Assignmemnt on Country Analysis

Running head: COUNTRY ANALYSIS
COUNTRY ANALYSIS
Name of the student:
Name of University:
Author Note:

1COUNTRY ANALYSIS
Table of Contents
1.0 Introduction:.........................................................................................................................2
2.0 Socio economic environment...............................................................................................2
2.1 China:..........................................................................................................................2
2.2 United Kingdom:..............................................................................................................2
3.0 Political environment and risk:............................................................................................3
3.1 China:...............................................................................................................................3
3.2 United Kingdom:..............................................................................................................3
4.0 Business environment:.........................................................................................................4
4.1 China:...............................................................................................................................4
4.2 United Kingdom:..............................................................................................................4
5.0 Market potential:..................................................................................................................5
5.1 China:...............................................................................................................................5
5.2 United Kingdom:..............................................................................................................5
6.0 Country choice:....................................................................................................................6
7.0 Conclusion:..........................................................................................................................7
8.0 References:...........................................................................................................................9

2COUNTRY ANALYSIS
1.0 Introduction:
Having the potential for increased production, Queen’s Petfood has engaged Data
analysis between China and the UK. The Preliminary research has identified China and the
United Kingdom as possible markets in the world. This report discusses the potentiality of the
markets of China and the United Kingdom. It discusses the socio-economic environment,
political ambience and potential risks, business environment of these two countries and
identified market potentials. It concludes with China as the choice market for successful
import of the company’s products.
2.0 Socio economic environment
2.1 China:
China is the largest country of the world with the largest population. This country has
a socialist market economy which is the second largest economy in the world. It is the
world’s largest economy by purchasing power parity. It is the fastest growing major economy
which records the growth rate average of 10%over last three decades. As the economy has
shown major growth, the GDP of the country is also growing fast. It has a huge reserves of
rare earth metals and essential ores like coal and iron. This is the reason why the government
has taken drive to industrialized the country (Liu et al., 2015). The higher rate of savings by
the Chinese citizens and skilled yet cheap labor supply has helped the country to flourish that
much. Social behaviors of the people and trends change with time. differences can be found
in the lifestyle, emigration, religion and education.
2.2 United Kingdom:
The economy of this country has a great variety. Population of UK has always helped
its economy to grow. The country has scope of improvement in both the private as well as
public sectors. The rate of foreign direct investment is also very high in this region. With the

3COUNTRY ANALYSIS
changes in the interest rate the country has recorded positive changes in the economy. New
entrepreneurs are encouraged by the UK government. The country has one of the highest
level of income hence has a high standard of living. The markets have to cater for more than
60 million domestic customers as well as increase the scope for investment in the country.
3.0 Political environment and risk:
3.1 China:
The political stability is the chief potential for China. For being a single party state,
the government has very important role in the economy of China. The government
regulations are much stricter. Formal and informal regulations are to be obeyed by the
domestic as well as multinational companies. There are highly settled governmental
monitoring in the market along with every aspects of business. As the government has taken
drive to grow the economy by the means of industrialization, the domestic entrepreneurs and
foreign investors are motivated to strategies to capture this market. However, the constant
interference in the business and monitoring every move by the government agencies pose
high risk for the exporter as well as entrepreneurs.
3.2 United Kingdom:
The political situation of the country is highly stable. Despite the fact that the issues
associated with Brexit had created much problem in the last year, but the situation has
become more improved than before. The uncertainty had made barriers in trade and led to
separation but now the country has overcome those situations by making proactive decisions
(Li & Tellis, 2016). The people has a great influence in the inner-work of the country as the
administration split between the local and national administration maintain proper connection
among themselves. The economy depends on other European nations so also the political
decisions hence there are potential risk for the business (Forde & Slater, 2016).

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4.0 Business environment:
4.1 China:
The business environment of China has become much easier to operate in and
navigate for the foreign companies in the last decades. A series of procedures to ensure the
steady growth of FDI and make these foreign investment environments more regulation-
based, convenient and internationalized (Kirkby, 2018). The opportunities for operating in
China is endless as the market is unbelievably large. The country’s legal frameworks as well
as the judicial system are fair hence actually work. In general, these have protected the
foreign companies whenever they require protection, and this is the most encouraging factor
for most of the foreign investors. The government has taken business-friendly incentives
along with policies for all types of companies. This has proved to be proactive as well as
helpful. The supply chain in this country supports the business hence allows them to
manufacture products which are competitive on the global stage.
4.2 United Kingdom:
The United Kingdom is one of the most desired European market for international
expansion. Due to the economic and political dependency on the European Union, the
business of the country has faced many economic turmoil and some unique economic
challenges. However, the business of the UK has managed to remain positive, open and
forward looking. the government has committed to create a very supportive business
environment which has encouraged the private sector led economic recovery (Burns, 2016). It
is one of the moist attractive place in Europe as more overseas comedies has been trying to
enter the market as well as invest in it. It is the world’s second largest service exporter
recording a long term growth (Clougherty et al., 2017). It is the best and safest place to set up
a business as the country provides a potential competitive environment for all types and sizes
of companies. The Plan for growth by cutting the corporate tax rates as well as regulations,

5COUNTRY ANALYSIS
developing the skills of the labors, investing in the infrastructure and reducing planning
burden the government of the UK has provided this competitive platform for foreign
countries.
5.0 Market potential:
5.1 China:
China is promising growth in the pet industry of the world. With high population, the
pet owners in the mega-cities of the country has been creating huge scope for the pet food
exporters. Due to amplified disposable income, both the domestic as well as international pet
food companies have began to move into China’s fast growing pet food market (Visser &
Tolhurst, 2017). The pet food Industry has reported some key factors about the country’s pet
food market.
First, China leads the Asia Pacific region in terms of owning pet.
Secondly, the megacities like Shanghai and Beijing, account for largest pet ownership which
need import of pet food in these regions.
Thirdly, Disposable income of the China households especially in the urban areas has grown
fast since 2010 and forecasts to increase which means more people will be looking to pets as
companions (Aldrich & Koppel, 2015). These people will become potential customers as they
are willing as well as able to spend huge on their pet than ever.
Finally, the pet industry in the Chines domestic market has not been developed yet and will
take much time. This is the reason; the market has a huge demand for the foreign brands of
pet food. Hence importing products in this industry will be much profitable for the company.

6COUNTRY ANALYSIS
5.2 United Kingdom:
The import of pet food in the UK is much less than that of in China. Depute the fact
that increasing GDP as well as consumer confidence fuel the pet spending in the country
especially in the food items (Mason & Harrison, 2015). The Consumers of those country are
much inclined to spoil pets with luxuries such as premium foods and wet prepared foods.
This high spending habit on the pets and these trends contribute to increased humanization of
the pets. The consumers are keen to spend more money on order to keep pets healthy and
happy (Petbusinessworld.co.uk 2018). Hence it has a potential advantage for the pet food
business of this marketing opportunity.
6.0 Country choice:
Variable Weighting
United Kingdom China
Score
Adjusted
Score Score
Adjusted
Score
Potential
Market
25% 4 1 6 2.00
Wealth
Distribution
25% 2 0.50 5 0.75

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Economic
Freedom
15% 6 1.50 3 1.25
Taxation &
Tariffs
15% 4 0.50 7 0.75
Political
Stability
20% 6 1.20 8 1.50
Total 100% 4.7 6.25
China is more potent country to be entered in. the commercial infrastructure of this
country is as good as that of the UK but the political as well as economic risk is much lower
than the UK. The market size is much larger than that of the United Kingdom and showing
sharp growth for last ten years. This emerging market of China do not have much domestic
competitors as it is there in the UK. Despite the fact that the economic freedom is less in
China but there is high economic equality hence the middle class households can be the target
of the comedy. Over all, the Chinese market is more promising than that of the UK.

8COUNTRY ANALYSIS
7.0 Conclusion:
Therefore, it can be concluded that both the countries have growing potential market
for the pet food industry. The stability and support of the government can be a key factor for
the company but China has much less risky market than that of the UK. From over all
discussion, it can be said that through the trend of keeping pet in high in the UK but the
Chinses pet industry have less competitors. Thus can be better for this pet food company.

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8.0 References:
Aldrich, G. C., & Koppel, K. (2015). Pet food palatability evaluation: a review of standard
assay techniques and interpretation of results with a primary focus on
limitations. Animals, 5(1), 43-55.
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Clougherty, J. A., Kim, J. U., Skousen, B. R., & Szücs, F. (2017). The foundations of
international business: Cross‐border investment activity and the balance between
market‐power and efficiency effects. Journal of Management Studies, 54(3), 340-365.
Kirkby, R. J. (2018). Urbanization in China: town and country in a developing economy
1949-2000 AD (Vol. 3). Routledge.
Li, Y., & Tellis, G. J. (2016). Is China uniform? Intra-country differences in the takeoff of
new products. Technovation, 47, 1-13.
Liu, L., Oza, S., Hogan, D., Perin, J., Rudan, I., Lawn, J. E., ... & Black, R. E. (2015). Global,
regional, and national causes of child mortality in 2000–13, with projections to inform
post-2015 priorities: an updated systematic analysis. The Lancet, 385(9966), 430-440.
Mason, C. M., & Harrison, R. T. (2015). Business angel investment activity in the financial
crisis: UK evidence and policy implications. Environment and Planning C:
Government and Policy, 33(1), 43-60.
Petbusinessworld.co.uk. (2018). How much are Brits spending on pets?. Retrieved from
http://www.petbusinessworld.co.uk/news/feed/how-much-are-brits-spending-on-pets-
Visser, W., & Tolhurst, N. (2017). The world guide to CSR: A country-by-country analysis
of corporate sustainability and responsibility. Routledge.

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Forde, C., & Slater, G. (2016). Labour market regulation and the ‘competition state’: an
analysis of the implementation of the Agency Working Regulations in the UK. Work,
employment and society, 30(4), 590-606.