UHT Milk Market in China
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AI Summary
This report discusses the emerging trend of UHT milk in China's market and analyzes the business operation of The Ethical Diary in entering the Chinese market. It covers business drivers, cultural factors, trade barriers, and expansion strategies. The target city is Shanghai, and the report highlights the importance of aligning with Chinese culture and overcoming ethical and social issues.
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Contents
Executive Summary.....................................................................................................................3
Introduction..................................................................................................................................3
Business Drivers..........................................................................................................................3
Identify the target city or province in China................................................................................5
Cultural factors............................................................................................................................5
Trade Barriers..............................................................................................................................7
Ethical and social issues..............................................................................................................8
Methods of expansion..................................................................................................................9
Conclusion.................................................................................................................................11
REFERENCES..............................................................................................................................13
Books and Journals....................................................................................................................13
Executive Summary.....................................................................................................................3
Introduction..................................................................................................................................3
Business Drivers..........................................................................................................................3
Identify the target city or province in China................................................................................5
Cultural factors............................................................................................................................5
Trade Barriers..............................................................................................................................7
Ethical and social issues..............................................................................................................8
Methods of expansion..................................................................................................................9
Conclusion.................................................................................................................................11
REFERENCES..............................................................................................................................13
Books and Journals....................................................................................................................13
Executive Summary
The proposed report will discuss the emerging trend of UHT milk within the China’s market
domain. It will demonstrate a detailed analysis of the business operation carried out by “The
Ethical Diary” in regard with entering Chinese market in order to facilitate the sales operations
of UHT milk within the same. It will provide an in-depth understanding about the business
drivers, factors, barriers and social concerns faced by the company in the business environment.
The report will also provide insights about the expansion strategies adopted by “The ethical
Diary” in order to establish a prominent position for itself within the milk industry of China.
Introduction
UHT can be characterised a technique adopted by the enterprises in dairy and food industry to
enhance the quality of dairy products by elimination of bacteria and microorganisms from the
same. UHT milk can be termed as a form of milk in which the milk is heated on high
temperature in order to alleviate the pasteurisation levels of the same in order to encourage the
quality of the milk (Doty and Astakhova, 2020). According to the reports, it can be examined
that more that 60% of China's population consumes UHT milk which in turn has created a huge
business opportunity within the respective country. There is wide market available in China
which can be capitalised by budding organisation in the field of dairy in order to facilitate
expansion of their cross border business operations. The report highlight upon “The Ethical
Dairy” one of the successful SME'S in UK and reflects upon its strategy and plan to penetrate
within the UHT milk industry in China so as to realise higher profits and opportunity for growth
within the same. It also details about the necessary procedures and elements that will be taken
into consideration by the company in order to compete with Inner Mongolia Yili Industrial
Group which is one of the biggest competitors within the industry and emerge as one of the
successful business unit within the Chinese market environment.
Business Drivers
Business drivers can be characterised as the potential key features within the business operations
that can lead to enhancement the productivity as well as the financial outcomes of the same.
These can considered to the innovative inputs that can help a business firm to achieve excellence
in its respective business industry (Wevers, 2021). In order to assess and identify the business
The proposed report will discuss the emerging trend of UHT milk within the China’s market
domain. It will demonstrate a detailed analysis of the business operation carried out by “The
Ethical Diary” in regard with entering Chinese market in order to facilitate the sales operations
of UHT milk within the same. It will provide an in-depth understanding about the business
drivers, factors, barriers and social concerns faced by the company in the business environment.
The report will also provide insights about the expansion strategies adopted by “The ethical
Diary” in order to establish a prominent position for itself within the milk industry of China.
Introduction
UHT can be characterised a technique adopted by the enterprises in dairy and food industry to
enhance the quality of dairy products by elimination of bacteria and microorganisms from the
same. UHT milk can be termed as a form of milk in which the milk is heated on high
temperature in order to alleviate the pasteurisation levels of the same in order to encourage the
quality of the milk (Doty and Astakhova, 2020). According to the reports, it can be examined
that more that 60% of China's population consumes UHT milk which in turn has created a huge
business opportunity within the respective country. There is wide market available in China
which can be capitalised by budding organisation in the field of dairy in order to facilitate
expansion of their cross border business operations. The report highlight upon “The Ethical
Dairy” one of the successful SME'S in UK and reflects upon its strategy and plan to penetrate
within the UHT milk industry in China so as to realise higher profits and opportunity for growth
within the same. It also details about the necessary procedures and elements that will be taken
into consideration by the company in order to compete with Inner Mongolia Yili Industrial
Group which is one of the biggest competitors within the industry and emerge as one of the
successful business unit within the Chinese market environment.
Business Drivers
Business drivers can be characterised as the potential key features within the business operations
that can lead to enhancement the productivity as well as the financial outcomes of the same.
These can considered to the innovative inputs that can help a business firm to achieve excellence
in its respective business industry (Wevers, 2021). In order to assess and identify the business
drivers that can help The Ethical Dairy to expand its UHT business in China, Pestle Model can
be taken into consideration.
Pestle Model can be characterised as a tool incorporated by the business firms to determine the
potential factors and forces that can have major impact on the day to day functioning as well as
the profitability of the firm in the business environment. The below mentioned factors needs to
be discussed and evaluated in order to find the affect of external elements on the business
operations :-
Political : In order to lead smooth and flexible operation within an internal country, it is very
essential for The Ethical Dairy to facilitate a detailed examination of the political stability of the
country. China is an extremely progressive political environment which is assertive and
proactive in nature ( Peterson. and Muratova,2020). Hence, The Ethical Dairy will have to study
the policies and procedures led by the government bodies in China in order to map the alignment
of the business operations of its respective firm.
Economical : The Ethical Dairy is also required to assess the economical factors such as
inflation and deflation rate, GDP, interest rates, taxation rates etc. of China so as to facilitate the
systematic arrangement of financial sources and estimate the project finance required to start up
the venture in the respective country.
Social : China has a very productive and modern society. Majority of the population in China are
inclining towards innovation products and services and this is the reason why the country is
considered to the innovation centre of the world. Hence, The Ethical Dairy is required to asses
the needs and requirements of the society so as to deliver the services that are in accordance with
the same.
Technological : China is a country that is known for its technological advancements. The
country has led to various inventions that has helped to enhance the standard of technology
within the society and given rise to numerous business opportunities as well. In order to run the
operation in China, it is extremely necessary for The Ethical Diary to scale up its technology to
an advance level that can meet to the standard of technology utilised by the UHT business
enterprises in China.
Environment : The Ethical Diary firm needs to exercise component business operations in order
to contribute towards the sustainable natural environment within China. The incorporation of
environmental friendly packaging can assist the firm in leading more sustainable solutions
be taken into consideration.
Pestle Model can be characterised as a tool incorporated by the business firms to determine the
potential factors and forces that can have major impact on the day to day functioning as well as
the profitability of the firm in the business environment. The below mentioned factors needs to
be discussed and evaluated in order to find the affect of external elements on the business
operations :-
Political : In order to lead smooth and flexible operation within an internal country, it is very
essential for The Ethical Dairy to facilitate a detailed examination of the political stability of the
country. China is an extremely progressive political environment which is assertive and
proactive in nature ( Peterson. and Muratova,2020). Hence, The Ethical Dairy will have to study
the policies and procedures led by the government bodies in China in order to map the alignment
of the business operations of its respective firm.
Economical : The Ethical Dairy is also required to assess the economical factors such as
inflation and deflation rate, GDP, interest rates, taxation rates etc. of China so as to facilitate the
systematic arrangement of financial sources and estimate the project finance required to start up
the venture in the respective country.
Social : China has a very productive and modern society. Majority of the population in China are
inclining towards innovation products and services and this is the reason why the country is
considered to the innovation centre of the world. Hence, The Ethical Dairy is required to asses
the needs and requirements of the society so as to deliver the services that are in accordance with
the same.
Technological : China is a country that is known for its technological advancements. The
country has led to various inventions that has helped to enhance the standard of technology
within the society and given rise to numerous business opportunities as well. In order to run the
operation in China, it is extremely necessary for The Ethical Diary to scale up its technology to
an advance level that can meet to the standard of technology utilised by the UHT business
enterprises in China.
Environment : The Ethical Diary firm needs to exercise component business operations in order
to contribute towards the sustainable natural environment within China. The incorporation of
environmental friendly packaging can assist the firm in leading more sustainable solutions
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towards the upliftment of the natural surroundings in the country (Wagstaff, M.F., Hadjimarcou
and Chanoi, 2020).
Legal : Legality can considered to be one of the complex tasks that needs to be facilitated by
The Ethical Diary in order to run the business functional in China. The legal environment of
China is very complex and in order to set up the business within the country, It is essential for
The Ethical Diary to go through a series of investigation and legal formality. Permission from
the court as well as other essential documents such as licensing, working permission cards,
contracts, tax regulations documents etc. needs to be obtained by the respective firm as well.
From the above assessment, it can be derived that the two most important business drivers that
can facilitate the enhancement in the business operations of The Ethical Diary in China can be
termed as technology and the cost efficient DHT milk products.
Identify the target city or province in China
In order to establish a business base in an international country, it is important to identify the
cities that are open for business opportunities are feasible to operate in. In order to market the
products, it is very important to select the target market area which will be targeted by the
business firm so as to persuade the individuals belonging to that section to invest in these
offerings provided by the same ( Wulff and Villadsen, 2020). Shanghai can be considered as one
of the major city of China which provides ample opportunities to the new business firm to
exercise their business regulation in the market. Ethical dairy organisation will be capitalising
upon the dairy market in Shanghai in order to provide quality service pertaining to the
availability of DTH milk to the customers. The population of Shanghai will be classified and
segmented in accordance to numerous variables and the most appropriate variables will be
selected by the business firm in order to target the same in terms of sales and marketing. It can be
estimated that Shanghai will provide the necessary start to the business operations of The Ethical
Dairy and allow the firm to establish a strong base within the respective market.
Cultural factors
Cultural factors can be characterised as the core values and backgrounds of the individuals that
can have impact on the buying behaviour of the same. In order to assess the cultural factors that
can impact the profitability and sustainability of operation delivered by The Ethical Dairy in
China, Hofstede’s model will be taken into consideration. The respective model allows the
and Chanoi, 2020).
Legal : Legality can considered to be one of the complex tasks that needs to be facilitated by
The Ethical Diary in order to run the business functional in China. The legal environment of
China is very complex and in order to set up the business within the country, It is essential for
The Ethical Diary to go through a series of investigation and legal formality. Permission from
the court as well as other essential documents such as licensing, working permission cards,
contracts, tax regulations documents etc. needs to be obtained by the respective firm as well.
From the above assessment, it can be derived that the two most important business drivers that
can facilitate the enhancement in the business operations of The Ethical Diary in China can be
termed as technology and the cost efficient DHT milk products.
Identify the target city or province in China
In order to establish a business base in an international country, it is important to identify the
cities that are open for business opportunities are feasible to operate in. In order to market the
products, it is very important to select the target market area which will be targeted by the
business firm so as to persuade the individuals belonging to that section to invest in these
offerings provided by the same ( Wulff and Villadsen, 2020). Shanghai can be considered as one
of the major city of China which provides ample opportunities to the new business firm to
exercise their business regulation in the market. Ethical dairy organisation will be capitalising
upon the dairy market in Shanghai in order to provide quality service pertaining to the
availability of DTH milk to the customers. The population of Shanghai will be classified and
segmented in accordance to numerous variables and the most appropriate variables will be
selected by the business firm in order to target the same in terms of sales and marketing. It can be
estimated that Shanghai will provide the necessary start to the business operations of The Ethical
Dairy and allow the firm to establish a strong base within the respective market.
Cultural factors
Cultural factors can be characterised as the core values and backgrounds of the individuals that
can have impact on the buying behaviour of the same. In order to assess the cultural factors that
can impact the profitability and sustainability of operation delivered by The Ethical Dairy in
China, Hofstede’s model will be taken into consideration. The respective model allows the
business firms to differentiate between various elements that provide comparison among two
countries in order to determine the difference within the culture of the same.
The first major cultural factors can be termed as individualism. It can be stated that
Western countries exhibit more level of individualism in comparison to Asian countries.
United Kingdom can be termed as a more advanced country wherein high standard of
individualism is promoted within the society and every individual is entitled to live their
life according to their own will without manipulation or interference of other members of
the society (Moore, 2020). Whereas China has traditional approach and the citizens
prevailing same are likely to follow more collectivism and where in every member of the
society is answerable to each other. It can be stated that in order to lead successful
business operations in China the ethical dairy should try and adopt collectivist nature.
The demands as well as the aspirations of the society should be taken into consideration
by the respective organisation in an effective manner so that the company is able to
communicate its overall vision to the society as a whole. It can be assessed that due to the
collective wisdom prevailing in the society of China, the individuals focus more upon the
relationships and personal equations. Whereas in case of United Kingdom, people are self
focused and work in order to achieve their personal goals and set aside the other
relationship on the secondary basis.
Power distance can be characterised as an element that details about the degree of power
or authority tolerated by the individuals in a respective region The power distance of
China is the relatively high in comparison to United Kingdom as Chinese tend to be more
tolerable to words the ongoing power conflicts whereas British citizens try to implement
more stable and democratic behaviour within their organisational settings. Hence, it can
be derived that The Ethical Dairy needs to be more conscious while facilitating its
functioning in Chinese market as Chinese individuals will be quite effected by the
hierarchical structure adopted by the concerned firm.
It can be evaluated that the uncertainty avoidance index of China is much higher in terms
of handing uncertainty in comparison to United Kingdom. The individuals residing in
United Kingdom are more tolerant towards the uncertain environments and promote risk
taking as well as spontaneity .They are more flexible in their approach and adapt easily to
the changing scenario within the business environment. Hence, it can be recommended to
countries in order to determine the difference within the culture of the same.
The first major cultural factors can be termed as individualism. It can be stated that
Western countries exhibit more level of individualism in comparison to Asian countries.
United Kingdom can be termed as a more advanced country wherein high standard of
individualism is promoted within the society and every individual is entitled to live their
life according to their own will without manipulation or interference of other members of
the society (Moore, 2020). Whereas China has traditional approach and the citizens
prevailing same are likely to follow more collectivism and where in every member of the
society is answerable to each other. It can be stated that in order to lead successful
business operations in China the ethical dairy should try and adopt collectivist nature.
The demands as well as the aspirations of the society should be taken into consideration
by the respective organisation in an effective manner so that the company is able to
communicate its overall vision to the society as a whole. It can be assessed that due to the
collective wisdom prevailing in the society of China, the individuals focus more upon the
relationships and personal equations. Whereas in case of United Kingdom, people are self
focused and work in order to achieve their personal goals and set aside the other
relationship on the secondary basis.
Power distance can be characterised as an element that details about the degree of power
or authority tolerated by the individuals in a respective region The power distance of
China is the relatively high in comparison to United Kingdom as Chinese tend to be more
tolerable to words the ongoing power conflicts whereas British citizens try to implement
more stable and democratic behaviour within their organisational settings. Hence, it can
be derived that The Ethical Dairy needs to be more conscious while facilitating its
functioning in Chinese market as Chinese individuals will be quite effected by the
hierarchical structure adopted by the concerned firm.
It can be evaluated that the uncertainty avoidance index of China is much higher in terms
of handing uncertainty in comparison to United Kingdom. The individuals residing in
United Kingdom are more tolerant towards the uncertain environments and promote risk
taking as well as spontaneity .They are more flexible in their approach and adapt easily to
the changing scenario within the business environment. Hence, it can be recommended to
The Ethical Dairy to have a systematic plan of action in order to facilitate the operation of
the business firm in a more effective way. The company needs to ensure that it does not
get affected by the uncertain business conditions prevailing in the respective country and
emerge as a powerful enterprise ( Kurt and Kurt, 2020).
From the above analysis, it can be derived that the business environment in China is very
progressive yet traditional. The main business players within the country have relied
upon successful relationships in order to achieve great success. The traditional approach
is practised within the country which makes it very important for The Ethical Dairy to
incorporate and align the culture of the country in its business operations so as to enhance
the engagement and involvement of the society towards the same.
Trade Barriers
Trade barriers can be determined as the amount or duties imposed upon the export or imports of
goods and services. They can be characterised as the government issued implications that needs
to be taken into consideration by the business firms in order to facilitate their functioning in
international business markets. There are numerous kinds of trade barriers that can be levied on
the business operations of The Ethical Dairy in the international markets. Few of the same are
mentioned below as well:-
The primary barrier faced by The Ethical Dairy in order to facilitate the execution of its
functioning in the international market can be characterised as tariff. Tariff can
considered as the taxes which are imposed by the leading authority of the nation on
import of goods in the same ( Ratten, 2020).The company needs to meet the obligation of
accomplishing its tariff duties on a consistent basis so as to facilitate business operation
in a legal format.
It is also very necessary for The Ethical Dairy to acquire relevant import licences so as to
get the permission from the government authorities within China to successfully lead
business operations without any intervention of the same.
In order to regulate food and dairy products within China it is essential for the business
enterprises to acquire the food licences which depict the allowance given to the
respective firm in order to process its operations within the content provided by the legal
court.
the business firm in a more effective way. The company needs to ensure that it does not
get affected by the uncertain business conditions prevailing in the respective country and
emerge as a powerful enterprise ( Kurt and Kurt, 2020).
From the above analysis, it can be derived that the business environment in China is very
progressive yet traditional. The main business players within the country have relied
upon successful relationships in order to achieve great success. The traditional approach
is practised within the country which makes it very important for The Ethical Dairy to
incorporate and align the culture of the country in its business operations so as to enhance
the engagement and involvement of the society towards the same.
Trade Barriers
Trade barriers can be determined as the amount or duties imposed upon the export or imports of
goods and services. They can be characterised as the government issued implications that needs
to be taken into consideration by the business firms in order to facilitate their functioning in
international business markets. There are numerous kinds of trade barriers that can be levied on
the business operations of The Ethical Dairy in the international markets. Few of the same are
mentioned below as well:-
The primary barrier faced by The Ethical Dairy in order to facilitate the execution of its
functioning in the international market can be characterised as tariff. Tariff can
considered as the taxes which are imposed by the leading authority of the nation on
import of goods in the same ( Ratten, 2020).The company needs to meet the obligation of
accomplishing its tariff duties on a consistent basis so as to facilitate business operation
in a legal format.
It is also very necessary for The Ethical Dairy to acquire relevant import licences so as to
get the permission from the government authorities within China to successfully lead
business operations without any intervention of the same.
In order to regulate food and dairy products within China it is essential for the business
enterprises to acquire the food licences which depict the allowance given to the
respective firm in order to process its operations within the content provided by the legal
court.
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There are several quota is reserved for import procedures within the country and the
Empire diary is required to capitalise on these quotas so as to gain leverage in facilitating
its international operations across China.
Numerous documents in relation with finance and property disclosures need to be
formulated by the business firm (Kahiya, 2020). The respective practice will ensure that
the company operates with full legal assistance and does not experience any intervention
that could restrict the business functions of the same in the international environment.
Ethical and social issues
Ethical and social issues can be characterised as the implications and obstacles pertaining to
adapting the standards of ethicality and authenticity prevailing in the same faced by the business
organisation while working in an another country
Some of the major ethical and social concerns that need to be overcome by the ethical dairy are
as follows:-
One of the most important social issues is the working standard adopted by the business
organisation. It is required that the respective organisation promoted business standards
that are high in morale so as to boost the motivation of the employees to achieve the
goals through sheer hard work and determination. Authentic and credible work should be
promoted within an enterprise.
In order to overcome the social barriers within an enterprise it is very prominent for the
same to provide good working condition to its employees. It helped to enhance their
willingness to cater their best in their respective jobs and to encourage their involvement
in the managerial functions as well.
The Ethical Dairy should also promote diversity within the workplace and recruit
individuals from all across the globe. Workplace diversity can be characterised as a
concept wherein individuals from different backgrounds and cultures religions are given
an opportunity to be the part of an organisation. Workplace diversity promotes the
productivity of the organisation as it leads to the amalgamation of various minds
belonging to various sections of the society which can help in the up gradation of the
current set of procedures followed by business institutions. The optimisation on
workplace diversity will assist The Ethical Dairy to achieve excellence in its work
Empire diary is required to capitalise on these quotas so as to gain leverage in facilitating
its international operations across China.
Numerous documents in relation with finance and property disclosures need to be
formulated by the business firm (Kahiya, 2020). The respective practice will ensure that
the company operates with full legal assistance and does not experience any intervention
that could restrict the business functions of the same in the international environment.
Ethical and social issues
Ethical and social issues can be characterised as the implications and obstacles pertaining to
adapting the standards of ethicality and authenticity prevailing in the same faced by the business
organisation while working in an another country
Some of the major ethical and social concerns that need to be overcome by the ethical dairy are
as follows:-
One of the most important social issues is the working standard adopted by the business
organisation. It is required that the respective organisation promoted business standards
that are high in morale so as to boost the motivation of the employees to achieve the
goals through sheer hard work and determination. Authentic and credible work should be
promoted within an enterprise.
In order to overcome the social barriers within an enterprise it is very prominent for the
same to provide good working condition to its employees. It helped to enhance their
willingness to cater their best in their respective jobs and to encourage their involvement
in the managerial functions as well.
The Ethical Dairy should also promote diversity within the workplace and recruit
individuals from all across the globe. Workplace diversity can be characterised as a
concept wherein individuals from different backgrounds and cultures religions are given
an opportunity to be the part of an organisation. Workplace diversity promotes the
productivity of the organisation as it leads to the amalgamation of various minds
belonging to various sections of the society which can help in the up gradation of the
current set of procedures followed by business institutions. The optimisation on
workplace diversity will assist The Ethical Dairy to achieve excellence in its work
operation and create a progressive and productive working culture within the respective
business enterprise.
It is very important for The Ethical Dairy to have the appropriate in closure of human
rights and exercise the same within the business functioning so as to elevate the standard
of humanity among the individual serving in the organisation (Ferraro, 2021). It will
provide assistance to the firm in creating an atmosphere wherein human dignity is
practised and trust as well as humanity is appreciated.
Negative politics should be ignored and eliminated within the organisational setting so as
to provide a positive environment to the workforce in the firm and lead a comfortable
working space for the employees as well.
It is also vital for the respective organisation to accept the culture, tradition and history of
the employees working under the organisation and reduce the barriers pertaining to the
cultural attributes to the minimum so as to promote uniformity in operations. It will
ensure that no individual is discriminated on the basis of caste, creed, religion, gender or
any other social construct or background.
The company also needs to ensure that it does not indulge in the hiring of children who
are under age for employment. Child labour should be restricted within an organisation to
uplift the standard of children within the society and work towards the development of
the same.
Corporate social responsibility can be defined as an obligation of a business firm to provide its
services to the society in order to enhance the stature of the same. Corporate Social responsibility
can help The Ethical Dairy to introspect within the prevailing social issues in China and to work
in order to facilitate creative solutions in relation with elimination of the concerned issues from
the society. The respective practice of investing time in efforts in corporate social responsibility
can further help the firm to create a positive image of the organisation within the target market so
as to enhance the realisation of perks associated with the same.
Methods of expansion
Expansion strategies can be characterised as a form of strategy that is capitalised by business
firms in order to lead expansion within their current business operations and achieve more profit
margin through the enhancement of their market share within the global platform.
business enterprise.
It is very important for The Ethical Dairy to have the appropriate in closure of human
rights and exercise the same within the business functioning so as to elevate the standard
of humanity among the individual serving in the organisation (Ferraro, 2021). It will
provide assistance to the firm in creating an atmosphere wherein human dignity is
practised and trust as well as humanity is appreciated.
Negative politics should be ignored and eliminated within the organisational setting so as
to provide a positive environment to the workforce in the firm and lead a comfortable
working space for the employees as well.
It is also vital for the respective organisation to accept the culture, tradition and history of
the employees working under the organisation and reduce the barriers pertaining to the
cultural attributes to the minimum so as to promote uniformity in operations. It will
ensure that no individual is discriminated on the basis of caste, creed, religion, gender or
any other social construct or background.
The company also needs to ensure that it does not indulge in the hiring of children who
are under age for employment. Child labour should be restricted within an organisation to
uplift the standard of children within the society and work towards the development of
the same.
Corporate social responsibility can be defined as an obligation of a business firm to provide its
services to the society in order to enhance the stature of the same. Corporate Social responsibility
can help The Ethical Dairy to introspect within the prevailing social issues in China and to work
in order to facilitate creative solutions in relation with elimination of the concerned issues from
the society. The respective practice of investing time in efforts in corporate social responsibility
can further help the firm to create a positive image of the organisation within the target market so
as to enhance the realisation of perks associated with the same.
Methods of expansion
Expansion strategies can be characterised as a form of strategy that is capitalised by business
firms in order to lead expansion within their current business operations and achieve more profit
margin through the enhancement of their market share within the global platform.
In order to expand business in international market particularly in China, The Ethical Dairy must
focus upon the following expansion strategies:-
The primary strategy that can be adopted by The Ethical Dairy is to follow a tight budget
in order to ensure that it has the relevant finance available to meet up to the future
operations of the business in the foreign markets. It needs to formulate a plan that focuses
upon effective formation of infrastructure and business campaigning that can attract the
consumers towards the organisation (Cherunilam, 2020). The respective strategy will also
help the ethical dairy to enhance the return on investment and work upon the latest
innovation through the availability of adequate available within the same.
In order to expand the business functions, it is very necessary for the business firms to
adopt and apply a defined product strategy to the current line of operation. The products
and services delivered by The Ethical Dairy should be high in quality so that the
company can optimise on its quality and facilitate its marketing in accordance with the
same.
DTH Milk is already available within the markets of China. Hence, it becomes quite
important for the ethical dairy to lead some sort of innovation in its product to as to
differentiate the same from the other products provided by the rival company within the
respective market industry.
In order to establish long-term scope of development in China, The Ethical Dairy should
focus towards accumulation of saving and re-investing the same in various other ventures
so as to gain effective returns from the same. The returns can also be utilised by the firm
itself in case of emergency which can enhance its financial scope as well as allow further
expansion of the business operation in the future.
Partnership with other SMEs can also help The Ethical Dairy to broaden its scope of sales
within the market sector. The company can regulate its expansion procedure through tie
ups with a well-known business firm that complements the operations carried out by The
Ethical Dairy in its market domain. The respective strategy will not only benefit the
established SME but will also assess the respective dairy organisation to get noticed by
the customers and enhance the interest of the same towards the company.
If the organisation is able to capture the attention of the audience and achieve success
within its respective industry, it can also establish various franchises of the brand in
focus upon the following expansion strategies:-
The primary strategy that can be adopted by The Ethical Dairy is to follow a tight budget
in order to ensure that it has the relevant finance available to meet up to the future
operations of the business in the foreign markets. It needs to formulate a plan that focuses
upon effective formation of infrastructure and business campaigning that can attract the
consumers towards the organisation (Cherunilam, 2020). The respective strategy will also
help the ethical dairy to enhance the return on investment and work upon the latest
innovation through the availability of adequate available within the same.
In order to expand the business functions, it is very necessary for the business firms to
adopt and apply a defined product strategy to the current line of operation. The products
and services delivered by The Ethical Dairy should be high in quality so that the
company can optimise on its quality and facilitate its marketing in accordance with the
same.
DTH Milk is already available within the markets of China. Hence, it becomes quite
important for the ethical dairy to lead some sort of innovation in its product to as to
differentiate the same from the other products provided by the rival company within the
respective market industry.
In order to establish long-term scope of development in China, The Ethical Dairy should
focus towards accumulation of saving and re-investing the same in various other ventures
so as to gain effective returns from the same. The returns can also be utilised by the firm
itself in case of emergency which can enhance its financial scope as well as allow further
expansion of the business operation in the future.
Partnership with other SMEs can also help The Ethical Dairy to broaden its scope of sales
within the market sector. The company can regulate its expansion procedure through tie
ups with a well-known business firm that complements the operations carried out by The
Ethical Dairy in its market domain. The respective strategy will not only benefit the
established SME but will also assess the respective dairy organisation to get noticed by
the customers and enhance the interest of the same towards the company.
If the organisation is able to capture the attention of the audience and achieve success
within its respective industry, it can also establish various franchises of the brand in
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different cities of China. It will tend to enhance the set of target market and to realise
maximum profits through the same.
The Ethical Dairy can also rely upon the optimisation of advance promotional tool for the
advertisement of the business from within the city of Shanghai. It can hire an agency that
can provide marketing solutions to the respective firm in order to reach maximum
customers and to persuade the same to invest in the DTH milk offered by the respective
business organisation.
According to the discussion on the expansion strategies of the ethical dairy, it can be suggested
that the company is likely to get a slow start in the beginning as there are numerous successful
enterprises in the market in the dairy industry. But with the implementation of innovation
attributes in the marketing of the DTH milk, The Ethical Dairy can achieve milestones within the
respective business industry. The company needs to just align its focus upon the facilitation of
expansion through capitalisation on the finance as well as enhancement of the same.
Conclusion
From the above information, it can be concluded that The Ethical Dairy can optimise upon huge
opportunities in China with the incorporation appropriate expansion measures and plans. The
expansion of this small scale organisation can open the doors for other firms to focus toward
implementing expansion measures within their business prospectus. The feasibility of the
proposed expansion plan is high i.e. the expansion plan can emerge as successful outcome for the
business firm. The Ethical Dairy is required to focus upon the aligning its operation with cultural
and social values of China in order to enhance its relatedness towards the same in the long run.
The company needs to also work in accordance with the business environment of China and
facilitate the adaptability to the same. In order to further sustain and survive in Chinese market,
The Ethical Dairy will have to be proactive with its expansion policies and strategies and
implement the same with full effectiveness and efficiency.
maximum profits through the same.
The Ethical Dairy can also rely upon the optimisation of advance promotional tool for the
advertisement of the business from within the city of Shanghai. It can hire an agency that
can provide marketing solutions to the respective firm in order to reach maximum
customers and to persuade the same to invest in the DTH milk offered by the respective
business organisation.
According to the discussion on the expansion strategies of the ethical dairy, it can be suggested
that the company is likely to get a slow start in the beginning as there are numerous successful
enterprises in the market in the dairy industry. But with the implementation of innovation
attributes in the marketing of the DTH milk, The Ethical Dairy can achieve milestones within the
respective business industry. The company needs to just align its focus upon the facilitation of
expansion through capitalisation on the finance as well as enhancement of the same.
Conclusion
From the above information, it can be concluded that The Ethical Dairy can optimise upon huge
opportunities in China with the incorporation appropriate expansion measures and plans. The
expansion of this small scale organisation can open the doors for other firms to focus toward
implementing expansion measures within their business prospectus. The feasibility of the
proposed expansion plan is high i.e. the expansion plan can emerge as successful outcome for the
business firm. The Ethical Dairy is required to focus upon the aligning its operation with cultural
and social values of China in order to enhance its relatedness towards the same in the long run.
The company needs to also work in accordance with the business environment of China and
facilitate the adaptability to the same. In order to further sustain and survive in Chinese market,
The Ethical Dairy will have to be proactive with its expansion policies and strategies and
implement the same with full effectiveness and efficiency.
REFERENCES
Books and Journals
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Ferraro, G.P., 2021. The cultural dimension of international business. Prentice Hall.
Luo, Y., 2020. Adaptive learning in international business. Journal of International Business
Studies, pp.1-21.
Ratten, V., 2020. Coronavirus and international business: An entrepreneurial ecosystem
perspective. Thunderbird International Business Review, 62(5), pp.629-634.
Kahiya, E.T., 2020. Context in international business: Entrepreneurial internationalization from a
distant small open economy. International Business Review, 29(1), p.101621.
Kurt, Y. and Kurt, M., 2020. Social network analysis in international business research: An
assessment of the current state of play and future research directions. International
Business Review, 29(2), p.101633.
Moore, F., 2020. Multiple interpretations of “national culture” and the implications for
International business: The case of Taiwan. Journal of World Business, 55(5),
p.101128.
Wulff, J.N. and Villadsen, A.R., 2020. Keeping it within bounds: Regression analysis of
proportions in international business. Journal of International Business Studies, 51(2),
pp.244-262.
Wagstaff, M.F., Hadjimarcou, J. and Chanoi, C., 2020. Gender Equality in International Business
Education. Journal of Management Education, 44(5), pp.605-621.
Peterson, M.F. and Muratova, Y., 2020. Distance in international business research: A
commentary. In Research methods in international business (pp. 499-505). Palgrave
Macmillan, Cham. Chow, D.C. and Schoenbaum, T.J., 2020. International business
transactions: problems, cases, and materials. Wolters Kluwer Law & Business.
Wevers, H., 2021. A Basic Guide to International Business Law. Routledge.
Doty, D.H. and Astakhova, M., 2020. Common method variance in international business
research: A commentary. In Research methods in international business (pp. 399-408).
Palgrave Macmillan, Cham.
Books and Journals
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Ferraro, G.P., 2021. The cultural dimension of international business. Prentice Hall.
Luo, Y., 2020. Adaptive learning in international business. Journal of International Business
Studies, pp.1-21.
Ratten, V., 2020. Coronavirus and international business: An entrepreneurial ecosystem
perspective. Thunderbird International Business Review, 62(5), pp.629-634.
Kahiya, E.T., 2020. Context in international business: Entrepreneurial internationalization from a
distant small open economy. International Business Review, 29(1), p.101621.
Kurt, Y. and Kurt, M., 2020. Social network analysis in international business research: An
assessment of the current state of play and future research directions. International
Business Review, 29(2), p.101633.
Moore, F., 2020. Multiple interpretations of “national culture” and the implications for
International business: The case of Taiwan. Journal of World Business, 55(5),
p.101128.
Wulff, J.N. and Villadsen, A.R., 2020. Keeping it within bounds: Regression analysis of
proportions in international business. Journal of International Business Studies, 51(2),
pp.244-262.
Wagstaff, M.F., Hadjimarcou, J. and Chanoi, C., 2020. Gender Equality in International Business
Education. Journal of Management Education, 44(5), pp.605-621.
Peterson, M.F. and Muratova, Y., 2020. Distance in international business research: A
commentary. In Research methods in international business (pp. 499-505). Palgrave
Macmillan, Cham. Chow, D.C. and Schoenbaum, T.J., 2020. International business
transactions: problems, cases, and materials. Wolters Kluwer Law & Business.
Wevers, H., 2021. A Basic Guide to International Business Law. Routledge.
Doty, D.H. and Astakhova, M., 2020. Common method variance in international business
research: A commentary. In Research methods in international business (pp. 399-408).
Palgrave Macmillan, Cham.
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