International Business: Freshways Expansion in China

INTERNATIONAL BUSINESS
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EXECUTIVE SUMMARY
The study revolves around the UK based organization Freshways which is basically a
part of dairy industry. The organisation has targetted an aim to to expand its business in the
Chinese market. The report consists of various cultural factors including power distance,
Individualism/ collectivism, masculinity/ Femininity in terms of China's cultural factors. The
report further includes the business growth drivers which can be analysed through Porter's five
forces model and the PESTLE analysis of Freshways which is a UK bases organization. The
report further consists of the Ethical and Social issues like corporate social responsibility,
Environmental issues and Human rights.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK 1............................................................................................................................................4
PESTLE Analysis of Freshways in order to determine the important business drivers.............4
Porter's five forces model of Freshways in order to determine the important business drivers..6
TASK 2............................................................................................................................................9
Determine the cultural factors that will have an impact on Freshways business on expansion in
China...........................................................................................................................................9
TASK 3..........................................................................................................................................10
Determine the trade barriers which can be faced by Freshways while expanding its business.
...................................................................................................................................................10
TASK 4..........................................................................................................................................11
Determine the Social and Ethical issues that could be faced by Freshways during its
expansion...................................................................................................................................11
TASK 5..........................................................................................................................................12
Evaluate the expansion strategy of business at International Level..........................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
International Business is referred to buying and selling of goods, services, technology
knowledge and capital beyond the national borders. International business refers to cross border
transactions of goods and services between two or more countries. There are basically five types
of International business which are- Export and import, Licensing, Foreign Direct Investment,
Franchising and Joint ventures or Strategic Partnerships. International Business refers to the
business activities that occur beyond the geographical borders of a nation. International trade
involves movement of goods and services, personnel, capital, Intellectual property and
technology across the international borders.
Freshways is a London based dairy company which is owned by Nijjar Group Holdings.
Freshways Limited is located in Coventry, UK and it is a part of Dairy Products Manufacturing
Industry. It produces a full range of dairy products including fresh milk, spread, Butter, Cream,
Yogurt, Cheese and Eggs along with bread and flat breads. Freshways has planned their key
objective to focus and expand their target market. Freshways has planned to expand into Chinese
market. Freshways aims to have an access to the international suppliers. Freshways has an
intention to utilise the reputation of UK as in land quality, reliability and transparency. The
study revolves around the International Business Strategy of Freshways (Aguilera and Grøgaard,
2019).
TASK 1
PESTLE Analysis of Freshways in order to determine the important business drivers.
Pestle analysis helps in determining the external factors which have an impact on an
organization. The PESTLE analysis comprise of Political factors, Economic factors, Social
Factors, Technological factors, Legal Factors and Environmental factors (Apetrei, Kureshi and
Horodnic, 2015). The pestle analysis of Freshways is explained below-
 Political factors: Political factors have a strong influence on the long term profitability
and sustainability of Freshways. The organization is sensitive enough to be effected by
the political environments of different countries. The various political factors which
affect the operational strategy at Freshways are- Changing Policies, Pressure groups and
protests, Bureaucracy and Corruption, Taxation policies and trade restrictions.
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