Global Marketing Strategies for Byron Bay Cookies in China

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GLOBAL MARKETING
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Contents
Executive Summery.....................................................................................................................................3
Introduction.................................................................................................................................................4
 Political Factors................................................................................................................................5
 Environmental Factors.....................................................................................................................6
 Legal Factors....................................................................................................................................7
 Economic Factors.............................................................................................................................8
 Social Factors...................................................................................................................................8
 Technological Factors......................................................................................................................9
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12

Executive Summery
Global marketing trend is increasing day by day as every business firm want to expand its
business globally for profit maximization. Australian cookies manufacturing company Byron
Bay wants to expand its business globally and it has already extended its business in European
countries so now it is planning to start its business in Chinese market. Before entering into
Chinese market the company needs to observe all the conditions of the country related to
political, legal, economic and environmental circumstances so that it can develop its business
strategies as per the requirement of Chinese market. This report evaluates all the political,
environmental, social, economic and technological factors which can affect the business
operations of Byron bay in Chinese market.

Introduction
Byron Bay is an Australia based cookies manufacturing company serving the market since last
25 years. This company started its operations in 1990 at very small level from its local market
and now it has expanded its business across the country. The company has extended its business
operations from local market level to industrial level with the help of continuous experiments
and its perfection of products. It has already extended its operations in European market also
with its wide range of products. Company provides quality products and modified the products
as per the customer and market requirements for attracting new customers and for retaining trust
and loyalty of customers. It introduces new products very frequently for maintaining its
productive image in the targeted market. After serving so many countries now the company is
planning to extend its business in China because of its biggest market. Chine provides
continuously growing and leading environment which helps the new businesses to grow in a
quick and easy manner. There are various factors in the economy which affects the global
marketing if companies.

Byron Bay in entering into the Chinese market for its business operations for that the company
needs to explore and analyze all the factors of the country before entering into it which can
affects the business operations of the firm. China has very strong and boosted economy for
developing the businesses. These factors includes the political, legal, social, technological,
environmental, cultural and economic conditions of the country. Analyzing all these factors helps
the organization in identifying all the opportunities as well as threats which the firm can face in
new targeted market. For successful business operations in china Byron bay needs to consider all
the factors of country and needs to follow all the rules and regulation set by Chinese government.
Byron Bay manufactures cookies of different varieties and flavors. It started its business from
cookie jars around the country and now expanded its business of cookies broadly.
 Political Factors
Political factor includes all the rules and regulation related to the political environment of the
country. China has passed various new regulations including formal as well as informal which
helped the economy to be stronger as compare to other developed economies. Currently it is
focusing on the development and expansion of e-commerce market in the country which would
be beneficial for all the existing as well as new organizations. Chinese market has efficient
policies for investors which helps the investors of worldwide nations in investing their amount in
different sectors of industry. Recently it has modified its bankruptcy and labor law which can
enhance the opportunities of the business in the market (Liu et al, 2018). Opportunities
Byron Bay can extend its business operations market of china as the political environment and
background of china is strong and beneficial for boosting new business operations. Byron Bay
can easily expand its business in Chinese market because of its cheap labor cost and increased
level of production of different items. China supports great level of foreign direct investment
because of its stable political condition which helps the organizations in flourishing in new
developed market. Business operations of new companies will expand its foreign investment
which will help the company as well as country in increasing its export conditions in the market.
Byron Bay can develop its business expansion strategies in accordance with the political
environment of china as it would make market expansion easier for the company and will help

the company in operating in the country for longer term (Martin-Rios, Demen-Meier, Gössling,
& Cornuz, 2018). Threats
As China is new in drafting the e-commerce framework so it can face market threats related to
privacy and protection of online data including digital signature, customer data etc. Reduction in
political freedom is the factor which can be considered by the business organizations as a threat.
Byron Bay can face challenges in the e-commerce market related to data security and protection.
Less knowledge of e-commerce in people will affect the business operations of Byron Bay in
online market.
 Environmental Factors
Environmental factors includes pollution, industrial and natural waste, climatic changes and
natural resources etc. Increased development affects the environmental conditions of the country
as it increases the pollution in the environment and reduces the availability of natural resource in
the environment of the country. China has large number of industries so the pollution and carbon
emission level of the country is also high. Environmental factors includes the weather conditions
also which can be in favor and against sometimes. Changing environmental conditions can
affects various industries like farming, agriculture and tourism etc. Opportunities
China has implemented various laws related to the environmental concerns and awareness.
Byron Bay can start the business on online level which helps to reduce the level of carbon
emission with the less use of vehicles. Byron Bay can implement various regulations related to
environment protection in the firm which will help the firm in extending its business operations
successfully. Byron Bay can extend its business successfully by using renewable sources of
energy instead of using natural resources. Byron Bay should make proper strategies for using all
the natural resources in an efficient manner for saving them from wastage. Byron Bay can
manufacture environment friendly products for successful business expansion and operations
(Heller, Selke & Keoleian, 2019). Threats

Scarcity of natural resources in china is the major threat for the companies which wants to start
its business operation in the country. Byron Bay can face challenges in extending its business in
Chinese market (Kasemsap, 2018).
 Legal Factors
Legal factors includes various laws existing in the country related to industry, labor, taxation,
employee’s benefits and other issues etc. Chinese government has implemented various laws and
regulations for establishment, liquidation, termination and operation of new ventures which can
have positive as well as negative impacts on the business operations of firm. Legal factors
includes the tax policies also related to manufacturing and service sector. China needs to
implement effective framework for secure online business. China has trade tariffs with many
other countries like Japan, Hong Kong etc. so the business expansion in china will help Byron
Bay to expand its business in those countries also without any extra efforts. Opportunities
Legal factor of the china will play an important role in the business expansion of Byron Bay in
the country as it will provide better facilities in lesser prices as compare to other countries. China
provides best and improved level of tax incentives which will help the manufacturing and
production sector in flourishing the businesses in the country. Byron Bay will require to
implement regulations for providing proper measures of privacy and validation of data. Before
entering into Chinese market Byron Bay should explore and understand all the rules and
regulations of Chinese legislation related to the business expansion. For successful business
expansion Byron Bay needs to follow all the legal rules and regulation related to china. Byron
Bay needs to develop effective pricing strategies according to the area of operation so that it does
not affect the productivity as well as sales of its products (Canosa, Graham & Wilson, 2019). Threats
Tax regime policies of china can affect the business operations of Byron Bay adversely. As china
is working on the implementation of e-commerce framework so it will create issues related to
consumer rights protection and tax rates implementation. Difference in tax and tariff rates of
country will affect the business of Byron Bay as it is not easy to understand all the legal rules for

any new country market related to trade. Changes in tax rates affects the pricing of products also
and price changes affects the sales rate of products (Mukherjee, Makarius & Stevens, 2018).
 Economic Factors
Economic factors includes the GDP growth of the country. China is the second largest country in
terms of economy. Economic growth of China is increasing at higher level which has reduced the
rates of unemployment, poverty etc. Economic conditions of China are market oriented and it
supports entrepreneurship. Increasing growth rate of country makes chins best destination for
business expansion and development. Opportunities
Byron Bay can easily expand its business operations in Chinese market because of higher
number of skillful workforce, excellent support towards business expansion and saving and
growth rates. Increased GDP growth of China is increasing the consumer’s purchasing power.
Byron Bay can successfully operate in the country as it provides workforce at lower cost as
compare to other developing countries. In china average income of individuals are much higher
and poverty rates are much lower as compare to other countries which is the biggest opportunity
for Byron Bay for expanding its business in Chinese market. Byron Bay can use various
recycling techniques for reusing the raw material for production purpose. By using recycling
techniques company can manufacture new products with the use of used products which will
help to save the natural resources. Trade patterns of china are changing regularly which increases
the import and export of the country. This change in trade pattern will help Byron Bay in
increasing its production in the country and in approaching other nearby countries also for
business operations (Burns, Cullen & Briggs, 2018). Threats
Increased inflation rates, interest rates and property rates are the biggest challenges for Byron
Bay to start its business operations in china. Increment in the bank rates also can reduce the rate
of employment and productivity. China’s double taxation norms also affects the operations of
Byron Bay as it will increase the tax burden on the company.

 Social Factors
Social factors of country includes the demographic conditions, population growth and age
distribution conditions of the country. It also includes the social as well as cultural parameters of
country. Changes in social and cultural trends of country affects the business performance of
existing as well as new organizations. Social values also includes social behavior, lifestyle,
family size, healthcare, education level and religious conditions of individuals. Opportunities
Chinese government encourages the business expansion in the country as it will increase the
employment rates in the country. So it would be beneficial for Byron Bay for its business
expansion. Increased literacy rate of china will also help Byron Bay in its business expansion as
more people will be available for workforce as well as for customer retention. Increased literacy
rates increased the internet users which helps the company to be recognized in the target market
easily though online mediums. Improved healthcare, living standard and lifestyle patterns will
help Byron Bay to increase its productivity in Chinese market. Byron Bay can offer its in wide
range of varieties for attracting more number of customers and it can modified its products as per
the customer requirement for gaining customer trust and loyalty (Wang et al, 2019). Threats
Chinese government’s decision of increased wages will be a challenge for Byron Bay in business
operations as the company needs to pay more wages to the labor which can reduce the business
profit level at the initial level of business operations.
 Technological Factors
Technological factors includes all the factors related to product development, purchasing
mechanism, distribution management, product distribution mechanism and product technology
etc. It also includes all the technical advancements and strategies related to the industries. It
includes new ways of production, manufacturing and distribution by using internet and
telecommunication methods (Asif, Xuhui, Nasiri & Ayyub, 2018). Opportunities
Technological environment of Chinese market allows business entrepreneurship in the country.
Innovation centered strategies of china will help Byron Bay to start its business operations in

country successfully. Advancement in technology and science in china will help Byron Bay and
other companies to flourish and china at higher level. Improved advance technologies of china
will help Byron Bay in making large quantity of production in lesser time in a cost effective
manner. Technical advancement of country will increase the production capacity of the country
which will help in reducing the export ratio of country which indirectly increases the GDP
growth of the country. Advancement of technical innovations increases the methods of
advertising the products of any company which will help the firm in introducing its products in
front of maximum number of population. By using technical methods Byron Bay can deliver its
products to the maximum numbers of customers and can easily get the feedback of customers
about its products. Proper feedback taking helps the firm in improving its quality of products for
better customer satisfaction (Zhang, Ma & Morse, 2018). Threats
Chinese market has lesser number of online payment options and less safer options of online
payment which can be a challenge for Byron Bay in business expansion. Expansion of B2C
industry in china can affect the business operations of Byron Bay as Chinese customers does not
prefer online payment method (Pan, Chen & Zhan, 2018).

Conclusion
It has been concluded from this report that analysis of all the aspects of political, environment,
social, economic technological and legal factors helps the organizations in expanding its business
operations in global market. Global marketing helps the organizations in profit and productivity
maximization. Every factor has its positive as well as negative impacts on the business
operations. Organizations can improve these effects of all these factors by developing effective
business strategies. Analysis of all the factors will help Byron Bay in expanding its business
operations country wide and it will help in eliminating the negative impacts of these factors on
the business operations of these organizations.

References
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organic food purchase intention and the moderating role of awareness: A comparative
analysis. Food Quality and Preference, 63, 144-150.
2. Burns, C., Cullen, A., & Briggs, H. (2018). The business and politics of farmers' markets:
Consumer perspectives from Byron Bay, Australia. Australasian Journal of Regional
Studies, The, 24(2), 168.
3. Canosa, A., Graham, A., & Wilson, E. (2019). My overloved town: the challenges of
growing up in a small coastal tourist destination (Byron Bay, Australia). Overtourism:
excesses, discontents and measures in travel and tourism, 190-204.
4. Heller, M. C., Selke, S. E., & Keoleian, G. A. (2019). Mapping the influence of food
waste in food packaging environmental performance assessments. Journal of Industrial
Ecology, 23(2), 480-495.
5. Kasemsap, K. (2018). The role of information system within enterprise architecture and
their impact on business performance. In Global Business Expansion: Concepts,
Methodologies, Tools, and Applications (pp. 1078-1102). IGI Global.
6. Liu, A., Shen, L., Tan, Y., Zeng, Z., Liu, Y., & Li, C. (2018). Food integrity in China:
Insights from the national food spot check data in 2016. Food Control, 84, 403-407.
7. Martin-Rios, C., Demen-Meier, C., Gössling, S., & Cornuz, C. (2018). Food waste
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Engineering, 35(1), 05018013.
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