Group members:

Ahmer rana Sundus haroon Ali ahmed khan Bilal mehmood Rabia ul haq Zia ur rehman khan SUBMITTED TO: Madam AQSA Project on: International business (MBA02101039) (MBA021010 03) (MBA02101006) (MBA02101018) (MBA02101042) (MBA02101033)

The university of lahore

Table of Contents
Introduction ........................................................................................................................................................... 3 Vision ................................................................................................................................................................. 5 Mission .............................................................................................................................................................. 5 Macro Environment ................................................................................................ Error! Bookmark not defined. Demographic .................................................................................................................................................. 8 Economic ....................................................................................................................................................... 8 Natural ........................................................................................................................................................... 8 Technological ................................................................................................................................................. 8 Political.......................................................................................................................................................... 8 Cultural .......................................................................................................................................................... 9

Introduction

The word Mango is the British pronunciation of the Mankay, the Tamil word for the fruit, because it is found in most abundance in Southern India, around Madras. The mango is held in high esteem all over the world and is considered to be the native of Indo-Pakistan Sub-continent and eastern Asia. They are to be found in nearly all over the tropical regions of the world, therefore known as the king of all fruits. Mango is cultivated around February/early March, when the cold weather begins to subside and the danger of destruction through frost disappears. It comes in market early in the May and remains in market till August/September. There are more than 1300 varieties of the mango, which are cultivated in the Indo-Pak subcontinent. In Sindh, there are more than 125 varieties of mango. As we get mangoes from Baluchistan and NWFP, but the main source are Sindh & Punjab. In Pakistan we get more than 10 lacs tons production, out of which Sindh provides 34% i.e. more than 3 lacs tons. Multan and the Mirpurkhas are the main regions, where we get mangoes in large quantity. The maximum production, we get from Rahim Yar Khan, where mangoes are cultivated on more than 26 thousand acres. The main field of mango is obtained from District Rahim Yar Khan, Rahimabad, Sadiqabad, ShaikhWahan, Mianwali, whereas Hyderabad, Tandojam, TandoAllahyar, Tando Jan Muhammad, Digri, Nawab Shah, NusheroFeroz, KhairpurMirus, Ghotki, Bahawalpur, Shujabad, Muzaffargarh, KotAddu, Khanewal,and Sargodha are also very famous for mango production. There are many varieties, which are famous in Pakistan, but some varieties which are very common are Sindhri, Langra, Chunsa(white,Black), Fajri, Samar Bahisht, Anwar Ratole, Dasehri,Badshah,etc. The main markets for Pakistan mangoes are the domestic markets in large cities such as Lahore and Karachi, with much of the produce going through central wholesale Markets. The main export market is the Middle East, particularly the UAE. Other Export markets are emerging in the EU, SE Asia and Eastern Europe. Most farms in Pakistan have a mix of enterprises with very few producing only Mangoes. Mango plantations (called gardens) range in size from small 2 hectare

Holdings up to 400 hectares. The industry has a forward contract system where most Farmers sell their crop at flowering or soon after to contractors acting on behalf of Commission agents. Thus very few mango farmers in Pakistan are responsible for Selling or marketing their own crop. The industry faces a number of major challenges, particularly in postharvest handling Systems, where fruit losses of 30 to 40 per cent are common and overall quality is Dramatically impacted. There is no cool chain management and with ambient Temperatures often around 500C during harvest, fruit has a very short shelf life. Periodic gluts occur on domestic markets and with no capacity to store fruit, heavy Discounting of retail prices is common. The export market is facing similar Challenges. Pakistan mangoes have a reputation as being cheap and of poor quality, and exporters have a tendency to dump fruit in markets such as the UAE. Sales ofPakistan fruit in many export markets are to the local expatriate (Pakistani/Indian) Communities and it is not clear if substantial inroads are being made in the widerGlobal supermarket trade.

Vision

To be the best exporter in mango industry in terms of delivering valuable fruit.

Mission

To capture market and gain consumers trust by giving best quality with standardized product.

Current position of product in Pakistan

Among Pakistans estimated population of 180 million there is a wide Discrepancy in income levels, with around 45% of the population said to be living Below the poverty line. Locally produced mangoes are the main fruit eaten betweenJune and September. There is little infrastructure, little knowledge about handling of mangoes and very limited cool storage. The majority of mangoes are therefore retailed in poor quality and with a short shelf life.

Varieties of Mangoes

There are 125 known varieties of Mangoes in Pakistan.A description of few of them known widely is as follows: LANGRA: This variety range in size from medium to large.Its skin color is skin green. Taste is very sweet. Fruit quality is very good, season (Early to mid Season) 1st to 3rd week of July. Yield is very high. AMAN DUSHERT: It derives its name from village between Lucknon and Malihabad where it was originated. Size range from small to medium. Its color is yellow when it ripe, skin is thin, pulp is fibreless, and taste is very sweet. Variety ranges from good to very best. Its season is July month. SAMMAR BAHISHT: It got its name because of its pleasant flavor. Size is medium, skin greenish yellow, pulp yellow, very sweet, flavor pleasant to delicious. Quality of the fruit is very good. Ripening season July-August. FAJRI KALAN: It has originated in Bihar and got its name after the name of lady Fajri who selected and brought up its trees. Size is big, base rounded, skin thin, and pulp colorpale, fibreless, taste sweet with pleasant flavor. Juice moderate to abundant.Fruit quality range from good to very good. Season is August month.

SAMMAR BAHISHT CHAUSA: It is originated in a village Chausa in Malihabad, Tehsil of Lucknow. It is also known as Kajri or Khajri. Skin is medium in thickness, smooth, flesh firm. Fibreless with pleasant flavor and sweet taste.Juice moderately abundant. Ripening season is August (Late). RATAUL (ANWAR): It has originated in Shohra-e-Afaq garden in Rataul. Now it has become popular in mango growing areas of Punjab because of its high flavor. Skin is medium thick. Flesh firm, fibreless, flavor very pleasant, with very sweet taste. Juice moderately abundant. Fruit quality is very good. Ripening season is July (Mid-Season). Keeps well in storage. SINDHRI: It is leading variety of Sindh. Fruit shape ovalish long. Size is big, length 15cm, breadth 8cm. Thickness 7.4 cm. Weight 14 oz. Skin color is lemon yellow when it ripe. Surface smooth, pulp color yellowish cadium. Flavor is pleasantly aromatic, taste is sweet. Heavy yielder, early season. NEELUM: Quality variety of Sindh. Fruit shape ovate, size small, length 7.7 cm breath 5.9 cm thickness 5.6 cm weight 5 oz. The base is rounded. Skin color is sea green when unripe and yellow with raddish tinge when ripe. Surface is smooth. Have small dots on its surface.

Production of mangoes according to the province

Province

Area (lac acres) 1.19 1.05 0.047 0.005 2.29

Punjab Sindh Baluchistan NWFP Pakistan

Production (lac tons) Percentage of total production 5.82 63.82 3.12 34.21 0.16 1.75 0.02 0.22 9.12 100.00

Pestle analysis of P akistan

Demographic Pakistan is the large market for the mango. The estimated population of Pakistan in 2009 was over 180,800,000 making it the world's sixth most-populous country. Economic Pakistan has a semi-industrialized economy. Pakistan's GDP is US$167 billions while its per capita income stands at $167million , which makes it the 48th-largest economy in the world. Pakistan is regarded as to having the second largest economy in South Asia. Cheap labor of the country enables the company to introduce products within the purchasing power of the consumers.
Natural

As Mangoes a self grooming industry, natural environment have major impact on this industry. Such as weather conditions play an important role in the production of mangoes as wind destroys mangoesat initial stages. Technological Technology plays a very important role in this industry, as it is heavily dependent on technological advancements; Because Mango basically depends upon technology of packaging. Political

The political environment is very much uncertain and unpredictable. The tax rate (36%) and labor laws keeps on changing and legislation take years to settle.

Cultural Pakistani society is power distance society, with high regard for traditional Islamic values. Pakistan is a land of culture and tradition people like to groom and feel fresh. It would be easy for Mango to capture that market segment.

PESTEL ANALYSIS OF USA

POLITICAL

As there is democracy in USA so there will be consistency of policies. There will be no threat of change in policies with a change of government until or unless any big event happens. There is a risk in case of anything happen badly in between two countries so USA can banned our export of product.
Economic

The second element of a PESTEL analysis involves a study of economic factors. All businesses are affected by national and global economic factors.The climate of the economy dictates how consumers, suppliers and other organizational stakeholders such as suppliers and creditors behave within society.USA is a developed country so the economic indicators are positive. Economic conditions arequite stable so any investor /exporter/businessman feels relax while investing /exporting/starting business.

Social
The third aspect of PESTEL focuses its attention on forces within society such as family, friends, colleagues, neighbors and the media. Social forces affect our attitudes, interest s and opinions. These forces shape who we are as people, the way we behave and ultimately what we purchase.USA is a low power distance society so same stuff will be available for everyone.

Technological

The fourth element of PEST is technology, as you are probablyaware technological advances have greatly changed the manner in which businesses operate. Organizations use technology in many ways, they have technology infrastructure such as the internet and other information exchange systems including telephone.USA is an advance country spending a huge amount of budget on developing new technologies so in order to remain in touch with our customers we will have to adopt the latest technologies emerging. If we are unable to use technology it will badly affect our business. (Orders/ delivery)
CULTURAL

US culture is western they follow the EU cultures, they are individualistic in their approach they are the most TV lover nation, American culture is a mixed culture there is African American culture and democracy,freedom of opinon is the part of the culture of America.

Legal

There is a civil law in USA so everything is available in law comprehensively so we have to aware the rules and regulations and should follow them in order to make our business successful.

Environment

America has done more about the environment than almost any other country and many more measures to fight air and water pollution. There is land use and water use policies that is to be revisited time and again, due in no small part to growing population.

Language

As in USA English is most common language spoken and under stood by all races of people so we will go with English wording on our packaging.
COMPETITIVE ANALYSIS:

Direct competitors All the local exporters who have the license of exporting of food items business especially the exporters of mangoes to USA are our direct competitors in Pakistan as well as the exporters from Pakistan who has the setup of selling mangoes in USA are also our direct competitors in USA. Indirect competitors All the importers and the distributors who imports mangoes from different countries and sell out in USA markets and all the exporters of mangoes from different countries (India, China etc. ) who export fruit items on the order of USA distributor are our indirect competitors in USA.

Modes of transport

The majority of mango exports from Pakistan are sent via Karachi, either by air or sea. All exports to Europe and the eastern Asian markets are by air while container shipments were sent to Singapore. Airlines operating freight services out of Pakistan are PIA, Emirates and Singapore Airlines. Sea shipments use standard 40 foot refrigerated containers, dry containers or opencontainers (with sides but no roof). Vessels range from large container ships ownedby global shippers such as Maersk, to locally owned small barges.

Transport issue

There is limited Air space out of Pakistan during the mango season, as allairfreight currently goes on passenger planes, and there are no dedicated cargoflights for mangoes (consistent with experiences in other counties where the cost of dedicated cargo flights is generally too high for mangoes). Short notice given to exporters regarding air space availability means that they are forced to source from nearby Karachi and Sindh markets. There is limited suitable lifting equipment for air pallets at Karachi Airport. Many exporters complained about the limited cool storage capacity at Karachi airport and that loads were often left sitting on the Tarmac when ambient temperatures could exceed 40 Karachi Port is not particularly efficient and delays are common for both arrivals and departures. Marks indicated there were sometimes difficulties in locating enough containers in Karachi to meet peak demands, but they believed that this was being adequately addressed. Many of the small vessels sending fruit to the Middle East are slow, inefficient and barely seaworthy, but continue to be used due to cost. Open containers offer no protection or temperature control. Many exporters have no cooling facilities and rely on reefers for cooling. There is limited knowledge about storage and shipping conditions and temperatures. Insurance for Pakistan mango sea shipments is not available.
Domestic transporters

Domestic transporters play an important role in getting fruit from farm to agent, and agent to destination market. Commission agents order and control transport, most of which is on high-sided body trucks with a nominal load capacity of around 7 tones.Overloading by up to 100 per cent is a feature of the system, supposedly to reduce transport costs per unit, and market levies which are on a per truckbasis.

Transport practices and activities that can affect mango quality

1. Overloading of trucks often pack 1,000 crates on a truck instead of 500 (truck capacity) causing crushing of lower crates. 2. Long times taken for loading and unloading takes around two hours and one and half hours respectively, leading to shorter shelf life. 3. 60% of roads in Pakistan (particularly in rural areas) are unsealed and in poor repair. Trucks have basic suspension systems leading to impact injury of fruit. 4. Loads are unrefrigerated and often uncovered, leading to shorter shelf life as to player boxes easily overheat

Packaging

Most of the exports to the Middle East are in the locally made, roughly nailed wooden crates which are designed to hold about 10kg, but are overloaded to 13-15kg as it disbelieved that this minimizes the chance of fruit moving in the crate during transport.Fiberboard cartons are used for other export markets and some Middle Eastern markets, their sizes ranging from 1.5kg gift packs to 9kg bulk boxes. Each exporter appears to have a preferred packaging system. Some were importing cartons from the UAE. No waxed or water resistant cartons were mentioned or observed. Design of cartons for adequate airflow was poor and carton strength was mostly inadequate.
Issues with packaging

y Lack of consistency among exporters. y Exports to the Middle East were mostly in rough wooden crates. y Carton design strength and airflow is inadequate for sea freight.

y No moisture resistant cartons appear to be available. y Carton collapse is a common complaint along the export supply chain

The wooden crates are replaced by such type of cartons.

Procedure for the export of mangoes from Pakistan

y First of all quality control department of exporting issue the license for exporting. y For the food items we have to certify our packaging from quality control department. y After the certification they issue license for export business. y For every new transaction of export we have to take new approval for that transaction. y It is depend on decision of quality control department either they give us approval for the export by shipment or by air. It depends on the high quality of food and its packaging. y If the food items are more than the size of refrigerated containers of shipment then they issue the approval of export by air. y All the matter is depend on the quality and packaging especially for the food items.
KEY POINTS OF EXPORTS OF FRESH MANGOES:

y Mangoes can be sent only from orchards/packhouses certified by Department of Plant Protection (DPP) Government of Pakistan y Mangoes are allowed only in Pest Proof Packaging with defined specifications

y Consignments are only allowed port entry at OHare International Airport, Chicago y Only commercial consignments through air freight cargo are authorized, not personal baggage, mail or other carrier

Exporters

There is very little regulation and no accreditation of mango exporters in Pakistan. Consequently there are many exporters undertaking various roles in the system from specialist exporter, to exporter and commission agent, to exporter and importer, to exporter commission agent and contractor. Apart from the general requirement to register as a business (Sales Tax Number and National Tax Number, and the specific requirements of destinations that require certified disinfestations treatments, the reappear to be no other impediments to exporting. The Pakistan government has a policy of substantially increasing export earnings and has announced a five-pillar development strategy. Mango exporters could benefit under this strategy by gaining preferential access to newly negotiated markets (Iran was such a case in 2005 and China is a current example), and by benefiting from government investment in infrastructure and capacity building

Issues with exporters

1. Limited knowledge of appropriate use of existing infrastructure, graders, hot water treatment and cool rooms in relation to mangoes. 2. Most exports are on consignment. 3. General poor knowledge of product outturn and performance. 4. No consistency of packaging among exporters. 5. Limited knowledge of export market requirements

Country to enter is USA

We want to go in USA with our product because there is a lot of opportunities in US market for mangoes as mango is a fruit which is considered as energetic fruit and US climate is cold so it not only fulfill energy requirements but also its favorablefor storing mangoes.
Mode of entry:

Mode of entry is exporting in USA First we will start our business by opening sale subsidiaries in GARDEN GATE FOOD MARKET. This sale subsidiary will show the existence of our business in USA and this will be performed in two ways at one time, whole seller for the distribution activities and retailer for the direct customers.

Infrastructure strategy for sale subsidiary:

The interior design and the decoration of our sale subsidiary willbe according to USA culture for this purpose we will use domestic multinational strategy. y The use of Domestic multinational strategy due to high pressure of localization because the adoption of American standard is the requirement of our sale subsidiary and pressure of cost is low because we have to pay only rent of sale subsidiary and warehouse

5 porter forces model

Bargaining power of supplier 1. Supplier will be in a position to charge on his own terms and condition. (According to USA transportation). 2. In Pakistan bargaining power of supplier will be minimized as fragmented source of supply (packaging and cartons).

Bargaining power of customer 1. As there is no frequent production of mangoes in USA so the knowledge of customer about production cost will be almost zero so as a result bargaining power ofbuyerwill nearly be zero.

2. There is a little bit competition so we can charge prices what we want. Threats of new entrants There will always be risk of new entrants.so we will aware of new competitors and new exporters to remain in business. Threats of substitutes There will be no substitute of our product. Competitive rivalry within industry There will be competitive rivalry between existing players.As all exporters are exporting the same stuff there will always be a chance of competitive rivalry between them.
SWOT Analysis of PAKISTAN

Strengths
Pakistans biggest cluster of mango production y Favorable environmental conditions y Easily available farm land y Varieties like Chaunsa mango are recognized as one of the best varieties y Pakistan is included among the top ten mango producing countries in the world y Priority fruit crop supported by major programs y Availability of raw material (mangoes) with a consistent growth in production y Availability of farm labor and technical expertise

Weaknesses

y Irregular & inconsistent supply of quality fruits y Short storage life and inadequate post harvest facilities y Non availability of cold storage and reefer container facilities at airports & seaports y Limited air space and high freight costs y Low literacy rate in majority of mango growers y Lack of modern agricultural practices y Mismanagement of farm land (dependant upon the Farm Manager) y Lethargic behavior of employees towards farm work

Opportunities
y Prospective markets within geographic proximity i.e., Middle Eastern countries. y Domestic competition level is moderate for a modern processing unit. y Presence of premium domestic markets. y Lower tariff imposed by importing countries under GATT and by EU countries. y Expansion opportunity in new markets like Far East and Central Asia. y Rising local and international consumption and exports of mango from Pakistan y Increased margin for growers; provided demand and supply gap in both national and international markets.

Threats
1. Competition from other mango producing countries. 2. Trade protectionism, which may be applied by countries due to fruit/white fly virus etc.

3. Ruthless competition amongst local exporters. 4. Trade restriction if imposed by the importing countries. 5. Illegal supplies of mangoes by local exporters through ferryboats to Dubai 6. Shortage of Water 7. Exchange rate fluctuation

Swot of USA Strength

y Favorable atmosphere for storing mangoes. y USA is a non productive country in the field of mango so we can earn more profit. y There are lots of opportunities for exporter of mangoes as competition is low. y Price, value and quality.

Weakness
Mango is a perishable product so there is always a risk mangoes will be wasted due to the long distance.

Opportunities
Our competitors range is low so we can establish or flourish our business and make better positioning. We can make Partnerships, distribution networks to enhance our business throughout the country?

Threats
Following are the threats

Other exporters are a big threat for our business Us government can impose ban. Us government can apply tax on import. Due to terrorism US government can impose ban of exporting mangoes by air.