Export Business Plan Essay Example

export goal is basically anticipated by diversifying the risk of product sales from a marginalized domestic capacity to the frontiers of international/ foreign economic advantages. The mode of international business conduct will be in the delivery and sale of industrial and engine oil products that range from mining, refining and process by our company’s industrial department. However, the product output will be of two ranges; crude and refined oil. From these product lots, a provisional outlay of sub-products will be handled which would include gasoline, diesel, petrol, grease, lubricants, and other industrial oil products.

Internationally, the market for our products of offer is favorable with high demand. With my company operating from Saudi Arabia, the target countries would be in Africa. Mode of conduct would be shipment across the Indian Ocean by oil tankers. Though the target point is in the African Continent, the initial choice of the countries of delivery would be countries within the East and Central Africa. An adequate market-study and research on the demand and supply for the product has been done by our marketing department.

Generally, these countries show a high demand portfolio for the product with a relatively low state of local supply through domestic refinering companies. The gap between the high demand and the low supply is bridged by foreign imports from the Middle East with high costs of such imports which is also accompanied by much inefficiency. From the market research statistics done, the market score of oil products in these countries occupies a high place in the market score level.

The competition autonomy has been adequately interpreted with the market been perfectly competitive.

Though there is a high competition from other competitors, our mode of service will provide high competition remarks from the corporate and management structure of our operations, produce delivery and handling form our manufacturing depot in Saudi Arabia which will flow via a high and well monitored supply chain management to allow the most adequate standards of optimal costing. Through optimal and efficiency costing the level of revenue will be estimated to been the most optimal.

The logistical chambers of distributory network occupy a special place in the corporate activities of the company. A systematic supply chain and flow channel of the product from the refinery site to export market zones is well formulated. From the refinery points across the African continent, oil shipment will be done through the establishment of a freight company with the local freighting companies through corporate mergers. A marketing and distribution channel will be established for the most optimal delivery structure.

The basic goal of the foreign export would be in developing the company financial structure. The expected market prices are expected to be high from the general high oil prices in the global market. Through high market prices, the perceived profits from the exports would be high and would thus help to provide a channel for the development of the company. Introduction A broad spectrum of reasons behind this export activity has compounded the company in its decision to explore the international market.

These are the benefits within the short run, the long run and the middle level. Generally, the short run goals and benefits of this outward expansionary activity would be to wage economies of

an expanded business portfolio in the short run, the company will enjoy an expanded framework, increasing its financial outlay and capacity above instrumenting a way forward system of wealth creation. Either, the medium term benefits would be to provide an international business illusion which expands the market risk premium of operating at the domestic capacity.

Through an international market involvement, the company would be able to minimize the low market activity and benefit at the domestic market. Elsewhere, the export policy will be an instrument of achieving long-term economic benefits. These would be the results of company expansion and development which will bear both financial and fiscal activity outlook. This plan provides a detailed action about the future conception with the limits of the short term, the long-term and medium term business prospects. It is a summary of the tools and procedures for use in the implementation process.

It will be an anticipation of the organization process with which the company would employ in exploring the business advantages in the international markets. The exporting plan would help the company expand the frontiers of the activity scope within the domestic state capacity which is coupled with high competition. ( Dunninq, 1999) Since the domestic market within my home country is served by many oil refining companies, the domestic demand is low as compared to the high supply of oil products. This supply and demand disequilibrium forces the oil price to be relatively low.

However, an expansionary activity to exploring the international market with high demand and low domestic supply would help to provide an environment for a achieving high sales volumes for oil

product. Commitment Statement to the Policy The mission statement for our export activity would be a commitment to the policy of the export activity. The involvement to the exporting business is ratified by a well formulated system of understanding the benefits that would accrue to the export activity as well as the problems and inefficiencies allied to the activity.

However, both benefits and costs of the transactions are invited with the basic goal of growing our business frontiers without any fear of operational inadequacies which may hitherto cross our business activity. Generally, the company is committed to the export activity and will not be deterred by fundamental influence of international business shocks which may be due in the short run. The mode of operation will be through a formalized management process that will ensure competitive success in the market. (Kline, 2005) Corporate Details. The foundation of my company was in 2002.

Its entrance in the market was through a start up. It is involved in the refinery and processing of oil products ranging from crude and refined oil products such as diesel, petrol, grease, above others. The history of the company is credited to have an expansionary achievement within my country since its foundation. Though started as a small oil refining and processing company with only the refinery site as the main outlet, the current status in its activity shows a high expansion where it has been able to develop twelve delivery terminals within the state.

Market expansion has been as a result of the success in the corporate management process. The choice of export products is diverse which ranges from both

crude and refined oil products. The diversity in the choice of the international sales products is to provide a support for a broadened customer’s choice service. This is in the understanding of the basic customer portfolio and the needs of service needs operating in these countries.

Elsewhere, the same product line follows the result implications of the success in the product sales within the country. With the same business model within the domestic market, the foreign sales will perhaps fetch high returns. The operational requirements for the product are great requiring a dense network of managerial and administration policy, technological requirements and adequate partnerships with partnering companies for freight services. Either, the legal requirements are strict which requires meeting of international laws, business requirements and environmental policies above others.

Elsewhere, the activity requires a comprehensive endowment of personnel and staff of high competence in professionalism and management issues. These will include foreign corporate and governance management team, human resources capital for different operations and export resource persons above others. However, the operational and personnel organization is adequately monitored to provide the most adequate support. The company is well endowed with resource factors which include technical machinery, capital, finance and human resource capital.

The oil refining and processing industry fetches a high competition within the domestic framework. However, the territory is endowed with a lower demand as compared to the high supplying factor. The basic reason behind our export motive is to explore the favorable international market which would perhaps provide a greater financial scope and benefits to the company. Marketing Component The company has a well structured marketing system which involves incorporation

into the fundamentals of the market place requirements. However, the international, marketing department will facilitate an adequate marketing channel.

In order to suit the requirements of the customers within the foreign market territories, the product may undergo modifications in the packaging and scaling process. The market of delivery will be broad including financial consumers such as big industrial companies with heavy machinery or middle sized distributors such as petrol stations. The product distribution from the main terminal point at the African Coast would be the use of freight service of oil tankers. This is perhaps the most adequate and efficient method of distribution.

Through an inquiry from the local chamber of commerce as well as international chambers on foreign export in my country, a well elaborated term of export as well as sale conditions at the foreign market has been arrived. However, the company will take a moderate risk in the sale terms. The total cost of transportation to the customer zones would be allied to the company. However, the billing and selling terms would include financial compounds of the transport and freight services which should however be billed in a manner that support the most adaptable market equilibrium on the demand and the price of the products.

For adequate standards of the export however, the company will set an export department within the domestic terminal. The export process will commensurate to a well structured roles and procedures that are to be followed in the product delivery process. Though a well structured plan however, some few challenges will face the short run business process. Firstly, the activity requires high resource package which

threatens the financial strength of the company.

Elsewhere, the business culture and climate are highly risk in providing a challenging operational environment. Generally the scope of the business laws for both domestic and foreign capacity within the countries of operation is highly rigid and compromised by various legal rigidities and requirements. The business culture therefore endows various challenges to the nature and scope of the market and political risks which the company may came across in the foreign markets. Through the risk factor, the foreign export is expected to meet the challenges of two broad risk categories.

Firstly, will be the market risk which is entrusted by the nature of the general status of product demand as well as its supply. Since the market of operation is known to been perfectly competitive, disequilibrium in the level of supply and demand would exist. This would threaten the level of equilibrium price which would however affect the estimated level of product prices. Political risks would develop from the governance system which may change the nature of the laws and policies on the foreign investment to provide high costs of foreign investment.

Corporate Strategies and Targets

The export plan is compounded by a well founded market research activity which has helped to understand and study the nature and scope of the market. Through a well coordinated market research activity, the company has well endowed statistics about the market condition which includes adequate study of the risks level factor at the market place. Export countries have adequately been studied to provide adequate standards of knowledge on their strength of providing adequate market.

However, the

choice of the East and Central African countries is a list of primary export countries with the choice of export to these countries been equal. The company has a well founded indirect marketing network where various instrument are used in studying the level of scope for the exploration. It has established personal representation in these countries for logistics development, formulating distribution tools, networking and formulating corporate activities within these states. For the goal of expansion into the countries, the company will use adequate management and advertising tools.

These are aimed at creating adequate methods of market entrance, establishment and expansion. These would include, advertising, methods of packaging, product branding, public relations, pricing policies above others The marker of entrance is however, competitive. The company will however use various strategic management tools which would include, process management, corporate management, value chain management, supply chain management above others. Management tools would be used to provide tools for optimal costing with the highest benefits possible. (Kline, 2005)