International Business Report: Dairy Pride's UHT Milk in China

This report analyzes Dairy Pride's strategy for introducing UHT milk to the Chinese market. It begins with an introduction to UHT milk and identifies Shanghai as the target city. The report then explores business drivers, including a PESTLE analysis of political, economic, social, technological, and legal factors influencing market entry. Cultural factors are examined using Hofstede's model, comparing individualism, power distance, and uncertainty avoidance between the UK and China. The report also addresses trade barriers such as tariffs, licensing, and quotas. Ethical and social issues, including corporate social responsibility and consumer trust, are considered. Finally, the report discusses potential methods of expansion for Dairy Pride in the Chinese market and concludes with recommendations for success. The report emphasizes the importance of understanding the Chinese market's unique characteristics, including its collectivist culture and the need for strong relationships, to ensure effective business operations and growth.

International Business
Report

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Table of Content
INTRODUCTION...........................................................................................................................3
Business Drivers.....................................................................................................................3
Identify the target city or province in Chine..........................................................................4
Cultural factors.......................................................................................................................5
Trade Barriers.........................................................................................................................6
Ethical and Social issues........................................................................................................7
Method of Expansion.............................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
UHT milk anytime does attack the milk is heated on the high temperature so that it gets
alleviate the pasteurization level in the same order foreign anything the quality of milk. UTS
define as a technique better adopted by the many enterprises in dairy and food industry which
help in Denison the quality of product that is best buy illuminating the bacteria and
microorganisms from the milk (Stout-Rostron, 2018). As per the report, it is observed that 60
percent of the China population consume UHT why, there is a huge business opportunity in the
respective country as they are having wider scope in the china which can be capitalize by
budding organisation in the field of dairy and food industry in order to expand their business in
the international market. Dairy pride is the chosen organisation for this report, ok rod the most
successful SME's in UK reflecting to penetrate and strategies while introducing their UHT milk
and russian china in order to increase there profit ability and opportunities for the growth in the
large market. It is also important to take the necessary procedures and elements that will be
considered by the company in order to compete with the
Business Drivers
It is defined as the potential key feature in an organisation which leads to increase the
productivity and the financial results within the organsiation. It it includes the input that helps in
getting effective outcome in the business and they have identified the the different drivers in
business that then help the Dairy pride to expand their UHT business in China, PESTLE
Analysis is conducted in order to understand the impact of external environment in the business
that is majorly impacting the day-to-day functionality of the firm. Various factors that are
included in understanding that affects of external elements on the business is explained as
follows:
 Political factors: these are the factors which includes the government stability, import and
export duties so in order to run the business of Dairy pride, it is important understand the
detailed explanation of political stability of the country (Savolainen and Collan, 2020).
Dairy pride has to evaluate the policies and procedures led by the government in the
Chine so that they can allign with the business operations as the Chine is an extremely
progressive political environment that is assertive and proactive in nature
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 Economic factors: these are the factors which includes the inflation, economic growth,
deflation rate, interest rate, taxation rate etc. Dairy pride required to evaluate these factors
to facilitate the systematic arrangement of the financial resources and evaluate the
requirements of financial resource to start up the venture in the respective country.
 Social factors: these are the factors which includes the socio- culture factors in the society
as the Chine is the productive and modern society that are inclining towards innovative
and advancement in the various products and services and this is the reason why the
country is called the innovation centre in the world. Dairy pride is required to assess the
needs and requirements of the society so that they can offer the products accordingly in
order to increase their productivity and growth.
 Technical factors: these are the factors which includes the innovation and advancement in
the organsiation and Chine is also known for their technological development (Rendtorff,
2017). They have invented the various innovative product and contribute in the
enhancement of the standards in the society. In order to run their business operations in
the large market, it is necessary to do the advancement in their product so that they can
meet the society standards by providing the UHT business in Chine.
 Legal factor: these are the factors which includes the Export and import duties,
compliance with laws and rules. Legality is considered as the most complex task in which
the Dairy guide have to run their busines function in the Chine market. When the
organisation wants to set up the busienss in the Chine, the market is very complex so it is
important for the Dairy pride to comply with the legal formality in the country so that
they can run their business in the approached manner. They must ensure the required
permission from the court and the necessary documents like working permit cards,
licensing, tax regulation documents etc. Needs to be collected by the firm in order to run
their business in the lawful manner.
From the above discussion, it is observed that the two important drivers innthe external
environment which can help the Dairy pride in order to run their business in the appropriate
manner are technology and the effective pricing strategy by which the large pool of the customer
can be attracted in order to increase the sale of the company.
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Identify the target city or province in Chine
When the company is planning to establish their business in the international market, business
must do the market research so that they can identify the cities that are open for the opportunities
are feasible to operate their business in the large market. It is important for the firm to select the
target market so that they can make the marketing strategy according to the market in order to
sustain for the longer period of time. Shanghai is the major city in the Chine that is having the
ample of opportunities to the new business so that they can run their business in the appropriate
manner (Purkayastha, Kumar and Lu, 2017). Dairy pride procure and allocate their fund for
capitalising upon the dairy market in the Shanghai so that they can offer the quality product UHT
milk to their customers. The population of Shanghai is divided and classified in accordance to
numbers variable and the most appropriate variable will be selected by the sales and marketing
team so that they can attractive large group of consumer in order to increase their sale. It is
analysed that the city in the Chine give the startup opportunity for the business to establish their
operations and allow them to establish a strong base within the given market.
Cultural factors
These are the factors which includes the core values and the social values of the individuals that
is having the huge impact on the purchasing behaviour of the society. In order to understand that
cultural factor that is having the major affects on the sustainability and the profitability of the
Dairy pride in the Chine. Hofstede' model will be taken in the consideration as it allow the
business to differentiate the various factors that gives the effective comparison in the two
countries in order to determine the cultural differences are explained as follows:
 The first emement in the model is Individualism which stated that there is a difference in
the western countries and the asian countries with the level of individualism. China has
the traditional approach in which the citizens are likely to follow the collectivism in
which every member of the society is answerable to each other that shows the successful
business operation in the china that the dairy pride must adopt collectivist nature. On
other hand the united kingdom is the most advance country in which high standard of the
individual is promoted in the society and every individual is entitled to live there life
according to their own standard without any interference of other members of the society.
Demand and the insulation in the society must be taken to consideration by the fims so
that they can able to communicate their vision in the society as the whole. It is observed
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that due to collectivist, the individual in the China is focusing more upon the relationship
and personal equation where as in the United Kingdom, the people are more focuses and
self focused and work with teh conaidetion of attining the personal goal and building the
relationship is the secondary aspect for them.
 The second element in this model is power distance and it stated the degree of the power
or authority among the individuals in the specific region. In comparison to United
Kingdom the power distance is high in the Chine tends to be more tolerable to words on
the ongoing conflicts where as the power in the British citizens try to implement the more
democratic and stable behaviour in the organsiation (Priem, Wenzel and Koch, 2018).
Hence, it can be said that Dairy prode have to facilitate their business in the Chine due to
power distance among individuals so that they can have the effective profitability and
growth in the large market.
 The third element is uncertainty avoidance of China is much higher than the United
Kingdom as comparison of handling the uncertainty in the business environment. The
people of the United Kingdom is more risk taker and tolerant otwards the uncertain
business environment. They are more flexible in their approach in absorbing the change
easily. Hence it is recommended to Dairy pride to have the systematic plan of actions so
that they can facilitate their business in the alrgge market in order to give the full
considetion to their profitability and growth. They must ensure that uncertainty can not
affect them on the largge scale as they are having the effective action plan.
From the above discussion, it is derived that there is a progressive business environment in the
China. The main consideration of the business is to maintain the strong relationship so that they
can achieve the higher success and growth. The tradition approach in the country that is very
important for the Dairy pride to incorporate with the culture of the country so that they can
enhance their engagement and involve in the society.
Trade Barriers
It is defined as the amonunt or the duties that is imposed on the import and export of good and
services. It is also characterised as the government issued implication that must be taken in to
consideration by trhe firm so that they can offer the products in the international market. In
context of Dairy pride, there are numerous types of barrier that occur in the business
environment. Some of them are explained as follows:
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 Tarrif is the primary barrier which is faced by the Dairy peide in order to facilitate their
business in the international market. Tariff can be considered as the taxes that is imposed
on the import on the good and services by the leading authority of the country so it is
important for the company to meet the legal obligation of accomplishing the tariff duties
so that they can run their business operation in the lawful manner (Popli, Ladkani and
Gaur, 2017).
 Licensing is another main barrier for the company and it is very necessary. For the Dairy
pride to do the proper licensing by getting permission from the government bodies within
the China that leads to running of business in the successful manner without any
intervention.
 There is various quota that is reserved for the import procedure in the country and the
Dairy pride required to invest on these quotas so that they can operate their business in
the international market across the China.
 Company need certain types of ducuments related to the finance and property disclosure
so that the company can formulated. They must ensure that they are operating their
business in the lawful manner and does not experience any kind of interventions that
hurdle the functionality of the business in the international market.
Ethical and Social issues
It is defined as the implications and the obstacles that is pertaining to adop the standards
of authenticity and ethicality prevailing in the business while working across the native country.
Some of the major social and ethical concerns that need to be fixed by the Dairy pride is
explained as follows:
 The main issue which is faced by the company is working standard adopted by the
business organisation and it is necessary for the firm toa adopt the business standard that
is high in morale so that it can increase the motivation among employees (Park and Cave,
2018). This can lead to achieve the goals through hard work and dedication as the
authentic and the credible work must be promoted within the organisation.
 When the organisation wants to overcome the social barriers in the business enterprises
so that they have to provide the good working environment in the organsiation by which
employees give their best in attaining the organisational goal.
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 Dairy pride must emphasis on promote diversity in the workplace and hire the individual
from the different region. Workplacw diversity is defined as the concept in which
individual from the different background, culture and religion are given opportunity to be
a up part of a organisation in order to get their propesctive job. It helps in entries in the
productivity and the coffee table it was in the organisation by which there is a up grading
among the society's standards and establishing the good brand image in the market. The
workplace diversity in the Dairy pride helps them to establish the excellence in its work
operation and have the productive work culture withhin the business enterprises.
 It is very important for the daily pride to have their effective closure of human rights and
that must be exercises in the various busienss operation so that they can established the
standard of humanity among the individual that are giving their best in order to attain the
organisation goal. It will provide more assistant to the firm creating the atmosphere
where the human dignity is practised and trust as well as humanity is appreciated.
 The company must emphasize on eliminating and ignoring the negative politics within
the organisation so that they can provide the positive working in the organisation to the
employees that will leads to give them a comfortable working space as well by which the
employees can give their best in performing their given tasks with the consideration of
attaining the organisational goal.
 It is also important for the organisation to accept the tradition, culture and history of the
employees that are working within the organisation so that they can reduce the cultural
conflicts in order to minimise the uniformity in the operations (Monaghan, Tippmann and
Coviello, 2020). This will also ensure that there is no discrimination among the
employees on the basis of caste colour religion gender or other social construct.
 Dairy Pride needs to ensure that there is no hiring of children who are under age for
employment. Child labour should be restricted within the organisation in order to uplift
the children in the society to get higher education towards their development. This helsp
in getting the effectiveness witthin the organisation and they can established the good
brand image in the target market.
Corporate social responsibility is an obligation to the business to provide its services in the
society in order to enhance the safety e of environmental aspects in the society. It helps the Dairy
Pride to comply with the prevailing social issues in China and work accordingly in order to
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create a solution for an illuminating the concerned issues from the society. This practice needs
more time in order to regulate them in the business that will help the form to create a good brand
image in the target market by which they can enhance their market share as well.
Method of Expansion
Expansion strategy is a form of strategy that is empowered by the business firms in order to lead
expansion within the current business and attend more profitability by increasing their market
share on the international platform. Dairy Pride must emphasize on following expansion strategy
by which they can expand their business in the international market specially in China are
explained as follows:
 When the organisation want to expand their business it is very necessary to use the
appropriate product strategy to the current line of operation. The product which is being
served by the Daily Pride must be good in quality so that they can optimise on its quality
by offering the best product in the market in order to establish a good brand image among
the potential customers.
 UTH milk is already available in the China market. It is quite difficult for the dairy pride
to do some innovation so that they can differentiate their product from the other rival
company within the respective market industry (Mensah, Obi and Bokpin, 2017). The
They can use the innovation and advancement in their product so that they can offer the
unique item in order to attract the large group of customers in the China.
 They must emphasize on having a tight budget so that they can read the financial
requirement in the future operation in the international market. Daddy Pride have to make
the strategic plan that focus upon the effective formation of the business camping and
infrastructure so that they can attract the large group of customer. Help in enhancing the
effective return on investment and work upon the latest innovation through the available
and adequate resources within the organisation.
 When the business wants to establish long-term scope in the China they must focus on
acceleration of saving and investing the same in the various other venture so that they can
get the effective return from them. Does Saturn can further utilised by the form in the
emergency situation which can enhances financial backup and store in the large market.
This will allow the further expansion for the business operation in future.
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 Dairy pride can also rely upon the effective utilisation on the advanced promotional tool
for advertising their business within the city of Shanghai). (Fassas, Papadamou and
Koulis, 2020). They can higher the agency which can provide more Marketing solution
to reach their potential customer and invest in the UTH milk offered by the respective
organsiation so that they can get the large group of prospective consumers in order to
increase their market share and growth.
 When the organisation is capturing the attention from the large audience and getting the
highest success in the industry then they can plan for opening of various franchises of
their brand in the different cities of China that can helps in increasing the productivity
and profitability in the large market.
 Partnership with the other SMEs helps the Dairy pride to get the huge scope in sales
maximization in the market sector. The company can expand their business by tie ups
with the well-known business firms that complement the operation carried out by the
dairy pride and its market domain (Chadwick and et. al., 2018). The respective strategy
will not only benefit to the establishment of small medium enterprises but also help the
Dairy pride to get their potential customer and in the interest of them towards their
product.
Accounting to the above discussion on the strategic expansion of the Dairy Pride, it is
recommended to the company that it can get the slow start in the initial stages as there are many
competitors in the market but with the effective utilisation of innovative aspects in the marketing
of UTH milk, they can achieve milestone within the respective business industry. The
organisation required to align with that's facilitation of expansion through effective investment in
the business as well as capatalization for the same. This would help them to get the sustainability
and growth in the target market over a period of time.
CONCLUSION
It is concluded from the above discussion that, Dairy pride can make the best use of huge
opportunities that are are available in the the Chinese Market with the direct and appropriate
expansion measures and effective plans. The expansion of this organisation can open the doors
for other forms to focus towards implementing the effective expansion measures in the business.
The expansion plan can help in getting successful outcome from the business firms is the
feasibility of the proposed expansion plan is high. Dairy bright need to focus on aligned with the
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cultural and social values of China so that they can in its brand image in the target market. In
addition to this, the complete guide to work according to the business environment of the China
so that they can sustain and survive in the Chinese Market. Dairy Pride has to activate with
expansion policies and action plan so that they can get the effectiveness in the business
organisation.
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