Business Report Sample: Zespri

1. Introduction

Background 

This study is about the international market entry plan for the company Zespri. The international marketing plan mainly helps a business firm to expand its business process into a new market. Therefore, the international marketing plan will help the business managers of the company Zespri in order to expand its business in Oman (zespri, 2019). In the current position the organization is stable in both international markets as well as in the native market also. The company Zespri has already entered in various countries for developing its business process in all over the world (Zespri, 2018). In the same context, the firm will also its market entry plan in order to enter into the market of Oman. 

Purpose and foreshadowing

The assignment mainly focuses on the international market strategy of the company Zespri. It has been evident that the company Zespri is one of the largest marketers of kiwifruit in the world. This report will shed light on the business and product description of the company Zespri. Moreover, the paper also highlights the analysis of far environment which is OMAN and an analysis of near environment which is New Zealand. In addition, the assignment will shed light on the size of the business market of OMAN.  This paper will also discuss the Uppsala model of internationalization theory for the company Zespri. Moreover, different elements of marketing mix will also be discussed in this assignment. Furthermore, this paper shed light on the market entry modes that will be appropriate for the company Zespri to enter into the market of Oman. The report will further discuss the expected cost and sales of the firm Zespri in Oman.

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2. Business and product

Introduction of the company

Zespri is one of the top companies based in New Zealand and deals along with the export and retail of kiwi fruit and the company has a customer base in 54 countries throughout the world with a 30% share of the total kiwi fruit which is being transported over the world (Skerrett, 2019). The organization which is acting as one of the leader in kiwi fruit retail was founded in New Zealand itself as the country deals along with a good and appropriate weather for the harvest of kiwi fruit. Not only the organization is helping the country to become the top kiwi fruit harvesting nation it also been developing and maintaining the real taste of kiwi fruit over the world (Morrison, 2017). Strategy of the company had been helped it to go along with the growth rate of the international market which reflects through 2017 FYI as the organization went through a revenue of 3 billion dollars and the growth of 26% as well (Zespri, 2018). With all the above facts the organization had achieved 500 million dollars throughout the international market.  Furthermore the organization also had been able to forecast a 76% growth in the share of the shareholders of the organization (Cwalina, 2018). 
Reason for considering exporting 
The export business process has been chosen by the authorities of the firm Zespri in order to expand its business in all over the country OMAN. It has been identified that the company Zespri is already doing its business in the international market (Dalziel, 2018). Therefore, by entering into the market of OMAN, the company would be able to develop its business process in the whole Middle East region as well. Moreover, the company will also be able to maximise its profitability rate. 

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3. Justification of Import/Export country

1. PESTLE Analysis 

Political Factor
The political nature of the Government of Oman attracts lots of investors to start their business organisations. The country has also joined the World Trade organisation and free trade agreement in order to stabilise the import and export business. Therefore, the company Zespri will also be able to export its Kiwifruits in the market of Oman by using the political factors of Oman Government (Bush, 2018). Moreover, the stable political situation of Oman will also help the company Zespri to develop a sustainable position in the country. On that note, the company will also be able to export its resources from New Zealand in the market of Oman (Profile, 2019). 
Economical factor 
The economy of Oman is totally based on the rural, agricultural country, fishing and overseas trading. It has been observed that the GDP rate of Oman is currently $79.50 billion and it is expected to increase by more than $ 87.50 billion by the year 2022 (Skerrett, 2019). On that note, it can be said that the economic rate of the country will increase by more than 9.15% by the year 2022 which will be beneficial for the business organisations to develop their market position (Shukaili, 2018). The company Zespri will also get benefits with the increment of economical rate of the country Oman. The firm will be able to develop a strong financial position by exporting its products like Kiwifruits.  
Social factor
The social factors of the country OMAN mainly include the behaviour of the people towards the organisational products and services. It has been identified that the country developed a well maintained social security system including survivorship benefits to the people who are aged from 15 to 59. In the same context, the behaviour of the Oman people is positive towards the healthy products that are available in the market (Cwalina, 2018). This will help the firm Zespri to sell the Kiwifruits products in the business market of Oman as the people of the country are quite serious about their health (Morrison, 2017). 
Technological factor
The technological factors of the country OMAN mainly include the high development of technology. The advancement of technology that has been adopted by the country will help the company Zespri to market its products in the Oman market (Castellões, 2019). The company will be able to use online marketing strategy as well with the use of latest technologies like 5g and other artificial intelligence elements (Profile, 2019). Therefore, the latest technological factors of Oman will help the firm to use its export business function in an effective way. 
Legal factor
The legal factors of Oman mainly include the rules and regulations of the Government. The country does not have any kind of written legislation. Moreover, the anti-discrimination law has also not been implemented by the country. The Government mainly follow the Islamic Sharia law in order to monitor and manage the rules and regulations of the country. The Government has also implemented the foreign direct investment law in order to facilitate the import and export business for the organisations. Furthermore, it has been observed that 100% of foreign ownership is also permitted in the country. Therefore, the FDI policy and the foreign ownership facility of the country will help the firm Zespri to operate its exportation business of Kiwifruits in an effective way (Bush, 2018). 
Environmental factor
The environmental factors can affect the working environment of the company Zespri. In addition, the environmental factors can affect the sustainability rate of the company in such a manner by which the firm will face major issues in managing its business culture (Cwalina, 2018). In order to address this fact, the authorities of the firm must try to develop a new business model by which the environmental sustainability can be maintained. As the country OMAN is very fond of environmental sustainability, therefore, it is very important for the company Zespri to develop its rules and regulations by which the sustainability of environment can be maintained (Zespri, 2018).  

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2. Analysis of the near environment

Competitors- Some of the rival companies of Zespri in New Zealand are the Trevelyan’s Pack and Cool, East Pack, Mount Pack and Cool Ltd and Seeka Aongatete (Farouk, 2018). It is the responsibility of the authorities of the organisation Zespri to analyse the strategies of the competitors in order to develop a sustainable position. In addition, the competitors can also try to develop a new process of business for achieving the goals and objectives (Zespri, 2018). Therefore, the business firm Zespri must try to analyse the policies and strategies of the competitors in order to develop a competitive advantage in New Zealand. 

3.Customers- 

The Company Zespri has mainly selected all the age group of people in New Zealand as target customers (Nasseri, 2018). It is the responsibility of the management of an organisation to provide suitable services to the target customers in order to get their attention. Low cost products can also be an appropriate strategy for the company Zespri to sell the Kiwifruits in the target market of New Zealand (Skerrett, 2019). Moreover, it would be appropriate for the firm Zespri to satisfy the customers with high quality products by which the company can attain a competitive position. 

Distribution channels- The distribution channels must be developed by the authorities of the firm Zespri in an appropriate manner. With the help of proper distribution channels, the company Zespri will be able to distribute its products and services to maximum number of customers (SUSTAINABILITY, 2016). The distribution of products must be done in an appropriate manner throughout the market of New Zealand for attracting maximum customers.  

Suppliers- The suppliers are the most important element for the success of a business firm. It is the duty of the management of the firm Zespri to create a potential relationship with maximum number of suppliers for getting unique raw materials for the purpose of product development (Gabrielle Hansson, 2019). On that note, it can be said that the suppliers will help the company Zespri to develop its market position in New Zealand. 

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4. a. Sizing of the OMAN target market

It has been evident that most of the companies have performed the market research process through digitalisation system in order to target the customers in OMAN. As the population of the country Oman is near about 4 million, therefore, it would be suitable for the firm Zespri to target every age group of people as a target customer (Nasseri, 2018). By choosing every age group as a target customer, the company Zespri will be able to sell its kiwi fruit products within the OMAN market in an effective way. It has been observed that the current GDP rate of OMAN is more than $79.50 billion (Profile, 2019). Therefore, it would be suitable for the firm to expand its business in OMAN. By expanding the market in OMAN, the company will also be able to earn a huge amount of revenue as well from its business market (Zespri Report, 2018). The high GDP rate will also make it easier for the firm Zespri to choose its target customers in a wiser manner. Therefore, the company Zespri must perform the market research process through digitalisation system by which the target market can be identified in an easier manner.    
As the company Zespri has chosen every age group of OMAN population for selling the Kiwi fruit, therefore, the company will be able to generate a huge amount of revenue. In addition, the company Zespri must try to use the digital marketing process for promoting its products in the business market of OMAN (Skerrett, 2019). Moreover, the company must try to sell its products like green kiwifruit, organic kiwifruit, sweet green kiwifruit and gold kiwifruit throughout the OMAN market.

4. b. Identifying the area of customer preferences

It is very important for the marketing team of the company Zespri to focus on the preferences of the customers in order to identify their needs. The company Zespri can also try to use the User Interface technique in order to analyse the opinion of the OMAN customers towards their products and services (Zespri Report, 2018). Apart from the User Interface, the authorities of the firm can also try to use the communication and information method for collecting useful information from the OMAN market. Moreover, in order to collect the information about the company’s products in OMAN, the business authorities must try to use the survey procedure (Farouk, 2018). With the help of survey procedure, the authorities of the firm will be able to collect appropriate information about their products quality in the OMAN market. This strategy will further help the company to make brand awareness about the kiwi fruit among the target customers. Furthermore, the company Zespri will also be able to know that if the kiwi fruits would be acceptable to the potential customers of OMAN or not. In addition, the customer preferences area must be developed and analysed by the marketing department of the company Zespri in an appropriate manner. By identifying the needs of the customers through data collection method, the company will be able to export suitable kiwi fruit in the OMAN market. The company Zespri provides wide variety of kiwifruits to the customers like green, organic, sweet, sun gold and gold (Skerrett, 2019). Therefore, during the survey process, the company must provide a free sample of the kiwifruits to the OMAN customers. This will help the company to understand the taste and preferences of the target market in OMAN which will further help the company to choose a suitable kiwifruit for the OMAN market.  

5. Using cultural and symbolic marketing principles in the market entry process Cultural theory

The cultural marketing strategy mainly helps a business organisation to analyse the behaviour of the consumers through the process of cross culturalism (Morrison, 2017). The cultural marketing theory will also help the business of Zespri to adopt the culture of OMAN (Petersen, 2015). The cross cultural marketing theory mainly includes the cross cultural consumer behaviour, promotional strategies, product development, cross cultural management practice and others. The cultural theory will also help the company Zespri to provide the best quality of kiwifruit to the OMAN customers (Skerrett, 2019). As the culture of OMAN is considered to be one of the diversified cultures, therefore, it would be appropriate for the firm to target the all ethnic groups of the country. Moreover, the cross cultural marketing strategy will also offer the company Zespri a new and sophisticated approach to consider the challenges for doing business in OMAN. It has been identified that the exportation of kiwifruits would be appropriate for the company Zespri to maximise its sale process (Gabrielle Hansson, 2019). With the help of cultural theory, the company Zespri will also be able to analyse the behaviour of the OMAN people as well. This is one of the most important aspects for the company to sell its products in the OMAN market.  

Symbolic marketing theory

The symbolic marketing theory will mainly help the company Zespri to create awareness among the people of OMAN by developing a logo of kiwifruits. This will help the target market of OMAN to identify the Kiwifruits of Zespri in an appropriate way. In addition, the symbolic marketing will further help the company Zespri to advertise its potential kiwi fruits products in all over the country. With the help of symbolism, the company Zespri will also be able to share the message of the firm to the target customers (Dalziel, 2018). The symbolic marketing theory will also help the customers to identify the brands of the Kiwifruits of Zespri (Zespri Report, 2018). Therefore, it can be said that the symbolic marketing theory is one of the most appropriate theories for the company Zespri to market their products and services through different markets of OMAN. 

This is a Business report sample on zespri business Management

6. Two relevant market entry

Franchising- The franchising strategy will mainly help the company Zespri to obtain distribution from affiliated deals in the OMAN market. In the same context, the franchising strategy will also help the company Zespri to secure its financial outcome. Moreover, the franchising strategy must be developed and monitored by the business managers of Zespri to advertise the Kiwifruits products in all over the OMAN market (export, 2017). However, the franchising strategy has also some risks that can affect the organisation Zespri. The franchise risk mainly includes the reputational damage, joint employer liability, risks limitation and compliance issues (Zespri Report, 2018). In a similar setting, the diversifying methodology will likewise help the organization Zespri to verify its money related result. In addition, the diversifying system must be created and observed by the business chiefs of Zespri to publicize the Kiwifruits items in everywhere throughout the OMAN advertise. Notwithstanding, the diversifying procedure has likewise a few dangers that can influence the association Zespri. The establishment chance for the most part incorporates the reputational harm, joint boss obligation, and dangers restriction and consistence issues (Farouk, 2018). Thus, the franchising marketing strategy must be implemented within the organisation Zespri in such a manner by which the firm can attain a competitive advantage.  
Licensing- It is very important for the company Zespri to make proper license of their products by which the market entry process can be done in an effective way. The licensing strategy will further help the firm to legitimate its business process in the country OMAN. Moreover, the licensing strategy will also help the company Zespri to expand its business in all over the OMAN market. By creating the license of the Kiwifruits, the company Zespri will also be able to tie up with the foreign operations as well (SUSTAINABILITY, 2016). It is significant for the organization Zespri to make legitimate permit of their items by which the market passage procedure should be possible in a compelling manner. In a similar setting, the authorizing technique will further assistance the firm to genuine its business procedure in the nation OMAN. By making the permit of the Kiwifruits, the organization Zespri will likewise have the option to tie up with the outside tasks also.

7.  Internationalization theory

The Uppsala model of internationalisation theory mainly consists of four stages such as No regular export activities, export via agent, overseas subsidiary and overseas production (Castellões, 2019). 
No regular export activities- The irregular export activities can affect organisation Zespri to export the Kiwifruits in the market of Oman. Moreover, the irregular export activities will also make it difficult for the company to develop its own production in Oman. 
Export via agent- The Company Zespri can also try to export its Kiwifruits products in the Oman market through agents. In order to do so, the company need to hire an agent who will assist the company to export its potential products in the market of Oman (Farouk, 2018).
Overseas subsidiary- This theory will also help the management of Zespri to gather knowledge about the target market of OMAN by which the firm can become internationalise (Profile, 2019). As per this model, the company Zespri will also get different types of knowledge commitment for going international. The first one is the exportation of Kiwifruits from one market to another for the process of performing international business transaction. Moreover, the company Zespri will also be able to get its own subsidiary by following the Uppsala model of internationalisation theory. 
Overseas production- In the steps of internationalisation theory, the company Zespri will also be able to avail the services of international transaction as well which are less psychic distance. The psychic distance is included with different factors such as difference in culture, political systems and difference in language (Skerrett, 2019). Thus, by focusing on the factors of psychic distance, the company Zespri will be able to start the service of exporting kiwifruits in OMAN.
From the above steps, it can be said that the authorities of the firm Zespri must choose the Uppsala model of internationalisation in order to enter into the market of OMAN in a successful manner. The Uppsala model of internationalisation theory mainly includes the knowledge of commitment and market, decision making process while entering into the new market, development of foreign sales subsidiary and others (Gabrielle Hansson, 2019). Therefore, it is very important for the company Zespri to follow the stages of Uppsala internationalisation theory for successfully entering into the market of OMAN in an effective way. The second one is the experimental knowledge of OMAN market that the firm Zespri will get from its market expansion experience. Therefore, it can be said that the knowledge and commitment of the OMAN market can also get affected through the decision making process of the management of Zespri. It has been evident that the improper decision making process in the foreign market can affect the market entry process of Zespri. Moreover, the transaction system in the foreign market can also get affected through this process (Cwalina, 2018). 
In addition, the Uppsala internationalisation theory will help the company Zespri to develop certain steps towards the internationalisation business. Moreover, this theory also highlights that the firms which have no links with the foreign business transactions will get an opportunity to export its products in the foreign market through an agent or with the help of joint venture (Skerrett, 2019). Therefore, the company Zespri will be able to start its exportation of Kiwifruits through joint venture or through the agents in the OMAN with the help of Uppsala internationalisation theory.  According to this model, the organization Zespri will likewise get various sorts of learning duty for going global. The first is the exportation of Kiwifruits starting with one market then onto the next for the way toward performing global business exchange (Zespri Report, 2018). Then again, the subsequent one is the test information of OMAN showcase that the firm Zespri will get from its market extension experience.

8. Multi-domestic strategy on the basis of standardisation versus differentiation

The multi-domestic strategy mainly helps a business organisation to get maximum response of locals through the customisation of company’s marketing strategy and the offered products. In the same context, the multi-domestic strategy will also help the company Zespri to achieve maximum number of responses from the locals (Profile, 2019). It has been evident that the multi-domestic strategy will further help the company Zespri to adopt the advertisement process of OMAN in order to get maximum number of response of locals. This will help the company to use the approach of mass market. For making the multi domestic strategy successful, the company Zespri must try to invest a lot within the localities of OMAN target market in which the Kiwifruits will be marketed (Gabrielle Hansson, 2019). This strategy will also help the marketing department of Zespri to understand the culture of the target market into which the company will market the Kiwifruits. In a similar setting, the multi-household procedure will likewise help the assistance the organization Zespri to accomplish most extreme number of reactions from local people (Skerrett, 2019). The multi-domestic strategy will help the company Zespri to connect with the customers of OMAN as well. On that note, the company will be able to sell the Kiwifruits to the customers in a prominent manner. 
Elements of marketing mix on the basis of differentiation versus standardisation
Product 
The product that has been selected by the company Zespri is the all varieties of Kiwifruits (Profile, 2019). In addition, the wide varieties of Kiwifruits will also help the company to market the products in an effective way. The Kiwifruits must be distributed in such a manner by which the every people within the target market can get the details of the Zespri Kiwifruit (Skerrett, 2019). 
Price 
The price of the Kiwifruit must be set by the company Zespri in an appropriate manner so that the OMAN customers will prefer to buy it (Surdu, 2018). In addition, the cost leadership strategy can also be an effective way for the company Zespri to sell the different varieties of Kiwifruits to the target market of OMAN. 
Place 
The place of selling Kiwifruits must be selected in an appropriate manner by the company Zespri. In the same context, the preferences of target market of OMAN must be analysed in such a manner by which the Kiwifruits can be sold in an effective way (Profile, 2019). On that note, the company Zespri will be able to generate a huge amount of revenue by exporting the Kiwifruits in the OMAN market. 
Promotion 
The company Zespri has selected the digital media platforms in order to promote the Kiwifruits. As the market of OMAN is totally based on the digital process, therefore, the company Zespri has used the digital media platforms for advertising the different types of Kiwifruits.  

9. Evaluating the internal resources and capabilities

Tangible- The tangible resources of the company Zespri mainly include the warehouse, physical structure and others. In the same context, the company Zespri is located in all over the country New Zealand and provides high quality of Kiwifruits in all over the world (Petersen, 2015). The physical evidence of the company in OMAN can be beneficial for the firm to attract the customers. Moreover, the Kiwifruits like organic, green and yellow will also help the company Zespri to enhance its sales rate (Bush, 2018). However, there is some lack of tangible resources of the firm Zespri as well. The company do not have any kind of physical store in OMAN due to which the firm can face major issues in managing its business process. Furthermore, the lack of financial assets in OMAN can also affect the organisational position of Zespri. 
Intangible- The high brand reputation in New Zealand will help the company Zespri to develop a strong market position in OMAN (Farouk, 2018). In the same context, the performance of the organisation Zespri also comes under the intangible resources. Therefore, it is very important for the management of the firm Zespri to manage its intangible resources by which the company can attain a competitive position in OMAN (Skerrett, 2019). However, there is some lack of intangible resources in the company Zespri. As the company is new in OMAN, therefore, the authorities of Zespri will face some problems in developing its brand name. 
Human resources- The high skilled labours in the organisation Zespri are its strength. In addition, the human resource department of the company has also used some effective measures for hiring the new talent in the firm. On the other hand, due to lack of physical evidence in OMAN, the company will face some issues in hiring the employees (Zespri Report, 2018). 
b) Organisational capabilities
Business routines- The business routines of the company Zespri have developed some environmental strategies and policies in order to develop a strong market position in New Zealand (Morrison, 2017). With the help of smooth business process, the company has also maintained a positive environment in its working environment. 
Processes- The processes of the organisation Zespri have been maintained in such a manner by which the firm can develop a sustainable position in New Zealand. For the business market of New Zealand, the company Zespri has used innovative packaging system in order to attract the customers (Petersen, 2015). In the same way, the company Zespri can also use an innovative packaging system in order to attract the customers in Oman. 
Organisational culture- The positive organisational culture has helped the employees of the firm to develop their working capabilities in order to enhance its production. With the development of proper organisational culture, the company will be able to maintain a positive business environment in OMAN as well (Profile, 2019).  

 

This is a Business report sample on zespri business Management

10. Calculating Key cost and prediction for sales

Competitor’s data

 

Brand

Format

Price OMR

Price NZD($)

Domestic kiwi fruit

Green Kiwi fruit

Per kg

1.29

4.99

 

Organic kiwi fruit

Per kg

1.55

6

Imported cider kiwi fruit

Sun gold Kiwi fruit

Per kg

2.31

8.9

 

Gold Kiwi fruit

Per kg

2.02

7.8

Zespri price list in domestic market

 

Price OMR

Price NZD($)

Zespri Green Kiwi fruit

1.3

5

Zespri Organic kiwi fruit

1.87

7.2

Zespri Sungold Kiwi fruit

2.59

9.99

Zespri Gold Kiwi fruit

2.07

8

Cost and sales for the first three years

Income Statement

Notes

2020

2021

2022

Operating revenue

2(a)

18,499

88,996

98,996

Other revenue

2(b)

29,204

26,067

26,067

Operating expenses

3

64,738

43,128

43,128

Other net gains

5

57,389

30,976

30,976

Operating profit before taxation

 

40,354

82,911

82,911

Finance revenue

6(a)

6,592

5,275

5,275

Finance expense

6(b)

(1,236)

(1,111)

111

Net profit before taxation

 

145,710

107,075

107,075

Taxation expense

7(a)

(43,868)

(33,374)

3,374

Net profit after taxation

101,842

   

Earnings per share: basic and diluted

8

18,499

$0.61

 

 

Statement of Comprehensive Income

2020

2021

2022

$’000

$’000

$’000

Profit for the year

25,842

73,701

98,996

Total comprehensive income for the year

25,842

73,701

98,996

 

Conclusion 

 From the above study, it can be concluded that it is significant for the organization Zespri to make legitimate permit of their items by which the market section procedure should be possible in a viable manner. In a similar setting, the company has used the data collection procedure in order to collect relevant information for the market of New Zealand. It has been evident that the contenders can likewise attempt to build up another procedure of business for accomplishing the objectives and destinations. 

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 Zespri. (2018). Future Opportunities and Challenges. Retrieved July 20, 2019, from http://www.hortnz.co.nz: http://www.hortnz.co.nz/assets/2018-RSE-Conference/Presentations/10-00-Dave-Courtney-Zespri.pdf

 Zespri Report, A. (2018). SEASON. Retrieved July 20, 2019, from www.zespri.com: https://www.zespri.com/ZespriInvestorPublications/Annual-Report-2017-18.pdf

 zespri. (2019). Zespri in the Community. Retrieved from www.zespri.com: https://www.zespri.com/companyinformation/community

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