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International Business - 21496486

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Added on  2022-01-13

International Business - 21496486

   Added on 2022-01-13

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International Business - 21496486
UNIVERSITY OF WEST LONDON | 16.05.2021
SME Based in UK
Module: International Business
Student Number: 21496486
Assignment Name: Individual International Business Report (100%)
Lecturer Name: Mr. Chrishain Jayalath (CJ)
Word Count: 3651
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International Business - 21496486
Executive Summary
International business is conducted by companies that operate across national borders
and is tied to trade and investment operations. This project defines the Chinese UHT
milk market from its inception in late 1999 to the present day. As a result, China's
urban population has been quickly growing, outpacing the local supply of UHT milk.
When expanding a firm to a foreign market, the study's major goal is to identify
significant business drivers, overcome trade restrictions, and determine the best
growth approach. As a result, UK SMEs have expanded their company operations in
the Chinese market, with market trends rising every day, according to UK statistics.
The PESTEL analysis method is then used to assess the market and find the key
business drivers in the Chinese market. The researcher then investigates the trade
restrictions that are likely to stymie the UK SME's ability to enter the Chinese market.
Because CSR is the ethical and social concerns that UK SMEs examine, the necessity
of Corporate Social Responsibility for SMEs extending their operations to China is
being explored. Finally, the internationalization methods are defined to determine
which ones are most appropriate for a UK SME.
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International Business - 21496486
Contents
Executive Summary................................................................................................................2
1.0 Introduction................................................................................................................5
2.0 Business drivers behind company expansion in China............................................6
2.1 PESTEL Analysis....................................................................................................6
2.1.1 Political Factor.................................................................................................7
2.1.2 Economical Factor...........................................................................................7
2.1.3 Social Factor....................................................................................................7
2.1.4 Technological Factor.......................................................................................8
2.1.5 Environmental Factor......................................................................................8
2.1.6 Legal factor......................................................................................................8
2.2 Trade Theories........................................................................................................8
3.0 Trade Barriers............................................................................................................8
3.1 Tariffs......................................................................................................................9
3.2 Regulation................................................................................................................9
3.3 Subsidies..................................................................................................................9
3.4 Exchange Rate Controls.........................................................................................9
4.0 Ethical and Social Issues...........................................................................................10
4.1 Corporate Social Responsibility...........................................................................10
5.0 Cultural preferences to be chosen by the company................................................11
5.1 National Cultures as a Point of Reference...........................................................11
5.2 The People Factor.................................................................................................11
5.3 Building Cultural Awareness...............................................................................12
6.0 Expansion method to be chosen by the company...................................................12
6.1 Methods of Internationalisation...........................................................................12
6.1.1 Export-based methods..................................................................................12
6.1.1.1 Indirect Exporting............................................................................12
6.1.1.2 Direct Exporting...............................................................................13
6.1.2 Non-Equity Based Methods for Internationalisation.................................13
6.1.2.1 Licensing............................................................................................13
6.1.2.2 Franchising........................................................................................13
6.1.2.3 Management Contracting................................................................13
6.1.3 Equity-Based Methods for Internationalization.........................................13
6.1.3.1 Acquisition of a firm.........................................................................13
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International Business - 21496486
6.1.3.2 Joint Ventures...................................................................................14
6.1.3.3 Merging with a firm.........................................................................14
6.2 Strategic evaluation framework...........................................................................14
7.0 Conclusion.................................................................................................................15
8.0 References..................................................................................................................16
Appendix 1: List of Figures
Figure 1: UK Market Trend........................................................................................5
Figure 2: Chinese market trends................................................................................6
Figure 3: PESTEL Analysis Model............................................................................7
Figure 4: strategic evaluation framework of SME..................................................15
Appendix 2: List of Tables
Table 1: Benefits of corporate social responsibility................................................10
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