Organizational Trends and Drivers of the China Market

Individual International
Business

Executive Summary
This report discusses about the organizational latest trends, and drivers of the china
market with the help of PESTLE analysis that highlights the business drivers to internationalize
the brand. Analyze various trade barriers are coming during the imports in the China. Social and
ethical issues are analyzed with the help of corporate social responsibility that is important for
the organization to adapt in their operations. Culture in china and UK was identified with the
help of Hofstede culture of dimension. This report has been analysed the importance of
International expansion strategy because it helps to setup business and enhanced the overall
business performance. Moreover, it has been examined the business model canvas which become
represent the different factors and help to establish a sustainable development in global
marketplace.

TABLE OF CONTENTS
Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Business drivers behind the company’s expansion into the given country.................................1
Trade Barriers in the China market.............................................................................................3
Ethical and social issues to be considered by the Sodiaal...........................................................4
Cultural preferences considered by the Sodiaal...........................................................................6
Expansion method chosen by the Sodiaal...................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
International business refers to import or exports of goods, services, capital, technology
across the boundaries of nation and at a global scale (Gaur, Schalk, and Anema, 2018). Ultra
high temperature milk (UHT ) is first developed in 1960s and available in the market for the
consumption in 1970s. UHT milk is packaged in 7 to 9 layers of packaging which is used within
5-6 months. It contains same number of calories and calcium as of pasteurized milk. Sodiaal is a
multinational company of the dairy products founded in 1989. David Chevance is a board
member of the Sodiaal. China is a third largest country in the world for the consumption of the
dairy products. According to the research in China over 60 percent of its population are prefer
UHT milk. The demand of the UHT milk in the China rapidly growing over the decade. The
most leading brand of the UHT milk in the China are Yili, Mengniu, Bright Dairy, Guangming,
Wangzai and Chenguang.
MAIN BODY
Business drivers behind the company’s expansion into the given country.
Different business drivers which affect the Sodiaal to enter in the china market is analysing
with the help of PESTLE analysis of the market.
Political
One of the political factors that interfere in the Chinese market is government regulations.
Chinese socialist government make unsettled changes in policies overnight which affects both to
the Chinese and global traders (Christodoulou, and Cullinane, 2019). Because of these creating a
long term marketing plan is impossible in the china market. Business always has to consider the
strong presence of the communist party in the china. If any organisation going against the
communist Party its services or products are strictly banned in the country
Economic
China is the 2 leading economy by nominal GDP in the world. On the basis of the
purchasing power it has the world’s largest economy (Perera, 2017). Its economic growth in the
last four decades is incredible. This growth leads to increase in the standard of living in the
country. Covid 19 has also given negative impact on the economic development of the country in
2020. But china is the only country that manages to grow economically during 2020. Recently
china involves in the trade war with the United States and announced trade tariffs on the import
of each other goods by both the countries. For the Chinese government, made in China is a
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