Dairy Farm International Business Strategies

This assignment examines the challenges and opportunities faced by dairy farms when expanding internationally. It requires an analysis of how these businesses respond to 'institutional voids' - gaps in formal institutions like legal frameworks or infrastructure. The assignment also delves into the role of knowledge sourcing and innovation in navigating international markets, drawing on case studies and relevant academic literature.

Running head: INTERNATIONAL BUSINESS MANAGEMENT
International Business Management
Name of the student:
Name of the university:
Author’s Note:

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Executive Summary
The present report reveals the environmental analysis in the context of Emu Ridge which are
SME of Australia offers eucalyptus oil products. However, this organization is expanding their
business in America. For this reason, the external environmental analysis is done through the
PESTLE analysis. However, it has been received that stable political environment and high
economic growth brings opportunity for the Emu Ridge to expand their business in the American
market. On the other high-interest rate, changing government and issues in the technological
policies brings threats for such organization while expanding their market share in American
retail industry.

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Table of contents
Introduction......................................................................................................................................4
Identification of the products and the targeted country...................................................................4
Environmental analysis in context of Eucalyptus oil seller in America..........................................5
Identification of the external threat and opportunity in the context of Emu Ridge the eucalyptus
oil Ltd...............................................................................................................................................9
Recommendations..........................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
Marketing of any business in the international market needs a proper market research that
can be done through the environmental analysis of the target market (("DueDil", 2017).
However, PESTLE analysis of a country is a beneficial approach to identify the potential
opportunity and risk of the target market in a foreign country. In this study Emu Ridge has been
selected as the SME that is originated in the Australia and operating their business in the
America at present. However, eucalyptus oil is their main product that they want to sell in the
American market as America has strong economic growth and the people of America belongs
form high classes that ensures the profitability regarding the sale of eucalyptus oil. Hence, in this
study the possible threats and opportunity will be addressed regarding the selling of eucalyptus
oil in America by an Australian SME.
Identification of the products and the targeted country
Emu ridge is a well known seller of Australian eucalyptus oil and it is situated in 1991 in
South Australia and currently operating their business in America. They offer 100% pure
Australian eucalyptus oil through online, phone and email. However, eucalyptus oil is very
essential oil and it is beneficial for respiratory disease including Asthma, Bronchitis etc (Dror &
Allen, 2014). Therefore, eucalyptus oil increases the flow of oxyzen in the blood vessel that
reduces the respiratory disease (Storey, 2016). On the other hand, in Australia the eucalyptus oil
is found in a huge range of areas as of example Melbourne is one of the important areas of
Australia where eucalyptus tree are found. However, this oil can be converted into gas that is
used in the home and hotels to light (Verain et al., 2012). In this study the targeted country is
America where Emu Ridge an Australian eucalyptus seller operating their business. This SME

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offers pure eucalyptus oil to the American customer that is a good opportunity for them as
eucalyptus oil in America is rare. However, America includes a large number of aging
population thus eucalyptus oil is effective for them as it will enable such customers to reduce
their respiratory diseases. On the other pure eucalyptus oil will helps the people to remove their
any type of injury. In context of home and hotels eucalyptus oil enables the people to use light
through gas that is generated from the eucalyptus oil. Hence, selling of eucalyptus oil is America
by the Australian SME will ensures their high revenue generation in this country as there is high
demand in the eucalyptus oil in this country.
Environmental analysis in context of Eucalyptus oil seller in America
Environmental analysis can be done through the PESTLE analysis (Ghosh et al., 2017).
Emu Ridge is an American SME that sale eucalyptus oil in America and wants to expand their
business in America. Hence, environmental analysis will help such organization to understand
the current market position of such country based on which they can alter their product and
business operation.
Political environment
USA has very strong democratic environment and strong laws and regulation. The stable
political environment is one of the vital areas of the business that allows the business
organization to operate globally without facing any legal issue. However, if the political
condition of a country is not stable then it is difficult for any business to penetrate the market of
such country as rules and regulation of the political parties will resist the business operation
(MacGill & Smith, 2017). The political environment of America is stable and this is one of the
significant markets in USA. However, there are diverse international trade policies that are

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introduced by the American government. On the other hand, the American government has
introduced door policy that influences the international business.
Political rules and regulation of the America leave a great impact on the international
business market. However, door policy of the USA government leads Emu ridge to get the
opportunity in their business as this policy motivates the international business organization to
invest in the American market according to needs of the customers. On the other hand, the stable
political situation keeps away the Emu Ridge from legal interruption. Therefore, the trading
policies improve the competitiveness of the business organization in this country (Abbott & Ma,
2017). However, the American government is changed after three years according to the voting
election. Hence, changes of the government after every three years may bring difficulties for
Emu Ridge as new government introduces new rules and regulation that often forces the business
organization to change their operation.
Economic environment
America is one of the growing economic sectors in the world including different types of
business in this country. Property price is high in America that often increases the business
operation cost higher (Stubbs, 2017). However, some areas of America offer the great
opportunity for the foreign investors. However, recession in the year of 2009 affected their
economic condition of America that also harms the business of America. Apart from this
America’s economy is strong and it has taken third position in the world economy that is a big
opportunity for the business organization in this country.
The low price of the commercial property brings a good opportunity for the foreign
investors in the American market to expand their business (Islam & Mamun, 2017). In the

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context of Emu Edge low price of the commercial property enables them to establish their
headquarters in America. Therefore, the currency exchange in America is favorable for Emu
Ridge. as they do not need to expand vast money in the exchange transaction process. Apart from
this the current GDP of America is higher than the Australia in the recent year, which ensures the
profitability of Emu Ridge. However, high GDP may bring challenges for such organization
regarding high-interest rate.
Social environment
American people prefer high lifestyle hence, the changing demand of the people affects
the firm products in America (Hill, 2017). People of America spend a fast life and they are more
health conscious. However, eucalyptus oil is basically used by the people who are facing a high
lifestyle. On the other hand America includes aging population that brings high opportunity for
the use of eucalyptus oil in this country as it is an essential oil that is beneficial for the aged
population.
Changing demand of the people in America leads the retail sectors to innovate new
features in their business (Li et al., 2017). People of the America have changing and high life
style that ensures their goof purchasing behavior. Hence, for Emu Ridge, which is a seller of
eucalyptus oil in the America but originally their core operation area is Australia has a big
opportunity to increase their sale in America. However, the high life style of the people in this
country is a big factor that brings changes in the sales revenue generation of such organization.
Next the aging population in America brings an opportunity to increase their sales revenue.
However, eucalyptus is an essential oil and it is the medicinal oil that reduces many diseases.
Hence, for the older population such oil is essential to give them release form many types of

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health issues. This aspect of social life of American people will bring significant changes in the
business of Emu Ridge in the USA market. However, changing demand of the people may bring
some challenges for the selling of eucalyptus oil as it is difficult for the organization to fulfill the
needs of people over the time and that may affects the business.
Technological environment
Modern technology is devoted in every sector of America. American government
research and development agency provides support to the business organizations to utilize the
modern technology in their business (Doh et al., 2017). Therefore, the intellectual property in
America is protected under the regulation of WTO (World trade organization). A domestic
network of the America is improved through the rapid use of the technology that maximizes the
communication in business.On the other hand, American government gives their concern to the
improvement of the skills of the employees in the IT sectors that are a god aspect for the seller of
eucalyptus in America.
Rapid development in the technology in America leads the foreign companies to cut their
operation cost and bring improvement in the product of the organization (Laursen & Santangelo,
2017). In the context of Emu Ridge., they can use the modern technology by getting guideline
from American research sectors. Therefore, protection of the intellectual property under WTO
ensures that any technological approach that is taken by Emu Ridge will be protected and this
will make the organization more effective. Technology also improves the communication
process within the business of Emu ridge. however, several issues regarding the policy of
American technology are found as for example, poor collaboration in the technological research

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centre and emergence of new technology lead the organization to face challenges in their
business and it is often hard to come up with the changing technology for the business.
Legal environment
Legal environment refers to the legal requirements that the business organization needs to
follow while operating in a new country (Waterlander et al., 2017). However, it is important for
Emu Ridge limited to maintain all the legal norms of American government while investing in
this country as it will lead them to carry out their business without any legal restriction otherwise
company may be forced to change their business strategy. On the other hand changes in the legal
requirement may affect the operation cost of the firm.
Environmental elements
Environmental factors highlight on the changes in the climate and temperature (Balaji &
Roy, 2017). However, in order to carry out the business in America Emu Ridge, needs to follow
the Environmental Protection Act 1974 as it enables such organization to maintain the
environmental sustainability in the business. Moreover, maintenance of the environmental laws
is the prime duty of any business organization while operating another country.
Identification of the external threat and opportunity in the context of Emu Ridge the
eucalyptus oil Ltd.
Opportunity
According to the environmental analysis political environment of America brings
business opportunity for such organization that enables them to invest in this market. However,
stable government and transparent trade policies make a legal way for such organization to

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operate their business. However, it is important for every foreign investor to understand the
opportunity while investing in a new country (Silva, Styles & Lages, 2017).On the other hand,
growing economy that means the high GDP of America than the UK is another opportunity for
Emu Ridge This strong economic condtion of America ensures the foreign company to get
profitability from the American market. As for example, Smith snack's food company is the
foreign investor in America and this company achieved high growth in their business through
acquiring the opportunity from political stability, low taxation in money exchange and growing
economy in America. Apart from this rapid emergence of the technology in America will lead
Emu Ridge to get a fast business opportunity by maximizing their business performance.
Threats
Environmental analysis of America highlights on the threats in the context of Emu Ridge
besides its opportunity in the American market. However, changes of the American government
after three years brings challenges for the Emu Ridge as the new government develops new
policies and rules that may affect the sustainability of the business of the foreign company.
However, foreign investors face difficulties while penetrating the market of a new country as
they have to maintain the specific trade policies of the government of the different country (Doh
et al., 2017). Hence, changes in the government give raise more legal challenges for the foreign
companies in America. On the other hand, high GDP means the high interest in foreign
investment in America that leads the Emu Ridge to face threat regarding high operation cost
during the selling of eucalyptus oil. Therefore, impact of the economic recession may bring
threat for high operation cost for eucalyptus seller. Apart from this issue in the technological
policies in America leads Emu Ridge to face threat during the implementation of technological

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approaches in their system. Moreover, rapid changing in the technology leads the organization to
face challenges as it is often difficult to cope up with the changing technology.
Recommendations
The adoption of the new farming technologies needs to be implemented with careful
business planning. The future of the industry of farmer may be in the hands of technology as the
respective industry is switching from the traditional methods to the modern technology. This is
to be done to increase the productivity at the firm and saving on the expensive overheads. The
employees at the eucalyptus oil firm need to have farming ample experience in the selling
techniques that will increase the productivity of the firm (Onetti et al.,2012). The use of the new
technology will also help the business grow and prosper. The use of the new technology will
enable to improve the operation process of eucalyptus oil selling in America.
There will be growth in the GDP that is the gross domestic product of the firm by the
promotion of economic growth with the help of innovation. The pursuing of the policies of the
nation will help to avoid the threats and creation of the value for the consumers of the
organizations (Ahmad et al., 2013). There should be removal of the unnecessary and the unclear
laws that may hamper productivity of Emu Ridge. The industries set international standards to
test the measurement of the productivity of the organization or the company. The eucalyptus
seller should maintain the labor laws for the employees who are working at the company. While
the production of the eucalyptus product the environment and the society should not be harmed.
The processing of eucalyptus oil should be done in hygienic process and within aseptic culture.
The government in the country is elected after every three years (Schiederig, Tietze &
Herstatt, 2012). There should be the provision of such norms and regulations that will not

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hamper the smooth running of the sale of eucalyptus. The increase in the labor force participation
will also help to increase the productivity of the Emu Ridge (Gourley et al., 2012).
Conclusion
Thereby, the report reveals the environment analysis of the Emu Ridge the eucalyptus oil
seller is a small sized enterprise that is based in the Australia and has an opportunity to expand
its business in America. The environmental analysis is performed using the political, economic,
social, technological, law and the environmental factors. In the report, it is seen that the stable
political environment and high economic growth helps this oil firm in the sphere of expanding its
business area in America. The factors that bring threats for such organization while expanding
their market share in American retail industry are the high interest rate, changing government
and issues in the technological policies. The door policy of the American government provides
the Emu Ridge an opportunity in their business as this policy motivates the international business
organization to invest in the American market according to needs of the customers. The various
trading policies enhance the competitiveness of the business organization in America. America is
one of the growing economic sectors that have a variety of businesses in the county.

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