Introduction of Global Business Assignment
In today's dynamic business environment, businesses of all sizes are expanding into new areas. There are several benefits to expanding into new markets, including the potential for increased market growth and diversity (Mohr and Batsakis, 2018). An international expansion strategy is a multi-tiered strategy corporations employ to enter new markets, develop their market share, and make money rapidly. These strategies, when brought together effectively, help organize and maintain development. An international expansion when a fast-growing company expands its operations to profitable areas outside of its home country. These companies are eager to expand their global reach, and they may do so by expanding into new nations. The sale of goods in countries with high prices helps companies improve their profitability via international growth. It aids the company in obtaining the most of its available resources and boosting profits. In addition, it aids businesses in boosting their potential for growth. The following report discuss the international growth prospect of the small UK owned small retail company Acme Plc in the Canadian market.
Chosen Country for international expansion
The chosen country for the international expansion of the company Acme Plc includes the Canadian food retail market. Over this, the retail industry in Canada has developed dramatically in recent years, which is a huge benefit for Acme to flourish and generate money. Acme will also be able to provide a wide choice of items in its product line in order to effectively compete in the Canadian market (Gulanowski, Papadopoulos, and Plante, 2018). Food and grocery additives, on the other hand, are considered necessary goods that are not affected by the pandemic. As a result, the government's security procedures will allow Acme to do business as usual in the wake of the pandemic outbreak.
Analyzing the FDI Available for the country
Canada's "Investment Canada Act" governs foreign investment in the country (ICA). Its goal is to make it easier for Canadian companies to attract investment from across the world. The Department of Canadian Heritage administers the ICA in regard to specified "culture companies," despite the fact that "Innovation, Science and Economic Development" Canada is principally responsible for its administration (Sroka, 2017). To acquire ownership of an existing Canadian firm or to set up a new business in Canada, foreign investors are required to notify the government of their intent to do so. In order to notify the Canadian government, a form should be filled out by a foreign investor, a Canadian firm, and a vendor. To close an acquisition, you may submit it within 30 days after the completion of the transaction and typically submit it beyond the finalization. There was a 50 percent drop in FDI inflows to Canada in 2020, according to UNCTAD's 2021 World Investment Report, compared to 2019(Azzi, 2020). In 2020, Canada was the world's 13th most popular FDI destination, down three spots from the previous year.
Explanation and justification of the market chosen
Acme plans to open a new shop in Ontario, Canada. Canada was chosen as the market due to the obvious rapid expansion of food shopping in recent years. Canadian government support for the brand's new venture will allow it to generate large revenue in the retail food business and take advantage of huge growth opportunities in the Canadian market, which is a key contributor of the Canadian economy (Norris and Cranfield, 2019).
Household products and associated services are the primary focus of the Canadian retail business, which is dominated by shops. As a result, many large retail corporations have their own factories and, in certain instances, private label manufacturing facilities. The $615 billion generated by Canadian merchants in 2019 will be roughly $606 billion less in 2020. (Veloso et al., 2017). This equates to around a 1.5% decrease in 2019 compared to this year. The retail business in Canada increased steadily between 2012 and 2019.
For the year 2020, Canadian retail sales are expected to fall by around $606 billion from $615 billion. When compared to 2019, this represents a drop of around 1.5%. (Statista, 2021). Since food was so scarce during the start of the epidemic, sales at supermarkets and other retail outlets increased by 12 percent. In contrast, sales of construction materials and garden equipment merchants soared as more people spent time at home. The year-to-year change in 2020 was roughly 11%, whereas the move from December 2020 to December 2019 was nearly 20%.
Acme's store will provide a broad variety of goods. Food packaging must include the date of manufacturing and expiration, and only consistent foods and goods will be offered. Sugar-free food items are becoming more popular since consumers are looking for healthier choices in the marketplace (Kiani, 2020). Fresh veggies and cuisine are what customers can expect to find on their plates. As a result, only AI technology would be employed, which means that there will be less interaction between customers and their service providers.
Chosen target market
Retailers' primary target customer is generally the family's primary breadwinners (especially mothers). There has been a significant shift in Canada's retail industry, with some new types of establishments taking off while others have been fading away (Hosford and Winters, 2018). Retailers in a fast-evolving environment of client preferences and market segmentation have recently extended their distribution networks to provide better products and/or services. One of the goals is to observe the manner in which a business advertises or positions itself in the marketplace. Acme, as a business, employs behavioural segmentation to skew the organization's targeting approach. It is critical that the company build a wide target audience that is directly linked to the company's product range and positioning with the reinstalled product (Tingle and Pandes, 2021). The reality is that Canadians continue to purchase at brick-and-mortar stores, and they place a high value on product quality when making purchases. Middle-aged women, especially moms between the ages of 25 and 55, are the primary target market for Acme. In addition, the middle-class category will be the primary focus since they are more likely to buy discount coupons.
As a general rule, family feeders are concerned about quality while purchasing food and other supplies. There is an increasing need for food items, since consumables like vegetables and fruits come within the category of things needed. The pandemic had a significant impact on Canadian consumers' spending habits. Government spending on consumer goods has decreased dramatically as a result of job losses and a rise in unemployment (Hosford and Winters, 2018). Cost-conscious buyers with an interest in sales and companies, as well as a broad variety of values for Acme products, are the primary target audience. Consumers in Canada are concerned about nutrition and want to eat less sugary food. Due to the pandemic, people are shifting to online purchasing, which suggests that the firm needs to embrace online shopping in order to grow and thrive.
Evaluation of the competition
It is, nevertheless, one of the biggest retail marketplaces in the world and among the most competitive. In addition, the rapid pace of development has produced new difficulties for the retail industry. By concentrating on product price alone, supermarkets can no longer sustain their position as industry leaders (Bian and Zhao, 2020). Retailers must concentrate an increasing focus on brand distinctiveness, reputation, and customer satisfaction. Retailers must also stay abreast of changes in the sector and new technology. Retailers such as Sobeys, Loblaw Companies Ltd., and Metro will be fierce competitors for Acme as a newcomer in the industry.
Because of this, Loblaw Companies Ltd. was created in 1919 and is one of the most well-known grocery shops in Canada. It has over 4700 independent locations and 1000 franchise locations. In Quebec and Ontario, Metro is the largest chain of supermarkets, with more than 400 locations. A total of 140 Marche Richelieu locations have been recognised by the city. For the Quebec market, the discount is granted to the Metro retail branch known as Super C. The need for an exit plan is becoming more critical as the market environment expands. In the beginning, Acme intends to combine with “Loblaw Companies Ltd”, Canada's biggest distribution firm, to practically treble its profit output. It will, in fact, make it simpler for the corporation to earn further sales.
Sales process and Pricing strategy
Emerging items will be priced depending on their perceived value in order to get market acceptance. It is cheaper than most supermarket goods (Kienzler, 2018). Commodity prices are determined by overall costs. Since there are so many food retailers in Canada, it's important to keep an eye on their rivals' pricing structures before setting your own. In addition, the pricing structure takes into account consumer reaction, market demand, and commodity elasticity. As a result, a low-priced strategy to gain a competitive edge will be used. Online advertising channels will be used to promote the Acme brand.
In terms of reaching the widest possible audience, online promotion should emphasise engagement in social media activities. Websites like the company's own and social media sites like Facebook are utilised to market the brand (Kienzler, 2018). Other digital marketing methods, such as AdSense, Google, and SEO, will be used to improve consumer knowledge of the product. Acme’s distribution network might include local retailers in urban and semi-urban locations throughout Canada. Acme will utilize two primary distributors, online and offline, much as many other retailers. The Canadian market is mostly a supply chain route for brands. In Ontario, the Food Basics brand is used by the businesses that provide low-cost food.
Training needs and interests used to vest effect for the business venture
A successful training programme has a well-structured, step-by-step method. Organizational objectives and consumer expectations are frequently not met by training programmes that operate on their own (including one-time events). There is a pressing demand for high-quality online training in light of today's increasing number of remote employees. Analysis and assessment of needs are the initial steps in every development programme. It is likely that the company's strategy, human resources, or individual development goals will already meet the training requirements of employees.
Training needs (business, purpose, and individual) will be assessed to see whether there are any gaps in current training or personnel abilities. These issues should be assessed, prioritised, and made the company's training priority. The main goal is to construct a training programme to reduce the gap among current success and desired performance (McKeever et al., 2019). Training should be aligned with the drivers of growth, where 360 assessments and reviews will be completely specified, at the employee level. An action plan should be developed that includes learning theories, training, information and other instructional components. Furthermore, it's important to give information on what resources are needed and how they are prepared. When putting the curriculum into action, it's important to keep in mind the students' prior knowledge and research preferences.
In this phase, the training curriculum is brought to life. It is critical to determine if the teaching is performed internally or outside. There should be a careful consideration of employee motivation and engagement KPI targets in all aspects of the program's implementation and design (Anderson et al., 2018). Afterwards, the training programme is formally launched, publicised, and implemented. To guarantee that the training programme is effective, it is necessary to keep track on students' progress. Billing needs to be modernised, and new hires must be able to operate machinery and keep track of their own time. As part of the training programme, personnel will also be structured to aid in contacting and satisfying diverse clients.
When starting a new business in Canada, Acme Plc need take into mind the numerous Organisational criteria in Canada for retail marketing to ensure a successful enterprise. For the firm to stay profitable and successful in the Canadian foodservice market, the primary goal would indeed be product innovation. The organization wants to build a loyal client base by focusing on quality and supplying them with accumulated organic food. The following report outlines the company's marketing strategy and identifies the company's financial plan, both of which contribute to the company's profitability.
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