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Rizwan Sikandar 6149-FMS/BBA/F20
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14 views

Saffron Final

Uploaded by

Rizwan Sikandar 6149-FMS/BBA/F20
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 44

International Business and World Trade

Organization (WTO)

Group Presentation
Project: Export of Saffron from Pakistan to Spain

BBA – 43
Semester 7th
Batch F20
Presented By:
• Asma khattak 6224-FMS/BBA/F20

• Mahrukh Shahzad 6251-FMS/BBA/F20


• Ayesha Sadiqa 6223-FMS /BBA/F20

• Humna Iman 6268-FMS /BBA/F20 

• Ayman Ahmed 6235-FMS /BBA/F20

• Zanaib Tariq Abbasi 6264-FMS/BBA/F20


Presented To:
• Dr Hammeda Akhtar
Preface
The objective of this project is to get a detailed understanding of
International Business mechanism and its impact on individual businesses.
We will be able to form an overall picture of International Business and
specially the impact of World Trade Organization (WTO) and global events
on business organization. By explaining the environmental factors of export,
the export strategies, collaborative strategies, the legalities and
documentation for export and the supply chain for the export.
Table of Contents
• Product, Host Country, and Home Country

• Introductions

• Reason Of Selecting this Product (Saffron) for Export Business

• Reason Of Selecting of Host Country (Spain) for Export Business

• PESTLE Analysis of Host Country (Spain)

• PESTLE Analysis/ Metrics

• Financial Plan

• Marketing Plan
Table of Contents Continued…
• Logistics Plan

• Human Resource (Plan)Plan

• Benefits For Home and Host Country

• Conclusion

• Ques/Ans

• Thank You
Saffron
Host Country: Spain
Home Country: Pakistan
Introduction
We selected our product Saffron for export to
Spain and Pakistan is our home country. Our brand
name is Neguine, and the product name is Pakistani
Saffron.

As Saffron is the most expensive product and


pharmaceutical plant in the world, saffron has been
grown from ages, all over the world. In figure provided
below briefly explains saffron plant knows as Crocus
sativus, a corm survives for one season, producing via
this vegetative division up to ten "corm lets" that can
grow into new plants in the next season.

The compact corms are small brown globules that can


measure as large as five centimeters (2.0 in) in
diameter, have a flat base, and are shrouded in a dense
mat of parallel fibers; this coat is referred to as the
"corm tunic". Corms also bear vertical fibers, thin and
net-like, that grow up to 5 cm above the plant's neck.
History of Saffron in Pakistan
Historically the word saffron goes as
back as 10000 years, saffron is said to be
derived from the word “zarparan” ii in Dari
language which means that a flower its
stigma is valued the same as gold like
precious and expensive metal and this word
had been turned in to saffron later on. It is
said differently in many languages in Pashto
and Arabic it is pronounced as “Zaferan”, in
Farsi and Turkish it is pronounced as
“Zefrun”, in English Saffron, in Spanish
“Azafran” and French “Safrane”. Experts says
that saffron has long been grown in Greece,
Turkey, Pakistan, and Iran, and it has spread
from far north up to far east of India, China,
from West up to Spain.
History of Saffron in Pakistan Continued…
In 1998 some NGO’s established saffron
trials with local farmers in semi-arid
villages of Pakistan KPK district of Herat
province, by 2007 due to good results and
high returns more than 1300 farmers are
now growing saffron in this district, as a
result from 2002 the ministry of
Agriculture and some NGO’s began to
distribute saffron corms to farmers and
other saffron growers in the provinces of
Punjab, KPK,, and it is said to be tested and
grown in about 3 provinces throughout
Pakistan.
Reason Of Selecting this Product (Saffron) for
Export Business
• High Market Demand

• Culinary Industry

• Cultural Significance

• Economic Value

• Sustainable Farming

• Potential for Value Addition

• Export Incentives and Support

• Long Shelf Life


Reason Of Selecting of Host Country (Spain) for
Export Business
• Culinary Tradition

• Tourism and Gastronomy

• Health and Wellbeing

• Market Trends Global

• Economic Viability

• Export Opportunities
PESTLE Analysis of Host Country (Spain)
• Political Factors
• Taxation
• Fiscal Policy
• Free Trade disputes
• Antitrust and other anti-competition issues.

• Economic Factors
• Growth -GDP
• Interest Rates
• Employment Rates/Cost
• Inflation
• Exchange Rates
PESTLE Analysis of Host Country (Spain)
• Social Factors
• Demographic considerations
• Population Growth Rate
• Lifestyle trends
• Consumer beliefs
• Attitudes around working conditions.

• Technological Factors
• Automation/Digitalization
• Research and Development (R&D) Spending
• Technology infrastructure (like 5G, IoT, etc.)
• Cyber Security infrastructure
PESTLE Analysis of Host Country (Spain)
• Legal Factors
• Industry Regulation
• Licenses and permits required to operate.
• Employment and consumer protection laws
• Protection of IP (Intellectual Property)

• Environmental Factors
• Carbon footprint
• Climate change impacts
• Weather extreme events
• Stewardship of Natural ressources
PESTLE Analysis of Host Country (Spain)
• Legal Factors
• Industry Regulation
• Licenses and permits required to operate.
• Employment and consumer protection laws
• Protection of IP (Intellectual Property)

• Environmental Factors
PESTLE Analysis/ Metrics
PESTLE Analysis/ Metrics
PESTLE Analysis/ Metrics
Financial Plan
• Financing

It is a partnership has five shareholders of the business are contributing to


the business. All the partners are investing their own savings / money
about 70 percent of finance of the business and 30 percent are financing
with debt as taken a loan from the local bank for the business.
• Letter of Credit

As far as the letter of credit is concerned made an agreement with Pakistani


United Bank having well repute in international trade. It can help us in
finance operations with host country (Spain) bank. Acollaboration is made
with Banco Santander which delivers a strong presence in Spain and
globally
Financial Plan
• Quantity

A production of 100 kilograms which is contracted with Vera Partners Ltd


should be delivered in Spain. The above required unites incurs the following
cost as mentioned below in the dollar.
• Cost

The cost incurred by the following factors:


Financial Plan: Cost
Financial Plan
• Price

The average price of saffron in Pakistan varies depending on factors such as quality, quantity,
and demand. Generally, the price of saffron in the country ranges from $1,600 to $2,000 per
kilogram (kg). The per kilogram cost of the saffron is 1,214 dollars so the selling price has set to
be 1,700 dollars per kilogram.
• Net Profit
Sales = 170,000 – 121,400
= 48,600 dollars
Per Kilogram (kg) Profit = 48600/100 = 486/kg
Net Profit Margin = 28.6
Marketing Plan
The following marketing methods are being used to attract customers as it is a business
to business, business type as we are exporting to Spain so there the shipment should be
reached to the importer like say the company with which we made the contract.
• Social Media Marketing Plan

Acquiring social media platforms like Instagram and Facebook for visual content
and engagement. Through these platforms we do the advertising and marketing.
• Collaboration Plan

Partnering with Spanish chefs, restaurants, or food bloggers to promote saffron.


In our business concern as exporting saffron, we send a bid to the Vera Partners Ltd
company in Spain that we will offer you a
good quality product with an appropriate price and give discount incentives and
send them a sample for testing the product.
Marketing Plan
• Packaging Design Plan

Saffron is very light-sensitive and hygroscopic and


must therefore be well sealed and protected from
light during transport. The product is therefore
packaged in cans which are in turn packaged in
boxes. Sometimes saffron is packaged in corrugated
board cartons lined with aluminum. For packaging
we hired Chinese company Guangzhou Hemeixin
Packaging Technology Co., Ltd. to make 1000 boxes
for us at the rate of $0.18.
Marketing Plan
• Packaging Design Plan
Marketing Plan
• Promotions and Discounts
Plan
Offering promotions to incentivize
purchases and build loyalty. We
offer our customer to buy in bulks
and give 10% discount on
purchases if the quantity is more
than the 100 kg. And if they will be
loyal customers, we will give more
discount incentives to them.
Logistics Plan
Creating a logistics plan for exporting
saffron to Spain involves several key
components. Here's a breakdown of the
logistics plan:
Logistics Plan
• Transportation Strategy:

The mode of transportation (air, sea) based on cost, speed, and the nature of saffron.
The transportation should be done through local transport company like say the
Pakistani shipping and logistics company.
Logistics Plan
• Shipping Documentation:
Prepare necessary documents, including invoices, packing lists, certificates of origin, and
any specific documents required for saffron.
• Customs Compliance:
Custom Compliance comply with Spanish customs regulations, including tariffs and import
restrictions.
• Tracking and Monitoring:
Implementing the tracking systems to monitor saffron shipment in real-time, enabling better
visibility and problem resolution.
Road Map
Human Resource (HR) Plan
Exporting saffron to Spain involves considering various HR aspects to ensure a smooth and
successful operation. Here are key HR plans to consider:

Recruitment and Training Plan:


Identified and recruited personnel for roles related to
saffron production, packaging, distribution, and sales
in Spain. Developed training programs to ensure the
workforce is knowledgeable about saffron
quality standards, packaging requirements, and
cultural considerations.
Language Training:
If language differences exist, consider language training
to facilitate effective communication within the team
and with local stakeholders.
Human Resource (HR) Plan
Cross-Cultural HR Management:
Developed strategies for managing a diverse workforce that may include both local and
international employees. Promotes cross-cultural understanding to enhance collaboration
and teamwork.

Performance Management System:


Implement a performance management system that aligns with organizational goals and
provides regular feedback to employees.

Employee Feedback Mechanisms:


Established mechanisms by gathering One by one meeting with employees or by group wise
meeting with employees and sometimes interviewing the employees for getting feedback
from employees to address concerns and continuously improve HR practices.
Benefits For Home and Host Country

Benefits For Home Country

Economic Growth:
Saffron export can contribute significantly to Pakistan's economy by generating revenue
and providing employment opportunities in the saffron cultivation and processing
industries.
Diversification of Economy:
Expanding exports to include high-value products like saffron helps Pakistan diversify its
economy, reducing dependence on a narrow range of industries.
Foreign Exchange Earnings:
Exporting saffron to Spain allows Pakistan to earn foreign exchange, which can be
crucial for stabilizing the national currency and supporting economic stability.
Benefits For Home and Host Country
Improved Living Standards:
Increased economic activities in the saffron industry can positively impact the living
standards of the local population involved in saffron cultivation and processing.
International Reputation:
Establishing a reputation for producing high-quality saffron can enhance Pakistan's image
in the international market, potentially attracting more business opportunities and
partnerships.
Benefits For Home and Host Country

Benefits for Host Country

Access to High-Quality Saffron:


Pakistan is known for producing high-quality saffron. Importing saffron from Pakistan
allows Spain to access a premium product that can enhance the quality of Spanish culinary
and pharmaceutical products.
Diversification of Suppliers:
Spain can diversify its sources of saffron by importing from Pakistan, reducing
dependence on a single region or country. This diversification can mitigate risks related to
supply chain disruptions.
Benefits For Home and Host Country

Culinary and Pharmaceutical Industry Enhancement:


Spanish cuisine is renowned worldwide, and high-quality saffron can enhance the flavors of
Spanish dishes. Additionally, saffron is used in pharmaceuticals, and access to Pakistani
saffron can benefit the Spanish pharmaceutical industry.

Cultural Exchange:
Importing saffron from Pakistan can foster cultural exchange between the two countries,
creating opportunities for collaboration and understanding.

Market Expansion:
Spanish businesses involved in the distribution and retail of saffron can benefit from
expanding their product offerings with saffron from Pakistan, potentially reaching new
markets and consumer segments.
Conclusion

In conclusion, exporting saffron from Pakistan to Spain is a mutually


beneficial opportunity. Pakistan, a top saffron producer, can meet Spain's
high demand. For success, both nations should collaborate on supply chains,
quality standards, and market dynamics. This trade not only boosts
economies but also fosters cultural exchange and growth. To make this
export successful, it's important for both countries to work together on
things like transportation, meeting regulations, and understanding the
market. Investing in research and development will also help make the
saffron trade even better.
Thank You

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