International Business Strategy Report: Grange Shiraz in the UK Market

This report details the international business strategy for Grange Shiraz, a wine from Treasury Wine Estates, targeting the UK market. It begins with an executive summary highlighting the UK wine industry's growth, the target demographic (24-45 year olds), and the intended distribution channels. The report then delves into industry and market analyses, including Porter's Five Forces and competitor analysis, followed by a SWOT analysis to assess the brand's strengths and weaknesses. The international strategy section discusses the global strategy approach, the application of Dunning's Eclectic paradigm for market entry mode selection (direct exporting), and the organizational structure. The report also covers international human resource considerations and the marketing mix employed. The report concludes with a discussion on the future of the business, aiming for a 3% market share by the end of 2023. The appendices includes tables and competitor analysis.

Running head: INTERNATIONAL BUSINESS MANAGEMENT
International Business Management
Assignment 2
Student’s name:
Name of the university:
Author’s note:

1INTERNATIONAL BUSINESS MANAGEMENT
Executive Summary
The purpose of the paper is to highlight the international business strategy of Grange Shiraz,
a famous wine of Treasury Wine Estates from Australia. Grange Shiraz is going to be
marketed to the UK. The wine industry in the UK is growing; however, the people of the UK
have become health conscious and they drink responsibly. The net worth of the wine industry
in the UK was £130 million in 2017. Treasury Wine Estates will target the customers aged
between 24 and 45 in the UK. In addition, restaurants, bars and supermarkets will be used for
selling the wine. Almost 60% of the adults in the UK drink wine. SWOT analysis is
conducted to gather the knowledge of the strengths and weaknesses of the brand. Treasury
Wine Estates will take the Global strategy in which they would not change the quantity and
taste of Grange Shiraz to market in the UK. Dunning's Eclectic paradigm is used to identify
the market entry mode and internalisation strategy would be used for Treasury Wine Estates.
The organisation is going to use direct exporting as the mode of entry in the UK in which the
organisation will control the distribution and logistics. Treasury Wine Estates will not
produce the wine in the UK at present and they will distribute the wine to the UK. The
organisation will use polycentric approach in recruitment and process of following
organisational structure is provided. Finally, the marketing mix of Grange Shiraz is given
where it is shown that organisation is going to use competitive pricing strategy. Treasury
Wine Estates will set the target of 3% market share to be achieved by the end of 2023.

2INTERNATIONAL BUSINESS MANAGEMENT
Table of Contents
1. Introduction............................................................................................................................4
2. Industry analysis.....................................................................................................................4
Identifying the potential opportunities that Grange Shiraz could pursue..............................4
3. Market analysis......................................................................................................................5
Market segment......................................................................................................................5
Target market.........................................................................................................................6
4. Competitors’ analysis.............................................................................................................7
Porter’s five forces analysis...................................................................................................7
Characteristics of the competitors..........................................................................................8
5. SWOT analysis.......................................................................................................................9
6. International strategy............................................................................................................11
7. Entry mode...........................................................................................................................11
Dunning’s Eclectic Theory..................................................................................................11
8. Sound strategy to best enter the UK.....................................................................................13
Structure of the business......................................................................................................13
International human resource:..............................................................................................15
Marketing Mix.....................................................................................................................16
9. Future of the business...........................................................................................................17
10. Conclusions........................................................................................................................17
Reference List..........................................................................................................................19
Appendix....................................................................................................................................0

3INTERNATIONAL BUSINESS MANAGEMENT

4INTERNATIONAL BUSINESS MANAGEMENT
1. Introduction
International management of business mainly focuses on the strategic planning for
operating in an international market which provides an in-depth analysis of the organisational
capabilities. International management of business provides specialised functions required for
the finance, human resource and marketing in the foreign market (Hitt et al. 2016). In the
previous assessment, the external environment of the UK has been explained along with
business trading and financial conditions. In the assessment, market entry strategy of
Treasury Wine Estates’ product Grange Shiraz, famous bottled wine in the UK market is
described. In the first part, market analysis and industry analysis is conducted focusing on the
competitors in the UK. In the following part, market entry strategy and international strategy
of doing business in the UK is described. In the final section, appropriate market entry mode
along with organisational structure and human resource requirement is provided.
2. Industry analysis
Identifying the potential opportunities that Grange Shiraz could pursue
The UK wine industry is now going through the phrase of the glorious period and the
English wine industry is now worth of £130 million. According to the published report of
WSTA (Wine and Spirit Trade Association), the UK had more than 504 vineyards and almost
134 wineries in all over the Wales and England. The UK has a total 2,000 hectares vineyard
that can collectively produce a wine of 5.06 million bottles (Nibusinessinfo.co.uk 2018).
Most of the wine producing vineyards are situated near South West, East Anglia and South
East parts of the UK. Among all the wine, the UK market mostly sells sparkling wine (66%),
24% of white wine and 10% of rose wine (Wsta.co.uk 2018). In the UK, the government has
cut down the duty by 2% on wine providing relief for a growing wine industry in the UK.

5INTERNATIONAL BUSINESS MANAGEMENT
Industry is growing
The UK wine industry is growing as it has been successful to increase the sale of wine
by 16% from £113 million turnovers to £131 within just two years (2014-16) (Wsta.co.uk
2018). The UK wine industry had also observed a considerable jump of £55 million in just
five years (2009-14). In the UK Customs statistics and HM Revenue showed that 65 new
wine producers got the licence of doing business in the UK throughout 2015-16
(Nibusinessinfo.co.uk 2018).
Size of the wine industry
The UK wine market is the 6th largest wine market in the world. Wine and spirit
industry in the UK created £50 billion economic activity in which £10.3 billion sales have
come from the wine (Delmas and Grant 2018). The wine industry in the UK employs more
than 554,000 people all across the UK in wineries and through the supply chain. In the UK,
almost 60% of adults drink wine and it is almost equivalent to 31 million customers in the
UK. WSTA (2018) report stated that wine in the UK is now the preferred drink for 57% of
people who like to have wine over other alcoholic drink. The wine industry in the UK
generated £ 10.9 billion through the sale and paid £6 billion in duty and VAT paid by the
customers. The wine industry in the UK is worth £6.6 billion to shops and supermarkets and
£4.3 billion to bars, pubs and restaurant (Morrison and Rabellotti 2017).
3. Market analysis
Market segment
Wine market can be segmented in the UK by three different divisions. First one is
demographic segment; where the wine sellers can target the customers based on the age and

6INTERNATIONAL BUSINESS MANAGEMENT
economic condition of the customers. Age group of the wine customers is mainly between 24
and 45. Wine is mainly purchased by the customers who belong to the higher income group.
The second one is the behavioural segment; where the wine sellers can target
everyday loyal and engaged newcomers. Everyday loyal customer group like wine and prefer
to entertain at home (Gilinsky et al. 2016). For these types of customers, wine is part of the
regular routine and wine is formal for them. Engaged newcomers are mainly millennial and
for them, wine is part of socialising.
The third one is the psychographic segment; where the wine-sellers like to sell the
wine to the customer's group like image seekers, enthusiasts and overwhelmed. Overwhelmed
group of customers like to drink wine and they do not know which one to buy and many of
the customers purchase the wine through label design (Anderson and Nelgen 2015). Image
seekers type of customers like to drink wine for maintaining the status symbol and they like
to be first to try the new wine and they are open to innovative packaging. Enthusiasts' people
like to think of themselves as knowledgeable about wine. These types of customers are
cosmopolitan centres and they are influenced by ratings and scores.
Target market
Grange Shiraz is made from Shiraz Grape and it has a small percentage of Cabernet
Sauvignon. The wine manufacturer, Treasury Wine Estates (TWE) can target the customers
aged between 24 and 45 in all over the UK. This age group is large in numbers and these
people are mostly professionals and family persons. The target customers of Treasury Wine
Estates' Grange Shiraz would be both male and female. Therefore, the primary target market
of Grange Shiraz would be the customers aged between 24 and 45, both males and females.
The UK market is ever-changing, vibrant and competitive. The UK economy encourages
customers to drink wine to the adults more frequently.

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The secondary target market of Grange Shiraz would be the bars, pubs and restaurant
in which the firm can sell their large quantity of the wine bottles. Most popular drink in the
UK at restaurants and home is red wine. Therefore, TWE needs to try to enter the UK market
targeting restaurants, bars and pubs across the UK.
4. Competitors’ analysis
Porter’s five forces analysis
Bargaining power of
customers
The customers have different brands of wine in
the UK and the brands offer different types of
wine. This industry is considered oversupply
and consumption. The customers' can easily
switch their choice of wine in the UK
(Newfoodmagazine.com 2018).
Medium
Bargaining power of
suppliers
Wine manufacturers have their own vineyards;
however, they need to supply different raw
materials from the local or international
suppliers.
Medium
Threat of substitutes The competitors in the wine industry can limit
the price limit and the UK consumption
patterns show that 40% of the wine consumers
are not regular wine purchasers. Therefore, the
customers can shift their choices.
High
Industry rivalry Industry rivalry is high in the UK wine market
and major players in the UK wine market are
Isla Negra, Barefoot Shiraz and Yellow Tail
High

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Wine (Bruwer et al. 2017). In the UK market,
many of the foreign wine-sellers have a large
market share.
Threat of new entrant New wine sellers can come to the UK to
market; however, opening a new winery is
expensive. Customers have low switching cost;
however, new wine company needs to have
access to industry distribution channel.
Low
Table 1: Porter’s five forces of the wine industry in the UK
(Source: Self-developed)
Characteristics of the competitors
In the UK, domestic wineries produce wine and many of the foreign wine companies
sell their wine in the UK industry. Competitors of Grange Shiraz will be both international
wine brands and the domestic wine brands of the UK (Gain.fas.usda.gov 2018). In addition, a
general characteristic of domestic wine brands is that they have their own vineyard; therefore,
the cost of the wine will be lower than the foreign wine. Foreign wine brands are very
popular in the UK and many foreign wine companies do their bottling in the UK (Kelley et al.
2016). Wine brands in the UK are large ones and they spend many pounds just to promote
their wine. In the UK, many of the online platforms are there to sell the wine through the
internet.
Competitors Strengths USP Marketing strategy
Isla Negra
(Producer is Cono
Sur Vineyards and
Isla Negra started its
wine production in
the year 1993. It has
This wine is made
from organic
agriculture and taste
It takes the social
media marketing
strategy and they do

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Winery). both red and white
wine. Made from the
grapes of the natural
fruit bowl.
is loved by wine
lovers. Taste from
Chile.
advertisement in
restaurants.
Barefoot Shiraz
(Barefoot)
It is a California
based wine
manufacturer and it
is world's most
awarded wine firm.
It tastes great with
BBQ food.
It provides both red
and white wine.
Different types of
wine stocks are their
key factor of success.
It has been doing
marketing through
charitable occasions,
online media and print
media.
Echo Falls Merlot
(Merlot
California)
It is owned by
California Merlot.
Echo Falls tastes
nice and with ripe
plums and
blueberries.
Merlot sells different
types of wine and it
has been on the
market since 1990.
The best-selling
sparkling wine is
famous in the UK.
It has been doing
marketing with
discount and print
media advertising with
a lot of determination
Table 2: Competitors' analysis of the wine industry in the UK
(Source: Self-developed)
5. SWOT analysis
Strengths
 Treasury Wine Estates does the group
activity which sometimes appears to
Weaknesses
 The profitability ratio and net
contribution percentage is below the

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be highly profitable
 The stock market is well-established
and they have a long-term rising trend
 Superb performance in new market
 Good return in capital expenditure
 Successful track records on new
market
industry average
 There is a gap in the product range
 Lack of demand in the core marketing
area
 Suppliers relationship
Opportunities
 Understanding new environmental
policies
 New trend in the behaviour of the
customers
 New technology provides an
opportunity for the organisation
(Tweglobal.com 2018)
 Employees’ capability
Threats
 Changing consumer behaviour
 Rising pay level
 Shortage of skilled workforce in a
new market
 New law and regulation
Table 3: SWOT analysis
(Source: Self-developed)
TWE has it headquarter in Melbourne and it is in the global winemaking and
distribution business. Apart from wine, it produces a different spirit and alcohols. Wineries of
TWE are situated in Penfolds and Lindeman. TWE’s Grange Shiraz does a good
performance in the new market. Grange Shiraz has the good return on capital expenditure. On
the other side, TWE has been facing a lack of demand in the market and suppliers'
relationship is not good. Grange Shiraz may have the opportunity of employees' capability
and regulation policies in the foreign market (Tweglobal.com 2018). However, changing

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consumer behaviour and the newly implemented spirit laws may create an issue for the
organisation.
6. International strategy
TWE can take the global strategy as the organisation sacrifices the responsiveness to
the local requirement of the market. In the wine industry; the company can hardly make any
local changes of the taste of the wine. In order to increase the efficiency of the market; the
company does not change the taste and service of Grange Shiraz. The global strategy is
completely opposite of multi-domestic strategy. Grange Shiraz would not change the taste
and quantity of the wine bottles as they are planning to sell the wine bottles exactly accurate
like in Australia. The global strategy provides economies of scale to the company by offering
essentially the product in each market (Johnson and Purkis 2015).
TWE will have its own supply chain distribution so that it can deliver the products on
time. Treasury Wine Estates’ Grange Shiraz will be sold in across the UK in three different
places, supermarkets, wine shops and in restaurant and bars. TWE can gain efficiency by
creating a global brand by the unique taste whenever possible. Global strategy will be
effective for Grange Shiraz as the customers do not hear about this new product yet.
However, the customers are used to with Shiraz grapes wine from other brands and this new
brand will enter the new market with ease.
7. Entry mode
Dunning’s Eclectic Theory
Eclectic paradigm has a three-tiered framework which helps to follow in
understanding the advantage to pursue FDI (Dunning 2015). Dunning's Eclectic paradigm is
completely depended on the assumption that the companies avoid the transaction in the open

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market when the companies carry internal transaction lower costs. Competitive advantage is
about assessing the benefit of doing business in the certain country. The business applies to
the availability and the organisation can understand the costs of resources in the functioning
of the country. The second factor is about ownership advantage which has the proprietary
information. Before doing the business; the organisation needs to have the copyright, patent
rights and trademark (Dunning 2015). The third factor is about internalisation advantage as it
can have the cost-effective for the company.
TWE will take the advantage of own production rather than producing a partnership
arrangement. As stated by Li et al. (2017), internalisation theory focuses on imperfection in
the product market and it only occurs when the companies perceive the benefits to cross the
costs. Internalisation may lead to risks the business as the company does not have enough
idea of the foreign market. Grange Shiraz will take the strategy of moderate international
activity at the first step. Treasury Wine Estates will take the strategy of direct exporting to
enter the UK. Direct exporting leads to investing more capital abroad. Direct exporting leads
to be responsible for the organisation's logistics of shipment and for collecting of the
payment. TWE is a large and global organisation and it is capable of making a potential profit
without intermediaries. The process of direct exporting would be as follow:
 Treasury Wine Estates fill order forms from the foreign buyers who like to have the
products
 Seeking out for producing extra bottled wine
 Exporting directly through own shipment and logistic channel
 Taking permission from Department of Commerce, trade offices, freight forwards and
international banks

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8. Sound strategy to best enter the UK
In the UK, direct exporting outside the EU countries is known as ‘third countries
exporting’ and the company must have the appropriate license to export. TWE’s Grange
Shiraz will make the export declaration to customs through the UK’s National Export
System. TWE makes sure than import taxes, VAT and duties of the destination country must
be paid in necessary. In the UK, the Commission issues Notices and Directives on general
matters so that the company must be responsible, authorities and competent designated for
reinforcement and liaison purpose (Tyler et al. 2017). The UK government is responsible for
enforcing the wine regulation in the UK in case of importing, bottling, UK production and
wholesale distribution.
Structure of the business
In Australia, the business follows a hierarchical structure where the Board of
Directors are at the top and the Board of Directors command the subordinates for their
activities. Hierarchical structure of the business provides the clear chain of command and
clear path of advancement for advancing and departing of the superior. Hierarchical structure
also provides specialised groups in different departments.

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Figure 1: Home country organisational structure of Treasury Wine Estates
(Source: Tweglobal.com 2018)
In the UK, Treasury Wine Estates will new to export and it will treat exporting
differently from the home country of Australia. The organisation is going to use different
personnel and different organisational structure. TWE is going to make the different team for
direct exporting of Grange Shiraz which is likely to lead increase sales. The organisation will
do market research to locate the foreign representatives and buyers. The marketers will also
do contracting and evaluating of foreign representatives.

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Figure 2: Proposed organisational structure of Treasury Wine Estates in the UK
(Source: Self-developed)
International human resource:
TWE is going to market its product Grange Shiraz, bottled wine in the UK. Therefore,
the organisation is going to recruit new staffs to market the products to wine shops,
supermarkets and restaurants and bars. TWE is going to use direct exporting so that the
organisation will need a proper channel of distribution. TWE will need to recruit new staffs,
sales representatives, agents, distributors and general staffs working on logistics and
shipment. Sales representatives will work on a commission basis to gather the customers. The
organisation will also have the agents who will not have the legal authority to obligate the
firm. TWE will also recruit the distributors who will purchase the merchandise with
substantial exporters from the exporters. From the distributors, the wine bottles will reach
foreign retailers and direct exporting will eliminate the extra expenses. Treasury Wine Estates
will take the strategy of Polycentric approach in which the company takes the strategy of

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limiting the recruitment to the nationals of the host country. Therefore, TWE will recruit the
employees from the UK and it will reduce the cost of foreign operations. The primary
objective of the polycentric operation is to hand over the distributorship responsibility to the
people who know the UK very well. TWE will recruit the staffs through the interview and the
staffs would be given induction and on-the-job training to improve the performance. Fringe
benefits would be given so that the staffs perform well.
Marketing Mix
Product: TWE is going to offer Grange Shiraz to the UK market. Grange Shiraz is
prepared through Shiraz grapes and it uses a small percentage of Cabernet Sauvignon.
Price: In the UK market, TWE will use competitive pricing strategy so that the
customers can purchase the wine. In a competitive pricing strategy, the firm needs to provide
the price like other competitors in the market. TWE wants to avoid the price competition
which can damage the company. In the UK market, already Shiraz wine is available;
competitive pricing will help the company to get noticed by the customers.
Place: The warehouse of TWE will be located near London. Grange Shiraz will be
distributed through Port of Felixstowe. The direct exporting will be started from the port and
it will be delivered by the staffs of Treasury Wine Estate. The complete supply chain and
distribution will be maintained by headquartering.
Promotions: TWE will do the promotions in three different ways.
First, the customers will watch the promotions of Grange Shiraz on the social
networking sites, Facebook, Instagram and Twitter pages. The organisation is going to start
the SEO and PPC promotions through online.

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Second, TWE will also start the print media promotions of Grange Shiraz wine in
magazines and newspapers.
Thirdly, TWE will also do the discount pricing strategy to attract the large numbers of
the customers. In the restaurant and bars; the firm is planning to put the discount posters in
front of the customers. These posters will attract the customers to purchase the discounted
wine.
9. Future of the business
TWE sets the target to achieve a 3% market share in the UK by the end of 2023.
Treasury Wine Industry is also trying to reach almost all parts of the UK through distribution.
Grange Shiraz would be available online also via third-party apps and websites. The UK wine
industry is competitive; however, promotions and growth of the wine industry in the UK
make the picture brighter for Grange Shiraz. Most of the supermarkets like Tesco, Morrisons,
Aldi and Lidl would be targeted to sell the bottled wine. 3% market share and a loyal
customer base can be achieved through competitive pricing and extensive promotions.
Promotions would be done conducting events in the supermarkets and putting posters on
restaurants and pubs. Small football clubs can be used for sponsorships so that the people
would get to know about Grange Shiraz.
10. Conclusions
It can be concluded that the wine industry in the UK is growing and Treasury Wine
Estates' Grange Shiraz has enough potential to reach the customers. Grange Shiraz would be
targeted the customers aged between 24 and 45 as these customers drink maximum portion of
wine. Restaurants, bars and supermarkets would be targeted to sell maximum wine. Treasury
Wine Estates has a global presence which would be helpful for the organisation to take the

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global strategy. In addition, the direct export strategy will reduce the expense of market entry
and it would make the organisation capable to reach the customers. Treasury Wine Estates
would do promotions to meet the business objective.

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Reference List
Anderson, K. and Nelgen, S., 2015. Global wine markets, 1961 to 2009: a statistical
compendium (p. 468). University of Adelaide Press.
Bruwer, J., Burrows, N., Chaumont, S., Li, E. and Saliba, A., 2017, Consumer involvement
and associated behaviour in the UK high-end retail off-trade wine market. The International
Review of Retail, Distribution and Consumer Research, 24(2), pp.145-165.
Delmas, M.A. and Grant, L.E., 2018. Eco-labelling strategies and price-premium: the wine
industry puzzle. Business & Society, 53(1), pp.6-44.
Dunning, J.H., 2015. Reappraising the eclectic paradigm in an age of alliance capitalism.
In The Eclectic Paradigm (pp. 111-142). Palgrave Macmillan, London.
Gain Fas. 2018. UK wine industry. Available at: https://gain.fas.usda.gov/Recent%20GAIN
%20Publications/UK%20Wine%20Market%20Report%202016_London_United
%20Kingdom_2-19-2016.pdf [Accessed 18th Sept 2018]
Galinsky, A., Newton, S.K. and Vega, R.F., 2016. Sustainability in the global wine industry:
concepts and cases. Agriculture and agricultural science procedia, 8, pp.37-49.
Hitt, M.A., Li, D. and Xu, K., 2016. International strategy: From local to global and
beyond. Journal of World Business, 51(1), pp.58-73.
Johnston, M.W. and Purkis, S.J., 2015. A coordinated and sustained international strategy is
required to turn the tide on the Atlantic lionfish invasion. Marine Ecology Progress
Series, 533, pp.219-235.
Kelley, K., Hyde, J. and Bruwer, J., 2016. Usage rate segmentation: enriching the UK wine
market profile. International Journal of Wine Research, 7, pp.49-61.

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Li, C., Brodbeck, F.C., Shenkar, O., Ponzi, L.J. and Fisch, J.H., 2017. Embracing the foreign:
Cultural attractiveness and international strategy. Strategic Management Journal, 38(4),
pp.950-971.
Morrison, A. and Rabellotti, R., 2017. Gradual catch up and enduring leadership in the global
wine industry. Research Policy, 46(2), pp.417-430.
New Food Magazine. 2018. The UK wine industry. Available at:
https://www.newfoodmagazine.com/article/46928/46928/ [Accessed 18th Sept 2018]
Nibusiness Info. 2018. The UK wine industry. Available at:
https://www.nibusinessinfo.co.uk/content/uk-wine-industry-overview [Accessed 18th Sept
2018]
Roe, D. and Bruwer, J., 2017. Self-concept, product involvement and consumption occasions:
Exploring fine wine consumer behaviour. British Food Journal, 119(6), pp.1362-1377.
Treasury Wine Estates. 2018. Australian Wine. Available at: https://www.tweglobal.com/
[Accessed 19th Sept 2018]
Tyler, B., Cerrato, D., Beukel, K., Minciullo, M., Lahneman, B., Spielmann, N. and Cruse,
A.D., 2017. Attitudes toward Sustainability, Environmental Practices, and Firm Performance
in the Wine Industry: A Multi-Country Study. In European Academy of Management
Conference (pp. 1-27).European Academy of Management.
WSTA. 2018. The Spirit and Wine Industry UK. Available at:
http://www.wsta.co.uk/publications-useful-documents/146-2017-market-overview/ [Accessed
19th Sept 2018]

Running head: INTERNATIONAL BUSINESS MANAGEMENT
Appendix
Country Comparison
Factors The UK China Japan Rating (From 1 to 5)
Here 1 means poor
and 5 means excellent
Political The UK is one of the most
powerful countries and political
stability has been great strength
for the country. Recent Brexit
incident creates chaos
unimaginable
China is ruled by the Communist
party and China has stable political
condition and China got US$136
billion FDI in the year 2017.
Japan has multi-party bicameral
parliamentary democratic
constitutional monarchy. Japan
has both liability and strength in
politics.
The UK- 3
China- 5
Japan-4
Economic The UK is the 5th largest economy
in the world and inflation rate got
higher with 3.1%. GDP of the UK
is $2.936 and GDP per capita
income of the UK is $44,177.
Wine industry in the UK costs
£21.3 billion.
China stands with 2nd largest
economy and GDP growth of
China is great. China has cheap
labour with rapid urbanisation.
China is the 6th largest wine
manufacturer in the world and in
Chinese market; Chinese wine
takes the major market share.
Japan has the GDP of $5.16
trillion and GDP rank in the
world is 3rd. GDP per-capita
income of Japan is $40,800 and
inflation rate is 0.7%.
Imported wine takes almost 71%
in Japan market and revenue of
wine segment in Japan accounts
to US 37 million.
The UK- 4
China-5
Japan-4
Socio-
cultural
The UK has big consumer market
and population of the UK is 65.6
million. 60% of the adults drink
wine in the UK.
China has the highest population in
the world and literacy rate in China
is 96.5%. China has large numbers
of alcoholic beverages.
Japan has been facing the issue
ageing society and sinking birth-
rate. Wine consumers of Japan
are less.
The UK-4
China-2
Japan-3
Technological Technology is one of the major
factors in the UK and the UK has
made more than £28 billion in
technology. Maximum population
use internet.
China has highest numbers of
online population and most of the
customers like to purchase from
online. China is technologically
developed country.
Japan has many large companies’
however Japan utilises
technologies in every spheres of
life.
The UK- 4
China-4
Japan-3
Legal Current corporation tax in the UK
is 19% and foreign direct
investment has been degraded
after the incident of the Brexit.
The UK has Equality Act 2010
which protects the employees.
Income tax rate is 25% in China.
Chinese government deals the laws
strictly employee remuneration,
labour standards and labour
disputes.
Japan has corporate tax of
30.85% and Japan’s legal
framework is strict. Japan has
been following the legal systems
in employment, foreign
investment, banking and
property.
The UK- 5
China-4
Japan-3
Business
trade
The UK is flexible in trading and
the UK has its urge to do free
trade deal with the UK. The UK
provides good employees and
qualified workers. The UK
provides state of innovation.
China has many demographics and
it is difficult to cover up through
exporting and the organisations
face issue to terms with China’s
planned price restrictions. Chinese
government always provides
facility to the domestic companies.
Japan has challenging market to
entry as the marketers think that
Japanese customers are
demanding and substantial
investment is necessary in Japan.
The UK-5
China-3
Japan-3
Ease-of doing
business
ranking
7th (2018) 78th 34th (2018) The UK`-5
China-3
Japan-4
Total The UK scores: 30
China scores: 26
Japan scores: 21

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