Amcor Limited: A Report on International and Global Business

This report outlines Amcor Limited's strategy for international business expansion, focusing on market entry into China and the United Kingdom. The analysis considers macro-environmental and geo-political factors, including PESTLE analysis for both countries, and assesses trade and business policies. The report identifies opportunities and risks associated with each market, considering factors such as political stability, economic conditions, social factors, technological advancements, legal frameworks, and environmental regulations. China is highlighted for its low labor costs and emerging economy, while the UK offers a stable political environment and advanced technology. Ultimately, the report recommends that Amcor Limited prioritize the Chinese market due to its favorable trade policies and lower production costs, while acknowledging the need to mitigate risks related to legal and tax systems and local competition. Desklib provides access to this report and other solved assignments for students.

Running Head: International and Global Business
AMcor Limited
International and Global Business

International and Global Business 1
Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................3
Identification of two countries for market entry..............................................................................4
Macro-environmental and Geo-political factors..............................................................................5
Trade and Business Policy...............................................................................................................7
Assessment of risks and opportunities.............................................................................................8
Recommendation & Conclusion......................................................................................................9
References......................................................................................................................................10

International and Global Business 2
Executive Summary
Amcor Limited is an Australian multinational company engaged in producing packaging for
different varieties of products. Organization produces various types of flexible and rigid
packaging for different varieties of products such as food, beverages, health care, and tobacco
industries. This packaging is quite effective in preserving specially the food items, medicines,
and other perishable goods. With regards to the organizational performance in Australian market,
management of the organization is planning to expand its business operations in the global
market. For the same, European and Asian market has been chosen on the basis of analysis
conducted for evaluating the demand of the packaging produced by Amcor Limited. Report will
include the internal analysis, external analysis of both the countries and then the appropriate
market will be selected with the view to attain organizational desired goals and the objectives in
relation with the expansion in the global market.

International and Global Business 3
Introduction
This report will include the business expansion strategies for Amcor Limited in the international
market with the objective to attain sustainable growth in the international market. Amcor Limited
produces various types of packaging which is quite beneficial for industries who produces
different varieties and sizes of products. Packaging produced by Amcor Limited helps
manufacturing organizations to store those products in safe and secure manner. For promoting
their packaging in Australia and in other parts of the globe, organization has started contributing
to the government indicatives, NGOs, etc. which are started with a motive to spread the
awareness in the public in relevance with the recycling of waste, reduction in the use of un-
disposable packaging. Today, whole world is struggling with the issue of pollution and disposal
of waste products. Thus, the projects initiated by the organization in order to save the
environmental conditions as well as to provide ways to recycle the packaging. This will lead the
organization towards growth and success which will enhance the opportunities for the
organization in order to attain expansion objectives in the global market. In terms of expansion in
the global market, organizational management has selected two continents i.e. Asia and Europe.
These two continents have huge opportunities in terms of expanding the business. Organization
has selected United Kingdom from European continent and China from the Asian continent for
expanding their business in the international market. Further the report will include the selection
of the most appropriate market amongst these two countries with the objective to acquire the
effective position in the international market.

International and Global Business 4
Identification of two countries for market entry
For expanding the Amcor Limited’s business in the international market, United Kingdom and
China has been selected from European and Asian continent respectively. Both these countries
are included in the production and manufacturing activities, thus, expansion chances for Amcor
Limited are quite high in these countries in relevance with other parts of the globe. Both of these
countries are having huge manufacturing industries which require adequate packaging to keep
their products safe and secure. With the help of flexible and rigid types of packaging, products
manufacturing companies could pack their products in the effective manner. Apart from this,
Amcor limited also provides various types of attractive and unique designs of packaging which
could be used for attracting the target audience which could help the organizations to enhance
their customer base (Akaka, Vargo & Lusch, 2013).
These markets were selected on the basis of various marketing objectives such as environmental
factors of the market, political factors, economic conditions, etc. Chinese market is known for
providing cheapest labour resources with adequate talent and knowledge. Various multinationals
across the globe have set up their manufacturing units in the Chinese market in order to reduce
their cost of the production. Apart from the Chinese markets, UK markets have also been
considered with the objective to enhance their customer base in the international market
(Andersson & Xiao, 2016).

International and Global Business 5
Macro-environmental and Geo-political factors
These are the major influencing external factors which impacts the decision making process of
organization in terms of setting up a business venture, introducing a new product or to expand
the business in the particular market. As per this scenario, management of the Amcor Limited
has selected China and UK as their preferred markets in terms of expanding their business (Ang,
Benischke & Doh, 2015). Following are certain macro environmental and geo-political factors of
China and UK:
PESTLE analysis of Chinese market
P: Political system has enough potential to enhance their economic conditions. Various formal
and informal rules have been made by their government which helps the economic conditions to
get stronger. It attracts the investors towards the economy and in the same manner; Amcor is
getting attracted towards the Chinese market for their expansion (Angeloska-Dichovska &
Mirchevska, 2017).
E: Continuous growth in the GDP of China has been the major reason for enhancing the pace of
the development. With the enhanced economic development, country is moving towards the
potential growth.
S: With the huge population, China has utilised their men force in an effective manner which has
made the China the most emerging country across the globe.

International and Global Business 6
T: With the improvised and unique technological development in the China, they have made
their effective position in the global market as the most innovative and advanced country
(Armstrong, et. al., 2015).
L: Chinese laws and regulations are effective enough to control unethical activities. Now they
have decided to develop rules in relation with the e-commerce activities as these activities are
increasing continuously and in order to control the unethical activities from e-commerce
industry, government has started working on formulation of legal frameworks.
E: Population of China is much aware regarding the saving the environmental conditions. Thus,
government has developed certain rules and regulations in relevance with protecting the
environmental conditions (Atzori, Iera & Morabito, 2014).
PESTLE analysis of UK
P: Political factors of UK are quite impressive as these factors prove the whole country as a fair
and stable country under which all individuals, organizations get equal rights and opportunities.
E: Great economic condition in relevance with other countries across the globe. It stands on the
fifth position in the world and second in Europe after Germany.
S: In UK, various public relation services are free such as health services with approximately 65
million inhabitants. Purchasing power of the individuals is quite high in relevance with the other
country’s individuals.

International and Global Business 7
T: UK has quite great innovative and advanced skills in relation with the technology and science.
This makes the country capable enough to attain its desired goals and the objectives (Bond &
Saggi, 2014).
L: Legal frameworks of UK are quite strong enough which are effective for controlling crime
rates. This influences the foreign direct investment as well as it is also beneficial in terms of
being the safest country across the globe.
E: Environmental conditions at UK are neutral as it is not much populated, thus, pollution
factors and other relevant factors which generate pollution are certainly less in comparison with
other countries (Burton & Cross, 2015).

International and Global Business 8
Trade and Business Policy
Trade Policy of China
China has acquired the effective position in the global market but still the China is failing to lead
and this is the reason, China has not acquired the effective position in the International Trade
Politics. Business and trade policy of China majorly focus on the innovation, business expansion
and preventing environment (Johanson & Mattsson, 2015). This enhances the opportunities for
the foreign companies to expand their business in the Chinese market because they provide
various services at cheaper rates in comparison with other parts of the globe. China has made
their policies in relation with attracting foreign investments and government authorities have
utilised its available resources with the view to make their country capable enough to compete
with the developed countries. With its effective trading policies, China surpassed United States
in 2013 and becomes the largest nation in the world which plays crucial role in International
Trade. China’s trading policies have rules under which certain countries could trade freely in
Chinese market. Those countries are South Korea, Switzerland, and Pakistan (Cavusgil, et. al.,
2014).
Trade policy of UK
Trade policy of UK includes various restrictions and regulations in relevance with foreign
investments, quality standards, etc. Policies of exports and the imports have also been modified
in relation with enhancing the country’s position in the global market. In 2016, United Kingdom
Trade Policy Observatory develops the policies in relation with the varieties of stakeholders for

International and Global Business 9
maintaining the UK’s trading environment beneficial for the whole Britain (Choi & Yeniyurt,
2015).
In relation with trading policies, Chinese market has less regulations and legal frameworks in
relation with the UK’s trading policies. Amcor Limited will be easily entered into the Chinese
market and the cost of the production will also be less in China in comparison with the UK’s
markets. With the less cost of production, organization will be able to provide its products and
the services in the international market at affordable prices. Amcor Limited is the leader in terms
of producing varieties of packaging. Thus, it has been recommended to the Amcor Limited that
Chinese market will be more suitable in relation with the UK market (Czinkota & Ronkainen,
2013).

International and Global Business 10
Assessment of risks and opportunities
In expansion of the business, lot of risk factors are involved which needs to beard by the
organizational management in an effective manner with the objective to attain the desired goals
and the objectives. As for the expansion of Amcor Limited in the international market, Chinese
market has been chosen with the view to attain the sufficient growth which is expected by the
management of the organization. With the emerging economy and the huge opportunities
available with regards to the expansion of the business, Chinese market has been finalised by the
management of the Amcor Limited (D. Banker, Mashruwala & Mashruwala, 2014). Following
are certain risk factors in China as well as in UK market:
 Legal and Tax System: Chinese government has imposed a number of rules and
regulations in relevance with the corporate income and the transfer pricing. Thus, it
could increase the cost of the production for the Amcor Limited as well as duties for
imports and the exports are quite heavy in China which ultimately enhances the prices
of the organizational products and the services. The same has been followed in UK as
tax system and the policies in relevance with the imports and exports are majorly
concentrated over collecting the import and the export fees (Demangeot, Broderick &
Craig, 2015).
 Threat of New entry: On the one hand, local competition and the chances of new
competitors are huge in Chinese market whereas on the other hand, it is quite less in
UK. Local competitors will easily the same products and the services at les prices in
relevance with the foreign companies, thus, it can generate negative outcomes for the
organization (Eteokleous, Leonidou & Katsikeas, 2016).

International and Global Business 11
To avoid these types of risks and to reduce the impact of these risk factors, organization needs to
adopt certain measures in order to mitigate the risk and its factors. These factors are avoidance of
risk, acceptance of risk and the transfer of risk. Avoidance of risk is the procedure under which
risk is ignored till it does not affects the business performance. While, acceptance of risk is the
step under which risk needs to be accepted for avoiding its impact over the performance of the
business. The last step I transfer of risk under which risk is transferred to the third party for
paying the damage occurred due to risk (Fletcher & Crawford, 2013).