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Bee Sticky Pty Ltd is an established Australian manufacturing business that produces a wide range of high quality and premium organic honey products - HSC - SSCE Business Studies - Question 25 - 2022 - Paper 1
Question 25
Bee Sticky Pty Ltd is an established Australian manufacturing business that produces a wide range of high quality and premium organic honey products. It is expanding... show full transcript
Worked Solution & Example Answer:Bee Sticky Pty Ltd is an established Australian manufacturing business that produces a wide range of high quality and premium organic honey products - HSC - SSCE Business Studies - Question 25 - 2022 - Paper 1
Step 1
describe branding and product strategies the business could use to expand into global markets
Answer
To successfully expand into global markets, Bee Sticky Pty Ltd should implement effective branding and product strategies. These could include:
Branding Strategies
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Global Branding/Standardization: Develop a strong global brand identity that emphasizes the high quality and premium nature of their organic honey products. This should include consistent packaging, logo design, and messaging that resonates across different cultures.
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Storytelling Marketing: Utilize the unique story of the honey's origin from Australian flora and the responsible practices of local beekeepers to build an emotional connection with consumers, enhancing brand loyalty.
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Local Adaptation: While maintaining core branding, tailor marketing efforts to reflect local tastes and preferences in target markets, ensuring relevance and appeal.
Product Strategies
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Product Innovation: Introduce new product lines, such as flavored honey or organic honey-infused products, to cater to diverse consumer palettes and health trends in various countries.
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Quality Assurance: Highlight certifications and quality assurance to reinforce the premium nature of the products, ensuring compliance with international food standards.
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Sustainable Practices: Promote sustainability aspects of the brand, including eco-friendly packaging and harvesting practices, to align with growing global demand for environmentally responsible products.
Step 2
recommend a channel choice that would suit this business’s expansion
Answer
For Bee Sticky Pty Ltd's expansion, a selective channel choice would be most appropriate.
Selective Distribution
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Partnerships with High-End Retailers: Collaborate with gourmet food stores, health food shops, and specialized online retailers to place the product in environments that emphasize quality and premium positioning.
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E-commerce Platforms: Utilize online sales channels which have seen significant growth, particularly in international markets. Selling on platforms like Amazon or regional equivalents can allow access to a broader audience, while also maintaining control over brand presentation.
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Direct-to-Consumer Sales: Establish a direct sales model through a dedicated website where customers can purchase products directly, fostering a relationship with consumers and allowing for better margins.
Step 3
analyse the global financial management strategies required for a successful expansion
Answer
To ensure a successful global expansion, Bee Sticky Pty Ltd must implement robust financial management strategies:
Financial Management Strategies
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Hedging Strategies: Implement hedging techniques to protect against currency fluctuations, which could impact profits from international sales. This might include forward contracts or options to stabilize pricing.
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Cost Control Measures: Monitor and manage costs closely, particularly related to production and logistics in foreign markets to ensure competitive pricing without compromising quality.
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Financial Forecasting: Conduct detailed financial forecasting to anticipate costs, revenue, and cash flow needs associated with international expansion. This should include scenario analyses for best and worst-case situations.
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Compliance and Risk Management: Be aware of and comply with international trade laws and financial regulations in foreign markets to mitigate legal risks and ensure smooth operations.