Feasibility Research Plan For Associated British Foods

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Top management of AB Mauri, a business unit of Associated British Foods, is planning to establish bakers’ yeast and bakery ingredients manufacturing plant in Bangladesh. Before investing in Bangladesh, the company needs a feasibility report. This outline report will introduce the aim and objectives of the main feasibility research. The paper will also define the research strategy including requirement of data, data collection methods and methods of analysing data for achieving the research objectives. The report also includes, how to analyse collected data to achieve the objectives and how to take decisions based on the findings of the research.

1. Introduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

After the rebirth of industrial globalisation back in 1980s, Asian, African and Latin American least developed countries became hotspots for relocating labour intensive industries by developed economies. The natural reason was enormous availability of cheap labours in those countries (Bradford 1925). Foreign direct investment in agriculture and the food industry, according to FAO (2004) as cited by Pingali (2010) grew significantly in Latin America and in Asia between the mid-1980s and mid-1990s. In Asia, FDI in the food industry nearly tripled, from $750 million to $2.1 billion during the last three decades and during the same period food industry investment grew exponentially in Latin America, from around $200 million to $3.3 billion (Pingali, 2010). The major Asian investment destinations were China, Thailand, Malaysia, Indonesia, Sri Lanka, Pakistan and India. However, countries like Bangladesh, Vietnam, Nepal and Maldives were ignored by the international investors. Especially Bangladesh despite having one of the biggest population bases and cheapest labour forces could not attract FDI in food or other sectors due to political instability, severe power shortage and bureaucratic complexities. Nevertheless, recent development in the Bangladeshi economy has lifted the international confidence and the economy has become wide open for foreign direct investments. The objective of this paper is to outline a research plan to identify the feasibility of establishing a factory of AB Mauri business unit which will produce baker’s yeast and bakery ingredients. 2. Aim and Objectives of the Feasibility Research. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The aim of the research is to identify whether establishing an AB Mauri plant in Bangladesh for producing baker’s yeast and bakery ingredients is a feasible option for Associated British Foods Plc. To reach its aim the research team would require achieving the following objectives – Explore current political and economic situation of Bangladesh and identify sustainability of political and economic stability;

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