International Business: Market Selection and Entry Strategies for UHT Milk
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This report discusses the process of international market selection and entry strategies for UHT Milk. It includes a brief overview of the organization and their reason for going international, application of relevant theory/models, barriers faced by organizations, and implementation approach for internationalization process.
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INTERNATIONAL MARKETING
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Contents Executive Summary...............................................................................................................................3 INTRODUCTION.................................................................................................................................4 TASK....................................................................................................................................................4 Provide brief an overview of their chosen organization and their reason for going international market................................................................................................................................................4 Demonstrate Application of their relevant Theory/Models which are related to their process of International market selection and Entry Strategies...........................................................................6 Trade Theories...................................................................................................................................6 Entry Strategies.................................................................................................................................8 Discuss typically barriers which will faced by an organization to expand when they do their business on internationally................................................................................................................9 Language and Cultural Barriers:........................................................................................................9 Critically evaluate their relevant implementation approach for their internationalisation process for their specified target market............................................................................................................10 CONCLUSION...................................................................................................................................12 REFERENCES....................................................................................................................................13
Executive Summary In this repot it will based on International Market this is very important to know about the organization that if they want to expand their business in International Market then they need to follow all legal procedure when they expanding their business then only it is valid for management to run their organization in market, otherwise it will forced by government to shut down their organization in market. The management must know their target market and before entering and select the new place for their organization first they need to do proper examine of their organization in market about their taste and preferences then only it is possible for management to run their business successfully on international level in market.
INTRODUCTION For any organization if they do international business then it creates so many opportunities for them which help management to grow and expand their business in market. International business gives higher profit to their organization as compare to domestics profit and their organization also run at large scale in market so it becomes easy for organization to capture customer in market because when any business do international business then it creates good image in market and they easily make trust bond with their customers(Arici and Arici, 2021). This report will be based on UHT Milk which was established in UK around in the year 2012 and now they want to expand their business on international level in market. In this report it includes brief discussion on their organization and it also includes that which country they prefer and they recommended for their business. In this report it also includes the application of their relevant theory or models which related to their process of international marketing and what strategies they choose for entry and it also includes the barriers that will faced by an organization while they expanding their international business. TASK Provide brief an overview of their chosen organization and their reason for going international market In UK, there is UHT Milk is there who have a great demand in UK by their citizen because it provide a good quality of bakery products and it make good image in market so people easily trust on their product in market. The UHT Milk owners by seeing the demands they start thinking to expand their business so that they able to full fill the demands of market. The management of UHT milk wants to expand their business Chinese country because they have great source of income in the world so Chinese country citizens easily afford the products of UHT Milk and it creates a good opportunity for UHT milk that they capture more customers in market and they generate more revenue in their organization(Asseraf and Shoham, 2019). It has been observed that in UK the Chinese citizen has consumed more products of UHT Milk, So management can get best opportunity that they can easily available there products by expansion of their organization in Chinese market so that customer don not need to come UK to purchase this products. So for this they have to find out the best and suitable place where they start their business in Chinese market. The management of UTH Milk have to do
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PESTLE analysis so that they able to find the best and suitable new market in the country. Let’s do in brief about PESTLE analysis of Chinese market in below: PESTLE ANALYIS:PESTLEevaluationisbeneficialtools and techniques infiguring out and analysingvarious factorsthat mighthave aneffectoncommercial enterpriseand its performance(Curiel, 2020). Thisevaluationwillassistrespectivebusiness enterpriseto take higherchoiceon the way toresult inincreaseandimprovementofcommercial enterprise. Political Factors:These things haveconsiderableeffectonoverall performanceof SMEenterprise. Politicalthingencompassnumerousrulesthis isset for companies. China hasstrongpoliticalpartiesandtheir systemso as tohave an effect onthe respectiveactivities which they performed for their production of an organization (Desbordes and Richelieu, 2019). Economic Factors:China is having a very strongfinancial systemisconstantly developingand itssuperincreasemay haveconsiderableeffecton SMEenterprise this isworkingin Chinesemarketplace. Thisthingwillcausegrowththeshopping strengthofresidentsandenhanceincomeof respectiveorganizations. Social Factors: Thisthingconsists ofsocietylifestylein addition tothemanner whereinclientsare behaving. Attitude andperceptionofclientsin the direction of UHT milk willhave an effect ontheirincomeandoverall performanceof respective enterpriseinmarketplacearea(Donthu, Kumar, Pattnaik and Lim, 2021). It is importantfor UHT Milk SMEenterprisetodo not forgetconceptandpossibilitiesof clientseven asprovidingit’s topopulationof their Chinesecitizen who are the customers. Technological Factors:Recent and trendinggenerationwillhave an effect onthe overall performanceof SMEenterprisethis isundertakingorganizationactivity performancein Chinesemarketplacearea. This isone of theimportantthingsso as to have an effect ontheincreaseandimprovementof respectiveenterprise. Innovations in generation haveeffectoverpricechainshapeof MilkymannerUHT milk organization(Farrell, 2020). Legal Factors:Thisconsists offrameworkin addition togroupthis isadvancedfor preservingprotectionandsafetyofclientsand employees. Legalthingwillcause notableeffectonoverall performanceandproductivenessofcompany. It isimportant for respectiveenterprisetodo not forgetallof thoseelementsforeasyfunctioning of respectivecompany.
Environmental Factors:It isvitalfor SMECompanytodo not forgetthisthingeven asgrowingand creating UHT milkmerchandise. Environmentalthingencompass weather,weatherchange,legal guidelinesconcerningpollution, recycling and so on. These elementsassistSMEenterprisetoofferexcessiveexceptionalmerchandiseto clientswithoutharmingsurroundingsand society. This will help management to know about which new market place is good for their organization. They also prepare for hurdles which will impact their organization activities performance. This is very effective for management that they have to prepared plan so that they don’t have to face many problems in market and they able to accomplish their objectives in market. It will help management to sustain long term in market and they can gain competitive advantages in market. The management will able to expand their business in different country from their revenue so that they make their brand image more popular in market(Foltean, 2019). If UTH Milk also produce those products which is need by customers in market then it will able to know get huge customer support towards their brand in market. If management want to expand their organization in different countries then it will be necessary for management that they have to do proper examine of their organization by PESTLE analysis in market. Demonstrate Application of their relevant Theory/Models which are related to their process of International market selection and Entry Strategies InthismanagementofanorganizationhavetoappliedandfollowTradetheoryin organization for process of International Business in market selection and they prepare entry strategies accordingly for their organization(Gbadamosi, 2019). Let’s discuss in brief about trade theory for their organization and it will affect their process of International business in market. Trade Theories There areextraordinarysorts ofalternateconceptandthis willassistfororganizationto take higherandpowerfulselectionforboomand development. Trade theories haveusefulfor organisationat the same time asstepping intonewworldwidemarketplacein addition to overseasalternate. There arenumerousalternatetheoriesinclusive ofelementof production, absolutebenefitand comparative advantages(Gillespie and Swan, 2021). Trade theories are taken into considerationto beusefulforpowerfulallocation ofassetsin addition to specialization.
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Factor of production Thisideaisadvancedvia way of means ofEli Heckscher and Bretil Ohlinthis isfocusingof theseelementsofmanufacturingto be able toassistindevelopingpowerfulmerchandise. Thischangeideaisadvancedwith thepurposeof gaining comparativeblessingsvia way of means ofgrowingmerchandisethatappliedallthe oneselementsthathave beenabundance with inside theuse of their country.Factor ofmanufacturingideaincludedifferent factorsof use of aninmanufacturingwhich includesland,exertionsin addition tocapital(Gilmore, 2020).Allofthoseelementsaresupportiveinimpartingbudgetforthefundingin equipment’s and plants. Allthe oneselementsorassetsthis isingreatercall foraresteeply- pricedandassetsthis isinterrificdeliverare cheaper. Comparative Advantage This is anexchangeconceptthatallowsorganizationtoadvantagecomparativebenefit. This may bedescribing as apotentialoffinancial systemto providecommodity anditemsat decreaseoperationalprice. It iscrucialfororganizationtoexpandservices and productsat minimalpriceto be able toearngreaterprofits. Comparativebenefitofferspossibilityto corporationif you want topromotemerchandiseanddecreaseprice(Gökşen and Karabacak, 2018). This willassistcorporationto drawgreaterpurchaserin addition tocomprehend robustmargin of sales. Absolute Advantages Thisconceptisadvancedwith the aid of usingAdam Smith in 1776 and thereasonof making thisalternateconceptistosuggestthespecializationofmerchandiseinadditionto departmentof labour. Absolutegainmay bedescribebecause thedistinctioninpotentialof agencyin addition tointernational locationsto fabricateitemsefficiency. Thisrefers back to theabsolutegainofspecificcountryformanufacturingofproducts(Hagen and Zucchella, 2018). Benefits of theory in Chinese market Factor ofmerchandisemay bemaximumappropriatealternateideawhilstthinking about marketplaceof China. Asin step withthisideait's fardecidedthatfeeofaidorcharacteristic willcausehaveeffectondeliverandcall forof product. Chinamarketplacehasgreater sourcesandhard workon the way tohelpinengaging inenterpriseprojectinhigherway.
Highdeliverofhard workanddifferentsourceswillcauseengaging inprojectinfee powerfulway. This willassistMilky Wayemployertoprovideservices and productsin powerfulwayaselementsofmanufacturingwillhelpinwell-timeddeliverof UHT milk merchandiseto customers. Entry Strategies The entry strategies which management select to expand their organization in new market by UTHMilkandtheentrystrategiesareexporting,licensing,jointventure,Company ownership and may more. Let’s discuss in brief of entry strategies which are most suitable by their organization of UTH Milk. Exporting:In UTH Milk can do exporting whichentailstheiradvertising and marketingthe goodsyou producewith inside theinternational locationsinthat youintend topromotethem. Somegroupsuse direct exporting,whereintheypromotethe product they manufacture in worldwidemarketswithoutthird-celebrationinvolvement. The companies which have to promotetheirluxuriousproducts or they have tobuytheiritemsinworldwidemarketswith inside thebeyondregularlyselectthis method. Licensing:TheorganizationofUTHMilkcandoLicensingtakeplacewhileone organizationtransfers theproperto applyorpromotea product toevery otherorganization. Anorganizationmay alsoselectthistechniqueif it has a productit really isincall forand the organizationto which it plans to license the product has abigmarket. For example, afilm manufacturingorganizationmay alsopromoteafacultydeliverorganizationtheproperto applypicturesoffilmcharacters on backpacks, lunchboxes and notebooks(Heggde and Shainesh, 2018). Joint Venture:In UTH Milk organization there are somecorporationstry todecreasethe hazardofgetting intoanworldwidemarketplacewith the aid of usinggrowingjoint ventures withdifferentcorporationsthat plan topromotewith inside theworldwidemarketplace. Since joint venturesregularlyfeaturelike large,impartialcorporationsas opposed toaaggregateof smallercorporations,they'vethecapacitytoearngreatersalesthanmanorwoman corporations. Thismarketplaceaccessapproachconsists ofthehazardof an imbalance in agencyinvolvementhowevereacheventscanpaintingscollectivelytosetuphonest techniquesandassistsave youthis issue.
Company ownership:If theirorganization of UTH Milk haveplans topromotea product across the worldwithouthandlingthecargoand distribution ofthe productsyou produce,you would possiblybear in mindbuyingancurrentorganizationwith inside theuse of ainthat youneedto do business. Owning anorganizationset upfor yourglobalmarketplaceoffers yourcompanycredibility as aneighbourhoodbusiness thatmayassistraisesales(Heidari, ValipourandBakhtiyari,2021).Theorganizationpossessionfeeshavegreaterthan maximummarketplaceaccessstrategieshoweverit has theabilitytoresult inanexcessive ROI. Franchising:A franchise isa seriesretailagencywhereinanpersonorinstitutionclientwill payfor thepropertocontrolagencybranchesat theagency's behalf. Franchisesarise maximumgenerallyin North Americahoweverthey exist globally andprovideorganizations thepossibilitytoenlargeoverseas. The organization of UTH Milk have franchisingnormally calls forstrongsymbolrecognition, ascustomersfor yourgoalmarketplaceought to understandwhat youprovideand featureachoicetobuyit. Forfamousbrands, franchising givescorporationsamannerto earn anearningswhilsttaking anobliquecontrolapproach. Discuss typically barriers which will faced by an organization to expand when they do their business on internationally The barriers faced by an organization of a management when they expand their business on internationally level so management have to take care that and prepare themselves before when they enter their organization in international market.There are many legal procedures which will creates problem for their organization which will hamper their organization to run their business process on international level. For UTH Milk organization it is compulsory that they have to take care of all barriers which will creates problem for their organization when they expand their business on internationally level(Hu, 2020). Let’s discuss all different types of barriers face by organization of management when expanding their business on international market. Language and Cultural Barriers: Itought tomovewithoutannouncingthatin case youdon’ttalktheequallanguage as your customers,communiquegoesto be a challenge. It’ssincerelyfeasibleto run your product descriptionsviaGoogle Translate andit isaterrificdeviceinsurecircumstances,however wemightnow no longersuggestcompletelydependingupon itto symbolizeanycorporation ina brand newcountry. This will be creates problem for management of UTH Milk for their organization (Hüttner, 2018).
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Local Competition:Well,manifestlythat wouldpositionyou at adrawbackproperfrom the start. You willought to beaddresstheir exportcostsand tariffs,doubtlesslyslower turnaround times, and thetroubleofmanagingcurrencieseven astheir British counterpart cansimplydealing with having two different currencies and it just have a pounds sterling. Taxes Codes & Compliance Issues:When UTH Milk have todeal with their tax and itmay bea headacheeven iftheymost effectiveworkingin aunmarriednation. Dealing with taxes, fees, andprice listsforworldwidechangemay bea primeimpedimentfora number of companies –particularlysmaller businesses. Theyadditionallywantto beaware about buying and sellingrequirementsandpolicies. Failingto satisfycompliancepoliciesina countrythey aretrying toincreasethem intoeffectivepositioneda breakfor theirgrowth planshoweveradditionallycreateextrapricesinyour housecountry. Supply Chain Risk:When organizations of UTH Milk have toImports, exports,delivery, and logistics are allmattersthatmassivecompanieshave departmentsdedicatedto. That is due to their factofcoping withtheirdeliverchain that crossescountrywidelimitationsmay beanactualchallenge. If they havedeliveryitemsfrom theareato Chinese Form UK then it willneed todeal withgeographical distance. However, thepriceand timeworriedindelivery are not themost effectiveproblem. These are alldangersthey have to facewhilstbuying and sellinginternationally, and they willwanttostophowall this things done in order to avoid them and understand their situations. Criticallyevaluatetheirrelevantimplementationapproachfortheir internationalisation process for their specified target market When management want to expand their business in international process and then they need to specify their target market of their organization. In this organization have carefully examine all process which is required they cannot skip any procedure for expanding their business and for their target customers (İpek, 2020). In organization of UTH Milk have to approach their business on international level so it includes important process which they need to follow and they also have to specified their target customers. Choose Your Expansion Country:UTH Milk of organization isusingdependableand correctmetricscomparethemarketplaceeleganceof everycountry below theirconsideration. Look for thehigh-qualitymatchwith theirspecificproductsand services (Javalgi and Russell, 2018).
Conduct Market Analysis:The management of UTH Milk have to use tools and techniques like Porter’s Five Forces and theconventionalSWOTevaluationmay beusefulinfiguring outthebenefitsand drawbacksofputting inacommercial enterpriseinuniquecountries. As youexamineyour options, payuniqueinterestto theoutsideenvironment,given thatthis couldbe themaximumgiantdepartureout of yourcutting-edgeoperations. Plan for Market Entry:UTH Milk organization have tocutting-edgecommercial enterprise versionpaintingsnicelywith inside thenew country? Toefficaciouslyinputtheir brand new market, theycouldneedtotake into accountobtaininganearbycommercial enterpriseto seizetheircentrecommercial enterpriseexpertise. In this way,they mayget entrance fee to nearbyunderstandingor make a strategic alliance with apresentorganization(Katsikeas, 2018).
CONCLUSION From this above report it has been conclude that if organization wants to expand their business o international level then there are very crucial steps which are very necessary for management to adopt in their organization. This report also concludes the proper and brief discussion on chosen organization and why organization wants to expand their business on international level. This report also concludes the most appropriate theory and models which are related to their process of their international business market selection and their entry strategies. This report also concludes the different types of barriers which will faced by management of an organization while they expanding their business into new market and this report also conclude the relevant implementations approach for their internationalisation process for their specified target customers.
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