International Business Strategies and Trends

This assignment requires in-depth analysis of international business strategies, trends, and factors influencing global market expansion. It involves examining case studies, industry reports, and cultural insights to inform decision-making. The student is expected to demonstrate a comprehensive understanding of the subject matter, incorporating relevant theories, models, and concepts from academic sources. By analyzing the importance of corporate social responsibility, PEST analysis, and cultural factors in doing business in China, students can gain valuable insights into the complexities of international business operations.

International
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Introduction.................................................................................................................................1
Business drivers behind company's expansion into a given country..........................................2
PESTLE Analysis........................................................................................................................2
Trade Barriers..............................................................................................................................4
Ethical and social issues to be considered into United kingdom SME......................................5
Cultural preference to be considered by business.......................................................................6
Expansion methods chosen by an organisation...........................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
In today's context international business play's an effective role in developing and
expanding a business in an effective manner. With the help international business Neal's Yard
Dairy Limited are coming up with its product that is UHT milk in market of China. With the
proper adopting of tool and technologies as well as government support they will able to attain
sustainability for longer period of time in competitive marketplace.

INTRODUCTION
In toady's context international business play's an essential role in performing business
activities. It encompasses all commercial business activities that take place in order to promote,
transfer goods and services, resource, people, ideas and technologies across national
boundaries(Beamish, 2013.). In order to engage into a foreign business an organisation need to
understand legal requirement, norms, rules and regulation of a country where a firm is going to
start its business. In this report organisation chosen is Neal's Yard dairy, a London's foremost
cheese store. It is one of the small cheeses and dairy products as well as milk producer
organisation. This report is going to analysis drivers of business expansion as well as PESTLE
analysis in order to know the impact of macro environment factors. Moreover, determining trade
barriers which are needed to taken into consideration on both ethical and social issues arises
within form. Furthermore, evaluating culture and preference methods that are necessary in
expansion of business at china marketplace.
MAIN BODY
Introduction
Neal's Yard Dairy limited is a London's artisanal that deals in cheeses retailer it is one of
the foremost chesses store. It is a private limited company that deals in dairy products, edible
oils, eggs and milk products. Now they are improving their improving their Irish and British
frame house cheeses where they sell their delicious product in an attractive manner. Moreover,
they are engaged in scientific and technical community and championing frame house
cheesemaker at world wide(Brohé, Eyre and Howarth, 2012.). They are also serving at different
retail shops as well as in restaurants in market of United kingdom. They are checking out their
product and services on regular basis in order to taste cheeses and selects its best product before
selling and manufacturing its offerings. Along with this have various subsidiaries dealing in
same product and services.
In context to United Kingdom the UHT milk market is extremely high as compared to other
other milk service provider. The UHT milk has been increasing rapidly day by day. Moreover, it
is able to attain high competitive market place due to high competitive. Thus, with premium
quality of product and services they are able to attain competition in united marketplace.

(Source: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023, 2019)
Neal's Yard Dairy limited is planning to expand their product that is UHT milk in
Chinese marketplace for the age group of children between 3 to 11years of age. It main objective
is to cover china market by 2020 to 2021 by providing high quality of milk for children. UTH is
known as Ultra High Temperature Processing, is a food processing technology that sterilize
liquid food mainly milk by heating above 135 degree Celsius that is 275 degree Fahrenheit in
killing spores milk with 2 to 5 seconds. It is mainly used for milk production that can be used in
cream, fruit, yogurt, honey, soya milk etc. Eventually, this concept was developed in 1960s in
order to provide high quality of milk which provide protein, vitamins and fat to children which is
essential for them. Apart from this there are various milk production dairy but their quality are
not up to the mark in china marketplace. Herein, Neal's Yard Dairy Limited are having an
emerging opportunities in china market. Moreover, its main objective is to expand its business in
china market in terms of quality, transparency and reliability of its product in competitive
marketplace.
Illustration 1: Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-
2023

( Source: Market share of UHT milk in China Market,2019)
Business drivers behind company's expansion into a given country
In order to expand business at china market it is essential for Neal's Yard Diary Limited
to keenly analysis and conduct research for expansion of its product and services. Before
expansion it is essential to analysis the market keenly so that an organisation can enable its
growth and expansion in chines marketplace ( Clarke, Tamaschke and Liesch, 2013). As china is
termed as one of the most attractive location for performing their business as well as attaining
success and growth in competitive marketplace in an attractive manner. Apart from this, many
investor have consider china as best investment country due to low labour cost, size and growth
of business is potential in nature. Apart from this there are certain drivers that will help an
organisation to attain sustainability for longer duration of time are by adopting of advance tools
nad technology so that they can provide their best in an effective manner. Herein, Neal's Yard
dairy Limited are adopting PESTLE in analysing the market of China.
Illustration 2: Market share of UHT milk in China Market

PESTLE Analysis
PESTLE analysis is defined as a framework of macro environment which will help an
organisation in determining elements of strategic management. It is used for monitoring and
analysing macro environmental factors which impact performance of an organisation. Basically,
it is adopted by many organisation in order to enter in to international mark place or in order to
start a new business.
Political factors: Political factors refers to norms and regulation that are abided by
government in operating business function and activities. It usually includes government
intervention such as norms, rules and regulation, intestine rate, inflation rate etc.(Cuervo-Cazurr,
2016). Herein, political factor of china are impacting business environment in terms of
government rules and regulation. For such instance Neal's Yard Dairy Limited need to
understand both formal and informal rules and regulation of china while operating their business
activities. Moreover, they need to keenly study the marketing before expanding their business
with its new product that is UTH milk for the age group of children between 3 to 11 years.
Economic factor: Economic factor impacts on economic performance of business which
consist of domestic product, interest rate, inflation rate and many more. Herein, in today's
context milk dairy has been increasing rapidly due to increase in demand and government
support (Dunning, 2013). Neal's Yard dairy Limited are coming up with its new product that is
UTH milk for children. Though there are many organisation which are dealing in dairy milk and
other products but their quality of product is not up to the mark. Thus, it creates a good
opportunities for a respective organisation to enter into new marketplace in an effective manner.
Moreover, with government support an organisation will able to attain sustainability for longer
period of time.
Social factors: Social factors consist of values, beliefs, tradition and more such
consuming and buying pattern of an individual. This factor play's an essential role in
demographic sector where changes occur on constant rate (Folsom and et. Al ., 2012). Herein, in
context to china, demand of milk in population is usually high then the other countries. It
creates a good opportunity for Neal Yard Dairy limited to enter into market of china with its
product that is UHT milk for children. Herein, Neal's Yard Dairy Limited need to understand the
taste and preferences of consumer so that accordingly product and services can be offered.
Moreover, by proper evaluation of market they can modify or attain cultural values as well as

social trends of consumer buying pattern. Thus, it will become easy for a respective company as
china is collectivism culture where life style, religious, education and emigration of each and
every people surviving are different.
Technological factors: Technological factors include advance tool and technologies that
are emerging in toady's context. Herein, Neal's Yard Dairy Limited are producing milk with
high production of technology in packing and distribution channel. Thus, in this manner an
organisation can survive in Chinese marketplace with new idea of innovation and technologies.
Environmental factors: Environment factors includes climate change such as weather,
nature as well as working style. Herein, Neal's Yard Dairy Limited need to understand the taste
and preferences of consumer so that as per it they can offer their product and services can be
offered. Moreover, it is necessary for them to keep the environment factor into consider so that
goods are packed accordingly.
Legal factor: In this factor, an organisation or a particular company faces some of the
legal law regarding customer's and employees. Such as health and safety rights of employees
while manufacturing goods and services. Herein, before expanding their business at china market
Neal's Yard Dairy limited should know about people health. Thus, it will create a big opportunity
for a respective organisation in competitive market of china by providing high quality of UHT
milk for children.
The above mention are some of the main divers that help a particular business to grow
and develop in international market place. Herein, Neal's Yard Dairy Limited are having good
opportunities in developing their product and services in competitive market place of china.
Moreover, by maintaining high quality of their UTH milk, they will able to attain high market
share along with customer base as well as attain sustainability for longer period of time.
Competition
In china market UHT milk have high competitors in competitive marketplace. The
competitors UHT milk are DANA and pure milk. Thought with the high competition Neal
Yard's dairy Limited have an opportunity to come up with strong and premium quality of
product and services. As the existing brand of UTH milk are not up to the mark so they can have
high competition in china marketplace.

Gap identification
In order to become successful in competitive marketplace of china, Neal's Yard Dairy
Limited need to analysis the market keenly as well as its strategies of its competitors. So that
they can meet up the need and preferences of its competitors. For such purpose the need to make
best use of resources with the advance tools and technologies so that they can produce their best
in an effective manner.
Trade Barriers
In today's context, trade barriers are consider to be government rules and regulation that
are imposed on international product and services. It usually consist of import policy that shows
in tariffs and import charges, testing and labelling and so on (Hamilton and Webster, 2018).
Herein, Neal's Yard Dairy Limited is planning to expand their business in china marketplace. For
such instance there are certain trade barriers faced by them are determined below:
Tariff of china: Tariff is crucially a tax duty which has been imposed on specific
categories of imports as well as exports. In international context is imposing or enhancing
against product from china. Herein, china is imposing tariffs initiating from 0 to 100% upon
imported products. Such as value added tax, general custom and duties as well as consumption
tax. Herein, Neal Yard dairy Limited are planning to expand heir business at internation mark as
it is opportunity for them as they can produce their product and services freely in to competitive
marketplace. However, one of the uncertainties is that a respective company will have to pay
high tax on their product and services.
Exchange rate controls: Exchange rate control consist of control over all transaction
that are connected with international payment as well as receipts. One of the main issues is that
self imposed exchange transaction is another trade barriers in china. As china have many barriers
such as international investment, foreign direct investment are limited. Herein, Neal's Yard
Dairy Limited are expanding their business in china marketplace. Though there are trade
barriers but due to less competitors they are having high opportunities in competitive
marketplace. Thus, its biggest trade will be the investment level and involvement.
Subsidiaries: In business subsidiaries are considered as a incentives for nation as it help
in reducing cost (Jenkins, 2013). It is a policy in which china trade barriers to global market as

international companies are not able to compare price with other similar products. Herein, Neal's
Yard Dairy limited are planning to extent its firms into marketplace of china so that opportunities
can be developed in operating business function and activities in an effective manner. In this case
uncertainties is that a respective organisation may not compete with target market price which
will reduce its possibility as comparison to others.
Regulation: In order to attain success in competitive marketplace they need to maintain
certain rules and regulation that are abide by government of China. As they are more concerned
about the value of goods, including packaging charges, freight, insurance premium and other
services such as goods are placed of destination with appropriate period of time. Thus, Neal's
Yard Diary limited need to adopt such norms, rules and regulation in performing their business
activities.
The above mention are some of the trade barriers in the marketplace of china market
while expanding their business. Moreover, they need to keenly develop the marketplace so that
they can effectively come up with their product and services that will help firm in gaining high
competitive advantage in market.
Ethical and social issues to be considered into United kingdom SME
In today's context, while expanding business into international marketplace it is very
essential to follow both ethical and social roles and responsibilities. This issues can be related to
decision making process, violation of rights, compliance and governance as well as diversity of
workplace. Herein, Neal's Yard Dairy Limited need to give more importance towards corporate
social responsibilities so that they can performing their business operation effectively in china
marketplace.
Corporate social responsibility(CRS): Corporate social responsibility refers to ethical
and sustainable who deals with environment and social impacts. Its main significance is that it
help in improving an organisation public image, facilities changes as per customers satisfaction
as well as attract better human resource. In order to overcome both social and ethical issues, an
organisation should maintain corporate social responsibilities in order to maintain stability
(Killing 2013). It usually consist of various benefit for carrying out business objectives as well
as activities. In recent study, it have been examined that 91 % of global customers expect that
firms are operating address on both environment and social issues. Apart from this 84% are
seeking responsibilities products whenever required.

Now a days consumer are highly aware about the importance of corporate social
responsibility as well as product goods and services which are ethical in nature. Herein, Neal's
Yard Dairy limited are taking more interest towards social and ethical issues so that they can
impact more on profit margins as well as attract large number of customers towards it. It will
also help an organisation to have a good brand image in competitive marketplace if they are able
to satisfy their customer with its high quality of product and services. Moreover, in this manner a
respective organisation will bale to attain sustainability for longer period of time as well as attain
high customer's base too.
Cultural preference to be considered by business
Culture of every country differ from other. Neal's Yard Dairy Limited will be expanding
its business at Chinese market, for such purpose it is important examine the culture factor in
order to attain success (Majaro, 2013). Herein, each and every activities should be conducted
very effectively and efficiently in order to attain success at international marketplace. Apart from
this, there are various culture factor that are need to take into consideration are determined
below:
Buying behaviour of consumer: In china, the buying pattern of buyer are different
they are mostly attracted towards packaging as they are more concern about hygiene product and
services. Herein, Neal Yard Dairy Limited need to conduct proper research with the chines
people before collaborating their business into china market. Rather than they can prefer
exchange their ideas or view through survey with its new product that is UTH milk.
Preferences and taste: It is important for Neal's yard Dairy limited to conduct proper
research so that they know about the taste and preferences on customer's so that accordingly
they can service their product in to competitive market place. Thus, with strong and premium
quality they will able to attain sustainability for longer period of time.
Thus, the above mention are some of the cultural challenges which are need to be taken
into consideration before expanding into market of china. Moreover, while maintaining cultural
and ethical issues an organisation will able to attain sustainability, growth, success and
profitability in competitive marketplace.
Expansion methods chosen by an organisation
It is necessary for an organisation to adopt appropriate expansion mode or participation
strategies in foreign market entry mode which consist of risk in commitment and control of

resources which is required and return on investment( Papadopoulo and Heslop, 2014). Herein,
Neal's Yard Dairy Limited can use different method of expansion that are adopted by them are
determined below:
Exporting: Exporting is the process of selling good and services produce in one country
and deliver to another country. In such case there are two different types of goods exporting that
are direct and indirect. In direct exporting, a company can capitalise economy of scale in-terms
of production that is in home country by establishing proper system for export functioning and
producing quality goods and services. Similarly, indirect export involves domestic based on
export intermediaries which has no control over goods and services in foreign marketplace. This
process can help in fast marketing accessibility in providing goods and services in china
marketplace. Thus, Neal 's Yard Dairy limited can easily expand their business in order to fulfil
needs customer's as per need and preferences of their choice.
Joint venture: Joint venture is one of the best entry mode which can be adopted by
companies for entering into new marketplace by joining hands, sharing ownership and
management with other company (Picciotto and Mayne 2016). This process can be used by two
or more organisation in achieving their common goals and objectives. Herein, the common
objectives can be risk and reward sharing point, joint product development, foreign entry,
sharing technology and conforming with governmental regulation. Herein, Neal's Yard Dairy
Limited can easily adopt this entry mode as it would create benefit in having strategic advantage
such as optimum use of resources in an effective manner. Moreover, they can adopt various
advance tools and technologies in order to remain competitive in marketplace.
Apart from the above there are various mode of expansion methods such as join venture ,
strategic alliance, merger and acquisition and many more. Thus, joint venture twill help Neal's
Yard dairy Limited that helps in proper expansion of business in other country for achievement
of gaols and objectives within stipulated framework of time.
CONCLUSION
From the above discussion, it has been concluded that an organisation need to follow and
examine proper rules and regulation in expansion of foreign marketplace. In toady's context,
Chinese market is fast growing in the world which has huge number of population, low cost of
labour. For entering into foreign market, it is very important to analyse PESTLE so that various
factors can be known for better outcome. While operating business, trade barriers can be found

which need to be resolved properly. Further more, corporate Social Responsibility should be
followed by all types of organisation in order to create value, goodwill and loyalty of consumers
toward firms. Thus, with the adoption various mode such as exporting, joint venture,
organisation can expand their business in competitive market.

REFERENCES
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Industry Trends, Share, Size, Growth, Opportunity and Forecast 2018-2023. [Online]: Available
through:<https://www.imarcgroup.com/gcc-uht-milk-market/>
Market share of UHT milk in China Market,2019. [Online]: Available
through:<https://www.psmarketresearch.com/market-analysis/uht-milk-market>.