Consultant For Export Company

Answer :

Introduction to Export Company

Role of an entity has increases with the increasing market complexities as this created lot of pressure on an entity in order to upgrade its trade practices. Asiatic mart Ltd has been selected for the given project which is multinational organisation located in the Singapore. This entity deals in offering export goods to other country as customer satisfaction is the primary concern for this enterprise. Being a global entity their major role is to capture higher market share by enhancing its current skills and the capabilities in order to handle higher complexities that may imposed on their business in the near future (Peeters, van Meggelen and Schepers, 2015). Greater emphasises of the employer is lies on the actual business conditions.

Various challenges that needs to be identified by the researcher in the current report includes all the issues which are suppressing the current skills and the capabilities of the firm. Main aim of the business concern is to export all its good or services from one place to another for which they are required to develop good trade relationships among all the businesses. Trade relationship is important in order to convey all important information from one end to another for the betterment of the business. This entity deals in procuring and offering grocery items that facilitates all the needs and expectations of all the users located in the external environment (Shim, 2013).

An export entity is required to follow all the rules and regulations and licensing policies in order to transfer their product from one end to another as wrong passage of goods will in turn affects the current performance of the business concern. EXIM policy will be used which is different for different countries as Singapore economy will support the export from its country to another country increases the foreign exchange reserves. Current economy of Singapore gets increases with all these proceedings as this enhances the current role of the firm in terms of generating higher sales and the revenue in all across the world.

Following all the regulations will benefit an entity in improving the existing business performance of an enterprise. Financial as well as non-financial status of an entity (Anokhin, Kuznetsov and Lachininskii, 2014). Experience of all the customer is regarded as the important for an entity as all their actions needs to be framed according to the higher expectations of all the external market users.

Company selected

Asiatic mart is the international firm that is located in Singapore but operates its business overseas. It was founded in the year 1996, it operates its business through networks of suppliers, distributors and shipping agencies. It has strong network of suppliers and having more than 200 suppliers overseas. Company provides retail products such as bakery equipments, household products, frozen items across the world. It is well known for its freight documentation and custom clearance that is why its transactions are \very smooth and clear.

External Environment Analysis

Porter's 5 forces
  • Threat of new entrance: Asiatic mart faces the new entry of firm which include new government policy, changes in economies of scale etc.
  • Threat of substitutes: It include all the potential factors like buyer's switching cost, standard products and availability of close substitute may affect the Asiatic mart in Singapore.
  • Bargaining power of customers: It include prices which forcefully goes down, customer value analysis, total amount amount of trading etc. are included in Asiatic mart operational policy.
  • Bargaining power of suppliers: Asiatic Mart in Singapore also faces the factors like switching cost, degree of differentiation of inputs, presence of substitute inputs, employee solidarity etc. make great impact in business goals and objectives.

Internal Environment Analysis

BCG Matrix

It is one of the great model that helps in analysing the internal situation of the organization.

Question mark

It the factor products which has low market share and competing in high growth market are considered. Asiatic Mart is working well in the export business, its retail products have high changes to get high sales. But due to currency fluctuations company may get failed as well. There is high chances to become star as well as drop into dong category.


It is the product which has low market share and low growth. Export business has high growth options so Asiatic Mart does not come under this section.


It indicates business units which has high market share and high growth. Asiatic Mart has ability to sustain in this category, it can generate high cash in future significantly.

Cash cow

It is considered for such business firms those which has low growth rate but have large market share. Export products of Asiatic Mart is in demand so cited firm has great chance to generate high income through its export business.

Ansoff Matrix

It is another tool that supports in identifying the internal working performance of the entity.

Market penetration

It is the growth strategy in which company sells existing products in existing market. Asiatic Mart is export firm it wants to expand its business across the world. For that this strategy will not be suitable for cited firm because it will limit it to the Singapore only.

Market development

It is another growth strategy in which company can enter into new market. Asiatic Mart is operating in the export industry so it adopts this growth strategy, This helps the entity in growing well in the market.

Product development

In his company introduce new products in the existing market. Asiatic Mart focuses on existing retail products but by developing its products it can gain competitive advantage to great extent.


It can be defined as new products for new market. It may be risky for the Asiatic Mart because it may be possible that new products do not like by importers and it may harm the image of company as well. Asiatic Mart can use this strategy at smaller level so that it can get to know performance of new products in new market.

Impact of Shareholder

Every business is totally depends on shareholder's position. In Asiatic mart, it include three shareholders which make great impact in business operations. It include customers, employees and shipping agencies which affect the business activity. Shareholder's make great impact business profits and short-term objectives. As per the result, company 23% share are taken by the share holder so that they have a complete right to check the company's actual performance.

Financial Analysis

It is necessary for the organization to manage cash flow effectively otherwise it may create economic problems in the corporation. All firms face some financial challenges, if they handle it properly then they may sustain in the market for longer duration. Asiatic mart is facing some economic problems which re as following

Cash flow issues

Asiatic mart cash flow management is not good because company is unable to get funds on time. As it is working in the export field so many times due to currency fluctuation cited firm is unable to get payment on time. Bank formalities, shipping time takes too much time and that is why it does not get cash on time. That creates problem for the cited firm and it becomes unable to conduct its operation smoothly. It can be commented that Asiatic mart is facing cash flow problem because may of its importers are not paying the entity payment on time. Due to this there is imbalance in cash flow.

Risk averse funding

Asiatic mart has to accept payment in foreign currency. If value of currency get down then cited firm has to face huge loss in this condition. Even in such type of situation it becomes unable to say anything to importer. Many times cited firm has faced the issues where value of importer's country currency got down and company has received less payment when it exchanged the currency in Singapore currency. That has given loss to the organization.

Huge investment

Asiatic mart has to invest large amount in its export business, because cited firm has to pay to shipping agencies, banks and have to pay tax as well. If it fails to get return on it then it would face financial risk that may cause loss to the organization.

Identifying challenges

Challenges are evaluated by an entity owner in order to improve their existing business performance over a certain period. Challenges will inspire an individual in order to overcome all their problems currently faced by an enterprise in the external business environment. Problems are identified by them in order to enhance the existing skills and the capabilities in order to target higher users in the external business environment (Makri, Theodosiou and Katsikea, 2016). Asiatic market located in the Singapore deal in providing outsourcing of various goods and services to all across the world. It also exports goods from Singapore to outside country for which various aspects needs to be considered by them in order to create its unique position in the external business environment.

Internal as well as external factors are required to be analysed by an entity to evaluate the current market position of an entity. Selecting of various strategic management strategies will mostly depend on the entire performance of an organisation in the external business environment (Farja, Gimmon and Greenberg, 2016). There are various challenges identified by a consultant who are evaluating the current position are given as below

Difficulties in export licenses and documentation

Asiatic mart facing this kind of issue as starting business is not difficult in Singapore due to the flexible rules and regulations. It will facilitate all individuals in setting up their business easily that creates high level of competition in the external business environment. In flexible laws and regulations in the country will attract variety of countries in order establish their business in Singapore (Ali and Perumal, 2016). Singapore economy gets increases with the passage of time as different countries gets clubbed with the current economy of a Singapore. With the increasing export business in Singapore the rules or regulations of Export are required to be follow by all the users in the external business environment.

Asiatic mart faces the issues in getting export licenses in the Singapore. Because trade norms of the country are far differed from any other nation, there is some necessary restriction of trading thus, company faces difficulty in running their business smoothly (Ayob, Ramlee and Rahman, 2015). Singapore is considered as small but wealthy city. It has open and trade driven economy which supports many firms in conducting their operations significantly. Export credit agency has made strict rules of exports that creates problem for the cited firm and due to this it has to make modification in its process. Different intellectual property law create challenge for the entity and due to this it can face huge trouble.

Asiatic mart need to cope up with contractual issues and lengthy paper work. When company has to export its goods then it has to make agreement with international firms. For that it is essential to follow standard commercial practices (Nguyen, Nguyen and Bosch, 2015). Paperwork of international trade are more complicated and small mistake can harm the brand image across the world. Bureaucratic rules and procedures of different countries create problem for the firm.

Foreign currency issue

It is another challenge that is faced by the Asiatic mart. In the export business company has to deal with foreign currency (Dai and, 2014). Value of currency can be changed any time, if at the time of exporting the goods it is high but after sending the material if prices get down then it can be problematic situation for the cited firm. In this condition company has to face huge loss and also it can impact on its operations as well.

Each country has its own currency and its rate are decided. Fluctuation in exchange rates can create additional risk for the Asiatic mart. It may be possible that it may face huge loss due to down flow in the currency (Zhu, 2014). Singapore currency is dollar, if it exports the products in the UK then cited firm can face huge risk. One of the major issue in this respect is that in the remittance of money for payments firm has to wait for the payments. It takes time thus, sometimes become expensive for the exporter. Wide gap between date of dispatch and receipt of payment can create situation of bed debt for the company. In this duration if exchange rates get changed then it would be loss for the firm because it has accepted the payment sin other rates and now it will have to accept it on another rates (Rosnan, Saihani and Zakaria, 2015).

Unexpected movement in exchange rates can create major settlement problems for the Asiatic mart. In such condition cited firm will have to expect the payments as per the present exchange rate (Janda, 2014). There are many firms those which are aiming to export their products across the broader due to currency fluctuation risk entity think on this respect twice. If the corporations have strong financial position and have loss bearing capacity then they have to get entered into the export business.

Customs problems

It is another problem that may be faced by the Asiatic mart to great extent. For running its business across the world it is necessary for the organization that to follow all norms and regulations strictly. Apart from this they have to maintain standards as well. Custom problems are one of the major challenge for the cited firm because due to this its goods can be rejected by government of importer country and by importer as well (Salman, 2016). Common problems that are related with the customs are such as misclassification, duties higher as compare to anticipated, labelling issues, inadequate documentation, packaging regulations etc. All these are risk for the entity and before making trade agreement with any firm that located in other nation it is essential for the Asiatic mart that to look upon the custom problems and take care of these aspects (Sippel, 2016).

For example if Asiatic mart does not prepare the documents carefully then it may create huge trouble for the entity because in such condition cited firm will not be able to get payment for its goods. Mistakes in the documentation can be issue for the entity because due to this government can reject entire material and can file case against the exporter. It is the biggest challenge for the Asiatic mart because it can harm overall image of the company to great extent. Most shipper are fully responsible for the custom problems that are faced by customers of exporter (12 Major risks and solutions in Imports and Exports, 2016).

Goods rejection by the government is very common problem that is associated with the customs problems. For example authorities has banned importation of Chewing gum. Asiatic mart needs to take care of this element that whether the product that is exported by the company is acceptable in the country or not. If there is any issue then firm will have to pay huge penalty that would harm the financial and brand image of the corporation. Importer may also reject the goods, there are various reason of the same such as shipping of wrong goods, damage products etc (5 Risks in Exporting Manufactured Goods and How to Avoid Them, 2011).

These are major challenges that can be faced by the Asiatic mart and it has to take care of these elements so that such type of issues can be avoided in the organization. Apart from this, frequent market changes, intense competition, difficulty in transportation and communication, risk in transit, language barriers, distance etc. all are associated challenge with the export business. In the absence of lack of monitoring cited firm can face these problems and this may harm the overall operations of the corporation (Sippel, 2016).


From the above report it can be articulated that trade relationship is one of the essential element of running the export business successfully. Asiatic mart offers grocery items that facilitates to customers those who live in other countries. It has been found that company wants to improve its export performance. For that it is necessary for the entity that to look upon the challenges and to minimize them by taking appropriate actions. Financial risk, foreign currency risk, custom problems are major issues that can be faced by the organization. For reducing such problems cited firm should properly follow the rules and regulations and should monitor the economic condition of import country effectively. By this way it will be able to enhance its performance that will support in increasing profitability of the corporation to great extent.


  • Ali, N. N. K. and Perumal, I., 2016, January. Symptoms Versus Problems (SVP) Framework on Export Barriers to SME'S Led Electronic Products in Taiwan. InSHS Web of Conferences(Vol. 23). EDP Sciences.
  • Anokhin, A., Kuznetsov, S. and Lachininskii, S., 2014. A spatial study of geo-economic risk exposure of Russia’s arctic mono-towns with commodity export-based economy.Journal of Geography and Geology.6(1). pp.38.
  • Ayob, A. H., Ramlee, S. and Rahman, A. A., 2015. Financial factors and export behavior of small and medium-sized enterprises in an emerging economy.Journal of International Entrepreneurship.13(1). pp.49.
  • Cavusgil, S. T. and, 2014.International business. Pearson Australia.
  • Chvalkovská, J. G., MejstÅ™ík, M. and Urban, M., 2014. The Discriminate Analysis and Relevant Model for Mapping Export Potential.World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering. 8(10). pp.3353-3357.
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