International Business: Expansion Strategy for Plumbs Dairy in China

INTERNATIONAL
BUSINESS

Table of Contents
Executive summary .........................................................................................................................3
INTRODUCTION...........................................................................................................................1
Analysis and discussion ..................................................................................................................1
Overview of the company and rational for going international..................................................1
Critically discuss the country in which the firm can expand with rationale behind the decision.
.....................................................................................................................................................3
Barriers faced by the organisation expanding internationally.....................................................4
Relevant implementation approach for the Internationalisation process....................................5
Internationalization strategy........................................................................................................6
CONCLUSION................................................................................................................................7
References:.......................................................................................................................................8

Executive summary
The report is constructed on the international business in which the organisations are
involved internationally in the economic activities. Through the internationalization it helps the
companies in earning the economies of scale and growth which is the integral part of the
globalization. To many countries and citizens enormous benefits is provided through Trade and
globalization. The productivity has elevated and reinforced the spread of information and new
knowhows. The study is based on the Plumbs dairy Company which is looking for the expansion
internationally in China. In the study covered topics are related to the overview of the
organisation and rational for international expansion. It has also been deliberated about the
reason for the international expansion in the selected country. The barriers have been discussed
with the implementation of the internationalisation entry strategies in the market.

INTRODUCTION
The term international business defines the buying and marketing of goods, services,
technology capital crosswise the national borders and at global scale. Between two or more
countries it involves cross-border transactions. The international business is refereed as the study
of internationalization process of multinational enterprises. The trades might be possessed by the
state- or privately-owned organisation. The organisation discovers the trade chances outside its
home nationwide boundaries to spread the specific commercial activities such as manufacturing,
mining, health and education (Akrout, H. and Diallo, M.F., 2017). The expansion of the business
internationally helps the firms in improving profits by selling the products in the nations where
the cost is high. The surplus resources are utilized by the business which helps in increasing
profitability of business and development prospects are enhanced. To have right observation on
international business The Plumbs Dairy company is taken based on United Kingdom (LinkedIn,
2021). In the report the discussion is based on the rationale for going international and
recommending the country for the internationalisation of the business. Furthermore, barriers
have been discussed faced by the organisation expanding internationally and internationalisation
process is evaluated critically.
Analysis and discussion
Overview of the company and rational for going international
For the international expansion, Plumbs Dairy company is taken which supplies fresh
local milk, cheese, cream, and other dairy products. In 1951 Henry Plumb acquired the small
dairy business. The Plumb dairy was established in 1957 having 30 employees. The Plumbs
dairy is located in Cambridge, UK and is the part of dairy product manufacturing company. It
offers the flexibility in the customer service.
The internationalization is the process of expanding the business from the home market
into international market cross wise the globe. It is a key element for the good functioning of the
business. It helps the company in gaining the competitive advantage. The internationalization is
the process where the business involvement is increased in the international market and for the
development sustainability is provided (Arnold, D.G and et.al., 2019). The accessibility of
several aspects of production such as labour, capital and raw material are essential for
manufacturing diverse goods and services differs among countries. With the increase in the
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