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Bee Sticky Pty Ltd is an established Australian manufacturing business that produces a wide range of high quality and premium organic honey products - HSC - SSCE Business Studies - Question 25 - 2022 - Paper 1
Question 25
Bee Sticky Pty Ltd is an established Australian manufacturing business that produces a wide range of high quality and premium organic honey products. It is expanding... show full transcript
Worked Solution & Example Answer:Bee Sticky Pty Ltd is an established Australian manufacturing business that produces a wide range of high quality and premium organic honey products - HSC - SSCE Business Studies - Question 25 - 2022 - Paper 1
Step 1
describe branding and product strategies the business could use to expand into global markets
Answer
To successfully expand into global markets, Bee Sticky Pty Ltd should consider several branding and product strategies:
Product Strategy
- Quality Assurance: Emphasize the high quality and premium nature of its organic honey, which should be a key differentiator in markets where consumers are health-conscious and prefer premium products. Certification organic and medical approvals can further enhance trust.
- Branding Consistency: Maintain a consistent brand image that resonates across different cultures while highlighting its Australian heritage, which is often associated with purity and quality.
- Cultural Adaptation: Tailor product offerings to meet local tastes and preferences, such as introducing flavored honey or packaging that resonates with local traditions.
Branding Strategy
- Marketing Campaigns: Engage in targeted marketing campaigns that draw attention to the unique qualities of Australian honey. Use digital marketing platforms to reach a broader audience.
- Partnerships: Collaborate with local influencers or chefs to boost product visibility and credibility.
- Sustainability Messaging: Focus messaging on sustainability and ethical sourcing, appealing to environmentally conscious consumers.
Step 2
recommend a channel choice that would suit this business’s expansion
Answer
For channel choice, Bee Sticky Pty Ltd should consider the following:
Recommended Channel Choice
- Selective Distribution: Work with select high-end retail outlets, organic shops, and gourmet food stores that align with the brand’s premium positioning. This method allows control over product placement and the customer experience.
- Direct-to-Consumer (D2C) Online Sales: Establish an online sales platform to reach global consumers directly. This choice helps to manage brand narrative and customer relationship effectively, potentially increasing margins by eliminating intermediaries.
Step 3
analyse the global financial management strategies required for expansion
Answer
To effectively manage the financial aspects of global expansion, Bee Sticky Pty Ltd should focus on the following global financial management strategies:
Financial Management Strategies
- Hedging Currency Risks: Utilize financial instruments to hedge against potential fluctuations in the Australian dollar, which can affect profit margins in foreign markets. This could involve forward contracts or options.
- Understanding Exchange Rates: Constantly monitor and analyze exchange rate trends to optimize pricing strategies in different markets and ensure competitiveness.
- International Payment Systems: Since there is a lack of experience with foreign payment systems, the company should invest in training and possibly partner with local financial institutions that understand the local payment landscape.
- International Taxation Compliance: Engage experts in international taxation to navigate the complexities of taxes in different jurisdictions, ensuring compliance and optimizing tax liabilities.