Report into Screening Markets for a Specific Product

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Surname 1 Report into Screening Markets for a Specific Product Student's Name Instructor Course Date Word Count: 3000

Surname 2 Executive Summary I am in charge of locating two new markets for one of the company's goods for my current employer, a multinational corporation (MNC) with its home market in the United Kingdom (UK). Based on the need to thoroughly examine the market competition utilizing all of the instruments at our disposal, the screening technique will be changed. The obligation to evaluate the market's potential in light of the observed income elasticity of demand, the quality of the infrastructure, and the available human resources will be one of the procedures defining characteristics. The third stage will be based on a thorough examination of the domestic business landscape with the aim of determining the market ramifications of the fundamental appeal via the prism of the presumptive business environment. A cost-benefit analysis will need to be carried out as a main measure after considering the realistic funding options and the levels of sustainability in the two economies. The research recommends taking advantage of the low income economy after examining a number of variables, including the price of raw materials and the labor force's availability.

Surname 3 Table of Contents Introduction .................................................................................................................................. 3 The Current State of the UK Soft Drink Industry ........................................................................ 5 Looking at the UK Market Today Through the Prism of its Political Environment ................ 5 Economic Viability ................................................................................................................... 6 Features of the Society ............................................................................................................. 6 Legal implications .................................................................................................................... 7 Enviornmental Aspects ............................................................................................................. 7 Initial Screening Process .............................................................................................................. 8 Detailed Screening ....................................................................................................................... 9 Pay Flexibility of Interest and Market Development Rates ................................................... 10 Sustainability and Health Gaps .............................................................................................. 10 Innovation and Differentiation of Products ............................................................................ 11 Initiatives for Sustainability ................................................................................................... 11 Ultimate Selection ...................................................................................................................... 12 Conclusion ................................................................................................................................. 13 References .................................................................................................................................. 14

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Surname 4 Introduction As an economist tasked by my employer, I have been assigned the responsibility to conduct research on two potential markets for a specific soft drink beyond the UK, which currently serves as the company's operational headquarters. Through the application of the Atlas method, the first identified market is the United States, characterized as a high-income nation with a projected gross national income per capita exceeding US$12,696 in 2020 (Audretsch et al, 2021). The second market under consideration is Uganda, representing a nation with an emerging and relatively weaker economy. At the core of this research lies a fictional multinational corporation (MNC), founded on the belief that every economy, including the company's domestic market in the UK, possesses the capability to explore novel market opportunities. The primary objective of this report is to examine the profound impact of recent changes in the global business environment on the market structure for new soft drink products. Moreover, it delves into the crucial stakeholders involved in these markets and the screening techniques employed to assess their viability (Becker- Ritterspach et al, 2022). By scrutinizing external factors, this study aims to provide insights into how global environmental developments influence the strategic landscape of the soft drink company. The fictitious company, now established as the world's leading beverage enterprise, boasts a substantial market share monopoly for its soft drink products. Therefore, this research endeavor seeks to evaluate the external elements that exert influence on the business's operations within the UK market. To achieve this, a comprehensive approach will be undertaken, encompassing a complete SWOT analysis, PESTLE analysis, and Porter's Five Forces analysis.

Surname 5 The objective of such analysis is rooted in the inherent necessity to assess the viability of potential markets, taking into account the company's available resources and capabilities. The Current State of the UK Soft Drink Industry To ensure the dependability and strengths of the current marketplaces, a comprehensive external research process must be undertaken. This process involves applying strategic resources to evaluate the external issues that impact the corporation, known as a "cumulative approach" (Bounchen & Kraus, 2022). This approach encompasses a thorough examination of both macro and micro elements within the company, facilitating a comprehensive organizational analysis. Through a global environmental evaluation, the company's strategic and financial conditions are assessed, with the ultimate goal of enhancing the value chain (Buckley et al, 2017). The report will delve into the macroenvironment factors that exert influence on the local market and the firm's stakeholders. This examination will encompass a comprehensive external analysis, including PESTLE and SWOT evaluations. By conducting a PESTLE study, valuable insights can be gained into how the organization's stakeholders and the current market are affected by the global environment (Carayannis et al, 2022). It is vital to provide a current description of both the domestic and international markets for the specific soft drink product, backed by up-to-date information. This up-to-date data will ensure the accuracy and relevance of the report's findings and conclusions regarding the company's marketplaces and their dependability and strengths. Looking at the UK Market Today Through the Prism of its Political Environment Many countries' shifting tax laws are a major cause of concern for businesses. A market where sugar tax rules increase the ultimate soft product price is the United Kingdom. The soft drink is, but whether it is offered in cans or bottles will affect the retail price. Another possible market for it is the UK (Cavusgil et al, 2022). Other potential competitors have an easier time

Surname 6 entering the market because of the UK's placement inside Europe and the EU. The company will be required to make and market the same standardized product due to taxes and regulations (Cleeve & Ndhlovu, 2015). Businesses will need to invest in training their workers in order to properly project the company's brand due to the government's increasing emphasis on creating clear criteria for certain items (Collinson et al, 2020). If the training is adapted to the individual needs of the staff, staff productivity can be increased. Economic Viability The way a business runs must adjust whenever its regulations are changed, which can have actual, observable effects on the bottom line. The country's economy, inflation rate, and currency exchange rate are other factors that affect the expected results. Any shift in the economy could have a huge effect on customer spending, and if things don't work out as expected, the company could sustain a sizable financial loss (Daniels et al, 2021). The corporation wants to sell its products all around the world at prices that are reasonable and competitive (Dunning & Lundan, 2008). The nation and the company are both working to reduce their carbon footprints. The idea suggests that the company needs to start taking a lot of action from a very dynamic vantage point, which is represented by the use of high micron plastic bottles. Features of the Society The business must focus on marketing the new products that have attracted so many new customers. The partnership will enable them to collaborate with high-end events. The difference emphasizes how crucial it is for the company to look into sponsorship options at IPL and other cricket premier league events. Market growth is always possible, particularly when products are well-liked by customers. Social messages must be modified to reflect the shifting ideologies in

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Surname 7 each nation. The approach will take into account all relevant product information and safety procedures (Graves et al, 2022). The company will have to put the welfare of its clients first because of the chasm. The company will warn all of its suppliers about the product's use of these substances as a precaution and will clearly mark the caffeine and sugar amounts. Aspects of Technology The Fictious company's bottom line benefits from technology's constant evolution. The company should take every precaution to protect its technological edge. Social engagement and technological sophistication go hand in hand. Utilizing computer systems that are networked would benefit the firm since they would be easier to maintain and update. Even the company's competitors are unable to keep up with its tremendous rate of innovation during the previous five years (Ndhlovu & Ndinda, 2017). The development of automated technology has made it possible for the maker of soft drinks to produce high-quality, user- friendly products. The business has adopted the PlantBottle idea in an effort to boost demand for petroleum products. Legal implications The laws and guidelines that the Food and Drug Administration and other governmental organizations enforce are some of the traits that the corporation has inherited. It's crucial to remember that the business must comply with numerous rules, not just those set forth by the FDA, including those relating to environmental protection, international trade, and agriculture. The group maintains that it does its business morally and legally. The manufacturer of soft drinks is set up to support a variety of UN resolutions and offers its employees a number of advantages to promote a positive work environment (Ndhlovu, 2011). As required by law, the business makes sure that no minors or forced laborers are engaged in any of its operations.

Surname 8 Enviornmental Aspects The UK is passing a lot of new ecological legislation as a result of our increased comprehension of environmental behavior. All environmental regulations must be followed by businesses in order to operate efficiently and with the least amount of environmental impact. The sof beverages company will now adhere to several environmental standards, including those that control waste disposal and water purity. The production of its products is governed by a multiplicity of environmental laws that must be complied with. It is now necessary for the maker of soft drinks to alter its production processes in order to reduce its environmental effect and reliance on nonrenewable resources (Ndhlovu, 2012). Initial Screening Process A stringent screening method will be used in the process of determining whether or not the selected markets are viable. This approach expects to recognize the key factors that impact market possible in both very good quality and low-pay economies. We will employ a more efficient approach known as penalized least squares with the SCAD penalty for variable selection rather than traditional methods (Ratten, 2020). The careful selection of relevant variables that are likely to have an effect on the soft drink market in each target country will be the first step in the screening process. These factors might incorporate shopper inclinations, buying power, Gross domestic product development rates, populace socioeconomics, social elements, administrative climate, and contender examination. Each chose variable will be relegated a weight in light of its apparent importance and effect on the soda business in the separate market. We will use data-driven and automated methods to select the appropriate values for the variables. This will guarantee that our analysis is fair and based on actual data. The qualities set for every variable not entirely set in stone by examining verifiable information, market patterns,

Surname 9 well-qualified conclusions, and significant financial pointers well defined for each market. We will carry out an extensive cross-analysis of the data for both Uganda and the United States once we have established the variables and the values that correspond to them. We will be able to identify the primary influences on the soft drink industry in each market through this analysis. The consequences of this examination will then be used to make a main market passage technique for every country. The degree of competition, the availability of resources, and gaps in market entry will all be taken into account in the preliminary analysis. The levels of competition will help us understand the level of competition in each country's soft drink market. Accessible assets will give experiences into the organization's capacity to use its assets and address expected shortcomings while entering these business sectors. Gaps in the market's entry will highlight untapped opportunities and areas where the business can gain an advantage over the competition. We want to make well-informed decisions regarding the viability of the selected markets for the expansion of the soft drink company by employing this data-driven and automated screening strategy. This technique will empower us to reveal key experiences into the special difficulties and open doors introduced by each market, subsequently working with a fruitful market section procedure. Detailed Screening We will use a new screening method to thoroughly examine the competition in the non- carbonated soft drink market in Uganda and the carbonated soft drink market in North America and to determine the most lucrative opportunities for exploitation. The key variables that are necessary for making well-informed strategic decisions will be included in this approach. The

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Surname 10 modifications and considerations for the screening procedure are outlined in the following sections: Pay Flexibility of Interest and Market Development Rates To survey the capability of each market, we will intently look at pay flexibility of interest and authentic and projected market development rates. In Uganda, understanding pay flexibility will assist distinguish portions with higher potential for development. To determine which product categories are likely to see an increase in demand as disposable incomes rise, we will conduct an analysis of income distribution and consumer spending patterns (Verbeke, 2021). In a similar vein, we will assess market growth rates in North America, a region with a significant market for carbonated soft drinks, to identify potential expansion opportunities. Understanding the elements driving interest for carbonated refreshments among purchasers of any age and financial foundations will be pivotal in recognizing undiscovered learning experiences (Wild and Wild, 2020). Sustainability and Health Gaps The increased demand for sustainable and healthful goods is a significant shift in the market for non-carbonated soft drinks. Evaluation of consumer preferences for "clean labels" products, such as teas, fermented beverages, low-sugar options, and fortified beverages with health benefit claims, will take precedence. Effective marketing and product development strategies will require an understanding of the shift away from beverages high in sugar and the rising popularity of non-carbonated alternatives (Verbeke, 2021). Labeling and marketing efforts should place an emphasis on information transparency and simplicity in order to capitalize on this trend. In order to meet consumer expectations, we

Surname 11 will conduct consumer surveys and market research to determine the most appealing health and sustainability features that can be incorporated into product offerings (Rugman & Collinson, 2012). Innovation and Differentiation of Products Product differentiation and innovation will be crucial to gaining a competitive advantage in both markets. In Uganda, we will zero in on special flavor profiles and practical highlights to separate soda pop contributions from contenders. Additionally, we will investigate opportunities to create beverages based on regional inspiration and catering to local preferences and tastes (Verbeke, 2021). We will conduct extensive research to identify gaps and unmet needs in the carbonated soft drink market in North America. To gain a competitive advantage, innovative packaging formulations and designs that cater to health-conscious customers will be evaluated (Wild & Wild, 2020). Initiatives for Sustainability We will investigate the environmental initiatives and practices of soft drink manufacturers in order to evaluate the sustainability levels of both economies. Sustainable ingredient sourcing and eco-friendly packaging materials will appeal to environmentally conscious consumers in Uganda. According to Rugman & Collinson (2012), we will assess and identify opportunities for improvement in the sustainability initiatives of local businesses. In North America, we will break down the responsibility of soda organizations to continuous item advancement with an accentuation on eco-accommodating practices. The impact of initiatives like recycling programs, sustainable packaging, and responsible sourcing on consumer perception and brand loyalty will be evaluated (Wild & Wild, 2020)..

Surname 12 Ultimate Selection The two markets, Uganda and the United States, are considered the best in this study for the fictitious soft drink manufacturer due to several compelling reasons. 1. Potential Market Growth and Medium-Term Prognosis: The study confirms that the non- carbonated soft drink market in Uganda offers significant growth potential. With a medium-term growth prognosis that takes into account the effects of COVID-19, Uganda presents opportunities for expansion and market penetration. The projected growth rates indicate a positive outlook for the soft drink industry in the country, making it an attractive market for the fictitious manufacturer. 2. Comprehensive Market Analysis: Both the reports on Uganda and the United States provide a comprehensive analysis of the respective non-carbonated soft drink markets. The studies cover various aspects, such as market size, dynamics, segmentation, key players, pricing, international trade, insights, trends, growth drivers, and challenges. These in-depth analyses equip the fictitious soft drink sector with vital business intelligence to make informed decisions and understand market trends. 3. Significance of Entering the Ugandan Market: The study highlights the significance of entering the Ugandan market, emphasizing the potential for growth and the importance of understanding the current market conditions. With various circumstances, including recently established policies and altering labor market trends, the study underscores the need for strategic market entry in Uganda to capitalize on emerging opportunities.

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Surname 13 4. Driving Forces of the US Soft Drink Industry: The decision-driving forces in the US soft drink industry emphasize the concept of "premiumization." Major US soft drink industry participants dedicate efforts to premiumizing their products by using advertising-friendly packaging. The widespread use of 250 ml cans is a notable indication of this trend. Understanding and responding to these driving forces can enable the fictitious manufacturer to position its products effectively in the US market and gain a competitive advantage. 5. Importance of the UK Market in the Competitive Environment: The analysis considers the importance of the UK market in the competitive environment. Examining market shares of dominant enterprises helps in understanding the landscape and identifying market opportunities. The study also provides insights into the delivery of individual units, creating new market prospects that can be tapped through effective supplemental investments. 6. Intense Market Competition in the US and UK: Research on the economies of both Uganda and the United States reveals that soft drink manufacturing businesses face significant challenges in brand competition and forming strategic partnerships. Established competitors need to work harder to sell their products and reach a global audience. Understanding and navigating the intense store-to-store sales competition and cutthroat rivalry in the food and drink industry are vital for the fictitious manufacturer to succeed in both markets

Surname 14 Conclusion The soft drink market is being influenced by a significant trend highlighted in the report - the growing preference for ecologically friendly and nutritious products. This trend is evident in both the Ugandan and US markets, where consumers are shifting towards "clean label" beverages, such as fermented drinks, teas, low-sugar options, and fortified beverages with health benefit claims. As a result, non-carbonated beverages are experiencing increased popularity, while high-sugar drinks are being consumed less frequently, now considered more of a treat. The importance of information transparency and simplicity in product labeling cannot be underestimated. Consumers are becoming increasingly conscious of product labels and ingredients, demanding clearer and more honest information. To meet evolving consumer preferences, organizations operating in both economies must prioritize providing transparent and straightforward product information. The reports' conclusions reveal that major players in the soft drink industry have responded to these changing consumer trends. They are actively working to reduce sugar content and diversify their offerings with a greater variety of fortified soft drinks and zero-calorie alternatives. Additionally, companies are focusing on creating unique flavor profiles and incorporating beneficial features to differentiate their products from the competition. The promotion of fruity flavors aims to associate their products with the perceived health benefits of fruit ingredients. By studying the developments in both the US and Ugandan markets, it becomes evident that Uganda holds promise as an investment target. Despite the challenges posed by COVID-19, the medium-term growth prognosis for the non-carbonated soft drink market in Uganda remains positive. The increasing demand for sustainable and healthful products in Uganda, combined with the potential for market expansion, makes it an attractive destination for the fictitious soft drink manufacturer.

Surname 15 References Audretsch, D., Mason, C., Miles, M. P. and O’Connor, A. (2021). Time and the dynamics of entrepreneurial ecosystems, Entrepreneurship & Regional , 33 (1-2), 1-14. Becker-Ritterspach, F. A. A., Lange, K. S. G. & Allen, M. M. C. (2022). Dominant modes of economic coordination and varieties of firm internationalization support, International Business Review , 31 (3), 1-10. Bounchen, R. & Kraus, S. (2022). Entrepreneurial ecosystems in an interconnected world: emergence, governance and digitization, Review of Managerial Science , 16 , 1-14. Buckley, P. J., Doh, J. P. & Benischke, M. H. (2017). Towards a renaissance in international Business research? Big questions, grand challenges, and the future of IB scholarship, Journal of International Business Studies , 48 (9), 1045-1064 Carayannis, E. G., Grigorudis, E. & Worth, B. (2022). OR for entrepreneurial ecosystems: A problem- oriented review and agenda, European Journal of Operational Research , 300 , 791-808. Cavusgil, S. T., Knight, G. & Reisenberger, J. (2022). International Business: The New Realities , 5 th edition, Pearson Education UK. Cleeve, E. & Ndhlovu, T. P. (2015). Ethnicity and Performance of Entrepreneurs in African Business, in S. Nwankwo & K. Ibeh (eds.) , The Routledge Companion to Business in Africa , London: Routledge, 160-174. Collinson, S., Narula, R. & Rugman, A. M. (2020). International Business , 8 th edition, Pearson Education UK. Daniels, J. D., Radebaugh, L. H. & Sullivan, D. P. (2021). International Business: Environments & Operations , 16 th Global edition, Pearson Education UK.

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Surname 16 Dunning, J. & Lundan, S. (2008). Multinational enterprises and the global economy , 2 nd edition, Cheltenham: Edward Elgar Publishing Ltd. Graves, C., Shi, H. X. & Barbera, F. (2022). Family-sized non-economic goals and the internationalization of family firms: Evidence from Australia, International Business Review , 31 (101974), 1-15. Ndhlovu, T. P. & Ndinda, C. (2017). Social Entrepreneurship in Southern Africa: A Critical Analysis of Diaspora Social Investments, in S. Ojo (ed.), Diaspora and Transnational Entrepreneurship in Global Contexts , IBG Global, 219-235. Ndhlovu, T. P. (2011). Corporate Social Responsibility and Corporate Social Investment: The South African Case, Journal of African Business , 12 (1), 72-92. Ndhlovu, T. P. (2012). Globalisation: A theoretical reflection, World Journal of Entrepreneurship, Management & Sustainable Development (WJEMSD) , 8 (2/3), 95-112. Ratten, V. (2020). Entrepreneurial ecosystems: Future research trends, Thunderbird International Business Review , 62 (5), 623-628. Rugman, A. M. & Collinson, S. (2012). International Business , 6 th edition, Pearson Education UK. Verbeke, A. (2021). International Business Strategy: Rethinking the Foundations of Global Corporate Success , 3 rd edition, Cambridge University Press. Wild, J. J. & Wild, K. L. (2020). International Business: The Challenges of Globalization , 9 th global edition, Pearson Education UK

Report into Screening Markets for a Specific Product

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