International Business Management

Questions: Write a Report presenting a current (2016) scenario, plus a forecast based on this scenario for 4-5 years to 2021 for Villierss possible entry into South Korea. This assignment will build on material from Assignment 2 by covering issues relating to potential market, industry and competitor analysis, modes of entry and other relevant factors addressed in topics 7 to 11 of the Unit and your wider research. Assignment 3 must include a market analysis, industry analysis, competitor analysis and SWOT analysis relevant to the company and the country using the information provided in the Assessment Overview This must be combined with the analysis of the environmental material in the Assignment 2 report to develop recommendations as to the mode of entry1Villiers should use for entry into South Korea. There should be recommendations as to the strategy and structure the company should use in implementing its market entry decision. Answers: SWOT Analysis Strength The demand and the reputation that the company has in the market is good and thus it act as a biggest strength of the company. Along with it the positive environment that is there in confectionery market of South Korea, adds as strength of the company (Winer and Dhar 2011). The product variety that is being offered to the consumers is huge, and the customers are happy with the price that is being offered to them. Marketing and the distribution channels are not only vast but at the same time, they are strong. Weaknesses The population of the country suffers from problems like diabetes and at the same time with the problem of high cholesterol as well. Therefore, it can be a weakness for the growth of this particular company. The company has a very less penetration at the rural market and thus most of the rural populations are not aware of it. Opportunities The increase in the growth of the globalization had provided the company with the opportunity to penetrate in the off shore market, such as South Korea. Thus, expanding the range of customers that the company has, and progressing a little bit towards growth. The companies along with producing chocolates are into production of the coffee as well and thus, it again acts as an opportunity for the company to expand and to grow. The confectionary market that is there in South Korea would definitely provide an opportunity to the company to grow. The production facilities that are there in South Korea would provide the company the opportunity to grow. Threat The company could face competition from those brands that are new into the market but offers same variety of products at a price that is affordable and the range of products that are offered by them are wide as well. The existing brands in South Korea, that are there in the market are moving towards diversification and thus coming up with new range of products, which can be a threat for the company (Sheehan 2011). Strategy Adopted The company could adopt the Growth Strategy to enter the South Korean market, which could provide the company with the huge scope to develop as well as to grow (Shaw 2011). In the year 2015, the chocolate confectionery has experienced a growth of 2%, and thus this particular strategy would therefore, help the company to penetrate in the South Korean market. Growth Strategy help those companies who are ready to modify them so as to meet the demand of the customers, therefore, with little modification in their features the Villiers could actually penetrate the market of South Korea. The company has a goal of achieving two third of their share in the next five years and thus the particular strategy that the company would adopt would help in its growth. The price skimming strategy could help the company in reaching its goal, because if at the beginning the prices of the products are high then there are chances that the company would gain profit in the future years (Kotabe and Helsen 2011). The particular strategy will help the company to cover up their advertisement and the initial production costs that are required to carry on their business in South Korea. Therefore, these two strategies could help the companies to expand and grow in South Korea. Financial Forecast in next five years Villiers Chocolates 2017 ($ Million) 2018 ($ Million) 2019 ($ Million) 2020 ($ Million) 2021 ($ Million) Net Sales $5,400 $6,780 $7,680 $8,870 $9,870 Business Realignment and Impairment charges $340 $560 $670 $870 $960 Provision for income taxes $230 $450 $530 $760 $870 Interest Expenses $550 $670 $880 $890 $990 Budget for Advertising $2,300 $3,460 $4,590 $5,670 $6,570 Net Income $67,800 $77,890 $87,900 $98,900 $99,800 Table: Financial Forecast in next five years for Villiers Chocolates (Source: Spiceland, Thoman and Herrmann 2011) Graph: Net Income of Villiers Chocolates (Source: Spiceland, Thomas and Herrmann 2011) (Source: Spiceland, Thoman and Herrmann 2011 Graph: Net Sales of Villiers Chocolates Graph: Budget for Advertising Villiers Chocolates (Source: Spiceland, Thoman and Herrmann 2011) Future Planning of Villiers Chocolates In the next five years, Villiers Chocolates should continue with distribution of product and entry strategies in South Korea. This particular company plans for expanding the chocolate brand in new taste as well as varieties with Villiers Chocolates colour wrappings. Villiers Chocolates should continue in focusing for building brand in South Korea in and around the world. It aims at becoming one of the topmost chocolate manufacturers as well as retaining the global marketplace in the near future. Villiers Chocolates requires in making essential investments for ensuring positioning strategy for the brands. It initiates ways for managing the challenges for future analysis purpose. Villiers Chocolates mainly plans for indulging in merchandising as well as programming events in the next five years. It works closely with retail customers as well as watching brand performance at higher prices potential in case of Villiers Chocolates candy. Reference List Albrecht, W., Stice, E. and Stice, J. (2011).Financial accounting. Mason, OH: Thomson/South-Western. Dyckman, T., Magee, R. and Pfeiffer, G. (2011).Financial accounting. [Westmont, Ill.]: Cambridge Business Publishers. Kotabe, M. and Helsen, K. (2011).Global marketing management. Hoboken, N.J.: Wiley. Libby, R., Libby, P. and Short, D. (2011).Financial accounting. New York: McGraw-Hill/Irwin. Shaw, S. (2011).Airline marketing and management. Burlington, Vt.: Ashgate. Sheehan, B. (2011).Marketing management. Lausanne, Switzerland: AVA Pub. Spiceland, J., Thomas, W. and Herrmann, D. (2011).Financial accounting. New York: McGraw-Hill/Irwin. Winer, R. and Dhar, R. (2011).Marketing management. Boston: Prentice Hall.