BluEarth's China Expansion: International Business Report Analysis

This report analyzes the potential for BluEarth Renewables, a Canadian renewable energy developer, to expand its operations into China. The report begins with an introduction and then explores various factors influencing business operation decisions in China, including political, economic, social, technological, and environmental factors, using a PESTLE analysis. It highlights the growing Chinese economy, its large population, and the increasing demand for renewable energy. The report also examines marketing aspects, emphasizing the opportunities for foreign investment and the need to adapt to changing consumer preferences. A business model canvas is presented to illustrate key partnerships, activities, resources, and financial aspects of BluEarth Renewables in the Chinese market. The conclusion summarizes the positive aspects of China's business environment, including government support for renewable energy and the availability of a skilled labor force, while also acknowledging the importance of addressing environmental concerns and the need for effective marketing strategies. The report suggests that China presents significant opportunities for BluEarth Renewables' future growth.

Running head: International business
INTERNATIONA
L BUSINESS
bLUEARTH RENEWABLE DEVELOPERS

International Business 1
Contents
Contents......................................................................................................................................................1
Introduction.................................................................................................................................................2
Elements influencing business operation decision......................................................................................2
Political factors........................................................................................................................................2
Economic factors.....................................................................................................................................3
Social factors:..........................................................................................................................................3
Technological factors:..............................................................................................................................3
Environmental factors:............................................................................................................................4
Marketing Aspects.......................................................................................................................................4
Business Model Canvas...............................................................................................................................5
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

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Introduction
Based on the assignment, the country chosen is China and I am assuming BluEarth
Renewables INC. a renewable energy developers which is headquartered in Calgary, Canada. In
order to maximize the wealth of the company it has decided to expand its business operations in
China which is an emerging economic nation. In this report, it is explained that the elements of
china’s business environment affect and influence the business operation decision taken by the
owner. All the aspects covering marketing and operations are being explained and the benefits it
will obtain after setting up the business there. Added to the assignment given, Business model
canvas is also prepared for renewable energy business to be settled in china.
Elements influencing business operation
decision
There are various factors (macro environmental) which influence the business operation
decisions in China. An analysis is being carried on to know the factors and how they influence
BluEarth Renewables setting up in China. A PESTLE analysis (includes political, economic,
social, environmental and technological factors) is being done keeping in mind how it is going to
affect the business there (Ho, J. K. K. 2014).
Political factors: Political consultation is one of the most important factor that
affects business in various ways. China’s political systems is no more a complex system as
compare to past years. The political stability is one of the most asked questions by foreign
industries. The conflict between political parties and country’s central government has improved
so far it creates a path for foreign country’s to set up their businesses. It’s a myth that china’s
system of congress is not flexible enough for foreign businesses setting up here. There are
government regulations who have formed both formal and informal rules to abide by industries.
In China there is an unsettled force which is beneficial for any industry there for a long term plan
it gives the freedom to stabilize new industries and greater future prospects. The government in
China has mainly focused on developing businesses there and adapt e-commerce effectively.
Though China has very less experience in drafting regulations regarding e-commerce but the
growth seen is commendable and covered the whole market by having bigger shares. It can be

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said that political factor is much flexible in terms of setting up business in China it will help to
grow BluEarth renewable developers and promises to be for a long term.
Economic factors: China’s economy have grown significantly in these recent years.
There GDP has increased and has become the fastest growing sector of all. The surveys and
reports shows if China will continue to grow at this rate it will surpass other countries GDP soon.
It also includes factors like adequate rate of savings, skilled labor in abundance, the exportation
of business and the urban growth it promises. China’s GDP allow industries to add value to the
society as much as they can. A great example for abundance of workers available in china and
that too at a very low cost is Apple. Big companies like Apple have been hiring since long, much
of their workforce from China. Also china has given a relax to the restrictions they have applied
for foreign countries which are planning to establish their businesses in order to promote foreign
direct investments and increase their GDP in economy to compete with other countries. The
main industrial exports settled and manufacture in China are electronics, textiles, garments which
all requires various sources of energy to manufacture goods so it gives BluEarth renewable
developers an opportunity to grow more in the business environment. So it is concluded that
China’s economy will help grow more and at a faster pace.
Social factors: With the growing population China is one of the most populated
country in the world and this much population affects demographically the business there. The
fluctuating growth and age distribution comes with fluctuating taste and preferences it requires a
proper study on their behavior. The alteration in trends and values highly depends upon
consumers, their lifestyle, their education and religion. The literacy rate is commendable, the
majority of people there are literate and China is known to be a communistic culture so it makes
easier to know the aspects regarding their tastes and preferences. The market for renewable
energy is adapting as the nature of the business is appealing it promotes the use of renewable
energy and adopt ethical practices which attracts clients automatically.
Technological factors: The technological factor is one of the talking point in
China. As China is the only country who have grown so far in this sector and set standards for
other countries. The up to date technology is of greater advantage for any business who is
seeking to establish there. It promotes latest technology by innovating products, the mechanisms
of purchasing and distributing like intranet and internet, Develop new methods of working. For

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an industry like BluEarth renewable developers technology plays an important role and works
for the best to improve their product quality by saving costs and time utilize in it.
Environmental factors: China’s government pay a special attention to
environmental factors as pollution and degradation in China is a biggest challenge for a
renewable energy industry. So the Chinese leadership is paying attention to the challenges
regarding protection of environment on the same hand BluEarth Renewable developers’ deals in
producing renewable energy and keeps in mind the optimum utilization of resources.
Marketing Aspects
The challenge in entering the market of China is not that tough as it seems in the past
years, the image of China’s market for foreign investments is not clear in the minds of investors
and establishers but it is a myth which is making the rounds. The market in China is constantly
changing as the time passes by, with the increase in number of people there the spending
consumers are also increasing which is one of the huge attraction towards China’s market to set
up a business here. The economy of China shows a decline in the graph of domestic market
which is a positive sign for foreign companies to think of diversifying their business and invest
in China. As the survey says, China being a homogenous market and no uniformity is present in
the market which creates a path for new foreign businesses to focus on sub-markets and target on
different segments to cover up the whole market. In terms of population there, it is emerging fast
and that affects the tastes and preferences of the customers which is changing constantly. But on
the other hand with the increase in population there is also an increasing number of new buyers
and consumers which are easy to gain. The market is moving fast towards such customers to gain
them. BluEarth Renewables produces renewable energies which is required by most of the
industries in China whether they are textiles or IT industries so the requirement of different
sources of energy is in huge numbers. The need to reassess the requirements and preferences is
high in this case and in order to compete in market. As per the analysis it is known that China is
technology driven and clients need an assurance that they get up to date technology so their need
of renewable energy is much higher. (Kostelijk, 2015).

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Business Model Canvas
A business model canvas is a strategic chart or template of a management which
describes the infrastructure, business requirements, value propositions, key partners, key
suppliers, key resources and the activities which are required to perform and the finances to
support these requirements. What customer segment is being followed by the business, the
benefits of following a channel of distribution, the cost involve in the said channel of
distribution. The cost structure and revenue streams are explained in the business model canvas.
Here it is the business model canvas for BluEarth Renewables Developers Inc. is presented to
show various aspects:
Key Partners
People Groups
Landowners
Suppliers
Lenders
Shareholders
Entrepreneurs
The key supplier
of BluEarth is
Canadian Solar,
Inc. which is
engaged in solar
modules.
Financial
Resources
Equipment
Solar parts
Key Activities
Diversity in
generation type
Geography
Lifecycle stage
stability
Long-term returns
for shareholders.
Value
Proposition
Foundational
Values
Organizational
Values
The customer
problems that we
are helping to
solve are
renewable sources
of energy that we
produce at a low
rate.
The services and
products we offer
is developing
energy,
Customer
Relationships
The relationship a
customer segment
want from us is of
trust and a long
term successful
relation and
promises of best
innovations with
an updated
technology.
This model has
focused on the
requirements of
customer segment
only by providing
sustainability,
innovated
Customer
Segments
Textile Industries
Steel plants
FMCG
IT Industry
Government
Manufacturers
Corporates

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Turbines, Shaft,
Hydro belt
Wind mill blades
Construction
equipment
Accessing capital
Provide financial
strength
Deep Experience
independent
producer of
power,
hydroelectric.
Wind power.
The need for
renewable energy
(hydro, wind,
solar) facilities,
greenfield
projects are being
satisfied.
products by
utilizing the
resources
optimally in order
to get subsidized
from the
government.
The relationship
with segments
does not involve
huge costs they
are cost effective.
Key Resources
The key resources
required by the
value propositions
are up to date
technology to
obtain the goals of
innovation and
labor force to
execute the
operations.
Our Distribution
Channels
The customer
segment wants to
reach us by direct
channel and no
other party or
chain involved in
it.
The channels are
integrated on the

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channels are
B2B (business to
business)
B2G (business to
government)
basis of business
operation
requirement.
Direct distribution
channels works
for the best from
the past year
experiences.
Direct channels of
distribution
(B2B), (B2G) are
one of the cost
efficient channels
of distribution.
Cost Structure
The inherent costs in the business model are of
equipment cost which is most required.
The key resources which are most expensive are
blades, solar plates, shaft, turbines and
construction equipment which cannot be
dismantled.
The key activities which involves huge costs are
advertising, purchasing equipment, the area
required to establish business.
Revenue Streams
Customer pay for ethical business practices which
are environment friendly.
Sustainability
Environment Clean and Green energy
Cheap Rates

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Conclusion
It is concluded that China has got greater aspects for the future growth of BluEarth
Renewable Developers. The flexibility in various factors can be seen after the analysis done on
China’s business prospects which affects the business operations of a foreign venture which is
BluEarth Renewable Developers deals in renewable energy. The nature of the business is also an
advantage as it promotes renewable sources of energy, subsidy would be given by the Chinese
government or central government for carrying out such ethical business practices. The analysis
shows how different factors be it cultural and social, environmental, legal and political that they
are positive to set up any business there. The flexibility in these factors allow BluEarth
Renewable to plan their business marketing strategies for a longer term. The expectations are
good enough for operations held in China as the growth prospects shows a good curve. The only
limitation in establishing the business in China would be environmental factors, as China’s
government is strict regarding the use of resources and industrial waste that straight goes into
seas. So this limitation has to keep in mind while establishing business there. A saving in time
and costs is higher than the domestic country itself as the labor force available are huge but they
require less incentives as compare to domestic country. It is said that China would be a great idea
to set up BluEarth Renewable Developers there.

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References
Ho, J. K. K. (2014). Formulation of a systemic PEST analysis for strategic analysis. European
academic research, 2(5), 6478-6492.
Kostelijk, E. J., & Alsem, K. J. (2015). Doing Business with China: A Marketing Perspective.
Hanze University of Applied Sciences.