Independent University, Bangladesh

Export plan Report

On
(Plastic Industries)

Submitted To:

Hasan Md. Mahmood Ul Haque

Lecturer, Department of International Business
Independent University, Bangladesh (IUB)

Submitted By:
Group Member:

Name ID
Musfic salehin 1320708
Md. Neaj Morshed 1430608
Sabrina Sayeed Prova 1430508
Anik Paul 1520009
Syed Jubair Hassan 1321491
Md. Rajib Hossain 1320891

Course Title: International Business

Course ID: INB-301
Section: 02

Date of Report Submission: 3rd April, 2017

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 Letter of Transmittal
3rd April, 2017

Hasan Md. Mahmood Ul Haque

Lecturer
Department of International Business
Independent University, Bangladesh

Subject: Application for accepting our report about Export Plan on Plastic Industries.

Dear Sir,

It is our great pleasure to submit the report as on to you. As per requirement of the course, we have
completed an export plan which is done as a partnership business including 6 members in a group.
We have tried to exert all the knowledge that we gathered through a group discussion and
information taken from online research. Before facing the real business world, we have gathered
prior knowledge about the Export planning process.

Thank you very much for your kind co-operation without which this report cannot be completed.
We like to take every opportunity to express our gratitude of indebtedness to you.

Thank you once again for your kind co-operation.

We sincerely hope that you will accept the report and we would be thankful once again if you give
your judicious advice on our effort.

Thank you
Sincerely yours,
............................
Musfiq Salehin (On behalf of Group Members)
Independent University, Bangladesh (IUB)

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 Executive Summary

N. Mohammad Plastic Industry Ltd. has launched its journey in 1987 to serve mainly as
manufacturer of plastic furniture and household accessories. This company is operating
successfully ensuring its continued improvement. The much needed items such as plastic chairs,
tables, rack, tools, trashes, hangers, etc. are being manufactured with the latest technology within
affordable and reachable price by the consumers. N Mohammad Plastic Ltd has 17 show rooms
throughout the country Chittagong, 4 at Dhaka.

Our group was assigned to prepare a report on Export Plan of N. Mohammad Plastic Company so
that we are able to demonstrate a basic understanding of global cultural knowledge through
understanding the core components of international business and the local and national differences,
understand the basic different factors that determine international trade patterns and capital flows
and their impact on global business operations, identify the basic international competitiveness of
nations and their attractiveness for international business and to analyze basic knowledge on cross-
border communications and managerial issues from an International business context.
We decided to expand our business in India and Sri Lanka. India is a fast growing democratic
Country that has a huge customer base for all commodities. A huge market with lots of potential
for investors and supply of skilled and unskilled labor is the main reason behind their success. Sri
Lanka has mostly had strong growth rates in recent years. Sri Lanka is now focusing on long-term
strategic and structural development challenges as it strives to transition to an upper middle income
country. As businesses become more competitive, and are required to increase their standards, we
believe the N. Mohammad Plastic Company will become a very popular choice in these countries.

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 TABLES OF CONTENTS

Details Page Number

Company Description 05-06

Why the company Export? 07-08

Situation and Background Analysis 08-09

Products of N.Mohammad 10-11

Pricing Strategy , Term and 12-23

Conditions
Distribution Method 25-26

Company Profile 26-32

Grid Analysis 32-33

Financial Analysis 33-35

Risk That May Face Over There 36-38

Implementation 38

Conclusion 39

Reference 40

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Company Description

The watchword being self-reliance and refinement using the most modern machine and advanced
technological N.MOHAMMAD GROUP, now into its forty years of age, is a household name in
Bangladesh. Unlike many others of the genre it has a commitment to the country to the community
and to the customers, a commitment par excellence in terms of quality, durability, color, and
design. We have, by now, more than one thousand verities of plastic household accessories,
wooded furniture, wood plastic composite doors, wood plastic composite Board, to name of few.
Doing justice to our motto of self-reliance, the group has to its credit, an engineering workshop,
repairing and servicing installation for all kind of marine engines and provides technical support
to the aspiring people and enterprise.

N Mohammad Plastic Industry Ltd. has launched its journey in 1987 to serve mainly as
manufacturer of plastic furniture and household accessories. This company is operating
successfully ensuring its continued improvement. The much needed items such as plastic chairs,
tables, rack, tools, trashes, hangers, etc. are being manufactured with the latest technology within
affordable and reachable price by the consumers. N Mohammad Plastic Ltd has 17 show rooms
throughout the country Chittagong, 4 at Dhaka. Thousands of whole sellers and retailers have been
marketing the products like garden chairs, dining chairs, folding tables, baskets and other
household products including various kinds of Crocker age with faith and belief. The company
feels prestigious to be able to supply plastic bottles and containers to the two most renowned oil
companies of the country like Jamuna and Padma. A number of local oil companies also are using

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its bottles and containers. Some multinational companies like Reckit & Benckiser are also using
Mohammad plastic bottles and containers for manufacturing.

N Mohammad Engineering Industry Ltd is a company of Engineering Workshop that deals with
giving technical support, repairing and servicing all kinds of marine engines, machinery parts and
different branches of engineering arena. Main Events of Works: Repairing, servicing, technical
support and making machinery parts and so on. Man Power: 60 per persons Prospect/ Consumers
/ Users: General public through mechanical engineers, auto mobile related workshops, industries
and housing. Sources of Raw Materials: imported and locally procured materials.

Mission:

We are a market-focused, process-centered organization that develops and gives solution to our
customers and provides a dynamic and challenging environment for our employees.

Vision:

It has been a long cherished vision of N Mohammad Group to emerge as a leading contributor
to the plastic market & WPC product, and deliver cost effective and required solution to its
prospective clients, being a trustworthy and fair business partner.

Goal:

Our goal is to be the best company in our industry and it is our policy to deliver total quality
goods and services to all of our customers. We accomplish this by adopting a set of quality
policy throughout the organization.

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 The Company Will EXPORT Because
Exporting is one of the best way to increasing its sales potential. It creates value for the
organization. it expands the sales so that it can earn money from this .Exporting is an option for
business of every size ,in every industry .If we want to manage risk ,generate new revenue streams
,produce more efficiently ,neutralize competition ,and increase the stability of business exporting
is the next logical step to take on the path to success.

Going international is a great next step for many companies. The domestic market is sometimes
challenging enough, or maybe there just isnt the time or expertise to create and execute an export
plan. Some companies are worried about the risk, so why should you export? Going global is a big
step, but can be worth it! Here are some reasons why every companys should export:

1. Exporting broadens the marketing base.

2. its a great way to extend the life of a product.

3. You want to establish a presence in the international market.

4. Competitors have gone international so you need to go international to stay competitive.

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5. Extra inventory that isnt selling in your domestic market can earn a profit in the international
market.

6. It can enhance your companys image to be seen as more progressive.

7. Exporting can help protect your company against domestic market swings and business cycles.

8. Penetrating trade barriers can help enter markets you wouldnt be able to enter otherwise.

Exporting is an excellent way to enjoy pure economies of scale with products that are more
"global" in scope and have a wider range of acceptance around the world. This is in contrast to
products that must be adapted for each market, which is expensive and time consuming and
requires more of an investment.

Situation/Background Analysis

N Mohammad Industry Ltd. as a plastic company they serve mainly as manufacturer of plastic
furniture and household accessories. This company is operating much needed items such as plastic
Chairs, Tables, Rack, Tools, Trashes, Hangers, Crate Basket, Flower Pot, Latrine sets, Wardrobe,
Dustbin, Bucket, Dustpan, and Water Jug & Mug etc. are being manufactured with the latest
technology within affordable and reachable price by the consumers. Their products are more
durable than then local product and the services of their product also great as a result day by day
their popularity increased.

In our household and daily livelihood we are used to using plastic product for our every work
because plastic product are more durability and easy to use as N. Mohammad is a plastic company
and they produce those kind of product just to think make their product cheap price but most
durability rather than local product.

Applying importance to quality and durability, they frame the very beginning, made it principle of
the group to use top quality foreign raw material in their products and hence imported raw material,
machinery of international standard. They uncompromising attitude to the maintenance of quality
has to its prize. The group is accredited with the highest sales record of plastic goods in the country.
A real patriot and a man of clean social natural conscience. Mr. Nur Mohammad while visiting

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Factory abroad thought it right to innovative products which can environment from inevitable
destruction. As back to, he gave his idea a practical shape and established plastic industry with a
few machine. Soon he was able expire the huge potentially that was lying untapped in this type of
initiative. So long, with the products recharging out to ever increasing number of people, the
groups name and frame spread accordingly. To the extent that whenever customers task for plastic
made goods of better quality, long durability, attractive design and reasonable price. They almost
always make their choice for N Mohammad Plastic products.

N Mohammad Plastic Ltd has 17 Show Rooms throughout the country Chittagong, 4 at Dhaka.
Thousands of whole sellers and retailers have been marketing the products like Garden Chairs,
Dining Chairs, Folding Tables, Baskets and other household products including various kinds of
Crockery plastic products with faith and belief. The company feels prestigious to be able to supply
plastic Bottles and Containers to the two most renowned Multinational Oil companies of the
country like Jamuna and Padma. A number of local oil companies also are using its Bottles and
Containers. Some multinational companies like Reckit Benckiser are also using N Mohammad
Plastic Bottles and Containers for manufacturing its products like Harpick, Mortein, Dettol etc.
Name of the Products: Plastic Furniture & Plastic Household accessories. Capacity of the plant:
Furniture & household accessories weighing 4 tons. Manpower: 500 persons. Source of Raw
Materials: Local, German, Italy, Saudi Arabia, Korea, Thailand & China, as well as India.
Technology: Japan, Taiwan, Hong Kong and many other countries.

Their source of raw materials came from many well organized country as a result they try to make
their product goods of better quality, long durability, attractive design and reasonable price to
competitions other plastic company like RFL Plastic, Bengal Plastic, Talukder Plastic, Tanin
Plastic and so on. As other Plastic company are well establish thats why the plastic market in
Bangladesh getting more competitor and the demand also getting higher from their customers.
Customers are the main for any business so as long as their demand grow up the competitions
between those company running always. Customers are always looking for better quality, long
durability, lower cost, good design etc. as N. Mohammad they try their best for getting more closer
to their customer and give them their best product and also try to know what are they willing to
get from them in future, its a very to opportunity for them.

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Products OF N.Mohammad
Plastic Door Plastic Bowl, Bucket, Mora

Plastic Chair:

Plastic Round Folding Table:

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Plastic Rack, Jug, Flower Pot Plastic Wardrobe, Dining Table, Hange

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Pricing Strategy:
For doing new business first we must set a pricing strategy to entering into the business. We
need to be careful about the strategy so that people dont face any price issue or they could
purchase it as they want. We will follow one strategy at the very first stage of our exporting
business.
It would aim to attract buyers by offering lower prices on goods and services. This
technique will mainly be used to draw attention away from their competition; penetration pricing
does tend to result in an initial loss of income for the business.
Over time, however, through increase in awareness it can drive up profits and help businesses to
stand out from the crowd. In the long run, after sufficiently penetrating a market, we can wind up
raising their prices to better reflect the state of the position within the market.

When it comes to the products price. We have accumulated certain data and have put up a price
on it.

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For Example:
In Bangladesh, Our Chair Price usually goes around BDT 500 600 for a Chair, but as we
entering into a New Market, Our prices should be kept low as we have to attract a lot of
customers to establish a new market in foreign countries. So for India, We should keep the
price around 260 INR & for Sri Lanka, our prices should be 1000-1100 LKR.
In Bangladesh, Our Door Price usually goes around BDT for Doors, but as we entering
into a New Market, Our prices should be kept low as we have to attract a lot of customers
to establish a new market in foreign countries. So for India, We should keep the price
around INR & for Sri Lanka, Our prices should be.

Terms & Conditions

India

Doing business in India

India is one of the fastest growing economies in the world. The UK exported goods worth 6.35
billion to India and services valued at 2.24 billion in 2014, and the UK is the third largest investor
in India.

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Its a very large country made up of 29 different states and 7 union territories. The market varies
widely across its many different regions and states.

India is a market which requires a lot of patience and a long-term strategy to be successful.

Benefits for doing businesses exporting to India

There are several reasons to choose India as an export destination:

English is widely spoken

rising personal incomes creating a new middle class consumer market
fast-growing economy with one of the worlds largest youth populations
expanding emerging cities with more than 50 cities now over a million people

Challenges and risks of doing business in India

India is a price-competitive market and price is an important consideration for consumers. You
will be expected to negotiate on the price for your goods and to discount.

You must check what the import duty is for your product in India to see if your export is viable.
Its likely to be a minimum of 35% once all additional taxes are included.

You should be aware of:

multiple religious, ethnic and annual variations in holiday timings, requiring careful
planning for business trips
barriers to trade and investment in some sectors because of regulatory constraints, local
sourcing requirements and import tariffs
intellectual property protection (IP)
risk of delays due to administrative requirements
difficulty of land acquisition
access to the right skills in the local workforce
infrastructure challenges, including for distribution and logistics

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 extremely hot weather in summer and wet weather in the monsoon season can affect
business
risk of bribery and corruption

Language Consideration:

Language Consideration is a big barrier if we are trading in a foreign country. But As a

neighboring country, India is widely used English as their formal language. So it wont be a
problem for Communicating with Indian people.

India is hierarchical, even in the office situation. In meetings, small talk, particularly about the
family, is highly valued as you build a relationship.

Important rules of behavior include:

using your right hand in all situations

always having a business card to present

Business and official contacts are addressed as Mr/Mrs/Ms or Sri/Smt (Srimati) with surname.
Refer to business superiors and those senior in age as sir or madam. Do not use first names
unless invited to do so.

Contract Terms & Conditions:

Complying with HMRC regulations to export to India

You must make export declarations to HMRC through the National Export System (NES) to export
your goods to India.

You must classify your goods as part of the declaration, including a commodity code and a
Customs Procedure Code (CPC).

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Customs in India

The Central Board of Excise and Customs provides information on Indian customs tariffs. Indias
current customs regulations are guided by the Foreign Trade Policy 2015 to 2020.

Your goods should be appropriately packed for India. Packages may receive heavy handling and
be left in the open air for longer than anticipated, so you must take into account Indias climate.

Documentation in India

Mandatory documents required for import of goods:

bill of lading or airway bill

commercial invoice cum packing list
bill of entry

Shipping your goods to India

If you are not knowledgeable about international shipping procedures you can use a freight
forwarder to move your goods. A forwarder will have extensive knowledge of documentation
requirements, regulations, transportation costs and banking practices in India.

Find freight forwarding companies to help you transport your goods to India via the British
International Freight Association (BIFA) or the Freight Transport Association (FTA).

Growth potential in India

The International Monetary Fund (IMF) has forecast 7.5% growth in Gross Domestic Product
(GDP) for 2016.India has removed the majority of its trade barriers to improve the business
environment. Huge investment potential exists in sectors such as life sciences, manufacturing,
energy and infrastructure.

Free trade agreements with India

A free trade agreement between the Bangladesh and India is currently being negotiated.
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 According to National Industrial Policy of India; few rules are as follows:
Foreign investors are allowed to hold more than 50% equity ownership in most of
the sectors, and 100% percent equity ownership in some sectors.
Foreign Institutional Investors ("FII's) from reputable institutions (like pension
funds, mutual funds) may participate in the Indian capital markets.
Customs duties have been slashed considerably; duty-free imports are allowed in
some cases.
The rupee is completely convertible; 100% of foreign exchange earnings can be
converted at free market rates.
Joint ventures with trading companies and imports of secondhand plants and
machinery are allowed.
Custom Duty of 29.5 % in India for Plastic products

Imports of some products are subject to compliance with specified Indian quality standards.
Manufacturers must obtain certification from the Bureau of Indian Standards (BIS) before
exporting such goods to India. BIS does offer pre-certification subject to production inspections.

Around 109 products are subject to compliance with these standards, including:

food preservatives and additives

milk powder
certain electrical appliances
some types of gas cylinders
cement

TAX RATES

Corporate taxation in India

If you set up an office in India, corporate tax will apply.

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Non-resident companies and branches of foreign companies are taxed at a rate of 40% plus other
surcharges. Domestic companies and partnerships are charged at 30% plus surcharges.

India makes provision for advance rulings to guide investors and exporters on their tax liabilities,
and on the customs and excise duty implications of transactions.

Concessions in tax regime are available for foreign investors in high-tech areas.
The corporate income tax effective rate for domestic companies is 35% while the
profits of branches in India of foreign companies are taxed at 45%. Companies
incorporated in India even with 100% foreign ownership, are considered domestic
companies under the Indian laws.
New industrial undertakings may deduct 25% of their gross total income for eight
years

Labelling requirements in India

All imported pre-packaged commodities intended for direct retail sale must include specific
information on the label.

Declarations may be printed in English or Hindi. All imported goods as well as transport
documents must show standard units of measurement and weight.

You must comply with these requirements for your consignment to be cleared by customs in India.

Slightly different arrangements apply to pre-packaged commodities such as raw materials or

components that need further processing before they are sold to consumers.

Intellectual property (IP) in India

You must register your intellectual property in India to guard against potential infringement.
Registration of patents and trademarks can take months and sometimes years, so you should plan
well ahead.

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If faced with infringement or piracy you should engage a local legal practitioner who understands
the context and has experience of initiating appropriate civil or criminal proceedings.

Licensing

Procedure for granting/acquiring a patent license:

Documentation of the agreement between the parties:
The patent owner and the licensee should mutually arrive at and sign an agreement in writing, as
recited in Section 68 of the Indian Patents Act. The agreement should include the terms and
conditions of the license.

Registration at the Patent Office:

Following the signing of the license agreement, the party acquiring the license has to write to the
Controller to register the title or interest in the patent within six months from the date of agreement.
The registration has to be done in accordance with Sections 69(1) and 69(2) and rules 90(1) and
90(2). The application must be accompanied by the agreement signed by both parties to support
the validity of the license. The terms and conditions of the license can be kept confidential by the
Controller on request by licensee or the licensor.

Review by the Controller:

The Controller reviews the application upon reception. Once reviewed, the controller enters all
details along with the details of the supporting documents in the register of patents as per Section
67.
Any unregistered license agreement will be considered invalid by the controller or the court in
case of related proceedings.
Restrictive/Unlawful Inclusions in a License
As per section 140 of the Indian Patent Act, unlawful insertions, considered as restrictive
Agreement.

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 Intellectual Property Protection - As our company has taken the responsibility to expand
the business of this popular authentic delicacy, we have taken measure to protect our
products image so that no other company can be benefited of the name or the image of N.
Mohammad. We have taken legal protection through patient. No other company in home
or abroad can use the name of our product.
Product liability consideration - As we export our products through shipping, economic
instability may create problem in both home country and to the foreign countries we export
our products. Economic instability such as strikes may create obstacle for clearing custom
regulation and reach the hands of distributers from the warehouse. On the other hand our
products are perishable thus the products may run out of expire date and become spoilt. In
this case the company has to face substantial amount of losses due to damage of finished
products.

Sri Lanka
Language Consideration: Language Consideration is a big barrier if we are trading in a foreign
country. But As a neighboring country, Sri Lanka is widely used English as their formal language.
So it wont be a problem for Communicating with Sri Lankan people. But their main language is
Sinhalese and Tamil.

Doing business in Sri Lanka

India is one of the fastest growing economies in the world. The UK exported goods worth 6.35
billion to India and services valued at 2.24 billion in 2014, and the UK is the third largest investor
in India.

Its a very large country made up of 29 different states and 7 union territories. The market varies
widely across its many different regions and states.

India is a market which requires a lot of patience and a long-term strategy to be successful.

Benefits for doing businesses exporting to Sri Lanka

Benefits for UK businesses exporting to Sri Lanka include:

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 English widely spoken
strong historical and trading links with the SAARC Countries
commercial law based on English law
highest rated in south Asia in World Banks Ease of Doing Business ranking
gateway country to Indian market via a Free Trade Agreement

Strengths of the Sri Lankan market include:

high performing economy

highly skilled and educated workforce
logistical hub for south Asian region

Challenges and risks of doing business in India

Bureaucracy, nepotism and a lack of transparency are all prominent in the Sri Lankan business
environment.

Sri Lanka was ranked 85th in Transparency Internationals Corruption Perceptions Index for 2014.

Read the Foreign and Commonwealth Offices (FCO) Overseas Business Risk guide for Sri Lanka.

Growth potential
Diversify or Concentrate: The Role of Product and Market Forces

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Economic Growth

Sri Lankas economy is one of the fastest growing in the region with 7.4% growth in 2014. The
economy is expected to grow by 6.9% in 2015.

However, government debt has been increasing and debt reduction is proving difficult to achieve
due to low revenue. In 2014 the deficit stood at 6% of GDP. Sri Lankas short term debt is
equivalent to over half of its foreign reserves.

Free trade agreements

Sri Lanka has Free Trade Agreements (FTA) with India, Bangladesh and Pakistan which can
reduce import tariffs into those countries. It does not apply to all goods and services.

Sri Lanka is also expected to finalize a FTA with China

Contract Terms & Conditions:

Startup considerations

Routes to market include:

setting up a company, branch or franchise

establishing a partnership
appointment of agents/distributors

The Central Bank of Sri Lankas has a Step-by-step Guide to Doing Business in Sri Lanka for
information on setting up a company in Sri Lanka.

The Department of the Registrar of Companies is responsible for incorporating companies.

Tax and legal obligations differ depending on which business structure you choose. The Board of
Investment of Sri Lanka (BOI) can assist in establishing a company. Depending on the level of
investment the BOI is able to offer tax incentives and holidays.
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There are no special laws governing the contractual appointments of Sri Lankan agents by foreign
principals.

Legal considerations:

The laws and the court system in Sri Lanka are based on English Law. Roman Dutch Law or local
laws such as Kandyan Law or Thesavalamai Law can apply for property and inheritance.

Standards and technical regulations

The Sri Lanka Standards Institution (SLSI) is the national standards body of Sri Lanka. It is a
member of the International Organization for Standardization (ISO)

Consumer goods exported to Sri Lanka must indicate the Maximum Retail Price (MRP).

Food items must be labelled in English, Sinhala and Tamil.

Prior approval for labelling and packaging should be obtained from the Cosmetics, Devices and
Drugs Authority and SLSI.

Intellectual property (IP)

Sri Lanka IP law recognizes the following forms of intellectual property:

industrial design
patents
trade marks
copyright
layout designs of integrated circuits

Tax and customs considerations:

Sri Lankas tax structure for businesses can be complex so accountancy advice is essential.

Once youve completed a company registration contact the Department of Inland Revenue for:
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 a Value Added Tax (VAT) number
a Tax Identification Number (TIN)
information on other taxes and rates

The BOI can grant exemptions from laws such as Inland Revenue, exchange control and customs
if a project meets certain investment thresholds.

Value Added Tax (VAT)

The VAT rate is 12%.

You can find more information on VAT in the Central Bank of Sri Lankas Step-by-step Guide to
Doing Business in Sri Lanka.

Corporate and income tax

You can find details of corporate taxation in the Central Bank of Sri Lankas Step-by-step Guide
to Doing Business in Sri Lanka.

Employee related taxes include:

Pay As You Earn (PAYE)

Employees Provident Fund (EPF)
Employees Trust Fund (ETF).

Customs

The Sri Lanka Customs authority provides details of customs regulations and procedures.

You can find more about import tariffs in the Market Access Database.

Business behavior:

Sri Lankan business people generally speak English.

Occasionally women or men may prefer not to shake hands with the opposite sex. You should wait
and see if a hand is offered.
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 Distribution Methods
Online:

A channel that is disruptive to the traditional ways of marketing and distribution is the online
channel. Online selling features disintermediation, or the removal of intermediaries, while still
reaching large groups of potential customers. Cutting out the middle man while retaining the ability
to sell to a broadly-based market makes online sales particularly attractive. Harnessing social
networks, online ad campaigns and message boards to spread the word, you can achieve substantial
sales volumes quickly. Your marketing plan has to have an overall strategy, because online sales
can suffer from instability and large variations unless there is a strategic direction to keep potential
customers engaged.

Direct Selling:
Many businesses choose the direct-sales channel, because you have access to the customer and keep all
revenue under the control of the company. Direct sales let you do your market research and choose your
own customers while setting the selling price. The downside is that it takes a lot of time and focus away
from your main preoccupation: the production of high-quality goods. Direct selling is a good match for a
marketing plan that has identified, researched and segmented the final customers.

Sales and Promotion Strategies:

Our sales objective is to increase sales. It would require economic justification. And it will produce
quantifiable results. Advertising and sales do go hand in hand, but its motive is not always sales.
We would build a liaison between the products and customers for a befitting relationship.

The factors that would influence sales are manifolds. They might be the technology, the economy,
product quality, price, distribution, competition etc.

We would measure our sales through approach and assumptions. The process of awareness,
comprehension, conviction and action. The delegation of this process would make the
understanding of sales of products a little bit easier.

A promotional plan can have a wide range of objectives, including: sales increases, new product
acceptance, and creation of brand equity, positioning, competitive retaliations, or creating a
corporate image. Fundamentally, however, there are three basic objectives of promotion:

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 To present information to consumers as well as others
To increase demand
To differentiate a product from others in the marketplace.

There are different ways to promote a product in different areas of media. Many times with the
purchase of a product there are incentives like discounts, free items, or contests. These methods
are used to increase the sales of a given product.

We will promote our business or products by providing your customers with relevant content that
helps fulfill a need either to entertain or educate.

Country Profile

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We have primarily selected five countries and the country which will be most favorable for our
business will be two country where we would like to expand our business.

1. China Economy condition shows-

Gross domestic product: 9.24 trillion USD (2013) World Bank

GDP growth rate: 7.7% annual change (2013) World Bank

Gross national income: 16.08 trillion PPP dollars (2013) World Bank

Unemployment: 4.05% (2015),

Average gross salary: $9,000, annual (2016).

Imports: $1.7 trillion (2015[11])

Main industries: It covers a lot of industrial factors such as (mining and ore processing, iron,
steel, aluminum, and other metals, coal and many pore.) But plastic industry is not
considered under their main industrial factor.

China is the most populated country of the world now. The political section mainly focuses
on exporting as it its the worlds leading exporter.

Currency: Renminbi

Exchange rate (between Chinese Renminbi(Yuan) and Bangladeshi Taka): 1 Chinese Yuan
= 11.58 Bangladeshi Taka

2. Indias Economy condition shows -

Gross domestic product: 1.877 trillion USD (2013) World Bank,

GDP growth rate: 5.0% annual change (2013) World Bank,

Gross national income: 6.7 trillion PPP dollars (2013)World Bank,

Unemployment: Total=10.8 million

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Average gross salary :$1.46 per hour,

Main industries: Plastic industry is not considered under main industrial factor.

Imports: $409.2 billion (2015 EST.)

India is a popularized country and according to UN it is estimated that it will overtake Chinas
population in 2028, the current political section is trying to cope up with the dynamics of the
country but according to business sector its quiet flexible.

Currency: Indian rupee

Exchange rate (between Indian rupee and Bangladeshi Taka): 1 Indian rupee = 1.17
Bangladeshi Taka

3. Polands Economy condition shows

Gross domestic product: 1.0 trillion USD (2015) World Bank

GDP growth rate: 3.6% annual change (2015) World Bank

Gross national income: 873 billion ppp dollars (2013) World Bank

Unemployment: 9.8% (2015),

Minimum Wage: 2000 Zlotys($519.40) 2017

Imports: 170 billion (EUR)

Currency: Polish Zloty
Exchange rate (between Polish zloty and Bangladeshi taka): 1 Polish zloty = 20.30
Bangladeshi Taka

4. Sri Lankas Economy condition shows

Gross domestic product: 82.32 billion USD (2015) World Bank

GDP growth rate: 4.8% annual change (2015) World Bank

Gross national income: 194.1 billion PPP dollars (2013) World Bank

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Unemployment: 4.7% (2015),

Minimum Wage: Rs.10000 monthly (2013)

Imports: 16.1 billion (USD)

Currency: Rupee
Exchange rate (between Sri Lanka Rupee and Bangladeshi taka): 1 Sri Lanka rupee = 0.53
Bangladeshi Taka

5. Malaysias Economy condition shows

Gross domestic product: 296.3 billion USD (2015) World Bank

GDP growth rate: 5.0% annual change (2015) World Bank

Gross national income: 669.5 billion PPP dollars (2013) World Bank

Unemployment: 3.60% (2015),

Minimum Wage: RM.900 to RM.1000 monthly (2013)

Imports: 176,174,598.21 (US$ Thousand)

Currency: Malaysian Ringgit
Exchange rate (between Malaysian Ringgit and Bangladeshi taka): 1 Malaysian Ringgit =
18.12 Bangladeshi Taka

By covering almost a lot of major components we decided to expand our

business in India and Sri Lanka. The reason behind choosing these two
countries are:-

Because Export to SAARC Member Countries always have some advantage and good
environment for business. For SAARC country have some agreement like:-

South Asian Free Trade Area (SAFTA)

Preferential Trade Agreement (PTA)
SAFTA: The Agreement on South Asian Free Trade Area (SAFTA) was signed by all the
member states of the South Asian Association for Regional Cooperation (SAARC), namely, India,

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Bangladesh, Bhutan, Maldives, Nepal, Pakistan and Sri Lanka. India, Pakistan and Sri Lanka are
categorized as Non-Least Developed Contracting States (NLDCS) and Bangladesh, Bhutan,
Maldives and Nepal are categorized as Least Developed Contracting States (LDCS).

PTA: Preferential Trade Agreement (PTA) is a special type of agreement that gives access to
only certain goods. Preferential Trade Agreement is done by reducing tariffs, but it does not abolish
them completely. PTA is established through trade pact and it is the weakest form of economic
integration. Among the SAARC countries, India enjoys PTA with the Afghanistan. Other countries
that have PTA with India are Chile and MERCOSUR (a trading bloc in Latin America comprising
Brazil, Argentina, Uruguay and Paraguay

Sri Lanka:

With an economy worth $80.591 billion (2015) ($233.637 billion PPP estimate), and a per capita
GDP of about $11,068.996 (PPP), Sri Lanka has mostly had strong growth rates in recent years.
The Sri Lankan economy has seen robust annual growth at 6.4 percent over the course of 2003 to
2012, well above its regional peers. In GDP per capita terms, it is ahead of other countries in the
South Asian region. Since the end of the three-decade terrorism, Sri Lanka is now focusing on
long-term strategic and structural development challenges as it strives to transition to an upper
middle income country.

Sri Lankas Gross Domestic Product (GDP) grew by 7.4% during 2014, up slightly from 7.2% in
2013. It is classed by the World Bank as a lower middle income country with a GDP per capita of
$3,558 (2014 World Bank estimate). The government aims to increase this to $4,000 per capita by
2016.Sri Lanka is a market of 21 million people. With its geographical location in south Asia it
can reach a market of over 1.6 billion.

These are some important things to consider while thinking of expanding business to Sri Lanka.

Established plastic industry

Has free trade agreement

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India:
India is known as the fastest growing economy and is considered as one of the next big economy.
A huge market with lots of potential for investors and supply of skilled and unskilled labor is the
main reason behind their success.
The economy of India is the seventh-largest in the world measured by nominal GDP and the third-
largest by purchasing power parity (PPP). The country is classified as a newly industrialized
country, and one of the G-20 major economies, with an average growth rate of approximately 7%
over the last two decades. Maharashtra is the wealthiest Indian state with an annual nominal GDP
of US$330 billion, roughly equivalent to those of Venezuela and the United Arab Emirates, and
accounts for 13.4% of India's GDP followed by the states of Tamil Nadu (US$170 billion) and
Uttar Pradesh (US$150 billion). India's economy became the world's fastest growing major
economy in the last quarter of 2014
India also has an established plastic industry. The Indian plastics industry made a promising
beginning in 1957 with the production of polystyrene. Thereafter, significant progress has been
made, and the industry has grown and diversified rapidly. The industry spans the country and hosts
more than 2,000 exporters. It employs about 4 million people and comprises more than 30,000
processing units, 85-90 percent of which are small and medium-sized enterprises
In addition all of these India is also providing the following benefits
India has no VAT on import taxes
Import duty on plastic product is almost 10%
Tariff may be reduced because of SAFTA agreement.

Why dont we choose China, Poland and Malaysia?

China is in a very good economical state statics proof it very clearly, as there Gross domestic
product is 9.24 trillion USD {(2013) World Bank}, GDP growth rate is 7.7% {annual change
(2013) World Bank}, and Gross national income shows 16.08 trillion PPP dollars {(2013) World
Bank}.
But we were very concerned about their cultural factor, Language barrier. Accounting to the
Bangladesh Plastic Goods Manufacturers and Exporters Association(BPGMEA) China is the top
most export destination(22 percent) which is now reach in a maturity level in product life cycle, it
is likely to face a problem for us to operate there thats why we did not chose it as an option for
us.

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Poland is in a moderate economic state, as there gross domestic product is 1.0 trillion USD {(2015)
World Bank}, GDP growth rate is 3.6% and the unemployment rate is 9.8%. Also transportation
cost of Poland is pretty much high than other country and there has culture and language barriers
with us , it is likely to face a problem for us to operate there thats why we did not chose it as an
option for us.
Malaysia Gross domestic product: 296.3 billion USD (2015) World Bank GDP growth rate: 5.0%
annual change (2015) World Bank Gross national income: 669.5 billion PPP dollars (2013) World
Bank Unemployment: 3.60% (2015), Imports: 176,174,598.21 (US$ Thousand) Currency. In
Malaysia their plastic industries was good but in recent time their market goes down, as we are not
taking too much risk thats why we are not export in Malaysia right now but in future if their
market doing better than we might think about it.

Grid Analysis:
Sri
Variable Weight Lanka India
1. Acceptable (A) Unacceptable (U) factors A/U
a. SAARC Included A A
b. Bilateral Agreement A A
2. Return
a. Market Size 0-5 3 5
b. Market Growth 0-4 2 3
c. Tax Rate 0-3 2 3
d. Business relation 0-3 2 3
e. Infrastructure 0-4 2 3
Total 11 17
3. Risk
a. Competitors 0-4 2 3
b. Political Unrest 0-3 2 1
Total 4 4
Figure 1: Grid Analysis

Here, at first we have pointed out two factors without those a country will be considered as
unacceptable. Then here are some factors which will determine which country will be the best in
terms of risk and return.
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The countries that we have selected all are member of SAARC and Bangladesh has bilateral
agreement with three of them. But with India Bangladesh has been doing business mostly. Both
the country is trying to develop a friendly relation by helping each other in business.
India has the largest market and their market is still growing at a potential rate. India has no vat on
the sale of imported goods.
In terms of risk, India has the highest competitor of our product but by looking at their market size
and growth of their economy we can overlook it. Again if we look at political unrest Sri Lanka is
ahead then the rest to countries. The overall risk less then India to Sri Lana but due to its low return
we have to cancel it and choose India for it highest return opportunity.

Financial Analysis
Well take 6 months to enter this new market and our progress/ individual steps are shown
below:
Task 1 2 3 4 5 6

1.Clearing
Legislative
Obstacles
and getting
export
permission
2. Creating
Hype in
new market
3. Buying
new/extra
machineries
4.Boosting
Production
5.Boosting
Sales
through
Marketing
7.BEP
Crossed
6.Creation
of a steady
market for
products
Estimated Financial Summary of N.Mohammad plastic LTD for the first year:

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 Particulars Amount(T.K)
Total Sales 2,553,024,782.10
Cost of Goods Manufactured 2,414,093,716.05
Gross Profit 305,852,566.6
Operating Profit 99,636,450.2
Net Profit 26,530,733.5
Figure: Financial Analysis of N.Mohammad plastic LTD

Financial Requirement:
Partnership-80%
Bank loan-20%
Sales Forecast:

Unit Sales (per stripe):

Country Produc Jan Feb Mar Apr May Jun July Aug Sep Oct Nov Dec
t

India Plastic 130 130 130 1350 1500 2000 250 300 350 400 450 500
and Sri Door 0 0 0 0 0 0 0 0 0
Lanka

Plastic 300 300 300 350 500 500 550 560 600 670 700 750

Chair

Total unit Sales 160 160 160 1800 2000 2500 305 356 410 467 520 575
0 0 0 0 0 0 0 0 0

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 Calculated Total Sales Forecast Graph :
Chart Title
25000

20000

15000

10000

5000

0
Plastic Door Plastic Chair

Jan Feb Mar April May June July August Sep Octo Nov Dec

Figure: Sales forecast

Calculated Net Profit Graph :

Net income
600000000

500000000

400000000

300000000

200000000

100000000

0
0 1 2 3 4 5 6

Figure: Net profit scale

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 Risk That May Face Over there
India:

Country Risk:
Lack of infrastructure and shortcomings in the education system
Bureaucratic red tape and persistent political tensions
Net importer of energy resources
Rising level of private firm indebtedness
Weak public finances
Persistent uncertainties over the Kashmir issue

Market Risk:
Demand and Supply Risks
Quantities, Qualities, Suppliers, lead time, interest rate risks
Raw material rates Interruption in the supply of Raw material
Raw materials are procured from different sources at competitive prices.
Alternative sources are developed for uninterrupted supply of raw materials Demand
and supply are external factors on which company has no control, but however the
Company plans its production and sales from the experience gained in the past.
The Company tries to reduce the gap between demand and supply.
Proper inventory control systems have been put in place.

Political Risk:

Slow-down in government decisions due to political instability

Adverse changes or unpredictability on foreign investment, import, ownership, pricing
or tax issues
Cultural problems, delays or legal disputes due to local partners and suppliers
Labor unrest and industrial action
Disruption of normal business due to social and political unrest
Corruption and bureaucratic inefficiency
Unexpected delays and cost-overruns due to overlapping governmental jurisdiction
Fluctuation in interest, inflation and currency rates

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 Credit Risk:
Risks in settlement of dues by clients.
Provision for bad and doubtful debts.
Systems put in place for assessment of creditworthiness of Customers.
Provision for bad and doubtful debts made to arrive at correct financial position of the
Company.
Appropriate recovery management and follow up

Sri Lanka:

Country Risk:
Lack of infrastructures
Low levels of capital public spending because of the burden of debt servicing
Vulnerability linked to dependence on short- term external funding
Weak productivity of the secondary sector
Poor infrastructure recurrent shortages of electricity and fuel
Market Risk:
Adverse impact on business performance due to intense competition, new entrants,
changes to customer attitudes and/or economic conditions.
Continuous focus on innovation.
Regular monitoring of customer /consumer trends.
Political Risk:
To minimize the negative impact from the changes in the external environment
which are beyond our control?
To Comply with the Regulatory Requirements
Compliance with statutory requirements for all tax and other payments.
Priorities the IT requirements for reporting.
Set up internal dead-lines for each criterion.
Meet the dead line for Statutory Returns and review all returns by Group Finance
before the submission.
Continuous dialogue with statutory bodies to get the updated reporting requirements.

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 Currency Risk:

To minimize risk associated with the fluctuation in foreign currency rates in relation
to export proceeds, import payments and foreign currency debt transactions.
Export proceeds exceeding the import payments and foreign currency debt payments
act as a natural hedge.
An ensuring effective Treasury operation through various hedging techniques such
as forward bookings, forward sales, swaps and options contracts etc.
Credit Risk:
Adverse impact on the liquidity position as a result of payment delays/ nonpayment
by debtors.
Obtaining insurance cover for export debtors.
Developing and implementing Credit Policies.
Obtaining bank guarantees, deposits and collateral for all major local customers.
Closely monitoring the debtor balances, laying action plans, and determining the same
are under control.
Commercial Risk:
Losing the principals/business partners due to global mergers and acquisitions, intense
competition, service level gaps.
To prevent the causes that damages reputation.
To minimize the impact if, despite our best endeavors, a reputation crisis should occur.

Implementation Schedule:
According to our business plan, we are basically expanding our sales by exporting which will lead
to increase in demand. So, as we have mentioned that we will be entering that market within six
month, so we will recruit manpower to meet the increased demand and obviously we will have to
acquire new machineries as well so that we can keep up the flow of our supply chain and satisfy
the buyers order fulfillment.

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 Conclusion

Globalization has brought the world in one place. Due to mutual understanding among
countries, the trade barrier is being abolished in the world of business day by day. India and
Sri Lanka will be the new milestone of export business for N. Mohammad. Due to their
favorable government policies and trade policies with Bangladesh, it will be easier for N.
Mohammad to export its goods to India and Sri Lanka. Their political stability, supportive
population, suitable geographical location, trade policy will make the export of N.
Mohammad Plastic Company easier and profitable.
As globalization has allowed every small businesses to dream of being a globally recognized
brand. Our vision for the future is plain and simple. We want the name N. Mohammad to
compete on a global scale and enlighten the every corner of the world, as they have in this
country.

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 Reference
http://smallbusiness.chron.com/businesses-operate-internationally-78226.html
http://myventurepad.com/business-opportunities-international-markets/
http://www.fao.org/docrep/w5973e/w5973e0a.htm
https://www.linkedin.com/pulse/20141106102842-49707103-intentional-business-
competitive-analysis-and-forecast-procedure

https://www.gov.uk/government/publications/exporting-to-sri-lanka/exporting-to-sri-
lanka

http://www.slhcdhaka.org/trade_investment.php

http://www.areadevelopment.com/Plastics/April2012/market-report-plastics-industry-
2614177.shtml
http://www.ifis.pl/en/commercial-sectors/plastics-sector-in-poland/swot-analysis/

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