relations.

Direct Marketing
Under direct marketing we can use network marketing, mobile marketing and social
media marketing. We will get the e-mail addresses of visitors who are visiting the
Singapore and the selected young and middle age people of Singapore. Then we can
send our products’ catalogues to those people. As well as we can inform about our
outlets and special discount stores to the people via SMSs.
As a company who are going to take a new entrance to the Singapore market we can
use Facebook fan pages, twitter accounts and other social media to convey our
promotion campaigns. Here we can have a collaborative relationship with the fan
pages of popular universities of Singapore, Air ticketing firms and special trade fare
societies.

Sales Promotion
Under sale promotion we will use discount offerings and promotional gifts to attract
our customer groups to our gemstone jewellery. Here we can use attractive discounts
to foreigners. As well as we can use key tags, mugs, diaries, desk calenders and
statutes which representing Sri Lankan culture and Sri Lankan symbols as
promotional gifts.

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Advertising

Singapore is a developed country. Most of the people visit the Singapore to spend
their vacations. As well as most probably big merchants are visiting Singapore for
trading purposes. Therefore we are targeting that customer groups because that
segment is usually trying to collect fashionable items when they are on foreign
country visits and rich Singapore people. It means our target group is not a fixed one.
Therefore we cannot use bill boards, newspaper advertisements and TV commercials.
We can use advertisements on airport notice boards, airport digital screens and the
catalogues which give to air passengers.

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Public Relations

The gems in Sri Lanka have a magnificent image in all over the world. The rankings
of Sri Lankan gems are always scored tops. Therefore we can attract the journalists
who are writing to the airport catalogues and international tourism magazines. They
will provide positive comments on our new entrance to the Singapore market.

Pricing Strategy

Our manufacturing plant is located in Sri Lanka. As well as we will sell our products
in Singapore and in Sri Lanka also. Because we need to achieve the economies of
scale in production. Therefore as organization which sells products in both Singapore
and Sri Lanka we have to maintain price discrimination. To maintain price
discrimination we must be able to keep these two national markets separately.

There are elastic demand for the gem and jewellery in Sri Lanka. As well as inelastic
demand in Singapore. Therefore in Sri Lanka we will maintain a lower price to
achieve an advantage of elastic demand. As well as in Singapore we will maintain a
higher price to achieve an advantage of inelastic demand.

6. HUMAN RESOURCE STRATEGY FOR THE BUSINESS OF

GEM AND JEWELLERY TO SINGAPORE
The human resource factor is the most valuable and most important factor in every
organization. This is because the each and every work within the company is
performed by the human resource. The Sri Lankan company or Singapore branch,
human resource factor is the most important factor. We are entering into Singapore
market as a new company therefore without a best workforce we cannot face to the
competition coming from gem and jewelry business in Singapore effectively.

What is the human resource management?

Human resource management has close link with the company strategies. If company
can maintain the quality, development, character and productivity of the human
resource of the company in an effective way, the company can achieve the primary
objectives of reducing the cost of value creation and adding the value by giving better
service to the customers.
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Strategies of HRM are complex in the domestic context. But it is more complex in the
international context. It is become more complex because of the Cultural difference,
language difference, Labour market conditions differences, legal system difference,
economic system difference between two countries.

Main HRM activities

1. Staffing

Staffing is known as selection of employees for particular jobs. The company

should have to maintain their position, culture, behavior patterns, norms and
values in the global market. In order to maintain that the company should have to
select people whose ideas, perception, thinking pattern and behavior should be
matched with the company culture, norms and values.

According to our view we select the ethnocentric staffing policy from

ethnocentric, polycentric and geocentric staffing policy. Ethnocentric staffing
policy is known as the key management staff are recruited from the home country
(Sri Lanka) rather than selecting from the host country (Singapore). The reasons
for selecting ethnocentric staff policy as follow.

Maintain the uniqueness of communication within the global network.

The parent company is situated in Sri Lanka. The key management of the branch
of Singapore should have to communicate with the key management of the parent
company. In order to reduce the complexity of communication network, as a
company we select the key management from the Sri Lanka.

Recruiting of middle level managers and lower level management

The middle level management and lower level management are consisting with
the Singapore people. The reason is to select Singapore people for those
positions, they are the people who directly deal with the customers and they know
very well about the customer background, perceptions of the customers, political,
legal, economic, social and cultural situation within the country.

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Training

Most of the expatriate managers are success in their mother land but they have failed
to perform effectively in other country. According to past researches, the main
reasons for are inability of a manager’s spouse and manager’s own to adjust to foreign
environment

Because of those reasons, company should have to give better training for the
expatriate managers. As a Sri Lankan company, when we send managers to
Singapore, they have been met with the better training.

Cultural training

Cultural training means, the expatriates should have better knowledge about culture of
Singapore. Therefore the company arranges 2 weeks tour to Singapore to get the idea
of the social and cultural situation in Singapore and another 1 week of period is
allocated to identify the working context of the Singapore companies and we arrange
the workshop to the expatriates with the professional people from the various
companies in the Singapore. They talk about the working pattern, inter personal
communication, working environment.

Language training

In Singapore the main language is the English. But 72% of the population in
Singapore consists with Chinese people. Therefore the expatriates should have
knowledge about English and Chinese language both. The company arranges 1
month language session for expatriates.

Practical training

Company should facilitate to the expatriates to develop the good network maintain the
good relationship with those expatriates and also provide facility to maintain the
family relationships otherwise no one can survive isolated in the unknown country.

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Expatriate benefits

Base salary

The expatriate’s salary is normally equal to the salary that he got from the Sri
Lanka. It can be given in Sri Lankan rupee.

Foreign Service premium

The service of the expatriates gave to the company retain outside the home
country. We give 30% of the basic salary as the Foreign Service premium.

Allowances

Normally there are 4 types of allowance for the expatriate people. They are
hardship allowances, housing allowances, cost of living expenses and
education allowances. A hardship allowance has been given to the expatriates
to being in outside country without the family members. We give Rs. 10000 as
a hardship allowance. Housing allowances is given as a housing benefit. The
rent of the house which the expatriate is living in the Singapore has paid by
the company.

Benefits

As special benefits the company gives to those expatriates are as follow.

- They have been provided air tickets to come and going back to
Singapore within 4 months period for 1 week of vacation.
- Once a year they have been provided full package with air tickets
for the all family members to go to one country for the 1 week of
tour.

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 7. MARKET ENTRY STRATEGY FOR THE BUSINESS OF
GEM AND JEWELLERY TO SINGAPORE.
In the process of designing the business development plan to enter the foreign market
we have to identify,

 Which foreign markets to enter.

 When to enter them.
 In which scale.

According to the selected topic we have targeted Singapore to sell gem and jewellery
after consider the relevant SWOT and PEST analysis. Singapore is a developed nation
as well as a well-known country for tourism. According to the rules and regulations
implemented by Ministry of Finance and Standards, Productivity and Innovation
Board in Singapore there is a favorable situation for foreign businesses. This will
create long run profit potential. Singapore has attractive economic and political
factors to attract foreign business players. As well as the tourist who visit the
Singapore have enough purchasing power. That’s why we have selected the business
of gem and jewellery to Singapore.

The Singapore Jewellery & Gem Fair 2014 will be held from 23 to 26 October 2014
at Marina Bay Sands, Singapore. The 4-day premiere international jewellery show
will be showcasing more than 300 renowned exhibitors from 28 countries across the
globe showcasing over US $1 billion worth of jewellery. Therefore we will enter to
the Singapore market in the month of October 2014.

We are targeting some selected placed in Singapore. Therefore we cannot use large
scale business strategy. As well as in a developed country like Singapore we cannot
play with other competitors with the small scale business strategy. Therefor we are
going to explore our package of gem and jewellery products in a medium scale
business strategy.

Apart from above mentioned decisions, we have to choose the entry mode to enter to
the market of Singapore. So we have investigated the modes of exporting, turn-key
projects, licensing, franchising, establishing joint ventures with a firm of Singapore
setting up a new wholly owned subsidiary in Singapore. After the investigation we
have selected to setting up a new wholly owned subsidiary in Singapore. Because As

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a subsidiary of Sri Lankan company we can gain the positive image for our package
of gem and jewellery products. We are technically well aware about the technology of
the production. As well as we have the Sri Lankan gems as our one of core
competencies. The management of this business will be handled by Sri Lankans so
that we can easily build up the relationship with them.

8. RISK ASSESSMENT OF THE SINGAPORE

Country Risk Rating- Rating: A1

Business Climate Risk Rating- Rating: A1

 Economy dependent on external demand

In Singapore, tourism is the main income of the country. Therefore if future

day tourists are not prefer to visit to Singapore then there will be a big fall in
sales.

 Shortage of labour

As a developed country Singapore is always producing labor skills for top

level and second level management. There is a shortage in operational and
functional level employees.

 Aged population

The proportion of the aged population is representing higher part of the total
population. It means in the future after the completion of this generation there
will be huge youth population who has no enough experiences.

 Latent social tensions in a context of growing inequality and rise in long-term

unemployment among the less skilled

As earlier said, Singapore is always producing skilled labors. As well as that

skilled labors are working in top positions in the country. As a developed

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 country there are no big amounts of job positions. This will lend to make
unemployment among the less skilled labor.

 Growth rate of the country is downward sloping.

2008 2009 2010 2011 2012

Growth Rate (%) 1.7 -0.8 14.8 5.2 1.3

 There is a low to moderate threat of terrorism in Singapore. While attacks are

rare, they could target public locations like those often visited by expats and
tourists. The Singapore Government currently takes significant measures to
prevent terrorism within the country.

 International Competition:-China, India and Thailand's entry in small

diamond jewellery.
 Increase in the price of Gold & Diamonds.
 Other local competitors. According to the data 97% jewellery sales are by
family jewellery.
 Threat from producing nation like S.A. & Russia.
 Quality standards.
 Unmatched customer Demand/ satisfaction

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