LAMBTON COLLEGE OF APPLIED ARTS AND

TECHNOLOGY
INT-113
FEASIBILITY OF INTERNATIONAL TRADE
GUIDELINES FOR ANALYSIS AND RECOMMENDATIONS
Canadian Tire Corporation Limited
1. Careful research and analysis- In order to start a new business or expand it, certain
amount of risk is involved. But when you take your business to other country,
such investment is riskier. So, careful analysis is needed to show what amount of
risk Is involved and how it can be overcome. Appropriate research and analysis
are not only helpful in establishing the business rather it helps in sustainability of
the business. When you expand your business at international level it involves
huge cost. So, in this scenario, merely setting up a venture is not the ultimate
target but its sustainability certainly is. In this competitive era, business can only
sustain in market if-

 They offer products at reasonable price.

 They don’t use sub-standard material.
 They offer some unique products.
 They carry good reputation in the market.

How proper research and analysis helps in sustainability of business?

1) For any business to sustain it needs profitability and for profitability cost
of production should be minimized. Proper research analysis helps
business in advance to determine from where they can get their raw
materials from.

2) It helps in getting competitive labor at affordable prices. Any and every

business needs labor for their business to grow. When doing research
company should know in advance that what amount of labor is required
and from which source the labor would be hired. Labor can be hired by
 giving advertisement in newspapers, advertisements in social media,
getting them through agencies. Having competitive labor at right prices
will help business to sustain.

3) Equipment’s are the most essential assets for the business. When the
company operates in other country it is advisable to acquire equipment’s
from the same country since cost of transportation of equipment’s are
very high. While doing research it is very crucial to determine that from
where the equipment’s can be bought and their cost.

4) Another important factor is time. While conducting a research they

should also determine that how much time will it take for business to
reach its break even. Break even is the point where business is able to
cover all its expenses out of sales. For instance, if they determine that it
will take 6 months for business to reach its break even, then the company
should have funds for up to that time to cover its expense. It could be
disastrous if the company does not have funds to cover expenses, that is
why careful research is very crucial in determining the exact break-even
time.

2. Risk optimization tools- Risk optimization involves reducing the severity of the
loss or the likelihood of the loss from occurring. Risk optimization is when an
organization understand its opportunities and its threats and its business strategy
to take on the correct actions.

Four main types of business risk are-

 Strategic Risk- This type of risk is from competitor entering the
market.
 Compliance and Regulatory Risk- This type of risk arises when new
rules or legislations are passed by the government.
 Financial Risk- This type of risk is mainly concerned with interest rate
rise on your business loan.
 Operational Risk- For instance breakdown or theft of key equipment.
Risk Reduction Process-
Identify issues and set context- In order to overcome the risk, the first
and foremost step is identify the type of risk which business is going to
face. It can be market risks, natural hazards, operational issues etc.
Measure probability and impact- After the risk has been identified,
they must be evaluated in terms of the likelihood that they will occur
and the impact on the events if the actually took place.
Rank potential risk- We then have to rank the risks on the basis of
damage they can cause to the business.
 Develop options- Risk can either be avoided, reduced, transferred or
retented.
Selecting a strategy- To avoid or overcome the risk appropriate
strategy should be selected. Cost-benefit analysis and financial
considerations play an important role here.
Implement the pan and its strategies- Identify the best plan to authorize
changes. All the individuals should be informed about their
responsibilities for carrying out the task.
Monitor, evaluate and adjust- Performance measures should be used to
track ongoing progress. If needed update plans and evaluate changes.

3. Cost benefit Analysis- It is a process by which organizations can analyze

decisions, systems or projects, or determine a value for intangibles.
4. Implementation strategies- It is a technique that provides a window to the business
for its sustainability. It is often said that bigger the market size bigger the
problems. Since, this research is for CTC entering morocco market, we all know
that market size of morocco is very diverse. morocco is also known for tourist
spots, that means all kind of people will enter that market, so the company should
be competent enough to serve people of all communities. As far as market
segment is concerned it was already cleared in research brief that this company
will first open its outlets in metropolitan cities of Morocco. The most positive
point for this company is that it contained that goods and services which are
consumed or used throughout the year. There is no recession in such kind of
business, instead in difficult times sales of such business increase incredibly, for
instance during COVID-19 when all the business was struggling, the sale of
grocery stores raise by 10 times. This show that this business has great potential
and can-do wonders if properly managed.
Every business face competition in some or the other way. Especially when it
comes to food industry or grocery line the competition is even vast. After
conducting a research in Morocco market, the surveyors came to know that
biggest competitor of Loblaw’s in Morocco will be Giant. This company was
founded, since this company is local it has got affection of residents. Will the
residents accept international company over their domestic company is a big
question? In order to be favorites of residents first company has to know what its
competitor is offering and at what price. To get one step ahead of competitors the
company initially has to lower its profit margin and provide great service to its
customer. It is rightly said that first impression is the last impression. The
company also has to serve its customer in very professional way and offer those
products which are not offered by its competitors. Since, it has been decided that
the company will be initially opening its outlet in main cities, so they have to
make sure that the quality of goods is never compromised because food industry is
very sensitive. If someone fell ill because of low quality of food then the image of
the company will be spoiled moreover they can be liable for penalties.

Target marketing means to aim at particular group of customers. But in grocery

store are target should be to attract all types of customers. To attract kids’ things
like soft toys, candies and chocolates can be kept. In country like Morocco if
business is able to attract tourist that will be a great achievement. For the service
guys who have less time for cooking, for them ready to eat stuff can be added.
For any business to establish, sustain and succeed 4P’s should always be kept in
the mind. Combination of these 4P’s is know as marketing mix. How can these
4P’s be of use to CTC in setting up the business in Morocco?
 I. Product- The main weapon for any business is its product which it is
selling. Though Loblaws has many products to offer since it is an old
company and knows how to serve the market, but still when you head
toward other country it becomes very crucial to make products according
to taste of local residents. For example, McDonald’s usually sell chicken
burger, but when it went to India, they launched burgers according to taste
of Indians and today their Mc aloo tikki burger is the hot selling product.

II. Price- It is often said that product should be value for money. To have foot
in the market company has to offer affordable prices or maybe initially
they have to lower their profitability and offer prices lower than their
 competitors. To ensure that the company is running in profits with lower
prices, then the cost of production should be minimized.

III. Place- To attract people, place where you are doing business is very
important. That is the reason why our company will open its outlet in
metro cities, so that they can attract large number of customers. Before
starting a business, company should also decide the place for their
warehouse.

IV. Promotion- No business can attract customers or make increment in sales

without promotion of products or brand. Since our company will be hitting
Malaysian market for the very first time promotion will play a key role in
establishment of business. Some example of promotions that the company
can undertake is giving promo codes to the customers who do shopping up
to certain amount, giving samples of the new products to the customer for
free.

5. Priorities drawing strength and opportunity- Every company has its own strength
and opportunities. In research brief it was figured out that market of Morocco is
complex and people over there brand oriented. Having strong brand name is one
of the strengths of the Loblaw’s. Though this company will be new for Morocco
peoples but it is Canadas largest food distributor, that means company has lot of
experience in serving people. In its home country its annual sale is over $32
billion.

This company has lot of potential in it and it will provide amazing employment
opportunities for Morcco workforce. This company will also help residents in
saving ample of their time by offering them platform of online sales. This
company is also known as growing its discount segment and their target in
Morocco will be to become low-price leader. It also provides lot of employment
opportunities for the students by offering them part-time jobs. Loblaws always
encourage young employees. After its set-up in Morocco company will also target
to enter new geographical markets and that day is not far when CTC will be a
global brand.

THANK YOU JAISON SIR.

Regards
Honey Gandhi (Your Biggest Fan ever.)
Sabdeep Kaur