Business and Industry Profile
Kark Shop is a new tea shop in Muscat, Oman that is aimed at the provision of quality flavored tea to customers around Muscat and other parts of Oman. It is a Limited Liability Company managed by XYZ. XYZ is suitable as a manager of Kark Shop because he has a wide experience in the management position at successful coffee shops in other parts of the United Arab Emirates. Kark Shop has a high potential for growth considering that its management personnel has enough knowledge of tea. In addition, the company’s management team has undergone enough training in health benefits of tea, which makes the team ideal for reliable sales and marketing strategies.
Industry Analysis
Industry Background and Overview
Tea has become a very important commodity not only in the United Arab Emirates, but also to the entire world (Hazarika 285). Given the fact that tea trade is done on a direct basis, resellers of tea add some value at every stage of the trade (Nakamura 67). According to the current market analysis, the most high ranking tea consumers, as well as largest tea producers in the world are India and China. Nowadays, Dubai has been categorized among some of the fast growing areas globally, which makes it ideal market for tea.
Significant Trends
A recent market analysis on the production and sale of tea in UAE shows that there is a significant increase in the demand for tea within UAE and its neighborhood (Nakamura 67). For example, in 2008, Dubai tea imports were 148.6 million kilograms, which recorded an increase of about 4.0 million kg relative to imports in 2007. In 2009, UAE registered the highest number of sales in both coffee and tea, which amounted to about 10.435 tons.
Growth Rate
With respect to the high demand for tea witnessed in the past years, it is expected that the tea industry will tremendously grow in the following years. Over the past 10 years sales in tea have registered a percentage increase of over 100%. Trends in UAE’s tea market nowadays show a positive growth rate of about six billion kilograms by 2016.
Key Success Factors in the Industry
The high demand for tea has contributed largely to the success of the tea industry in general. Such a high demand can be attributed to the growth in individual awareness of the health benefits that are associated with tea. For this reason, Kark Shop will capitalize on its management’s experience to explore different avenues in order to satisfy the demand for tea in UAE.
Outlook for Future
According to tea market trends, the tea industry will grow tremendously in the future as many people discover the significance of tea in their body. Thus, Kark Shop will establish new market for tea in the future to cater for the growing tea demand.
Stage of Growth (Start-up, growth, maturity)
During the start-up stage, we will invest a lot of energy, money, effort, and time to ensure that we manage a stable customer base. Secondly, at the growth stage we will depend on the limited resources of the company to carry out daily activities. We hope to attain maturity after three years, during which we will have a reliable source of income, maximized revenue. At this stage, we will carry intensive marketing to remain competitive in the market.
Company Goals and Objectives
- To run a successful tea shop in Muscat, employ 2-3 employees within the first year of operation
- To achieve sales of at least $150,000 during the first year
- To achieve and maintain a gross margin of 55% on average.
Business Strategy
Desired Image and Position in Market
Kark Shop Company desires to be a market leader in the future, providing flavored tea to customers all over Muscat and other parts of Oman. As such, the company targets a market share of 10% within the first year, and hopes to attain more than 50% within its second year of operation.
Competitive Strategy
Kark Shop will apply a number of competitive strategies including focus, differentiation and cost leadership. Kark Shop will focus its efforts in the provision of flavored tea, which will enable the company craft a market segment for itself. In addition, the company will have enough capital to set the lowest prices for its tea, as a strategy to hedge out its competitors.
Company Products and Services
Description
Kark Shop will focus on the sale of flavored tea. The availability of several types of tea flavors complements the company’s experience. Our primary goal is to serve as a stopover for customers in need of all types of tea flavors, as well as new experiences.
Flavored Tea
Tea will be brewed under the best temperature condition and time to ensure that we take care of all flavors; loose, iced, as well as hot. This ensures that customers’ tastes and preferences are prioritized. Different types of tea have different benefits to the users (Pastore and Fratellone 531). The provision of flavored tea will ensure that customers’ needs for different flavors in tea are catered for. As such, the primary goal of Kark’s flavored tea is focused on ensuring the provision of great therapeutic virtues to all users, with a guarantee of no health problems to all users.
Coffee and Breakfast
Our main focus is on tea. However, we also provide our customers with coffee and breakfast for purposes of diversification.
Future products or service offerings
We are planning to include gift baskets designed for all occasions. In addition, the company plans to introduce chocolates and a variety of pastries.
Marketing Strategy
Target Market and Location
Effective marketing is very important for any company (Smith and Culkin 263). For this reason, Kark Shop will target youth aged between 25 and 60 years within Muscat.
Potential Size of the Market
In 2015, Oman’s population was 4.155 million (Drysdale 144a). This includes 1.28 million people leaving in Muscat. Out of the 1.28 million people leaving in Muscat, 22% are youth and thus, form the target market for our flavored tea.
Market’s Growth
Over the past years, there has been a high demand for flavored tea in UAE. This led to an increase in the number of tea shops specializing in the sale of flavored tea. Export Potential
By the end of the third year, we will start looking for export links, because trends show that there is a lot of demand for flavored tea outside UAE.
Competition
Kark Shop faces competition threats from several other tea shops such as the Chado Tea Lounge, which prides in more knowledgeable staff and detailed tea menus. However, at Kark Shop our menus are simple because we do not assume that all over customers are aware of the different tea flavors available.
Market Research
We recently conducted a market research to find out the state of the market for flavored tea, as well as level of competition.
Competition and Recent Changes
Most people are turning to flavored tea (Balsaraf and Chole 46). This has the implication of increased demand and establishment of numerous tea shops. For this reason, chances are high that the market for flavored tea might be saturated in the future which can have adverse effects on our business (Hazarika 286).
Sales Promotion and Distribution
We are focused on maintaining our existing customers and attract new ones through elaborate distribution channels, sales leads and referral to ensure that we remain competitive in the market.
New Products
We have established a reliable supplier to provide our company with new products whenever needed.
Works Cited
Balsaraf, Swati, and Revant Chole. ‘Tea: Its Potential Health Implications and Other Benefits’. International Journal of Nutrition, Pharmacology, Neurological Diseases 5.2 (2015): 46. Web.
Drysdale, Alasdair. ‘Population Dynamics and Birth Spacing In Oman’. International Journal of Middle East Studies 42.01 (2010): 144a. Web.
Hazarika, Kakali. ‘Changing Market Scenario for Indian Tea’. International Journal of Trade, Economics and Finance (2011): 285-287. Web.
Nakamura, Yoshiyuki. ‘The Past and Future of Studies on Tea’. Genes and Environment 32.4 (2010): 67-74. Web.
Pastore, Robert L., and Patrick Fratellone. ‘Potential Health Benefits of Tea: A Narrative Review’. EXPLORE: The Journal of Science and Healing 2.6 (2006): 531-539. Web.
Smith, David, and Nigel Culkin. ‘Making Sense of Information: A New Role for the Marketing Researcher’. Marketing Intelligence & Planning 19.4 (2001): 263-271. Web.
Brazilian Macroenvironment For Business
Executive Summary
The analysis of the Brazilian market shows that it offers more benefit than challenges to this Canadian firm. It will be appropriate for this Canadian firm to expand its operations to the country. When making the entry, the management will need to incorporate the locals at the managerial positions to ensure that the firm remains conscious of the local environmental forces that affect operations in the country.
Country’s Macro Environment
Brazil is one of the emerging economies in the world. It is one of the leading economies in South American continent with a population of over 200 million people. This makes it the most populous country in the continent. The country is one of the most attractive markets in South America for multinational corporations. This firm should consider making an entry into this country because of a number of factors. Below are some of the factors that were considered.
Political environment
Brazil is a federal republic and is considered one of the leading democracies in the world. According to Mia and Araujo, the country has enjoyed a long period of political stability.1 Although some minor riots were witnessed recently due to what many considered poor leadership in the country, no wanton destruction of property was witnessed. The political stability in the country has helped promote peace and security in Brazil. This firm will be assured of its security as it moves to the Brazilian market. The political leaders are also known to avoid any interference with private businesses, which is another added advantage to this firm.
Economic environment
The economy of Brazil has experienced massive growth over the past decade. The data presented in Appendix 2 and 3 show the country GDP, per capita and private consumption growth from 2006 to 2012.2 It confirms the fact that people in Brazil have a strong purchasing power, a factor that is very important for this firm as it moves to the new market. It will be important to note that a large section of this society is very poor and may not afford some of our firm’s products. According to data from World Bank, although the per capita in Brazil is increasing, some Brazilians still live in object poverty.3 This means that this firm cannot assume that the entire population of over 200 million people will have the capacity to purchase our products.
Socio-cultural environment
Brazil is home to about 204 million people, making it the firth most populous country in the world. As shown in appendix 1, this population has been increasing consistently. Most of the Brazilians are Whites. The socio-cultural diversity in this country is expected to pose a challenge to this firm. The social structure and cultural beliefs in the country is different from that in Canada. This means that the firm will have to spend in research to understand this social structure before officially launching operations. The dominant language in the country is Portuguese, and this may be considered a barrier to successful entry into the market. However, the skilled workforce in the country will be of great benefit to the firm
Technological environment
Brazil, just like Canada, has become a technological hub. Majority of the adults in the country have some form of post-secondary education.4 Emerging trends such as e-marketing is becoming very popular in the country. This technological environment will be helpful to the firm in terms of product promotion and regular communication with relevant authorities.
Ecological issues
The Brazilian government and the general public are increasingly becoming sensitive over issues of environmental protection. Presence of strong environmental activists in the country will force this firm to minimize its carbon emission and manage its effluents effectively to avoid any negative publicity in the new market.
Legal environment
The country has legal structures meant to protect businesses, customers, and the government. This firm will have to understand and follow these laws to avoid any confrontation with authorities. It is worth noting that the level of corruption in the country is higher than that in Canada, and this may affect this firm negatively.
Factor Endowments
The endowment factors in this country may influence a firm’s decision when planning to expand operations to the region. The first endowment factor is the country’s massive population.5 This population would translate to a bigger market than what the firm has in the home country. The huge population will also provide this firm with a relatively cheap labor. The government has also improved transport and communication infrastructure, making it easy to conduct business in the country. The country is one of the major tourists’ destinations in the region because of its magnificent flora and fauna. According to International Monetary Fund, Brazil also boasts of rich oil reserves which reduce its dependency on imported oil.6
Analysis
Benefits
From the analysis of the macro-environment of Brazil, it is clear that moving to a Brazilian market may bring a number of benefits to this firm. The huge population will not only offer this firm huge market for its products, but also a cheap source of labor. This firm may even find it more convenient to move its production plants to Brazil because of the reduced cost of operations. The security in the country and limited political interference will also provide a good environment for operations. The country also has one of the best transport and communication infrastructures that will be of benefit to this firm. Emerging technologies in the country may simplify management process.
Challenges
A number of risks have been identified and the management will have to find ways of dealing with them. The issue of corruption in the country may lead to unnecessary expenses for the firm, especially at the initial stages of the entry when the firm has to get approval from various authorities. The diversity in the country also means that the firm will have to take time to understand the Brazilian community. The language barrier may force this firm to hire specific locals who can speak both English and Portuguese.
Conclusion and Recommendation
The critical analysis done above demonstrates that Brazil is a market that is worth moving into for this Canadian firm that is seeking to expand its operations to the global market. The benefits that the country offers outweigh the risks or challenges that the firm will have to face. To ensure that its entry is successful, the following recommendations should be observed.
- Regular market research after making the entry will enhance understanding of the local forces.
- The management will need to hire host country nationals who understand the local language and socio-economic and political forces.
- A new strategy of operations management will be necessary in this new social and economic setting.
- The management will need to embrace the use of emerging technologies in its promotional campaigns.
Bibliography
Ada, Pellegrini. “Brazil: The Globalization of Class Actions.” Annals of the American Academy of Political and Social Science 622 (2009): 63-67.
International Monetary Fund. “Reigniting Strong and Inclusive Growth in Brazil.”
Mara Richard. “Brazil: Locals and Cosmopolites.” The Antioch Review 71 (2013): 251-262.
Mia, Irene, and Mairina Araujo. “The Brazilian Competitive Report.” World Economic Forum 12 (2015): 1-8. Web.
Nocera, Joe. “A Silver Lining to Brazil’s Troubles.” New York Times, 2015.
World Bank. “Brazil Overview.”
Appendix
Footnotes
- Irene Mia and Araujo Mairina, “The Brazilian Competitive Report,” World Economic Forum 12 (2015): 6, Web.
- Joe Nocera, “A Silver Lining to Brazil’s Troubles,” New York Times, Web.
- World Bank, “Brazil Overview,” Web.
- Pellegrini Ada, “Brazil: The Globalization of Class Actions” Annals of the American Academy of Political and Social Science 622 (2009): 65.
- Richard Mara, “Brazil: Locals and Cosmopolites,” The Antioch Review 71 (2013): 256.
- International Monetary Fund, “Reigniting Strong and Inclusive Growth in Brazil,” Web.
The Concept Of Human Needs Theory In Nursing
Human Needs Theory: Description
In 1943, the Theory of Human Needs was created by Abraham H. Maslow (Cao et al., 2013). Known as Maslow’s Hierarchy (of Needs), the framework allows determining the role of specific factors on the personal development of an individual. According to the theorist, there are six primary needs that must be met for an individual to have a happy and fulfilling life. These are physiological needs, safety, the need for belonging, esteem-related needs, and the need for self-actualization (Cao et al., 2013).
In nursing, the primary tenets of the theory were developed and taken a step further so that the framework could be applied to address health-related concerns. As a result, Henderson’s Human Needs Theory was born (Ahtisham & Jacoline, 2015). Its framework includes the following concepts: breathing, eating, waste elimination, posture, sleeping, dressing, maintaining body temperature, and cleanness (physiological needs); danger avoidance (safety needs); communication and faith (love and belonging), work, recreation, and learning (esteem). The theory suggests that a nurse should keep the focus on all domains of an individual’s life so that the services of the required quality should be provided.
Theory Importance
The significance of the theory can hardly be underrated. It helps prioritize patients’ needs so that the required course of actions could be determined. As a result, the search for the most efficient management and treatment strategies can begin (Ahtisham & Jacoline, 2015).
The theory has gained even greater importance in the context of the contemporary globalized environment, due to an increase in diversity levels, the need to cater to the needs of a range of different demographics with unique backgrounds. Therefore, the necessity to introduce the uniform strategy that could help approach the problem from a particular angle and at the same time maintain some form of order in the nursing practice emerged. This is the point at which the Human needs theory factors in into the nursing practice. It outlines the crucial needs that are characteristic of a member of any community and allows a nurse to determine the further course of actions based on a more detailed analysis of the target community (Cao et al., 2013). Therefore, the Human needs Theory is an indispensable framework that must be adopted in the context of the global environment so that the quality of care should remain consistently positive.
Theory Application in Nursing Practice
The Need Theory is applied in modern nursing so that the specific environment in which the process of recovery could start could be created. The theory sheds light on the elements that are crucial to the successful treatment of a certain disease or disorder. Herein lies the significance of using the Needs Theory in the nursing environment (Cao et al., 2013).
Furthermore, the use of the Needs Theory in the context of modern nursing allows managing the issues associated with diversity. Seeing that cross-cultural communication often implies dealing with a range of obstacles, it is crucial to introduce a uniform approach for meeting patients’ needs that can be expanded into a more detailed strategy (Ahtisham & Jacoline, 2015).
Additionally, a proper understanding and classification of patients’ needs allow for efficient collaboration between the members of different areas of healthcare and nursing (e.g., ICU nurses and Nurse Administrators). The results of their cooperation provide premises for developing innovative approaches to treating specific issues. Consequently, the recovery process occurs at a much faster pace than it would otherwise. Therefore, the Theory of Needs is a crucial component of any nursing practice (Cao et al., 2013).
References
Ahtisham, Y., & Jacoline, S. (2015). Integrating nursing theory and process into practice; Virginia’s Henderson need theory. International Journal of Caring Sciences, 8(2), 443-450.
Cao, H., Jiang, J., Oh, L. B., Li, H., Liao, X., & Chen, Z. (2013). A Maslow’s hierarchy of needs analysis of social networking services continuance. Journal of Service Management, 24(2), 170-190.