Project Proposal (Revised)
Food Frontier
-Based in AU/NZ - Expanding into India/Chile
Introduction
Food frontier is a company that advises governments on the benefits of plant-based protein products. Thomas King, CEO of Food Frontier, is a former Young Australian of the year and set up Food Frontier as a not for profit, independent think-tank(Lethlean, 2020). Their main aim is to advise governments to legislate and encourage the switch to a more sustainable food supply and reduce the meat industry's environmental effects. They are operating presently in Australia and New Zealand and could expand to advising developing countries with larger populations. In this essay, we conduct a feasibility study of Food Frontier expanding into India and compare India with Chile.
ELECTRONIC ASSIGNMENT COVERSHEET Student Number 34021692 Surname Strauss Given name Mathew Email 34021692 Unit Code BUS219 Unit name International Business Enrolment mode Internal Date Tuesday, 25 May 2021, 5:00 PM No. of Words 3000 Assignment name Assessment 2 – Part 2 – Major Project Report Tutor Xiaowen Tian Student’s Declaration: · Except where indicated, the work I am submitting in this assignment is my own work and has not been submitted for assessment in another unit. · This submission complies with Murdoch University's academic integrity commitments. I am aware that information about plagiarism and associated penalties can be found at http://www.murdoch.edu.au/teach/plagiarism/. 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Contents Project Proposal (Revised)4 Introduction4 Main Body4 Conclusion5 References6 Appendix7 Group Report8 Introduction8 Main Body9 Question 1.9 Question 2.10 Question 3.11 Production and Supply Chain Challenges11 Local Partner11 Question 4.13 Question 5.14 Environment14 Corruption14 Animal Welfare14 Poverty15 Conclusion16 References17 Appendices19 Project Proposal (Revised) Food Frontier - Based in AU/NZ - Expanding into India/Chile Introduction Food frontier is a company that advises governments on the benefits of plant-based protein products. Thomas King, CEO of Food Frontier, is a former Young Australian of the year and set up Food Frontier as a not for profit, independent think-tank (Lethlean, 2020). Their main aim is to advise governments to legislate and encourage the switch to a more sustainable food supply and reduce the meat industry's environmental effects. They are operating presently in Australia and New Zealand and could expand to advising developing countries with larger populations. In this essay, we conduct a feasibility study of Food Frontier expanding into India and compare India with Chile. Main Body Chile and India are two vastly different countries, and both throw up contrasting politics, cultures, business environments and economic challenges when breaking into their markets. Unlike its neighbouring countries in South America, Chile is relatively stable and has embraced a capitalist market. It is a country that is economically on the rise and has had steady economic growth since the start of the century (Cerda, González, & Lagos, 2006). Both India and Chile have a democratic system of government. However, in recent years, the Chilean people have elected far-right officials. India is the worlds second-largest country by population and is a rapidly growing economy as it looks to drag its country into a social and economic change. Out of the two, we have chosen India as almost eighty per cent of its 1.4 billion people are Hindus ("Hindu Population in India 2021," 2021). It is against the Hindu religion to eat beef as cows are sacred, that is why we believe that a large market is available in advertising a beef alternative to the Indian population. Using the localisation strategy, Food Frontier will focus on India’s strong cultural beliefs and use them to get the Indian population to embrace plant-based meat. Large companies like McDonald's have gone the way of using chicken instead of beef in all their burgers sold in India regarding the Indian Hindu religion. One way to market plant-based meat in India would be partnering with a company like McDonald's to use the plant-based meat as a substitute in their famous burgers like the “Big Mac” or the “Quarter Pounder”. The business could also work with local Indian supermarkets to sell the product in stores and advertise it directly to the Indian supermarket customers. This would give the business a direct avenue to customers in the Indian market. The localisation strategy will allow the company to better integrate its business into Indian society, which holds cultural beliefs. At the actual stage of globalisation, more and more foreign companies are taking place in local markets. New and old companies that haven't thought of going global now seek demand out of their home country. , each company will choose the best option to enter the market depending on the access to their resources and the opportunity for value creation (Meyer, Wright, & Pruthi, 2009). Due to some external factors such as cultural distance, political and economic risk, companies prefer low commitment modes when investing in emerging countries, therefore, be able to establish a relationship with buyers and suppliers to succeed in the long-term (Ulrich, Hollensen, & Boyd, 2014). Seeing that between the BRIC countries (Brazil, Russia, India and China), foreign companies achieve better results in India, and most of them adopt the joint venture as a strategy (Holtbrügge & Baron, 2013). A joint venture can help strengthen expertise, save time, cost reduction, and deal with some cultural challenges (Smitha et al., 2019). Yet, according to Smitha et al., although the mentioned mode entry is used as the preferable one, some issues need to take a closer look to avoid any possible future problems, such as communication and transparency. Therefore, the dynamic alliance that involves a Joint venture with a careful analysis of the strategy emphasises the power of expansion in a potential market. Conclusion Food Frontier is poised to make a significant difference in the adoption of this cutting-edge new technology. The production of alternative proteins is in its infancy and will take the combined efforts of leaders and visionary people to push it forward. Food Frontier’s expert team of advisors currently advise the Australian and New Zealand governments and could expand to developing countries like India and Chile. If the Indian government and Food frontier were to enter a joint venture, they could be a driving force for legislative change. Using a localisation strategy, India's consumers could enjoy a product that tastes close to meat but compatible with their religious beliefs. The devastating effects of climate change already impact global weather patterns and will leave large parts of current agricultural land uninhabitable. Therefore, to ensure food security, the world must find alternative protein forms to feed the rising global population. (Business News Australia, 2021; Food Frontier, 2021; Takoushian, 2019) References Business News Australia. (2021). Australian demand for plant-based meat surges. Retrieved from https://www.businessnewsaustralia.com/articles/australian-plant-based-meat-demand-surges.html Cerda, R. A., González, H., & Lagos, L. F. (2006). Is fiscal policy effective? Evidence for an emerging economy: Chile 1833-2000. Applied economics letters, 13(9), 575-580. doi:10.1080/13504850500400686 Food Frontier. (2021). Why AU/NZ? Retrieved from https://www.foodfrontier.org/why-au-nz/ Hindu Population in India 2021. (2021). Retrieved from http://www.indiaonlinepages.com/population/hindu-population-in-india.html Holtbrügge, D., & Baron, A. (2013). Market Entry Strategies in Emerging Markets: An Institutional Study in the BRIC Countries. Thunderbird international business review, 55(3), 237-252. doi:10.1002/tie.21541 Lethlean, J. (2020). Thomas King, CEO of Food Frontier, 24. Retrieved from https://www.theaustralian.com.au/weekend-australian-magazine/thomas-king-ceo-of-food-frontier-24/news-story/bb3a10d2aec68a8f1e24130c15636cc4 Meyer, K. E., Wright, M., & Pruthi, S. (2009). Managing Knowledge in Foreign Entry Strategies: A Resource-Based Analysis. Strategic management journal, 30(5), 557-574. doi:10.1002/smj.756 Smitha, Y., Onkar, K., Vishal, P., Piyush, G., Amrit, P. S. B., Bhavya, V., . . . Research, T. M. M. I. (2019). Analysing Factors Affecting Successful Running Of Joint Ventures In India. i-manager’s Journal on Management, 14(2), 12. doi:10.26634/jmgt.14.2.16171 Takoushian, A. (2019). Understanding Chile: A Complex Road to Stability. Retrieved from https://www.panoramas.pitt.edu/economy-and-development/understanding-chile-complex-road-stability Ulrich, A. M. D., Hollensen, S., & Boyd, B. (2014). Entry Mode Strategies into the Brazil, Russia, India and China (BRIC) Markets. Global business review, 15(3), 423-445. doi:10.1177/0972150914535066 Appendix Strengths · The taste of our alternative meat products is improving · Vegetarian and vegan friendly options · No need to slaughter animals · Reduction in shipping costs Weaknesses · Currently expensive to produce · How the products are made may be a turn off for some consumers Opportunities · India has a large population who do not eat Beef products · Reduction of climate change causing gases · Reduction in the amount of farming land needed · Provide food security · Reduced deforestation for farmland · Consumers want environmentally friendly products · Burgers already available for people to try in Australia and have positive reviews · Both India and Chile have some existing alternative meat products in the marketplace Threats · A percentage of the population will always prefer real meat · Infrastructure to support agriculture already exists · Job losses due to reduction in number of farmers needed · Climate change will reduce the amount of land available to farm · Resistance to technology that is poorly understood · Real meat may only be available to the wealthy in the future · It takes time for consumers to adopt new products · People can tell the difference between alternative and real meat · Governments are often slow to act · Can be difficult to influence Governments/political parties without donations · Both India and Chile have some existing alternative meat products in the marketplace Group Report Introduction Main Body Question 1. Question 2. (SENZENI ) Question 3. Production and Supply Chain Challenges A developing country often faces some issues. India's rapid urbanisation will lead to about 600 million people living in urban areas within ten years (Census India, 2011). Like other countries at the same stage (Brazil and South Africa), India experiences opportunities, but few challenges have to be addressed, such as mobility