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Biotech – New Infant Formula Division – Business Report

Biotech – New Infant Formula Division – Business Report

Thriving businesses today attribute their success to their ability to analyse external and internal environmental factors effectively. The internal environment influences the mission, leadership style, levels of communication, organisational structure, and training of employees. On the other hand, the external environment examines opportunities and threats that influence the success of a business (Section 5. Trends in Organization, 2016, p. 2). This report will analyse both types of environmental factors to Biotech and the Infant Formula manufacturing plants based on PESTEL, SWOT, and Porter's Five Forces Model. Also, it will discuss the goals and objectives the business is likely to set based on the analysis of the external and internal environments. Lastly, it will provide a competitive analysis of the company in their industry; this will help in setting strategies aimed at penetrating the new market and remaining relevant in the existing market (Porter’s Five Forces of Competitive Position Analysis, 2013).

PESTEL Analysis

Numerous factors internal and external factors have the potential to impact Biotech and the infant formula industry. In this section, the focus is on the external factors to Biotech and the Infant Formula division. The factors will include political, environmental, social, technological, economic, and legal considerations in the industry. A business that fails to analyse these factors beforehand will lose the competitive advantage to similar companies.


Political Factors

Political factors such as taxes, tariffs, stability are essential considerations when expanding into new territories. The current political stability in most parts of the world is advantageous to the success of any business. Political instability is a source of conflicts and war which endangers people's lives and the ability to grow a business. The Biotech Company is already established in regions that are politically stable. Expansion to Malaysia is ideal for businesses to continued exposure to positive growth and opportunities.

Malaysia’s political factors are beneficial to businesses due to their ROI and high profits in foreign investments (Doing business in Malaysia, n.d.). The country shows political stability, with favourable government policies. Moreover, the tax advantages give businesses the ability to take high-quality products and price them competitively (Doing business in Malaysia, n.d.).

Economic Factors

The economic factors, which include GDP, interest rates, and indicators of ongoing economic health, illuminate if a specific economy is a good match for an industry (Section 5. Current Challenges in Management, 2016, p. 4). The US which hosts the headquarters is one of the most developed economies in the world. This offers assurance that the company will not undergo losses due to changes in currency, interest rates, and recession crisis.

The ability to expand to other regions limits the risks of currency devaluations and low exchange rates associated with foreign markets. The business is well positioned to deal with local economic forces while operating under a branch while exporting their products to such regions. Infant Formula will benefit from the stable economy in Malaysia; the country has both positive local and foreign economic reputation.

Social Factors

The demand for natural and eco-friendly products has shown a steady increase for most regions thanks to the discovery of innumerable hazards associated with chemically manufactured products. The prevalence of diseases and other health problems due to unhealthy lifestyles has prompted many countries to set laws and regulations on standardisation of products in its market; similarly, the internal market is vigilant on the safety of products.

The success of a product depends on the attitudes of the consumers on the products (Section 5. Current Challenges in Management, 2016, p. 4). A product that is perceived to be safe will attract increased sales and revenue to the business while products considered unsafe is likely to damage the image of the product and company at large. Furthermore, the culture determines employment decisions and corporate social responsibility practices of an organisation in a given region.

Infant Formula has an advantage in operating the business in Malaysia because it seeks to employ people from the country. Malaysia has a well-educated, qualified, and affordable labour force that the companies seek to incorporate in its operations (Doing business in Malaysia, n.d.). Additionally, setting the division in Malaysia will foster its interactions with the local communities' culture and traditions; this is essential in market segmentation in the industry.

Technological Factors

The rapid advancement in technology has made many organisations embrace the opportunities the use of technology presents (Section 5. Current Challenges in Management, 2016, p. 4). Efficiency and effectiveness are a result of the use of technology in a business’s operations. Biotech and infant formula are required to adopt progressive technology in its operations to compete favourably in the industry. The growing need for conservation of the environment should present a challenge when it comes to prioritising research and innovation. Although, any organisation that ignores the technological aspect is doomed to fail.

Technology ensures proper monitoring, regulation, and analysis of the progress of the business. Communication among all stakeholders is fostered through the use of technology to help in decision making. Malaysia has a well-developed infrastructure and logistics network (Doing business in Malaysia, n.d.). Malaysia and all the branches of Biotech have systems that support technology like improved infrastructure and proper laws to allow for research on the use of technology.

Environmental Factors

The surrounding environment for a business affects its operations both externally or internally. Biotech deals in eco-friendly and natural products. The prevailing environmental conditions directly influence the manufacturing of these products. The company has its headquarters in New York, the US with several branches in other parts of the world. The US operations offer a limited supply of green products needed for the new division because of its focus on environmental protection.

On the other hand, Infant Formula's location in Malaysia provides an advantage towards the access of raw materials. Malaysia has strong environmental protection policies and places a high priority on environmental conservation activities. The country primarily utilises organic food and product, stemming from natural formulas (Suhaimee, Zurailhah, & Wahab, 2016).


Another consideration is geographical differences in weather and climate. These have been addressed by opening branches in several regions across the world. Biotech has offices in the US, Europe, Asia, Canada, and South and Central America which benefits the organisation in challenges associated with global weather changes. The companies are likely to survive in the industry due to their location and the prevailing weather conditions. Legal Factors

As mentioned previously, the prevailing political stability in most parts of the world is advantageous to the success of any business. The Biotech Company is established in regions that are politically stable; this has exposed the business to growth and expansion opportunities. Also, the political neutrality of the company makes it easy to survive political challenges that many businesses face across the world. Businesses are expected to avoid engaging in politics in a country; this limits political interference and influence.

Neutrality promotes the establishment of proper policies that encourage investments and operations of a business. Moreover, Malaysians have laws which protect investors, as well as their intellectual property. The country has developed policies that protect the environment; the National Biodiversity Strategy and Action plan among other laws will be beneficial to the success of the division. Biotech’s penetration in the infant formula market will be made more accessible as a result of the stability and favourable laws of Malaysia.

SWOT Analysis

The SWOT (strengths, weaknesses, opportunities, and threats) analysis is vital for distinguishing a company from other companies in the same industry. This tool enables a business to position itself in a trade while remaining competitive with other business. Biotech and the Infant Formula industry have unique features that are lacking in other companies. The other side of this is to look at certain factors which can compromise the growth within the industry. Establishing an honest reflection of a company is vital in setting the goals, mission, and vision of a company. Illustrated in Table 1 is the SWOT analysis for the BioTech, new Infant Formula division.

Table 1. SWOT Analysis

SWOT

Strengths

Weaknesses

Established Parent Company, Biotech

Timely Decision-Making

Organic and Eco-Friendly Product

Costs in technology and materials

New Director

New Product Development

Opportunities

Threats

Favourable Laws and Regulations

Technological Advancements

Expansion to New Market

New Business Environment

Availability of Qualified Workforce

Competition

Strengths

The Infant Formula’s mission toward organic and eco-friendly products will assist in allowing easy penetration in the Malaysian region. The country's people value organic products and foods extracted through natural formulas. The ability to offer products that are readily accepted will enable the division to respond to the customer's tastes and preferences from the start. The new division will face limited policies and regulations in Malaysia as it seeks to promote the use of organic and green products. Operating in a foreign country might be a challenge if the business contravenes the laws of the country on the manufacture, distribution, or use of certain products. The division intends to use green production methods; this will lend itself well with authorities in the country as they seek to realise conservation on the environment through various agencies like the National Biodiversity Strategy and Action plan.

The division will have a new director. Sloan will head the Infant Formula division in Malaysia. The new director will bring her expertise and experience into the division from serving in Europe as an Executive director; she has sufficient knowledge on the management of branches such as Infant Formula. Moreover, she is known for her inclusivity and employee recognition from her past roles. This is vital in promoting positive employee morale and passion while carrying out their tasks. Sloan's interests are attractive to the vision, philosophy, and mission of Biotech. The division seeks to achieve environmental conservation and products that are healthy for human and animal consumption. Her ability is strength to the division as it aims to explore a new market niche in Malaysia.

Lastly, the division has an established parent plant. Biotech has a long history in the provision of health and life products ranging from as early as the 1920s. The Infant Formula division will undoubtedly benefit from the experience of its parent plant based in New York, US and other branches in several parts of the world. Sloan can directly consult with Maximillian Barney, the Executive Director of the new Asia division. Other branch managers, from different branches, can share significant information and advice with both regarding the operations of the division. Secondly, it will be easier to run the organisation in an already established culture in the parent company than in new cultures. The director can adjust the division's culture based on the needs of the market and the parent company's culture. Also, the company will benefit from the technological elements of the parent plant. The division is likely to embrace tested and up to date technological aspect based on what exists in the market.

Weakness

Weakness, as it relates to internal causes and characteristics, can be ascribed to the increased cost towards innovative technology, timely decision making, and failed product testing. Technology plays a critical role in maintaining a competitive advantage. However, investing in technology, especially new technology can be time-consuming and costly. Another facet to technology is product research and development. Every product requires going through different stages of development. Each failed product is a hit to the business. The third weakness is timely decision making to the business operations.

Most parent companies make decisions for different divisions. The level of operational bureaucracies has the potential to compromise the ability of an individual division to enact changes and attain specific goals. Biotech's culture tendency to rely on the parent company culture is dangerous to the realisation of the mission and vision of the division. Conflicts or indecisions at the parent level in Biotech the systems of the division, therefore limiting the success of the division.

Also, Malaysia offers a qualified and affordable labour force compared to other options the company had in setting up the branch. However, the ability of the employees to use their expertise in conducting their duties is uncertain. Most companies are faced with the challenge of the inability of the employees to translate their knowledge and experience into efficient and effective production; skills are useless unless they help in realising the goals of the division.


Opportunities

The Infant Formula division will give a chance to explore a new market. Entry into a new market increases the customer base of a company. This results in increased sales and profits to the overall organisation. Biotech presence in Malaysia through the Infant Formula division will promote its competitive advantage over other businesses already in the country. New markets allow for the growth of a company by offering an opportunity to develop in a market that has growth potential (Section 6. Managing Change for Organizations, 2016).

The division is confident in the availability of qualified personnel in Malaysia. The success of an organisation depends on its ability to attract and retain potential employees with the relevant skills required to perform specified tasks (Section 6. Managing Change for Organizations, 2016). Organisations thrive when they can minimise the cost of production through affordable rates of employment while maximising on their employees' skills in service delivery. However, the division should be sensitive to the needs of the employees to foster passion and morale in performing the division's tasks. Organisations that ignore the needs of the employees experience high turnover and reduced productivity. Finding a balance between employee roles and needs is vital. Sloan has proven the ability to identify that in the Malaysian labour market.

Lastly, Malaysia is changing its policies and laws to reflect environmental conservation. Infant Formula Division's mission and goals align with the conservation efforts being proposed in the country. This opportunity will allow the division to benefit from government support and favourable business conditions. Countries tend to favour sectors that address the vision of the country as opposed to sectors that are indifferent. Laws and regulations are essential to the establishment and growth of any foreign company. Finding a country that supports your vision is a lifetime opportunity for a company seeking global positioning.

Threats

Rapid technological advancement is the primary challenge for an organisation. Established companies have access to resources that support new technologies while developing companies may find it hard to adjust to the new technological demands in the industry. Infant Division is a developing branch that lacks the resources to support the latest technological trends in the industry. As a result, this might delay growth potential and the ability to meet customer demands. Besides, some technological trends are good but unnecessary.

Secondly, unfamiliarity with the business environment is a challenge to many businesses who seek to explore new markets. Infant Formula lacks real-time experience in Malaysia. Although research provides insight, it still is not quite the same as first-hand experience and data. The division should be prepared for new cultures, climate, laws and regulations, market trends and customer behaviour. These factors are likely to slow the growth of any company in a new environment. However, allowing inclusivity in decision making will offer the division chance to mitigate this threat. Businesses that interact openly with new environments are likely to succeed as opposed to those that are preservative of their home cultures and traditions.

The Infant Formula division will be exposed to competition from established businesses in Malaysia offering similar products. Just like the parent plant, Biotech; it should employ innovative strategies to gain customers. The division should provide quality and a diverse range of products than its competitors. Alternatively, the reduction of prices and costs of production may offer a good market penetration strategy to the division. However, this attracts lower revenues and profits which have a negative impact on the growth of the company. The division should embrace systematic strategies that will offer a balance between customer satisfaction and the development needs of the division.


Porter’s Five Forces Analysis

The model offers an assessment of the competitive strength and position of an organisation. (Porter's Five Forces of Competitive Position Analysis, 2013). The forces that influence the attractiveness and intensity of the market are the power of the supplier and buyer, competitive rivalry, the threat of substitution and new entry. (Porter's Five Forces of Competitive Position Analysis, 2013) These forces are vital in determining the current position of the organisation and its ability to grow in the industry. First, the Infant Formula is likely to face the challenge of unpredictable changes in prices of green products and labour in Malaysia.

Supplier Power

Increase in demand due to the entry of the division in the market at a constant supply of raw materials might increase the cost of raw materials in the industry. The business should be prepared to adjust its operations to limit cases of inability to break even in the market. The high cost of raw material increases the cost of production which eventually results in high prices of the products. The Infant Formula should combine factors that will be able to respond to such uncertainties in the market. This offers an opportunity for the business to leverage the competitors' ability to adjust to the changes.

Buyer Power

The buyer is the most important person in an organisation. Consumers determine the success of companies by influencing the image and sales volumes of the companies through their purchase decisions. Availability of alternative products is advantageous to the consumers who are price sensitive as they seek to maximise the offer of a product. Infant Formula Division should offer quality products that meet all the needs of the customers at friendly prices to remain competitive in the industry. Buyer will demand value at lower prices; however, setting too low prices might change the perception of the products in the market as poor quality. It is vital to offer prices that will attract and retain customers while limiting competitors' penetration in the market

Competitive Rivalry Infant Formula Division should prepare for the rivalry with existing producers over resources, prices, and market share. This is not new to companies offering undifferentiated products to the same market. The competition can be mitigated if the division will be able to brand its products in a quality way that attracts customers and fosters loyalty. The division is tasked to convince the market that they have unique products at friendly prices in the market. Besides, joining manufactures unions ensures the rivalry does not inconvenience the producers due to the high cost of production and low pricing; market rivalry needs to benefit all the stakeholders in the industry.
Threat of Substitution

Customers are sensitive to any changes in prices. Availability of substitutes prompts the customers to switch to products that offer the same utility at lower prices. This concept denies the producer control over the market. Infant Formula division should not hesitate to increase the product presence through marketing and positioning to ensure customers associates their products with quality and value despite the existence of similar products. Also, offering a range of products convinces a customer to purchase a different product but from the same company; this will benefit the division as it seeks to penetrate the market in Malaysia.

Threat of New Entry

The entry of Infant Formula is a threat to the existing businesses in the industry. This might rupture most of them to alter their operations to disadvantage the new entrants. Also, favourable terms of entry and laws are likely to prompt other companies to start a business in Malaysia; this might lower the profitability of green products in the region. The division should monitor new entries strategies as it seeks to penetrate the market; it is hard to establish a business in the same industry within the same time. Infant Formula should set high standards that will turn away other companies seeking to enter the green energy industry in Malaysia.

Goals and Objectives

The Infant Formula Division should focus on realising SMART goals (Section 8. Planning Tools, 2016, p. 1) based on the analysis of external and internal factors likely to affect the division in Malaysia. The growth of a company relies on its short term and long term goals. The short term goals help in monitoring the progress of business and enhance the realisation of long term goals (Section 3. Internal Analysis Inputs to Strategy, 2016, p. 2). The Infant Formula Division should focus on brand awareness, appreciation of employees, sustainable provisions, and revenue generation.

Infant Formula Division is relatively new to the market in Malaysia. The division faces stiff competition from already established businesses in the area. Creating brand awareness will ensure the company realises its growth potential in the short-term and stability in the long-term. First, the production of quality and standard products makes the customers associate the brand with quality. This promotes increased sales, customer loyalty, positive feedback, referrals, and repeat purchases (Department of Industry, 2019). All of these factors will result in an active market penetration strategy. Secondly, the marketing of any product offers vital information that might propel a customer to buy a product. Online marketing, use of billboards, salespersons, and other channels should be combined to ensure the customer's access information about products. Lastly, the positioning of products is essential to increase the sales of a product; products should be availed through displays, online purchase orders, use of retail stores, and other channels that ensure a customer can interact with a product efficiently.

The business mission and vision are achieved through their human resources and workforce. Employees will be ready to offer the best input and ideas if they are confident that the organisation recognises their efforts. The "winner takes all" concept can be detrimental to the success of organisations. Infant Formula division can realise this by proper recruitment practices. As the division seeks to identify potential employees, it should maintain competency and fairness in all its selection process. This creates confidence amongst the employees selected and satisfaction among those who did not. Also, employees should be rewarded for exemplary performance through recognition, salary increment, or promotion. Recognition motivates the employees to work hard towards the organisational vision and mission. Moreover, inclusivity in decision making is vital in creating a united focus in an organisation; this eases operations in the organisation.

The Infant Formula division has an opportunity to expand its line of products in Malaysia. The country’s support of eco-friendly and conservation product campaigns will assist in the company expansion into sustainable provisions. First, the business should ensure their products meet safety standards; this reduces cases of customer complaints and damage to brand image. Secondly, prompt response to customer feedback is vital in solving the defects on a product while improving on the product. This initiative will keep customers positive about all the line of products from the division. Thirdly, monitoring the development of competitors is vital in mitigating the mistakes in the industry; this will ensure that the division's products remain effective in the market.

Many people argue that businesses should not be centred on profit maximisation, but the satisfaction of customer needs. However, despite how you look at it, revenue is vital to the growth of an organisation. Through satisfaction of customer needs, a business realises increased sales that result in revenue. Also, constant research and innovation will ensure that the division remains above other competitors by meeting the diverse needs of the customers at lower costs to maximise the profits. Finally, re-investing the profit is essential in ensuring a business can expand and meet all the expectations and demands in the industry. Failure to invest is planning to fail.

Competitive Analysis

Biotech already faces stiff competition when it comes to their current product offerings. The infant formula industry is even more competitive, with already established infant formula sellers such as Enfamil, Gerber, and Similac. The organic infant formula industry has seen consistent growth and popularity. As of 2016, the value of natural baby formula was listed $6.5 billion (Statista, 2017) and is expected to reach $11 billion by 2023 (Wood, 2017). Mead Johnson Nutrition (Enfamil), Abbott Nutrition (Similac), and Hain Celestial Group (Earths Best) are three major competitors.

Each of the three companies has a competitive advantage over Biotech due to the fact they are already established in the market, two are cost leaders, and have a powerful brand (Section 2. External Inputs to Strategy, 2016, p. 2). The organisation will benefit more by focusing on one new product development at a time, instead of attempting to develop multiple products. The downside is that competitors can respond faster to customer demands and expectations resulting in the weakening of Biotech's customer base. However, the competitor’s greatest weakness is in their inability or access to the use of eco-friendly raw materials. Operating one line of products might deny a company the ability to maximise the use of resources at its disposal; this results in wastages and the high cost of production.

Biotech should seek to balance all the needs of all the lines of production. Decentralising product decisions will help the responsible divisions to own the products, therefore, offer the best (Section 4. Creating Strategy: Common Approaches, 2016, p. 6). Also, branding quality products across all the lines give Biotech a competitive advantage in the industry since it will be associated with efficiency and quality. Biotech has a positive outlook for the competition in the industry.

The Biotech Health and Life Products goal is to open a new organic infant formula division and manufacturing plant. The site for the new division is Malaysia, due to their well-established environmental protection law, efficient transport infrastructure, and secures distribution of raw materials and final products (Doing business in Malaysia, n.d.). Besides, the Malaysians have an educated and knowledgeable labour force. The first product to be launched will be grass-fed cow milk because it naturally contains the essential components found in breast milk.

Goals unto themselves do not ensure the success of a business. The organizational structure and culture play a role in the effectiveness of executing goals and strategic planning. Appropriate planning and communication are critical factors to the organization structure and culture of any business. All of these elements are crucial steps for establishing consistency and clarity across departments. Biotech is no exception to the fact that the organizational structure must be designed based on effective relationships, planning, and communication.

Description of the Organizational Structure and Culture
Organizational Structure

The organization structure is the bones or framework of a business (John, n.d.). Biotech Health and Life Products have a geographical division structure. Nonetheless, every division has its functional structure with sales and production at the hub. Research and development, human resource, information technology, and finance have a small staff in every division whose main job is to liaison with the company headquarters for the implementation of the decision they make (Trends in Organization, 2016). Above all the divisions is the president and chief executive officer Maximilian Barley and at headquarters is the corporate research and development, human resource, information technology, and finance divisions.

Organizational Chart

Various factors inform the construction of the above organizational chart. One element is that there is a new division (infant formula) to be opened in Malaysia. Therefore, it needs a new manager to take the management of this plant. However, this manager must be reporting to an executive director who must then report to the CEO and the CEO to report to the President. Sloan’s primary role and responsibilities will be managerial. He will lead the different department manager of the new infant plant, as illustrated by the decentralized structure chart above. Sloan’s prior experience, skills, and knowledge amassed during his tenure as an Executive Director of the firm’s branch in Europe will help launch the new division in Malaysia. He will oversee green production methods, foster innovative product development, and promote a productive workforce. It will be essential to incorporate eco-friendly product to align with the businesses overall mission statement “To meet customers’ health needs, in a natural way, while protecting the planet.

The advantage of a decentralized organizational structure is information flows up from lower-level managers to executive level managers (Organizational Structure: Trends in Organizations, 2016). However, it is essential to incorporate robust planning strategies and a transparent common mission before empowering your team. This can be accomplished by establishing a bureaucracy based on a hierarchy of authority and system of rules (Defining "Organization": Management's Role, 2016). A hierarchy of authority will delineate what level of authority and decision making abilities are granted to each department manager. The system of rules will outline the administrative process and procedures. Management will be forced to plan systematically and, in turn, accomplish consistent objectives across multiple departments. The benefit will be in the reduction of various departments working at cross purposes.

At the leading part, we have the President. The President is the overall leader of the Company who must ensure that every division including this newly created one aligns to the mission, vision and the philosophy of the Company. The President is thus required to ensure that the new infant formula plant produces green products.

The second in command is the CEO. The position of the CEO is so critical in this organization. It is the CEO who gets the desired information from the Executive Director of the New Division (Infant Formula) and brief the President for actions to be taken. Also, the CEO is responsible for coming up with policies and makes a follow up that the division implements them. Also, the CEO will be able to encourage the people below him to ensure that the mission, vision, and philosophy of the organization are met.

The third in command is the Executive Director of Asia division who will oversee the operations of the new plant. This position is critical to the achievement of the goals of the firm to go green in Malaysia. This is the person who has the mantle and who will be on the ground to ensure that division is successful.

The fourth in command is the operations manager of the Infant Formula in Malaysia. This person will be critical for the ongoing success of this strategic business unit. This person will need the knowledge and skills required to go green. Moreover, they are the one with the correct leadership approach required of being considerate and inclusive, which is essential to allow employees to feel the sense of belonging and give their all in this plant to become more innovative.

Lastly, the local testing position is of great significance for this plant. The main aim or goal of this plant is to produce green products. This will be pure products that are harmless to human and animals. In short, the products must be environmentally friendly. Thus, the plant will only know if their products are safe to the environment through testing. In essence, the position will be the one to give a green light for the products to be distributed. This means that without this position, the firm will not be able to evaluate their products and to check if they conform to the mission, vision, and philosophy of being green products.

Organizational Culture

Organization culture is defined as the workforce’s values, mentality, and ethics (John, n. D) within an organization. Depending on leadership, the culture can be guided to a positive culture and employee behavior (Section 1. Defining Organizational Culture, 2016). Edgar Schein's model states artefacts, values, and assumptions as the three main components to an organization’s culture (Section 1. Why Study Organizational Theory?, 2016). The visual appearance (i.e. dress code), company goals, and unspoken standards.

Biotech is a family-owned firm, and the family leaders remain committed to keeping the family history as a symbol for this company. The family cultural connection is believed to provide desired support for a collaborative decision-making environment. In addition to the family-owned image, the goal is to align Biotech’s current company culture with their vision statement “To focus its effort in meeting customer needs with the development of products that are healthy and natural but at the same time safeguarding our environment.” The way to accomplish this is to integrate the individual team cultures with the broader business structure by creating strategic business units (Common Organizational Structures, 2016). This will ultimately drive the type of employees that are hired and the management styles.

Culture Complexities

The main complexities are that the firm is family-owned and hence the family has a say in the management and leadership. It is, therefore, difficult to make decisions in this organization without taking into consideration what the family members want. Also, as has been observed, the family is less cohesive, and this might make it hard for them to agree on such decisions that will either break or make the company (Defining Organizational Culture, 2016).

Other cultural complexities to take into consideration are the local etiquette and customs of the Malaysians. It is essential to incorporate the Malaysian customs and environmental standards into the standard operating procedures and employment practices. The new director must consider Malaysian culture for the business to succeed. Malaysia has many cultures because of being inhabited by individuals from diverse regions of the globe who may have visited for education, business and tourism purposes (APIYCNA. n.d). Thus, when hiring, the firm must consider having a diverse workforce bringing in representativeness from all ethnic groups.

The director has to be aware of the cultural values of Malaysia before transferring staff to the new plant. The etiquette and protocols to be followed must be adhered to when greeting and meeting in business fora (Communicaid, 2009). The entire plant workforce must value respect which is critical in business meetings in this nation, and hence the manager and director must always introduce and acknowledge the significant persons first because it is a sign of respect (Communicaid, 2009).

Also, the manager must ensure that the workforce maintains harmonious associations when communicating in Malaysia. They must adopt much of non-verbal communication including body language and voice tone to succeed (Communicaid, 2009). They must observe silence during topic of discussion change since it shows enough time allocation thus clear thought being provided. Laughter must be condoned in Malaysia since it helps in relaxation when people are uneasy rather than showing anger.

Use of Local Nationals

Establishing territorial depart mentation will assist with adjusting to local laws, customs, as well as customer needs. Biotech should have a mixture of both local citizens and employees to help drive the success of this project. The employees already have the desired experience on how the firm is operated and are already used to its culture, and this will be a plus if they are transferred to Malaysia and then mixed with locals. In this case, the employees will be used to give more induction to the local on what is needed and hence they will take less time to familiarize themselves with the Company. However, the cultural complexities will exist since the transferred employees will not know the culture of the Malaysian local and vice versa. This is why the local nationals must be hired since Malaysia has a sophisticated culture because of diverse people from many backgrounds. Thus, a business will succeed and operate here if the manager utilizes local personnel to help run the business.

Malaysian business culture stays diverse, and hence it would be useful for the manager to get assistance from local leaders. These local nationals remain aware of what is expected from foreign firms; thus they will direct the manager and director. Also, the local's personnel will help enlighten the transferred employees, director, and manager on how the business is operated in Malaysia, and slowly, they will cope with Malaysian culture thus can begin to source personnel from other nations (Mastor, Jin & Cooper, 2000). With time and working as a diverse cultural team, the workforce will get to understand how things work, and they will form a capable group. This will boost the image of the company since it will be seen as a diverse workforce with local nationals feeling part and parcel of the firm.

Breakdown of Products and Services Release of Products

The first product that Biotech will release in the first launch of the new division will be grass-fed cow milk. The firm will do this an imitation of the breast milk. Thus, it will seek to have the benefits of breast milk including naturally occurring protein, vitamins, minerals and carbohydrates in the grass-fed cow milk. Thus, the grass-fed cow milk will be the best product to be selected since it replicates the nutrients babies would characteristically get from the traditional breast milk as mentioned above. Thus, the Company will seek to launch this grass-fed cow milk. This product is healthier and contains higher natural occurring protein, calcium, and vitamin D, and hence fits the green product description which was the main aim in this project.

Alignment of Products to Mission

The production of the grass-fed cow milk highly aligns with the Biotech’s mission in terms of being sustainable, green and human-friendly. In terms of sustainability, the cost of producing this product stays lower. Hence, its production will be sustainable even in the long run because the firm will only need less amount to, and yet it will have more sales as people will like it because it replicates breast milk hence has all the benefits of breast milk including natural protein, calcium and vitamin D (Anand & Koshy, 2017).

In terms of green, the grass-fed cow milk is a green product because studies have shown that grass-fed cow milk is healthier and contains higher natural occurring protein, calcium, and vitamin D (Anand & Koshy, 2017). Indeed, organs of the infants are yet to develop fully, and it is necessary for babies to consume formula with decreased body fat. It is true that reduced fat is a significant component of grass-fed cow milk. It contains omega-3 fats which have led to parents seeking and providing this kind of milk to their infants for healthy growth in their infants (Bonaventure & Umberger, 2012).

In terms of human friendliness, grass-fed cow milk production is friendly to the human since it is using natural products without using chemicals. This is why it has higher levels of fatty acids and lower omega-6, blood sugar regulation, and conjugated linoleic acid. These are all essential for infant health and growth (Anand & Koshy, 2017).


Communication Plan

Effective communication translates to clear verbal and non-verbal messages (Improving Communication Effectiveness, 2016) to your workforce and consumers. Organizational transparency sends a non-verbal message of openness and accessibility (Improving Communication Effectiveness, 2016). This will be important when it comes to Biotech's message of an eco-friendly business and organic product lines.


Biotech intends to communicate unidirectional messages using technology such as email, social media, and their website. To do this, Biotech will create a message to reflect the benefits of their eco-friendly production and organic products. Before creating the message, it is essential to identify the key audience, establish a timeline, and the way to evaluate plan effectiveness.

Result and Purpose: The production of grass-fed cow milk infant formula will help parents looking for infant formula that mirrors natural breast milk. The infants will benefit because they will have naturally occurring vitamin D, Calcium and Protein just as their mother’s milk. Also, the omega-3 contained in this product will be a plus to the infants’ healthy growth. The starting point would be a press release explaining the new product and how it aligns with the core culture.

Message: To produce an all-natural baby-friendly, a green and sustainable product of infant formula. By using, grass-fed cow milk produced and launched in Malaysia we will able to give our consumers precisely that.

Key Audience: The key audience is parents, especially mothers who are looking for an organic alternative to give their infants.

Media channels: Biotech Website, Television, Social Sites, Email

Timeline: The message will be posted in our Biotech Websites and Social media pages that specialise in baby products. The first month will focus on the launch of the new product and product facts. Each subsequent month will include the new product but with additional facts parents, with infants, should aware of. Weekly email and television advertisements will be sent and aired to ensure you are reaching all avenues of communication. To avoid redundancy, different pertinent facts will be addressed in the weekly advertisement and emails.

Effectiveness: At three-month intervals, review data analytics to analyses trends over time. Trend charts are helpful in metric analysis and effective marketing. It can compare which channel is most effective in communicating the message and identifying consumer needs.
















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