Arnott’s is seeking to expand their operations internationally with the product Tim Tam into Myanmar. In this report will estimate by SWOT analysis and PESTL analysis following with recommendations.
Arnott’s is one of the largest food companies with manufacturing biscuit products in Australia. Tim Tam is one of the product of biscuit of Arnott’s which coated by two layer of chocolate malted biscuit and a chocolate cream filling between two layers. It is very famous in Australia that around 35 million packs are sold each year. (Arnott's Biscuits Limited 2011)
The recommended method is to import the ingredients such as cocoa bean to Myanmar and manufacture the final product in Myanmar. As the average monthly salary of manufacturing workers are very low compared with other international countries that’s only got USD$200. (ERI Economic Research Institute) As the lower salary in Myanmar, Arnott’s can increase their profit of their operation.
2.0 Political Environment
2.1 Government stability
The incumbent president of Myanmar is Thein Sein since 30 March 2011 who set policies to achieve a stable economy in Myanmar. (The New York Times 2011) The head position of Myanmar is not elected by Myanmar people directly but is elected by three separate committees in government. It proved a success situation of government by good policies set by past-president before and stabilized Myanmar in internal and external.
2.2 Government and contribution
Being one of the members is in Association of Southeast Asian Nations. (ASEAN Secretariat 2011) Myanmar has a good relationship with other members such as Malaysia and Singapore. Annual growth rate in 2011 in Myanmar is 3.2%, it attract more investment increasing the competitiveness in the world. (U.S. State Department 2011)
2.3 Analysis
A good growth rate will attract the foreign investments and stimulate the local market in Myanmar. Political stability also will push the economic growth and