The Canadian maple company’s mission is to provide health and wellness products to its consumers across the globe. The pure maple syrup the firm is offering fits this niche. Therefore, based on the economic, cultural, political, and legal analysis, the product is feasible in the UK market. For instance, the UK people have a value culture where they purchase sustainable products. Food culture is adopting international cuisine ingredients such as Maple syrup because of its natural and organic elements. Also, the product is the best alternative to sugar and has low calories. Using the direct investment mode, the company can succeed n setting up a business in the UK market. The company requires finances to commission the expansion project and thus may require long-term loans to make the business successful. The company will be operated by at least one director and will be limited.
The course has helped me understand the importance of business expansion in foreign markets. For instance, I have understood how the business should run its operations when it comes to venturing into a foreign country. The entry mode of the business is critical and determines the success and the failure of the business. Also, one must project the sales and expenses one will likely incur in the new business venture. One can weigh the pros and cons of starting a business in a foreign land. Also, there are factors that one should consider and research before setting up the business, such as the cultural—political, legal, and economic factors before setting up the business in a foreign country.
The mission of offering maple syrup is to promote a healthier life to people worldwide, specifically those living in Uk, and London. Also, the essence is to promote the environment since the product preserves the environment derived from the maple tree. This process does not involve destroying the environment (Issac et al., 2022). As London residents are more environmentally cautious and promote green products, they are more cautious about the products that promote the environment.
Canadian maple company offers pure organic maple syrup in Canada (Saraiva, et al. 2022). Given the benefits and the uses of pure organic maple in the UK, the company can extend its offering to the United Kingdom. Pure organic maple syrup has the following uses in the UK: syrup is a natural sweetener for foods and drinks. In that case, it is healthier than the processed sugar in most drinks and food. For example, it has antioxidants and minerals critical to human health. Also, organic maple in the UK can be used in dishes, salads, and breakfast meals. Moreover, the syrup is more sustainable since it cannot harm the environment. in summary, if the company expands its market in the UK, London city, there is a revenue growth potential for the product.
The product is a reason why the product will be a success is that there is high demand for organic and natural products in Europe and, to be precise, in London, UK. Also, people are more health and environment-conscious, and given that the pure maple product fits this trend, it will be successful in the Uk. Pure organic maple can command a premium price, given the demand in the UK for organic products. Therefore, based on these facts, the business will be a success.
The business will be set up in London city. In that case, several steps will be required to ensure the business is in place for the launch of the business. The first step will be to acquire business registration with the relevant business authority in the UK and then register the business for taxes. By so doing, the business will avoid operating illegally in a foreign country. Given that the branch will be new in a foreign country, the company will need to lease the space for setting up the office; this will be easy for the first few years; as the business expands, the management can think of purchasing their own space.
After acquiring the space, there will need to acquire office furniture such as a chair, table, computers, and other stationery for the smooth operation of the business. Also, the packaging and the supply material will be required for buying the new products. The packaging and suppliers’ material will need to be purchased on credit or cash, depending on the suppliers’ terms in the UK. Additionally, the business will need staff to market the product before it launches and set up the office in the new area.
Before the product’s sale, the company will also need to comply with the labeling, packaging, and quality controls authority to ensure that the product meets the regulations of maple syrup as outlined in the UK laws and regulations.
OPPORTUNITY ASSESSMENT PLAN
There is high demand for organic and natural products in the Uk. Thus, if the Canadian maple company can consider venturing in Uk, and London, the product will have a large consumer base and generate more revenue. The geopolitical and Brexit impacts in Uk are another consideration when setting up a business in the UK. For instance, the Brexit decision had huge implications in all sectors of the UK industries regarding logistics and financial services. Therefore, the company will have to consider the extent that the Brexit decision can impact the Maple syrup business in case the firm operates in London.
After Brexit, the UK had to revise its trade regulations and tariffs. Thus, the Canadian maple needs to understand the new rules and regulations resulting from the Brexit decision (Cuypers et al., 2020). Also, since Brexit, the government has been emphasizing non-supporting local companies in Uk. This means that foreign companies may need help operating in the UK and thus need to negotiate with the Uk government on how the new business can operate. The government is also keen on products that can safeguard the environment, and in the case of the Canadian maple business, this may be the ideal business to operate.
They are regulations in the Uk governing food quality, labeling, and packaging. Also, the intellectual properties and certification may affect the company operations in UK. the exports and import regulation after Brexit is also a critical legal factor to consider when setting up the business at the national level.
There has been an increasing campaign for companies to manufacture or process environmentally sustainable products at an international level. Thus, the company’s product must be natural and organic to avoid international condemnations. Also, there have been a trend and growth of e-commerce businesses at the international level, and thus the business may opt to adopt this business plan (Rossi & Martini, 2019). There are also emerging markets in middle east countries, and thus many businesses are expanding theory branches in such countries. However, the Uk market is already developed, and if the company expands in this market, it will still generate more income.
The sales of maple syrup in the UK
Maple syrup is not British cuisine, but it is international cuisine, and thus its markets in the UK have been in demand. In 2020 alone, the Uk imported 424 metric tons, and 399 metric tons in 2021 (Tridge n.d). Also, the UK made local maple syrup of 15000 taps. Therefore, as an international cuisine, the product is in demand in the UK (Tridge n.d).
The key competitors
Several companies, such as clerk and pure maple, process and sell maple syrup to health food stores and supermarkets across the UK. Also, amazon sells maple syrup from different brands worldwide in the UK. Key supermarkets in the Uk, such as Tesco and Sainsbury, also sell pure maple syrup.
The competitor analysis indicates that most competitors do not process the maple syrup by themselves but only make it themselves.
|sample of customer profile|
|age range (18-90 years)|
|gender (male and female|
|Geographic location (London)|
ANALYSIS OF THE BUSINESS OPPORTUNITY
Opening a business maple syrup in the Uk requires the business to analyze the culture of the UK people. To begin with, the UK people have to reach culture on food. Thus, there has been growing interest in natural and organic foods (Velardi et al., 2021). even though maple syrup has not been an ingredient in the British people’s cuisine, the growing interest in natural foods has recently made it a demanded product in the Uk international cuisines.
The UK people have a culture of health and wellness, and as such, they are constantly seeking natural products. Maple syrup fits in the categories of the products since it is a natural sweetener. Also, UK people prefer this product as an alternative to sugar since it has lower levels of calories.
The cultural values of the Uk people allow them to choose products of high value. High-quality and sustainable maple syrup will then be in high demand in the UK. In that context, if the business chooses to produce the product using sustainable means, the demand for the product will be high in the UK market.
The market size of maple syrup in the UK is small when compared with countries in North America (Velardi et al., 2021). however, there is still potential for the growth of the product market as the demand for natural and organic products in the UK continues to increase.
They have already established rivals for maple syrup in the UK. Thus for the company to have a business opportunity, it will require to differentiate its price, quality, and packaging product. By so doing, the business will have the opportunity to outshine its rival and have a competitive edge.
Starting a maple business will experience little political hurdles in the UK. However, the business must carefully plan how to comply with the UK regulation on business registrations and food and assurance quality regulations (Fraccastoro et al., 2021). Moreover, there has been uncertainty since Britain exits, and thus the company will need to monitor the new trade agreements in Uk, especially on the international stage.
Starting a maple business requires the business to comply with specific regulations. The first is registering for a business company house in the case of a limited company such as maple syrup. Second, there is also food safety regulation that the business must comply with, as well as the labeling requirement (Domurath et al., 2020). Moreover, the business will need to register for taxation and import and export regulation. However, this legal regulation is straightforward, and businesses will be able to perform these legal obligations efficiently.
OPERATION OF THE PROPOSED BUSINESS
The Canadian maple syrup company will be a limited company in the UK. The Uk rules and regulations require the company always to have at least one natural director (Rossi & Martini, 2019). In that case, the company will have one natural director in the UK. In contrast, other directors will be based in Canada but participating in the company’s strategic decisions in the UK. The company will appoint one chief executive officer responsible for running the business in the UK.
The directors’ duties are to make a strategic decision on the firm and will be remuneration based on the company’s performance. Also, the CEO’s performance will be based on the company’s financial performance. Thus, the more the company makes revenue, the more the reward the CEO will get.
Maple syrup is extracted from the maple tree, and it is primarily collected during the springtime. Once collected, it is boiled to remove water, which is how the company gets the maple syrup(Velardi et al., 2021). The maple syrup, in this case, will be categorized into grades one and two based on flavor and color. Thus, the pricing and packaging will be based on these two categories.
The Canadian maple company can set up a wholly-owned subsidiary in the UK. Thus, the company will need to register in the company house in the UK (Fraccastoro, Gabrielsson & Chetty, 2021). however, the company will need to secure the premises for the business, hire the staff and buy all the materials required for operation. The disadvantage of direct investment is the cost of starting a new beginning. However, it will be suitable; it will be controlled wholly by the company.
They have already established businesses in the Uk selling maple syrup, and the company can take this opportunity and acquire one of the companies instead of starting from the beginning. That way, the company will reduce marketing and branding costs. Also, the company will acquire the customer base of the company.
INCOME STATEMENT PROJECTIONS
CASH FLOW STATEMENT PROJECTION
PROJECTED STATEMENT OF FINANCIAL POSITION
Recommendation 1: the Canadian maple company should continue expanding to the UK. However, the company should differentiate its products based on pricing and quality because an already established company is in the UK.
Recommendation 2: the company should employ the direct investment entry strategy in the Uk market because it will help the company to hire its staff and to control the business wholly.
Recommendation 3: the company should employ at least one director and chief executive officer to run the business.
Tridge (n.d) maple syrup. https://www.tridge.com/intelligences/maple-syrup/GB
Velardi, et al. (2021). Adult learning theory principles in knowledge exchange networks among maple syrup producers and beekeepers in Maine. The Journal of Agricultural Education and Extension, 27(1), 3-20.
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Issac, et al. (2022). Integrated sustainability planning and local food systems: Examining areas of and gaps in food systems integration in community sustainability plans for municipalities across British Columbia. Sustainability, 14(11), 6724.
Saraiva, et al. (2022). Maple Syrup: Chemical Analysis and Nutritional Profile, Health Impacts, Safety and Quality Control, and Food Industry Applications. International Journal of Environmental Research and Public Health, 19(20), 13684.