Camel Cookies Analysis - Case Study Example

Name Institution Tutor Date Introduction Internationalization of business is definitely one of the significant practices in the competitiveness business environment. In contemporary business world, it has become important to have a global strategy that can assist a firm to move to the international market. Internationalization of business is significant based on the facts that it enables firms to take advantage of the opportunities across borders (Wilson, p1). Additionally, internationalization is important for businesses based on the fact that it offers prospects not only for expansion of revenue but also the exchange of ideas which facilitates the competitiveness of a businesses in the UAE. Camel cookies is a unique product that has been recognized in the legacies of ancient Arab. Today the product is a food fashion in the United Arab Emirates. Many customers have recognized the quality that is linked to the product and they have always been repeat customers. This makes the product to be viable for the international market. There is need to introduce the product to other international markets. The first selected market for the Australian market .The company needs to penetrate the Australian market with its product. This paper seeks to examine various key issues to be considered in the global expansion of camel cookies to the Australian market . Company Profile Camel cookies is one of the renowned cookie bakeries in the United Arabs Emirates today. The company is located in Abu-Dhabi. The first bakery was opened in the year 2013 and since then the company has greatly expanded its operations. The company begun to award franchises since July 2014. Both single and Multi-unit dealer opportunities are also available. The average time of running is between 4-12 months. Additionally, the company allows the existence of co- branding opportunities (camelcookies.com, 2015). What makes the company special is its ability to maintain Arabic delicacies despite of the changes in lifestyle that have taken place in the Arabic world. A key ingredient in the product that makes the company unique is the use of camel milk in the backing of cookies. Goals of the Company The aim of the company was to develop a product that can be bridge the existing gap between the Arabian heritage and the western legacy. The company uses traditional flavors of the gulf which include cardamom, camel milk, Arabic coffee, Saffron, gooey confection in order to make cookie delicacies (camelcookies.com, 2015). The objective if the Camel Cookie Company is to deliver quality cookies that can fulfil the demands of the emirates. Consequently, the company aims at delivering their products to the Abu Dhabi region to other valued customers in the Abi Dhabi region and other regions of the emirates (camelcookies.com, 2015). Another objective of the company is also to be present at regional and local festivals and events in order to market the charm that exists in the enchanting and tasty cookies (camelcookies.com, 2015). Mission of the Company The mission of the company is always serve customers with the best flavors and recipes of cookies that are made using skilled hands that have innovative and social care .The company also aims to the leading firm producing a variety of cookie styles with the use of the camel milk(camelcookies.com, 2015). Analysis of the Product The main product to be offered by the company is the camel cookies. As noted earlier, camel milk is the key ingredient that makes the product offered by the company to be distinctive from other cookie products. For a long period of time the camel has been acknowledged as a heritage of honor for the Arabian culture. Consequently, integrating the camel milk as the main ingredient is the product makes it have the Arabic touch. The product will be offered in a variety of styles. Some of will be supplied with chocolate filling and then supplied with the camel milk. Other flavors will be prepared using Arabic flavors such as cardamom, saffron, Arabic coffee and other international flavors. Some of the existing cookie flavors include; locus cream, double chocolate, signature, camel mellow, Arabian coffee, original cookies and red velvet. Environmental Assessment for entering the Australian Market Social cultural Forces In order to conduct business in Australia, understanding the social cultural forces is very significant. According to the cross cultural management theory propagated by Hall and Hall (1973) the most significant aspect of an effective cross- cultural management organization is to ascertain that there is an effective cultural understanding and communication. This makes it possible to operate effectively in the new environment. Various key social cultural factors have to considered; this include; Social cultural components Aesthetics is a fundamental aspect in Australian culture. Many people value products and places that are attractive in nature. People in the UAE also have similar views concerning aesthetics. Places and products that are highly attractive are the most valued based on the fact that they appeal to the eyes. The common value of aesthetics between Australia and UAE provides the advantage of the ability to attract and capture the clients with products that are appealing and good to the eyes. When looking at the attitudes and beliefs of both regions it can be stated that there is a great variation. The attitudes of the Australians are mainly derived from the Western culture and from their previous colonisers which is the British. The UAE on the other hand is mainly dominated by the Islamic culture which is also derived from the key religion; Islam. Religion is a significant concept for both societies .When a comparison is made between the two countries, it can be stated that Islamic religion in the UAE is much more dominant and adhered to as opposed to other religions. On the other the, in Australia various religious inclinations exist. As a result no much focus is placed on religion. Business Culture According to Hofstede’s cultural dimension, Australia is ranked as second after the United States among the individualistic nations. Countries in the UAE and the Arabic nations are ranked in the low level areas of individualism, this basically implies that they possess attributes of collectivism. What is evident from this ranking is that the target market Australia posses different common cultural attributes when compared to Australia. Being an individualistic society, the Australian culture is a society whereby the interest of the individuals are more dominant than the interests of the group. In most cases the existing links and ties between people are loose. The UAE culture on the other hand characterized by a society where there are strong ties between people and people prefer to work collectively as a group. Due to the existing cultural differences, entering the Australian market will require a change of cultural perspective in order to effectively capture the market. Consequently, when establishing the cookie bakery in Australia, there is need to adopt a more individualistic approach to business. Hofstede proposes that in order to do business in an Individualistic society there is need to maintain a certain business etiquette. Some of the key attributes that should be adopted include speaking your mind. Additionally, it is essential to treat all customers equally. The basis of relations should also be grounded on mutual advantage. It is also essential to ensure that the basis of relationships is grounded on mutual advantage as opposed to a situation whereby one part id out to exploit the other party. Therefore maintaining respect is a very vital concept when conducting business. Hofstede also proposes that in an individualistic society, the task is considered to be more important as opposed to maintaining a good relationship. This basically implies that when conducting business in Australia, it is essential to effectively meet the objectives of the task given as opposed to having developing a good relationship for instance with the client and yet the task is not completed as intended (Hofstede, et al , p 293). It is however essential to take note of the fact that although Australians are more individualistic, they do not need long standing personal relationships in order to begun business relationship or partnership. A business partnership can be initiated immediately even without a long standing relationship. In an individualistic society people also focus on looking after themselves and their immediate family. One of the typical distinction that exists between a collective and individualist is that in collective mindsets, relations are very significant then the business. As a result business is often conducted among family and friends. Within the context of the individualistic mindset other spheres of life such as friendship and family are separated from business activities. A basic advantage of the individualistic society such as Australia is that establishing a new trading partnership and finding a working relationship is easier. This is because people do not identify themselves collectively as a group and therefore making an interaction with other business partners to be much easier. In the context of a collective society such as the UAE people tend to identify themselves as a group. This basically implies that developing business links is quite difficult. It can therefore be stated that penetrating the Australian market can be much easier if the Camel cookie bakery can identify reliable partners who are willing to work with the company. When it comes to business communication, Australians are usually very direct in their communication. Consequently, making business decisions is not a difficult task for them. When it comes to making business meetings and appointments in Australia, the process is relatively easy to establish. In addition, the appointments are to be made on time as scheduled. Economic and socio-economic forces Understanding the economic and social –economic forces is also very significant. This makes it possible to take advantage of the existing social environment and to develop value propositions and economic opportunities. A number of economic and social- economic forces exist in Australia. Australia has a reputation of being one of the most liberal trade regimes in the world. Kelly(p57) highlights that Australia adopted the liberal global trade system as a fundamental step of promoting global business. It can therefore be stated that having liberal business approach has been beneficial in establishing new global businesses opportunities. Introducing the Camel cookies to the Australian market will therefore be easy in Australia Australia being the fourteen largest economy in the world, makes it a good destination for introducing business ventures that are bound to continue expanding the economy. As one the nations that was not affected by the recent financial crisis, it can be stated that doing business in Australia will be definitely be profitable due to the sound economic stability. Australia has also managed to attract investors from across the globe. This basically implies that establishing a new venture in the country will be welcomed. Also in the recent years Australia has experienced an increasing number of immigrants. Australia is a multi-ethnic society. Subsequently, the Australian government has demonstrated commitment to ensuring racial and ethnic inclusion. The country has a high number of expatriate workers at most levels of the economy. This basically implies that a larger market of people from different cultures exists which is a fundamental aspect in marketing the products to other regions. Additionally, due to the existence of many foreign workers at various levels of the economy, it is possible to get a diversified labour force from the number of immigrants drawn from across the globe. Also, due to the existence of a multi-cultural social environment, Legal Force Australia can be described as an appealing business hub due to the existence of a few barriers to entry. Additionally , the corporate and legal framework in Australia is a familiar one therefore making it easy for new international ventures to understand the required regulations . Some of the key legal requirements include; Competition laws; In order to ascertain the existence a healthy competitive business environment, the statutory framework exists to ascertain that trading is conducted fairly for the consumers and the business. The framework is implemented and prescribed by the Australian Competition and Consumer Commission (ACCC). Product liability regulation: Regulation of product safety is one of the key requirements that are regulated by the National statutory framework. The standard is devised with the objective of ensuring that no harmful products are marketed to the consumers. Based on the fact that the Camel cookies company key product is a food for human consumption there is need for the bakery to comply with this particular regulation. References Camelcookies.com, Camel Cookies Company. 2015. Hofstede, Gert , Jonker, Catholijn and Tim Verwaart. Individualism and Collectivism in Trade Agents. Springer. pp. 492–501, 2008. Hall, T, 1979, Beyond culture, New York, Anchor press Kelly , Paul. The March of Patriots: The Struggle for Modern Australia. Melbourne Univ. Publishing, 2011 Wilson , Karan . Encouraging Transnationalism, 2015. p1-7 http://www.gvpartners.com/web/pdf/Chapter_2_Wilson_FINAL.pdf Read More