For my project, I choose as a product " Normal water Buffola Mozzarella Cheese". I plan to import water buffola mozarella cheese from Italy to UK. The purpose of this task is to developing purchasing stratategies regarding to market evaluation, PESTLE analysis, resource string factors, legal factors, potential hazards and benefits.
First I'll give brief information about mozarella mozzarella cheese and after that I will begin to design my plan. The planning process start with marketing plan and it persists with PESTLE evaluation such as political, environmental, social, technical, legal and economic factors that influences international purchasing. Later I'll continue with resource chain strategies with cost evaluation and in final part I'll show the potential hazards and benefits associated with bringing normal water bufola mozzarella cheese from Italy to UK. And finally I will finish my task with the final outcome part.
Mozzarella is one of the very sensitive cheese that it can be delicate and quick melting. And it is usually stored in a water and refrigerated in its normal water. One of the sort of mozzarella cheese is made from water buffola dairy. This milk is different than the cow's milk and these animals who may have buffola milk are herded in only few countries, primarly Italy. Mozzarella is a delicate cheese, designed to be ingested fresh. Preferably, mozzarella should be ingested within time of manufacture, and will style the best if eaten within three times. It really is unique Italian cheese. I choose as a country Italy because the location of origin water mozzeralla mozzarella cheese is Italy. Also the interactions between Italy and UK is good.
I decide to import drinking water buffola mozzarella parmesan cheese from Italy to UK. Before starting to start out this job, I have to search market and find out some signs. But I want to describe this part undetailly because my actual part is business research. But searching the market is the initial stage of purchasing of goods. In marketing part, I wish to analyse marketing plan. This consists of customer and competition evaluation. In customer examination, I have to look "market size" so it shows the number of customers and value of industry with the statistics. Then, I wish to look " customer segmentation" with dividing different communities predicated on common characteristics. The UK's mozzarella cheese market size is big and the number of sales of cheese product is high. The amount of society is high. There are lots of customers and it is an oppurtunity for my decision. But the most big challange is opponents. My second search is "competitor analysis". Within this part, I have to look market show and the characteristics of competition analysis. There are lots of international companies to import drinking water buffola mozzarella parmesan cheese to UK. But inside the opponents, I have to gain some competitive advantages.
In UK, consumers answer well to advertising and they'll buy products if indeed they see gain such as price, quality, design and environmental benefits. And in addition after sales services are essential. I will be overrate these elements to get some competitive benefit. After the marketing search and decisions, I'll do some business research which begins with PESTLE Evaluation and it remains with Supply Chain Strategies and SWOT Research.
Pestle means: Political
PESTLE Evaluation helps companies to comprehend the external environment where they operate. In this particular part I want to evaluate PESTLE Evaluation for importing mozzarella mozzarella cheese from Italy to UK. Legal, political, economical, technological, cultural and environmental factor influences international buying between companies and countries. Corresponding to this I want to evaluate these factors between Italy and UK and I wish to make a decision some decisions and make some strategies. And in addition addition to the, these factors give my explanations why I choose to bring mozzarella cheese from Italy to UK. In international buying, there are a few factors that affect companies and governments in decision process. I want to begin with legal factors.
Legal factors: UK and Italy share membership of europe, NATO, OSCE and G8. Which offers both of the country easy and comfort international trade. Also, UK is part of the European Union Traditions Union. It offers free trade plans of the European union and Western Free Trade Association (EFTA) The value is within export and import, the foreign companies have to use UK's currency; English pound. Their currency system is different and the international companies have to use money of pounds in taxes systems.
Therefore, there are a few EU food security requirements and UK is applicable europe (European union) these kinds of rules. Before detailing these rules, I wish to mention something. Meats products, seafood products, egg products and dairy and dairy products product's companies need to join up all their premises with the local authority. That is required under European union regulations.
According to these rules, there are some restrictions on plantation products such as on milks and meats. These regulations are called Cover which means Common Agricultural Insurance policy. In the UK customs, the transfer products are handled and examined that are dangerous or not when getting into the UK place. The product i import which is normal water buffola mozzarella cheese contains milk and in the united kingdom Customs it'll be controlled and I'll show some documents such as applicable certificates, product licences and documents as a facts that the cheeses do not contain any diseases. Because, all food which is imported in to the UK must be safe to consume and comply with food-law requirements.
Failure to adhere to UK and EU hygiene and protection rules could cause wait in shipments, increase costs and require action to be taken by enforcement specialists. The overseas companies must be remembered food health requirements in all stages. The food business providers have to use food safety methods on "HACCP" key points. It really is internationally accepted and suggested for food safety management. Food development legislation addresses all parts of food development such as; creation, processing, presentation, labelling, distribution and retailing. The overseas companies must be cautious in some rules. When importing cheese to UK, the importer have to obey some guidelines or regulations. These are;
The main pieces of UK and European general food legislation are:
the Food Safeness Act 1990, which provides the framework for many food legislation in the uk and creates offences in relation to protection, quality and labelling.
the Standard Food Law Legislation (EC) 178/2002, which creates standard concepts and requirements of food law
the Basic Food Polices 2004 which for human health
The main bits of UK and Western hygiene legislationare;
Regulation (EC) 852/2004 - covers the health of foodstuffs and models out general cleanliness requirements for all foods
Regulation (EC) 853/2004 - places specific hygiene rules for food businesses interacting with products of dog origin
Regulation (EC) 854/2004 - pieces specific guidelines for official settings on products of canine origin designed for human consumption.
Political Examination: Italy is a perfect country where to export mozzarella parmesan cheese since it is a traditional food of Italy. Through the political viewpoint, Italy has good international romantic relationship with EU countries. You will find no limitations to the transfer or export of capitals and goods. Their accounting system is International Accounting Standarts (IAS) and also this acconting system is used by all EU countries. It really is similar with all EU countries. This political relationships affect transfer and export of goods. For mozzarella parmesan cheese, this relationships is an advantage for United Kingdom because UK can be an EU country and also use the same accounting system. To transfer this product to the uk more easier than the non-EU countries.
Economic Factors: Italy is one of the major the European Union agricultural powers. Italy is amongst the very best 10 trade countries on the globe. Manufactured goods account for more than 90% of the country's exports. Italy is one of UK's greatest marketplaces with exports. You can view the main spouse countries in Stand1. Among the main spouse country of Italy is UK. In 2008, from Italy to United Kingdom, the ratio of export is %5. 2. However in 2009 this level decreased due to global crisis. This year 2010 the export level gets better and now the amount of export more higher. In the area of the Italy customs area, Italy uses the harmonized system.
(% of exports)
Technological Factors: On the globe, almost all of the countries buy mozzarella parmesan cheese from Italy because the technology of mozzarella parmesan cheese equipments are well toned in Italy. The development of mozzarella has a lot of stages such as handling equipment, cooling, freezing equipments, filling up machines, cheese press and parmesan cheese mixers. The technology and well machines are very important for producing of mozzarella parmesan cheese and this is well developed in Italy. Among the reason to choose Italy for mozzarella cheese is the scientific factors. Development of instruments always utilized by the Italian mozzarella companies. And also their communication system is well toned.
Social Factors: In United Kingdom, the amount of pizza, pasta and salad restaurants are too much and almost all of them use mozzarella cheese because of their products. They need to buy mozzarella cheese, and also in supermarkets the amount of selling mozzarella cheese is at high levels. A lot of people in UK like the Italian's parmesan cheese style and flavor. Because this kind of cheese is not any health risk. Best quality mozzarella cheese manufactured in Italy.
Environmental Factors: Normal water buffalo mozzarella cheeses are pasture-fed which stimulates the health of the pets or animals and escalates the calcium mineral content in the milk. There is no healthy risk and almost all of the people favor this kind of cheese. It really is in water and there is no oil, fats and sodium in the cheese. Water buffalo companies do not adulterate the animals's milk in virtually any manner which means this carries through to the mozzarella. The agriculture produce well toned in Italy, depending on environmental factors, the season, daily temperatures and the properties of the dairy on particular times are suitable for production of mozzarella in Italy. The cheesemaker adopt to all or any these factors in Italy. And also the plans are recyclable.
The the surface of the page, you can view the procedure map. This map starts with establish romantic relationship with the maker of buffalo mazzeralla cheese and it persists with need of contract and ordering, then it continues formulate resource chain strategies, deliver and assess product and sale of the merchandise.
The supply chain process starts "ordering". I intend to order 2. 000 water buffola mozzarella from one of the big mozzarella cheese company in Italy. After deciding ordering, I (as a importer) and the company's employees (as a exporter) can make a agreement about the buying and offer chain techniques. The formalities of your deal such as offer, popularity, aggrement, capacity and consideration are incredibly important elements for the formal associations. According to this, I and the mozzarella cheese company decide to make bilateral or unilateral deals. After putting your signature on the contract, the business starts to create 2. 000 mozzarellas. In this particular stage, the mozzarella cheese company use control equipment, air conditioning, freezing equipments, filling up machines, cheese press and cheese mixers to create buffola mozzrella. Following the producing, the mozzarella company make their own packaging and circulation.
The quality of product is very important. Sometimes it can be difficult to find good quality mozzarella in supermarkets. Sometimes thier preferences changes or fall off. They can be dairy products and have to be consume very quickly. Because of that warehousing and stockings are the fundamental elements for this kind of cheese. The product packaging is very important, because inside the packages there are some waters that shields cheese. That is why, the business have to offer mozzarella cheese meticulously. Fresh mozzarella can be packed dried in vacuum-sealed vinyl packages as well as the companies use recycleable presentation system. The mozzarella cheeses should be packed because of the EU laws.
After the packaging stage, the storage area and transportaion periods will be the significant elements for the mozzarella cheese because they have to be storage in fridges plus they need to be taken by the refrigerated trucks or air crafts. I wish to apply as a incoterms FCA (Free Carrier). This means that owner fulfils his obligation to provide when he has paid the goods, cleared for export, into the charge of the carrier known as by the buyer at the known as place or point. Which means this means all the tasks on owner side. The business will bring my goods and deliver all the goods to my addresses which i gave.
The temperature is the significant aspect for mozzarella cheese. Refrigeration and vehicles systems are well toned in Italy which means this reflects and decides the grade of mozzarella cheese. Acorrding to FCA, safe-keeping and vehicles of goods are on mozzarella company's responsibility. Once the mozzarella company are to be ready to deliver 2. 000 amount of mozzarella cheese, they need to put them refrigerated fridges and transport these products immedetialy. The developed refrigeration systems allows mozzarella cheese to move another nations. Within the travel systems, there are refrigerated fridges in air, street and shipping storage containers. However the important point is the leading time and quantity of cheeses. . EASILY have enough time for you to deliver and high quantities of products, I choose refrigerated road transportation but If I have not enough time to provide I choose air travelling from Italy to UK. WHEN I discussed earlier the cheese are dairy products. But mozzeralla cheese differs from the other cheese because mozzeralla cheese should be utilized in ten or twelve days. Because of which i choose refrigerated transportations. According to the delivery time, refrigerated highway and air transportations are suitable because Italy is one of neighborhoods of France and also France is the most closest country to UK. The mozzarella company may use road or air travel efficently but as I mentioned before I determine this based on the delivery time and variety. My product i import is mozzarella cheese and the time is vital. This hypersensitive products should be transported and sent out carefully.
So, in line with the location of Italy, I have two options for transportation and circulation of mozzarella cheese from Italy to UK. You can see the map of Europe in Graph 1 to understand the circulation and transportation system easily. For travel and circulation of product, the mozzarella cheese company take my product for me. First option is; refrigerated highway trasnportation, second item is refrigerated air transportation. I will decide this important decision based on the delivery time of supermarkets or restaurants. But now, I want to consider these two option. First option; providing mozzarella cheese from Italy to UK by refrigerated trucks. If I have enough time to distribute and high quantities of products, I choose refrigerated road vehicles. The refrigerated pickup trucks will reach easily to the France and after those trucks
come to the France border point France with European union legislation, mozzarella cheese with refrigerated trucks shipped to the UK. Because there is a English Route which calls La Manche, can be an arm of the Atlantic ocean that seperates Great britain from North France. This programs connect the united kingdom and European countries very closely. There is a RO RO shipment that are vessels made to hold wheeled cargo such as automobiles, trucks, semi-trailer pickup trucks, trailers or railroad autos. These are driven on / off the ship independently wheels between UK and Europe. Those truck that which carriages my product which is mozzarella cheese, use the RO RO transport to go to UK. You can see the English Channel in Graph 2. In the united kingdom customs, the documents, certificates and licencees has showned detailly by the 3PL of the mozzarella cheese company. Also, for trade connection, there are 13 incoterms and these incoterms make trades easier between countries. In customs, they are controlled departure term, shippment term, or introduction terms. It is vital and it is legally desired from the companies or alternative party logistics companies. The company should show the FCA incoterm certificate to the Italy, France and UK traditions. After that, across the UK, the business will continue to use refrigerated highway travelling because UK can be an island country and it is simple to operate road transportation to carry and spread products.
According to the next option, having mozzarella cheese from Italy to United Kingdom by company's 3PL's refrigerated aeroplanes. If I have insufficient time for you to delivery and disperse, the best thing is air transportation. The products can easily come to UK from Italy by fleights with displaying all the certificates and documents in both sides of the customs.
Graph 1: Map of Europe
Graph 2: English Channel
Mode of move: Airfreight
Packing: 2. 000 packages
Gross weight: 1. 500 kg
Net weight: 800kg
Quantity x Price(unit) = 2. 000 x 3 pound= 6. 000 pound
FCA Value: 2. 000 pound (with transportation and traditions costs)
Freight value: 500 pound
Insurance value: 400 pound
Total: 8. 900 pound
technological development, impressive and well toned equipment, experienced personnel in Italy mozzarella cheese industry
More closer romance between UK and Italy
Low fat, rich in calcium, supplements and necessary protein inside the mozzarella. This causes most of the people preffered these varieties of healthy cheese
Water buffola mozzarella cheese is currently available in UK. British people begin to produce buffola mozzarella in UK by the end of this year's 2009.
Different languages (English-Italian) and it can be affects marketing communications between company or conflicts in traditions.
Water buffola mozzarella cheese is a dairy product and if there is no right heat range or refrigerated fridge, it could be collapse or go sour.
UK's currency system differs than all EU countries and overseas countries should be carefull about these types of differences when they are paying repayments or taxes.
There are tons of opponents in cheese market in UK.
Mozzarella production is big business in Italy, with herds of 25 % of your million buffalo creating a total of 33, 000 tonnes of mozzarella cheese each year, 16% which is exported. But previous years, the dioxin level in cheese found in high level. The mozzarella cheese companies need to be carefull the percentages of dioxin. If indeed they don't be careful the dioxin level inside the cheeses, they have risk a ban.
Late deliveries can be a risk
Climate change such as bad weather conditions
Political issues between two countries
I search that, how I import drinking water buffola mozzarella cheese from Italy to UK. I start my writing with advantages and I continue it to give a brief information about my product which is mozzarella cheese. Then, I analyse marketing plan and the factors that have an effect on internetional purchasing. I clarify PESTLE research and I analyse how these factors impact my import and my product. In second part, I write resource string strategies of my purchase with process map and cost examination. In final part, I analyse the SWOT evaluation with displaying the potential dangers and benefits of this transfer.