ELP 2014-15: Expression of InterestTeam Information
No.Student NamePG IDMobile No.Class Section
1Arijit Biswas61510096+91 97 0121 5544E
261510538+91 95 4056 5700D
361510525+91 70 3264 6185D
4Nitish Barbaria61510824+91 8106458811H
561510266+91 96 7681 3011H
ELP No. Title of the Project
ELP 069Develop entry strategy into Indonesia for two of the
subsidiaries of Pennar Industries
Projects being applied for:-
I agree to take up this project, as a part of this team, if the
team is selected.
E-mail ids of the team members:-
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]/SUB PROBLEM AS THE TEAM HAS UNDERSTOODWith an
imminent plan to grow beyond India in the South-East Asian
countries, Indonesia is a target for future expansion for Pennar
Industries subsidiaries, namely PEBS Pennar and Pennar Enviro
Ltd(PEL). The primary objective of the project is to analyze the
Indonesian market and business scenario and prepare a detailed
market entry strategy and implementation road maps for both the
companies.The South-East Asia is increasingly becoming the hotspot
for Infrastructure development. Indonesia is becoming increasingly
relevant in the Asia-Pacific region with Australia keen on engaging
with the country, in lieu of its traditional partnerships with the
British Isles. Indonesia being a country with hundreds of islands,
faces major infrastructural challenges with connectivity both in
terms of access and in terms of infrastructural services like
electricity (they still have a fragmented grid than a unified grid
etc.) as an issue.What is the approach you will take to address
this issue?We plan to have a three-phase approach to deal with the
issue at hand, and have detailed the same over the subsequent
sections.
Market UnderstandingThe first phase of the project will entail
assessment of the current status of the market, which we propose to
undertake using the following frameworks: Market Attractiveness: We
will evaluate whether the country presents any substantial
opportunity for the firms subsidiaries by looking at the respective
market sizes, projected growth rates, and profitability for the
relevant industry segments for Pennar. Porters 5 Forces Analysis:
This framework will further help us determine the attractiveness of
the market in terms of level of competition among the various
stakeholders, i.e. direct competitors, buyers, suppliers, new
entrants and product substitutes. Competitor Assessment: We will
then study potential direct competitors of PILs subsidiaries in
greater detail in terms of their capabilities, growth histories,
market position, etc. PESTEL Analysis: This framework will help us
assess the various macro-environmental factors dominating the
country that the company needs to take into consideration before it
decides to enter the market. Regulatory Framework: This part of the
project will delve in greater detail regarding the regulations
governing the target industries.Business Case DevelopmentA positive
assessment in the first phase will be followed by the development
of a business case for the groups entry in the market. SWOT
Analysis: This study will explore the companys unique strengths
that can be leveraged and potential weaknesses that can be
minimized for a success in the new market. It will also probe into
any potential opportunities or threats that the company is likely
to face. Potential Customer Assessment: We will identify the
customers that can be initially targeted by the firm to gain a
footing in the market. Partner / Contractor Feasibility: This
assessment will identify the possibility of partnerships that can
add value to the companys offerings so as to differentiate it from
the incumbents or provide it a competitive advantage. Risk
Assessment: We will evaluate the inherent risks associated with
entry into new markets and also any potential risks that may be
associated with operating in that geography.Implementation PlanWe
will subsequently create a roadmap for the company assessing and
detailing the following factors. Investment Requisites and Return
Estimations: We will also explore the various avenues for funding
the required investments. Execution Timeline: We will estimate the
implementation timeline for the company, from initial entry to
establishment of economic activities.Project ApproachThe group will
engage rational-analytic methods in combination with participatory
engagement of the internal as well as external resources. The
overall development of ideas will follow the ancient Greek model of
Aristotle- Theoria, Poiesis and Praxis.ModelOutcomes Activities
TheoriaDevelopment of a robust situational analysisDesk
research, Synthesis and Analysis of Information, Verification
PoiesisDevelopment of Models and approaches for entering,
winning and consolidating marketBuilding models and theoretical
hypothesis on the market conditions, competitive environment,
politico-legal systems and entry methods
PraxisTesting hypothesis and models through engagement with the
context. Development of solutions and suggestions.Site visit,
engagement with stakeholders and testing theoretical models and
knowledge with contextual realities.
Regulatory factors need to be considered for assessing the
viability of setting up construction and water based industries in
Indonesia. The focus will be on the tax regime, government
investment outlook, rules and regulations concerning investment and
industrial development, relevant labour laws, contracting
principles and practices, litigation, mediation and arbitration.
The study will also concentrate on the ease of doing business
(World Bank method), import and export regulations, risk factors,
regulations around environmental protection and native populations,
safety and security.
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