This report focuses on the regional analysis and country risk analysis of the South East Asian region and India so that a comprehensive report regarding the analysis of regional and country analysis of the region can be submitted to Nutradry, an Australian fruit and vegetable powder in order to help them take effective decisions regarding investment in India, which is one of the rapidly developing economies across the globe. This report also provides analysis of the market condition of the fruit and vegetable powder industry and also about the requirements of the customers in the fruit and vegetable powder industry
Regional alliances and economic integration- India maintains strong regional alliances with other South Asian nations to facilitate effective relations with them and to attract investments from these countries. India along with various other south Asian countries is member of ASEAN which facilitate international trade by reducing trade barriers. India has also several Free Trade Agreement undergoing negotiation with countries such as Australia, Canada, Thailand and Israel that would help in promoting free trade by removing trade barriers. As opined by Liu (2013) a trade agreement named Regional Comprehensive Economic Partnership is being proposed between the ten ASEAN countries and several other countries such as India, China and Australia in order to develop trade relations between the countries.
Physical Environment and its effect on trade- The region between China, India and Pacific Ocean is termed as South East Asia that can be divided into two distinctive features namely mainland promotion with India and China and extending to South towards Indo-China peninsula. The island or Insular region extends to the south and east countries which are surrounded by water. The physical geography of the region favours the development of trade owing to the high capacity of clearly skilled and capable workers. The physical environment of the various other countries of South East Asia promotes trade relation with other countries in order to develop the economy.
Political Stability- The political stability in the Asian countries is comparatively high in order to support attracting more business ventures in their countries.
Economic Stability- The economic stability of the majority of countries is comparatively low considering the low purchasing power of the customers and due to over dependence of the travel and tourism industry for economic development of the countries.
Finance options available-As stated by Rajkumar (2013) the finance options which are available in India are capital markets, loan stock, retained earnings, bank borrowings, government sources and subsidies, business expansion fund scheme, venture capital and franchising.
Social, health and environment conditions- The region of South East Asia is considered as a diverse region considering the cultural diversity of the region and it experiences an increase in the population of ageing population which influences work attitudes and behaviours. Due to a large number of people residing in the South East Asian countries the pollution level is higher than any other region of the world and it also experiences various health concerns due to inferior qualities of food substances consumed and also due to lack of hygienic knowledge and activities which promotes good health.
Terrorism Threat- The threat regarding terrorism is one of the reasons behind the lack of investment opportunity in the South East Asia as due to the high population of the region and due to presence of cultural diversity in the region it is an easy target for the various groups of terrorists and extremists.
Political and Legal stability- As opined by Singh & Bhangoo (2014) India is amongst the biggest democracies across the globe and is politically stable country that is controlled through federal form of Government and political atmosphere of India is largely impacted by various aspects such as Government policies, politician’s interest and philosophies of multiple political parties and therefore the business atmosphere is implicated by multivariate political countries.
In recent past a number of legal reforms have been brought in India, in form of recycling efforts, rise of nominal wages and anti-discrimination of disability which affects business organizations.
Economic conditions- The Indian economy has been evidently strong after the commencement of industrial reforms policy of 1991. As per this policy reform there is provision of reductions in industrial licensing, more of liberalization of foreign capital and development of FIBP which has led to consistent development of India’s economic conditions.
Finance Options available- The finance options which are available in India are capital markets, loan, stock, retained earnings, bank borrowings, government sources and subsidies, business expansion fund scheme, venture capital and franchising. There is also option for Foreign Direct Investments in India, which allows foreign companies to directly Invest in India and the percentage of varies sector wise.
Physical environment and Distribution channel- India has some of the world’s most bio-diverse Eco zones in form of deserts, high mountains, highlands, tropical forests, temperate forests, swamplands, plains, grasslands and various regions surrounded by rivers and other archipelago.
The distribution network within India is very effective considering the different types of distribution channel. The country is well connected to all parts through roadways, railways, airways and waterways which facilitate the effectiveness of the distribution channel. In India multiple types of distribution channel can be observed depending on the sector they belong to.
Social, health and environmental conditions- As the population of India is high, therefore the percentage of ageing population is increasing in India. 70% of the population of India belong to the age group of 15-65 and hence there are structures with percentages as per age group and as a result these structures have distinct flexibleness in education, work behaviour, income dissipation and so on.
As opined by S Cheng (2013) the level of pollution in India is gradually increasing with each day as a result of increasing levels of industrialization and urbanization which has resulted in increase in health problem among the individuals. Due to the increased level of industrialization and urbanization, there has been establishment of environmental pressure groups, noise controls and imposition of various regulatory measures on waste management and disposal. Due to rise in pollution levels, the individuals of India are suffering from various health related problems and obesity problem. The poverty level of the country also results in increase of various health problems among the poorer section of the society.
Cultural and Ethical Considerations- As stated by Gupta & Bhaskar (2016) India is a culturally diverse country, and there are various ethics and cultural considerations which needs to be taken into account while setting up business ventures in India. Indians value their culture to the fullest extent and they expect business organizations to do the same. There are various ethical considerations which needs to be taken into account while doing business in India regarding establishing relationships, in context to food habits and cultures, building reputation and recognizing the difference between ‘old’ and ‘new’ India.
Organization or product of service analysis- As opined by Sharma & Lotwala (2017) the products of Nutradry such as the fruit powders, vegetable powders and speciality powders are expected to largely succeed in India as a result of the high organic value of the products and lack of artificial flavours in the products of the company. As India is experiencing various health problems due to consumption of artificially made adulterated foods in the form of fruit and vegetables, the customers of India are in search of an alternative solution which would address their problem and as the products of Nutradry are naturally sourced and organic in nature and manufactured by using the best technology, therefore the products of Nutradry can succeed in a prospective market like India.
Nutradry is an Australian company which specializes in fruit powders, vegetable powders, meat powders and other speciality powders which are fully organic in nature and are sourced from locally grown farmers. Nutradry works with the food, health and pharmaceuticals industry adding values to their products by providing whole food powders which are filled with original flavour and nutrition.
Nutradry is a Pty Ltd. Company which is based in Australia. According to Australian Law a proprietary limited company or Pty Ltd Company is a business structure which has at least one shareholder and up to 50, wherein obligation of the shareholders is limited to the value of shares. Its counterpart includes public limited enterprises and the unlimited proprietary firms with a share capital.
According to Newswire (2015) the global fruit powder market size is estimated to reach USD$ 23.96 billion due to a positive outlook towards the nutraceutical industry. The consumers are constantly striving for the fulfilment of their nutritional intake through functional foods and drinks. With the constant change of lifecycle patterns, the consumers of the industry are inclined towards ease of convenience food meeting their specific nutritional requirements.
In order to meet the requirements of the customers Nutradry sources their ingredients from local farms of Australia in order to ensure the high quality of the products. Based on the requirements of the customers, Nutradry uses state of the art technology in order to manufacture their products so that it addresses the needs of the customer. As opined by Prinja, Chauhan, Angell, Gupta & Jan (2015) the products of the Nutradry are organic in nature which addresses the health concern of the customers and therefore it helps in gaining acceptance among the customers. Based on the requirements of the customers, Nutradry constantly innovates their products which satisfy customer demands and requirements.
Conclusion
From the above analysis of the report it can be stated that India is an appropriate location for Nutradry in order to expand their business. From the regional analysis and the country risk analysis it can be seen that Nutradry should expand their business operations to India as the offerings of the product of the company co-aligns with the requirement of the customers which will help in increasing the demand of the products.
References
Newswire (2014). Global fruit powders report 2014 – comprehensive analysis of trends in the global fruit powders market including long-term forecasts. PR Newswire Retrieved from https://search.proquest.com/docview/1635013313?accountid=30552 [Accessed on 14 Oct. 2018]
Gupta, S., & Bhaskar, A. U. (2016). Doing business in India: Cross-cultural issues in managing human resources. Cross Cultural & Strategic Management, 23(1), 184-204. Retrieved from doi: https://dx.doi.org/10.1108/CCSM-09-2014-0112 [Accessed on 14 Oct. 2018]
Liu, H. (2013). The effect of banking regime change from traditional banking operation to universal banking operation on financial crisis. Business Premium Collection. Retrieved from https://search.proquest.com/docview/1353649366?accountid=30552 [Accessed on 14 Oct. 2018]
Prinja, S., Chauhan, A. S., Angell, B., Gupta, I., & Jan, S. (2015). A systematic review of the state of economic evaluation for health care in India. Applied Health Economics and Health Policy, 13(6), 595-613.Retrieved from-doi: https://dx.doi.org/10.1007/s40258-015-0201-6 [Accessed on 14 Oct. 2018]
Rajkumar, V. N. (2013). The time series and the causality analysis of foreign investment in India. Journal of International Economics, 4(1), 26-41. Retrieved from https://search.proquest.com/docview/1440299291?accountid=30552 [Accessed on 14 Oct. 2018]
S Cheng, J.,Y. (2013). China’s regional strategy and challenges in East Asia. China Perspectives, (2), 53-65. Retrieved from https://search.proquest.com/docview/1634213033?accountid=30552 [Accessed on 14 Oct. 2018]
Sharma, S. U., & Lotwala, R. (2017). Learning from china: Mitigating the problems of make in India through responsible business behavior. IUP Journal of Business Strategy, 14(4), 55-71. Retrieved from https://search.proquest.com/docview/1989487653?accountid=30552 [Accessed on 14 Oct. 2018]
Singh, L., & Bhangoo, K. S. (2014). The state, systems of innovation and economic growth: Comparative perspectives from India and South Korea. Seoul Journal of Economics, 27(1), 41-65. Retrieved from https://search.proquest.com/docview/1513231432?accountid=30552 [Accessed on 14 Oct. 2018]
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