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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
The branding strategy for Bee Sticky Pty Ltd should focus on emphasizing the high quality and premium nature of its organic honey products. This can be achieved through:
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Brand Identity Development: Establish a strong brand identity that reflects the Australian heritage and organic sourcing of the honey. Packaging can feature eco-friendly materials to resonate with environmentally conscious consumers.
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Global Branding: Standardize the branding across all markets while allowing for local adaptations. This can help in positioning the brand internationally as a luxury product while appealing to local tastes and preferences.
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Online Presence: Build a robust online presence through a user-friendly website and active social media engagement to enhance visibility and consumer connection.
In terms of product strategies:
- Product Diversification: Introduce variations of honey products, such as flavored or infused honey, ensuring they cater to local tastes in international markets.
- Health Positioning: Advertise the health benefits of honey (e.g., natural remedies) to attract health-conscious consumers.
By combining these strategies, Bee Sticky can successfully penetrate global markets.
Step 2
recommend a channel choice that would suit this business’s expansion
Answer
For the global expansion of Bee Sticky Pty Ltd, an intensive distribution strategy is recommended. This approach allows the business to reach a broader audience through various channels. Key elements include:
- Collaboration with Distributors: Partnering with specialized distributors in target markets who understand local consumer behavior and retail landscapes can accelerate market entry.
- Online Retailing: Utilize e-commerce platforms to facilitate direct sales, broadening market access and reducing dependency on traditional retail.
- Local Partnerships: Engage with local restaurants, health food stores, and gourmet shops to create visibility and credibility in the new markets.
This multifaceted approach ensures that Bee Sticky can maximize its reach while maintaining brand integrity.
Step 3
analyse the global financial management strategies required for a successful operation
Answer
To ensure the success of Bee Sticky Pty Ltd's global operations, comprehensive financial management strategies must be considered, including:
- Exchange Rate Management: Implementing strategies such as forward contracts can mitigate risks associated with currency fluctuations when trading in international markets.
- Hedging: Utilizing hedging strategies can protect the company from adverse movements in exchange rates affecting profit margins.
- International Payment Methods: Establish a robust framework for navigating international payment systems, including considerations for transaction fees and security protocols.
- Budgeting and Forecasting: Accurate budgeting, along with financial forecasting, will help in identifying potential costs and revenues in new markets. This will aid in determining financial viability before significant investments.
By focusing on these aspects, the company can better manage its financial risks and enhance its opportunities in the global market.