Question

Starting your own business-Step 1: business Idea, Licensing and setting the Marketing Objectives. Scenario: You and your two friends were fed-up with the routine job activities. You all were graduated from the same school and had jobs in marketing, software development and consumer electronics sales. Having good understanding of the business and the market of your own industry, three of the friends met in a coffee shop and decided to start their own business and wish to enter into international market. (Born Global) You agreed to do something in consumer electronics, since it is believed to be a good potential in international market. (or any other product/service of your choice) Task 1-13- International Business ideas, Research and Structure 1. Discuss among your friends about the licensing and registration in any of the International Market. 2. Determine the estimated startup cost of your company 3. Proposal of investments (partner's contribution) /funding from banks etc. 4. Develop the organizational structure with goals/Objective 5. Develop the Marketing goals/Objectives 6. Select the international market and briefly discuss the history, legal system culture and demographics 7. Discuss your product/service its features, USPs 8. Discuss you capabilities, structure, culture leadership, employees, technology etc 9. Develop a SWOT analysis of your product/services (PESTEL) 10. Based on your SWOT comment why you think that you should pursue this product into that specific international market 11. Who are your customers/segmentation strategies? 12. What approach you would adopt for your pricing, advertising, and promotion strategies. 13. How would you enter into the market and why (international existence/entry strategies) "Please don't focus on exporting Task 14-International Supply Chain and Distribution Strategies 14. Describe the strategic alliances strategies in distribution and supply chain strategy of your business Please do it in Detail

Make it on a restaurant.

Answer 1

Let us try to solve this problem with a specific example . As requested we would analyze setting up a restaurant in a foreign country .

1. Let us consider setting up a restaurant in India . The following licences and registrations would be required .

a) Trade license from the local municipal corporation

b) License from the Food Safety and Standards Authority of India (FSSAI) to operate a food business.

c) Goods and Service Tax(GST) and Professional Tax Registration

d) Liquor Licence

d) Business Registration

2. When we are looking at the estimated start-up cost of the company - The cost of the restaurant depends on the size and quality of the restaurant . Restaurants are classifies as casual dining , fine dining etc . Let us assume we are interested in opening a casual dining restaurant since these are the most popular . The estimated cost would be around 25 million in INR

3. Now we need to decide the source of funds . If the 3 friends are interested in setting up the business as a partnership concern then the partner's contribution , bank loans and angel funding would be the 3 avenues available to fund the restaurant business in India . Since it is very difficult to raise a loan from a start-up venture from Indian Banks , bank loans are out of question . The start-up funding needs to be arranged by the promoters or they have to seek some angel investors .

4. The organizational structure has to be flat with minimum hierarchy as even the promoter's would have to get their hands dirty initially and be involved in the business .

5. The marketing goal would be create a differentiation strategy . The Indian restaurant industry is a red ocean with cut-throat competition . The marketing objective would be to create visibility and differentiation .

6. We have already identified the international market as India which is a huge country with a very diverse population in terms of food habits ,culture , religion and social behavior . Now let us start with the first restaurant setup , since we would not have the necessary investment to setup multiple restaurants in one go . Let us look at Delhi , the capital of India as the first stop . The population is a mixture of vegetarian and non-vegetarian . The Indian palate is partial towards spicy food. So that has to be kept in mind . The legal system in India is quite slow , with no fast resolution of cases . The Indian consumer is not one to take legal action easily . Culture is dependent on religious beliefs with beef not acceptable to majority of the population . It would be advisable to stick to chicken , mutton ,lamb, fish and prawn as the non-vegetarian fare.

7. The first thing would be to develop a stellar menu . The dishes should be familiar to local tastes with special focus on the quality of the ingredients and the quality of cooking . A few exotic dishes can be thrown in for the adventurous gourmand.

The decor of the restaurant should be air-conditioned , with mellow lighting and some soft music in the background . The technology should be available like POS machines

8. The capabilities should range from the ability to provide all the menu items . The service has to be quick and clean . The Indian consumer is impatient and not willing to wait too much for an order. The kitchen staff should be selected carefully as the Indian consumer is very prone to reject a restaurant if the taste doe not appeal to them .Service and cordial behavior of the staff is an USP we can concentrate on . The portions of servings should be reasonably large as Indians are hearty eaters

9. Looking at the SWOT and PESTEL , let us look at PESTEL first .

Political - A stable government which is pro-business and welcome to investment

Economic - A burgeoning middle class with considerable disposable income

Social - Indians love to eat out , especially the younger generation

Technological - Indians are technologically savvy .

Environmental - The environmental concerns are slowly becoming important for Indian consumers .

Legal - Does not hold too much relevance to this context .

SWOT

Strengths - A great menu, diverse offerings and talented chefs

Weaknesses- An unknown entity

Opportunities- A huge population with considerable disposable income

Threats - Low entry barriers leads to a slew of competition , very difficult to establish a brand

10. In view of the sheer buyer base , it makes sense to enter India as a market .

11. The customer segmentation should be made on two bases . The first base is demographic based on income as a classifier

The second base is psychographic with restaurant going behavior as a classier ..

12. The pricing strategy has to be decided basis of secondary data of existing restaurant prices . The advertising has to be primarily social media marketing and WOM marketing and reviews on social media websites .

13. We would enter the Indian market as a Joint Venture with an Indian Partner which would help us in understanding the local market and culture .

14. The supply chain strategy is very important  . The local vendor selection has to be done carefully . The freshness and quality of ingredients supplied and prompt and timely delivery have to be the most important factors . Also in case of food delivery , logistic partners like Swiggy and Uber-Eats and Zomato need to be tied up with . This would help in tapping the extended market and increased brand visibility.