International Business Project

December 2010

International Business Collaboration Project

On “Hemp Cultivation”

Group Members:
Paulius Paškevičius, Lithuania
(che.pashka@gmail.com)
Mariyam Najeeb, Pakistan
(mariyam.khan120@live.com)
Ryan Sweetser, USA
(trsweets@uncg.edu)
Bryan Davis, USA
(bcdavis4@uncg.edu)

Submitted to:
Mr. Salman Hafeez
Lecturer – DMS

Department of Management Sciences

The Islamia University of Bahawalpur, Pakistan

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Table of Contents
1. Acknowledgement...................................................................................3
2. Executive Summary................................................................................4
3. Product/Service.......................................................................................5
4. Target Market.........................................................................................5
5. Production Site.......................................................................................5
6. Entry Mode.............................................................................................5
7. Investment Structure...............................................................................6
8. Payment Arrangements...........................................................................6
9. Marketing................................................................................................6
10.Additonal Finanacing Sources.................................................................6
11.Staffing....................................................................................................7
12. Likely challanges....................................................................................7
13.My experience.........................................................................................8

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Acknowlegement:
I take immense pleasure in thanking Mr. Salman Hafeez; Assistant Professor, The Islamia
University of Bahawalpur, for having permitted me to carry out this project work.

Without his encouragement and co-operation this project would not have been possible.

Words are inadequate in offering my thanks to the group members, Paulius Paškevičius,
Ryan Sweetser and Bryan Davis for their cooperation in carrying out this project.

Regards,
Mariyam Najeeb

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Executive Summary:
It was an immense plaesure workong with international students from Lithuania and USA.
The project on which me and my memebers worked on is based on „The Cultivation of
Hemp“.
Hemp is a multi-purpose herb which can be used in different sectors of production.
We worked on this idea because this herb can be produced easily and can be later processed
in varierty of textile products such as fabric, apparel netc
This herb can be further used to produce complex products such as paper and bio-fuel. This
herb will be produced in Pakistan and will be finanaced by the American investors.

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1. Product/Service:
Our project idea is to start cultivating hemp crop, which could be later processed
into textile-textile products: clothing, handbags, apparel. After further success we
could start producing much more complex products from the hemp such as paper or
bio fuel as we grow bigger but the main priority is focused on textile because it has
biggest demand. Because hemp is most versatile plant, the range of potential
products is very wide.

2. Target Market:
Our primary market would be mainly Asia, more specifically countries alongside
Pakistan so transportation and distribution costs would be not so high. Our
distribution points would be our self established textile stores, mall shops. Our
textile products is not requiring to be made of very specific rare material but on the
other hand it is made in high quality standards so it would be mostly suited for
lower-middle class. Product price would be economically oriented.

3. Production site:
Our production site would be located in Pakistan because the labour costs there are
not very high, and the workplace there hemp is grown would be suited in the north
of Pakistan. It is more advantageous because the climate there would be more
acceptable for growing there hemp, and the seeds which would be needed are in
China which has lowest price available for seeds and is to north of Pakistan.

4. Entry mode:
We would purchase green fields for harvesting hemp and establish the product
stores which would sell our product line. First of all we would store gathered
material in warehouses, from where it would be directed to procession site where
would be final product made and then stored. After that we would distribute the
product to our shops. We would use road transportation and direct exporting to
other countries because we have developed road network so it would be most
convenient way to distribute production.

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5. Investment structure:
Our European investor would provide equipment necessary for the production
(watering systems, harvesters, and processing machines, staff training) because
Europe has already manufactured these technologies and has established them on
their own agriculture. The American investor would fund by his side this project
and provide marketing because they have notion how consumer thinks. The local
Pakistani representative would be responsible for all the process of the company
( management, logistics, human recourses) because they know better peculiarities of
that region there we do business.

6. Payment arrangements:
With investors we settle in annual investors meeting, where we review the results of
year and decide by agreement what share each other gets according their
investments and input. With local retailers we settle by direct payment, with China
supplieriees which provides us the seeds we pay in advance because the prices just
could go up any time.

7. Marketing:
The main idea behind marketing is what we would promote the superb attributes of
our textile-textile products and characteristics of hemp. Product is very durable,
eco-friendly, sustainable, wide range of design etc. We would promote our idea in
expos, lifestyle, and healthcare magazines. So the main challenge would be to make
people notice how versatile, valuable hemp.

8. Additional financing sources:

Maybe we could hope to get the subsidiaries because it would help for developing
branch of agriculture. We could also expect support from eco-friendly organizations
which would promote us and give us exposure as friendly company.

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9. Staffing:
For labour force we would hire local workers and give them necessary training if
needed from outside. Company itself would be manageable by Pakistani
management (because they know the region peculiarities), but supervised by board
of investors and they would give company new solutions and if necessary.

10. Likely challenges:

We could stumble into some challenges or obstacles. It might be not favourable
weather conditions which could damage the crop or cross-purposes between
investors or retailers because of company are cross-cultured.

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My Experience:
 It was good experience working with international students.
 At first I faced the problem in interacting with them as they were not
replying to the mails frequently.
 These kinds of projects should be held frequently as they enhances our
knowledge and communication skills.
 Members were cooperative and they helped in completing this project.

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