Business Expansion in Shanghai, China

International Business

EXECUTIVE SUMMARY
Business expansion is the concept through which business entities around the world desire to
spread the wings of their businesses and expose them to new markets and regions. Through this
they intend to focus on multiple objectives like increasing size and scale of the businesses,
increasing profits for business, bringing new products and attracting new consumer base as well.
In this report a similar attempt has been made to understand what it takes on small and medium
size business, when it decides to expand its business in a new country of totally different
business scenario. Through this report internationalization of a business is desired to learn, also
the report has tried to make understanding of expansion strategies belonging to different periods
of time. Manner in which foreign markets works and operates in two different entities are also
tried to be comprehended.

Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
MAIN BODY..............................................................................................................................................4
Business Expansion in Shanghai,China...................................................................................................4
Understanding trade barriers....................................................................................................................7
Ethical and Social issues; Corporate Social Responsibility...................................................................11
CONCLUSION.........................................................................................................................................12
REFERENCES..........................................................................................................................................13

INTRODUCTION
For the purpose of developing an understanding about Internationalization of business
and the path through which a business entity has to go through expansion and development of a
business in foreign market, the report has taken example of a small scale business enterprise of
Milk and Milk products Casein Plc. The company is originally settled in United Kingdom and
now trying to expand its wings in Shanghai, Chinese market. For this purpose, the report shall be
first analyzing a range of environmental factors in Shanghai, China that can affect expansion of
business. Later on, report have analyzed presence of different kind of trade barriers, and at last
made understanding of Corporate social responsibility factors.
MAIN BODY
Business Expansion in Shanghai,China
In the context of Shanghai market, Casein plc is required to make some extensive and
intensive analysis of foreign market forces of it requires to make expansion in Shanghai market.
There are various reasons for making such intensive analysis because when any business entity
belonging to a particular country, United Kingdom in this case, tries to make expansion in other
City, Shanghai in this context, the besides trade issue many other factors plays role, that can be
political, ethnical or social or any other as well (Luo, 1999). Analyzing these factors in context
of Shanghai is very important for Casein plc because the city has a totally different scenario in
terms of political situations and cultural scenarios as well. Therefore, it can be said that success
of expansion of business of Casein plc depends of success of this analysis. In this section of the
report, analysis for success Casein plc in Shanghai market is made using PESTLE model of
business analysis. Relevance of this factor is evident because this model takes each factor that
can be influential in affecting success of launch of any product, in a separate manner, and
analyze them differently.
Political factors- Considering the political factors, this seems to be the most fragile in the
Shanghai market if Casein plc thinks of expanding its business there. This is majorly because of
the fact that, Chinese government is a communist government and also the country has the single
party rule there. This also have major influence on Shanghai, as it is one of the largest cities in