Global Business Management: Strategies For Exporting Australian Mangoes To Indonesia

Economic Environment

Write an essay on Global Business Management.

Marketing strategy is the techniques that an organization implements in order to acquire desired goal in a market place. Every marketer should spurn out good strategies so that company the company gains profit and sales rate of the product increases. Strategies are made by scrutinizing the market sales of other companies (Wilson, et al.,2012). Competitive advantages can be obtained and an organization can increase their sustainability rate in global market place. Long term goals of an enterprise can be deduced by analyzing the initial situation of the company and the present placement of the organization in the market place postulates the growth rate of the company. The purpose of planning is to take required actions and necessary steps to develop a concrete place among the competitors. Australian mango industry wants to spread their market in Asian market place(Marques, et al., 2014). Australian mango has been successful many places. Indonesian market is not unexcavated by Australia but they want to re institutionalize their business in Indonesia. That is why the Australians now want to extend their business in Indonesia.

The team that was generated by the company for reestablishing the Australian mango market in Indonesia analyzed the market to generate the economic status of Indonesian Market and to evaluate the sale of market in past 3 years. Pricing strategy can be suggested as the economic strategy(Hartley & Claycomb, 2013). Economic strategy calculates component of accounts, market condition, paying ability of the customers, margin of trade and actions of the competitors. Economics in business deals with the financial issues that can arise in organization and management. A market involves many systems that affect the price of the product. A product rate may vary from market to market due to the disparity in valuation of money and culture of the market. Economic condition of a country influences the market condition. As an emerging market of Asia, Indonesia has the largest economy in the Asia and hold a significant position in world economy.

Indonesia is currently holding its commendable position in market place with 75.5% of the market share while Malaysia has 35.5% of market economy and Korea has overtaken Malaysia by 2.5%.

Indonesia is mostly dependent on the domestic market and feasts on the market investments made by the private conglomerates. Indonesia has great potentiality and it has not gone unnoticed by the international company (Nugroho, 2016). The key aspect of Indonesian market is production of fruits and vegetable. The price of fruit depends on the seasonal availability and production quantity. In countries of Asia, Mango is the fruit that has never ending popularity and the fruit is known as the king of fruit(Mitra, 2014). Australia wants to take advantage of the love that the Indonesians have for this fruit.  They have studied the market statistics of past 3 year and have formulated a strategy according to it.

• In 2013, mango sales from May-July were about 45%, in 2014 it was 59% and in 2015 it was 65.9%.
• Indonesia has stabilized their market which can support export market of mangoes from Australia.
• Indonesia is the closest neighbor of Australia so it is beneficial for Australia to renew their business with them.
• The population of Indonesia is nearly 250 million; this means that Australia will be gaining profit over $2000.3 million. 

Political Environment

In 2015, 70% of mangoes were sold in the market of Indonesia from May to June. 

Political analysis of the country was also necessary to structure out strategies as how to reestablish their export service (Nissinen, 2016). Indonesia is a country which shares genial relationship with other countries who wants to do export business with them. Indonesia commands considerable influence on the issues regarding economy and protection of significance to U.S interest. U.S is the greatest investor in Indonesian market as the country contributes to stability and most importantly to peace. If one is considering future outlook, Indonesia has greater prospect than any other developing countries. The issues that dominate the business climate of Indonesia are Poor infrastructure of the organizations, corruption and constant dispute between the investors (Hadiz, et al.,2013). They possess the principle values to become influential face of the global economy.  Their domestic market supplements the power they need to grow in business. The country still likes to do business internally. Their private consumption reportedly accounts over 60 percent of total GDP. The growth rate of GDP has been 4.5 percent in 2001 and in 2015 it has reached to 6.1%. in other there is growing discontent about the rising price of fruits and vegetables, but Indonesian market is stable in case of food items and their political culture shows that exporting food items can be profitable for Australian market.

Social culture of Indonesia is analogous. They are the kind of people likes to adhere to their culture. But they support multi cultural as they have strong influence of Hinduism, Christianity and Buddhism in their culture. Their official language is ‘Bahasa Indonesia’. India and China has a lot of influence in their culture. They share the same passion for the fruit mango. Australia will benefit doing business with them as the growing time of mango in Indonesia differ from the growing time of mango in Australia.

Analyzing for the strategy that needs to be chosen:

 The three key competitors who can hinder the growth of Australian market in Indonesia are Toza Juice, Indojaya Makmurabadi and Indo fruit Co. Ltd. Amongst them Toza fruit suppliers are the most ferocious marketers who exports mangoes to other countries and also has strong hold on the Indonesian fruit market.  But our Australian organization has maximum access to markets all over the world. Over 8 percentile of mango that is 4000 to 5000 tons of mangoes gets exported every year and the difference in production season has made Australia leading exporters of mangoes.

• Supplier power should be assessed in order to scrutinize their power and measure the control they have over the market(Huxley, 2013). Switching of cost keeping on view their cost can add more power to Australian company.
• The buying power of the consumers should also be taken into consideration so that the price that the rate of the product is affordable to the customer.
• Lead competitors of the market should be kept on guard. What kind of product they are selling in what rate should always be noted (Jobbe & Ellis-Chadwick, 2012). If they are supplying equally attractive product at lower rate and service then the customer are bound to incline their favoritism towards them.
• Power is the significant element to which one should hold on to. If the security level is low and the market culture of the place allows various entrants at a time then competitors can ruin the potentiality of growth of the business. Durable barriers of capital and strategies can never let the take advantage of the weakness of the organization. 

Social and Cultural Environment

Analysis of Porter’s four components of market has assisted to understand the strategies that can be undertaken by business authorities to be triumphant. Product, place, people and price intensify the level of competition among the organizational rivals. Profitability comes to those who inspects the market and strategize the price of the product considering people and the place.

According to the theory proposed by Porter price of the product should be calculated on the aspect of place and people. Indonesia is a developing country and 79.9% of people belong to mediocre background that is why the price of mango should cost 1364250 rupiah for a tray of 689 mangoes. Mangoes should be kept in warehouse and proper temperature must be employed so that the mangoes do not suffer any injury(Narayana, et al.,2012). A proper packaging need to be done meticulously and it is the duty of the logistics team to see that boxes are sealed properly. Mangoes need time to mature and the temperature plays a very important role in the ripening process of mangoes. The ultimate goal of Australian mango association is to supply quality product. Proper documentation are to be made in order arrange cargoes for export purpose, the temperature control of the cargoes need to be checked (De Mooij, 2013). Recording the date of departure of the shipment needs to be taken into account to calculate the time that it will take to reach the needed destination (Jaafar, et al.,2014). It is the purpose of the lead tea member to list down the necessary information about the procedures from packing to shipping.  

Conclusion:

Australian mangoes have great demand in the market of the world. Indonesia and Australia were involved in mango export business but due to some changes in regulation of Indonesian market the export business was terminated. Days have passed after that incident now again Australia wants to establish their export business in Indonesia. Indonesian economic cultural has tremendously changed since then; the country has flourished and has made a respected position in global market place. Mango is the fruit that every Asian country adores. Australian production time of mangoes differs from that of Indonesia, so Indonesians will be able to satiate their cravings for mango in off seasons also if Australian export business initiates again. 

Reference:

De Mooij, M. (2013). Global Marketing and Advertising: Understanding Cultural Paradoxes: Understanding Cultural Paradoxes. Sage Publications.

Hadiz, V. R., & Robison, R. (2013). The political economy of oligarchy and the reorganization of power in Indonesia. Indonesia, 96(1), 35-57.

Hartley, R. F., & Claycomb, C. (2013). Marketing mistakes and successes. Wiley.

Huxley, T. (2013). Disintegrating Indonesia?: implications for regional security (No. 349). Routledge.

Jaafar, M. N., Kamaruddin, R., Che Mat, M. H., Nordin, A. A., Farook, R. S. M., Shakaff, A. Y. M., & Zakaria, A. (2014, August). Market-driven-technology-push initiative: the application of controlled environment agriculture production system for mango-on-demand. In XXIX International Horticultural Congress on Horticulture: Sustaining Lives, Livelihoods and Landscapes (IHC2014): IV 1111 (pp. 297-302).

Jobber, D., & Ellis-Chadwick, F. (2012). Principles and practice of marketing(No. 7th). McGraw-Hill Higher Education.

Marques, J. R., Hofman, P. J., Macnish, A. J., & Joyce, D. C. (2014, August). Evaluation of temperature management and packaging options to reduce under-skin browning in’Honey Gold’mango fruit. In XXIX International Horticultural Congress on Horticulture: Sustaining Lives, Livelihoods and Landscapes (IHC2014): IV 1111 (pp. 405-408).

Mitra, S. K. (2014, August). Mango production in the world-present situation and future prospect. In XXIX International Horticultural Congress on Horticulture: Sustaining Lives, Livelihoods and Landscapes (IHC2014): IV 1111 (pp. 287-296).

Narayana, C. K., Rao, D. S., & Roy, S. K. (2012). Mango Production, Postharvest Physiology and Storage. Tropical and Subtropical Fruits: Postharvest Physiology, Processing and Packaging, 259.

Nissinen, M. (2016). Latvia’s transition to a market economy: political determinants of economic reform policy. Springer.

Nugroho, Y. (2016). Citizens [email protected] ction: Collaboration, participatory democracy and freedom of information–Mapping contemporary civic activism and the use of new social media in Indonesia.

Wilson, A., Zeithaml, V. A., Bitner, M. J., & Gremler, D. D. (2012). Services marketing: Integrating customer focus across the firm (No. 2nd Eu). McGraw Hill.