Export Capability & Readiness Business Book Report

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Discussion of management commitment

A distribution center will definitely be needed in Hong Kong, with full-time management and a staff of at least 25. Contract transportation drivers can be used to bring product from the distribution center to retail locations. Financial needs will be somewhat substantial at first to carry out securing the distribution center, hiring and training staff, and marketing the product, however there is substantial capital available to support this venture (General Mills, 2012a).

2. Export market research, screening and selection

In the last few decades, rapid economic development has been seen in many countries in Asia, with China now standing as the second largest economy in the world and Asia as a whole is a larger economic unit than the Americas or the Eurozone (APO 2012).

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The association of Australian agriculture and American branding with quality also exists in China and other parts of Asia, where food quality is low and prices often high (APO, 2012).

There are three markets that have high potential as export targets: Japan, Hong Kong and China. The following analysis results in a recommendation to export to Hong Kong:

1. Hong Kong

Hong Kong was a colony of the United Kingdom for a century and a half, and though this ended in 1997 there is still a great deal of Western cultural influence in Hong Kong that makes.....

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