Professional Documents
Culture Documents
International Business Plan
International Business Plan
- BATOOL JAWAD
- IQRA FATIMA
- IFRA SHABBIR
- IQRA MEHMOOD
- MASOOMA HAIDER
TABLE OF CONTENTS
Business Introduction……………………………………………………………...02
XIAOMI Laptop………………………………………………………………......02
Economic Analysis of Pakistan……………………………………………………03
SWOT Analysis……………………………………………………………………04
PESTLE Analysis………………………………………………………………….06
Porter’s Model for XIAOMI………………………………………………………08
Hofstede Cultural Dimensions………………………………….………………….11
Human Resource Planning…………………………………………………………13
-What is HR Plan…………………………………………………………..14
-Seven steps of HR Plan……………………………………………………15
Financial Plan………………………………………………………………………17
-Income Statement…………………………………………………………18
-Balance Sheet……………………………………………………………..19
-Cash Flow Statement……………………………………………………..20
Marketing Plan…………………………………………………………………….21
-Competitive Analysis……………………………………………………..22
-Sales plan & Operations…………………………………………………..23
-Marketing Strategies………………………………………………………23
-Branding…………………………………………………………………..23
-Generation Model…………………………………………………………24
-Target Market……………………………………………………………..25
-Keys to Success……………………………………………………………25
Product & Supplier’s Information………………………………………………….26
2
In the world today everyone has a laptop. Laptops are expected. They are needed for work and
for socializing. They are so expected, people think there is something wrong or untrustworthy
with someone who does not have one. In truth, those without one can’t afford it.
―Smart-Fix‖ mission is to offer its customers the highest quality laptops. It focuses on offering
convenience and rapid service. Additionally, Smart-Fix will have the technological expertise to
assist customers in picking the product and service that best meets their needs.
XIAOMI LAPTOPS:
Introduction:
Xiaomi was founded in 2010 by the Chinese entrepreneur Lei Jun. It started out primarily as a
maker of cell phones, but now it's expanding into other consumer durable goods like smart TVs,
laptops and fitness bands. The company strives to make high quality technology available to
everyone. Xiaomi is the fifth largest smartphone manufacturer in the world with a market share
of 7.3%. In India it is the largest manufacturer with a market share of 27.3%. The company has
also made great strides in AI technology, with AI Assistant being the finalist for the SAIL
Award. The company was founded in 2018 at a value of $ 2.16 per share and a market value of $
53.9 billion.
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SWOT Analysis
Strengths: Weaknesses:
Affordable pricing Weak brand perception
Xiaomi offers laptops and other electronic devices Xiaomi is a Chinese electronics brand.
at very affordable prices. This is very important for Unfortunately, Chinese products are considered
two reasons. First, Xiaomi's budget-friendly inferior in some parts of the world, especially the
pricing allows you to compete for more budget- United States. This means that Xiaomi had a hard
friendly consumers in developed regions. Second, time entering these biased markets. In addition,
laptops can open up new markets that were Xiaomi's brand awareness is relatively weak
previously too expensive and previously untapped. overall. This is primarily viewed as a budget
For example, Xiaomi can sell millions of devices option by consumers around the world rather than
in the Asian market, particularly China and India, a leader in terms of build quality and performance.
which is not possible with luxury brands like This realization leads many consumers to reject
Apple and Samsung. Xiaomi devices despite budget constraints.
High quality products
Despite its affordability, Xiaomi has a reputation
for making high quality products. Consumers and
tech commentators alike are consistently
impressed by how much value they can get from
their Laptops. This is partly due to the powerful
specifications of each component that Xiaomi uses
on its devices. In addition, Xiaomi devices are well
organized at the assembly level.
Substantial profit margins
Most surprisingly, Xiaomi offers high quality
products at affordable prices, but can still be
profitable enough for them. As a result, Xiaomi
has made hundreds of millions of dollars in profits.
Xiaomi can appreciate the low manufacturing costs
due to its high profitability. These low
manufacturing costs may be due to low labor costs
in China and the significant economics involved in
manufacturing large numbers of devices.
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Opportunities: Threats:
High competition
New geographic markets The electronics industry has a reputation for being
very competitive. Most of the players in these
Global GDP is growing and as a result consumers markets are established brands with sufficient
are spending more and more money on electronic capital to support them. This means they can run
devices. As a result, the electronics markets are large marketing campaigns, lengthy litigation, and
growing organically. This is especially true in lots of investments in new technology. Xiaomi is a
some areas where the device was previously too relatively new electronics manufacturer, so you
expensive to even consider. Thanks to its need to be extra careful not to drive it off the
affordability, Xiaomi has a great opportunity to market. It doesn't take long for premium
enter these emerging markets such as Africa and manufacturers like Apple to offer cheaper devices,
India. This is an especially powerful opportunity which can be disastrous. Xiaomi should definitely
for Xiaomi. This is because it only takes into stay on the alert.
account competition with other budget-minded
manufacturers like Huawei and not luxury brands Poor customer service infrastructure
like Apple. Xiaomi has grown very quickly in the last few
Brick and mortar stores years and has sold millions of laptops. However,
Unlike Samsung and Apple, Xiaomi is making Xiaomi reports that there is no customer service
little effort to grow its brand through physical infrastructure in place to properly serve all
stores. Xiaomi has several "Mi. Stores" around the recently acquired customers. If you have a model-
world, but you can certainly invest in more. These wide problem with any of the Xiaomi products,
physical stores not only improve Xiaomi's offline you may have an overwhelming number of
sales channels, but also improve the company's support tickets and a lot of unhappy customers.
perception as a luxury or quality brand. It's worth
noting that much of Xiaomi's sales are currently
dominated by e-commerce.
Green branding
When it comes to branding, Xiaomi has another
growth opportunity. Xiaomi may be able to stand
out from the crowd by marketing itself as a "green
brand" or environmentally friendly brand.
Environmental awareness is growing, especially in
developed countries, and Xiaomi can potentially
save the planet and benefit from it! This is of
course a two-step process. First, Xiaomi needs to
make its manufacturing process as
environmentally friendly as possible by reducing
and managing waste and pollution. Second,
Xiaomi needs to promote this message with some
clever marketing tactics.
6
PESTLE Analysis
This detailed PESTEL analysis of Pakistan aims to explore some of the political, economic,
social, technological, environmental, and legal factors affecting Pakistan today. Pakistan is a
powerful country in South Asia. It is the 5th most populous country in the world. It is officially
known as the Islamic Republic of Pakistan.
Political factors affecting Pakistan
Pakistan is a democratic federal republic, with the Prime Minister being the head of government
and the President being the ceremonial head of state. There is a multi-party parliamentary system
in which the main political actors are the Pakistan Muslim League-N, PPP and PTI. However,
the influential role of Pakistani military institutions in Pakistani politics has been questioned by
many political analysts.
Pakistan has excellent diplomatic and trade relations with its neighboring superpower, China.
The Chinese prime minister sees the relationship between the two countries as "unbreakable and
solid" (The Economic Times, 2019). Pakistan also has good relations with the United States, but
there have been ups and downs in relations in recent years.
Economic factors affecting Pakistan
According to the World Bank quoted in Trading Economics (2020), Pakistan's GDP in 2019 was
$ 320 billion. Pakistan aims to be one of the 25 largest economies in the world by 2025 and one
of the 10 best high-income economies by 2047. It is a long way to go to meet our goals, but it is
worth noting that Pakistan has seen significant economic growth over the years.
The influx of FDI has been an important aspect of the Pakistani economy. China is the country's
largest investor. Countries like the US, UK, Japan, South Korea and Hong Kong are also
increasing their investments. If more foreign direct investment is attracted and domestic
investors spend more domestically, Pakistan should contribute to further economic development.
However, selective justice systems, the lack of a friendly business environment, and poor legal
and orderly conditions often discourage domestic investors from investing in a country (Raza,
2018).
Social factors affecting Pakistan
Pakistan is the fifth most populous country in the world. In March 2020 the total population was
around 219 million. The main religion is Islam, with a small portion of the population following
Christianity and Hinduism. The main languages are English, Urdu, Punjab, Sind, Pashtu and
Barochie (BBC, 2019).
The average life expectancy of men in Pakistan is 66 years and that of women 68 years. By
western standards, which have helped make Pakistan one of the largest domestic markets in the
world, the families are quite large. Poverty is decreasing and a stronger middle class is emerging.
The country also has an affordable and abundant workforce. Family loyalty is very important and
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There are more competitors in the industry that Xiaomi does business in. This means that they
are taking competitive action to gain status and become a market leader. This will increase
competition between existing companies in the industry.
POWER DISTANCE:
This dimension deals with the fact that not all individuals in society are the same - it represents
the cultural attitudes towards these inequalities among us. Distance from power is defined as the
extent to which weak members of a domestic institution or organization expect and accept an
unequal distribution of power.
With an intermediate value of 55, it is not possible to determine Pakistan's preference in this
dimension.
At 80 China sits in the higher rankings of PDI – i.e. a society that believes that inequalities
amongst people are acceptable. The subordinate-superior relationship tends to be polarized and
there is no defense against power abuse by superiors
INDIVIDUALISM
The fundamental problem that this aspect addresses is the degree of interdependence that society
maintains among its members. It has to do with whether people's self-image is defined by "i" or
"we". In an individualized society, people should only care for themselves and their immediate
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family. In a productive society, people belong to a "group" that looks after them in exchange for
loyalty.
Pakistan with a very low score of 14 is considered a collectivist society. This is reflected in the
close, long-term commitment to the "group" of members such as family, extended family or
extended family.
At a score of 20 China is a highly collectivist culture where people act in the interests of the
group and not necessarily of themselves. In-group considerations affect hiring and promotions
with closer in-groups (such as family) are getting preferential treatment. Employee commitment
to the organization (but not necessarily to the people in the organization) is low. Whereas
relationships with colleagues are cooperative for in-groups they are cold or even hostile to out-
groups. Personal relationships prevail over task and company.
MASCULINITY
A high score (male) in this dimension indicates that society is driven by competition,
achievement, success and that success is defined by the winner / the best person in the field. This
is a value system that starts in school and extends throughout the life of the organization.
A low dimensional score (female) means that the prevailing values of society care about others
and quality of life. A female society is a society where quality of life is a sign of success and
standing out from the crowd is not commendable. The basic problem here is to motivate people
to be the best (male) or to like what you do (female).
Pakistan scored 50 points in this dimension, which is exactly in the middle. It is therefore
difficult to say whether Pakistan prefers female masculinity.
At 66 China is a Masculine society –success oriented and driven. The need to ensure success can
be exemplified by the fact that many Chinese will sacrifice family and leisure priorities to work.
Service people (such as hairdressers) will provide services until very late at night. Leisure time is
not so important
UNCERTAINTY AVOIDANCE
The aspect of avoiding uncertainty has to do with how to deal with the fact that society can never
know the future. Should we try to control the future or just make it happen? This ambiguity
causes fear, and we have learned that different cultures deal with this fear in different ways. The
extent to which members of the culture feel threatened by vague or unknown situations and have
created beliefs or institutions to avoid them is reflected in the UAI score.
Pakistan scored 70 points in this dimension and wants to avoid uncertainty.
At 30 China has a low score on Uncertainty Avoidance. Truth may be relative though in the
immediate social circles there is concern for Truth with a capital T and rules (but not necessarily
laws) abound. None the less, adherence to laws and rules may be flexible to suit the actual
situation and pragmatism is a fact of life.
3
Human resource planning (HRP) is the continuous process of systematic planning ahead to achieve
optimum use of an organization's most valuable asset—quality employees. Human
resources planning ensure the best fit between employees and jobs while avoiding manpower shortages or
surpluses.
Those employees who are performing less at their jobs would be enrolled in development programs to
enhance their performance in order to retain employees and avoid emergency terminations or layoffs.
STEP#5—Formulating the Human Resource Action Plan
After we have forecasted the required number of right type of personnel, the next step is to plan how the
organization can obtain these people. In this step, effective strategies are developed for recruitment,
selection, training, transfers, and promotions so that the future manpower requirements can be met.
The forecasted deficit of human resources in the organization will help us in designing the appropriate
training programs for the newly recruited candidates, whereas surplus can help us identify which
employees are performing less and need to be terminated or trained accordingly.
STEP#6—Implement Human Resources Action Plan
After we’ve assessed our current human resources capacity, projected future HR demands and identified
the gaps, the next step would be to integrate our human resources plan with our organizational strategy.
Practically, we will need a dedicated budget for human resources recruiting, training or redundancies, and
we will also need management buy-in across the business. We will need cooperation and the necessary
finances in order to implement the plan and a collaborative approach from all departments to put it into
notion.
STEP#7—Monitoring, Control and Feedback
The last step in the process of human resource planning is to appraise and evaluate the whole mechanism.
At this stage, human resource planning is assessed to find whether it has been successful in the
achievement of the organizational goals or not.
The actual implementation of the plan will be carefully scrutinized to identify any gaps between expected
and actual success rates, and improve them accordingly. If the plan has not worked effectively, there will
be a need to review the human resource plan and to make the necessary changes as required for making
human resource planning more efficient and effective.
7
FINANCIAL PLAN
Key Assumptions:-
It is assumed that our private resources will be sufficient to finance any monthly cash-flow
shortage. However we would be establishing a bank relationship as soon as possible. Sales could
very well increase at a much sharper rate than assumed in these conservative projections. Sharper
sales will result in a greater need for funds in support of inventory and receivables. An over-draft
line of credit with the bank will be an excellent cushion to fall back on.
Use of Funds:-
Sources of Funds:-
We will be investing PKR 1,720,000 in Smart-fix laptop to cover start-up costs. We will
also invest an additional PKR 2,000,000 when operation takes off for a total of PKR 3,720,000.
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Financial Statements:-
Projected Income Statement:
2020 2021 2022
Revenue PKR 12,624,000.00 PKR 19,456,000.00 PKR 27,680,000.00
MARKETING PLAN
Short-term marketing strategies are those that bring will bring us a temporary boost in traffic.
Although these techniques are very important to our
over-all plan, they are only a temporary traffic source
and must not be solely relied upon. Short-term
marketing strategies include:
Purchasing Advertising
Bulletin Boards
Search Engines
Opt-in Lists
Freebies
Content
By creating and implementing a balanced marketing strategy, using both short-term and long-
term strategies, Smart-Fix will drive a steady stream of targeted traffic to our website.Using this
simple formula when creating our Internet marketing strategy and excelling at all three, we hope
to guarantee our success.
COMPETITIVE ANALYSIS:-
XIAOMI (7.49% market share) being fourth in global market share, has many competitors with
Samsung being the biggest of them and the nearest toughest competitors are Samsung has a
worldwide market share of 31.49%. Apple has a worldwide market share of 22.35%. Huawei
(including Honor) has a worldwide market share of 8.56 %.
SALES PLAN:-
When we Sales Strategy we shall follow the following steps:
Sales Success Requires Planning – we shall formulate our sales strategy and tactics to
achieve our sales success.
Analyze Our Potential – we shall step through a structured process that will prepare us
for the development of our sales strategy.
Strategize Around Strengths – the description of our sales activity will be analyzed
producing a report that reveals factors impacting our sales potential.
Develop Our Tactics – we shall receive guidance to develop a comprehensive tactical
plan to achieve our success.
Measure Our Success – we shall constantly develop key measurements that mark the
progress of financial estimates that guide our growth.
Employ An Action Plan for Success – we shall provide our sales force a clear tactical
plan that is also aligned with management’s strategic objectives.
The sales strategy of SMART-FIX is simple. The key to customer satisfaction is having the
product and services that meet the customer’s needs. A crucial part of that is to also have
knowledgeable employees to help customers quickly find what they want.
OPERATIONS:-
Locations & Facilities
SMART-FIX will operate virtually 24 hours a day 7 days a week. Although the store opening
hours will be officially 10:00 a.m. to 6:00 p.m., it is clear that due to our Internet operation the
customer support will be a non-stop one.
MARKETING STRATEGIES:-
Quality products at low prices
Chinese brands were seen as cheap and low quality but Xiaomi changes this thinking by
providing high-quality products at affordable prices. We will be importing best quality laptops
from XIAOMI and then sell them at affordable prices. It was important to do that as Indian
buyers love to save their money. Soon, this Chinese brand established an image of value for
money products. We will be importing best quality laptops from XIAOMI and then sell them at
affordable prices
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BRANDING:-
Pricing: The SMART-FIX products will be sold at reasonable and affordable price with the best
quality.
Place: SMART-FIX products will be available initially at its retail store. Soon it will discover
new opportunities for expansion.
Promotion by Social Media: SMART-FIX will leverage social media platforms beautifully to
enhance their online presence. Engineers engaged with consumers and gathered feedback to
refine the software and remove the bugs.
Promotion by Brand Promoters: SMART-FIX will actively participate in the discussion on
social media and will succeed in generating a dedicated fan base of millions of users.
Promotion by Word of Mouth: The Flash sales will create a buzz and everyone will be talking
about it. It will help SMART-FIX to gather huge popularity.
.
SOCIAL MEDIA:-
Leveraging the power of social media marketing, the Smart Fix Company didn’t invest much in
traditional advertising. The company employed 2000 people over social media and online forums
to manage its online community. Smart Fix followed a well-strategized plan to expand its online
presence:
1. Building a strong tech fan base:
Starting the company with IMPORTED
products from XIAOMI, Smart Fix will spend
money on advertising and marketing in the
beginning phase to create brand awareness.
SMART-FIX will promote its product on online
forums. It will work very hard and spend a lot of
time on forums, making comments, sending
posts and advertising..
2. Gaining the trust of the fan base:
SMART-FIXwill collect feedback from its users every week and implement it in the next
release. Some of the employees will participate in product research, development, and
test, spread, marketing and public relation and will also organize offline city gatherings.
GENERATION MODEL:-
With ensuring better productivity at an affordable price, SMART-FIX focuses on its customer
acquisition and advertising strategy. The business model of SMART-FIX includes a variety of
electronic gadgets and internet services that are innovative and attractive. Miscellaneous
additional services and products of SMART-FIX also have their fair share in helping the
company generate good revenues.
Customer reliability is one of the critical strengths of SMART-FIX. This thing still fascinates the
customer towards the brand. SMART-FIXwill provide its users with an unforgettable experience
16
which will also help them to retain their customer base. This lets the company have more
subscribers for its proprietary services and will help the company make good money.
TARGET MARKET:-
Market Segmentation
SMART-FIX will focus on five customer groups, bearing in mind that it is quite customary today
to have more than one laptop per family:
The market for laptops and their accessories is very fragmented, crowded and competitive.
Among these, there are only a few large local firms that serve the entire city of and its
surroundings. The remainder are small firms that sell from kiosks in the surrounding malls.
SMART-FIX laptops current niche in its location, variety of products and expertise in serving
the public will assure the projected sales.
We expect to take full advantage of the trends described in the Market Analysis above, and try to
penetrate the market — mainly with the younger generation, using advertisements and
demonstrations. We shall also try to lure independent small sellers to join our effort.
KEYS TO SUCCESS:-
Our company keys to success will include:
Selling unit:
Depends on how many product we will import.
Packaging Details:
Bubble wrap.
Trade assurance:
Online orders from Alibaba. Com’s built-in order services.
Pricing:
Supplier’s price for one piece product: 142,000 (includes freight cost and import cost).