International Business Assignment

Contents 1. 0 Introduction3 1. 1 Company Profile3 2. 0 Statement of Originality and Declaration Form4 3. 0 Objectives5 3. 1 To expend our business into international market. 5 3. 2 To promote our home country (Malaysia) culture to foreign country5 3. 3 To increase sales and earn more profit from foreign country5 4. 0 Situation analysis6 4. 1 Market Place6 4. 2 Legal and Political7 4. 2. 1 Legal and Political of Malaysia7 4. 2. 1. 1 Political system7 Legal system8 4. 2. 2 Legal and Political of Australia8 4. 2. 2. 1 Political System8 4. 2. 2. 2 Legal System9 5. 0 Strategies Framework11 5. 1 Vision11 5. 2 Mission11 5. 3 STRATEGIES11 . 4 Goals12 6. 0 Conclusion13 7. 0 References/Bibliographies14 8. 0 Appendices15 1. 0 Introduction 1. 1 Company Profile Our company is operating a business in our home country, Malaysia which is selling White Coffee in a Coffee shop.

Our company name is New Town White Coffee as we are selling our famous coffee that is White Coffee that loved by most of the consumers in Malaysia. Besides, selling several type of caffeine beverages, we also selling some foods such as French toast, noodles and furthermore. We have also operated 6 branches in Malaysia which is in Johor, Melaka, 2 branches in Penang and 2 branches in Kuala Lumpur.

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After operating for a few years, we have collected some sufficient capital from business profits as our restaurant is being popular and developed in Malaysia. Therefore, we gained a chance to develop our business to foreign country by giving franchise license to the franchisee in the related country. In year 2010, our business obtained a HALAL certification from the Islamic Religious Department of Penang for the Group’s beverage. This is part of our Group’s intentions, which is to produce our beverages in accordance with the Islamic law.

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In order to get success in foreign country, we have done some research to collect information of the country such as Australia. We found that Australia is our best choice of foreign country that can be expanded. Therefore we choose Australia as our host country as they have the purchasing power and moderate standards of living. In the other hands, the consumers of Australia can have a chance to try different taste of coffee such as our NewTown white coffee. Therefore, we feel that Australian may accept and adopt our food culture when there is a different style of coffee shop operates at there. . 0 Statement of Originality and Declaration Form SCHOOL OF BUSINESS STUDIES KL Main Campus Plagiarism Statement The School of Business Studies views cases of plagiarism or collusion by students very seriously. Any student who intentionally plagiarises or collude in any part of their assignments/projects or written work, threatens the values of academic work and undermines the credibility and integrity of the College’s awards. Plagiarism or collusion discovered at any stage of the student’s course of study will be dealt with appropriately by the School.

Such offenders shall appear before a panel of enquiry at the School and appropriate punishment will be meted out. Punishment may include failing the student for the assignment or project, re-submission of another piece of work or downgrading of the work to the maximum of a pass grade even if actual grade achieved was higher. What constitutes “Plagiarism” and “Collusion”? Plagiarism according to the Oxford Advanced Learner’s Dictionary of Current English means “take and use somebody else’s ideas, words, etc as if they were one’s own”.

Plagiarism can take the form of reproduction without acknowledgement from published or unpublished works of others including materials downloaded from computer files and the Internet. Students’ work submitted for assessment is accepted on the understanding that it is the students’ own effort without falsification of any kind. Acknowledgement to the source must be made if students had relied on any sources for information with appropriate reference being made in their work. Collusion can be deemed to be a form of plagiarism involving the unauthorized co-operation between two or more people with deceptive intention.

Collusion can take the form of two or more students producing a piece of work together but with one intentionally passing it off as his work with the knowledge of the others. Student may have submitted the work of another as his own with consent from that other student. In such cases, both parties are guilty of collusion. Obligations of students Students are required to sign a declaration that the work submitted such as course work assignment, essays and projects, etc is their own work and that they have not in any way knowingly allow another student to copy it.

It will be assumed that all submitted work is that of the students’ own work. Students are expected to familiarize themselves with or make use of method(s) of citing other people’s work in accordance with acceptable referencing. SCHOOL OF BUSINESS STUDIES| Penang Campus Plagiarism Statement Read, complete and sign this statement to be submitted with your written work. We confirm that the submitted work are all our own work and are in our own words. Name (Block Capitals) Regn. No.

Signature …………………………………………………………… ……… …………… …………………………………………………………… ……… …………… …………………………………………………………… ……… …………… ProgrammeDiploma in Business Studies (International Business) Course Code & TitleABDM3223 FIBE Tutorial Group______________ Date……………………………………………… 3. 0 Objectives 3. 1 To expend our business into international market. There are various reasons our business wishing to expand our business. The very first reason is to increase the customer bases. We wish to target a large number of potential consumers.

We also wish to increase the networking of our business and to make our business across the country boundaries and become the top in the world eyes. Moreover, we are seeking the long term profits. We are expanding to foreign country so as to decrease the level of dependence on home country demand. 3. 2 To promote our home country (Malaysia) culture to foreign country We wish to promote our home country culture to the global. It is counted as a sign of loyalty to our home country. We hope that the foreigners can understand and accept our culture.

Besides, the of business expansion are used to build and maintain the good relationship among the countries. This will bring benefits towards our economy as the sales increases. 3. 3 To increase sales and earn more profit from foreign country The reason why our business is going to enter the foreign market is because that we wish to gain profit from the foreign market. The profits we earned will be converted into Ringgit Malaysia and thus making the foreign currency inflow to our country. Thus, our economy will grow better from day to day. It may help to create a stable economy condition in Malaysia.

The stable economy condition will lower the unemployment rates in our countries and also the related foreign countries. 4. 0 Situation analysis 4. 1 Market Place In our home country, Malaysia, we act as a manufacturer for produce coffee bean. For the foods, we purchase from the local people. Furthermore, there are many competitors among in food country. In Penang, we also have many competitors. The reason we choose Penang as our market place because of Penang has the most multicultural food in Malaysia. The main coffee cafe competitor for us is Coffee Bean and Leaf ® in home country.

The Coffee Bean & Tea Leaf ® has since grown into one of the largest privately- owned, family-run coffee and tea companies in the world. The coffee that they are using is from foreign country which is Brazil, the main producer country of coffee. Link of coffee bean The global competitor is Starbucks. Starbucks Corporation is a stable and well-known coffee corporation. Now it is an international and has the largest coffee house company around the world. The company was expanded rapidly into the whole world such as in United State, Malaysia, Singapore, Australia and etc.

Furthermore, Starbucks purchases and roasts high-quality whole bean coffees and sells them along with fresh, rich-brewed, Italian style espresso beverages, a variety of pastries and confections, and coffee-related accessories and equipment – primarily through its company-operated retail stores. Link of starbucks Besides, we plan to expand our business in Sydney, our host country, Australia. Sydney is the largest and most populous city in Australia. Most of the Sydneysiders are formed by international population of people from numerous places around the world.

We choose Australia as our expanding target market because Australia, Sydney has grown to become a wealthy and prosperous city. So, we can sure that the competition will become tougher compare to our country because there was a lot of foreign cafe in Australia. 4. 2 Legal and Political 4. 2. 1 Legal and Political of Malaysia Malaysia is a multi-racial country. Malays who make up about 66% of the population are the predominant group with Chinese, Indians and other ethnic groups making up the rest. Islam is the state religion but freedom of religion is guaranteed by the Constitution. . 2. 1. 1 Political system Malaysia has 13 states and two federal territories Kuala Lumpur and Labuan. Nine of the 13 states have hereditary rulers which are Perlis, Kedah, Kelantan, Terengganu, Pahang, Selangor, Negeri Sembilan and Johor. The Head of State, Yang Di-Pertuan Agong is elected every five years. The government is a parliamentary democracy based according to universal suffrage. The head of government have the executive powers, the Prime Minister, who responsible for the Cabinet, including the government ministers. The majority party is the Barisan Nasional.

The Parliament is combined of two houses: The Dewan Rakyat, which is fully elected, and the Dewan Negara to which members are choose by the Agong. Dewan Negara members are citizens who have given distinguished public service, have distinguished professional careers, or who represent the interests of racial minorities and aboriginal peoples. Each state has a Chief Minister who is elected to office, together with a State Assembly. Legal system The law of the nation is a written federal constitution, which can only be amended by a two-thirds majority in Parliament.

Malaysia’s judiciary is independent, with judicial power give in the High Court of Malaya, and the High Court of Borneo, headed by Chief Justices; with the Federal Court having exclusive jurisdiction to determine appeals. The Lord President is Head of the Judiciary. The basis of the Malaysian legal system is English common law, a legacy of British colonial history. The High Court has jurisdiction over all criminal and civil matters, while the Court of Appeal hears appeals from the High Court. The Federal Court, in turn, hears appeals from the Court of Appeal, and has jurisdiction over constitutional law matters.

The paramount ruler on the advice of the Prime Minister appoints judges to the Supreme Court. Traditional Islamic law is applied to Muslims about personal status matters. 4. 2. 2 Legal and Political of Australia Australia is a stable, culturally diverse and democratic society with a skilled workforce and a strong, competitive economy. With a population of more than 21 million, Australia is the only nation to govern an entire continent. It is the earth’s biggest island and the sixth-largest country in the world in land area. Australia gained the 14th biggest overall economy in the world and the 9th biggest industrialised economy(2007).

Australia is the 15th richest nation in per capita terms, and is the 6th oldest continuously functioning democracy in the world. There are migrants that from 200 countries because Australia welcomed more than 6. 5 million migrants. 4. 2. 2. 1 Political System Australia has six states which are New South Wales, Queensland, South Australia, Tasmania, Victoria and Western Australia and two major mainland territories are the Northern Territory and Australian Capital Territory (ACT). Australia is a constitutional monarchy with a federal division of powers.

The federal Parliament is bicameral, consisting of a 76-member Senate and a 150-member House of Representatives. Twelve senators from each state are elected for 6-year terms, with half elected every 3 years. Each territory has two senators who are elected for 3-year terms, concurrent with that of the House. Seats in the House of Representatives are allocated among the states and territories roughly in proportion to population. The two chambers have equal powers, except all proposals for appropriating revenue or imposing taxes must be introduced in the House of Representatives.

Under the prevailing Westminster parliamentary system, the leader of the political party or coalition of parties that wins a majority of the seats in the House of Representatives becomes prime minister. The prime minister and the cabinet wield actual power and are responsible to the Parliament, of which they must be elected members. General elections are held at least once every 3 years. 4. 2. 2. 2 Legal System The legal system used by the Australian is based on a fundamental belief in the rule of law, justice and the independence of the judiciary.

Citizen such as Australian and non-Australians alike are treated equally before the law and safeguards exist to ensure that peoples are not treated unfairly by the officials or the governments. There are several principles that include in the fundamental to Australia’s legal system are procedural fairness, judicial precedent and the separation of powers. The common law system, as developed in the United Kingdom, forms the basis of Australian jurisprudence. Besides, there are some other countries that employ variations of the common law system are the United States, Canada, New Zealand, Malaysia and India.

The Australian Constitution of 1901 established a federal system of government, under which powers are distributed between the federal government and the states; it also defined an exclusive powers and concurrent powers. Federal laws are applying to the whole of Australia. Australia has nine legal systems-the eight state and territory systems and one federal system. The state and territory criminal laws are the main point that affecting the daily lives of most Australians. 4. 3 Economic 4. 3. 1 Economic in Malaysia Malaysia is a newly industrialised market and within developing country.

It once has one of the best economic records in Asia which with GDP growth of an average 6. 5% from 1957 to 2005, held a 3rd largest economy in ASEAN when its GDP per capita reach RM1. 24071 trillion in 2010. All of these efforts are start when 1970s, Malaysian decided to change from the predominantly mining and agricultural-based economy towards a industrialised economy, this wise choice has made them improved their economy status since 1980s. Although when 1997 Asian Financial Crisis has suffered the Malaysia economy, they recovered from the crisis sooner than neighbour countries, sooner they have recovered to the level of pre-crisis era.

Furthermore, Malaysia is an exporter of natural and agricultural resources, not to mention that the most valuable exported resource is the petroleum. Furthermore, the oil palm plantations also make Malaysia one of the largest producers of palm oil in the world. Since natural resources will be finished in one day, Malaysia decided to diversify its economy so that it will less dependent on natural resources; this is why Malaysia government try to push the tourism in the Malaysia afterward.

As a result, tourism has become Malaysia third largest source of income from foreign exchange. The unemployment rate in Malaysia was last reported at 3 percent in March of 2011. From 1998 until 2010, Malaysia’s Unemployment Rate averaged 3. 43 percent reaching an historical high of 4. 50 percent in March of 1999 and a record low of 2. 90 percent in March of 1998. appendix 4. 3. 2 Economic in Australia The economy of Australia is a developed and modern market economy with a GDP about US$ 1. 2 trillion. The GDP forecast to grow by 3. 5% in 20102011 and 4% in 20112012, leading to further reductions in the unemployment rate. The success of monetary and fiscal stimulus will help the budget return to surplus in 20122013, 3 years ahead of schedule. Net debt is expected to peak at 6. 1% of GDP in 20112012, considerably below the previous forecast of 9. 6% of GDP. The unemployment rate was expected to fall from its early-2010 level of 5. 3%, down to 5% in late 20102011, and 4. 75% in late 20112012, around levels consistent with full employment. Labour market participation has remained at around 65%.

Both the federal and state governments have recognized the need to invest heavily in water, transport, ports, telecommunications, and education infrastructure to expand Australia’s supply capacity. The largest river system in Australia, the Murray-Darling, and related coastal lakes and wetlands in South Australia are critically threatened, and the government has developed a plan to improve irrigation infrastructure and efficiency and buy back unused water allocations along the river. Links australia The Australia-U. S. Free Trade Agreement (AUSFTA) entered into force on January 1, 2005.

The AUSFTA was the first FTA the United States concluded with a developed economy since the U. S. -Canada FTA in 1988. Australia also has FTAs with New Zealand-ASEAN, Singapore, Thailand, and Chile, and is pursuing other FTAs, including with China, Japan, Malaysia, and South Korea. A burgeoning trade relationship marked by ongoing, multi-billion dollar resource export contracts and rising manufactured imports has driven FTA negotiations with China. 4. 4 Technological Technologies allow us to offer higher quality products and continuously looking for better ways to satisfy our customers through their experience.

First of all, we can use the current trend on internet, such as Facebook, Blog, Forum, Website and etc. to collect customer feedback so that we can understand what the feeling of customers toward our business, and we can make changes upon the collected data and information. Furthermore, we might also able to use Facebook’s apps or e-commerce website to order certain food for delivery purpose, calling is also available, it provides the convenient to the customer so they don’t have to walk out their home and travel a long way to the storefront, just like Pizza Hut or McDonald does.

Within the shop, we use technology like Interactive Menu (IM) System, customers can order any items on the menu via the screens installed at the conveyor belt and the order will be sent to the kitchen automatically. The result is quick service that’s just need a mouse click. Furthermore, we have customized machine to make the coffee which can speed up our productivity. Other than that, our cafe uses WI-FI technology in all our cafe shop locations in order to fulfill their customer needs. Besides that, our cafe shop also can use computerized roasters technology to create unique computerized curves in roasting coffee beans. . 0 Strategies Framework 5. 1 Vision Creating a coffee shop that able to let our customer feel relax, happy, enjoy and home feeling. Besides, a good impression about our New Town should be given to customers so that customer will remember our coffee shop in next visit. 5. 2 Mission Our mission is to provide a premium quality coffee and services to every customer, we give customers true sincerity and trust on our coffee so that customers won’t regret and be disappointed towards New Town coffee shop. 5. 3 STRATEGIES

Based on our research in Sydney market place, legal and politic and economy, we have made some decision on our strategies to operate our business in Sydney. It is because, to develop a successful business, we need to set some strategies. The strategies that we choose are to use better way to achieve our objectives. The first strategies that we decided is by using differentiation focus strategy. This strategy is aim to differentiate our company from our competitors. It is because our coffee shop quite unique and it is within just one or a small number of target market.

The special customer needs are opportunities for us to provide product that are different from our competitors. Next, the second strategy is cost leadership; this strategy is to let our company become the low cost producer in the company. Many market segments in the company are emphasized on the place to minimize the costs. Besides, the third strategy is diversification strategy which is corporate managers can create value for stockholders. The value added is through synergetic integration of new business into the existing business to gain competitive advantage.

It is because our cafe shop has the various types of food and the variety coffee. And then we can be divided into vegetarian food and non-vegetarian food to serve various kind of customer. Besides that, customers can have different preferences for their coffee or drinks such as add-on or less in some ingredients such as coffee, ice, milk, syrup and sugar due to their own taste. This kind of services will gained the loyalty of our customer due to they can have the coffee that suit their taste. Our fourth strategy is business development strategy.

This strategy may help us to design document service providers focus on the changing market dynamics and develop a high quality strategic marketing plan for business growth. We may do some information survey to research on customer requirement and make some improvement in our food and services to develop a successful business. 5. 4 Goals Having branches or franchise of New Town coffee shop all over the world and become a well-known coffee shop in the year of 2020. 6. 0 Conclusion 7. 0 References/Bibliographies 8. 0 Appendices The picture show that the unemployment rate of Malaysia.

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International Business Assignment. (2020, Jun 02). Retrieved from

International Business Assignment

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