Economic development Essay Example for Free

Economic development Essay Economic development and economic growth are both indicators of the economic position of the country. Economic growth is the growth in gross domestic product and economic development is related to growth in the standard of living and poverty. As you can see economic growth and economic development are not the same thing, economic development is far more than just growth in GDP as it involves indicators that are not purely economically related. However economic growth is an indicator of economic development but there are also several other factors that represent economic development. These indicators are; life expectancy at birth, infant mortality rate, daily calorie supply per capita, adult literacy rate, number of doctors per 1000 people, average years of schooling, availability of clean water, freedom of press, immunisation rates and levels of discrimination. As you can see these are generally not economic indicators but when they are combined they form the economic development figure. There are fifteen barriers to economic development, the first of these being a lack of physical capital. Lack physical capital is a significant barrier to the development of a country for several reasons. There is already a shortage of capital that further leads to less capital being produced; this creates significant problems for developing countries. In these countries the income levels are low leading to low savings and therefore little money for investment in capital. This lack of capital furthers the low productivity therefore the employment remains low. This also leads to a lack of demand for goods and services the low demand means that less needs to be produced therefore less capital needs to be produced. This then forces the country into a cycle of underdevelopment. This consequently creates a barrier for the country to develop. An example of this is in most less developed countries where they are in constant times of war and civil unrest. Their capital is destroyed through war making it difficult for the country to produce more capital. Also, Sierra Leone, the worlds least developed country, as shown by the human development index, has a GDP per capita of US$159 this creates significant problems for the economy and its development. A lack of human capital is the next barrier to development. This barrier is created through a lack of education and training of the population. It also relates to the general heath and wellbeing of the population. If the labour-force are getting sick then they are unable to work and therefore decreasing the labour capital. A current example of this situation is in South Africa. In South Africa the micro-economic impact of AIDS is very serious and is getting worse. Among skilled workers HIV prevalence is expected to peak between a fifth and a quarter percent by the year 2000, which is consequently depleting the number of skilled workers creating the lack of capital development barrier. These problems are also leading to a rise in insurance bills and the costs of health benefits rise. This therefore diverts government savings to pay for health care and as a result the availability of funds for investment will fall. AIDS is predicted to knock 0.3 to 0.4 percent off the annual growth rate. As you can see this is a severe barrier to development in these less developed countries. A strategy to this barrier is human resource development. The next barrier to development is a lack of savings. This also causes low levels of investment due to the low income leading to low savings. This low level of savings is also caused by several other reasons such as; poorly developed financial markets, holding of savings in traditional non-money forms, the purchase of unnecessary luxury items, cheap family labour reducing the incentive to save for investment and the general indebtedness of the population. The low incentive to reinvest profits by businesses also reduces the savings. Budget deficits by the government to make up for the low taxation revenue are also decreasing the amount being saved. When there is a lack of savings caused by any of these causes it forces the need to borrow form overseas that consequently leads to problems with the balance of payments. An example of lack of savings exists in Nigeria. In Nigeria there are severe problems with their currency. These begin with significant fraud problems also the majority of trading is done with cash in which until recently the currency did not exceed the equivalent of 50 cents. The next problem is that they dont believe in banks, the only use of banks is to exchange foreign currencies for tourists, which leads to a lack of funds for investments. Also, Local traders keep all working capital stuffed in coca jars, as they believe business opportunities will disappear in the time it takes to make a withdrawal. Banks do not allow credit due to the fear of not being repaid. All of these factors contribute to a large barrier to development simply due to a lack of savings. This could be solved through improving the financial system. Another barrier to development is a lack of taxation revenue. A lack of taxation creates barriers as it means the government has little finances to use on economic development. The high unemployment, very low-income levels and difficulties in tax collection cause this lack of tax revenue. The government is then forced to collect tax mainly from customs duties, sales taxes and excises. These taxes can prove to be very inflationary and are also regressive. Another problem with these taxes is that they discourage investment and the creation of employment. Nigeria also has a problem with the collection of taxation. Most Nigerians that can afford to avoid paying taxes, as they believe that their money will be flinched by the corrupt government. This creates severe problems for the country, as there is no money for the government to use in investment to promote economic development. Improving the financial system will also help solve this barrier. The next barrier to entry is a lack of infrastructure. Less developed countries rarely have a sufficient supply of necessities such as roads, ports, sewerage, power schools or water- facilities etc. The main reason that this infrastructure is not being made is that the government simply cannot raise the funds to finance them due to their lack of taxation revenue. Another reason maybe that the government has chosen to finance defence spending or if they are in time of war, in which most LCDs are. A lack of infrastructure restricts the free flow of goods and services and reduces the productivity of the labour force that further restricts the economic development of the country. In Africa infrastructure is very underdeveloped compared to the other less developed regions. They have 6 phone lines for every 1000 people compared to the average of 54 for other developing regions. Also their power supply is far less than the average of 300kw per 1000 peoples with 80kw this significantly stops their development. In Nigeria there are serious problems with infrastructure causing business uncertainty. Telephones rarely work and the electric comes in periodic vengeful surges. Nigerian firms, particularly the state-owned ones due to the lack of taxation, devote little effort into maintaining their infrastructure and it therefore ends up breaking down. Reliable firms are so hard to come by that firms barter contacts: well let you share the electricity from our generator if you can help us find spare parts for it. Firms wanting to set up in Nigeria face the problem known locally as BYOI (bring your own infrastructure) this shows how much of a problem infrastructure is in Nigeria. A lack of infrastructure could be solved in many ways such as encouraging enterprise, human resource development or improving the financial system. A lack of entrepreneurs is another barrier to economic development. Enterprise is essential in order for development to occur, as it is one of the key factors to production. In the less developed countries there tens to be a lack of entrepreneurs for several reasons. The first of these is the fact that there is a limited opportunity to make a profit, due to the lack of demand. The next reason is that the businesses not easily financed due to the low level of savings. The lack of infrastructure available also distracts these entrepreneurs. Another reason to the lack of entrepreneurs is that cultural beliefs often place little importance on monetary gain and entrepreneurs are thus given little status. The number of entrepreneurs is also reduced by the lack of education in these countries. The final reason is that it is risky for an entrepreneur due to the political and economic instability. An example of a lack of entrepreneurs is also in Nigeria as it closely relates to the lack of the infrastructure. The lack of infrastructure adds at least 25 percent onto a firms operating costs if it choses to set up in Nigeria, this is a significant deterrent for firms to set up and should be solved if the county wants to achieve economic development. A strategy that could be adopted to help this situation is encouraging enterprise. The next barrier to economic development is a lack of technology. There are several reasons why these less developed countries are not more technologically advanced. The first reason being that most new technology will involve some investment in capital that is lacking in these less developed countries. Also another problem is that the new technology will need skilled labour to operate it but skilled labour is also of shortage in a LCD. The next reason is that companies dont really want to adopt labour saving technology when they already have cheap labour and there are high unemployment rates. The final reason that there is a lack of technology is that new technology is used to facilitate the achievement of economies of scale and the small markets in LCDs reduce the incentive to mass-produce. The governments however, have managed to encourage technology into these LCDs and most currently use modern technology that compliments the labour so workers maintain their jobs. A lot of the modern technology used in these counties is generally used in the foreign owned industries where they mass-produce in order to export to advanced markets. Over population and rapid population growth is another factor that causes a barrier to development. In these less developed countries the birth rates are often five times higher than in the more developed countries. The advances of medicine have also caused a fall in the deaths, which leads to a higher population growth. The growth of these countries is generally around 2 percent and their growth is usually below this figure, which therefore worsens the situation, and the real GNP per capita often falls. In the more advanced countries they generally have population growth of around 0.5 percent and their economic growth will usually be higher than that. This is where the widening gap occurs pushing less developed countries further away from more advanced countries. This high growth of the population also has the effect of increasing the labour force, but as there is little demand for labour the unemployment rate will tend to rise. Also, most of this population is below 15 or above 65 meaning they are unable to contribute o production but still need things such as food, water, clothing and shelter. This creates a problem known as dependency burden making development even harder. Governments in these LDCs fight a tough battle with a rapid growing population and are always trying to slow this rate but they face several problems such as poor education, communication, lack of contraception and cultural attitudes. Africa is currently the fastest growing of all the developing regions with a growth rate of 3 percent over the past decade but with this high growth rate comes several associated problems. Africa has one doctor for every 20,000 people compared to an average 5000 people in developing countries and its infant mortality rate is the highest at 96 per thousand births almost double the developing countries average. Africans also have a life expectancy of 52 years where the average for developing countries is 64. As you can see that the effects of a high population are not beneficial to a developing country. This barrier to development can be solved with the population control strategy. The next barrier to development is inflation. Inflation in these countries is caused by the scare amounts of goods and services relative to the high population consequently causing demand pull inflation. The domestic supply is unable to match the domestic demand. The inflation rates in many of these countries gets above 200 percent compared to that of around 5 percent in most advanced countries. This high inflation has many unwanted effects such as decreased living standards and a reduction in real income, it also tends to redistribute the income from the poor to the wealthy therefore increasing the income inequality that already exists. A high inflation rate also causes the investment of non-productive assets such as antiques or gold, this money is therefore taken out of the economy reducing the funds available for investment. These high inflation rates also cause a reduction in the competitiveness of exporters and import competing firms that therefore leads to an increase in the countries current account deficit. Another effect that inflation will lead to is a falling exchange rate, which if the country has a large foreign debt will make it even harder to pay. Inflation is very high in most of the African countries and causes severe problems to their economy and development progress. Balance of payments problems is also another barrier to development of these less developed countries. The majority of LCDs have problems with their external balance as the little income they do earn is used on imports and used to pay off interest on their foreign debts. As these countries are in deficit they are continually forced to borrow from overseas to finance their payments worsening their current account deficit even more. Many of these countries are also suffering from worsening terms of trade that also decreases their export revenue and thus further worsening their balance of payments. The WTO worldwide reduction of tariffs will help to assist this but government policies need to be implemented to seriously boost export revenue and turn the consumers away from imports. The strategy to help the balance of payments is import replacement. The next barrier to development that LCDs face is a depletion of their natural resources. Many of these countries are highly dependent on one major export to create export revenue, create growth, employment and income and the reduction in the current account deficit. This creates problems as they may deplete natural resources without considering future production. This reduces the potential for further future development and growth. In Mauritius, they have cleared 25 percent of their forests in the last 19 years purely for export. This causes massive environmental effects and also is a serious concern, as when the resources run out the countrys economy will fail to stay afloat. This is the same in many less developed countries including many African counties and their dependency on oil. It can be helped with export development to have a wider range of exports and less dependency on one major export. Another significant barrier to economic development in these less developed countries is corruption and poor administration by the government. Corruption is a very common problem in LDCs. The problem associated with this is that aid and government revenue is not all used in promoting growth, corrupt leaders and government officials take most of it. When a government is corrupt it causes most of their aid to be withdrawn forcing them to reform their political structures. This withdrawal of overseas assistance causes depletions in general living standards of the country. Another problem with these governments is that they know little or nothing about economics. These leads to several problems including poor administration and efficiency these lead to a poor ability to promote development. An example of this is in Nigeria where it has been estimated that in the last twenty years over two billion dollars of oil revenue from the country has been embezzled. This is mainly due to their last dictator who ordered the Nigerian Central Bank to deposit 15 million dollars a day into his own Swiss bank account. This works out to twenty percent of GDP and when you take into consideration that their NFD is over 40 percent of GDP, the country is not left with much money. A strategy that has been put into place for this specific barrier is the refusal to lend money to Nigeria from IMF. Natural disasters are another barrier to development in less developed countries. The effects of natural disasters such as floods or droughts have a much greater impact on less developed countries compared to that of advanced countries. Most LCDs are prone to these natural disasters, which is a significant factor to their underdevelopment. In India they have times of severe droughts and flooding where 80 million people were affected. This has severely decreased their agriculture production and is consequently creating a barrier to their development. There is not much that can be done about natural disasters but do adjust to them and to adopt new ways to cope with them. Another significant factor preventing the development of less developed countries is war and civil unrest. Many LCDs are in constant war and civil unrest, this causes several problems with development. The first of these problems is that entrepreneurs are discouraged by the countries instability also important infrastructure is destroyed and governments spend their little taxation revenue on maintaining order or producing weapons. Economies in war torn countries are unlikely to be operating at full capacity making it hard for development to occur. In Rwanda civil wars in the nineties have claimed the lives of almost 1,000,000 Rwandans. Most of the aid to the country was invested in weaponry and therefore not used in promoting economic development, as it should have been. This is how civil wars can create barriers to development. The only solution to this is to end the wars and focus the spending into promoting economic development. The final barrier to development is a lack of press freedom. Press freedom involves the exchange of ideas, criticism of government and increased awareness of world events and developments. This is something that most LCDs do not have and therefore their economic development is limited. In Mexico the government allowed Televisa to have a monopoly in the television market if they didnt play any anti-government shows and supported the government. In the eighties journalists were killed by the police in Mexico City if they published any anti-government articles. This is serious problem in these less developed countries and is usually the result of government corruption. The first strategy to promote economic development in these less developed countries is export development. This strategy involves assisting those producers who export to overseas markets. An increase in export development will earn foreign exchange and create unemployment and income and also help to solve problems with the balance of payments. The next strategy to promoting development is import replacement. Import replacement involves the shifting of demand away from imports and towards the domestically produced products. This can be done in several ways including the induction of tariffs on imports making them more expensive relative to the domestic product. This also encourages foreign investment as the foreign firms wish to have the same protection. Assisting domestic producers financially is another way of promoting this economic development, by subsidising and offering tax incentives to local producers it will increase their competitiveness with imports by the lower costs of production. However, replacing imports is only a short-term solution and therefore policies promoting long-term development must be applied. Human resource development is the next strategy to development. This development involves improving the size of the labour force and also the skills of the labour force. The labour force can be increased through improved health care and skills can be attained through things such as training and education. In Nigeria the World Bank is currently funding an $80 million project into their education as well as building a better and more consistent water supply. Also In Malaysia education investment has been amongst their highest priorities for decades, they have spent $731 million on improving their education levels to the level they are currently at Another way to promote economic development in these less developed countries is through encouraging enterprise. In most LDCs there is a lack of entrepreneurs, in order to increase the quantity there are several solutions such as improving management and leadership training and tax incentives, subsidies and free loans. Cuba has introduced a group of people called the cuentapropistas, 170,000 entrepreneurs marking the arrival of a new business sector in the islands socialist economy. They account for 8% of the labour force and manage to put food on the table for one in ten Cubans. These new small businesses have been a result of reduced subsidies to state enterprises, increased foreign investment, and introduction of incentives in the agricultural sector and the legalisation of dealings in foreign currency. This has already had positive signs on the Cuban economy with growth in 1998 at 8 percent some 31percent higher than two years previous. Population control is another strategy to economic development. Rapid population growth is unwanted as it creates problems such as inflation and scarcity and therefore more poverty. There are plenty of methods that can be put into place to slow population growth. Some of these methods include maximum children policy such as Chinas one child policy and free supplies of contraception. The Grameen bank is another contributor to helping population control in Bangladesh. The bank issue loans to woman and as part of the conditions to borrowing the money they must agree to have small families. This has proved to be a successful program all across the world and has helped to promote the small-scale development of many less developed countries. The next strategy to promote economic development is increasing the agricultural productivity. Agriculture is usually a major sector in the less developed countries and thus improving its productivity will significantly promote development. Improving the agriculture productivity can be done in many ways. Some of these include merging small farms to create larger more efficient ones and encouraging owner operators to increase the incentive to improve productivity there also several other ways in which these countries can improve their agricultural productivity. With 75 percent of the population living in rural areas, improving the efficiency of Indias agriculture is the key to attaining high growth and reducing poverty. Accelerating rural development and poverty reduction requires cutting spending on input subsidies; investing in rural infrastructure; providing more effective rural services, especially to the poor and socially excluded; improving management of water, forests, and other natural resources; liberalizing the rural economy, including the rural financial system. In the heart of Indias poorest region, the Bihar Plateau Development Project is increasing access to much-needed irrigation and safe drinking water by tribal communities and raising their incomes through the diversification of rural livelihoods. The project aims to reach 4.5 million people through a variety of institutional mechanisms, including water and sanitation committees, water user associations, and income generation schemes, all aiming to transfer skills and enhance peoples capabilities so that the benefits may be sustained once the project ends. This is one way in which India is proving to increase its agricultural produc tivity. Another strategy to promoting economic development is by adopting intermediate technology. If a less developed country invested in new technology it may be forgiving employment possibilities, as most new technology is very labour intensive, this will consequently lead to a fall in employment. As these countries have an abundance of labour it is much easier, cost effective and better for the economy if they use intermediate technology that still requires high levels of labour. An example of this is Fred Hollows, Hollows uses local resources to create employment income and economic growth through the training of people to perform the medical tasks and also employment in the factories where the lens are created. The final strategy to promote economic development is to improve the financial system. In these economies there is a lack of savings and an insufficient financial system, this creates major barriers to development. Thus policies need to be adopted to improve this situation that promote growth and employment without generating high levels of inflation. The World Banks Executive Board approved a $506 million loan to support financial sector adjustment and reform in Colombia. The loan is part of a revised World Bank strategy for Colombia that includes intensified lending to help the country promote peace, ease the impact of the recession on the poor, and rebuild after their earthquake. It is also part of a $1.4 billion package to help bolster Colombias economy. This financial sector adjustment loan reflects the World Banks confidence in Colombias wide-ranging reform strategy, which is critical to its effort to overcome the recession, said Andres Solimano, director of the Banks program i n Colombia. The financing of many of these strategies is usually funded through institutions such as the World Bank and the International Monetary Fund institutions. The World Bank is a major force behind the development of less developed countries as it gives issues discounted loans to most of these countries. Another way that these countries can fund their development is through overseas aid. The are large amounts of money flowing out of the developed countries from governments and other aid organizations as aid into the less developed countries hoping to achieve economic development. For all of these less developed countries to achieve economic development, an effort from all developed countries with aid and advice must be contributed, but until then the world will not have any chance of abolishing poverty. References: IFC Building the private sector in Africa The Economist January 15th 2000 survey Nigeria World bank Rwanda development project The Economist May 27th Aids impact in South Africa World Bank Cubas Cuentapropistas World Bank Indias development The Grameen Bank Economic Development in Bangladesh The Economist May 27th Growth is good The Economist Feb 22nd Televista World Bank press release, 11th June 1998

Role of Calculators in Schools :: essays research papers

For adults, math is used in many ways, from configuring sales tax and tips to figuring gas mileage and averages; but for children it sometimes seems as if the only time for math is for homework and tests. The initial purpose for schools in this department is for the students to see and understand the practical uses of it, however it is controversial that the use of teaching with calculators changes this idea. In the short essay Ditch the Calculators, the author Diane Hunsaker insinuates that the overuse of calculators in math class defeats the ultimate goal of education: expanding the mind and increasing students abilities to function as contributing members of society. As society enters the twenty-first century it seems that teaching and learning has an entirely new perspective. It seems as though the new technologies that are introduced in school, computers and calculators, are not producing the same effects that learning without them once had. As a college level student I feel th at, from my own experience, I am an advanced math student because the rules and principles were drilled into my memory and not that of a calculator at a young age.   Ã‚  Ã‚  Ã‚  Ã‚  Depending on one’s perspective, the use of calculators at the elementary school level is seen as either the solution to or cause of many of the problems affecting math education in this country. It has been known for a long time that early experience is able to shape the brain and behavior. In the stages of learning at a young age, to fully grasp a concept, a child must understand the principles how and why in order to apply any significance or relation to anything. This particularly applies to such a subject as that of math. Diane Hunsaker expresses her view as well in the following quote: â€Å"Math is as much about knowing why the rules work as knowing what the rules are† (668). It seems that Hunsaker is saying that before rules can be applied, there must be a foundation for them. This concept for math, and in general, trains the mind by exercising thinking skills. It is apparent that she agrees by examining her direct statement, â€Å"Math train s the mind.† By this she also goes on to say, that by the ability to exercise these particular thinking skills that students are learning to think logically and rationally. I must say, that having the ability to think logically and rationionally in controlled situations has allowed me to progress outside the classroom.

International Management

The purpose of this report Is to present 320 Below Pet Ltd a business proposal to venture Into Bangkok, Thailand. A series of relevant questions pertaining to the Ice- cream parlous business and its future expansion into foreign markets are proposed here to identify business opportunities and risks. The F&B industry in Singapore and the company's structure has been studied in depth to gain a better understanding of the industry. 320 Below is a Singapore based company that sells fresh ice cream, sorbet and frozen yogurt.The enterprise's legal structure, its history, mission, vision, alls, objectives and the ownership structure are further analyzed. The products and services offerings of 320 Below are highlighted and supported with the customer profile and demand analysis by the usage of Porter's Five Forces analysis. Moving forward, the environmental factors on the host country business climate are carefully examined. Based on the findings, the unique usage of liquid nitrogen in makin g the Ice cream is favored at large.Strengths, weakness, opportunities and threats of 320 Below will be evaluated In depth by using the SOOT analysis. A comprehensive business strategy Is finalized and proposed comprising of mode of entry and identifying the Hypotheses national cultural dimensions as it ensures that the different strategies will be carefully studied. Vital components of the fps strategies, which constitutes of pricing strategy, distribution and logistics, promotion and advertising and production and service strategies are also discussed.This will be followed with financial reports and the planning of cost analysis, the projected profit and loss statement expected to derive. The management considerations Including personnel, business advisers and contingency plans to be undertaken have been determined. Finally, recommendation will be presented to 320 Below based on the chances of success rate, which will influence its decision making to venture into foreign markets l ike Bangkok. 2. Introduction Being the first mover entrant, 320 Below Private Limited (Pet Ltd) first launched the unprecedented concept of freezing ice-cream using liquid nitrogen In Singapore.This unique Innovation has speed up the Ice-cream making process, thus enabling 320 Below to experiment with a wide variety of ice-cream flavors in the shortest time compared to traditional ice-cream making at large. The founder and Managing Director of 320 Below, Miss Lillian Nag is currently heading its business operations and business strategy for the gourmet ice-cream parlous. With the support of Miss Nag, our team kept in touch with her through numerous email correspondence to collect valuable information about 320 Below.This has provided our team with vital and useful findings which has facilitated us In preparing this business proposal. These justifications has indeed given us many insights in the ice-cream parlous business and helped us to draft out the necessary marketing tools that has helped to advertise the company. 3. Industry Business Description restaurants, fast food outlets, food caterers and others segment. In the â€Å"Others† segment, it generally refers to the different types of F establishments ranging from cafes, bars, food courts, pubs to coffee house.In 2012, Singapore F industry has substantially increased and generated approximately SAG 1 1. 98 billions in revenues, which is equivalent to 3. 5% of the country gross domestic product (GAP). According to Singapore Department of Statistics (2013), the year of 2012 has witnessed an increase of 3. 2% of new F establishment opening in Singapore. The total number of F establishment has significantly increase from 6,464 to 6,668 and is a good sign that the industry is expanding. With a population of over 5. Million, Singapore is ranked one of the highest food consumption country in Southeast Asia. In Singapore, eating is considered a national pastime, where people are willing to queue up for hal f an hour to over an hour for their favorite food. The majority of Singapore population's love for good food and their willingness to food hunt around the island display their passion and attitude towards eating. Within the social circles, it is viewed as an status leveler or status builder if you can recommend a particular place that serves great food to your friends or families.Being able to do immediately brings up your personal reputation (Wang 2006). The increasing affluent middle class and the rise in their disposable income has also fuelled the growth of the F&B industry. This group of affluent Singapore who are well-traveled are often attracted by what they see and experience during their holiday trips. Therefore, when these F&B establishments opened in Singapore, they would gladly patronize them. This has definitely spurred the demands of overseas food and produce (Rehearing's 2013).In addition, growing tourism activities in Singapore from overseas visitors have also suppor ted the growth of these F establishments. The future of the F industry in Singapore looks promising and is projected to growth in healthy levels due to its per capita consumption growth. 4. Company Description 4. 1 Type of Business Founded in October 2012, 320 Below Pet Ltd is a Singapore-based ice cream parlor that specializes in making fresh premium ice-cream, sorbet and frozen yoghurt purely from using natural ingredients. The company falls into the category of lifestyle cafes in Singapore F industry. 20 Below prides itself in delivering a unique ice- cream eating experience for customers to mingle and hang out with their friends and families. 320 Below is the early pioneer in Singapore to launch the concept of freezing ice cream by using liquid nitrogen. This unique and innovative ice-cream making process has revolutionized how ice cream is traditionally prepared and consumed. This interesting concept has also introduced an unique cafe experience, where customers can walk-in to choose from a wide variety of specially created ice- ream flavors that are freshly churned out on the spot from the mixing bowl. 20 Below Pet Ltd started its ice cream parlor business as a Limited Liability company (LLC), which is commonly known as Private Limited company. The company is registered under Singapore laws and tax regulations. Under the legal structure of a LLC, 320 Below intends to separate its legal entity from their owners and shareholders. By doing so, their business obligations only strictly remain within the legal entity itself and shareholders are excluded from any legal liability in their personal capacity. 20 Below also enjoy various legal and tax benefits as a LLC.For example, 320 Below is exempted from paying taxes during the first three years of incorporation for the first SAG $100,000 profits that they make every year. The corporate tax rate in Singapore is very attractive, which stood at below 9% for profits up to SAG $300,000 and capped at 17% for profits exceeding SAG $300,000. In addition, Singapore single-tier tax policy implemented across all corporation means that 320 Below will only be taxed once at corporate level. In the event of any dividends payout to their shareholders, they will not be tax again. 0 Below also benefited from the ease of raising capital for new venture or business expansion in the future. As a LLC, 320 Below will find it easier to get business financing from financial institutes, such as banks, and also raising capital through adding equity partners or investors. 4. 3 320 Below History, Mission, Goals & Objectives The brand name â€Å"320 Below' came about when the founder Allan Nag discovered that liquid nitrogen actually boils at minus 320 degree Fahrenheit (OF) and she decided to name after it. Lillian Nag, the founder and managing director of 320 Below has a passion and loves creating quality ice-cream.She believes in making ice cream that are low in sugar and do not contain artificial emulsifier, sta bilizer and preservative. During the early beginnings, Miss Nag experimented in creating numerous unique tasty ice-cream flavors from her home. Over a period of time, she had created and perfected numerous ice-cream recipes that have received good reviews from friends and family members. The idea of freezing ice-cream came about one day when she was doing online researches about ice cream making and found out about using liquid nitrogen to produces fresh creamy ice-cream, without paving icy crystals that can affects the taste pleasure.After mastering the ice-cream making process, Miss Nag decided to venture in the ice cream parlor business. 320 Bellows vision is to become the first-mover in new creation and innovation to ensure their products are always fresh, smooth, tasty and clean. Their mission is to ensure that their ice cream, sorbet and frozen yogurt are of the highest quality, smooth and tasty. 320 Below also endeavor to deliver exceptional customer service to their customer s in a clean, fun and relaxing environment to hang out. 4. Ownership Structure 20 Below currently have two outlets in Singapore, which is the Mackenzie Road main shop located near the city area and the Tympanis One branch, a neighborhood area in the eastern part of Singapore. The ownership structure of 320 Below consists of 3 Below employs a manager who takes charge of the daily operations in the Tympanis One branch and Miss Nag is in charge of the Mackenzie Road main shop. The manager at Tympanis One reports directly to Miss Nag pertaining any operations issues. At any time, each outlet hire at least two temporary staffs to service customers at the ice cream parlous.Miss Nag is also in charge of the marketing and production aspects of 320 Below. Her manager handles the financial accounting and human resources for both the outlets. 5. Product/ Service Factors 5. 1 Product/ Service Analysis 320 Below is the unprecedented ice cream shop that uses liquid nitrogen for their ice cream ma king process. As such, they have an advantage of offering new and interesting products to their customers in the F&B industry. They are not Just ice cream sellers but they also offer a wide range of products like frozen yoghurt and sorbets that are freshly made on the spot after customers have placed their orders.This kind of service are very rare in the Singapore market as traditionally ice cream are made in advanced and stored for later consumption in ice cream parlors or they can be conveniently bought in all supermarkets or convenience stores. 320 Bellows flagship main store at Mackenzie Road offers a unique experience of enjoying ice cream, which not other places in Singapore offers. The location of their ice cream parlor are conveniently located near city area and offer ample parking space for individuals or families who wish to patronize them. Next their shop is nicely decorated with a colorful theme that attracts passer by and want to come in.Students and teenagers are also attracted to 320 Below shop because they enjoy hanging out with their friends due to its cozy and comfortable environment it gives to their customers. 5. 2 Customer Profile/ Demand Analysis Thailand is a country with a hot climate for most parts of the year. It is common for people to seek out cooling food items to manage the heat and ice cream happens to be one of the highly sought after food items consumed. In Bangkok, the weather records a hotter temperature being an urban area with less greenery to cool the surroundings compared to other parts of Thailand.Therefore, the demand tends to be higher compared to other parts of Thailand. Other ice cream brands have been successful in Bangkok with constant demands from ice cream lovers. Thailand is ranked at 13th place, with 1. 5 litter of ice cream consumption per capita each year (Ice cream consumption 2013), Just 2 places behind Singapore. The consumer market for ice cream in Bangkok consists mainly of This who are in the working cl ass of age 25 – 40 and tourists who visit the kingdom for holidays. These groups of people generally look for uniqueness in the products they purchase.Thus, he technology of using liquid nitrogen to create ice cream instantly will attract their attention and given their access to education and the internet, they will better appreciate the ice cream making process of 320 Below. As ice cream brands that able to capture the attention of potential consumers in Bangkok and attract them to patronize the ice cream parlor. 5. 3 Porter's Five Forces Analysis 5. 3. 1 Bargaining power of suppliers (High) Liquid nitrogen is not only used in the ice cream making process but also for other food processing such as bakery in the Food & Beverage (F&B) Industry.As such, appliers may choose to supply to other food processing brands, which require a larger quantity of liquid nitrogen compared to 320 Below. Similarly, suppliers of other equipment in general required by 320 Below for its ice cream outlet operations have a bigger pool of customers in the similar business to choose from to create business ties. 5. 3. 2 Bargaining power of customers (Low) Customers are unable to make vast comparisons as brands offering the same product as 320 Below is relatively new in Bangkok. Furthermore, the Bangkok market is relatively new to this ice cream making process using liquid nitrogen to churn out CE cream.The lack of knowledge of the product further weakens their bargaining power. 5. 3. 3 Threat of new entrants (Low) There are very few ice cream outlets established in Bangkok that use the liquid nitrogen technology to produce their ice cream. Moreover, the frequency of new ice cream brands opening an outlet in Bangkok is low. Given the fact that Thailand is still a developing country and poses the risks of political unrest, other ice cream brands with similar technology might be hesitant to venture into the Thai market. Therefore, the threat of new entrants is low for ice cream br ands in Bangkok. 3. 4 Threat of substitute products (High) Ice cream is a product that has constant demand in Bangkok given the hot climate and relatively strong demand from consumers. Therefore, there are numerous brands that provide the similar primary product with Just slight variations. The price range of 320 Below is relatively higher than the average ice cream pricing due to the running costs involving the technology that is used. Consumers may be unwilling to pay for a higher price for their ice cream and may favor other ice cream brands that are much cheaper but not necessarily of higher quality.Others may look for other alternatives such as local cold desserts to replace eating ice cream. Therefore, the threat of substitute products is high in Bangkok. 5. 3. 5 Competitive rivalry within the industry (Low) The idea of using liquid nitrogen in the ice cream making process is still very new in Bangkok. According to research, there is currently one ice cream brand that adopted competitor that produces ice cream in a similar process. However, due to its huge demographic and population in Bangkok there is room for competition in the market. 6. Environmental Factors 6. Host Country Business Climate 20 Below was the first to introduce liquid nitrogen ice cream. It was quite a success for them as a lot of people are curious and wanted to try how does these ice creams taste like. Soon another competitor Just Like It came along. It create a buzz in the F&B industry as it invest in their marketing and advertising campaign. In order to expand their area of revenues income, 320 Below has began doing market survey and research to consider and plan their expansion. Either they open up another outlet to compete with their competitors or they can venture oversea to open their first shop overseas.In London and Hong Kong, there are already shops that sells liquid nitrogen ice cream. Thus venturing into these two countries are not advisable. The best two options are Thail and, Bangkok or Vietnam. 6. 2 SOOT Analysts of 320 Below Strength The strength of 320 Below lies in their Research and Development team and strong support from their management. The R&D are always encourage to develop new products and to cater to the demands of the Singapore market. Being able to understand the Singapore market makes 320 Below easier to target at their range of customers.The vertical integration have given 320 Below an advantage in the arrest. Lastly, the financial status of 320 Below are healthy and they are not in debts. Weakness The operating costs for the operations in Singapore have been increasing lately. This is due to the inflation of the market in Singapore. Also they are facing manpower issues. Even though it is still manageable, but still its difficult to find young service staff to be committed and loyal to the company. Most of the services staff are students working on a temporary basis and they do not tend to stay long in the Job. Opportunities opportu nities.To open their shops in Asia countries and to introduce their underfed products to the local people there. This can create more awareness and increase their market shares. Threats With the recent riots and social unrest in Bangkok, 320 Below will have to be very careful in their planning and execution of their shop opening. The economy in Thailand has fairly been affected by the power struggle between within the government parties. A possible delay in carrying out their plan might be necessary if the situation there worsen. Second, if the pricing of their ice cream is expensive, the local This might not patronize them and avoid eating it. . Government Constraints/ Incentives The Thai government has been having political uncertainties since 2010 surrounding their former prime minister and the current one. The former Prime Minister Taking Sinatra has been over thrown in a military coup in 2010. His sister was elected as the new Prime Minister for Thailand. At the end of 2013, hi s sister Youngling Sinatra has tried to pass on a bill, which could lead to allowing Taking to return to Thailand, Bangkok. This has caused uproar of protests among the Thai population. This was enough to lead to the recent demonstrations by the citizens in centralBangkok. Shops are still open for business even though protests and demonstrations are ongoing. But somehow, their business will still be affected. This feud between the anti government and the prime minister of Thailand will be ongoing for a long period. Travelers have been warned about traveling to Thailand and to avoid these affected areas. 6. 4 Laws/ Regulations/ Administrative Practices Thailand has a long history of corruption, bribery, extortion, leak of insider information used in securing lands, business deals, etc. This has created negative media publicity for the country.Organizations who want to venture into Thailand will have to seriously consider it before shifting in funds from overseas for investments. Ther efore, It is prudent to have the government support in our expansion plans. We also need to know and abide to their local employment laws and regulations. It is almost similar to our Singapore employment regulations except for some slight differences. For example, there are no limitations on the number of days for medical leave. Companies are to set up the Employee Welfare Fund and contributions are made from both employer and employee.These funds will be used to compensate employees who have resigned, laid off or suffer serious injuries during their service with the company. 7. Business Strategies organizational structure in order for organizations to be successful. Bangkok regulation on the food and beverage industry welcomes foreign investment. The threat in competition for the food and beverage sector is overwhelming and could result in high operation cost. If it franchises out its chain in Bangkok or Joint venture with a local, the organization may experience a communication ba rrier as the locals mostly speak Thai and know minimum English.As a new entrant in Bangkok as a franchiser as an option, 320 Below may face potential challenges such as having difficulties in obtaining the appropriate approval and permits from the respective authorities. Unnecessary expenses might incur during the process and might lead to higher cost. Due to cultural differences and language barrier, this could also result in misunderstanding, leading to conflicts when dealing with the respective stakeholders in the sector, as they may be amateurs to the business. The proposed mode of entry for 320 Below is franchising in Bangkok, with a few considerations to be analyzed.Egger Hefted 320 Below must identify the Hypotheses national cultural dimensions as one of the key factors before proposing and venturing in Bangkok as identifying the cultural differences amongst the neighboring countries are an added advantage. In determining the Hefted nation culture, he identified five dimensio ns, which comprise of power distance, individualism, Masculinity/Femininity, uncertainty avoidance and long-term orientation. 320 Below identified the potential of individualism and long-term orientation as their top priorities in venturing into Bangkok.The company is keen to review individualism ND long-term orientation as part of their daily operations in generating growth with the support and directions from the top management. Figure 1 : Hypotheses Model Country Comparison As a comparison amongst the three countries and Singapore, Bangkok shows the highest significant similarities of what Singapore adopts. fps Strategy 7. 1 Product/ Service Positioning Every individual has a sweet tooth whether for breakfast, teatime, after a meal or anytime of the day when one desires for dessert.Every dessert craves yearn for a perfect flavor and a unique sweet course. The evolution of ice-cream originated jack then during the second century B. C. It is known that Alexander the Great enjoyed i ce and snow with a tinge of added flavors of honey and nectar back then. Tastes. Ice cream mostly appreciated by the elites remained a rare and exotic dessert in today's context. Due to technological innovations such as steam power, mechanical refrigeration, homogeneity, electric motors and new freezing concepts and equipment ice-cream production has improvised.It has been identified in the United States that the total frozen dairy annual production is more than 1. 6 billion gallons due to the ongoing advancement in technologies. The concept of 320 Below was originated from United States. The process of rapid freezing provided by liquid nitrogen allows the making of endless combinations of ice-cream, sorbets, shakes, yoghurt which provides freshest desserts and quality to every patron. The Victorian†Queen of ice cream,† Agnes Marshall was the first to use the liquid nitrogen concept in the making of ice-cream over 100 years ago.The Intro facts on the usage of liquid nitr ogen has gained competitive advantage at large as patrons get to witness their frozen dessert being made from scratch and this creates a unique experience for them. Liquid nitrogen utilizes smaller ice crystals than a conventional freezing process and is 320 degrees below zero which creates a creamier and smoother dessert. At 320 Below, guests are given the opportunity to create inventive flavor combinations by recommending their suggested flavors to the experimental team. 20 Below must be able to identify the needs of the consumers presently and in the future in order to develop the right product for its consumers. The targeted consumers for 320 Below are dessert lovers across all ethnic and demographic groups. By targeting the right audience and understanding the demands of its nonusers, 320 Below will be able to achieve competitive advantage amongst its competitors. 7. 2 Pricing Strategy 320 Below had accomplished its vertical integration in achieving a price competitive advantag e through providing a unique concept and flavor with a wide range of products.Generally, existing customers tend to be less sensitive about pricing as compared to new customers. In order to achieve optimal profits and being able to be price competitive in the market, 320 Below may reduce its raw materials costs and the equipments usage in the making of the ice-cream. However, 320 Bellows mission s to deliver its products at its freshest and smoothest and its vision is to be the first in new creation and innovation in ensuring its products are fresh, smooth, tasty and clean at all times thus they will not compromise its cost for optimal profits.Its products have been priced with its overheads being taken into considerations. 320 Below has been consistent in providing excellent service and its efficiency has earned them positive testimonials, acknowledgements and referrals. The pricing of its products are worth the money as its high service and quality have managed to match up consume rs expectations. The price range for its products with various flavors ranges from $5-$10. And the they been ranked number 15 out of 6,938 restaurants in Singapore by Trapdoors and 30% of its customers are tourists who have been referred to from Trapdoors. . 3 Distribution and Logistics Bangkok, an emerging city, with a population of more than 14 million and Thailand the world as estimated in 2013. Tourism Authority of Thailand (TAT) predicts a decline of five percent of tourists visiting Bangkok if the protests continue in the first quarter of 2014 and this will affect the hotel occupancy rate in Bangkok too, which is expected to fall by 30 to 40 percent. The political unrest has been predicted to affect the tourism in Thailand which may be damaging for all enterprises too.Some popular tourist attractions and areas have been affected as tourists have difficulties accessing such places. Such affected areas include international hotels like Hyatt, Four Seasons and InterContinental an d even tourist attractions such as Ask, Silos and the Orthographic intersection. 320 Below must outline its strategies before entering the market in Bangkok as there may be chief players existing there. As 320 Below possess a unique concept in South East Sean region, it may plan its initial early stages of exploring its potential in Bangkok.However, due to the political instability, it should delay its intention of entering its market there until the situation diffuses. It has its advantage of being a first mover entrant in Bangkok as the liquid nitrogen ice-cream is not available there. It will not be feasible for the enterprise to enter through franchising mode of entry if the local players are too powerful and strong. 7. 4 Promotion and Advertising 7. 4. 1 Modes Of Advertising 20 Below is new in the market and they have to thrive to gain more exposure for it's branding and showcase their products through different modes of advertising.Its point of purchase advertising is through its product pictures as consumers find the pictures too tempting and eager to try it. They must be more active in marketing its products although the advertising team have been doing a wonderful Job in order to reach out to a bigger pool of consumers and target the right demographic group by utilizing the suggested advertisements in faceable. This will create brand awareness o consumers with interest in desserts who will be able to receive advertisements on their news feed faceable page based on their respective interests.This mode of advertisement through faceable will go viral faster as it will be able to target the right audience as new consumers and even reach a regional or national audience. However, such types of media is not cost effective for smaller enterprises although one can reach a colossal group of consumers. Besides having a faceable account and participated in trade fairs , it may seek help from its consumers to spread the brand around through word of mouth. Word of mouth is the best and fastest mode of advertisement.By providing an excellent service and experience to its consumers, the brand will speak for itself. By offering good products, customers will share with their families and friends on the ice cream and many of 320 Below customers are referrals. The organization is also ranked Top 15 in Trapdoors which constitutes about 30% of their customer base whom are tourists. By winning its customers hearts, they will keep coming back and start introducing to their friends and share 320 Below faceable page on their faceable. International Management The purpose of this report Is to present 320 Below Pet Ltd a business proposal to venture Into Bangkok, Thailand. A series of relevant questions pertaining to the Ice- cream parlous business and its future expansion into foreign markets are proposed here to identify business opportunities and risks. The F&B industry in Singapore and the company's structure has been studied in depth to gain a better understanding of the industry. 320 Below is a Singapore based company that sells fresh ice cream, sorbet and frozen yogurt.The enterprise's legal structure, its history, mission, vision, alls, objectives and the ownership structure are further analyzed. The products and services offerings of 320 Below are highlighted and supported with the customer profile and demand analysis by the usage of Porter's Five Forces analysis. Moving forward, the environmental factors on the host country business climate are carefully examined. Based on the findings, the unique usage of liquid nitrogen in makin g the Ice cream is favored at large.Strengths, weakness, opportunities and threats of 320 Below will be evaluated In depth by using the SOOT analysis. A comprehensive business strategy Is finalized and proposed comprising of mode of entry and identifying the Hypotheses national cultural dimensions as it ensures that the different strategies will be carefully studied. Vital components of the fps strategies, which constitutes of pricing strategy, distribution and logistics, promotion and advertising and production and service strategies are also discussed.This will be followed with financial reports and the planning of cost analysis, the projected profit and loss statement expected to derive. The management considerations Including personnel, business advisers and contingency plans to be undertaken have been determined. Finally, recommendation will be presented to 320 Below based on the chances of success rate, which will influence its decision making to venture into foreign markets l ike Bangkok. 2. Introduction Being the first mover entrant, 320 Below Private Limited (Pet Ltd) first launched the unprecedented concept of freezing ice-cream using liquid nitrogen In Singapore.This unique Innovation has speed up the Ice-cream making process, thus enabling 320 Below to experiment with a wide variety of ice-cream flavors in the shortest time compared to traditional ice-cream making at large. The founder and Managing Director of 320 Below, Miss Lillian Nag is currently heading its business operations and business strategy for the gourmet ice-cream parlous. With the support of Miss Nag, our team kept in touch with her through numerous email correspondence to collect valuable information about 320 Below.This has provided our team with vital and useful findings which has facilitated us In preparing this business proposal. These justifications has indeed given us many insights in the ice-cream parlous business and helped us to draft out the necessary marketing tools that has helped to advertise the company. 3. Industry Business Description restaurants, fast food outlets, food caterers and others segment. In the â€Å"Others† segment, it generally refers to the different types of F establishments ranging from cafes, bars, food courts, pubs to coffee house.In 2012, Singapore F industry has substantially increased and generated approximately SAG 1 1. 98 billions in revenues, which is equivalent to 3. 5% of the country gross domestic product (GAP). According to Singapore Department of Statistics (2013), the year of 2012 has witnessed an increase of 3. 2% of new F establishment opening in Singapore. The total number of F establishment has significantly increase from 6,464 to 6,668 and is a good sign that the industry is expanding. With a population of over 5. Million, Singapore is ranked one of the highest food consumption country in Southeast Asia. In Singapore, eating is considered a national pastime, where people are willing to queue up for hal f an hour to over an hour for their favorite food. The majority of Singapore population's love for good food and their willingness to food hunt around the island display their passion and attitude towards eating. Within the social circles, it is viewed as an status leveler or status builder if you can recommend a particular place that serves great food to your friends or families.Being able to do immediately brings up your personal reputation (Wang 2006). The increasing affluent middle class and the rise in their disposable income has also fuelled the growth of the F&B industry. This group of affluent Singapore who are well-traveled are often attracted by what they see and experience during their holiday trips. Therefore, when these F&B establishments opened in Singapore, they would gladly patronize them. This has definitely spurred the demands of overseas food and produce (Rehearing's 2013).In addition, growing tourism activities in Singapore from overseas visitors have also suppor ted the growth of these F establishments. The future of the F industry in Singapore looks promising and is projected to growth in healthy levels due to its per capita consumption growth. 4. Company Description 4. 1 Type of Business Founded in October 2012, 320 Below Pet Ltd is a Singapore-based ice cream parlor that specializes in making fresh premium ice-cream, sorbet and frozen yoghurt purely from using natural ingredients. The company falls into the category of lifestyle cafes in Singapore F industry. 20 Below prides itself in delivering a unique ice- cream eating experience for customers to mingle and hang out with their friends and families. 320 Below is the early pioneer in Singapore to launch the concept of freezing ice cream by using liquid nitrogen. This unique and innovative ice-cream making process has revolutionized how ice cream is traditionally prepared and consumed. This interesting concept has also introduced an unique cafe experience, where customers can walk-in to choose from a wide variety of specially created ice- ream flavors that are freshly churned out on the spot from the mixing bowl. 20 Below Pet Ltd started its ice cream parlor business as a Limited Liability company (LLC), which is commonly known as Private Limited company. The company is registered under Singapore laws and tax regulations. Under the legal structure of a LLC, 320 Below intends to separate its legal entity from their owners and shareholders. By doing so, their business obligations only strictly remain within the legal entity itself and shareholders are excluded from any legal liability in their personal capacity. 20 Below also enjoy various legal and tax benefits as a LLC.For example, 320 Below is exempted from paying taxes during the first three years of incorporation for the first SAG $100,000 profits that they make every year. The corporate tax rate in Singapore is very attractive, which stood at below 9% for profits up to SAG $300,000 and capped at 17% for profits exceeding SAG $300,000. In addition, Singapore single-tier tax policy implemented across all corporation means that 320 Below will only be taxed once at corporate level. In the event of any dividends payout to their shareholders, they will not be tax again. 0 Below also benefited from the ease of raising capital for new venture or business expansion in the future. As a LLC, 320 Below will find it easier to get business financing from financial institutes, such as banks, and also raising capital through adding equity partners or investors. 4. 3 320 Below History, Mission, Goals & Objectives The brand name â€Å"320 Below' came about when the founder Allan Nag discovered that liquid nitrogen actually boils at minus 320 degree Fahrenheit (OF) and she decided to name after it. Lillian Nag, the founder and managing director of 320 Below has a passion and loves creating quality ice-cream.She believes in making ice cream that are low in sugar and do not contain artificial emulsifier, sta bilizer and preservative. During the early beginnings, Miss Nag experimented in creating numerous unique tasty ice-cream flavors from her home. Over a period of time, she had created and perfected numerous ice-cream recipes that have received good reviews from friends and family members. The idea of freezing ice-cream came about one day when she was doing online researches about ice cream making and found out about using liquid nitrogen to produces fresh creamy ice-cream, without paving icy crystals that can affects the taste pleasure.After mastering the ice-cream making process, Miss Nag decided to venture in the ice cream parlor business. 320 Bellows vision is to become the first-mover in new creation and innovation to ensure their products are always fresh, smooth, tasty and clean. Their mission is to ensure that their ice cream, sorbet and frozen yogurt are of the highest quality, smooth and tasty. 320 Below also endeavor to deliver exceptional customer service to their customer s in a clean, fun and relaxing environment to hang out. 4. Ownership Structure 20 Below currently have two outlets in Singapore, which is the Mackenzie Road main shop located near the city area and the Tympanis One branch, a neighborhood area in the eastern part of Singapore. The ownership structure of 320 Below consists of 3 Below employs a manager who takes charge of the daily operations in the Tympanis One branch and Miss Nag is in charge of the Mackenzie Road main shop. The manager at Tympanis One reports directly to Miss Nag pertaining any operations issues. At any time, each outlet hire at least two temporary staffs to service customers at the ice cream parlous.Miss Nag is also in charge of the marketing and production aspects of 320 Below. Her manager handles the financial accounting and human resources for both the outlets. 5. Product/ Service Factors 5. 1 Product/ Service Analysis 320 Below is the unprecedented ice cream shop that uses liquid nitrogen for their ice cream ma king process. As such, they have an advantage of offering new and interesting products to their customers in the F&B industry. They are not Just ice cream sellers but they also offer a wide range of products like frozen yoghurt and sorbets that are freshly made on the spot after customers have placed their orders.This kind of service are very rare in the Singapore market as traditionally ice cream are made in advanced and stored for later consumption in ice cream parlors or they can be conveniently bought in all supermarkets or convenience stores. 320 Bellows flagship main store at Mackenzie Road offers a unique experience of enjoying ice cream, which not other places in Singapore offers. The location of their ice cream parlor are conveniently located near city area and offer ample parking space for individuals or families who wish to patronize them. Next their shop is nicely decorated with a colorful theme that attracts passer by and want to come in.Students and teenagers are also attracted to 320 Below shop because they enjoy hanging out with their friends due to its cozy and comfortable environment it gives to their customers. 5. 2 Customer Profile/ Demand Analysis Thailand is a country with a hot climate for most parts of the year. It is common for people to seek out cooling food items to manage the heat and ice cream happens to be one of the highly sought after food items consumed. In Bangkok, the weather records a hotter temperature being an urban area with less greenery to cool the surroundings compared to other parts of Thailand.Therefore, the demand tends to be higher compared to other parts of Thailand. Other ice cream brands have been successful in Bangkok with constant demands from ice cream lovers. Thailand is ranked at 13th place, with 1. 5 litter of ice cream consumption per capita each year (Ice cream consumption 2013), Just 2 places behind Singapore. The consumer market for ice cream in Bangkok consists mainly of This who are in the working cl ass of age 25 – 40 and tourists who visit the kingdom for holidays. These groups of people generally look for uniqueness in the products they purchase.Thus, he technology of using liquid nitrogen to create ice cream instantly will attract their attention and given their access to education and the internet, they will better appreciate the ice cream making process of 320 Below. As ice cream brands that able to capture the attention of potential consumers in Bangkok and attract them to patronize the ice cream parlor. 5. 3 Porter's Five Forces Analysis 5. 3. 1 Bargaining power of suppliers (High) Liquid nitrogen is not only used in the ice cream making process but also for other food processing such as bakery in the Food & Beverage (F&B) Industry.As such, appliers may choose to supply to other food processing brands, which require a larger quantity of liquid nitrogen compared to 320 Below. Similarly, suppliers of other equipment in general required by 320 Below for its ice cream outlet operations have a bigger pool of customers in the similar business to choose from to create business ties. 5. 3. 2 Bargaining power of customers (Low) Customers are unable to make vast comparisons as brands offering the same product as 320 Below is relatively new in Bangkok. Furthermore, the Bangkok market is relatively new to this ice cream making process using liquid nitrogen to churn out CE cream.The lack of knowledge of the product further weakens their bargaining power. 5. 3. 3 Threat of new entrants (Low) There are very few ice cream outlets established in Bangkok that use the liquid nitrogen technology to produce their ice cream. Moreover, the frequency of new ice cream brands opening an outlet in Bangkok is low. Given the fact that Thailand is still a developing country and poses the risks of political unrest, other ice cream brands with similar technology might be hesitant to venture into the Thai market. Therefore, the threat of new entrants is low for ice cream br ands in Bangkok. 3. 4 Threat of substitute products (High) Ice cream is a product that has constant demand in Bangkok given the hot climate and relatively strong demand from consumers. Therefore, there are numerous brands that provide the similar primary product with Just slight variations. The price range of 320 Below is relatively higher than the average ice cream pricing due to the running costs involving the technology that is used. Consumers may be unwilling to pay for a higher price for their ice cream and may favor other ice cream brands that are much cheaper but not necessarily of higher quality.Others may look for other alternatives such as local cold desserts to replace eating ice cream. Therefore, the threat of substitute products is high in Bangkok. 5. 3. 5 Competitive rivalry within the industry (Low) The idea of using liquid nitrogen in the ice cream making process is still very new in Bangkok. According to research, there is currently one ice cream brand that adopted competitor that produces ice cream in a similar process. However, due to its huge demographic and population in Bangkok there is room for competition in the market. 6. Environmental Factors 6. Host Country Business Climate 20 Below was the first to introduce liquid nitrogen ice cream. It was quite a success for them as a lot of people are curious and wanted to try how does these ice creams taste like. Soon another competitor Just Like It came along. It create a buzz in the F&B industry as it invest in their marketing and advertising campaign. In order to expand their area of revenues income, 320 Below has began doing market survey and research to consider and plan their expansion. Either they open up another outlet to compete with their competitors or they can venture oversea to open their first shop overseas.In London and Hong Kong, there are already shops that sells liquid nitrogen ice cream. Thus venturing into these two countries are not advisable. The best two options are Thail and, Bangkok or Vietnam. 6. 2 SOOT Analysts of 320 Below Strength The strength of 320 Below lies in their Research and Development team and strong support from their management. The R&D are always encourage to develop new products and to cater to the demands of the Singapore market. Being able to understand the Singapore market makes 320 Below easier to target at their range of customers.The vertical integration have given 320 Below an advantage in the arrest. Lastly, the financial status of 320 Below are healthy and they are not in debts. Weakness The operating costs for the operations in Singapore have been increasing lately. This is due to the inflation of the market in Singapore. Also they are facing manpower issues. Even though it is still manageable, but still its difficult to find young service staff to be committed and loyal to the company. Most of the services staff are students working on a temporary basis and they do not tend to stay long in the Job. Opportunities opportu nities.To open their shops in Asia countries and to introduce their underfed products to the local people there. This can create more awareness and increase their market shares. Threats With the recent riots and social unrest in Bangkok, 320 Below will have to be very careful in their planning and execution of their shop opening. The economy in Thailand has fairly been affected by the power struggle between within the government parties. A possible delay in carrying out their plan might be necessary if the situation there worsen. Second, if the pricing of their ice cream is expensive, the local This might not patronize them and avoid eating it. . Government Constraints/ Incentives The Thai government has been having political uncertainties since 2010 surrounding their former prime minister and the current one. The former Prime Minister Taking Sinatra has been over thrown in a military coup in 2010. His sister was elected as the new Prime Minister for Thailand. At the end of 2013, hi s sister Youngling Sinatra has tried to pass on a bill, which could lead to allowing Taking to return to Thailand, Bangkok. This has caused uproar of protests among the Thai population. This was enough to lead to the recent demonstrations by the citizens in centralBangkok. Shops are still open for business even though protests and demonstrations are ongoing. But somehow, their business will still be affected. This feud between the anti government and the prime minister of Thailand will be ongoing for a long period. Travelers have been warned about traveling to Thailand and to avoid these affected areas. 6. 4 Laws/ Regulations/ Administrative Practices Thailand has a long history of corruption, bribery, extortion, leak of insider information used in securing lands, business deals, etc. This has created negative media publicity for the country.Organizations who want to venture into Thailand will have to seriously consider it before shifting in funds from overseas for investments. Ther efore, It is prudent to have the government support in our expansion plans. We also need to know and abide to their local employment laws and regulations. It is almost similar to our Singapore employment regulations except for some slight differences. For example, there are no limitations on the number of days for medical leave. Companies are to set up the Employee Welfare Fund and contributions are made from both employer and employee.These funds will be used to compensate employees who have resigned, laid off or suffer serious injuries during their service with the company. 7. Business Strategies organizational structure in order for organizations to be successful. Bangkok regulation on the food and beverage industry welcomes foreign investment. The threat in competition for the food and beverage sector is overwhelming and could result in high operation cost. If it franchises out its chain in Bangkok or Joint venture with a local, the organization may experience a communication ba rrier as the locals mostly speak Thai and know minimum English.As a new entrant in Bangkok as a franchiser as an option, 320 Below may face potential challenges such as having difficulties in obtaining the appropriate approval and permits from the respective authorities. Unnecessary expenses might incur during the process and might lead to higher cost. Due to cultural differences and language barrier, this could also result in misunderstanding, leading to conflicts when dealing with the respective stakeholders in the sector, as they may be amateurs to the business. The proposed mode of entry for 320 Below is franchising in Bangkok, with a few considerations to be analyzed.Egger Hefted 320 Below must identify the Hypotheses national cultural dimensions as one of the key factors before proposing and venturing in Bangkok as identifying the cultural differences amongst the neighboring countries are an added advantage. In determining the Hefted nation culture, he identified five dimensio ns, which comprise of power distance, individualism, Masculinity/Femininity, uncertainty avoidance and long-term orientation. 320 Below identified the potential of individualism and long-term orientation as their top priorities in venturing into Bangkok.The company is keen to review individualism ND long-term orientation as part of their daily operations in generating growth with the support and directions from the top management. Figure 1 : Hypotheses Model Country Comparison As a comparison amongst the three countries and Singapore, Bangkok shows the highest significant similarities of what Singapore adopts. fps Strategy 7. 1 Product/ Service Positioning Every individual has a sweet tooth whether for breakfast, teatime, after a meal or anytime of the day when one desires for dessert.Every dessert craves yearn for a perfect flavor and a unique sweet course. The evolution of ice-cream originated jack then during the second century B. C. It is known that Alexander the Great enjoyed i ce and snow with a tinge of added flavors of honey and nectar back then. Tastes. Ice cream mostly appreciated by the elites remained a rare and exotic dessert in today's context. Due to technological innovations such as steam power, mechanical refrigeration, homogeneity, electric motors and new freezing concepts and equipment ice-cream production has improvised.It has been identified in the United States that the total frozen dairy annual production is more than 1. 6 billion gallons due to the ongoing advancement in technologies. The concept of 320 Below was originated from United States. The process of rapid freezing provided by liquid nitrogen allows the making of endless combinations of ice-cream, sorbets, shakes, yoghurt which provides freshest desserts and quality to every patron. The Victorian†Queen of ice cream,† Agnes Marshall was the first to use the liquid nitrogen concept in the making of ice-cream over 100 years ago.The Intro facts on the usage of liquid nitr ogen has gained competitive advantage at large as patrons get to witness their frozen dessert being made from scratch and this creates a unique experience for them. Liquid nitrogen utilizes smaller ice crystals than a conventional freezing process and is 320 degrees below zero which creates a creamier and smoother dessert. At 320 Below, guests are given the opportunity to create inventive flavor combinations by recommending their suggested flavors to the experimental team. 20 Below must be able to identify the needs of the consumers presently and in the future in order to develop the right product for its consumers. The targeted consumers for 320 Below are dessert lovers across all ethnic and demographic groups. By targeting the right audience and understanding the demands of its nonusers, 320 Below will be able to achieve competitive advantage amongst its competitors. 7. 2 Pricing Strategy 320 Below had accomplished its vertical integration in achieving a price competitive advantag e through providing a unique concept and flavor with a wide range of products.Generally, existing customers tend to be less sensitive about pricing as compared to new customers. In order to achieve optimal profits and being able to be price competitive in the market, 320 Below may reduce its raw materials costs and the equipments usage in the making of the ice-cream. However, 320 Bellows mission s to deliver its products at its freshest and smoothest and its vision is to be the first in new creation and innovation in ensuring its products are fresh, smooth, tasty and clean at all times thus they will not compromise its cost for optimal profits.Its products have been priced with its overheads being taken into considerations. 320 Below has been consistent in providing excellent service and its efficiency has earned them positive testimonials, acknowledgements and referrals. The pricing of its products are worth the money as its high service and quality have managed to match up consume rs expectations. The price range for its products with various flavors ranges from $5-$10. And the they been ranked number 15 out of 6,938 restaurants in Singapore by Trapdoors and 30% of its customers are tourists who have been referred to from Trapdoors. . 3 Distribution and Logistics Bangkok, an emerging city, with a population of more than 14 million and Thailand the world as estimated in 2013. Tourism Authority of Thailand (TAT) predicts a decline of five percent of tourists visiting Bangkok if the protests continue in the first quarter of 2014 and this will affect the hotel occupancy rate in Bangkok too, which is expected to fall by 30 to 40 percent. The political unrest has been predicted to affect the tourism in Thailand which may be damaging for all enterprises too.Some popular tourist attractions and areas have been affected as tourists have difficulties accessing such places. Such affected areas include international hotels like Hyatt, Four Seasons and InterContinental an d even tourist attractions such as Ask, Silos and the Orthographic intersection. 320 Below must outline its strategies before entering the market in Bangkok as there may be chief players existing there. As 320 Below possess a unique concept in South East Sean region, it may plan its initial early stages of exploring its potential in Bangkok.However, due to the political instability, it should delay its intention of entering its market there until the situation diffuses. It has its advantage of being a first mover entrant in Bangkok as the liquid nitrogen ice-cream is not available there. It will not be feasible for the enterprise to enter through franchising mode of entry if the local players are too powerful and strong. 7. 4 Promotion and Advertising 7. 4. 1 Modes Of Advertising 20 Below is new in the market and they have to thrive to gain more exposure for it's branding and showcase their products through different modes of advertising.Its point of purchase advertising is through its product pictures as consumers find the pictures too tempting and eager to try it. They must be more active in marketing its products although the advertising team have been doing a wonderful Job in order to reach out to a bigger pool of consumers and target the right demographic group by utilizing the suggested advertisements in faceable. This will create brand awareness o consumers with interest in desserts who will be able to receive advertisements on their news feed faceable page based on their respective interests.This mode of advertisement through faceable will go viral faster as it will be able to target the right audience as new consumers and even reach a regional or national audience. However, such types of media is not cost effective for smaller enterprises although one can reach a colossal group of consumers. Besides having a faceable account and participated in trade fairs , it may seek help from its consumers to spread the brand around through word of mouth. Word of mouth is the best and fastest mode of advertisement.By providing an excellent service and experience to its consumers, the brand will speak for itself. By offering good products, customers will share with their families and friends on the ice cream and many of 320 Below customers are referrals. The organization is also ranked Top 15 in Trapdoors which constitutes about 30% of their customer base whom are tourists. By winning its customers hearts, they will keep coming back and start introducing to their friends and share 320 Below faceable page on their faceable.

Critical Thinking of Globalization - 1030 Words

1)Introduction- A thousand year old phenomenon Globalization, initiated by the Silk Road which linked Europe and China has widely broadened in today’s scenario. It is defined as a progression of unification of diverse countries across the globe enhanced by foreign trade, international investment, flow of technology and labour. Globalization has diversely affected the political, social, cultural condition of various countries in negative and positive manner. (1) (10) 2)Argument Against Globalization 2.1) Global Economic Recession- International Trade makes all countries dependent for trade on each other which has currently led to financial crises. For Example, Increase in oil prices and collapse of U.S Market has decreased the global†¦show more content†¦Globalization decreases the likelihood of war as nations are interdependent especially among super powers. It helps poor nations as developed nations give them financial aid to overcome issues of poverty. For example, USA provided financial aid to African nations. Also the message of democracy is spread to several nations with the power of international media. In a nutshell, globalization has become an important part for people, companies and national governments as it is a ongoing process and cannot be ignored. The disadvantages cannot be completely faded away but efforts by international government, associations such as WTO can minimize its negative impact on society. Globalization is not a bad process and it can work efficiently if domestic industries of developing country are given safeguard against ill impact for example, before entering into foreign boundary MNC’s should indulge into subsidiary alliance or Joint ventures with domestic players. Word Count – 723 Referencing 1) http://www.economicgeography.org/index.php?option=com_contentamp;view=articleamp;id=94:history-of-globalizationamp;catid=98:infamp;Itemid=85 2) http://www.nytimes.com/2008/12/02/business/02markets.html 3) â€Å"World Regions inShow MoreRelatedGen 499 General Education Capstone Entire Course980 Words   |  4 PagesWeek 3 DQ 1 Social Capital GEN 499 Week 3 DQ 2 Federal Policy GEN 499 Week 3 Assignment Annotated Bibliography GEN 499 Week 4 DQ 1 Call to Action GEN 499 Week 4 DQ 2 Final Research Paper Progress GEN 499 Week 4 Critical Thinking Quiz GEN 499 Week 5 DQ 1 Technology and Globalization GEN 499 Week 5 DQ 2 Reflecting on General Education GEN 499 Week 5 Assignment Final Research Paper GEN 499 General Education Capstone Entire Course Follow Link Below To Get Tutorial https://homeworklance.coRead MoreHigher Education Is The Foundation For Critical Thinking.Critical1154 Words   |  5 Pagesthe foundation for critical thinking. 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This company has achieved tremendous success and profitability throughout its operations to an extent that it is regarded as the epitome of globalization. The ability of McDonalds to maintain its profitability is influenced by its excellent customer service and growth through various strategies including franchising and acquisitions. The other significant aspect in McDonalds’ operations is the