HONEYLAND MANUKA HONEY

Mohd Nidzamuddin Bin Nor Said 2010343541

Mohamad Farid Bin Abd Rahman 2010516079

Mohd Ali Maghpur Bin Muhammad 2010146051

IntroductionSUE

- Scholl teacher- Back house- Business trip

International market

3 Main factors :1) quality 2) Supply ability3) Stability in

price

Problem face:a) Language barrier - Learn local language

in doing business in foreign

countryb) Export barrier - MAF requirementc) Logistics - Shipping cost and

method of deliver goodsd) Pricing - Currency instabilitye) Market - Local market demand

( Japan requirement )

Global Business

Global or international business was started back

to early existence of

mankind

As 20th Centuries, activities involved

international trading and

global businesses are high in volume and

rapidly growth.

International business is no

longer reserved for a

few large, multinational corporations but now even

small company starts to

venture in international .

Nowadays, many global

issues regarding the international business rose up and being

talk.

Global warming, price oil increase, natural disaster, political issues,

culture issues and instability

exchange rate.NZ Honeyland

Manuka - Small company that

involved in international

business

Global Issues

Global Warming

Increase in Oil Price

Political Issues

Instability in Exchange Rate

Natural Disaster

Culture Issues

NZ Manu

ka

Consequences Affected Sectors

Impact Industries Malaysian Company/Econom

yGlobal

Warming

1. Flora and Fauna disturbance: Decreasing in Manuka Plant growth.

2. Degradation of ecosystem.

1. Honey Farming Sector

2. Manufacturing

1. Less resources2. Less Quality

Food & Beverage

Healthcare

1. Low quality of Manuka honey

2. Low volume of Manuka Honey exported to Malaysia.

3. Increasing in NZ Manuka Honey in the market.

Price Oil

Increase

1. Transportation cost Increased.

1. Transportation Sector.2.Operation and manufacturing

1. Price of the product increase.2. Material price increase

1. Food & Beverage

2. Import & export

3. Logistic

1. Increasing in manuka Honey product price in Malaysia.

2. Consumer will prefer local honey which low in price.

3. Good prospect of exporting Malaysia honey product to the nearby countries. Reduction in transportation cost.

Natural Disaste

r

1. Damage in company facility.

2. The farm will be shut down.

3. Cut off in supply-chain. Road and transportation heavily damaged.

1. Manufacturing

2. Transportation sector

3. 3.Trading

1. Halt production

2. Short in supply.

3. Increase in material price.

1. Food & Beverage

2. 2. Logistic

1. Price of product increase

2. 2.Low stock for Manuka honey.

3. 3.Company shut down

Global Issues Analysis

Cont…Political

issue.1. The farm will be shut down.(War) 2. Economic instability.3. Tourism issue will be Affected.4. Country differences (Policies, Regulation, Ideology)

1. Tourism Sector

2. Manufacturing Sector.

3. Services Sector.

1. The numbers of

unemployed people will increase.

2. No production

of honey.3. The number

of Tourist decrease.

4. Limitation of

trading between Countries.

Food & beverage.

Import & export.

1. Difficulties in doing business between countries.

Instability

Exchange Rate

1. Instability in currency

exchange.2. High risking the

trading.

Business sector Unexpected loss.

1. All multinational business

1. Higher currency rate for new Zealand

Culture Issues

1. Language barrier.2. Cultural differences

Work nature

ServicesManufacturingRetail market.

1. Differences in understanding

1.Import & Export

Global Issue: Global Warming• Flora and Fauna disturbance: Decreasing in

Manuka Plant growth.• Degradation of ecosystem.

Consequences

• Honey Farming Sector• Manufacturing

Affected Sectors

• Less resources• Less Quality Impact

Industries

Malaysian Company/Economy

•Food & Beverage•Healthcare

•Low quality of Manuka honey•Low volume of Manuka Honey exported to Malaysia.•Increasing in NZ Manuka Honey in the market.

Global Issue: Price Oil Increase

Consequences • Transportation cost Increased.

Affected Sectors• Transportation • Sector.• 2.operation and manufacturing

Impact• The price of the product also will be increase.• 2. Material price increase

Industries• Food & Beverage• Import & export• Logistic

Malaysian Company/Economy

• Increasing in manuka Honey product price in Malaysia.

• Consumer will prefer local honey which low in price.

• Good prospect of exporting Malaysia honey product to the nearby countries. Reduction in transportation cost.

• .

Global Issue: Natural Disaster

Consequences• Damage in company facility.• The farm will be shut down.• Cut off in supply-chain. Road and

transportation heavily damaged.

Affected Sectors• Manufacturing• Transportation sector • Trading

Impact• Halt production • Short in supply.• Increase in material price.

Industries • Food & Beverage• Logistic

Malaysian Company/ Economy

• Price of product increase• Low stock for Manuka honey.• Company shut down

Global Issue: Political issue• The farm will be shut down( i.e.; war) • Economic instability• Tourism activity will be affected• Country differences (policies, regulation,

ideology)

Consequences

• Tourism Sector• Manufacturing Sector• Services Sector

Affected Sectors

• The numbers of unemployed people will increase

• No production of honey• The number of tourist decrease• Limitation of trading between countries

ImpactIndustries

Malaysian Company/Economy

- Food & beverage- Import & export

- Difficulties in doing international business- Company go down because no customer come to buy their product

Global Issue: Instability Exchange Rate

Consequences •Instability in currency exchange•High risking the trading

Affected Sectors •Business/trading/ investment sector

Impact •Unexpected loss

Industries •All multinational business

Malaysian Company/Economy

•Higher currency rate for new Zealand will make more loss for ringgit Malaysia.

Global Issue: Culture Issues

Consequences• Language barrier• Cultural differences• Work nature/ business environment

Affected Sectors•Services•Manufacturing•Retail market

Impact •Differences in understanding

Industries •Import & Export

Malaysian Company/ Economy

• Hard for multinational company to succeed at foreign country with different cultures

Discussion question:1) Imagine that you are in charge of

logistics for a small exporting business such a Honeyland. What are the difficulties you need to think about?

- Time constraint- Capacity & Frequency- Safety2) What are the specific contextual

requirements when exporting from New Zealand?

- Need to fulfill the MAF requirement. = phyto-sanitary and bio-security regulations = Inspection

3) Considering that Sue is under a significant time constraint, do you think that outsourcing the entire logistics would be a good move for Honeyland?

- Yes = outsource the entire logistics. = reliable delivery period

= documentation = less risk – expert(their field)

4) What would have been an alternative entry strategy for the Japanese market?

- Collaboration with local company (Joint Ventures)

- Licensing- Franchising5) Do you think the company should

expand or diversify?- Diversify = establish market

= new value added product= reduce cost= honey supply is not encouraging

ConclusionThe world has become an economic marketplace without

boundaries.

But at the same time, there are many global issues that can affect multinational business(i.e. global warming, price oil increase, natural disaster, political issue, instability exchange rate, culture issues.

To avoid large loss, multinational companies must know and analyze briefly the effect of those issues.

Hence, strategic option must be selected by the companies to develop and become competitive in the global market.