Developing an international marketing plan requires a thorough market research in order to gain expected benefits from the targeted market. An organisation would also need details about each nation in which it wants to operate or sell goods and services (Weerawardena, et al., 2007). The current report has considered Fewsters Farm as the case study. The company is a Western Australian producer of pure Jarrah and Organic Jarrah Honey. It is the largest supplier and producer of Jarrah honey across the world and it is harvested from beehives in the Jarrah forests (Fewsters Farm, 2017a). The company has been able to create a strong marketplace that has supported in its large expansion in different markets.
In this study, the focus would be on internationalising the business of Fewsters Farm. The company is aiming to export its Jarrah honey in the market of Malaysia for the purpose to increase the market share. In that context, environmental analysis would be carried out by using the PESTEL tool, and the proposed international market would be assessed as well. On the other hand, the analysis of the market would be done by considering the characteristics of the market, competitors and market size. It would be helpful in ascertaining whether Fewsters Farm would be successful in entering the proposed international market. Further, the study would also give emphasise on carrying out the SWOT analysis in the context of international marketing, so that the company in consideration can generate anticipated advantages from the market. On the other hand, a justification would be provided behind the selection of specific market for carrying out international operations.
Political Structure: The government is being actively concerned in economy activities and has monopolised or semi-monopolised certain sectors. This, in turn, makes the supremacy of Malaysian government impact the productivity of business.
Political Parties: In Malaysia, a multiparty system along with various political parties is executed widely.
Local Government: It is segregated into municipalities and component cities; independent and county cities; and barangays.
Political Stability: The Malaysia government is stable and significantly supports both national and international businesses to flourish in the nation.
Summary Analysis of domestic, foreign and international political environment: It has been ascertained that Malaysian government maintains healthy international relations, which contribute towards the development of different industries.
It is further reported that the government largely invites foreign direct investment and on majority of imports, import duty is not levied but GST tax is charged (Royal Malaysian Customs, 2017).
Risk Assessment: The political risk in the country is quite squat which supports in a positive growth of the economy and business sectors (Gul, 2006). Moreover, the government has stringent rules and regulations in place, because of stern governance and imposition of fines supports in keeping corruption level low.
It can be summarised that the political system of Malaysia is stable, which can be considered as a positive opportunity for Fewsters Farm to receive support from the government, if business is moved to Malaysian market.
Figure 1: Malaysian Legal Hierarchy
(Source: Hierarchy Structure, 2013)
Code or common law country: The legal system of Malaysian is blended with common commandment, civil regulation, indigenous law and other Islamic rule.
Summary analysis of domestic, foreign and international legal environment: It is ascertained that corporate tax levied on the companies is 24%, and each firm operating in Malaysia would require paying such percentage over their income to the government (Deloitte, 2016).
Moreover, the value added tax has also been imposed on goods imported and also on all the supplies of goods and services. There are certain cross-border e-commerce regulations such as Content Regulation, Electronic Transactions Act, Intellectual Property Rights, Import and Export procedures, Tax Issues, etc.
Figure 2: Rule of Law
(Source: The World Bank, 2017)
Risk Assessment: It can be viewed that Malaysia has quite stable in terms of regulatory quality. The trend is upward but it can also be observed during 2011 and 2013 (The World Bank, 2017), the progress is almost constant. However, in comparison to other nations, Malaysian enjoys much higher achievements, but only falls short of Singapore. On the other hand, the foreign investors and businesses may face certain difficulties due to regulatory and legal restrictions and complicated judicial system.
Figure 3: GNP of Malaysia
(Source: Trading Economics, 2017c)
According to above figure, GNP of Malaysia has increased gradually during the period 2014-2016. In January 2017, the value has increased nearly to MYR 285.2 billion from previous years which means it is growing towards richness.
Gross Domestic product: The gross domestic product (GDP) of Malaysia is averaged at 79.67 USD billion and it is likely to expect that it would further advance in making the economy stronger (Trading Economics, 2017a).
Income per capita: Malaysia has an increasing per-capita GDP, which is averaged at 4909.30 USD until 2015 (Trading Economics, 2017b). Moreover, average monthly household income has also risen to RM4585 in2014 from RM 3626 in 2012 (Department of Statistics Malaysia, 2017). In context to inflation, the rate is averaged at 3.14% and currently unemployment rate is 3.5%. It has been identified that in terms of ease-of-doing business rank, Malaysia stands tenth in 2017.
Principal Industries: The principle industries include pharmaceuticals, electronics assembly, food processing and garments. These industries significantly contribute in total GDP of Malaysia. It can also be pointed that the economy has also gained from the inward flow of foreign direct investment from international institutions and investors because of its extremely striking investment and stable political environment