International Operations Management Individual Assignment
Export type and organisation
Nature Harvest Mushroom ( PVT ) Ltd is straight export their merchandise to the Malaysia because company can construct good relationship with concern people in Malaysia by covering straight with them. Direct export will assist to place the Malayan market and can place the chances and from them company can catch and turn their market to increase the gross revenues. When company is straight exporting their merchandise, it may take times to make and expensive. Company need to happen a good topographic point where the big figure of people are holding and besides company demand to habits, behaviors and what sort of nutrients they like. This will much more of import to attractive the peoples. And besides company need pay attending to the alterations of the people harmonizing to the demand and wants of them and company besides need to alter harmonizing to that and necessitate differentiate merchandise feature to pull the clients. Company need to happen best topographic points to sell their merchandises.
Nature Harvest Mushroom ( PVT ) Ltd is bring forthing mushroom. There are many assortments in the button mushrooms. And people besides like to see assortments in nutrients so company need make merchandise differentiate before exporting. Nature Harvest Mushroom ( PVT ) Ltd needs to hold better control on their plants and in their export. When holding a better Control Company can make their concern as they decided and besides company able to increase their gross revenues by constructing good relationships with the clients.
By utilizing an indirect export company can’t place the concern chances in the Malaysia and can’t do what company can’t get what they expect. By utilizing direct channel company able to advance their merchandises in the Malaysia. So these are the grounds company is utilizing direct export method.
When speaking about the export, it’s non an easy thing. The company demand to see tonss of things before starts to export their merchandise to another state. Chiefly company demand to see about the export contract. Contracts are making with another other concern people. When making a concern activities trust is an indispensable thing. So these contracts are constructing relationship with other concern people. Nature Harvest Mushroom ( PVT ) Ltd is exporting their merchandises to Malaysia to place that are they holding adequate capableness to export their merchandises.
First of all company need to subscribe a contract with other party to make their concern without any problems. By doing a contract company doing a good relationship with other patry, company can make their export concern successfully. Nature Harvest Mushroom ( PVT ) Ltd is making their concern trades with the written contract. Before the contract company is holding some treatments with the other party to place that what are their offers, clear uping with the uncertainties and comes to some understandings. When fixing the contract by the company, company is traveling to add integrating clause by stating “This contract is the full understanding between the parties, other understandings can non be added subsequently, This Agreement arranged merely in a written papers. By subscribing this written understanding two parties are non traveling to confront any problems.
When company traveling to export their merchandise they need to take the duties for their merchandises because something happens while exporting besides need to look into whether there are holding any harm points before export because duty comes to the company.
When fixing a contract spellings are really really of import because some words are goes incorrect it will demo the incorrect significances and sometimes significances will be alteration. Before subscribing the contract both parties need to recheck the contract. If company reference about the exact bringing clip in the contract, they need to present it on clip.
Company need to pay attending for the revenue enhancements and other regulations and ordinances giving by the authorities. They need to hold to the revenue enhancements and regulations and ordinances giving by the state when they are traveling to export the merchandises. And monetary values besides need to be reference in the contract.
When doing a contract these are some chief things Nature Harvest Mushroom ( PVT ) Ltd needs to be consider. By doing a contract company can export their merchandise in a successful manner without any problem.
Export hazard and hazard decrease
There are some hazard facing by the Nature Harvest Mushroom ( PVT ) Ltd when they traveling to export their merchandises. When exporting the goods, goods might acquire harm. When goods get harm purchaser will non purchase them and they will decline it. Then that will be a immense loss for the company. This was the major hazard company might confront. This is chiefly cause by the packaging system. Export the merchandise without proper packaging. To make manner with the hazard company need to pack their merchandise in a good bundles and proper bundle system without being amendss. From a proper bundle System Company can cut down the hazard.
Another thing company can to cut down the kink while conveyance is to acquiring insurance to their merchandises. Before export if something or harm happens to the goods insurance company will give money for that/ giving the compensation. This method besides reduces the hazard.
Two parties do their payments with the foreign currency. So Foreign exchange rate besides a chief hazard company might be face. To cut down this hazard company can utilize the foreign exchange hedge. This method is used for extinguish the foreign exchange rate that making the payments by the foreign currency. There are three types of contracts in the hedge method those are forward contracts, options and topographic point.
- Forward contract is an understanding with company and the bank to purchase or sell the money at a fit exchange rate at a specific day of the month in future.
- An option contract is sets an exchange rate which company may take to interchange money. If the current exchange rate is better company non traveling for this contract
- Spot contract is an understanding which a company bargain or sell one currency in exchange to another currency.
Nature Harvest Mushroom ( PVT ) Ltd is traveling to utilize topographic point contracts to cut down the hazard.
Nature Harvest Mushroom ( PVT ) Ltd is export their good by the sea. Because transportation by sea is by and large less expensive than transporting by air. But it takes some times to ranges to the finish than the air transit. But company is chiefly concentrating to the seashore decrease. When transporting goods sometimes goods will be damaged transporting by the H2O. So the company demand to pack their goods in a proper and safe manner. And besides to cut down the hazard company demands have insurance for goods. If something happens to goods company can acquire the compensation from the insurance company.
After exporting the good company needs to direct the paperss of that order to the purchaser before the good ranges to the seaport. In that papers clearly need to mansion about the order Numberss, bringing day of the month, payment term and other of import things. Because purchasers need this papers to unclutter the goods from the seaport. In Sri Lanka goods are conveyance from company to the seaport by the company trucks.
Company thinks that transport their goods by sea is better than the conveyance good by air because company thinks they can salvage tonss of money by the conveyance their goods by the sea.