Professional Documents
Culture Documents
Business Plan MA'S
Business Plan MA'S
Business Plan MA'S
Assessment No Assessment 1
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Entrepreneurship in the global market place Individual Assessment
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Executive Summary
In this report as discuss about the market expansion of the Ma’s Topical Food Processing
(private) Ltd to Australia. Ma’s going have a joint venture with the Coles supermarket
Australia. In the Introduction ma’s has given introduction about the company and SWOT
analysis of the company. Then the reasons for the expansion. And then we have conducted a
PESTEL analysis for the both countries to identify the gap in the market. And we have given
the market strategy for Australian market. In the report we have gone throw a Competitor
analysis for Australian market. Then this report explains the business proposition in global
market place. And next it explains the operation of the proposed business. How the business
going to operate in Australia. Next Part is giving the marketing plan of the proposed business
and lastly it shows the financial plan of the business.
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1.0 Introduction
The founders of Ma’s Mario and Suzette De Alwis start the company as a micro industry in
dambulla in 1986. Now it has become the leading food manufacturer in Sri Lanka. Our
farmer’s network is widely spread in Dmbulla, Minuwangoda, Matale and Iyakkachchi.
Earlier we had only 5 products and now company has over 350 products in local and export
retail markets. Our company has our own organic farm in Matele. This business concept
developed because earlier Mario and Suzette De Alwis had small hotel dambulla. They had
very unique problem that most of their friends and guest from around the world doesn’t want
visit Sri Lanka due to the situation in here. But they want to taste Sri Lankan curries. Many of
them doesn’t have access to the fresh spices. Mr. and Mrs. De Alwis gave the answer to that
problem starting processed food industry by using fresh spices from the farmers in the region
(Ma's Kitchen, 2019).
SWOT Analysis
Strengths
Ma’s Kitchen has a very strong direct farmer’s supply network with facilities in Dambulla,
Miwangoda, Matale and Iyakkachchi. Especially they have an organic farm in Matale. We
have lot of certifications such as ISO 14000, ISO 2200, OHASA 18000 and HACCP. And for
the organic products they have Japanese organic certification (JAS), Certification from USA
agriculture Department (USDA) and EU organic certification.
Weakness
This company doesn’t use lot of advertising campaigns. Customers of the ma’s Products
doesn’t aware about their certifications.
Opportunities
Now most of local and international customers are moving to organic concept therefore its
huge opportunity to the business. Also migration percentage has increased .because of that
Sri Lankan community will increase in particular country and demand for the Sri Lankan
spices will increase.
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Threads
The major threat would be there is huge competition in the local market. And there is huge
threat for new enterers in the local market.
And in here we have mention why Ma’s kitchen expand their market to Australia
Australia has world 13th largest economy. According to World Bank economic growth rate of
Australia is 2% in 2017 and the GDP is 1.323 trillion USD (World Bank, 2017). Current
Australian company tax rate is 30%, if company’s turnover is less than $25 million they can
apply to 27.5% rate. Vehicles, machinery, mineral fuels, pharmaceuticals, medical apparatus.
Precious metals, plastics, furniture, electrical and equipment’s are main imports of Australia.
They imports 21% good and services from their GDP (World Bank, 2017). On the other
hand, iron ore, gold, coal, natural gas, beef, wheat, financial services, educational services,
and copper are some of the top exports of Australia.
Sri Lanka
When considering Sri Lanka it has an inflation rate of 2.90 which including the area of
65,610 sq.km. Sri Lanka has got economic growth of 3.2% which considering a slow-moving
rate. Almost when comes up to price rate considering to USD it has a lesser value of 176 to
180. It means the economy is very difficult to the stable when considering to other Asian
countries. The author seems that population is also a factor when comes up to the economy.
From a population of 21.7 million people, the unemployment rate is 4.2. Which is a higher
number. Sri Lanka has got rs.666, 817 per capita incomes for a year. Sri Lanka has a
developing economy with the help of, government. (govermnet, 2019)
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2.2 Political
Australia
In Australia Queen Elizabeth II is the head of the state and she’s the leader of constitutional
monarchy. The prime minister is the head of the government. The queen of Australia is just a
figurehead. The governors represent her at the state level while the governor-general
represents her at the federal level. Australia is member of Commonwealth of Nations,
OECD, G20 and World trade Organization (Frue, 2019). Australia is maintaining a very
close relationship with United States of America. Australia frequently criticized by the
neighbor countries including New Zealand and the UN because of their action for the
refugees and for not upholding human rights, including the rights of indigenous people.
Australia safe and stable political environment. There is good climate for investors. Now
Austria is the one of top rated countries in the region because of their recent economic policy
changes. According to their trade and investment commission website they provide a safe and
secure business environment for international investors. They offer,
Australia’s business environment that is ranked 15th out of 190 economies for ease of
doing business
A robust regulatory system noted for its stable institutional frameworks and strong
finance and banking regulations
Competitive rates for office space and the remuneration of professionals
A quality of life that is rated the seventh highest in the world.
(Australian Trade and Investment Commission, 2019)
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Sri Lanka
When considering Sri Lankan political factors every government do a proper job after 30
years of common war that finished in 2009. Sri Lanka's economy developed at a normal 5.8
percent amid the time of 2010-2017, mirroring a harmony profit and a decided strategy push
towards remaking and development. (bank, 2016)
Recently the present routine came to control three-and-a-half-years back. Individuals casted a
ballot in the expectation of understanding the advancement that was guaranteed, specifically
limiting defilement, better monetary improvement, setting up peace, better media
opportunity, maintaining majority rule government. The most compelling single word they
utilized amid their race crusade was Yahapalanaya (Good Governance). Most of the nation
needed a Yahapalanaya and subsequently they came to control. (ft, 2018) However due to
recent political instability country has gone from upwards to downwards rapidly and that will
hit for Sri Lanka's economy and lives of customary individuals except if earnest measures are
gone out on a limb.
2.3 Legal
Australia
Australian Government and state and region government exists to ensure customers, and the
business, just as to advance reasonable exchanging and rivalry. These laws administer how
organizations associate with their providers, clients and different organizations. They
additionally layout the privileges of organizations and entrepreneurs when clashes emerge.
They divided their legal frame work into 5 main laws. Those are
Competition law
In this law describes that Australia has a national statutory system to guarantee that
exchanging is reasonable for organizations and shoppers. This system is managed and
authorized by the Australian Competition and Consumer Commission (ACCC).
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Consumer laws
the Australian Consumer Law (ACL) gives guidelines on out of line contract terms, purchaser
rights ensures, item wellbeing laws, spontaneous buyer understandings, lay-by
understandings and punishments, and different zones.
Environmental legislations
The Australian Government, state and domain governments, and nearby governments
together regulate natural security. Australian Government enactment administers the
procedure of evaluation and endorsement of national natural and social concerns.
Privacy laws
Australia has national protection enactment, administered by the Office of the Australian
Information Commissioner (OAIC) that controls how organizations can gather, access, and
store individual data and correspondence. There are explicit necessities on the administration
of delicate data, for example, therapeutic records.
Australian government is mainly focus on above mention 4 factors when it comes legal things
in Australia. (goverment, 2019)
Sri Lanka
When considering into Sri Lankan legal factors European control of low is now Sri Lanka
began a few years after 1505 by Lourenco de Almeida. After that With the Dutch gaining
control of Sri Lanka, primarily in the coastal regions, Roman-Dutch law gained a presence in
the country. (Tambimuttu, 2009)
Sri Lanka has got varies lows for various parties who are adjourned to help their civil life’s.
Such as employment low, consumer protection low, environmental regulations, industry
specific lows and competitive regulations. With these kind of regulations will help to
maintain the equality of the country. Governments also always help to encourage people to
work according to the legal factors. By referring to above factors author can see there is
favorable legal legislation are there to encourage business as well as to civil citizen to
maintain their life balance. (Law, 2019)
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Australia
In Australia Known as a standout amongst the most inviting nations on the planet, Australia
is glad to be a multicultural country. Right now, practically 50% of its populace comprises of
outsiders or Australians with a parent conceived in another nation, bringing about in excess
of 260 unique dialects inside its domain. Other than the official language, English, usually to
hear around the nation: Mandarin, Italian, Arabic, Cantonese and Greek. (center, 2019)
When it comes to Australia it not differ with the western people.it is more same with the
western people and the culture is more same to Africans. Because most Australians are more
value their origin. In the case of that most of their history are into Australian aborigines. It is
true they not forgot about their history but they grow with collecting new cultural norms and
protecting old ones as well (birdsell, 1953). (Refer appendix 5)
Sri Lanka
Sri Lanka is a country of history of migration, exchange, and frontier attack has prompted the
development of an assortment of ethnic gatherings, each with its own language and religious
customs. Other than the lion's share Sinhala Buddhists, the country additionally incorporates
Sri Lankan Tamils, Tamils of ongoing Indian birthplace, Muslims, semi tribal Veddas, and
Burghers, relatives of intermarriages between Sri Lankans and Europeans. In spite of the fact
that the individuals from these gatherings share numerous social practices, convictions, and
qualities, ethnic contrasts have turned out to be particularly set apart since the country's
freedom in 1948. (culture, 2019)
Sri Lanka has a rich masterful convention, with particular imaginative structures that
incorporate music, move, and the visual expressions. Sri Lankan culture is universally
connected with cricket, a particular food, an indigenous comprehensive medication practice,
religious iconography. For example, the Buddhist banner, and fares, tea, cinnamon, and
gemstones, and these are powerfully with the travel industry. Sri Lanka has longstanding ties
with the Indian subcontinent that can be followed back to ancient times. With these things sri
Lanka has very bright history and they more into their historic culture by using those things
to their day to day life style. (Refer appendix 5)
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2.5 Technological
Australia
Australia is known for embracing new innovations at a quicker rate than most different
nations. It entered the new thousand years with one of the most astounding rates of web
access on the planet. Researchers and analysts from Australia have been in charge of many
significant leaps forward and innovative advancements around the globe. Australia flaunts
sixteen Nobel Prize beneficiaries not awful for a nation with a populace of about 24.6
million. This will help to the new innovations of the Australia. (student, 2019)
The development of innovation in Australia has had a few significant outcomes. It has
expanded open doors for advancement and configuration, helped different enterprises make
enhancements in their effectively existing foundations, and improved the nature of their
products. The innovation development has likewise improved Australia's economy, as it is
currently one of the main nations on the planet for bringing in and sending out merchandise.
Sri Lanka
IT in Sri Lanka alludes to the business procedure re-appropriating information process. And it
will also help of redistributing, programming advancement, IT Services and IT training in Sri
Lanka. Sri Lanka is positioned among the best 50 re-appropriating goals by AT Kearney, and
Colombo is positioned among "Top 20 Emerging Cities" by Global Services Magazine. The
fare income of this industry developed from USD 213 million out of 2007 to an expected
USD 720 million out of 2013.
By referring to above factors author seems that Sri Lanka is developing country when it
comes to IT side. Because government also helping by free internet facilities, and also
helping by building e- study centers in each city. This can see the help of government that for
the technology factor of Sri Lanka.
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2.6 Environmental
Australia
When it comes to Australian environmental factors Natural elements incorporate the climate
and environmental change. Changes in temperature can effect on numerous businesses
including cultivating, the travel industry and protection. With real atmosphere changes
happening because of a worldwide temperature alteration and with more noteworthy. This
outside factor is turning into a huge issue for firms to consider. The developing want to
ensure the earth is affecting numerous ventures. (essays, 2019)
For number of years, the lives and feeling of social character of Indigenous Australians were
inseparably connected to the land, its structures, widely varied vegetation. Today, the
character of all Australians is molded by an association with that regular habitat by protecting
their natural resource day by day. Australia is a standout amongst the most urbanized and
coast-staying populaces on the planet. More than 80 percent of Australians live inside 100
kilometers of the coast. These things will encourage living with nature to bring their lifestyle
healthier (goverment, 2019).
Sri Lanka
Managers or the chiefs of business associations around the Sri Lanka will in general exercise
various vital examination instruments to dissect their organizations and business condition.
They more into their CSR works base on reducing the environmental pollution. Most of sri
Lankan organizations are now focus on to get the minimum standers that providing by the
government. Because most of people are now focus on environmental products other than
early 2000. (thilakasiri, 2018)
This will shoe a significant improvement on the environmental factors. Other than this
business try to maintain their ethical and sustainable when do their business.in case of that
author seems that with regulations and the human habits Sri will have better environment in
the near future.
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We are going to use investment entry as our market entry strategy (refer appendix 2). We are
going to have a joint venture with the Coles supper market in Australia. Coles is leading
super market chain in Australia. Over 100 years they have proving healthy and quality
products for affordable price (Coles , 2019). We are manufacturing the spices in the Sri
Lanka and Coles going to the packaging on their plants. Marketing of the product also done
by the Coles supermarket (refer appendix 3).
There are some legal documents that need before running a business in Australia. here some
documents we’ll need certification of incorporation, business plan, non-disclosure agreement,
insurance policy, contract documents, patent or copyright registration, operation agreement
and business license. We can’t start a business legally without an Australian business number
(ABN). It’s 11 digit number that unique to your business. After taking a ABN we can register
our business name, can ordering goods and services or sending invoices, claim taxes such as
good and service tax. And also we need state and federal business permits and license start a
business. Fire department permit, advertisement permit, country permit, sales tax permit and
health department permit (Anon., 2019).
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By analyzing the Australian curry powder industry we have found four major players of the
industry such as Keen’s, Herbie’s, the source of bulk foods, Clive of India. We have done our
competitor analysis by considering the product range, Category and Price.
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Product Range
The source
Extensive Herbie’s of bulk
foods
Limited
Keen’s
Ma’s
Clive of
Kitchen
India
And the strategic group mapping is done by considering the product range and the category.
By analyzing the strategic group mapping the main competitor to the Ma’s would be the
source of bulk food.
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Ma’s tropical food (private) Ltd is a well-established food processing company in Sri Lanka
for over 35 years. And the Coles supermarket (private) Ltd is a well-established supermarket
chain in Australia. Coles have been in the market for over 100 years. Our company and the
Coles signed a joint venture to operate in Australia. We have selected Australia because as
mention in the PESTEL analysis Australia is safe to place to business, they have a very stable
political system, they have a strong and stable currency, government support to the
international investors and the main reason would be growth Sri Lankan community in
Australia.
As shown in the PESTEL analysis there is a huge demand for the spices because a lot of Sri
Lankan lives in Australia and there are very less organic spices available in Australia. This
product fills the need for organic spices. Nowadays a lot of customers moving to chemical
free products. From this expand they can easily access to the organic spices. These are the
objectives of this expansion as followed,
Our product is unique from the other spices available in the Coles because we are selling
organic products and most of the other products are non-organic products. And we are using
the best quality ingredients to the production. Our packaging is very unique from
competitors. We are using eco-friendly packaging for the products. Certifications for the
product another attribute make us unique from the competitor’s. Eco-friendly and organic
these two concepts will attract the customers to our products. Not like local customers
international customers more consider about the eco-friendly product. The main production is
doing in Sri Lanka and the packaging doing in Australia due to the low packaging cost.
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Ma's has been the main nourishment producer in Sri Lanka for more than 25 years. The
organization's primary manufacturing plant is situated in Dambulla where all items are
delivered except for coconut milk which is prepared in the organization's more up to date
industrial facility in Minuwangoda. The head office is situated in Colombo (Ma's Kitchen,
2019). With this established embellishment as ma's kitchen, we would like to have more
diversified and more developed production. in order to do that as ma's kitchen, we supposed
to go overseas and do the selling to catch up the bigger market and gain more sale to the
organization. As an organization senior managerial team, we have been coming up to a
decision that we going for partnership with another organization in order to do the selling part
in other countries
After selecting the country, the next hardest thing is to choose a better sales partner to do sell
our products. When it comes to choosing as a managerial team, we have been spoken to
several organizations but they didn't agree to our terms and condition except for one
supermarket. Its name was Coles which has a big brand name and more sales outlets in
Australia. There are three main conditions that have considered by us to Coles comes up to
the agreement. Those conditions are
Form above mention concerns they have been agreed to the first two points but not for the
last one. They said that if they do the marketing and the packaging both it will get higher
prices. As the management team we come up to the agreement and the first place of outlet
will be Dandenong. Because they said they get higher sales in dandelion for spices. We
agreed that decision because our research results show that there are more Sri Lankans are
lives in that city.
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However, in order to supply products to coals supermarket, we have to have better staff to do
the things in our storage area and we are paying salary to agent in the Coles. The discussion
that had with the management team we recruit staff for the export process and import process
as follows.
Operation
Manger
Employees Employees
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Product
We are going to introduce three organic spices into the Australian market. Ma’s kitchen
manufacturing the spices in Sri Lanka and export it Australia as bulk and then Cole’s
supermarket doing the packaging in Australia.
Price
We are going to use the economic pricing strategy as our pricing strategy. Economic pricing
strategy mostly used for retail food business and groceries shop where their marketing and
production cost kept minimum.
Place
We have chosen the Dandenong close supermarket market which is located in Melbourne.
The reason, why we have selected the Dandenong, is most of the Sri Lankan’s live in that
city, around 6.2% of the population of the city (Community Profile, 2019).(Refer appendix 4)
Promotion
We are going to promote our self in the weekly catalogue of Coles supermarket. Giving 2%
present discount to the customers. Coles promote our throw their online shop and they have
put some cutouts outside of the supermarket as well as a small notice on the shelf which
describes the about the product and quality of it, the advantage of the product and about the
recycle packaging
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ASSETS
Non Current Assets
Plant and Machinery -OLD 1,350,000
Plant and Machinery -NEW 2,700,000
4,050,000
Current Assets
Inventories 1,800,000
Trade and Other Receivables 1,300,000
Cash and Cash Equivalents 933,513
4,033,513
TOTAL ASSETS 8,083,513
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6.5 Notes
Note 1
Note 2
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NOTE 5
DEPRECIATION
Entrepreneurship in the global market place
Machinery Purchases
New -Cost 3,000,000.00
Individual Assessment
Depreciation -year 300,000.00
MONTH 25,000.00
NOTE 5
LOANS 2020 CAPITAL REPAYMENT BALANCE INTEREST
5 Year 4,000,000 JAN 4,000,000 66,667 3,933,333 50,000
1 Year 800,000 FEB 3,933,333 66,667 3,866,667 49,167
month 66,666.67 MAR 3,866,667 66,667 3,800,000 48,333
AUD 533.33 CAPITAL APR 3,800,000 66,667 3,733,333 47,500
MAY 3,733,333 66,667 3,666,667 46,667
INTEREST 15% JUNE 3,666,667 66,667 3,600,000 45,833
JULY 3,600,000 66,667 3,533,333 45,000
AUGU 3,533,333 66,667 3,466,667 44,167
SEP 3,466,667 66,667 3,400,000 43,333
OCT 3,400,000 66,667 3,333,333 42,500
NOV 3,333,333 66,667 3,266,667 41,667
DE 3,266,667 66,667 3,200,000 40,833
800,000 545,000
2021
JAN 3,200,000 66,667 3,133,333 40,000
FEB 3,133,333 66,667 3,066,667 39,167
MAR 3,066,667 66,667 3,000,000 38,333
APR 3,000,000 66,667 2,933,333 37,500
MAY 2,933,333 66,667 2,866,667 36,667
JUNE 2,866,667 66,667 2,800,000 35,833
JULY 2,800,000 66,667 2,733,333 35,000
AUGU 2,733,333 66,667 2,666,667 34,167
SEP 2,666,667 66,667 2,600,000 33,333
OCT 2,600,000 66,667 2,533,333 32,500
NOV 2,533,333 66,667 2,466,667 31,667
DE 2,466,667 66,667 2,400,000 30,833
800,000 425,000
2022
JAN 2,400,000 66,667 2,333,333 30,000
FEB 2,333,333 66,667 2,266,667 29,167
MAR 2,266,667 66,667 2,200,000 28,333
APR 2,200,000 66,667 2,133,333 27,500
MAY 2,133,333 66,667 2,066,667 26,667
JUNE 2,066,667 66,667 2,000,000 25,833
JULY 2,000,000 66,667 1,933,333 25,000
AUGU 1,933,333 66,667 1,866,667 24,167
SEP 1,866,667 66,667 1,800,000 23,333
OCT 1,800,000 66,667 1,733,333 22,500
NOV 1,733,333 66,667 1,666,667 21,667
DE 1,666,667 66,667 1,600,000 20,833
800,000 305,000
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7.0 Conclusion
In this report, there is a brief introduction of Ma’s Topical food processing (private) Ltd and
SWOT analysis of the company. Maximized the profitability of Ma’s kitchen, to expand the
market share of the Ma’s kitchen and to spread out Sri Lankan curry powder’s tasted all
around the world are the reasons why they're expanding their market to Australia. PESTEL
analysis analyze the market gap of the proposed market. Market entry strategy how the ma’s
kitchen going enter into the Australian market by signing a joint venture is Close
supermarket. The close supermarket is a leading supermarket chain in Australia. Mainly ma’s
has four competitors from them only one is a direct competitor to the ma’s kitchen. And then
it explains the business proposition in the global marketplace. In the operation of the
proposed business explain how Ma’s kitchen operates in Australia. And in the market plan
express about the target group and 4 Ps. Lastly the fiancé plan of the business.
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8.0 Bibliography
Australian Trade and Investment Commission, 2019. Business - Austrade. [Online] Available
at: https://www.austrade.gov.au/international/invest/why-australia/business [Accessed 28
March 2019].
birdsell, j., 1953. environmental social foctores of australia. the americal naturalist, p.171.
Community Profile, 2019. Greater Dandenog City of Opportunity. [Online] Available at:
https://www.communityprofile.com.au/greaterdandenong/population/birthplace#!bar-
chart;i=2 [Accessed 20 May 2019].
Frue, K., 2019. PEST Analysis of Australia: A Brief Look into Politics, Economy, Society and
Technology. [Online] Available at: https://pestleanalysis.com/pest-analysis-of-australia/
[Accessed 28 March 2019].
ft, d., 2018. Present political setup and economic development. colombo: Daily ft.
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Ma's Kitchen, 2019. Our Story. [Online] Available at: http://mas.kitchen/our-story [Accessed
5 May 2019].
Tambimuttu, A.V., 2009. Sri Lanka: Legal Research and Legal System. Globalex , pp.2-4.
The source of bulk foods , 2019. The source of bulk foods. [Online] Available at:
https://thesourcebulkfoods.com.au/ [Accessed 20 May 2019].
thilakasiri, T., 2018. Importance of Business Environment Analysis. colombo: Daily News.
World Bank, 2017. Country Profile | World Development Indicators. [Online] Available at:
https://databank.worldbank.org/data/views/reports/reportwidget.aspx?Report_Name=Country
Profile&Id=b450fd57&tbar=y&dd=y&inf=n&zm=n&country=AUS [Accessed March 28
2018].
9.0 Appendix
9.1 Appendix 1
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9.2 Appendix 2
(Choudhary, 2016)
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9.3 Appendix 3
Exporting
(Joint venture with Coles Supermarket)
Packaging in Australia
9.4 Appendix 4
This chart shows the number of people who have migrated to this city from
different Countries. 6.2% Sri Lankan’s live in dandenong city.
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9.5 Appendix 5
(Anon., 2019)
Above draft shows the scores for Sri Lanka and Australia in Hofstede dimensions.
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