This report analyzes Dairylink, a UK-based SME, as it plans to enter the Chinese market with its UHT milk, targeting children aged 3-11. It uses PESTLE analysis to assess external factors, discusses trade barriers, and addresses ethical and social issues, including cultural preferences. The report also explores various expansion methods and recommends suitable strategies for Dairylink. Key drivers for expansion include less competition and available financial resources. The company faces challenges like tariffs, regulations, and competition from established Chinese companies. Corporate social responsibility is highlighted as crucial for building a positive public image. The report concludes with strategic recommendations for Dairylink's successful entry into the Chinese market.