"Corporate AmbitionTransparency and ethical business practices are the backbone of how they do business atLankem. The company corporate governance system ensures that their shareholders, businesspartners and employees are kept informed at all times. (www.lankem.lk)The company put their employees? health and safety above all else in the pursuit of our businessobjectives and will not compromise on these standards. Quality and productivity are at the top of our agenda and the company strives to deal withproducts and suppliers that have a similar commitment to quality standards.Resource CapabilityCurrent Management System based on the ISO 9001:2008 International Quality ManagementStandards;M1: Men M2: Machine M3: Materials & Equipment& servicesMachine Cutter machine LabelsoperatorsManual workers Furniture and laborers Packing materialsProduction Cutting table helperElectricity6 Factory Chemicals WatersupervisorPacking helperOther clipsResearch and Factoryfixeddevelopment assetsstaffFigure 01-Analysing resource pool of the company1.0.2 Critical analysis of the country which you would recommend to enter or trade.(Environmental and industry assessment of the target country)Lankem PLC that mainly popular for paints and chemicals should select the country Australia.After considering country analysis factors the decision to export this brand to the Australiancontinent been taken. Here the chosen sub areas are Melbourne, Adelaide and Perth in Australia. In selecting thesecities considered a number of few things such as, in what cities are Sri Lankan people are livingmore, Distance between two cities in the one country, and finally, about how much of the servicewould be wanted by the people of the relevant cities.After analyzing necessary details, it is able to identify Lankem Paints, Chemicals and otherlubricants are of more demand in those countries, therefore the plan is to open all the abovestated facilities as soon as possible.7 1.0.3 PESTLE analysis of the country AustraliaPoliticalLess involvement in profitable projects. Company earned losses in last year due to this reason inSri Lanka and there is a risk of the same in Australia.EconomicalLow reputation of the company towards the construction industry, because most of the peopleknow Lankem as a paint & chemical related company.Inability to maintain a competitive position in the industry.SocialThe strategic alliance with California Product Corporation is helping the company to strengthenits competitive position. This relationship is helping the company to expand their product rangeand helping to develop a competitive position in the industry. The strategic alliance withCalifornia Product Corporation is helping the company to expand their market by targeting themarket for pool decks and tennis & squash courts, within the hospitality industry. Skilledworkers are big strength for the company. Skilled laborers are very important to a constructioncompany. The efficient and effectiveness of the work performing depends on the skills of thelaborers.TechnologicalChemical industry is growing rapidly as the world is developing rapidly. So the industry willgive them more opportunities for growth. It will give them the opportunity to involve in moreprojects. Company might have the opportunity to handle big road constructions such as highwayprojects.The company?s segments are catering to niche markets. So they will have the opportunity togrow in the industry, since the competition is low in a niche market segments compared to abroad market. Most of the industry leaders would not look at niche segments as crucial to theirsuccess.8 LegalEnvironmenal rules in Australia such as The Environment Protection and BiodiversityConservation Act 1999 has strict regulations on chemicals vs environmental pollution.EnvironmentalReputed brand name “Lanker” is a major strength for the company. “Lankem Robbialac”,“Lankem chemicals” are well reputed Lankem products in the market. Though LankemConstructions is not popular as those products, the brand “Lankem” carries their identity towardsthe customers.Lankem is a major supplier of industrial chemicals to the Sri Lankan market. So they have theadvantage to get some of the chemicals needed for waterproofing and industrial flooring fromtheir own company. So in the company?s value chain, they have integrated backward as asupplier of chemicals for their own construction company. From the company?s point of view, itis helping them to reduce costs and to reduce supplier power1.0.4 Porter’s 5 Forces analysis of the country Australia. Threats towards the company canbe well analyzed through the Porter’s five forces model.? Rivalry among current competitorsThe competitive pressure coming from the existing competitors is a threat for the company.Lankem Developments is not a well grown company in the industry. So the pressure comingfrom grown competitors is higher especially in Australia as the Paint industry is highlycompetitive.? Threat of new entrantsSince the Paint and chemical industry is a growing industry, most of the companies would try toenter in to the market. They might have extra capabilities towards the field. If this happenscompany might fail down when it is trying to grow up. So it is a big threat for the company dueto technologically advanced companies.9 ? Threat of substitute productsThere can be many companies offering same solutions with variety of benefits. Due totechnological innovations, there may be different substitute in future. Customers are looking formore benefits. So they are definitely switching to the product or service which will provide morebenefits. When the number of service providers is increasing, they will offer something more anddifferent rather than others, to gain the competitive advantage. That would be a big threat for thecompany.? Bargaining power of suppliersBargaining power of suppliers is another external threat that company faces. Although Lankemhas integrated backwardly to industrial chemical supplying, it will only reduce a certain amountof cost from Lankem developments PLC. This cost reduction is only for a few numbers ofchemicals that they are using in water proofing. Most of the raw materials they are using inconstruction field are getting through different suppliers. So if suppliers are increasing the priceof the raw materials, or they stop the supply of materials will drop down the company. So thebargaining power of suppliers will be a huge threat for the company.? Bargaining power of customersBuyer bargaining power is another external force that the company will face. Buyers can bargainthe price and they might switch to another service provider if the company cannot satisfy themby price. Lankem Developments was incurring losses last 2 years (2013-2014). Buyer bargainingpower might go up in this kind of a situation, because the company cannot demand their servicesdue to their failures in the industry. So, buyer bargaining power is another threat for thecompany.10 "