Chappelli Cycles: International Expansion Report - China & Netherlands

This report assesses the potential for Chappelli Cycles, an Australian bicycle company, to expand its operations into China and the Netherlands. It identifies China and Netherlands as suitable markets, analyzing the macro-environmental and geo-political forces in each country, including political and trade policies. The report evaluates the opportunities, potential dangers, and risks associated with entering each market, considering factors such as market growth, competition (particularly from AZOR in the Netherlands), and trade stability. Ultimately, the report recommends China as the better choice for Chappelli Cycles due to its fast-growing economy, large population, and supportive trade policies, while also acknowledging the potential risks and opportunities in both markets. Desklib is a great source for students seeking similar solved assignments and past papers.

Running Head: INTERNATIONAL AND GLOBAL BUSINESS
Chappelli cycles pvt ltd
International and global business
Report
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INTERNATIONAL AND GLOBAL BUSINESS 1
Table of Contents
Brief introduction of Chappelli Cycles................................................................................2
Identification of two countries............................................................................................3
Macro-environmental and Geo-political forces in China...................................................3
Macro-environmental and Geo-political forces in Netherlands.........................................4
Trade and business policies of China................................................................................5
Trade and business policies of Netherlands.....................................................................5
Assessment of potential dangers, risks and opportunities................................................6
Recommendations and Conclusion...................................................................................7

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Executive summary
This report is basically on carrying the expansion operation of Chappelli cycles pvt ltd in
the Zones of Asia and Europe. This report has included the selection of two countries
from each zone and has also included the reason for choosing these two countries i,e
China and Neither land. This report has also included the Macro-environmental and
Geo-political forces related to these two countries. It has also included the analysis of
political policies whether they are favorable for the expansion operation of Chappelli
cycles pvt ltd or not. It has also included the trade policies related to the foreign
exchange business of the two countries and how they have reshaped their trade
policies from past years. It has also included the opportunities offered by these two
countries to the international companies and why they are getting attracted towards
these two countries. Along with opportunities there is also possibilities of risks and
threats because it has been experienced from many years that opportunity always come
along with possibilities of threats as ones opportunity can become the threat or risk for
other country. In this report focused is maintained for the selection of best country
among the two countries along with proper reason.
Brief introduction of Chappelli Cycles
Chappelli Cycles is the solitary Australian bicycle firm to victory an International Design
Award appreciating the exclusive designs and excellence of the product. The company
focus on making bicycles designed for the up-to-date urban cyclist. Chappelli
specialises in manufacture solitary speed, interior hub and urban traveller bicycles for
the advance city rider (Chappell, 2018). Company’s bicycles have individual designs,
attention-grabbing colours and appeal to persons observing for a more urbane bicycle.
Our customers are creators, draftsmen, stylish and people who appreciate good pattern
and escalate exclusive style for the new world. Pablo Chappell is the creator and the
head designer of Chappelli Cycles. Pablo is a multi-honour winning manufacturing
designer (Lang and Dickerson, 2017). When he was in school he gained award at
British design competition for an electric scooter. His dad Robert Chappell was a
specialized rider and had raced in the Tour de France league as well as for numerous

INTERNATIONAL AND GLOBAL BUSINESS 3
UK and French groups. Pablo grew up bounded by attractive bicycles, facilitating his
dad shape bicycles. Not astonishingly, his desire has continuously triggering to start a
bicycle company (Power et al, 2014). In 2009 he opened Chappelli Cycles with the
dream to produce beautiful design dedicated bicycles for the current rider that he and
she would affection to ride. That solitary vision still directors company today.
(Resource: Chappell, 2018)
Identification of two countries
As company management has recommended European and Asian marketplaces as the
finest markets for the companies development and in the middle of these two regions,
China from Asian region and Netherlands from European region has been selected.
China has been preferred because of speedy and reliable growth (Head and Ries,
2008). China is one of the fastest developing countries crosswise the globe and with
respects to this; numerous multinational companies have revealed their attention in
location up their business through which FDIs have been amplified. Apart from this,
China government is also inspiring FDIs and for the similar, they have made
advantageous policies so that multinational companies could effortlessly enter into
China market (Dianchun and Yu, 2008). China marketplace is known for its cheap labor
cost for the business operation. Other than china, company management has also
selected Netherlands marketplace because there is much scope for the cycle

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companies as manufacturing industry of Netherlands is very vast. AZOR is one of the
leading companies of Netherlands market involved in providing professional and stylish
bicycles (Pfattheicher et al, 2018). Thus, possibility for setting up the business in
Netherlands market is great because except AZOR, there are very few relevant
competitors. This will succor the company to discover novel products as per the mark
audiences’ weights and needs in command to develop a strong brand image against
AZOR.
Macro-environmental and Geo-political forces in China
Political aspect has countless impact on the directive of manufacturing markets in china.
Since the development rate of the marketplace has been stridden up with the outline of
globalization, overseas investors have displayed their attention so as the Chappelli
cycles. This has led the enterprise to get arose as the fast developing economy in the
world (Schortgen, 2012). Political policies, guidelines and strategies have aided the
country to develop and move towards expansion. China political situations were not
steady in the past due to wars may be trade on ground but later on political parties
have explored the market circumstances and recognized that political constancy is the
most important cause for the evolution and progress of wealth market in China.
Other than Political features, other macro environmental aspects also have a countless
impact on market situations and those aspects have strong association with the wealth
markets (Kang and Park, 2017). GDP of nation has been amplified which specifies
marvelous economic development through which intercontinental enterprises have
displayed up their attention to spend as well as to inaugurate their occupational
operation in China market. Manufacturing necessities are uninterruptedly growing, thus,
possibility for Chappelli cycles is ample high in command to set up their business
operation in the China market.
Macro-environmental and Geo-political forces in Netherlands
The Netherlands is a lowland nation, about partial of which is underneath sea level. The
shoreline contains mostly of banks, ahead which lays the terrestrial underneath sea
level, safeguard from submerging by structures of channels, walls, and manes.

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Netherlands economy is dependent on trade. Increasing openings and advance
environments for Netherlands in overseas markets are a strong advocate for free trade
for international market (Campelo et al, 2018). This has invigorated overseas investors
towards Netherlands and this has also motivated the administration of Chappelli Cycles
to select Netherlands as the promising choice to magnify their occupational.
Other than these policies, economic situations of Netherlands are also promising for the
worldwide businesses organizations, thus, Chappelli Cycles have enormous possibility
of establish their occupational in the focused marketplace together with the aim of
attaining preferred objectives and purposes . Scope for manufacturing development in
Netherlands market is huge because with the assistance of automation, Netherlands
would be capable to elevate its progress (Rees, 2017). Though, AZOR is already
present in the Netherlands marketplace and it is the one of the company who very
specialized as well as technical advance in the marketplace. In relative with this,
Chappelli Cycles have an immense chance to establish their occupation in Netherlands
marketplace due to enormous claim of manufacturing and challenging with AZOR, one
of the major competitors will assistance the organization to produce groundbreaking
creation selections through which suitable and operative stage might be establish in the
focused market.
Trade and business policies of China
China’s foreign trade department is known as Ministry of Foreign Trade and Economic
Corporation (MOFTEC) and major intention of this policy department is to aim at
emerging export possible, promising foreign trade, and improving export presentation.
Other than that, this policy is also involved in command to quicken the small level of
economic events to great level of economic events for decoration it as per the
international market circumstances through which supreme welfares might be derived
by Chappelli cycles.
Other from this, foreign trade policy of China emphases on each subdivision through
which suitable and pertinent activities might be engaged so that suitable and pertinent
results could be achieved (MOCPRC, 2018). With respects to the actions of Chappelli

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Cycles, foreign trade policy of China is promising, thus, it might be abridged that the
company would be able to enlarge its business in the China marketplace along with
achieving its chosen aims and purposes. Beside these benefits, scope of expertise is
cumulative quickly through which Chappelli Cycles would effortlessly be capable to
achieve the needs in term of manufacturing in the China marketplace and additional
aspect which inspires company to select China marketplace over Netherlands
marketplace is the population. China stands on the first place in terms of largest
population all over the world, thus, it is an enormous customer marketplace for all
industry (Haggblade, Hazell and Reardon, 2010). Steady economic and political
circumstances of China marketplace are other promising elements for Chappelli Cycles
to improve their commercial in the focused market and these will also assistance the
company shape its operative image and it might assistance the company to attain
foremost place in the bicycle segment.
Trade and business policies of Netherlands
The Minister for Foreign Trade and Development Cooperation is portion of the Ministry
of Foreign Affairs and is an associate of the Cabinet of the Netherlands. It assistances
in endorsing Netherlands business attention at European Union trade policy guidelines
which is better for Chappelli cycles. It also vigorously involves their energies at the
World Trade Organization (WTO). With respects to this, Netherlands guidelines in
section of trade and occupation are promising sufficient for the worldwide investors
(Holland trade and investment, 2018). Chappelli Cycles might effortlessly establish its
occupation in Netherlands marketplace as there are enormous chances in the bicycle
segment.
Chappelli Cycles has better its generosity in the Australian marketplace through a set of
operative applications and products like Aqua (most popular model), classic (for royal
feel), etc. These applications might also be announced in the Netherlands marketplace
in significance with the establishing an operative place in the focused market. In
command to attain positive results with the aim of establishing business in the
Netherlands market, company requires to explore its focused audience’s anxieties and
needs (De Haan, Inklaar and Jong‐A‐Pin, 2008). Other than this, company will also

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need to explore its main rival’s i.e. AZOR’s approaches and the products provided in the
marketplace. These will assistance the company to brand their products and facilities
exclusive and distinctive from its challengers. Other than this, it will also assist the
company to set up its operative place in the focused market .Thus; it can be abridged
that trade and occupation policies of Netherlands marketplace are promising adequate
for Chappelli Cycles to establish their business.
Assessment of potential dangers, risks and opportunities
China
Presently, China is one of the wildest rising economies crossways the world and their
trade and occupational policies are also supporting worldwide businesses to establish
their commercial in their marketplace (Li and Tang, 2010). This has aided China to
decrease the joblessness amount along with improving the buying power of common
man.
Netherlands
Netherlands marketplace is additional large podium for worldwide business companies
to enlarge their occupations (Nakatsu and Iacovou, 2009). In significance with this,
overseas investors have received eye-catching profit over their money investments,
thus, Chappelli Cycles would also be capable to improve its effectiveness along with
achieving its chosen aims and purposes.
Assessment Criteria China Netherlands
Potential dangers Powerful competition
(Salcano, Samchuly, etc.)
Trade instability
Existence of one of the
leading bicycle company
(Azor)
Envelopment of European
union.
Risks Copy of technology Copy of technology
Opportunities Wildest manufacturing The ingenuity of the

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developing economy and
need for bicycle in transport
operation.
European Union to stand
again on its feet by bringing
important enhancements in
manufacturing structure.
Recommendations and Conclusion
With respects to the above assessment, it can be abridged that China marketplace will
be the better choice for Chappelli Cycles in command to attain preferred aims and
purposes. China marketplace has numerous prospects as it is the fastest developing
nations in the world. Other than this, chances for improvement in manufacturing are of
the important need for the China marketplace. Numerous industries are still using old-
style methods for accomplishing their functionalities and with respects to this; Chappelli
Cycles would positively be capable to establish its operative place in the China
marketplace. This will assist the company to enlarge its business operation along with
achieving chosen aims and purposes. In relative to this, it is suggested to the company
to select joint venture in command to arrive into China marketplace. This marketplace
entrance policy will need Chappelli Cycles to discovery one organization affianced in
alike type of actions in China marketplace so that market circumstances, possibility of
the marketplace and focused audience’s anxieties and needs might be explored as well
as satisfied.
Deliberations of this research determined that China marketplace is touching towards
expansion at wild speed and in relative with this; they have availability of cheap labor.
Thus, Chappelli Cycles should select China market for their business enlargement. The
Chappelli Cycles is at present doing great in Australian marketplace but as the
Australian marketplace is becoming soaked, Company must decide to enlarge its
operation in the worldwide marketplace and they must find China marketplace as the
most suitable choice. In the preliminary period, company management had nominated
two choices i.e. Netherlands land and China but after investigation of external

INTERNATIONAL AND GLOBAL BUSINESS 9
atmosphere, it has been establish that China marketplace will be the most suitable
choice for the Company to enlarge its business operation.

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