Expansion plans to the UK: Feasibility, Opportunities and Threats

This memo discusses the feasibility, opportunities and threats of expanding a pharmaceutical company from Australia to the UK market. It includes market analysis, potential opportunities and threats, and recommendations.

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MEMO 2
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Subject: Expansion plans to the UK
The market research showed that the expansion to the UK is feasible and will make the
pharmaceutical company acquire the desired production level in the market. The manager had
found the proposal risky due to the Brexit issues which are making business entry hard. Proper
evaluation of the threats and opportunities in the UK market assists in achieving the desired
production level during the expansion. According to Bernaciak (2015), it is important for an
organization to focus on the external business environment of the country in coming up with an
effective business expansion strategy.
Market analysis
The market analysis is needed in identifying the potential risks and return of expanding
operations in a new market segment. My colleagues and I performed a thorough market analysis
in the UK to discover whether it is necessary for an organization from Australia to expand in the
region. The analysis was positive due to the increased opportunities that an organization gets
from the investment. The market analysis considers the external business factors in determining
the flow of operations in the nation. It is important for an organization to perform PESTLE
analysis in discovering the factors that influence the performance of the company (Khan, Alam
& Alam 2015). After performing the PESTEL analysis in the UK, we found it as a nation that a
business can expand to accomplish the intended long-term production objectives. The market

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analysis aims at identifying the market needs towards developing products and services that will
meet the needs of the consumers. The products should be differentiated and affordable to acquire
a stable market share in the new nation.
It is necessary for the management to justify that it is important for an organization to
start up or expand businesses in a specific market segment (Grant 2016). The market analysis we
performed indicated that it is possible for a company to acquire increased sales volume and
profitability by venturing in the UK pharmaceutical market. A company is required to have the
need to succeed by entering in new local regional and international markets. The changes in
consumer choices and preference are analysed in developing a proper strategy that will
accomplish the expansion objective of the company. The Australian pharmaceutical company
will enhance its competitive edge in the international market by expanding operations in the UK.
Potential opportunities
The UK is a nation which is stable making it possible for a business to acquire increased
revenue by investing in the nation. The Australian company is required to focus on expanding to
the UK for enhanced performance in the pharmaceutical industry. It is necessary for the
management to consider the political, social, economic, technological, legal and environmental
factors affecting business in the UK. The external factors in the UK are highly favourable
making the expansion to the UK a feasible project for the company. According to Badenhausen
(2017), Forbes ranks the UK as the best country for doing business due to the continuous
increase in economic growth and favourable corporate tax. The company will be able to take the
opportunity of operating in the UK for the achievement of the desired production level in the
market. The UK government has developed plans to enhance the technological infrastructures in

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the nation. The UK has budgeted £31 billion as the investment fund used to increase the
efficiency of business products in the nation (Partington & Monaghan, 2017). The technological
infrastructures in the UK will be used by the company to operate online which is a cheap
technique to enter into a new market segment.
Potential threats
The evaluation of the threats is used to determine whether the investment will be
beneficial to the company. Giles (2017), state that there has been an increased level of
uncertainty in the UK since the Brexit with a reduced level of investors. The uncertainty is due to
the reduced relations with Europe countries after leaving the EU. The reduced barriers to
business entry in the UK lead to competition in the nation. It is important for a company entering
the UK market to consider developing an effective strategy that will focus on increasing the
competitive advantage in the nation.
Recommendation
By considering the market analysis, the Australian company will be able to enhance its
productivity by entering the UK market due to the opportunities in the nation. In dealing with the
threats in the new market segment, the company will develop a strategy that is focused on quality
products to the targeted consumers. Quality production will be used by the company to increase
the consumer base in the new international market through differentiation of products and
services.

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References
Badenhausen, K. (2017). The U.K. Tops Forbes' Best Countries for Business. Retrieved from
https://www.forbes.com/sites/kurtbadenhausen/2017/12/19/the-u-k-tops-forbes-best-
countries-for-business-2018/#494dcfd26de7
Bernaciak, M. (Ed.). (2015). Market expansion and social dumping in Europe. Routledge.
Giles, C. (2017). Brexit uncertainty hurting UK economy, says IMF. Retrieved from
https://www.ft.com/content/1615ddc2-36dc-3aea-b077-04657dfd0a56
Grant, R. M. (2016). Contemporary strategy analysis: Text and cases edition. John Wiley &
Sons.
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external
environment of Apple Inc. International Journal of Economics, Commerce and
Management, 3(6), 955-961.
Partington, R., & Monaghan, A. (2017). Budget focus on skills and technology aims to bolster
UK productivity. Retrieved from
https://www.theguardian.com/uk-news/2017/nov/23/budget-focus-on-skills-and-
technology-aims-to-bolster-uk-productivity