Business Drivers for Expansion into Chinese Market

International
Business:

Table of Contents
Introduction:.....................................................................................................................................1
Business drives:...............................................................................................................................1
Discuses the business drivers behind the company’s expansion into the Chinese market:..1
Examine the porter’s five forces factors with the relevant trade theory that would lead the
SME to identify key business drivers.....................................................................................1
Trade barriers:..................................................................................................................................1
Discuss the trade barriers and their possible consequence if they are ignored by the SME:1
Demonstrate the business uncertainties:.................................................................................1
Ethical and social issues to be considered by the UK SME:...........................................................1
The significance of Cultural preference to be considered by the business....................................1
Expansion method for internationalisation business:.....................................................................1
Recommendation :...........................................................................................................................1
Conclusion:......................................................................................................................................1
References:.......................................................................................................................................1

Introduction:
The international trade and business are associated with the movement of goods and services
beyond the national borders. It is platform for the businesses to expand their operational
activities from domestic level to the international market and earn the desire level of profit
margin in the competitive market places.UHT milk stands for the ultra high temperature milk
refers to the process of sterilized milk to kill the spores and germs present in the milk but
preserve the nutrients of the milk. Under this report, the NFU organisation are trying to enter
into Chinese market to target the children who are best customer for the milk goods.. Yili is a
UHT milk producer in the chine market offering the milk to the target market. further there will
discussion on the business drivers which helps in expansion and what are the trade barrier which
UK SME faces while expanding into the Chinese market. discussion the corporate social
responsibility of the UK organisation and see how the culture influences the customer buying
decision(Antras, and Foley, 2015.)
Key statistic and current trends for the UK industry
 The Uk is the 7th largest milk producer in the world.’
 Milk production is 16.9 % of agricultural outcomes of the UK in 2018 and hold the
worth for price $4.6 in the market.
 The UK offers 15.0 billion litres of milk in the 2018-2029
Current trends of UHT milk in Chinese market:
 Market size of the UHT milk is around the 90 billion in the 2017-2018.
 Rapid growth in the china market for the UHT milk and increase in the number of the
customer for the UHT milk products.
 The china economy also enhance due to increase demand of UHT milk in the past five
to six years.
Business drives:
1

Discuses the business drivers behind the company’s expansion into the Chinese market:
The UK SME organisation are focussing on expanding their business at the international Chinese
market as there are lot of opportunities present in the china market . there are various different
business driver which helps the UK based UHT milk producer to expand their operational
market into the new Chinese market : some of the important business driver are stated as below:
Competition: due to the larger competition in the UK market , the organisation are required to
expand and grow their business at the international market so that they can capture the new
market and take the competitive advantage in the work environment. In the UK market , there
are various different producer who are also selling the UHT milk to the market so NFU
organisation wants to expand their production into the Chinese market and target the children
from group age between the 3 to 11 years. (Asteriou, Masatci and Pılbeam,2016)
Expansion of the technology: the china market is known for its advance technology which
helps to produce the goods and service at the best quality in the international market place. the
UK SME organisation finds the technology is a effective business driver for their production
process of UHT milk which helps them to perform in better manners and offers the UHT milk
which is high on nutrient for the target customer. the advance technology helps the UK market to
enter into the Chinese market as UK SME are known for their good quality of the product and
service which are to be offered to the customer.
These business driver helps or show the way for the internationalisation of the UK SME
organisation into the Chinese market and grow their business at the global market places.
Competition will push the organisation to expand their business to the next level and take the
competitive advantages in the market.
Examine the porter’s five forces factors with the relevant trade theory that would lead the SME
to identify key business drivers.
To identify the key business driver the UK SME organisation need to examine the competition
present in the market to expand their business in the Chinese market places which is relevant for
the trade theory so that organisation are able to perform their operational activities in
productivity manners. the porter five forces are applied to study the competition present in the
new market and affects the trade practice of the organisation.
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