Environmental scanning

• The presentation illustrates about the global business plan and making an entry into the market by A2 Milk in Australia.

• The product category selected is the a2 Milk™ light which has very little fat, yet deliciously creamy and has smooth consistency.

• The topic will also illustrate about the strengths and weaknesses of the company along with the various forces affecting the business functioning.

• A proper action plan and conducting environmental plan are necessary for implementing the right international strategy.

• A2 milk is one of the major  companies that produces cow milk and combine both a1 and a2 protein types through natural produce.

• The milk products are healthy and are consumable by the clients who need healthy digestion of dairy products.

• The company wants to go global by making a market entry in India to sell the diary product to generate higher business revenue.

• To ensure successful global market entry, it is important to assess whether A2 Milk can fit the cultural aspects of the location and it possesses the strategic capability or not (a2milk.com.au 2018).

• To expand customer base by making global outreach and generate higher revenue in business
• Few of the reasons also include strategizing around the globe, gaining the ability to survive in the killer competition, leveraging the resources and prioritising on the culture, values and ethics
• Competing with global businesses in India and focusing on cost reduction globally along with restructuring of global strategies are other things to be considered for global market entry (Hitt, Li and Xu 2016).
• Fosters innovation and creativity with the use of Global economy pyramid as well.
• The product a2 light milk is a great product with lesser fat components and is effective for the people who experience problems in digesting diary food items.
• Based on survey conducted, it has been found that people in India often suffer from obesity and sometimes digestive health issues.
• Thus, the lesser fat present in the a2 light milk can make them consume less fatty diary item and at the same time, remain healthy (Musso and Francioni 2014).
• The product is natural and as it meant to be, which can also make the people in India to switch between their preferred diary product with the milk product offered by A2 Milk, Australia.

• He organisational values, beliefs and behaviours are associated with whether the company can adopt the culture of India or not while making a market entry.
• It is important to train the staffs to enhance their skills and make them adopt the new culture and work within the existing workplace at A2 Milk.
• It is important to check whether the job candidate can conform and consider e major values and beliefs of the organisation that constitute the culture.
• With the entry in new market, it must be ensured that cultural fit remain at the organisation that recruits candidates and even select the candidates in India with appropriate skills and knowledge to become successful in the outside environment.

• Market fit means the ability of the business to make an entry in the Indian market with a2 light milk for fulfilling the demands and expectations of the customers.

• The diary industry in India is quite good and thus the diary product with lesser fat components and health beneficiary vitamins and minerals can suit the needs of people

• A2 Milk must identify the targeted market segments and assess the potential of customers along with their needs and preferences (Tulung 2017)

• The value proposition should be identified through understanding of clients’ needs that correspond to the probable effective market growth opportunities

• To manage successful global expansion in the country India
• To ensure entering the market segments and ensure that the a2 light milk can be successful among Indian markets
• To focus on environment friendly products and ensure keeping the health and safety concerns in mind
• To raise the profit level and increase global exposure for drawing more clients and generate higher revenue.

Environmental scanning

• The internal and external environment are assessed and analysed for determining the strengths and weaknesses.
• This will allow A2 Milk, Australia to assist the organizational management understand the mission and vision and create a future direction to become successful in the global competitive marketplace.
• SWOT analysis
• Strengths
• Strong workforce evolved through effective training sessions and investments done for managing the resources
• Positive culture among the dealers and distributors
• Expert in entering the foreign markets and this creates new stream for generating higher revenue (Lin 2014)
• High level of customer satisfaction due to the less fat milk product made available
• Weaknesses
• Limitations of becoming successful outside the selling of core business products
• Lack of demand forecasting
• The increased rate of attrition within the workplace
• The profit level and net contribution of A2 Milk is quite lesser than the industry average (Verbeke 2013)

The internal and external environment are assessed and analysed for determining the strengths and weaknesses.

• This will allow A2 Milk, Australia to assist the organizational management understand the mission and vision and create a future direction to become successful in the global competitive marketplace.

Strengths

• Strong workforce evolved through effective training sessions and investments done for managing the resources
• Positive culture among the dealers and distributors
• Expert in entering the foreign markets and this creates new stream for generating higher revenue (Lin 2014)
• High level of customer satisfaction due to the less fat milk product made available

Weaknesses

• Limitations of becoming successful outside the selling of core business products
• Lack of demand forecasting
• The increased rate of attrition within the workplace
• The profit level and net contribution of A2 Milk is quite lesser than the industry average (Verbeke 2013)

Political

• The political stability and need of diary items in India’s economy
• The corruption is high, which can affect the global business for A2 Milk
• Governmental laws and rules regarding the global business activities
• Taxation policies and pricing rules can affect the pricing of diary products

Economic

• Intervention of Government in the free market
• A2 Milk needs to raise capital and manage investments to succeed in the global market
• The level of skills and knowledge possessed by people regarding the diary industry in India
• The growth and economy and exchange rates must be assessed to ensure proper pricing and delivery of a2 light milk in India (Holmes  et al. 2018).

Social

• The level of education should be assessed and the company can contribute to social wellbeing
• The promotions of healthy consuming behaviours and consuming less fat milk can cerate awareness among the obese people and create interest among them to purchase the product
• The company needs to adopt the local culture to become successful

Technological

• Implementation of advanced technologies and use of advanced machineries and equipments
• The use of advanced technologies can cerate ease in managing the cost structure of products and services

Legal

• Anti-trust law implemented for managing proper trust among the customers and influencing their purchasing behaviours.
• Laws and legislations regarding protection of patents, copyrights and intellectual property law.
• Consumer protection law, health and safety and data protection laws.
• Environmental
• The legislations and laws are to be implemented to keep the environment safe and free from pollution
• Attitudes towards greener approaches and ecological products can also help in managing sustainability (Li et al. 2017)
• Use of renewable energy sources for managing the business operations and production can also assist in managing global business properly.

Strategic capabilities

• The strategic capabilities include the implementation of various global strategies for entering the new market in India.
• The strategic capabilities include the product innovation and brand leadership strategy
• The brand innovation must involve maintaining good quality of diary products and making changes to improve the product features
• The distribution and production strategies are to be implemented to target the right market segments and delivering products accordingly (Rugman and Verbeke 2017).
• Management of resources is essential with the changes in market conditions for shifting from one product to another.

Management of inventory and specific skills and technologies can also position A2 Milk well and good in the competitive marketplace.

Managing greener approaches and keeping the environment clean can reduce pollution and manage sustainability to achieve a competitive edge over its competitors.

• The leaders are responsible for fixing the marketing tangibility and making sure to keep the supply chain activities proper managed.
• The transformation leadership could allow the business to manage its employees properly and allow them to share their views and opinions required for decision making
• The staffs must be provided with training sessions to adopt the culture and other business activities that will be managed while implementing the global strategy to make an entry to Indian market (Kang and Montoya 2014)
• The strategic advantage or benefits of symmetric is needed to identified rather than he asymmetric data or information.

• To enable value proposition, the leader should focus on serving the customers rather than the production of products at first.

• The leadership components are responsible for making the staffs aware about the organisational policies and laws implemented

• Consistent communication between the manager and staffs can further help in keeping them informed about the adoption of sustainable measures to achieve sustainable competitive advantage in business.

Market entry strategy

• The direct exporting is an effective market entry strategy used by A2 milk Australia.
• It will assist in managing the sales program turn to the distributors to and represent the products and services properly in the Indian market
• The company has enabled the agents and distributors to move to India and create interest among the clients regarding the products and services.
• The company can also establish its manufacturing ad production department in India for exporting the products and services directly to the foreign markets
• The foreign distribution, logistics, supply chain management and shipment are also managed for ensuring that the products and services are properly delivered in the market segments of India.

Sustainable strategies

• To manage sustainable growth and development at A2 Milk, environmental science should be applied along with green technologies for enabling production of green products that can create lesser impact on the environment.
• With the competitive Indian dairy industry, A2 milk needs to do something unique and this can be possible with the adoption of right sustainable strategy
• With the rise in green demands, the go-green strategy can maximise operational effectiveness, reduce costs of operations, maintain durability and using renewable energy sources for creating lesser negative impact on the environment (a2milk.com.au 2018).
• The farms are managed and the company wants to do the same while establishing its presence in the Indian market
• The cows should be treated properly and protected according to the Animal Welfare to mace sure that the milk produced in free from any antibiotics
• The Dairy Animal Welfare Review program assures the customers to get best quality service through independent and third party audits.
• The company shall need to use solar and biomass heat systems for using the energy and power the refrigeration unit.
• The heat pumps should be maintained at proper temperature and pressure for making energy savings and at the same time, test technologies to concentrate the milk.
• This would also reduce the emissions from transportation activities, furthermore reduce the costs of operations.
• The Dairy Animal Welfare Review program assures the customers to get best quality service through independent and third party audits.
• The company shall need to use solar and biomass heat systems for using the energy and power the refrigeration unit.
• The heat pumps should be maintained at proper temperature and pressure for making energy savings and at the same time, test technologies to concentrate the milk.
• This would also reduce the emissions from transportation activities, furthermore reduce the costs of operations.
• To enable proper market entry strategy, the cultural identity is essential
• The customers in India are willing to pay some extra for the environment friendly products, which can cerate convenience for A2 Milk to deliver products accordingly
• This will increase the likelihood for engagement and create positive perception among the clients too.

Risks of market entry

• Planning to make changes in the value of currency in India
• Risks related to change in political conditions and unanticipated Government intervention
• Market risks resulting from threats of competitors
• Lack of proper cash flow and reliance on a particular individual can also deteriorate the workforce efficiency at A2 milk, Australia.
• Contractual difficulties and complexities arising due to risks

The sequence of entry enables proper exporting of goods in the foreign market segments.

The logistics and supply chain activities enable exporting the goods.

The process is fast and soon it reaches the importer who sells those to the market.

The business acts as an intermediary between the business and customers and so the middlemen costs some money.

Activities	Time duration
Logistics and supply chain activities- Storing goods and services that are needed to be exported	10 days
Shipment and delivering the services to the foreign markets	5 days
Reached to the importers who make the products and services available in the stores	2 days
Delivery to the customers	3 days

• The sequence of entry enables proper exporting of goods in the foreign market segments.

• The logistics and supply chain activities enable exporting the goods.

• The process is fast and soon it reaches the importer who sells those to the market.

• The business acts as an intermediary between the business and customers and so the middlemen costs some money.

Conclusion

• The topic focused on the international marketing strategy by A2 Milk to make an entry into the market

• The product chosen here was the A2 Light milk

• To ensure successful implementation of global strategy, environment scanning was done along with identification of the firm’s strategic capabilities

• A proper strategic and action plan had been developed to ensure that the global market entry strategy could be successful for A2 Milk, Australia.

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