Business Memo: If BreadTalk should enter Myanmar?

BreadTalk should Enter Myanmar
Student’s Name
Institution

TO: Dr. George Quek
FROM:
DATE:
SUBJECT: BreadTalk should Enter Myanmar
Introduction
The expansion of a business to new regions is beneficial in the following way: the company gets an opportunity to market its products in a larger population, which increases the probability of making more profits (Yüksel, 2012). The company will enjoy high demand, especially due to the preference of foreign products internationally. Also, it will enjoy limitless growth since economic fluctuations in one state will affect only a small section of the business. Though, there are disadvantages of entering new markets such as compromised quality, loss of control and financial challenges (Zerrillo, Mathur, Lee & Lim, 2016). However, these limitations are manageable. In this perspective, BreadTalk should enter Myanmar as a new market region based on the following features identified through a PESTEL analysis.
Politics
The country is headed by a democratic government that allows the people to express their freedom and rights. The government has managed to eradicate the anti-Muslim culture and promoted peace. Additionally, the democratic government reviews entrepreneurial reforms regularly to ensure it attracts investors globally (Chantavanich, 2012). Also, the country has established policies that ensure fair competition in business and high-quality products to consumers. In this regard, BreadTalk will not face political challenges that are critical in penetrating the market.

The democratic government will allow the company to organize for its advertisement campaigns and other awareness strategies to familiarize its products in the region. The regular review of entrepreneurial policies will provide BreadTalk with new working frameworks that are sensitive and up-to-date for improved efficiency. However, the company should be aware of the competition policies to be able to survive in the market (Simpson, 2016). In this perspective, it should establish a competitive advantage strategy such as the price or quality of products rather than using traditional methods of enticing clients from existing companies.
Economic
According to (Yüksel, 2012), Myanmar is prone to natural disasters such as floods that significantly affect its agricultural sector, which contributes about 30% of the economic income in the country. However, other sectors have shown consistent growth such as forestry, fishery, and product manufacturing. In the fiscal year 2016/2017, the economy is projected to grow to about 8.2%, which is better than most of the Asian countries. Also, the manufacturing and processing industry intends to double the employment rate by 2019, which will increase the purchasing power and national GDP. In this perspective, BreadTalk will benefit from the current food problem due to the flood issue. More people will be willing to purchase its products that will be cheaper compared to prices offered by existing companies. The country is focused on creating employment, which is core in increasing the purchasing power of the citizens. Thus, despite the stiff competition in the country on bakery products, the large population with high purchasing power will provide sufficient market.
Social
The people of Myanmar have cultural beliefs derived from Christianity and Buddhism. Also, part of the population embraces the Muslim culture (May & Nugent, 2015). Their socialization depends on the cultural perspective of each subgroup. However, with the increased use of technology and sharing of culture, the people of Myanmar have become liberal such that they are ready to experiment new ideas, activities and products. In this perspective, BreadTalk is assured of a large market upon advertising its products effectively. Most bakery products are not associated to taboos in Muslim, Christianity, and Buddhism. Thus, the company products will not be rejected. However, for BreadTalk to win many clients, and establish a positive long-term relationship, it should be willing to offer free samples during the advertisement campaign.
Technology
The global technological development provides an opportunity to conduct research on the products that are most consumed in different regions of a country. People in Myanmar are technologically enlightened such that they share information through the internet. They purchase goods online from different stores. Additionally, they give feedback to products that they have purchased on the store or company websites. In this regard, BreadTalk may reduce the cost of advertisement through the use of online platforms to create awareness of its products. The technology can provide an estimate of the market size the company is likely to enjoy, and thus limit its products appropriately and avoid incurring losses (Zerrillo, Mathur, Lee & Lim, 2016). Additionally, the internet based client feedback will enable BreadTalk to attract more clients within the country. However, the company should be ready to recruit Information Technology experts from Myanmar.
Environmental
The people of Myanmar have different skills that allow them to work in factories and other entrepreneurial centers. They can provide both skilled and unskilled labor to companies at affordable rates (Yun, 2013). Additionally, the people are hardworking and observant on ethical policies governing business operation in the country. In this regard, Breadtalk will enjoy cheap labor and maximize its profits. The hardworking people will assist in promoting the business image through creating positive customer relations. Additionally, the company will establish its business in a position that gives it a competitive advantage to avoid negative impact on the stiff competition. However, BreadTalk should be aware of the labor laws that regulate the minimum wage rates in the country and competition policies.
Legal Factors
Myanmar has legal factors such as safety and healthy, advertising standards, laws, product labeling, equal opportunity and consumer rights (Simpson, 2016). These factors determine what is illegal or legal in the country. For instance, companies should produce products that ensure consumer safety and healthy. Additionally, the labeling should be unique, clear and illustrative. In this perspective, BreadTalk will be acquainted with to the legal and illegal factors in the country to avoid getting into problems with the government. The company produces products that are safe for consumption and is ready to take responsibility for any health problems caused by clients. Additionally, the company is prepared to protect and provide other relevant consumer rights. Also, it will observe equality in the staff such that it does not affect the existing system in the country. Furthermore, BreadTalk will observe the laws such as sustainable development policies as a measure to attaining competitive advantage or obtain support from the government (Yun, 2013). However, BreadTalk will face the challenge of adapting to the existing laws.
Conclusion
The BreadTalk is likely to benefit from entering the Myanmar market, especially since the country is multicultural with a large population. The country is industrialized, and many people are able to work and earn a regular income. They are hardworking and informed technologically as illustrated from a consistent economic growth. Additionally, the government provides a supportive environment for external investors provided they follow the established entrepreneurial policies. The company will face challenges such as adjusting to the labor and environmental sustainability laws in the country. However, due to the simplicity for BreadTalk to enter the Myanmar market, and increase its annual profits, it will be important to consider the opportunity.

References
Chantavanich, S. (2012). Policy reviews on Myanmar economy.
May, K. K., & Nugent, N. (2015). Myanmar-Culture Smart!: The Essential Guide to Customs & Culture. Bravo Limited.
Simpson, A. (2016). Energy, governance and security in Thailand and Myanmar (Burma): a critical approach to environmental politics in the South. Routledge.
Yüksel, I. (2012). Developing a multi-criteria decision-making model for PESTEL analysis. International Journal of Business and Management, 7(24), 52.
Yun, S. U. N. (2013). China and the changing Myanmar. Journal of Current Southeast Asian Affairs, 31(4), 51-77.
Zerrillo, P. C., Mathur, S., Lee, M., & Lim, C. (2016). BreadTalk: Continuous Innovation to Keep the Brand Fresh.