Tapping Chinese Markets for UHT Milk

International Business

EXECUTIVE SUMMARY
UK SME has the objective of tapping the Chinese markets for their UHT milk for children aged
between 3-11 years and the company intends to target the specific customer groups of China and
make use of the reputation of quality and reliability of products from UK. There has been a
growing trend of shifting to UHT milk instead of ordinary milk which has a longer duration of
shelf life. The following project report determines the various factors which needs to be
considered by the UK SME such as trade barriers, social and ethical issues, cultural
backgrounds, existing producers in UHT Industry in China and the best mode or method of
internationalisation. The report covers various aspects which are related to international business
with a specific organisation context of UK SME with an objective of entering into Chinese
Markets.

Contents
Introduction......................................................................................................................................1
Business Drivers behind Company’s expansion into the given country.........................................2
1. Expansion of Technology and Liberalisation..........................................................................2
2. PESTLE Analysis....................................................................................................................3
3. Trade theory:............................................................................................................................4
Trade Barriers..................................................................................................................................5
1. Some of the trade barriers which exist in the given context....................................................5
2. Impact/Consequence of Trade Barriers...................................................................................6
3. Business uncertainties and opportunities.................................................................................6
Ethical and Social Issues.................................................................................................................7
1. Importance of Corporate Social Responsibility when operating internationally.....................7
2. Theory on Ethics......................................................................................................................7
Cultural Preferences.........................................................................................................................8
Expansion Methods for Internationalisation....................................................................................8
Conclusion.......................................................................................................................................9
Recommendations..........................................................................................................................10
REFERENCES..............................................................................................................................11