International Business: Expanding Business Across Borders

International Business

EXECUTIVE SUMMARY
This business report explains process of business expansion internationally; it
summarises various issues and ways of expanding business across borders. Economic and
political condition of China is also explained together with various business drivers which can
impact business growth of company. Issues which can become hurdle in running a successful
business in china are also explained along with various expansion methods.

Table of Contents
Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................1
Business drivers behind company’s expansion...........................................................................1
Trade barriers in expansion.........................................................................................................3
Ethical and social issues to be considered...................................................................................5
Cultural references to be considered...........................................................................................6
Expansion methods to be chosen by company............................................................................7
CONCLUSION................................................................................................................................9
RECOMMENDATIONS.................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International business relates to cross-border trade of manufactured products or any kind of
resources at global scale between two or more countries. International business can take place for
providing services as well such as banking, finance, insurance, construction etc. Company
manufactures goods or services and sell these across borders for expansion of business and earn
more profit. This report is in context of County milk products company which is situated in UK,
and produces ultra-high temperature (UHT) milk. Company works with best farmers to produce
high quality products and uses UHT process to pasteurize milk which is one of company’s
bestselling products. County milk products is planning to expand its business in China by
introducing UHT milk in that country. organisation wants to use UK’s reputation of quality,
reliability and transparency.
UHT milk is sterilized milk which is produced through thermal treatment which kills
spores and germs in milk and preserve important vitamins, nutrients. This milk can be directly
used for its cartoon or container there is no need to boil that milk. This type of milk can be very
useful at places where, there is scarcity of milk and do not have refrigerating systems. Market of
UHT milk is growing and it has reached USD 3.5 billion in 2020 with a CAGR of 13.5%.
Market is projected to grow at USD 6.7 billion by 2025 acceding to the forecast conducted in
2020. In UK almost 120 million of UHT milk is produced annually and Crediton dairy in Devon
is largest producer of UHT milk in UK. In china production of dairy products in comparison of
its population is not sufficient but it is growing rapidly since demand for such products has
increased. Pasteurized milk industry of china is constantly growing according to current needs.
Country has a population of around 1.4 billion and current GDP growth rate is 6.1%.
Business drivers behind company’s expansion
Business drivers are condition or processes which play a vital role in continuous growth and
success of company. Business can use its key drivers for expansion, modification or change in
business for purpose of increasing profit margin and growth. These drivers are also helpful in
showing early signs of low performing operations or individuals of company (Aarikka-Stenroos,
and et. al. 2018). Production of goods and services has increased around the globe so companies
are expending their business across borders even in remote areas. There are number of factors
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