AJC International Risk Analysis

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  Considered company goals and business strategies to create key decision factors for assessing potential investment opportunities. Then conducted market research to leverage different location's competitive advantages and presented overall findings.
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  • 1. http://www.gulfood.com/__resource/companyProfiles/977CDD7B-5056-B740-17EFBBB4627ED049-logo.jpg Expanding Our Footprint in Southeast Asia Marvin Siclait Zack Haley Casey Morris Sianeh Dennis1
  • 2. Table of contents III - Our Vision XI - Markets Challenges IV - Road Map XII - Domestic Market Consumption V - Bilateral Relations XIII - International Market Consumption VI - Bilateral Relations II XIV - Final Results VII - Logistics Performance XV - Bibliography VIII - Logistics 2
  • 3. Our Vision We have a goal of maximizing a new investment with a long term strategy by importing meats into Vietnam and exporting seafood. - There are very strong U.S. Vietnam agricultural relations and a need for domestic consumption of diversified proteins like poultry and chicken, but especially pork. - The country’s large and growing agricultural economy is a great place to enter, but leaves room to enhance global competition. 3
  • 4. Decision Factor Weight % Thailand Indonesia Vietnam Bilateral Relations 30% 4 4 4 Logistics/ Supply Chain 40% 3 3 3 Quality of Markets 30% 3 2 4 Score 100% 10 9 11 Road Map 4
  • 5. Bilateral Relations ● Aggregate Exports (Bill USD) - Goods or services exported from a country or region; expressed in billions of U.S dollars. World Trade Organization stats ● Openness to foreign participation - Combination of three variables - Ease of hiring foreign labour - business impact of rules on FDI - openness to multilateral trade rules. World economic forum ● Total trade (% of GDP) - Sum total of merchandise goods and commercial services imported and exported; represented as a percentage of GDP. World Trade Organization stats (All of these definitions come from the RCII) 5
  • 6. Bilateral Relations - Export to Vietnam “U.S.-Vietnam bilateral trade has grown from $451 million in 1995 to nearly $52 billion in 2016. In 2016, Vietnam was America’s fastest growing export market. U.S. exports to Vietnam grew by 77 percent between 2014-2016.” U.S Department of State, U.S Relations with Vietnam, 13 September 2017, 16 Nov 2017; State Department Bilateral Relations Fact Sheet: Vietnam 6
  • 7. Logistics Performance (LPI) The LPI uses six key dimensions: 1.Efficiency of the clearance process 2. Quality of trade and transport related infrastructure 3. Ease of arranging competitively priced shipments 4. Competence and quality of logistics services 5. Ability to track and trace consignments 6. Timeliness of shipments in reaching destination within the scheduled or expected delivery time “Indonesia Country Score Card 2016” , n.d., Date acessed 11/6/17: https://lpi.worldbank.org/international/scorecard/line/128/C/IDN/2016#chartarea (Ranked out of 5) Indonesia: 2.98 Vietnam: 2.98 Thailand: 3.26 https://lpi.worldbank.org/international/scorecard/radar/254/C/VNM/2016/C/THA/2016/C/IDN/2016 7
  • 8. Logistics “With a coastline stretching 3,200 kilometres along the South China Sea, Vietnam has a particularly advantageous geographical location, one that gives it access to the world’s major seaborne trade routes.” Yuen, Jacqueline, “Vietnam’s Logistics Market: Overcoming the Challenges”, 28 Jan 2015, Date Accessed 26 November 2017:http://economists-pick-research.hktdc.com/business- news/article/Research-Articles/Opportunities-in-Thailand%E2%80%99s- Logistics-Market/rp/en/1/1X000000/1X0A2LSH.htm 8 https://www.google.com/search?q=vietnam+map&r lz=1C1KMZB_enUS586US586&source=lnms&tbm =isch&sa=X&ved=0ahUKEwiwspm3sODXAhXD6iY KHaaPBTwQ_AUICygC&biw=1366&bih=637#imgr c=spLvnua-vS0HnM: “To ensure a reliable service, many logistics companies have established strong ties with local agencies that specialise in various aspects of the logistics process, such as customs brokerage, documentation and warehousing services. This is often cited by leading logistics companies as a key element in the smooth running of transportation operations in Vietnam.” Yuen, Jacqueline, “Vietnam’s Logistics Market: Overcoming the Challenges”, 28 Jan 2015, Date Accessed 26 November 2017: http://economists-pick-research.hktdc.com/business-news/article/Research- Articles/Opportunities-in-Thailand%E2%80%99s-Logistics- Market/rp/en/1/1X000000/1X0A2LSH.htm
  • 9. Market Overview “A business needs a successful community, not only to create demand for its products but also to provide critical public assets and a supportive environment.” - Michael E. Porter & Mark R. Kramer 9
  • 10. Markets Access “The cold storage market in Vietnam is over-built for current operations. The organized retail sector is just starting to take off, and thus, most players are keeping an eye on the situation. There is potential for companies with a longer-term approach.” -Richard Tracy, Global Cold Chain Alliance 10
  • 11. Markets Challenges “Too many companies have lost sight of that most basic of questions: Is our product good for our customers? Or for our customers’ customers?” - (Porter & Kramer, 2011:7) 11
  • 12. Domestic Market Consumption Opportunities “By increasing access to inputs, sharing technology, and providing financing, companies can improve supplier quality and productivity while ensuring access to growing volume.” - (Porter & Kramer, 2011:10) https://www.ipsos.com/sites/default/files/2016-08/meat-market-in-vietnam.pdf 12
  • 13. International Market Consumption Opportunities 13 http://bioaqua.vn/en/global-shrimp-production-review-industry-projects-steady-recovery-following-disease-impacts/ “Vietnam’s shrimp has experienced many highs and lows in the last 10 years, but it may see more stable growth in the future. Recently, PM Nguyen Xuan Phuc decided that Vietnam would aim to become a major shrimp production base for the world.” - http://english.vietnamnet.vn/fms/business/172861/10-years-of-ups-and- downs-for-vietnam-s-shrimp-industry.html
  • 14. Final Results Because of the abundance of agricultural demand and supply, the emerging economies in Indonesia, Thailand, and Vietnam remain attractive destinations to gain entry, but gaining access to the agricultural markets proves to be more difficult in Thailand and Indonesia, which leaves them to be better potential opportunities in the future. The more stable and liberal economy of Vietnam better suits AJC’s goal of maximizing profits with a long term strategy. Specifically by reconceiving the protein market by inputting a healthier/more sanitary supply, we can help make the industry more competitive, which will increase the value of the area and our profit. 14
  • 15. Bibliography ❏ de Koning, Jotte Ilbine Jozine Charlotte, et al. "Sustainable Consumption in Vietnam: An Explorative Study among the Urban Middle Class." International Journal of Consumer Studies, vol. 39, no. 6, Nov. 2015, p. 608. EBSCOhost. Date accessed 20 November 2017: ezproxy.gsu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=edb&AN=110568771&site=eds-live&scope=site. ❏ Southan, Jenny. "Growth Market." Business Traveller (Asia-Pacific Edition), Oct. 2017, pp. 28-32. EBSCOhost. Date accessed 20 November 2017: ezproxy.gsu.edu/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=125347877&site=eds-live&scope=site ❏ Yuen, Jacqueline, “Opportunities in Thailand’s Logistics Market”, 8 June 2015, Date Accessed: 21 November 2017: http://economists-pick-research.hktdc.com/business-news/article/Research-Articles/Opportunities-in-Thailand%E2%80%99s-Logistics- Market/rp/en/1/1X000000/1X0A2LSH.htm ❏ Yuen, Jacqueline, “Vietnam’s Logistics Market: Overcoming the Challenges”, 28 Jan 2015, Date Accessed 26 November 2017: http://economists-pick-research.hktdc.com/business-news/article/Research-Articles/Opportunities-in-Thailand%E2%80%99s-Logistics- Market/rp/en/1/1X000000/1X0A2LSH.htm ❏ The World Bank, “Transforming Vietnam’s Agricultural Sector Will Stimulate Higher Growth”, 27 September 2016, Date Accessed 22 November 2017: http://www.worldbank.org/en/news/press-release/2016/09/27/transforming-vietnams-agriculture-sector-will-stimulate-higher-growth ❏ Vo Thanh Kiet, Tran Quoc Quan, Bui Huong, & Ward, Michael, Vietnam Exporter Guide 2015, 27 March 2015, Date Accessed 22 November, 2017: https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Exporter%20Guide_Hanoi_Vietnam_3-27-2015.pdf ❏ Entzian, Mareike, “The Seafood Industry in Vietnam”, 4 November, 2015, Date Accessed 25 November 2017: http://www.vietnam-briefing.com/news/seafood-industry-vietnam-aquaculture-year-plans-tpp.html ❏ Porter, Michael, & Kramer, Mark, “Creating Shared Value”, (Harvard Business Review, 2011) pgs. 7-10. ❏ Kinver, Mark, “UN: Global Fish Consumption Per Capita Hits Record High”, 7 July 2016, Date Accessed 18 November 2017: http://www.bbc.com/news/science-environment-36716579 ❏ U.S Department of State, U.S Relations with Vietnam, 13 September 2017, 16 Nov 2017; State Department Bilateral Relations Fact Sheet: Vietnam ❏ “Indonesia Country Score Card 2016” , n.d., Date acessed 11/6/17 : https://lpi.worldbank.org/international/scorecard/line/128/C/IDN/2016#chartarea 15
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