International Business Report
Added on 2020-12-24
13 Pages4442 Words349 Views
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International Business
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1LO 1.................................................................................................................................................1PESTLE Analysis........................................................................................................................1LO 2.................................................................................................................................................3Various types of Trade Barriers which are to be analysed by Trewithen with launch of its newproduct.........................................................................................................................................3LO 3.................................................................................................................................................4Ethical and social issues in Trewithen while operating into China with UHT milk....................4Cultural preference in business ...................................................................................................6LO 4.................................................................................................................................................8Expansion Methods to be chosen by Trewithen..........................................................................8REFERENCES..............................................................................................................................10
INTRODUCTIONFor any business to go on international level it is very much important and essential partas this means that they will be trading into country where they have not gone before. It involvesthe cross- border transactions of products and services in two or more countries. Trewithen Dairyis the family business which was started by Clarke family (Ang, Benischke and Doh, 2015). Thebusiness was established in year 1976 and started selling dairy products in year 1994. Thecompany is engaged in producing the various dairy products. By 2001 company started sellingthe milk bottles and cream to their customers. Company wants to expands their new product ofUltra-high temperature processing (UHT) in China where the growth of the country is remainssteady. The report covers the various analysis while Trewithen is entering into China with itsnew product. This will help the company to realize all the threats to the company which will bethe problem for the company to enter into China. UHT is also called to as ultra-high temperatureprocessing which uses the technology of liquid food and mainly milk with heating it over 135°C.The company also comes to know about the various trade barriers while entering intoChina with its new product of UHT milk and how to overcome all the trade barriers beforeentering into the market. It also covers that how the company can expand its business into Chinawhile selecting one best option for the company which will be giving company more profits(Augustin-Jean and Xie, 2018). Business Drivers that affects can affect UHT MILK launch inChinese marketAs the China's urbanisation is expanding and middle class families are growing which isalso increasing the need of dairy products of high- quality. The most important factor which addsin the milk industry is the removal of one- child position. On the other hand, one more point isattracting the China's dairy industry is the abolition of EU milk quota system.LO 1PESTLE AnalysisTwo years back the scenario of dairy industry in China was very bad as there was noproper transportation of dairy Products. One of the supermarket in China took two to four daysof transportation of milk from supermarket to Chinese consumer's home. Currently, China ishaving fastest sales channels to pricing as the entry barriers in the country for foreign countriesare removed (Bakker, 2018). There is also new cross- border e- commerce been implemented by1
the country which will be helping Trewithen to expand the business in their China. As thecompany is analysing its expansion of new product into market of China. The changing need anddemand of customers into the market will help company analyse the growth of milk product inChinese market. According to the EU SME Centre Report China is the largest consumer ofimported food products (Bakker and Datta, 2018). China can also become the largest consumerof milk products by year 2018. From year 2014 to year 2019 China has been gone throughincrease of 9.76% of increment in the dairy products. There are many reasons which tells thatwhy China will be best suited for the expansion of milk product into its market especially withlaunch of UHT milk.Pestle analysis of UHT MilkPestle analysis is a type of framework that can use to analyse and monitor the macroenvironmental factor that may influence the business performance and efficiency (Ngo, 2018). Itis beneficial for Trewithen Dairy firm that will expand their UHT milk product in china. In thisway, it can be considered the different factors that impact on the business through UHT productin the china. Political FactorThis factor impact on the product of UHT milk in china because government makes somepolicies and regulation on the diary item that will affect on the business of Trewithen firm andalways keep extract the milk out of them. In china, which can import the other agricultureproduct instead of own item. In this way, UHT milk product also affected by the rules andregulations. Economic FactorThis factor is affecting the Diary industry because of the purchasing power of chinaeconomy. UHT milk is the basic requirement of every people but they make still efforts topurchase item. As a result, the industry sales the milk in china with provide the UHT milk at lowprices. Moreover, it also increases the purchases that can boost the sales of UHT milk in china. Social FactorA move towards the lifestyle will impact on the sales of dairy product in marketplace.Many people will focus on the lifestyle and choose the dairy product in their diet. In this way, ithelps for Trewithen diary firm to launch the UHT milk in chain because many people consumethe milk in their food diets (Pang and et.al., 2018). For example- in china, Muslims community2
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