business strategy: exporting rice to singapore
TRANSCRIPT
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Khmer JasminePresenters: Norveakmullika Lim
Souyada LakSovanna Suos
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Export Rice to Singapore
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CONTENT
Introduction
PESTEL Analysis
SWOT Analysis
Business Strategy
Risks management
Performance Evolution
Backup Plan
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What is our product?
Jasmine Rice
Cambodian Jasmine rice is known as the “ World’s Best Rice ” for 3 years in a row
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Singapore
Rice is still the primary food which Singaporeans consume
In the last 5 years, the sales of rice had increased by 80%
“Dietician Gladis Lin said either white bread nor white rice are particularly healthy ”
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Singapore’s PESTEL Analysis
Political Factors: Political risk is quite low Democratic country Political stability translated to a peace and better standard of living Taxation : MFN duty rate 0%, Sales tax 7% Exchange rate: USD1 = SGD1.44 Economic Factors: Country’s per capita is the highest in ASEAN Corruption-free environment that supports business sector Legal and Financial business frameworks help as well
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Sociocultural factors:
Face and Respect: Having face indicates personal dignity
Business protocol and meeting: shaking hands is not the case with older
Strict rules of protocol that must be observed Personal relationships are the cornerstone of all
business relationships
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Technological Factors:
IT infrastructure in Singapore is praise-worthy Multinational companies to set up regional operations
in Singapore
Environmental Factors:
Tropical climate with a lot of rainfall throughout the year
Shortage of water Singapore rank number 4 in term of Environmental
Performance Index (EPI)
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Legal Factors:
Anti-corruption law are strong and well-enforced Singapore’s judicial system has been recognized as
one of the fairest and most efficient in Asia
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SWOT ANALYSISSTRENGTHS
• Connection with English, Chinese and Malay speaking world
• Open economy, strong governance for businesses
• Reasonable bandwidth and payment of infrastructure
WEAKNESSES
• Limited size of domestic market
• Highly fragmented market due to language segmentations
• Small size of production company
OPPORTUNITIES
• High level of GDP per capita• Potential in establishing
partnerships
THREATS
• Keen competition for consumer attention from foreign content
• Small talent base• Ageing population
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Business Strategy
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Business Strategy
Vision Mission Entry Mode Supply Chain and
Distribution Types of Licenses Location
Target Customer Competitor Product
Differentiation Financing Advertising Promotion
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Business Strategy
Vision: “ To be the best quality Cambodia rice importer and distributor in Singapore.”
Mission: To assure the best quality rice to our customers by meeting the standard, provide all accessible information regarding buying decision, and be the quick service provider.
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Entry Mode
Partnership: partner with local business
Late mover
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Supply Chain & Distribution
Based manufacture in Cambodia
Ship through Sihanouk Ville port
Arrive at Singapore port
Store at warehouse
Distribute to wholesalers and retailers
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Types of Licenses
Stockpile (RSS)
To import and carry on
wholesale dealing in stockpile
grade rice
White rice, basmati rice,
parboiled rice, and ponni rice
Non-stockpile
To import and carry on
wholesale dealings in
non-stockpile grade rice
Brown rice, red rice,
cargo rice, and wild rice
Wholesaler
To carry on wholesale dealing in
rice
For merchants to
carry wholesale
dealing within Singapore,
import is not permitted
Manufacturer
Import for Manufacturin
g
Only 100% broken rice
for manufacturin
g purpose
Re-Exporter
Import to re-export
For re-export only and shall kept in Free Trade Zone
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Stockpile Grade Rice Non Stockpile Grade Rice
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We choose RSS (Stockpile Grade Rice) license since our product is premium Jasmine rice.
Minimum import amount required is 50 tonnes per month.
The government offer the warehouse (SSW= Singapore Storage and Warehouse Pte Ltd) for 1 year.
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Location
We choose the location:• Has easy access to the transportation• Near the warehouse
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Target Customer
Target customer: Chinese people (74.3%) Other people (3.3%)
We do not enter into Halal market.
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Competitors
There are 81 companies that license in RSS. Main competitors:
Rice import by Thai companies Rice import by India companies
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Product Differentiation
Import premium long grain rice, Jasmine The best quality with the high standard Quick service Free consulting regarding rice information to
anyone Provide competitive price
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Cost & Financing
License fee: $50 Office: around $60,000 per
year Warehouse: around $24,000
per year Staff (6 people): around
$211,000 per year Advertising: around $7,000
per year Cost Estimate for
the first year: $ 518,050
The expenses will be shared with the local partners.
Plan for getting loan for the business in case of emergency.
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Advertising & Promotion
Advertising budget will be spent in order to raise brand awareness.
Promotion: we will give the big deal of discount for the wholesalers and some discount for retailers.
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Risk Management Plan
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Identify risks Exchange rate
Transportation and logistics
Risk Management Up to date with exchange rate
Must understand international logistics & our legal rights.
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Risks Legal & policy
Unforeseen
International laws and regulations change frequently.
contract with a legal firm
Natural disaster. News. Singapore government
protection program.
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Cultural and language
visit to Singapore: better understanding of market place and the culture differences
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Business performance evaluation
Comparing the results of initiatives to objectives and evaluating to what extent we met our targets Operation( sale & profitability) Market ( market share & market ranking by sales volume) Customers ( rate of customer acquisition, customer
satisfaction) Products ( quality) Internal ( employee job satisfaction & training levels) Financial ( profit margin)
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Backup Plan
When performance evaluation shows that our performances does not reach the set objectives.
Increase brand awareness Check current quality control Improve staff trainings
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Khmer Jasmine“ To be the best quality Cambodia rice importer and distributor in Singapore.”
“Ensure quality and satisfaction”