International Business Plan Jamba Juice. Japan Cherry Creek High School DECA Chapter Cherry Creek High School 9300 East Union Avenue Greenwood Village, Colorado, 80111 Madeline Cole Hannah Meek April 27, 2015. EXECUTIVE SUMMARY. Il, INTRODUCTION. Il, ANALYSIS OF THE INTERNATIONAL BUSIN ESS SITUATION. A. Economie, political and legal analysis of the trading country. 1, Describe the trading country's economic system, economic information important to your proposed business/product/service, the level of foreign investment in that country. 2. Deseribe the trading country’s governmental structure and stability, how the government controls trade and private business. 3. Describe laws and/or governmental agencies that affect your business/product/service [ice labor laws, trade laws (U.S.A and/or Canada and the country of choice... . = B. Trade area and cultural analysis. a 9 1. Geographic and demographic information, important customs and traditions, other pertinent cultural information, competitive advantages and disadvantages of the proposed product and/or service. 2, Market segment analysis target market (age, income level, population estimate, other specific demographic and economic information) customer buying behavior related to the proposed product and or service: 3. Analysis of the potential location-importance and requirements of each trade document required by the U.S.A. and/or Canada and the country of choice....... IV. PLANN OPERATION OF THE PROPOS! 'D ¢ BUSINESS/PRODUCT/SERVICE... sensavecsoansscsnsescscanssosecn senssnnsees wld ‘A. Proposed organizatio B. Proposed product/service. 1. Details of the product(s)/service(s) to be offered: include potential suppliers, manufacturing plans, inventory policies, if applicable. If the business is a service business, appropriate information about plans to provide the service, including necessary supplies. 2, How the product/supplies will be transported to/from the home country; costs, benefits, risks of the transportation method; documents needed to transport the produets/supplie ; C. Proposed Strategies... . 1. Proposed pricing policies, what eurreney will be used, costs, markups, markdowns, relation to competition, factors that could affeet the price of the product (¢.g., competition, political conditions, taxes, tariffs transportation costs)..... 2, Proposed promotional program, promotional aetivity(ies), media availability, costs, one-year promotional plan outline... Vv. PLANNED FINANCING........... A. Projected income statements for first year's operation (sales, expenses, profivloss)..27 B. Projected balance sheet for the end of the first year....... oes C. A brief narrative description of the planned growth of the proposed business, including financial resources, needs and a bref three-year plan pojeto.. 29 BIBLIOGRAPHY. ee meserrate 16 EXECUTIVE SUMMARY "Jamba is the most incredible brand - it has meaning and purpose and a soul." -James White, CEO of Jamba Juice Inc. Jamba Juice Jamba Juice is a premium smoothie store that specializes in serving healthy smoothies, juices, and small meals for people on the go. The company was founded in 1990 by Kirk Perron, an avid cyclist and healthy lifestyle advocate. What started as one store in San Luis Obispo, California has grown to a highly demanded and profitable 849 stores worldwide. Jamba Juice has successfully franchised its stores Fig 1a-The Jamba Juice intemationally and now seeks to continue this success in Tokyo, Japan, locaton in Times Square in New Analysis of a Jamba Juice in Japan ‘Fed Oty A major strategy of the Jamba Juice Corporation is to continue to expand through franchise opportunities and continue to create new markets. Japan is a country with people who are both health conscious and constantly on the go. Currently, there are a limited number of smoothie companies and healthy fast food options. By moving into Tokyo, Japan, Jamba Juice will become the optimal balance between fast service and healthy food for Japanese customers. People in New York City live very similar lifestyles to citizens in Tokyo. The successes of Jamba Juices in the Manhattan area indicate these accomplishments can easily be translated to the Tokyo business area. With Jamba Juice’s success in the United States, ( especially in New York City, and recently in South Korea, the opening of a Jamba Juice in Japan can ultimately prove to be very suecessfll. Planned Operation Our strategic business plan will ensure the profitability of our venture. We will register our business as a United States limited liability corporation operating in Japan. An LLC is the best choice for our franchise because it protects the owners and investors from liability for acts, and debts of the company. A limited liability also allows us to have greater tax advantages and avoid double taxation. Promotions To successfully reach our target markets, we must generate awareness of our brand through an aggressive promotional plan. This includes utilizing sources such as social media, cost per click ads, sponsoring events with Jamba Juice booths, and a Feel Good local campaign effort with our mascot Bananaman. Planned Financing ‘Though Jamba Juice will make below average profits the first and second year of operation in Japan, by the third year, profits should reach the average of other Jamba Juices worldwide. We will propose a loan in the amount of $450,000, payable over 15 years at 7%, which is necessary to fund this international operation as an LLC. Following extensive research, we believe that the prospect of opening a Jamba Juice in Japan is realistic and potentially very profitable. The people of Japan, who love healthy, well balanced, meals on the go, desire the products and friendly service that Jamba Juice offers all while Jamba Juice desires the profitable market and loyal customers of Japan. We look forward to meeting with you to discuss our proposal.I. INTRODUCTION A new international business venture with excellent profit-eaming potential is a Jamba Juice in Tokyo, Japan. Jamba Juice is an Emeryville, California-based smoothie company Figure 2a. - Jamia Juice Smoothies that specializes in making quick but healthy meals and snacks for people on the go. While Jamba Juice is considered to be in the fast food industry, the company can be regarded as one of the healthiest fast food companies in the United States and considers its smoothies to be a healthy meal replacement. Jamba Juice sells a variety of fruit smoothies in either 16 0z., 32 o7., or 64 oz. cups. Although the company’s main specialty is smoothies, Jamba Juice also sells a wide range of other food and beverage items. It offers yogurt “energy” bowls, oatmeal, ( fresh squeezed juices, hot tea, flatbreads, sandwiches, breakfast wraps, and a variety of baked goods. There are approximately 287 company-owned locations and 517 franchise-operated stores in the United States of America, in addition to the 45 international stores for a total of 849 locations worldwide. Currently, Jamba Juice operates in 26 states, the Bahamas, Canada, the Philippines, Mexico and South Korea. The next logical location in the Jamba Juice international expansion is Tokyo, Japan. By placing a Jamba Juice in Japan, the company will be satisfying the customers of Japan’s needs to have a healthy, on the go option for food. Tokyo is a city that is constantly on the go, similar to New York City, and most people do not have time to have a sit down meal during the day. Jamba Juice would be a healthy option for the citi ns of Japan who do not have much time to eat because customers can easily bring their smoothies anywhere, and it takes about three minutes to order and receive their order. According to agewatch.com,vastus Iapanese people live longer because they are extremely health conscious, and “the high levels of vegetables and pulses has been seen as one reason for Okinawa previously having unusual longevity.” Jamba Juice’s original vision “to inspire and simplify healthy living” seems to directly correlate with the Japanese style of living. Naturally, Jamba Juice and Japan would make a perfect combination. Japan is comprised of four main islands in East Asia located just east of the Korean peninsula and China, It has a population of 127,103,388 people with over 90% of the population living in urban areas. Japan has a long and rich history dating back to before the first century AD when the first written records referencing Japan existed. Japan’s government is considered a parliamentary government with a Faure 2b of apn constitutional monarchy. Due to a mastery in high technology, a 4 government-industry cooperation, and a strong work ethic, Japan has created a technologically advanced economy. Based on its GDP, Japan’s economy is ranked third in the world as of 2014 with 4.729 trillion dollars according to money.cnn.com. In 2014 Japan imported 56.111 billion dollars in U.S. goods (census.gov/foreign-trade). Currently, Japan is the United States’ fourth largest trading partner. Historically, Japan and the United States have endured a rocky relationships due to wars, bombing, and unstable political situations. However, today the relationship between the two countries is better than ever, and Japan is described as one of the US’ closest allies. Both countries are striving for stability in the Asia-Pacific region, the promotion of political and economic freedoms, the support for human rights, and the securing of prosperity for the people of both countries and people on an international scale as a whole.