External Environment Analysis of Chinese Market and Dairy Industry for UK SMEs

INTERNATIONAL
BUSINESS

EXECUTIVE SUMMARY
In this the external environment analysis is done to identify the Chinese market and the dairy
industry so that the opportunities and uncertainties are identified. Trade barriers are also
identified for the Chinese market so that this have to be looked by the company for better flow of
import and export. Ethical and social consideration are important that are identified in this for the
SME companies.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Milk Industry background...........................................................................................................2
Trade barriers in Chinese market.................................................................................................4
Businesses uncertainty and opportunities....................................................................................5
Ethical and social issues for consideration..................................................................................5
Cultural preference needs to be considered by the business........................................................7
Expansion methods used by the company...................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
The international business is defined as trade of commodities, capital, technology at
international level. In this basically distribution of goods and services across the boundaries of
the countries (Wettstein and et. al., 2019). There are some globalisation which are act as markets,
their different types of barriers and changing environment in the preferences of the customers.
The companies which are doing the international transactions of business are characterised into
international businesses. To do multinational business the organisation have to deal all the
factors which are influencing the action of business. This report will evaluate the business
drivers of company when expanding into China. Pestle analysis is done of Chinese market in the
dairy industry and trade barriers are identified. Further the ethical and social issues are
undertaken with UK SME's and determine the importance of corporate social responsibility
when the company is operating internationally. Moreover, the cultural preference are also
considered by business and expansion methods that are undertaken by SME.
MAIN BODY
Milk Industry background
The UK market is basically have around 16.9 percentage of over production of milk in
the year of 2018. the cows are being regularly demonising in the UK around 27 percentage
which is big number. Yet the maximum production of milk in UK comes in the year of 2018
with 15 billion litres. Whereas the china is one of the leading country in the dairy industry all
over the globe with the annual earning around 359 billion yuan in 2017 (Nielsen and Raswant,
2018). The government also being supporter for this industry, mostly the customer of china are
preferring milk and milk powder product as this are one of the most popular over their. The UK
stands at 11 position in production of milk in all over the world. Their cheese and butter products
are not having negative trade balance and the milk is highly in demand. The supply chain of milk
get impact when the pandemic time started.
Business drivers: The business drivers are the main contribution and the actions that perform the
financial and operation data of the business (Malyarets and et. al., 2017). The main business
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