Emm Coursework Two

MAKERERE UNIVERSITY
BUSINESS SCHOOL
PROGRAM: BACHELORS OF INTERNATIONAL BUSINESS
COURSE UNIT: ENTREPRENEURSHIP DEVELOPMENT
YEAR THREE SEMESTER ONE
ACHIVERS GROUP
NAME REG NO. SIGNATURE

SSEKYANZI BRIAN 18/U/4712/PS
MUCUNGUZI DERRICK APOLLO 18/U/4831/PS
NAKIGANDA MARIA CONCEPTA 18/U/7155/EVE
NAMBATYA KETRICIA 18/U/7071/EVE
GUMOSHABE ELINAH 18/U/7093/EVE
NYAMUHANGA MARTINA JOYCE 18/U/6547/EVE
NATUKUNDA DOROTHY 18/U/6637/EVE
TUMUHAIRWE CAROLYNE 18/U/7064/EVE
NAMUGUMYA STELLA 18/U/4796/PS
NAMUREEBIRE RACHEAL 18/U/6624/EVE

An export plan is a business plan that focuses on international markets. It identifies your target
markets, export goals, necessary resources and anticipated results.
An export plan is formulated to prepare companies especially middle and small to enter the
international market place or to better an organization’s existing international business activity.
This tool helps exporters to set their goals, effectively allocate their resources and determine
which countries offer the most potential for their products as well as how to reach their clients
and how to make competitive offers.
Mukwano Industries Uganda Limited is located along mukwano road Kampala plot 30 p.o box
2671. The company’s mission is “To become the supplier of choice for first moving consumer
goods in East and Central Africa” and the vision is “They are committed to produce safe and
quality brands that enrich the lives of people in East and Central Africa everyday”. Mukwano
Industries Uganda Limited produces a variety of products that include plastics, packaged
drinking water, soaps, powder, and detergents, edible oils and fats and proteins for animal feeds.
Amongst the products above, the company can export animal feeds to Kenya. Being a new
product, the company should export to increase the scope of its market, sales, and profits, to take
advantage of the ongoing reduction in trade barriers and the relatively lower costs of
transportation since Kenya is an agricultural based country thus providing ready market for
animal feeds and since the product has survived in the domestic market, there is a chance that it
will also be successful in the international market.
The company should use the following aspects to export:
Export market analysis using SWOT and porter’s five force model
Market selection like selecting the most favourable countries and target markets.
Market entry methods like listing down alternative market entry methods, selecting the most
appropriate market entry method, profile of the ideal client or distributor and negotiation
conditions.
International product mix that is selecting the range of products, standardization or adaptation of
the product to the market, setting international prices and preparation of the product or service to
offer.
International product promotion that is the brand image, brand colors, positioning and
promotional message, communication tools and communication budget.
The economic plan that is sales target, international operating account and payment modes.
EXPORT PLAN
Export market analysis: The export market analysis is done by using the strengths, weaknesses
opportunities, threats and five porter’s model.
The weaknesses of mukwano are;
Lack of patent protection for the animal feeds that it plans to export. This gives a chance to the
rise of new producers of the same products hence increased competition. To overcome this
challenge the company should maintain or increase the quality of the animal feeds beyond the
competitor’s capacity.
Lack of access to key distribution channels. This reduces the chances of the product to reach the
ultimate consumer. The costs incurred in the process of direct distribution form a substantial
proportion of the total marketing cost thus increasing the cost of production the company should
therefore design and manage a proper distribution channel to increase its competitiveness.
The strengths of the company are;
It is uniquely positioned in Kampala making it easy for them to get cheaper labor and raw
materials to use in the production of animal feeds.
The market to which it plans to export is near thus reducing the transportation costs.
The opportunities of the company are;
Ready market in Kenya for animal feeds since it is an agricultural based economy.
Mukwano has an opportunity to diversify by entering other businesses reducing market based
risks and improving business resilience.
The threats of the company
Mukwano faces a threat of competition which is based on the strengths of other competitive
firms in the industry and these threaten to reduce the company’s market share and corresponding
financial performance. Mukwano needs to consider product innovations an opportunity to boost
business performance.
Porters five force model
Threat of new
entrants
Bargaining
Industrial Bargaining power
power for
Rrivals of buyers
suppliers
Threat of
substitutes
Porters five force analysis defines competition and consumers as the most important forces in the
company’s environment. The external factors related to bargaining power of suppliers, threat of
new entrants, threat of suppliers and bargaining power of buyers have a direct impact on
mukwano’s financial performance in the consumer goods market.
The bargaining power of suppliers: The higher the bargaining power of suppliers the higher the
cost of raw materials thus increasing the cost of production which is reflected in the price of the
product. Mukwano should address the high bargaining of suppliers by having a variety of
suppliers that will impose limited influence on the price s of the raw materials.
The bargaining power of buyers: The influence of the buyers on the prices is a strong force in the
porters five force analysis for example low switching costs make it easy for consumers to
transfer from mukwano to other producers of animal feeds. The higher the customer bargaining
power the lower the prices, to reduce the bargaing power of the customers, mukwano should
produce high quality products and improve the relationship between them and the customers to
earn customer loyalty.
Threat of new entrants: New entrants tend to share the available market share for mukwano
products. This increases competition and lowers the sale of mukwano products. Mukwano can
overcome this threat by providing high quality products at affordable or very friendly prices that
new entrants may find hard to meet.
Threat of substitutes: the more the substitute companies the lower the market share for mukwano
industries. Mukwano should provide a variety of animal feeds so as to overcome the threat of the
incoming substitutes.
MARKET SELECTION
Mukwano industries is using a concentration market strategy as it concentrates on producing and
supplying to East and Central Africa. It majorly produces animal feeds for the agriculturalist
economies that include Uganda, Kenya, Tanzania etc. The most favourable country to export to
is Kenya. This is justified by its close distance from the production centre, the agricultural nature
of the country, the presence of the ready market etc.
MARKET ENTRY METHODS

There are many market entry methods that include foreign direct investments, licencing,
franchising, joint ventures and many more others. Mukwano industries should use a foreign
direct investment method as they lack key distribution channels in Kenya. This will help the
industry to set itself up and earn a proper market share in a short time.
INTERNATIONAL PRODUCT MIX

Mukwano industry has a variety of products that include plastics, packaged water, soaps,
detergents, animal feeds, cooking oil etc Kenya being an agricultural economy animal feeds
become the most appropriate products to export as they are used to develop the agriculture
sector.
Since the market in Uganda has similar characteristics for example tastes and prefferences,
quality products etc. with that of Kenya, Mukwano should use the standardization method
through using the same size for all strategy and using similar marketing strategy.
Mukwano should set the price of the products basing on the costs incurred in the production of
the animal feeds. In order for Mukwano industry to produce high quality animal feeds at a low
price, it should ensure efficiency in the production process so as to reduce the costs of production
and set competitive prices penetration.
INTERNATIONAL PROMOTION STRATEGY

Since Mukwano is using standardization strategy, the product branding including size, colour,
naming, symbol, and design should remain the same since the market is almost characterized by
the same qualities. Mukwano should create a website for the Kenyan market and televisions as
communication tools since everything has become digital. The communication and promotion
budget should be favourable to keep the costs of production low.
ECONOMIC PLAN
Mukwano should have an export sales target for a given period for example a sales target of
about 100tonnes per month can be set to motivate the management and employees to increase on
the productivity.
An international operating account should be opened by Mukwano to facilitate financial

transactions for example paying labour and to ease tracking of financial records.
There are many payment methods which include cash in advance, letters of credit, bank draft,
documentary collection, open account, cash payment. The most appropriate methods of payment
are cash in advance, cash payments and bank drafts since the company is to establish its
intermediary in the new market.

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MAKERERE UNIVERSITY

COURSE UNIT: ENTREPRENEURSHIP DEVELOPMENT

YEAR THREE SEMESTER ONE

NAME REG NO. SIGNATURE

NAMUGUMYA STELLA 18/U/4796/PS

NAMUREEBIRE RACHEAL 18/U/6624/EVE

The company should use the following aspects to export:

The weaknesses of mukwano are;

The strengths of the company are;

The opportunities of the company are;

The threats of the company

Porters five force model

MARKET ENTRY METHODS

INTERNATIONAL PRODUCT MIX

INTERNATIONAL PROMOTION STRATEGY

An international operating account should be opened by Mukwano to facilitate financial

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