Assignment Sample on Feasibility of International Trade

The main focus of this report is to collect information about the organization and the product, which are Mr. Kipling cakes. Observing the information and objectives the market research will take place to observe the facts such as research politics, culture, competitors, regulation and legal, economy and environment or technology. Accordingly, the risk analysis and cost pricing analysis are to be analyzed for better information about the product.

Mr. Kipling is an organization that focuses on home-baked cakes; this organization considers that the authenticity of baking is directly pointing to homemade cakes. Mr. Kipling was created by Hovis McDougall in the 1960s and then later it got famous slowly (Mrkipling.co.uk, 2021).

ii. Product information

Mr. Kipling’s cakes are especially known for their taste, sugar plays a very important role in baking cakes it makes the cake fluffy, soft, and spongy. Mr. Kipling’s cakes are diet cakes; one can stay fit even if they eat Mr. Kipling’s cake. The energy level, kcal, and fats are measured and mentioned in the pack of the cake with some attractive traffic light signals design.

The objective of conducting this report is as follows:

● To observe the political measure of the selected market

● To discover the cultural and social background of the selected market

● To interpret the competitors available in the market

● To evaluate the legal and regulations of the market

● To detect the economical statement of the market

● To examine the environmental and technological availabilities of the market

Market selection research is done by selecting the particular market to invest in and potential in the market and the political terminologies of the market in the past few years to analyze it better. Political criteria for market selection are different in different countries, such as Cuba being a communist political party focused on financial investments and resources. As per the view of Plantin and Punathambekar (2019), infrastructural turn signifies relation with digital media.

Argentina is a country where the government deals with the creditors for the reconstruction of their foreign debts which is a big step taken by their government that shows meaningful growth. Brazil is a multi-party democracy and Brazil has always maintained the growth through the period. It is noticed that it is the world’s third most attractive target for direct foreign investments. Whereas, Jamaica and Zimbabwe are countries where political parties most of the time have disagreements.

Cultural traits play an important role in the selection of a market as it signifies some points about the culture of the country. The language, which is preferred in the country, the religion of that particular country, and culture, are given the main preference and their ethics and values. Cuba is a catholic country however; there is another religion, which is Santeria. As cited by Cano, Campo, and Gómez-Montoya (2017), the market of a company is not restricted to any particular area. Argentina’s social and cultural norms are very good and the people living there have a good working face. Brazil and Jamaica are those countries whose business cultural norms are very delighted; Brazilians always show a positive attire and friendliness in the business dealings. Whereas Zimbabwe’s business culture is unique, it is hierarchical in nature when it comes to business deals.

Competitors play an important role in market selection as it signifies the competition in the market. Sometimes the competitors can be of some other field but still can compete, as they can take place and can steal customers even if they serve different products or services as compared to the other company. Cuba mainly deals with lubricants, mineral oils, foods, machinery, equipment related to transportation, and chemicals however, Cuba lacks in competition. According to Mahoney and Weyl (2017), consumer-leading markets are helpful for market power. On the other hand, Argentina is known for its growing competition, which helps in the development of the market. Brazil has a competitive agricultural industry, whereas in Jamaica the higher authorities encourage competition, and Zimbabwe is organized in terms of business.

Regulations and legal are very essential and necessary for selecting a market because it looks after the proper function of the economies and societies of the particular country. These regulations and laws are made for business, government, citizens, and civil societies for functioning properly. As per the view of Magnani, Zucchella, and Floriani (2018), international growth is at risk due to a lack of knowledge about foreign markets. Cuba is a state, which has civil laws, which gives main significance to the written code as compared to that of precedent assuming it to be the source of law. Argentina has good securities in the market and has a direct connection with the activities performed. Jamaica has efficient functioning while Zimbabwe has enforcement of laws in the market.

The economy is considered as the most important point in the selection of the market as it distinguishes and evaluates the economic status of the country, which includes investment policy, commercial policy, foreign policy, industrial policy, monetary policy, and other policies in terms of economy. According to Niezgoda and Kowalska (2020), change in lifestyle and willingness serves the use of economic services. The economic condition of Cuba is well organized as the government of Cuba runs many industries in the employment of many people; it is a dominated economy by state-run enterprises. Argentina’s economic status is improving steadily with time, whereas Jamaica’s economy is very bad while Zimbabwe’s economy fluctuates with time.

Technologies and environmental effects cannot be predicted as they can bring opportunities, risk, and even threats to business sometimes. Technology and the environment help in the improvement of products or services and even though sometimes it helps in creating some new products or services that can help in development. As per the view of Hamzeh and Xu (2019), entry of foreign markets decreases the importance of selection made by the country. Argentina had a good technical revolution over time in the agricultural field as well as Cuba utilizes every technology and environment. However, Jamaica, Zimbabwe, and Brazil, all lack technologies and are in debt because of their lack of development and environmental issues.

Initiating business in Cuba, Argentina, Brazil, Jamaica, and Zimbabwe, companies face several risks and problems. It is essential to know in which way politics play a role in those mentioned countries at the local level and effect on the starting of business, unstable governments cannot give proper protection. Awareness of the agreements between own county and business country, which affects the growth of the business. As stated by Bastchen, Silva, and Borsato (2018), lack of experience and skills in business is a big risk to start a company in a new country.  Fluctuation in currency value can decrease the chance of earning and profit, knowing about the currency is important to start a business in a new country, low infrastructure and bad transportation affect the enlargement of the cake company.

The average price of Mr. Kipling cakes in the UK is around £2.75, due to fluctuation of currency it will be £2.55 (Mrkipling.co.uk, 2021). As opined by Putri and Desi (2020), figuring of order costs is a procedure to determine the cost of manufacture by the products ordered by buyers. This value is not so much higher than the price of Cuba, Argentina Brazil Jamaica, and Zimbabwe, and the quality of Mr. Kipling’s cakes is better than cakes from those countries.

After taking a look at all the terms, it is advised that Mr. Kipling can think of enlarging their company in these countries but in some points, it can even have some drawbacks.  As most of the countries have lack of technologies and economic growth is also not that good whereas, apart from these terms other terms can help in the development of the company.

This report concluded that the terms which are determined can help in market selection in countries like Cuba, Argentina, Brazil, Jamaica, and Zimbabwe and each term is discussed which helps in market selection such as political issues, the culture of the country, competitors available, regulation and legal and technologies and economic status of the country. The risk, cost, and price analysis are also done to understand the financial status of the product.

Bastchen, G., Silva, F., & Borsato, M. (2018). Risk management analysis in the product development process. Procedia Manufacturing, 17, 507-514. Retreated from https://www.sciencedirect.com/science/article/pii/S2351978918312071/pdf?md5=29650d83f97a92ffe7f6b99673cc2f25&pid=1-s2.0-S2351978918312071-main.pdf

Cano, J., Campo, E., & Gómez-Montoya, R. (2017). International market selection using fuzzy weighing and Monte Carlo simulation. Polish Journal of Management Studies, 16. Retreated from http://yadda.icm.edu.pl/yadda/element/bwmeta1.element.baztech-e78808a2-c5b4-45b7-b999-394fc55d7e02/c/Cano_PJMS_2017_16_2_40.pdf

e Silva, S. C., Meneses, R., & Radomska, J. (2018). A Holistic Perspective on the International Market Selection Phenomenon. JEEMS Journal of East European Management Studies, 23(4), 579-602. Retreated from https://repositorio.ucp.pt/bitstream/10400.14/30547/1/A%20Holistic%20Perspective%20on%20the%20International%20Market%20Selection%20Phenomenon.pdf

Hamzeh, R., & Xu, X. (2019). Technology selection methods and applications in manufacturing: A review from 1990 to 2017. Computers & Industrial Engineering, 138, 106123. Retreated from https://www.researchgate.net/profile/Sreza_Hamzeh2/publication/336478478_Technology_Selection_Methods_and_Applications_in_Manufacturing_A_Review_from_1990_to_2017/links/5df5a613299bf10bc35c7a44/Technology-Selection-Methods-and-Applications-in-Manufacturing-A-Review-from-1990-to-2017.pdf

Magnani, G., Zucchella, A., & Floriani, D. E. (2018). The logic behind foreign market selection: Objective distance dimensions vs. strategic objectives and psychic distance. International Business Review, 27(1), 1-20. Retreated from  https://arro.anglia.ac.uk/id/eprint/702415/1/Zucchella_2017_2.pdf

Mahoney, N., & Weyl, E. G. (2017). Imperfect competition in selection markets. Review of Economics and Statistics, 99(4), 637-651. Retreated from https://www.mitpressjournals.org/doi/pdfplus/10.1162/REST_a_00661

Mrkipling.co.uk, 2021, LET’S TALK CAKE!, Retrieved from: https://www.mrkipling.co.uk/contact-us [Accessed on: 21.04.2021]

Niezgoda, A., & Kowalska, K. (2020). Sharing economy and lifestyle changes, as exemplified by the tourism market. Sustainability, 12(13), 5351. Retreated from https://www.mdpi.com/2071-1050/12/13/5351/pdf

Plantin, J. C., & Punathambekar, A. (2019). Digital media infrastructures: pipes, platforms, and politics. Media, Culture & Society, 41(2), 163-174. Retreated from http://eprints.lse.ac.uk/90876/1/Plantin_Digital-media-infrastructures.pdf

Putri, F. A., & Desi, E. (2020). Cost of Production Price Analysis Using Job Order Costing Method In CV. Alam Lestari Jaya. IJISTECH (International Journal of Information System & Technology), 4(1), 349-353. Retreated from http://ijistech.org/ijistech/index.php/ijistech/article/download/70/70

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