International Business - Assignment PDF

INTERNATIONAL BUSINESS
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Executive Summary
This report has tried to demonstrate a knowledge of International Business and the key drivers
for the company’s expansion plans. For such reasons, an analysis of the macro environment of
the target location shall be conducted using various tools. Following which the trade barriers that
the organisation may face will also be examined. In addition to that, the social and ethical issues
to be considered by the business will be provided. the report will also provide an assessment of
the cultural preferences in the Chinese markets. The report shall present an elaboration of the
methods of expansion to be chosen by the concerned company. Ultimately, the report will
identify the most suitable expansion option for the company, followed by relevant strategic
evaluation frameworks.
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Table of Contents
Introduction......................................................................................................................................4
Market analysis of the targeted location and Key Drivers of expansion.....................................5
PESTEL.......................................................................................................................................5
Porter’s Five Forces.....................................................................................................................8
Porter’s Generic Strategy...........................................................................................................10
Trade Barriers................................................................................................................................11
Four Tariff barriers....................................................................................................................11
Four Non-tariff Barriers.............................................................................................................11
Business uncertainties and opportunities created by trade policies of the national government
of the target market....................................................................................................................12
Ethical and Social Issues to be considered by the UK SME.........................................................13
Importance of CSR in the International market.........................................................................13
Cultural preferences to be considered by the business..................................................................14
Significance of cultural activities in the Chinese market..........................................................14
Expansion method used by the company.......................................................................................15
Different methods of potential expansion..................................................................................15
Best Suited market entry option................................................................................................16
Conclusion.....................................................................................................................................17
References......................................................................................................................................18
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Introduction
The concept of International Business has widened ever since the advent of globalisation.
International Business is defined as all the activities associated with a business, done outside its
national borders. Such activities include selling goods and services in international contexture.
Thus, exploring International Business, this report will conceptualise the basics of International
Business with help of a UK-based organisation. At first, the environmental analysis of the target
market will be done using various matrices. The drivers of the expansion will also be discussed.
Advancing, the report will analyse the possible trade barriers, uncertainties and opportunities of
trade policies of the chosen territory. Corporate social responsibilities and the cultural nuances of
the business activities within the destination market shall also be laid down. The closing
arguments of the report shall focus on the various methods of expansion as the most suitable
option available for the concerned company.
The preferential organisation for the supplementation of this report is chosen as Dairy Crest. This
organisation is a subsidiary of Saputo Dairy UK limited. Established in the year 1981, this
organisation is headquartered in Surrey, UK (saputo.com, 2021). The revenue estimation of the
company for the year 2018 has been £456.8 million and the number of employees includes 1097
people approximately.
Focusing on its 2021-2022 business key objectives, the organisation is determined to enter the
Chinese market with the product profile called “UHT milk, for children aged 3-11 years. With
this proposition, the company is intended to make its global expansion in China and avail as
much reputation and loyalty as it does in the British market.
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