Majujaya Berhad Offshore Expansion

Majujaya Berhad which currently operates a chain of retail outlets in Malaysia plans to expand its business operations offshore into new markets in the Kingdom of Bahrain a member of the Gulf Cooperation Council (GCC). The project aims to establish a presence in Bahrain by opening five retail outlets and developing a distribution network within the first year. Majujaya Berhad targets to achieve a minimum sales of USD1 million within the first year of operation in Bahrain whilst at the same time ensuring compliance with all the legal and regulatory requirements of Bahrain. You have been appointed the project manager for this offshore venture and you are required to critically analyze the project's key objectives, deliverables and constraints followed by an overall risk assessment.

Key Objectives:

1. Establish a presence in a new market by opening five retail stores within 12 months.

2. Develop a distribution network to ensure efficient and timely delivery of products to the new retail stores.

3. Achieve a minimum sales target of $1 million within the first year of operation in the new market.

4. Ensure compliance with all legal and regulatory requirements of Bahrain.

Deliverables:

1. Market research report outlining the target market, competition, and potential challenges.

2. Detailed project plan with timelines, resource allocation, and budget.

3. Site selection and lease agreements for five retail store locations.

4. Distribution network strategy and agreements with local logistics partners.

5. Comprehensive training program for staff members in the new market.

6. Operational infrastructure setup, including IT systems, inventory management, and point-of-sale systems.

7. Compliance documentation and approvals from relevant authorities.

Constraints:

1. Budget: $2 million for the entire project.

2. Timeline: The project must be completed within 12 months.

3. Regulatory Compliance: Adherence to all legal and regulatory requirements in the foreign country.

4. Cultural Differences: Managing cultural nuances and adapting business practices to the new market.

5. Language Barrier: Overcoming language barriers during negotiations, training, and communication.

Risk Assessment:

1. Regulatory Changes: Changes in foreign country regulations may impact the project's timeline and cost.

2. Supplier Delays: Delays in receiving equipment, fixtures, and inventory from suppliers.

3. Language and Communication: Misinterpretation of instructions or miscommunication due to language differences.

4. Talent Acquisition: Difficulties in finding and hiring qualified staff members in the new market.

5. Market Competition: Competitors may have established their presence in the new market, posing challenges to market share.