Select A Saudi Company Willing To Enter An International Mar ✓ Solved

Select a Saudi company that is willing to enter an internat

PROJECT DESCRIPTION: Select a Saudi company (manufacturing or service) that is willing to enter an international market. The company is considering two potential countries to select one best. As a Business Development Executive, you have been asked to prepare an official report suggesting the best country to enter with the best entry strategy/mode. The report should include the following two essential steps: 1. Evaluate two potential countries (any two of your choice) 2. Select the best strategy to enter the selected market.

The written report should not be less than 2000 words and more than 3000 words (Including title page, table of content, references, and any appendices). Writing Guidelines: Paper size: A4, Line spacing: 1.15, Margins: 1 inch all sides, Font: Times New Roman, Font Size: 12 for text, 14 for headings and 13 for subheadings.

The project should have a nice title page containing all the required information such as; the title of the project, university logo, course name, name and ID of student.

PROJECT FORMAT (Proposed): Executive summary (Maximum one page; Briefly describe the 1. The purpose of the report-why you are doing this project? 2. Method- how did you do it? 3. The result- what was findings 4. Conclusion & recommendation) 1. Company’s background (Introduce your selected Saudi company: a brief history, mission, vision, corporate goals). 2. Alternative foreign countries (Provide a brief introduction to each potential country in one medium-sized paragraph.) 3. Assessment of Alternative Foreign Countries [For each country, provide a PEST Analysis (Political, Economic, Social, Technological, environments) and other relevant factors such as demand of your product, transportation cost, trade barriers, level of competition, first-mover advantage and any other factors as discussed in the course.] 4. Comparison of alternative foreign countries (Provide a comparison between the potential foreign countries based on PEST analysis outcomes and other relevant factors; the comparison can be presented in tabular form). 5. Final foreign country selection (Summarize, finally chosen country and justify your choice based on the comparison provided in the previous section.) 6. Assessment of alternative market entry strategies (In the context of your company, explain each possible entry mode such as exporting, licensing, joint venture, wholly owned subsidiary-greenfield or acquisition, etc.) 7. Final market entry strategy selection (Explain what entry mode is best for your company. Justify your selected entry mode). 8. Conclusion (Briefly summarize the results of your assessment sections 4-8. Briefly describe the finding and provide recommendations to the company based on your analysis) 9. References (Harvard Referencing method should be used for citations).

Paper For Above Instructions

Executive SummaryThe purpose of this report is to evaluate the international market entry opportunities for a leading Saudi manufacturing company, Almarai, considering its expansion into two potential countries: Egypt and Turkey. This report employs PEST analysis as the primary method to assess these markets’ political, economic, social, and technological environments. The findings indicate that Turkey presents a more favorable environment for Almarai's market entry due to its robust economic growth, strategic geographic location, and favorable trade agreements. Recommendations include a joint venture strategy with a local partner to facilitate market penetration and brand establishment.

1. Company BackgroundAlmarai is a prominent Saudi food and beverage manufacturer, founded in 1977, renowned for its dairy products, fruit juices, and bakery items. Its mission is to provide high-quality food and beverage products that enhance the lives of its consumers while maintaining its vision of becoming the world’s largest integrated dairy company. Almarai’s corporate goals focus on sustainable growth, market leadership, and customer satisfaction.

2. Alternative Foreign CountriesThis report assesses two potential markets for Almarai's international expansion: Egypt and Turkey. Egypt, with a rapidly growing population and increasing demand for dairy products, offers significant opportunities. However, Turkey, with a burgeoning middle class and strategic location as a gateway to Europe and the Middle East, presents a more conducive environment for Almarai's growth.

3. Assessment of Alternative Foreign CountriesPEST Analysis of Egypt:- Political: The political landscape in Egypt has stabilized post-revolution, but regulatory challenges exist.- Economic: With a GDP growth rate of around 5%, Egypt's economy shows promise despite inflation concerns. - Social: A young demographic and increasing urbanization are driving demand for dairy products. - Technological: The telecommunications sector is developing, but logistics and production technology may lag behind.PEST Analysis of Turkey:- Political: Turkey has a relatively stable political environment with a supportive government towards foreign investments.- Economic: Turkey boasts a GDP growth rate exceeding 6%, with a vibrant consumer market.- Social: The rise of a middle-class consumer base is fueling demand for high-quality food products.- Technological: Turkey has advanced technology in production and logistics, offering a competitive edge in market entry.

4. Comparison of Alternative Foreign CountriesThis comparative analysis indicates that Turkey, with its economic stability and stronger technological infrastructure, is better equipped to support Almarai’s international growth objectives. A summary table highlighting key PEST factors is provided below:

5. Final Foreign Country SelectionBased on the comparison, Turkey emerges as the preferable market, primarily owing to its favorable economic conditions and alignment with Almarai’s strategic objectives. The choice is justified by Turkey’s advantageous demographics and technological advancements that align with the company’s operational capacities.

6. Assessment of Alternative Market Entry StrategiesSeveral entry modes were assessed, including:

• Exporting: Low risk but limited market impact.
• Licensing: Allows local expertise but risks dilution of brand.
• Joint Venture: Shares risks and benefits from local partners’ knowledge.
• Wholly Owned Subsidiary: High control but requires substantial investment.

7. Final Market Entry Strategy SelectionA joint venture with a Turkish company is recommended, leveraging local knowledge to navigate market dynamics effectively while sharing operational risks and costs. This approach also helps in establishing a strong brand presence and accessing established distribution channels.

8. ConclusionIn summary, the analysis indicates that entering the Turkish market through a joint venture is the most viable option for Almarai. This strategy not only mitigates risks but also enhances the company’s potential for scalable growth in an internationally competitive environment. It is recommended that Almarai adopts this strategy as it continues to expand its footprint in international markets.

References

• Almarai Corporate Profile. (2023). Retrieved from https://www.almarai.com/about-us.
• The World Bank. (2023). Egypt Economic Monitor. Retrieved from https://www.worldbank.org/en/country/egypt.
• The World Bank. (2023). Turkey Economic Review. Retrieved from https://www.worldbank.org/en/country/turkey.
• OECD. (2023). Economic Outlook for Turkey. Retrieved from https://www.oecd.org/economy/outlook.
• CEIC Data. (2023). Economic Indicators for Egypt. Retrieved from https://www.ceicdata.com/en/countries/egypt.
• GlobalData. (2023). Market Analysis for Dairy Products in Turkey. Retrieved from https://www.globaldata.com/store/report/dairy-in-turkey-market-analysis.
• Euromonitor International. (2023). Dairy Products Trends in Egypt. Retrieved from https://www.euromonitor.com/dairy-products-in-egypt/report.
• Trade Map. (2023). Trade Statistics for Egypt and Turkey. Retrieved from https://www.trademap.org.
• International Trade Centre. (2023). Turkey Trade Profile. Retrieved from https://www.intracen.org/country/turkey.
• Arabian Business. (2023). Almarai’s Expansion Plans. Retrieved from https://www.arabianbusiness.com/companies/almarai.