Global Business Plan for Lush Handmade Cosmetics Limited

GLOBAL BUSINESS PLAN 1
Global Business Plan
Student’s Name
Institution Affiliate
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GLOBAL BUSINESS PLAN 2
Global Business Plan
Executive Summary
The company selected for this assignment is Lush Handmade Cosmetics Limited. The
company is a privately owned corporation which deals in various items such as organic
cosmetics. It is also a global firm which offers its product to all the individuals across the world.
The new venture of the company is to expand globally into other parts of the world especially in
the market business situated in China. Currently, the company is carrying its activities in close to
40 nations, however, it primarily aims at expanding into China business market. The expansion
of the company into China is attributed to the fact that new cultural, legal and ethical problems
will be generated, however, the firm has decided to take a risk so as to offer its cosmetic products
to the citizens of China.
The organization is in the private sector and therefore, the application of partnerships is
essential especially to the limited partnerships and the corporations and they also form the
primary sources of investments and funds for the company. There are two methods of entry
which Lush Company can use to enter into the business and this includes, the use of licensing
and corporation. Lush is also a UK based company and hence the American Foreign Corruption
Acct will not be applicable to it and hence it will only comply with the UK Bribery Act. Such an
act will help in ensuring that all the rules and regulations are adhered to continuously during the
strategizing and corporate decision making issues.
Based on the company’s PEST and SWOT analysis, certain key areas in regards to the
opportunities and strengths of the company have been identified and this, therefore, displays
some of the essential sections which the firm can grow and expand in the future. A fundamental
growth area of the company is related to product marketing typically for certain specific regions
and target customers who the cosmetic items are being offered to by Lush Limited Company.

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There are certain things which the company should do in order to become successful in the
Chinese market and this entails meeting the needs and requirements of their target audience
including the key consumers of their products.
Further, the company's exit strategy and level of finances advocate for an expansion into
the Chinese market. The success of the corporations is affected by the foreign exchange market
which has a key role in the currency exchange rates and money supply in the economy. Lush
Limited Company's exit strategy entails the sale of the corporation to a particular public
organization. The other exit strategy could be to shut down the operations of the business and
liquidate its assets and pay off for all the liabilities.
Mission Statement of the Company
The mission statement of Lush Handmade Limited Company is to make their products
using hand by use of vegetarian preservatives and ingredients. Using the open commitment and
transparency, the company offers information on their commitment to vegetarian, cruelty free
and natural products to a variety of individuals.
Lush Handmade Limited Company
Cultural, Ethical and Legal Challenges
The company is located in Poole, Dorset, United Kingdom. The key founders of the firm
are Liz Weird, who was a beauty therapist and Mark Constantine, a trichologist. The cosmetic
products of the company are provided for various nations precisely over 40 countries. Such
countries may include, Japan, South Korea, and Russia who form the primary players in the
Eastern part of Asia (Wakefield-Rann, 2017). Lush Limited is seeking to expand into China for a
variety of reasons, however, such an expansion is likely to be faced with certain challenges in

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regards to culture, legal issues and ethics among others. In the past, China has been faced with
certain political upheavals, however, that has changed since the government has become stable
with more focus on the economic development and maintenance of stable economic conditions.
The above mentioned issues will typically create a stable environment which will allow for
expansion of Lush Handmade Limited in China. Additionally, the country China has a
communist government and hence its ruling is based on certain strict regulations. However,
recently there have been attempts to unite the nation and thus stop more fighting with the aim to
adopt capitalism into the country
A key legal challenge which the company is likely to face is that relating to the
registration of the company and also the approval of their products and this is because a lengthy
procedure is involved. Also, the rule of law is weak and this includes the inconsistency in the
application of the regulations making the whole process inconvenient. Besides, the legal
challenges, there are also ethical and cultural challenges (Di & Arbajian, 2014). For example,
there is a value given to a community by the country. It would be prudent for the company
therefore to comprehend the differences in culture of the citizens of China. One of the key
cultural difference among Chinese is that the elderly in the society is to be treated with a lot of
respect and dignity. Additionally, the Chinese community tends to save a lot and this is unlike in
the western communities. The Chinese do not typically spend on certain useless items such as the
cosmetics using their hard earned cash. The company would only be able to sell if they respect
the culture and beliefs of the Chinese society.