Report on Scope of Starting up a New Business Venture in a Foreign Country

Report on Scope of Starting up a New Business Venture in a Foreign Country

Abstract 

This project report examines the possible profitable business ventures in foreign countries, more particularly ventures in third world. The third world typically consists of nations where scope and level of economic activity is lower compared to that of an industrially advanced nation. However, a large pool of market and availability of cheap labor force makes such countries a lucrative destination for business outsourcing. Many such nations themselves are also looking for investors from outside to push their level of economic activity & attain a sustainable level of economic growth. 

Business & Market Overview:

Bhutan is a small Himalayan country situated at the north eastern part of Indian subcontinent. Being a landlocked country situated on top of the Himalayan Mountains Bhutan faces a no of challenges in terms of supply of essentials and mostly depend on India for that matter. Amongst those issues, supply of clean drinking water is a major concern especially during the stern Himalayan winters when natural water sources start to dry up due to freezing cold (Shukla and Chauhan, 2018). For this seasonal water shortage the Royal Gov. of Bhutan is looking to set up multiple water treatment plants & packaged drinking water manufacturing units possibly in the lower belts of the country and address this ongoing issue.

Analysis of International Opportunities:

There is a sustained domestic demand for packaged drinking water in the households of this nation & apart from this; Bhutan is a major tourist attraction for its natural scenic beauty. Tourists from all over the world visit Bhutan to grasp the exotic Himalayan landscapes. There is a significant degree of scope for trade of packaged drinking water with the Indian states situated in the Himalayan belt as well.According to a report published by National Environment Commission, Thimpu, Bhutan, only about 78 % of Bhutanese population have access to safe & clean drinking water, although there is a high per capita water availability (Pelden,2018). This situation prevails in the country for the settlementsbeing situated on the slopes of the mountains whereas major rivers flow in the valley lying at the bottom combined with the acute seasonal water shortage.

Planning & Organizing International Operations: 

Bhutan is capable of setting up green, clean, environment friendly manufacturing units in the lower belts due to the abundance of raw material for this purpose (Sengupta and Sahay, 2017). The domestic companies like Bhutan agro Industries Ltd., Himalayan Dew etc are already producing 1000 ml & 500 ml packaged drinking water with basic technologies like RO and they have successfully captured a significant part of the market. They also face competition fromIndianmanufacturers as well. Despite that, there is a significant amount of shortage and this is where foreign firms can capitalize by using state of the art technology.

The required steps to set up the mineral water plant in Bhutan goes as following:
1.    Proposal
2.    Identifying possible water resources
3.    Analysis of climatic condition
4.    Analysis of legal & regulatory scenarios
5.    Land acquisition
6.    Projecting the machinery cost
7.    Capacity of  industrial standard power supply
8.    Building & construction expenses
9.    Civil, plumbing, internal electrification costs
10.    Hiring labor for plant set up
11.    Hiring labor for operating the plant
12.    Marketing of the product

Inspection of Rules & Regulations/ Selection & Managing Entry Modes: 

Bhutan is a signatory of multiple natural resource conservation laws at an International level. Therefore a thorough analysis of their regulatory framework is required before setting up any manufacturing unit. Especially the following standards directed by the National Environmental Commission should be kept in mind:
1.    In Bhutan, all form of water resource is protected. Any impairment of water resources due to pollution from industrial waste could lead to Royal Go. of Bhutan taking actions,
2.    No industrial activity should have any kind of negative impact on watersheds as watersheds play a vital role in maintaining water flow.
3.    Watershed proving drinking water and water for irrigation is particularly protected
4.    No industrial activity should have a negative impact on the natural flora and fauna of the country
5.    Quality of packaged drinking water should be that of the standards set by Bhutan Standards Bureau (BSB).

Developing & Marketing Products:

The branding and naming of the product must be catchy & appealing to the domestic consumers.  The main marketing strategy must be targeted at the natural origin of the product. The branding and naming also plays a vital role is boosting the sale of the product. Therefore special emphasis must be put on the branding part as well. Because branding can play a key role in developing an emotional connection with the consumers. At the same time brand names already available in the market must be avoided.

Launching & managing products:

The product will be launched under the brand name: “Zero Degree: Natural Spring Water”. By a thorough market analysis we can estimate the strength and number of initial production line.  

Hiring, Training & Managing Labor:

There is a wide pool of skilled and semi-skilled & unskilled labor in Bhutan. Manpower must be acquired mostly at semi-skilled labor level who will be employed in the production line. Skilled labor force is required at managerial level and business development level (Murphy and Praah, 2017).  

For quality assessment skilled technical labor is also required. 

Risk Issue: 
The risks of this industry are as follows:
1.    Chemical waste due to processing of water in the plant, so waste management standards should be on par
2.    Safety issues for workers 
3.    Security of plant

References 

Murphy, A. and Praah, M., 2017. Evolution of Entrepreneurial Education in Asia: A Review.
Sengupta, S. and Sahay, A., 2017. Social entrepreneurship research in Asia-Pacific: Perspectives and opportunities. Social Enterprise Journal.
Shukla, T. and Chauhan, G.S., 2018. Traversing the women entrepreneurship in South Asia. Journal of Enterprising Communities: People and Places in the Global Economy.
Pelden, Y., 2018. Entrepreneurship in Bhutan: A study on the entrepreneurial attitudes of the unemployed Bhutanese Graduates of 2018 (Doctoral dissertation, RIM).