HONEYLAND MANUKA HONEY

Mohd Nidzamuddin Bin Nor Said Mohamad Farid Bin Abd Rahman Mohd Ali Maghpur Bin Muhammad

2010343541 2010516079 2010146051

Introduction
SUE
- Scholl teacher - Back house - Business trip

International market
3 Main factors : 1) quality 2) Supply ability 3) Stability in price

Problem face:
a) Language barrier - Learn local language in doing business in foreign country b) Export barrier - MAF requirement c) Logistics - Shipping cost and method of deliver goods d) Pricing - Currency instability e) 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

Global Issues Analysis

NZ Manuka Consequences Affected Sectors Impact
1. Global 1. Flora and Fauna disturbance: Decreasing Warming

Industries

Malaysian Company/Economy
Low quality of Manuka honey Low volume of Manuka Honey exported to Malaysia. Increasing in NZ Manuka Honey in the market.

in Manuka Plant growth. 2. Degradation of ecosystem.

2.

Honey 1. Less resources Farming 2. Less Quality Sector Manufacturin g

Food & Beverage 1. Healthcare 2.

3.

Price Oil 1. Transportation cost Increased. Increase

1. Transportation Sector. 2.Operation and manufacturing

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

1. 2. 3.

Food & Beverage Import & export 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. 1. 2. 3. Price of product increase 2.Low stock for Manuka honey. 3.Company shut down

Natural 1. Damage in company facility. Disaster

2. The farm will be shut down. 3. Cut off in supply-chain. Road and transportation heavily damaged.

1. Manufacturing 1. 2. Transportation sector 2. 3. 3.Trading 3.

Halt production Short in supply. Increase in material price.

1. 2.

Food & Beverage 2. Logistic

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. 2. 3. Tourism 1. Sector Manufacturin g Sector. Services Sector. 1. 1. The numbers Food & beverage. 1. of Import & export. unemployed people will increase. No production of honey. The number of Tourist decrease. Limitation of trading between Countries. Difficulties in doing business between countries.

1.

Instability in currency Business sector Instability 1. exchange. Exchange 1. High risking the Rate
trading.

Unexpected loss.

1. All multinational business

1. Higher currency rate for new Zealand

Culture Issues

1. Language barrier. 2. Cultural differences Work nature

Services Manufacturing Retail market.

1. Differences in understanding

1.Import & Export

Global Issue: Global Warming

Consequences
Flora and Fauna disturbance: Decreasing in Manuka Plant growth. Degradation of ecosystem.

Affected Sectors

Honey Farming Sector Manufacturing

Impact

Less resources Less Quality

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. Transportation Sector. 2.operation and manufacturing The price of the product also will be increase. 2. Material price increase Food & Beverage Import & export Logistic 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. .

Affected Sectors

Impact

Industries

Malaysian Company/Econo my

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. Manufacturing Transportation sector Trading

Affected Sectors

Impact

Halt production Short in supply. Increase in material price.

Industries Malaysian Company/ Economy

Food & Beverage Logistic Price of product increase Low stock for Manuka honey. Company shut down

Global Issue: Political issue

Consequences
The farm will be shut down( i.e.; war) Economic instability Tourism activity will be affected Country differences (policies, regulation, ideology)

Affected Sectors

Tourism Sector Manufacturing Sector Services Sector The numbers of unemployed people will increase No production of honey The number of tourist decrease Limitation of trading between countries

Impact

Industries 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 Business/trading/ investment sector

Affected Sectors

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 Services Manufacturing Retail market

Affected Sectors

Impact

Differences in understanding

Industries Malaysian Company/ Economy

Import & Export 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 - Safety 2) 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 - Franchising 5) Do you think the company should expand or diversify? - Diversify = establish market = new value added product = reduce cost = honey supply is not encouraging

Conclusion
The 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.