International Business Report: UHT Milk Manufacturers in London

INTERNATIONAL
BUSINESS REPORT UHT
MILK MANUFACTURERS /
UK SME BASED IN
LONDON KEY OBJECTIVE
TO TAP INTO THE
CHINESE MARKET

Executive summary
Current case study is based on Stroud Micro Dairy (SMD) which is manufacturer of UHT
milk. Company has objective to expand in international market for targeting specific age group
as customers. The current report ahs included the key drivers from expansion through conducting
PESTLE analysis. It has give focus on trade barriers which impact smooth functioning of
organization in international market. The business has to review regarding the methods of
internationalization, cultural preferences of the country and also the corporate social
responsibility that has to be abided by the business.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Describing the key business drivers which is encouraging firm to expand in foreign market...1
Describing the Trade barriers of selected market........................................................................3
Ethical and social issues to be considered by the UK SME........................................................5
Cultural preferences to be considered by the Stroud Micro Dairy..............................................6
Expansion methods to be chosen by Stroud Micro Dairy............................................................7
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
International business refers to operating in foreign market for the purpose of selling and
manufacturing particular product and services. The selected company in current case study is
Stroud Micro Dairy (SMD) which is UHT milk producer of London. Company deals in
manufacturing delicious fresh milk, yoghurt and kefir by giving focus on quality of products.
Firm is currently operating in local market by serving qualitative dairy goods through adopting
effective methods. Current report is based on international expansion for accomplishing the
business objective of targeting children of age group 3-11 of Chinese market. Dairy industry has
huge scope due to awareness of healthy life style but it requires more consideration to be
successful in sector. The chosen market which is China provides various opportunities for
growth and has good contribution has increased by 7.85% in its GDP. Present report will include
key business drivers motivating for expansion in international market. Trade barriers will be
shown for understanding challenges while operating in foreign industry. Social and ethical issues
in concerned context will be presented in current case study. The present report will give focus
on culture preferences to be considered by company. Expansion methods will be included by
current report.
MAIN BODY
Describing the key business drivers which is encouraging firm to expand in foreign market
There are various factors which enable the firm to expand in international market for expanding
its scale of operational activities. PESTLE analysis can be conducted to identify key external
factors that play essential role in encouraging Stroud Micro Dairy to operate in Chinese market.
To look into all political, social, technological, legal, environmental, economical factors
company can conduct PESTEL analysis to derive key business drivers to adopt opportunity and
overcome challenges.
Political Factors
Political stability plays crucial role in identifying business opportunity for growth in
industry. Being a part of dairy industry Stroud Micro Dairy (SMD) need to give emphasis on
these factors. The political elements of Chinese market is political stability, prevailing policy
framework, governance system, taxation, intellectual property protection rights, etc. In addition
to this, SMD can concentrate on all positive and negative factors such as there is political
stability so more fluctuation of policies is less which enhances the potential of company.
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