International Business UHT
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Added on 2020-10-23
International Business UHT
Added on 2020-10-23
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INTERNATIONALBUSINESS
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1Industry background....................................................................................................................1PESTLE analysis for identifying the key business drivers ........................................................1Different trade barriers in selected country.................................................................................3Possible consequences of trade barriers in the selected market..................................................4Business uncertainties and opportunities created by trade policies ...........................................5Ethical and social issues considered by UK SME......................................................................5Significance of the culture within various activities...................................................................7Internationalisation methods.......................................................................................................8CONCLUSION ...............................................................................................................................9REFERENCES..............................................................................................................................10
INTRODUCTIONInternational business refers to cross-border commerce and other business transactionbetween the government or firms. It refers trade of products, services and technology as well ascapital or knowledge across the national border at the global level. Globalization means tomodification in the world where firms are moving away from self-contained nations and towardsmore integrated world. International events and competition which is more complex and diversethan domestic atmosphere of company (Cavusgil and et.al., 2014). This study is based on SMEUHT Diary. It is the family owned and operated home delivery service. Report will explainindustry background by relevant facts and figures. It will indicate PESTLE for identifying thekey business drivers. It will highlight different trade barriers, possible consequences, businessuncertainties and opportunities created by trade policy of national government of China. It willdetail the ethical and social issues as well as cultural preferences to considered by the UK SME. Industry backgroundThe industry is the business of farming which takes place in the UK. The production inUK around the tenth largest in the world. There are around 12000 farms in the United Kingdom.There are currently around 1.8 million cows living on the UK's 14550 farms. As cows mustgive birth to calf to produce milk, there are also around two million calves born in each year inthe UK. 90% of cows in the UK that are the Holstein-Frisian breed and other breeds involveAyrshire, Guernsey and jersey cows. farming is the single largest agricultural sector in the UK atthe £3.8 billion with annual milk production around the 13.5 billion litres (THE INDUSTRY INBRITAIN, 2018). The value of UK exports of milk exports of milk production is much lower thanvalue of imports although the UK is largely self-sufficient in milk. The UK had trade shortage ofabout £1.5 m in products. The British industry spends millions on advertising every year. It was£124.2 million in 2012. Yogurt products account for the biggest proportion of advertising with44% of total amount. The UK product is supported and promoted by Co, council and UK. PESTLE analysis for identifying the key business drivers China is among the most attractive areas in the world. It has also grown to become one ofthe strongest power. This increase and boosted international business. The legal system has beendeveloped. International investor try to business in China mainly because of different thingswhich are size of market, low cost of labour and China's growth potential together. Selected1
country has become increasingly incorporated with other portion of the world. There are manychallenges for businesses in China which are attaining strategic goals of cost reduction, localizeddifferentiation and strengths of core competencies in particular areas and business operations(Colgan and Rumens, eds., 2014).Political Factors:It involves government regulations, different legal issues which impact on nations. Boththe formal and informal regulations that companies must continue by impact on nations. Thepolitical force is the most undecided unit. The government focused on the development of e-commerce over the previous years. The legal framework for e-commerce is still in early stage.Select has little experience for drafting e-commerce regulations for subjects such as tax,intellectual property rights protection. These challenges effect on the SME UHT Farms becausethey want to expand their business in relation to introduce the new product that is UHT milk forchildren aged 3-11 years. Economic Factors: The economy of China experienced significant growth rate of Gross Domestic Productover the previous five years. If the China proceeds to excel at this rate, so that it will exceedGDP of US for that different factors are helped such as sigh rate of saving, skilled and abundantlabour, more export business and potential urban growth in the selected nation. Any kind ofeconomic growth can have major effect on small-medium enterprises like SME UHT in relationto new product development which is UHT milk for children aged 3-11 years in the selectednations (Ferlie and Ongaro, 2015). The GDP rate of China suggest that each citizens is addingmore and more values to the society. The labour cost is extremely low in the China. The growthrate is impressive but its can slow down for that some distressing trends which are high inflationrate and property prices in selected nation.Social Factor:The social and cultural feature of selected nation plays significant role as demographiccontinuously modification. For instance: population growth and age distribution fluctuate. Thesecan change social trends and cultural values. Social behaviour and family size rarely effectdecisions are taken. Social element lifestyle, education, religion of consumer which are highlyeffected on small-medium enterprise like SME UHT in relation to new product developmentwhich is UHT milk for children aged 3-11 years in the selected nations. There are 420 million2
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