International Business & Globalisation - the Marble Poultry Farm - Case Study Example

The Marble Poultry Farm Name Course Name and Code Date Executive Summary The fundamental objective of the founders of Marble Poultry Farm is to meet customers’ demands and develop resilient customer relationship, create employment opportunities in Japan, contribute to the development of the country’s economy. From the 8th century patriarchal and monogamous family have been ubiquitous in Japan. Japan’s education method was instrumental in its recovery as well as rapid economic growth after the Second World War. Japan has a statutory kingdom as its form of government. Nonetheless, the Monarch is only a mere ceremonial figurehead has limited powers. Japan does not impose trade restrictions that are specific to commercial presence. In Japan the minimum wage law is based on the local cost of living, which differs from one region to another. The maximum working hours are eight hours per day and 40 hours per week. It is estimated that Japan has a labor force of about 65.9 million people; this was in 2010 that was 59.5% of the total population of 15 years and above. Japan is an over populated country therefore it lack equilibrium between demand and supply and in most cases the suppliers do not satisfy the consumers. There is a large market for chicken, eggs and meat since the products are consumed by most of the people in Japan. Objective statement The Marble Poultry Farm main mission it to be a renowned leader in production of chicken and egg. Business Concept The fundamental objective of the founders of Marble Poultry Farm is to meet customers’ demands and develop resilient customer relationship, create employment opportunities in Japan, contribute to the development of the country’s economy. The key objective of starting Marble Poultry Farm is to reduce poverty, malnutrition as well as unemployment issues in the country. Besides, we would like to offer quality products to customers along with maintaining the supply sufficiently. Product analysis The farming company Marble Poultry Farm is registered according to the Resolution N409 by the Head of the Administration dated 1 July 1988. The Marble Poultry Farm is a legal entity that was founded by a family. The field of activities is production as well as sales of agricultural products, processing of agricultural raw materials as well as trading. The Marble Poultry Farm is located in Nagano, has an allotted piece 4 hectare piece of land for poultry breeding. Marble Poultry Farm poultry house is made of bricks and has a total area of 4.395m2 including building extensions. The foundation is composed of stone, wooden floor slab and the roof is made of iron sheets (Condon & Masumoto, 2011). The building gets water from an artesian well, has ventilation, sewerage, heating as well as lighting systems. The technical equipment of Marble’s Poultry Farm as well as machinery for making down-and-feather raw material is priced at US$2000 as of 19.12.2013. The main activity is production of eggs and chicken. The farm also keeps chicken for deplumation of feather and further making of down-and-feather raw material as well as poultry slaughter for meat at the end of the deplumation period. The technology cycle takes a maximum period of 6 months. Marble farm operates throughout the year which makes it more profitable compared to its competitors (Melville, 2012). Currently, production capacities stand at 30-35% of their performance efficiency since we have inadequate funds to purchase breeding flock as well as poultry house reconstruction. The key fodder is compound poultry from manufacturers. In addition to it, pasture fields are used to feed the poultry. The supply of fodder, poultry house cleaning, down deplumation, poultry slaughter as well as bird processing are done manually. Marble Poultry Farm distributes chicken and eggs around Nagano city, country and globally. The main motto of Marble Poultry Farm is quality assurance (Hamilton & Webster, 2012). We do not take chances when it comes to quality (Condon & Masumoto, 2011). To guarantee high quality we take good care of our chicken and eggs. We vaccinate our poultry therefore, we supply chickens and eggs that are free from any type of jorum that can lead to harmful diseases (Melville, 2012). The main income for Marble Poultry Farm comes from sale of chicken to slaughterhouses and plants. Marble Poultry Farm offers some additional facility to its customers that are not offered by other suppliers: We deliver our products to customers through our own transport means at a low transportation cost. In case any dreadful product is identifies by our customer we change it Processed meat is supplied when a customer requires it We give limited credit facilities. Globally this business is facing cut-throat competition. However, there is a great prospect that it will succeed since most of its competitors are not in position to deliver adequate supplies of the product. Particulars Cost Total cost Farm Warehouse Transportation Chicken Egg Food Utility 30,000 50,000 2,000,000 1,000,000 50,000 50,000 20,000 5,000,000 Social cultural effects From the 8th century patriarchal and monogamous family have been ubiquitous in Japan. If a wife could not bear children the husband would be prompted to have a concubine and the offspring would succeed to head the family therefore securing its continuation (Delios, 2012). In addition, in extreme cases that neither the concubine nor the wife bore no child then the family head was allowed to adopt a successor. The male offspring was required to succeed in heading the family stays with his parents after he has married. He takes the headship of the family and ought to take good care of the parents when they get old. Most Japanese do not identify themselves exclusively as adherents of a single religion but they incorporate elements of different religions in a syncretic fashion regarded as Shinbutsu Shugo. Additionally, Japan gives full religious freedom therefore giving chance to minority religions such as Islam, Sikhism and Christianity to be practiced. Japan’s education method was instrumental in its recovery as well as rapid economic growth after the Second World War (Delios, 2012). At elementary and the lower secondary levels education is compulsory (Ussery, 2011). A majority of students progress voluntarily to the upper secondary school level, however private education is common at upper secondary as well as university levels. Japan has literacy rate of 99.0%. The official language is Japanese (Condon & Masumoto, 2011). Japanese is the first language in about 99% of the population but students learn English in schools. Japanese aesthetic is characterized by a set of ancient ideals, which include Sabi, Wabi as well as Yugen. Among other ideals they underpin Japanese aesthetic and aesthetic norms on what is considered beautiful or tasteful. The idea of aesthetic is considered an important part of daily life. Political factors Japan has a statutory kingdom as its form of government. Nonetheless, the Monarch is only a mere ceremonial figurehead has limited powers. According to the constitution the Ruler is considered“a sign of state and unity of people”. Prime Minister has powers with the elected Diet member. The present Emperor of Japan is Akihito. Naruhito, will be the next Emperor of Japan. Social Liberal assumed power in 2009 this was after about 54 years of Liberal Democratic Party’s rule. The current Japan’s Prime Minister is Naoto Kan. The leader of the opposition party is Sadakazu Tanigaki. During the Meiji period in 1868 Japan started economic expansion. Meiji rulers incorporated the model of a free market economy embraced North Americans and British forms of free enterprise capitalism. Most people from Japan went to study abroad and Western scholars were hired to teach in Japan. Most of today’s business enterprises started at that time (Mente, 2012). Japan stood out as the most advanced nation in Asia. Japan does not impose trade restrictions that are specific to commercial presence. It also does not have scheduled trade restrictions on commercial presence for warehousing, storage as well as customs clearance agent services. Nevertheless, it has reserved the right to impose restrictions on transportation services. Currently, Japan is a member state to the United Nations. Japan is seeking permanent membership in the Security Council since it is a non-permanent member. The implications of Japanese politics in the poultry business are very slight. However, the business is likely to be affected most during electioneering period since it is likely to experience decline in sales (Condon & Masumoto, 2011). The outcome of election also influences the business since that is what determines the policies that will be instituted by the new government (Delios, 2012). However these problems can be solved by having diversified products as well as ensuring that there is a large market for products. This can entail exporting the products to other countries in the world. Legal forces Conditions of employment ought to be set out clearly in the employment agreement that is given to the employee. In Japan the minimum wage law is based on the local cost of living, which differs from one region to another. The maximum working hours are eight hours per day and 40 hours per week (Condon & Masumoto, 2011). When an employee work for six to eight hours per day he is supposed to have a 45-minute break and when he work for eight hours a day he is entitled to a 60 minutes break (Gilligan & Hird, 2012). According to the Labor Standard Act, the minimum period of annual leave that is based on an employee’s rank. There are various types of unpaid leave offered by law, they include child care leave, maternity leave, family care leave as well as nursing leave. According to the Labor Standards Law article 4, it prohibits discrimination on pay based on gender and article 3 of the same Act prohibits ethnic, national and religious discrimination by employers according to work conditions. The Consumer Contract Act of 2000 not only regulates unfair consumer contracts but also misleading and aggressive conduct, unfair commercial practices (Delios, 2012). Japan has a Trademark Act of 1959. According to the Japanese trademark law registered can establish trademark right and examination procedure is important for trademarks to be registered. The main issue in this case is employee to employer relationship. However this has been solved by ensuring that we adhere to what the regulation requires from the employer. Labor forces It is estimated that Japan has a labor force of about 65.9 million people; this was in 2010 that was 59.5% of the total population of 15 years and above (Gilligan & Hird, 2012). The structure of Japan’s labor market witnessed gradual change in late 1980s. The trend continued throughout 1990s. Japan labor market structure is affected by declining population, growing numbers of women, workers increasing education level as well as substitute of postwar baby boom generation (Condon & Masumoto, 2011). The main impact to Marble’s expansion effort is shrinking population in Japan. However, this problem can be overcome by developing skills among the upcoming generation. Microenvironment analysis a) Industry analysis Japan is an over populated country therefore it lack equilibrium between demand and supply and in most cases the suppliers do not satisfy the consumers. There is a large market for chicken, eggs and meat since the products are consumed by most of the people in Japan (Delios, 2012). There are also a number of restaurants that sell chicken products, for instance, Tokyo Fried Chicken and Kentucky Fried Chicken. Almost everyone requires chicken and eggs. Eggs are ingredients of bread, cake and omelet etc. therefore, bakeries, restaurants, community centers and hotel require chickens and eggs. Since various customers have high demand for chicken and eggs there is a high prospects that there is a high demand for chicken products (Gilligan & Hird, 2012). Furthermore, research shows that chicken meat is very important to human body since it does not medical issues compared to beef. Eggs and chicken are very nutritious and doctors have always prescribed it as nutritious food. According to statistics families require not less than four eggs. Most children are love eggs. Therefore, Japan Marble Poultry Farm has great prospects of being successful in distribution of chicken and eggs. The products are distributed to household customers, bakery, hotel, restaurant and cookery. The Marble Poultry Farm operates on a regional and export market as well (Delios, 2012). Marble Poultry Farm competitors main competitors distribute eggs and chicken regionally. The Marble Poultry Farm competes with these poultry farms. The demand for eggs and chicken is comprehensive. Since there is a high demand for chicken and eggs but there are few suppliers the demand for eggs and chicken increases day-by-day (Condon & Masumoto, 2011). Therefore, Marble Poultry Farm has great potential for growth in future. Marble Poultry Farm major competitors are Tokyo Farm, Nagasaki Poultry and Nagoya Poultry. Marble Poultry Farm competitors mainly deal in chicken meat and eggs. Unlike, its competitors Marble Poultry Farm has diversified in a number of areas such as feathers and chicken manure (Gilligan & Hird, 2012). This gives Marble Poultry Farm an advantage over its competitors since they get constant income from areas that are untapped and the same time Marble does not experience competition in manure and production of feathers. Competitive strategy using Porter’s 5 forces Threat of new entrants- there is a high likelihood that this sector will have new entrants in the near future since the chicken products have a large market but there are few suppliers of these products (Condon & Masumoto, 2011). Therefore this will act as a pull factor to new entrants. At the same time these entrants are likely to quit since poultry farming involves a lot of work as well as costs that can be demanding to the new entrants. Buyers have a low bargaining power since there is a large market but the products are few therefore this gives a chance to the sellers to manipulate the consumers compared to when there would be many suppliers. However in future consumers will have a high bargaining power since there is likelihood that there will be many suppliers of chicken products (Gilligan & Hird, 2012). Suppliers have a low bargaining power since there are many suppliers but there are few buyers of their products. This gives the buyers a high bargaining power over the suppliers. Therefore, the buyers can get the consumables at a discounted price. Suppliers are not in labour unions but the buyers are in labour unions (Delios, 2012). There is efficient distribution of inputs owing to high competition that customers experience. There are also other substitutes to chicken products but chicken is most preferred by many people since it cheap. On the other hand, there are various suppliers of chicken feeds. These suppliers supply different types of chicken feeds at varying costs this gives the buyers freedom to choose inputs that are cost effective hence giving them a chance to get more profits from the sale of the products. Intensity of competitive rivalry This is the determinant of the competitiveness of an industry. The Marble Poultry Farm has both an online and offline presence. Online presence helps the company to get international orders for its products (Delios, 2012). Therefore, the company can sell its products to other countries owing to its online presence. This has enabled the company to export its products to other nations, which could not be possible in the absence of internet. Marble Poultry Farm has a high advertising cost since it advertises its products globally (Condon & Masumoto, 2011). Marble Poultry Farm has a powerful competitive strategy since it has diversified in production of feathers and at the same time it also sells manure (Gilligan & Hird, 2012). Marble is able to compete with its competitors effectively since it acquires it inputs at a lower price compared to its competitors therefore they give their customers discount according to the sales volume. Consequently, they end up having higher sales volume compared to their competitors. b) Company SWOT analysis The Marble Poultry Farm has a competent and well trained staff. Its staff is trained on an array of issues that range from animal husbandry to agribusiness. Its staff has been instrumental in the achievement of most of its targets. Its staff has helped it to surpass it targets. The organization has a strong management system that has helped in effective implementation of its objectives. Consequently, this has helped in the achievement of its objectives. The company has diversified in its product variety. The organization has lost its best workers to its competitors such as Tokyo Poultry. In some cases the poultry has been attacked by disease that has led to their deaths. The cost of vaccination is also high this has led to increased operational cost. Marble Poultry Farm has advantage of wide market coverage as well as high demand for its diversified products such as feathers and manure. The company faces the threat of new entrants. New entrants will lead to decline in profitability of their products. Owing to high inflation rates, there will be high chances of increased cost of production since the prices of inputs will be high. References Condon, J., & Masumoto, T. (2011). With respect to the Japanese: Going to work in Japan. London: Nicholas Brealey Publishing Delios, A. (2012). International business: An Asia Pacific perspective, 2nd Ed. New York: FT Press Gilligan, C., & Hird, M. (2012). International marketing (RLE International Business): Strategy and Management. London: Routledge Publishers Hamilton, L., & Webster, P. (2012). The International business environment. Oxford: Oxford University Press Melville, I. (2012). Marketing in Japan. London: Routledge Publishers Mente, B. (2012). Japan: Understanding & dealing with the New Japanese way of doing business. London: Cultural Insight Books Ussery, H. (2011). The small-scale poultry flock: An all-natural approach to raising chickens and other fowl for home and market growers. Chelsea: Chelsea Green Publishing Read More