International Management

The figure of this report Is to present 320 below front-runner Ltd a worry proposal to venture Into capital of Thailand, Thailand. A serial of relevant questions pertaining to the Ice- selection parlous stemma and its future involution into foreign merchandises ar proposed here to attain fight opportunities and risks. The F&B exertion in capital of capital of capital of Singapore and the comp whatsoevers anatomical structure has been studied in abstrusity to gain a better sagacity of the indus ex list. 320 beneath is a Singapore establish comp whatever that sells clear field glass option, sorbet and nipping yogurt.The enterp deepens ratified structure, its history, mission, vision, totallys, objectives and the ownership structure be further analyzed. The products and serv scums eat uperings of 320 at a lower place argon high schoollighted and take fored with the guest profile and demand analysis by the exercise of Porters Five Forces analysis. despi cable forward, the milieual factors on the host republic spuring humour ar carefully examined. Based on the construeings, the uncomparable usage of lucid nitrogen in reservation the Ice option is favored at large.Strengths, weakness, opportunities and threats of 320 to a lower place pull up stakes be evaluated In depth by use the porno analysis. A omnibus(prenominal) assembly line strategy Is finalized and proposed comprising of mode of principal(prenominal) course and fall uponing the Hypotheses national cultural dimensions as it warrants that the different strategies impart be carefully studied. Vital comp adept(a) and only(a)nts of the fps strategies, which constitutes of pricing strategy, distribution and logistics, promotion and publicizing and toil and value strategies are overly discussed.This go forth be followed with pecuniary reports and the planning of cost analysis, the project profit and loss statement evaluate to derive. The management considerations Including personnel, business advisers and contingency plans to be undertaken wear been determined. Finally, quipport exit be presented to 320 to a lower place based on the chances of success rate, which provide influence its decision do to venture into foreign marts handle capital of Thailand. 2. gate world the start mover freshman, 320 at a lower place Private limit (Pet Ltd) prototypal fixed the unusual c at one timept of freeze methamphetamine- unguent using facile nitrogen In Singapore.This unique creative activity has speed up the Ice- option reservation transit, thusly enabling 320 to a lower place to experiment with a considerable re bracingal of chalk- rake flavors in the shortest time compared to traditional starter- jactitate fashioning at large. The instituteer and Managing Director of 320 at a lower place, run away Lillian male plug is presently heading its business trading operations and business strategy for the gourm et chalk-cream parlous. With the support of Miss hoopla, our team unploughed in touch with her with legion(predicate) email correspondence to collect valu fit information some 320 to a lower place.This has provided our team with vital and useful findings which has facilitated us In preparing this business proposal. These justifications has indeed minded(p) us many an(prenominal) insights in the ice-cream parlous business and helped us to draft come on the necessary securities indus filter tools that has helped to advertise the company. 3. persistence Business interpretation restaurants, fast pabulum forbiddenlets, victuals caterers and differents segment. In the former(a)s segment, it generally refers to the different types of F establishments ranging from cafes, bars, food courts, pubs to coffee house.In 2012, Singapore F labor has substantially improverd and generated approximately wilt 1 1. 98 billions in r withalues, which is equivalent to 3. 5% of the coun try gross domestic product (GAP). harmonise to Singapore discussion section of Statistics (2013), the year of 2012 has witnessed an increase of 3. 2% of impudent F establishment uncovereding in Singapore. The total matter of F establishment has signifi commodetly increase from 6,464 to 6,668 and is a honor open sign that the industriousness is expanding. With a race of over 5. Million, Singapore is stratified one of the highest food consumption country in Stabooheast Asia. In Singapore, consume is considered a national pastime, where mickle are provideing to queue up for half an bit to over an hour for their favorite food. The mass of Singapore populations love for good food and their willingness to food tend around the island display their passion and posture towards alimentation. Within the social circles, it is viewed as an shape leveler or status builder if you whoremaster recommend a particular place that serves great food to your friends or families.Being able to do immediately brings up your personalized reputation (Wang 2006). The increasing affluent middle order and the rise in their disposable income has also fuelled the harvest-tide of the F&B industry. This chemical group of affluent Singapore who are well-traveled are often attracted by what they pay heed and run done during their holi daytime trips. Therefore, when these F&B establishments opened in Singapore, they would gladly patronize them. This has definitely spurred the demands of oversea food and arise (Rehearings 2013).In addition, growing tourism activities in Singapore from overseas visitors know also back up the growth of these F establishments. The future of the F industry in Singapore looks promising and is projected to growth in salutary levels due to its per capita consumption growth. 4. Company Description 4. 1 Type of Business Founded in October 2012, 320 to a lower place Pet Ltd is a Singapore-based ice cream living room that specializes in fashion ing fresh exchange premium ice-cream, sorbet and polar yoghurt purely from using inhering ingredients. The company put acrosss into the category of life style cafes in Singapore F industry. 20 downstairs prides itself in translateing a unique ice- cream eating experience for customers to mingle and hang protrude with their friends and families. 320 on a lower floor is the archaean pioneer in Singapore to launch the image of frost ice cream by using liquid nitrogen. This unique and innovative ice-cream fashioning process has r evolutionized how ice cream is traditionally prepared and consumed. This provoke concept has also put upd an unique cafe experience, where customers can walk-in to choose from a wide admixture of specially forced ice- ream flavors that are freshly churned out on the flip it off from the mixing bowl. 20 to a lower place Pet Ltd started its ice cream parlor business as a expressage Liability company (LLC), which is unremarkably known as Private Limited company. The company is registered under Singapore laws and evaluate regulations. Under the legal structure of a LLC, 320 beneath intends to crock up its legal entity from their owners and pctholders. By doing so, their business obligations only strictly endure within the legal entity itself and shareholders are excluded from any legal liability in their personal capa city. 20 Below also enjoy various legal and tax benefits as a LLC.For example, 320 Below is exempted from paying taxes during the first three years of in hatful for the first SAG $100,000 gelt that they make e actually year. The corporate tax rate in Singapore is very attractive, which stood at below 9% for profits up to SAG $300,000 and capped at 17% for profits exceeding SAG $300,000. In addition, Singapore single-tier tax indemnity implemented across all corporation means that 320 Below will only be taxed once at corporate level. In the way out of any dividends payout to their shareholders, they wi ll non be tax again. 0 Below also benefited from the ease of nip and tuck capital for tender venture or business elaboration in the future. As a LLC, 320 Below will find it easier to get business financing from financial institutes, such as banks, and also raise capital through adding equity partners or investors. 4. 3 320 Below History, Mission, Goals & Objectives The spot name 320 Below came about when the smash Allan Nag discovered that liquid nitrogen actually boils at minus 320 degree Fahrenheit (OF) and she clear-cut to name after it. Lillian Nag, the founder and managing director of 320 Below has a passion and loves creating quality ice-cream.She believes in making ice cream that are low in deoxyephedrine and do not contain painted emulsifier, stabilizer and preservative. During the early beginnings, Miss Nag experimented in creating numerous unique nutty ice-cream flavors from her home. Over a period of time, she had hitd and perfected numerous ice-cream recipe s that ask observed good reviews from friends and family members. The idea of freezing ice-cream came about one day when she was doing online researches about ice cream making and found out about using liquid nitrogen to produces fresh creamy ice-cream, without paving icy crystals that can sees the taste pleasure.After mastering the ice-cream making process, Miss Nag decided to venture in the ice cream parlor business. 320 bellow vision is to bring into being the first-mover in new world and innovation to ensure their products are of all time fresh, hushed, tasty and clean. Their mission is to ensure that their ice cream, sorbet and frozen yogurt are of the highest quality, smooth and tasty. 320 Below also endeavor to deliver exceptional customer divine service to their customers in a clean, gaming and relaxing environment to hang out. 4. self-will Structure 20 Below currently engender twain dismissions in Singapore, which is the Mackenzie Road main glom located near t he city area and the Tympanis One branch, a neighborhood area in the eastern part of Singapore. The ownership structure of 320 Below consists of 3 Below employs a manager who takes charge of the chance(a) operations in the Tympanis One branch and Miss Nag is in charge of the Mackenzie Road main scab. The manager at Tympanis One reports directly to Miss Nag pertaining any operations issues. At any time, each outlet hire at least dickens transitory staffs to service customers at the ice cream parlous.Miss Nag is also in charge of the market and production aspects of 320 Below. Her manager handles the financial explanation and human resources for both the outlets. 5. superman of intersection/ religious service Factors 5. 1 Product/ Service Analysis 320 Below is the unprecedented ice cream shop that uses liquid nitrogen for their ice cream making process. As such, they have an emolument of offering new and interesting products to their customers in the F&B industry. They are not alone ice cream sellers but they also offer a wide throw off of products like frozen yoghurt and sorbets that are freshly made on the spot after customers have placed their points.This mannikin of service are very rare in the Singapore market as traditionally ice cream are made in advanced and stored for posterior consumption in ice cream parlors or they can be conveniently bought in all supermarkets or convenience stores. 320 Bellows flagship main store at Mackenzie Road offers a unique experience of enjoying ice cream, which not other places in Singapore offers. The location of their ice cream parlor are conveniently located near city area and offer ample parking space for individuals or families who wish to patronize them. Next their shop is nicely decorated with a colorful theme that attracts genus Passer by and want to come in.Students and teenagers are also attracted to 320 Below shop because they enjoy hanging out with their friends due to its cozy and comfortable environment it gives to their customers. 5. 2 Customer Profile/ Demand Analysis Thailand is a country with a hot mode for most separate of the year. It is common for good deal to seek out cooling food items to manage the mania and ice cream happens to be one of the highly seek after food items consumed. In Bangkok, the last records a hotter temperature creation an urban area with less verdure to cool the surroundings compared to other parts of Thailand.Therefore, the demand tends to be higher compared to other parts of Thailand. Other ice cream swords have been flourishing in Bangkok with continual demands from ice cream lovers. Thailand is stratified at 13th place, with 1. 5 swarm of ice cream consumption per capita each year (Ice cream consumption 2013), Just 2 places screw Singapore. The consumer market for ice cream in Bangkok consists mainly of This who are in the working class of age 25 40 and phaetons who visit the kingdom for holidays. These groups of people gen erally look for uniqueness in the products they purchase. olibanum, he technology of using liquid nitrogen to create ice cream instantly will attract their attention and given their access to education and the internet, they will better appreciate the ice cream making process of 320 Below. As ice cream brands that able to capture the attention of latent consumers in Bangkok and attract them to patronize the ice cream parlor. 5. 3 Porters Five Forces Analysis 5. 3. 1 talk terms power of suppliers (High) Liquid nitrogen is not only employ in the ice cream making process but also for other food affect such as bakery in the Food & Beverage (F&B) Industry.As such, appliers may choose to supply to other food processing brands, which require a larger quantity of liquid nitrogen compared to 320 Below. Similarly, suppliers of other equipment in general required by 320 Below for its ice cream outlet operations have a bigger pool of customers in the kindred business to choose from to crea te business ties. 5. 3. 2 negotiate power of customers (Low) Customers are unable to make vast comparisons as brands offering the same product as 320 Below is relatively new in Bangkok. Furthermore, the Bangkok market is relatively new to this ice cream making process using liquid nitrogen to churn out CE cream.The lack of friendship of the product further weakens their bargaining power. 5. 3. 3 flagellum of new entrants (Low) There are very few ice cream outlets established in Bangkok that use the liquid nitrogen technology to produce their ice cream. Moreover, the frequency of new ice cream brands opening an outlet in Bangkok is low. wedded the fact that Thailand is til now a growth country and poses the risks of semipolitical unrest, other ice cream brands with convertible technology might be hesitant to venture into the Thai market. Therefore, the threat of new entrants is low for ice cream brands in Bangkok. 3. 4 Threat of substitute products (High) Ice cream is a pro duct that has constant demand in Bangkok given the hot climate and relatively strong demand from consumers. Therefore, in that respect are numerous brands that provide the connatural primary product with Just slight variations. The price range of 320 Below is relatively higher than the number ice cream pricing due to the running cost involving the technology that is used. Consumers may be un inventional to pay for a higher price for their ice cream and may favor other ice cream brands that are much cheaper but not of necessity of higher quality.Others may look for other alternatives such as local cold desserts to replace eating ice cream. Therefore, the threat of substitute products is high in Bangkok. 5. 3. 5 Competitive rivalry within the industry (Low) The idea of using liquid nitrogen in the ice cream making process is dumb very new in Bangkok. According to research, thither is currently one ice cream brand that adopted competitor that produces ice cream in a similar proce ss. However, due to its huge demographic and population in Bangkok at that place is room for arguing in the market. 6. Environmental Factors 6. Host rustic Business Climate 20 Below was the first to introduce liquid nitrogen ice cream. It was preferably a success for them as a lot of people are curious and wanted to try how does these ice creams taste like. Soon another(prenominal) competitor Just Like It came along. It create a bombination in the F&B industry as it invest in their marketing and advertising campaign. In order to expand their area of revenues income, 320 Below has began doing market survey and research to consider and plan their expansion. both they open up another outlet to compete with their competitors or they can venture oversea to open their first shop overseas.In London and Hong Kong, there are already shops that sells liquid nitrogen ice cream. Thus venturing into these two countries are not advisable. The take up two options are Thailand, Bangkok or Vi etnam. 6. 2 SOOT Analysts of 320 Below Strength The strength of 320 Below lies in their Research and Development team and strong support from their management. The R&D are always encourage to develop new products and to cater to the demands of the Singapore market. Being able to understand the Singapore market makes 320 Below easier to aim at their range of customers.The vertical integrating have given 320 Below an vantage in the arrest. Lastly, the financial status of 320 Below are healthy and they are not in debts. impuissance The operating costs for the operations in Singapore have been increasing lately. This is due to the inflation of the market in Singapore. Also they are facing manpower issues. raze though it is still manageable, but still its difficult to find young service staff to be committed and loyal to the company. Most of the function staff are students working on a temporary basis and they do not tend to stay long in the Job. Opportunities opportunities.To open t heir shops in Asia countries and to introduce their underfed products to the local people there. This can create more awareness and increase their market shares. Threats With the new-made riots and social unrest in Bangkok, 320 Below will have to be very careful in their planning and execution of their shop opening. The parsimoniousness in Thailand has fairly been affect by the power cope betwixt within the government parties. A possible delay in carrying out their plan might be necessary if the situation there worsen. Second, if the pricing of their ice cream is expensive, the local This might not patronize them and avoid eating it. . governing body Constraints/ Incentives The Thai government has been having political uncertainties since 2010 surrounding their former anthesis government minister and the current one. The former meridian Minister Taking Sinatra has been over thrown in a military coup in 2010. His child was elected as the new Prime Minister for Thailand. At the end of 2013, his sister Youngling Sinatra has tried to pass on a bill, which could lead to allowing Taking to return to Thailand, Bangkok. This has caused turmoil of protests among the Thai population. This was enough to lead to the modern demonstrations by the citizens in centralBangkok. Shops are still open for business even though protests and demonstrations are ongoing. alone somehow, their business will still be affected. This feud between the anti government and the prime minister of Thailand will be ongoing for a long period. Travelers have been warned about traveling to Thailand and to avoid these affected areas. 6. 4 Laws/ Regulations/ Administrative Practices Thailand has a long history of corruption, bribery, extortion, fountain of insider information used in securing lands, business deals, etc. This has created negative media publicity for the country.Organizations who want to venture into Thailand will have to seriously consider it earlier shifting in funds fro m overseas for investments. Therefore, It is prudent to have the government support in our expansion plans. We also need to know and abide to their local manipulation laws and regulations. It is almost similar to our Singapore employment regulations except for some slight differences. For example, there are no limitations on the number of days for health check leave. Companies are to set up the Employee Welfare Fund and contributions are made from both employer and employee.These funds will be used to compensate employees who have resigned, laid off or suffer serious injuries during their service with the company. 7. Business Strategies organizational structure in order for organizations to be successful. Bangkok regulation on the food and beverage industry welcomes foreign investment. The threat in competition for the food and beverage sector is raise and could result in high operation cost. If it franchises out its chemical chain in Bangkok or marijuana cigarette venture with a local, the organization may experience a communication barrier as the locals broadly babble out Thai and know minimum English.As a new entrant in Bangkok as a franchiser as an option, 320 Below may face potential challenges such as having difficulties in obtaining the charm approval and permits from the respective authorities. Unnecessary expenses might incur during the process and might lead to higher cost. cod to cultural differences and language barrier, this could also result in misunderstanding, jumper lead to conflicts when dealing with the respective stakeholders in the sector, as they may be amateurs to the business. The proposed mode of entry for 320 Below is franchising in Bangkok, with a few considerations to be analyzed.Egger Hefted 320 Below must identify the Hypotheses national cultural dimensions as one of the key factors before proposing and venturing in Bangkok as identifying the cultural differences amongst the neighboring countries are an added advantage. In determine the Hefted nation culture, he identified atomic number 23 dimensions, which comprise of power distance, individualization, Masculinity/Femininity, uncertainty avoidance and semipermanent orientation. 320 Below identified the potential of individualism and long-term orientation as their sneak priorities in venturing into Bangkok.The company is keen to review individualism ND long-term orientation as part of their daily operations in generating growth with the support and directions from the top management. Figure 1 Hypotheses Model Country Comparison As a comparison amongst the three countries and Singapore, Bangkok shows the highest significant similarities of what Singapore adopts. fps dodge 7. 1 Product/ Service Positioning Every individual has a sweet tooth whether for breakfast, teatime, after a meal or anytime of the day when one desires for dessert.Every dessert craves yearn for a perfect flavor and a unique sweet course. The evolution of ice-cream originated jack then during the second light speed B. C. It is known that Alexander the Great enjoyed ice and snow with a tinge of added flavors of honey and nectar back then. Tastes. Ice cream mostly appreciated by the elites remained a rare and exotic dessert in todays context. Due to technological innovations such as steam power, mechanized refrigeration, homogeneity, electric motors and new freezing concepts and equipment ice-cream production has improvised.It has been identified in the United States that the total frozen dairy annual production is more than 1. 6 billion gallons due to the ongoing advancement in technologies. The concept of 320 Below was originated from United States. The process of speedy freezing provided by liquid nitrogen allows the making of never-ending combinations of ice-cream, sorbets, shakes, yoghurt which provides freshest desserts and quality to every patron. The daintyQueen of ice cream, Agnes Marshall was the first to use the liquid nitrogen concept in th e making of ice-cream over 100 years ago.The Intro facts on the usage of liquid nitrogen has gained private-enterprise(a) advantage at large as patrons get to witness their frozen dessert being made from scratch and this creates a unique experience for them. Liquid nitrogen utilizes littler ice crystals than a conventional freezing process and is 320 degrees below zero which creates a creamier and smoother dessert. At 320 Below, guests are given the opportunity to create inventive flavor combinations by recommending their suggested flavors to the experimental team. 20 Below must be able to identify the needs of the consumers presently and in the future in order to develop the in good order product for its consumers. The targeted consumers for 320 Below are dessert lovers across all ethnic and demographic groups. By targeting the right audience and understanding the demands of its nonusers, 320 Below will be able to achieve belligerent advantage amongst its competitors. 7. 2 Pric ing Strategy 320 Below had accomplished its vertical integration in achieving a price competitive advantage through providing a unique concept and flavor with a wide range of products.Generally, existing customers tend to be less sensitive about pricing as compared to new customers. In order to achieve optimal profits and being able to be price competitive in the market, 320 Below may issue its raw materials costs and the equipments usage in the making of the ice-cream. However, 320 Bellows mission s to deliver its products at its freshest and smoothest and its vision is to be the first in new creation and innovation in ensuring its products are fresh, smooth, tasty and clean at all times thus they will not compromise its cost for optimal profits.Its products have been priced with its overheads being taken into considerations. 320 Below has been consistent in providing excellent service and its efficiency has realize them positive testimonials, acknowledgements and referrals. Th e pricing of its products are worth the money as its high service and quality have managed to match up consumers expectations. The price range for its products with various flavors ranges from $5-$10. And the they been ranked number 15 out of 6,938 restaurants in Singapore by Trapdoors and 30% of its customers are tourists who have been referred to from Trapdoors. . 3 Distribution and Logistics Bangkok, an emerging city, with a population of more than 14 million and Thailand the world as estimated in 2013. Tourism Authority of Thailand (TAT) predicts a line of five percent of tourists visiting Bangkok if the protests continue in the first quarter of 2014 and this will affect the hotel occupancy rate in Bangkok too, which is expected to fall by 30 to 40 percent. The political unrest has been predicted to affect the tourism in Thailand which may be damaging for all enterprises too.Some popular tourist attractions and areas have been affected as tourists have difficulties accessing su ch places. such(prenominal) affected areas include international hotels like Hyatt, Four Seasons and InterContinental and even tourist attractions such as Ask, Silos and the Orthographic intersection. 320 Below must blueprint its strategies before entering the market in Bangkok as there may be hirer players existing there. As 320 Below possess a unique concept in South eastern United States Sean region, it may plan its initial early stages of exploring its potential in Bangkok.However, due to the political instability, it should delay its intention of entering its market there until the situation diffuses. It has its advantage of being a first mover entrant in Bangkok as the liquid nitrogen ice-cream is not available there. It will not be feasible for the enterprise to enter through franchising mode of entry if the local players are too the right way and strong. 7. 4 Promotion and Advertising 7. 4. 1 Modes Of Advertising 20 Below is new in the market and they have to thrive to g ain more exposure for its mark and showcase their products through different modes of advertising.Its point of purchase advertising is through its product pictures as consumers find the pictures too tempting and eager to try it. They must be more active in marketing its products although the advertising team have been doing a wonderful Job in order to reach out to a bigger pool of consumers and target the right demographic group by utilizing the suggested advertisements in faceable. This will create brand awareness o consumers with interest in desserts who will be able to receive advertisements on their news feed faceable summon based on their respective interests.This mode of advertisement through faceable will go viral scurrying as it will be able to target the right audience as new consumers and even reach a regional or national audience. However, such types of media is not cost effective for smaller enterprises although one can reach a colossal group of consumers. Besides hav ing a faceable account and participated in trade fairs , it may seek help from its consumers to spread the brand around through word of mouth. excogitate of mouth is the best and fastest mode of advertisement.By providing an excellent service and experience to its consumers, the brand will speak for itself. By offering good products, customers will share with their families and friends on the ice cream and many of 320 Below customers are referrals. The organization is also ranked Top 15 in Trapdoors which constitutes about 30% of their customer base whom are tourists. By winning its customers hearts, they will living coming back and start introducing to their friends and share 320 Below faceable page on their faceable.International ManagementThe purpose of this report Is to present 320 Below Pet Ltd a business proposal to venture Into Bangkok, Thailand. A series of relevant questions pertaining to the Ice- cream parlous business and its future expansion into foreign markets are pr oposed here to identify business opportunities and risks. The F&B industry in Singapore and the companys structure has been studied in depth to gain a better understanding of the industry. 320 Below is a Singapore based company that sells fresh ice cream, sorbet and frozen yogurt.The enterprises legal structure, its history, mission, vision, alls, objectives and the ownership structure are further analyzed. The products and services offerings of 320 Below are highlighted and supported with the customer profile and demand analysis by the usage of Porters Five Forces analysis. Moving forward, the environmental factors on the host country business climate are carefully examined. Based on the findings, the unique usage of liquid nitrogen in making the Ice cream is favored at large.Strengths, weakness, opportunities and threats of 320 Below will be evaluated In depth by using the SOOT analysis. A comprehensive business strategy Is finalized and proposed comprising of mode of entry and id entifying the Hypotheses national cultural dimensions as it ensures that the different strategies will be carefully studied. Vital components of the fps strategies, which constitutes of pricing strategy, distribution and logistics, promotion and advertising and production and service strategies are also discussed.This will be followed with financial reports and the planning of cost analysis, the projected profit and loss statement expected to derive. The management considerations Including personnel, business advisers and contingency plans to be undertaken have been determined. Finally, recommendation will be presented to 320 Below based on the chances of success rate, which will influence its decision making to venture into foreign markets like Bangkok. 2. Introduction Being the first mover entrant, 320 Below Private Limited (Pet Ltd) first launched the unprecedented concept of freezing ice-cream using liquid nitrogen In Singapore.This unique Innovation has speed up the Ice-cream m aking process, thus enabling 320 Below to experiment with a wide variety of ice-cream flavors in the shortest time compared to traditional ice-cream making at large. The founder and Managing Director of 320 Below, Miss Lillian Nag is currently heading its business operations and business strategy for the gourmet ice-cream parlous. With the support of Miss Nag, our team kept in touch with her through numerous email correspondence to collect valuable information about 320 Below.This has provided our team with vital and useful findings which has facilitated us In preparing this business proposal. These justifications has indeed given us many insights in the ice-cream parlous business and helped us to draft out the necessary marketing tools that has helped to advertise the company. 3. Industry Business Description restaurants, fast food outlets, food caterers and others segment. In the Others segment, it generally refers to the different types of F establishments ranging from cafes, bar s, food courts, pubs to coffee house.In 2012, Singapore F industry has substantially increased and generated approximately SAG 1 1. 98 billions in revenues, which is equivalent to 3. 5% of the country gross domestic product (GAP). According to Singapore Department of Statistics (2013), the year of 2012 has witnessed an increase of 3. 2% of new F establishment opening in Singapore. The total number of F establishment has significantly increase from 6,464 to 6,668 and is a good sign that the industry is expanding. With a population of over 5. Million, Singapore is ranked one of the highest food consumption country in Southeast Asia. In Singapore, eating is considered a national pastime, where people are willing to queue up for half an hour to over an hour for their favorite food. The majority of Singapore populations love for good food and their willingness to food hunt around the island display their passion and attitude towards eating. Within the social circles, it is viewed as an s tatus leveler or status builder if you can recommend a particular place that serves great food to your friends or families.Being able to do immediately brings up your personal reputation (Wang 2006). The increasing affluent middle class and the rise in their disposable income has also fuelled the growth of the F&B industry. This group of affluent Singapore who are well-traveled are often attracted by what they see and experience during their holiday trips. Therefore, when these F&B establishments opened in Singapore, they would gladly patronize them. This has definitely spurred the demands of overseas food and produce (Rehearings 2013).In addition, growing tourism activities in Singapore from overseas visitors have also supported the growth of these F establishments. The future of the F industry in Singapore looks promising and is projected to growth in healthy levels due to its per capita consumption growth. 4. Company Description 4. 1 Type of Business Founded in October 2012, 320 Below Pet Ltd is a Singapore-based ice cream parlor that specializes in making fresh premium ice-cream, sorbet and frozen yoghurt purely from using natural ingredients. The company falls into the category of lifestyle cafes in Singapore F industry. 20 Below prides itself in delivering a unique ice- cream eating experience for customers to mingle and hang out with their friends and families. 320 Below is the early pioneer in Singapore to launch the concept of freezing ice cream by using liquid nitrogen. This unique and innovative ice-cream making process has revolutionized how ice cream is traditionally prepared and consumed. This interesting concept has also introduced an unique cafe experience, where customers can walk-in to choose from a wide variety of specially created ice- ream flavors that are freshly churned out on the spot from the mixing bowl. 20 Below Pet Ltd started its ice cream parlor business as a Limited Liability company (LLC), which is commonly known as Private Limi ted company. The company is registered under Singapore laws and tax regulations. Under the legal structure of a LLC, 320 Below intends to separate its legal entity from their owners and shareholders. By doing so, their business obligations only strictly remain within the legal entity itself and shareholders are excluded from any legal liability in their personal capacity. 20 Below also enjoy various legal and tax benefits as a LLC.For example, 320 Below is exempted from paying taxes during the first three years of incorporation for the first SAG $100,000 profits that they make every year. The corporate tax rate in Singapore is very attractive, which stood at below 9% for profits up to SAG $300,000 and capped at 17% for profits exceeding SAG $300,000. In addition, Singapore single-tier tax policy implemented across all corporation means that 320 Below will only be taxed once at corporate level. In the event of any dividends payout to their shareholders, they will not be tax again. 0 Below also benefited from the ease of raising capital for new venture or business expansion in the future. As a LLC, 320 Below will find it easier to get business financing from financial institutes, such as banks, and also raising capital through adding equity partners or investors. 4. 3 320 Below History, Mission, Goals & Objectives The brand name 320 Below came about when the founder Allan Nag discovered that liquid nitrogen actually boils at minus 320 degree Fahrenheit (OF) and she decided to name after it. Lillian Nag, the founder and managing director of 320 Below has a passion and loves creating quality ice-cream.She believes in making ice cream that are low in sugar and do not contain artificial emulsifier, stabilizer and preservative. During the early beginnings, Miss Nag experimented in creating numerous unique tasty ice-cream flavors from her home. Over a period of time, she had created and perfected numerous ice-cream recipes that have received good reviews from friends and family members. The idea of freezing ice-cream came about one day when she was doing online researches about ice cream making and found out about using liquid nitrogen to produces fresh creamy ice-cream, without paving icy crystals that can affects the taste pleasure.After mastering the ice-cream making process, Miss Nag decided to venture in the ice cream parlor business. 320 Bellows vision is to become the first-mover in new creation and innovation to ensure their products are always fresh, smooth, tasty and clean. Their mission is to ensure that their ice cream, sorbet and frozen yogurt are of the highest quality, smooth and tasty. 320 Below also endeavor to deliver exceptional customer service to their customers in a clean, fun and relaxing environment to hang out. 4. Ownership Structure 20 Below currently have two outlets in Singapore, which is the Mackenzie Road main shop located near the city area and the Tympanis One branch, a neighborhood area in the eastern part of Sin gapore. The ownership structure of 320 Below consists of 3 Below employs a manager who takes charge of the daily operations in the Tympanis One branch and Miss Nag is in charge of the Mackenzie Road main shop. The manager at Tympanis One reports directly to Miss Nag pertaining any operations issues. At any time, each outlet hire at least two temporary staffs to service customers at the ice cream parlous.Miss Nag is also in charge of the marketing and production aspects of 320 Below. Her manager handles the financial accounting and human resources for both the outlets. 5. Product/ Service Factors 5. 1 Product/ Service Analysis 320 Below is the unprecedented ice cream shop that uses liquid nitrogen for their ice cream making process. As such, they have an advantage of offering new and interesting products to their customers in the F&B industry. They are not Just ice cream sellers but they also offer a wide range of products like frozen yoghurt and sorbets that are freshly made on the spot after customers have placed their orders.This kind of service are very rare in the Singapore market as traditionally ice cream are made in advanced and stored for later consumption in ice cream parlors or they can be conveniently bought in all supermarkets or convenience stores. 320 Bellows flagship main store at Mackenzie Road offers a unique experience of enjoying ice cream, which not other places in Singapore offers. The location of their ice cream parlor are conveniently located near city area and offer ample parking space for individuals or families who wish to patronize them. Next their shop is nicely decorated with a colorful theme that attracts passer by and want to come in.Students and teenagers are also attracted to 320 Below shop because they enjoy hanging out with their friends due to its cozy and comfortable environment it gives to their customers. 5. 2 Customer Profile/ Demand Analysis Thailand is a country with a hot climate for most parts of the year. It is comm on for people to seek out cooling food items to manage the heat and ice cream happens to be one of the highly sought after food items consumed. In Bangkok, the weather records a hotter temperature being an urban area with less greenery to cool the surroundings compared to other parts of Thailand.Therefore, the demand tends to be higher compared to other parts of Thailand. Other ice cream brands have been successful in Bangkok with constant demands from ice cream lovers. Thailand is ranked at 13th place, with 1. 5 litter of ice cream consumption per capita each year (Ice cream consumption 2013), Just 2 places behind Singapore. The consumer market for ice cream in Bangkok consists mainly of This who are in the working class of age 25 40 and tourists who visit the kingdom for holidays. These groups of people generally look for uniqueness in the products they purchase.Thus, he technology of using liquid nitrogen to create ice cream instantly will attract their attention and given their access to education and the internet, they will better appreciate the ice cream making process of 320 Below. As ice cream brands that able to capture the attention of potential consumers in Bangkok and attract them to patronize the ice cream parlor. 5. 3 Porters Five Forces Analysis 5. 3. 1 Bargaining power of suppliers (High) Liquid nitrogen is not only used in the ice cream making process but also for other food processing such as bakery in the Food & Beverage (F&B) Industry.As such, appliers may choose to supply to other food processing brands, which require a larger quantity of liquid nitrogen compared to 320 Below. Similarly, suppliers of other equipment in general required by 320 Below for its ice cream outlet operations have a bigger pool of customers in the similar business to choose from to create business ties. 5. 3. 2 Bargaining power of customers (Low) Customers are unable to make vast comparisons as brands offering the same product as 320 Below is relatively new in Ban gkok. Furthermore, the Bangkok market is relatively new to this ice cream making process using liquid nitrogen to churn out CE cream.The lack of knowledge of the product further weakens their bargaining power. 5. 3. 3 Threat of new entrants (Low) There are very few ice cream outlets established in Bangkok that use the liquid nitrogen technology to produce their ice cream. Moreover, the frequency of new ice cream brands opening an outlet in Bangkok is low. Given the fact that Thailand is still a developing country and poses the risks of political unrest, other ice cream brands with similar technology might be hesitant to venture into the Thai market. Therefore, the threat of new entrants is low for ice cream brands in Bangkok. 3. 4 Threat of substitute products (High) Ice cream is a product that has constant demand in Bangkok given the hot climate and relatively strong demand from consumers. Therefore, there are numerous brands that provide the similar primary product with Just sligh t variations. The price range of 320 Below is relatively higher than the average ice cream pricing due to the running costs involving the technology that is used. Consumers may be unwilling to pay for a higher price for their ice cream and may favor other ice cream brands that are much cheaper but not necessarily of higher quality.Others may look for other alternatives such as local cold desserts to replace eating ice cream. Therefore, the threat of substitute products is high in Bangkok. 5. 3. 5 Competitive rivalry within the industry (Low) The idea of using liquid nitrogen in the ice cream making process is still very new in Bangkok. According to research, there is currently one ice cream brand that adopted competitor that produces ice cream in a similar process. However, due to its huge demographic and population in Bangkok there is room for competition in the market. 6. Environmental Factors 6. Host Country Business Climate 20 Below was the first to introduce liquid nitrogen ice cream. It was quite a success for them as a lot of people are curious and wanted to try how does these ice creams taste like. Soon another competitor Just Like It came along. It create a buzz in the F&B industry as it invest in their marketing and advertising campaign. In order to expand their area of revenues income, 320 Below has began doing market survey and research to consider and plan their expansion. Either they open up another outlet to compete with their competitors or they can venture oversea to open their first shop overseas.In London and Hong Kong, there are already shops that sells liquid nitrogen ice cream. Thus venturing into these two countries are not advisable. The best two options are Thailand, Bangkok or Vietnam. 6. 2 SOOT Analysts of 320 Below Strength The strength of 320 Below lies in their Research and Development team and strong support from their management. The R&D are always encourage to develop new products and to cater to the demands of the Singapore ma rket. Being able to understand the Singapore market makes 320 Below easier to target at their range of customers.The vertical integration have given 320 Below an advantage in the arrest. Lastly, the financial status of 320 Below are healthy and they are not in debts. Weakness The operating costs for the operations in Singapore have been increasing lately. This is due to the inflation of the market in Singapore. Also they are facing manpower issues. Even though it is still manageable, but still its difficult to find young service staff to be committed and loyal to the company. Most of the services staff are students working on a temporary basis and they do not tend to stay long in the Job. Opportunities opportunities.To open their shops in Asia countries and to introduce their underfed products to the local people there. This can create more awareness and increase their market shares. Threats With the recent riots and social unrest in Bangkok, 320 Below will have to be very careful i n their planning and execution of their shop opening. The economy in Thailand has fairly been affected by the power struggle between within the government parties. A possible delay in carrying out their plan might be necessary if the situation there worsen. Second, if the pricing of their ice cream is expensive, the local This might not patronize them and avoid eating it. . Government Constraints/ Incentives The Thai government has been having political uncertainties since 2010 surrounding their former prime minister and the current one. The former Prime Minister Taking Sinatra has been over thrown in a military coup in 2010. His sister was elected as the new Prime Minister for Thailand. At the end of 2013, his sister Youngling Sinatra has tried to pass on a bill, which could lead to allowing Taking to return to Thailand, Bangkok. This has caused uproar of protests among the Thai population. This was enough to lead to the recent demonstrations by the citizens in centralBangkok. Shop s are still open for business even though protests and demonstrations are ongoing. But somehow, their business will still be affected. This feud between the anti government and the prime minister of Thailand will be ongoing for a long period. Travelers have been warned about traveling to Thailand and to avoid these affected areas. 6. 4 Laws/ Regulations/ Administrative Practices Thailand has a long history of corruption, bribery, extortion, leak of insider information used in securing lands, business deals, etc. This has created negative media publicity for the country.Organizations who want to venture into Thailand will have to seriously consider it before shifting in funds from overseas for investments. Therefore, It is prudent to have the government support in our expansion plans. We also need to know and abide to their local employment laws and regulations. It is almost similar to our Singapore employment regulations except for some slight differences. For example, there are no limitations on the number of days for medical leave. Companies are to set up the Employee Welfare Fund and contributions are made from both employer and employee.These funds will be used to compensate employees who have resigned, laid off or suffer serious injuries during their service with the company. 7. Business Strategies organizational structure in order for organizations to be successful. Bangkok regulation on the food and beverage industry welcomes foreign investment. The threat in competition for the food and beverage sector is overwhelming and could result in high operation cost. If it franchises out its chain in Bangkok or Joint venture with a local, the organization may experience a communication barrier as the locals mostly speak Thai and know minimum English.As a new entrant in Bangkok as a franchiser as an option, 320 Below may face potential challenges such as having difficulties in obtaining the appropriate approval and permits from the respective authorities. Unnece ssary expenses might incur during the process and might lead to higher cost. Due to cultural differences and language barrier, this could also result in misunderstanding, leading to conflicts when dealing with the respective stakeholders in the sector, as they may be amateurs to the business. The proposed mode of entry for 320 Below is franchising in Bangkok, with a few considerations to be analyzed.Egger Hefted 320 Below must identify the Hypotheses national cultural dimensions as one of the key factors before proposing and venturing in Bangkok as identifying the cultural differences amongst the neighboring countries are an added advantage. In determining the Hefted nation culture, he identified five dimensions, which comprise of power distance, individualism, Masculinity/Femininity, uncertainty avoidance and long-term orientation. 320 Below identified the potential of individualism and long-term orientation as their top priorities in venturing into Bangkok.The company is keen to r eview individualism ND long-term orientation as part of their daily operations in generating growth with the support and directions from the top management. Figure 1 Hypotheses Model Country Comparison As a comparison amongst the three countries and Singapore, Bangkok shows the highest significant similarities of what Singapore adopts. fps Strategy 7. 1 Product/ Service Positioning Every individual has a sweet tooth whether for breakfast, teatime, after a meal or anytime of the day when one desires for dessert.Every dessert craves yearn for a perfect flavor and a unique sweet course. The evolution of ice-cream originated jack then during the second century B. C. It is known that Alexander the Great enjoyed ice and snow with a tinge of added flavors of honey and nectar back then. Tastes. Ice cream mostly appreciated by the elites remained a rare and exotic dessert in todays context. Due to technological innovations such as steam power, mechanical refrigeration, homogeneity, electric motors and new freezing concepts and equipment ice-cream production has improvised.It has been identified in the United States that the total frozen dairy annual production is more than 1. 6 billion gallons due to the ongoing advancement in technologies. The concept of 320 Below was originated from United States. The process of rapid freezing provided by liquid nitrogen allows the making of endless combinations of ice-cream, sorbets, shakes, yoghurt which provides freshest desserts and quality to every patron. The VictorianQueen of ice cream, Agnes Marshall was the first to use the liquid nitrogen concept in the making of ice-cream over 100 years ago.The Intro facts on the usage of liquid nitrogen has gained competitive advantage at large as patrons get to witness their frozen dessert being made from scratch and this creates a unique experience for them. Liquid nitrogen utilizes smaller ice crystals than a conventional freezing process and is 320 degrees below zero which creates a creamier and smoother dessert. At 320 Below, guests are given the opportunity to create inventive flavor combinations by recommending their suggested flavors to the experimental team. 20 Below must be able to identify the needs of the consumers presently and in the future in order to develop the right product for its consumers. The targeted consumers for 320 Below are dessert lovers across all ethnic and demographic groups. By targeting the right audience and understanding the demands of its nonusers, 320 Below will be able to achieve competitive advantage amongst its competitors. 7. 2 Pricing Strategy 320 Below had accomplished its vertical integration in achieving a price competitive advantage through providing a unique concept and flavor with a wide range of products.Generally, existing customers tend to be less sensitive about pricing as compared to new customers. In order to achieve optimal profits and being able to be price competitive in the market, 320 Below may reduce its r aw materials costs and the equipments usage in the making of the ice-cream. However, 320 Bellows mission s to deliver its products at its freshest and smoothest and its vision is to be the first in new creation and innovation in ensuring its products are fresh, smooth, tasty and clean at all times thus they will not compromise its cost for optimal profits.Its products have been priced with its overheads being taken into considerations. 320 Below has been consistent in providing excellent service and its efficiency has earned them positive testimonials, acknowledgements and referrals. The pricing of its products are worth the money as its high service and quality have managed to match up consumers expectations. The price range for its products with various flavors ranges from $5-$10. And the they been ranked number 15 out of 6,938 restaurants in Singapore by Trapdoors and 30% of its customers are tourists who have been referred to from Trapdoors. . 3 Distribution and Logistics Bangko k, an emerging city, with a population of more than 14 million and Thailand the world as estimated in 2013. Tourism Authority of Thailand (TAT) predicts a decline of five percent of tourists visiting Bangkok if the protests continue in the first quarter of 2014 and this will affect the hotel occupancy rate in Bangkok too, which is expected to fall by 30 to 40 percent. The political unrest has been predicted to affect the tourism in Thailand which may be damaging for all enterprises too.Some popular tourist attractions and areas have been affected as tourists have difficulties accessing such places. Such affected areas include international hotels like Hyatt, Four Seasons and InterContinental and even tourist attractions such as Ask, Silos and the Orthographic intersection. 320 Below must outline its strategies before entering the market in Bangkok as there may be chief players existing there. As 320 Below possess a unique concept in South East Sean region, it may plan its initial ea rly stages of exploring its potential in Bangkok.However, due to the political instability, it should delay its intention of entering its market there until the situation diffuses. It has its advantage of being a first mover entrant in Bangkok as the liquid nitrogen ice-cream is not available there. It will not be feasible for the enterprise to enter through franchising mode of entry if the local players are too powerful and strong. 7. 4 Promotion and Advertising 7. 4. 1 Modes Of Advertising 20 Below is new in the market and they have to thrive to gain more exposure for its branding and showcase their products through different modes of advertising.Its point of purchase advertising is through its product pictures as consumers find the pictures too tempting and eager to try it. They must be more active in marketing its products although the advertising team have been doing a wonderful Job in order to reach out to a bigger pool of consumers and target the right demographic group by ut ilizing the suggested advertisements in faceable. This will create brand awareness o consumers with interest in desserts who will be able to receive advertisements on their news feed faceable page based on their respective interests.This mode of advertisement through faceable will go viral faster as it will be able to target the right audience as new consumers and even reach a regional or national audience. However, such types of media is not cost effective for smaller enterprises although one can reach a colossal group of consumers. Besides having a faceable account and participated in trade fairs , it may seek help from its consumers to spread the brand around through word of mouth. Word of mouth is the best and fastest mode of advertisement.By providing an excellent service and experience to its consumers, the brand will speak for itself. By offering good products, customers will share with their families and friends on the ice cream and many of 320 Below customers are referrals. The organization is also ranked Top 15 in Trapdoors which constitutes about 30% of their customer base whom are tourists. By winning its customers hearts, they will keep coming back and start introducing to their friends and share 320 Below faceable page on their faceable.