Business Report: Marlyn's Expansion and Sustainability in China

This report provides a comprehensive analysis of Marlyn, an Australian food and beverage company, and its potential expansion into the Chinese market. It begins with an executive summary and introduction, followed by a background of the company and a country profile of China, highlighting its economic and political landscape. The report then delves into a PESTLE analysis, evaluating the political, economic, social, technological, environmental, and legal factors impacting Marlyn's operations. It explores sustainability considerations, including packaging, product labeling, and the challenges posed by overpopulation. The report examines various sustainability models, such as the three-legged stool, overlapping circles, and nested dependencies models, and identifies key challenges for Marlyn in China, including human resources and consumer preferences. Finally, the report offers strategic recommendations for Marlyn to successfully navigate the Chinese market and achieve sustainable growth, emphasizing the importance of adapting to local customs, addressing environmental concerns, and leveraging technological advancements.

RUNNING HEAD: Management 0
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Management

Management 1
Executive summary
The sharing of information between people within the organization is accomplished for the
assistance of the organization. It also states how the information is shared in a company in
order to promote products and services to prospective customers. This report includes the
customs, culture, political and legal factors of China regarding the sustainable issue. As a
consultant, the recommendations are given to Marlyn which is an Australian company. The
recommendations are given to the company in order to expand and manage presence in
China.
From the report, it can be concluded that Marlyn can easily confront the issue of
overpopulation faced in China. The pestle analysis defines the factors affecting the company.
The sustainability models are capable enough in overcoming the issue in China.

Management 2
Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Background of the company..................................................................................................................3
Country profile......................................................................................................................................3
Pestle analysis....................................................................................................................................3
Sustainability.........................................................................................................................................5
Issues.....................................................................................................................................................6
Sustainable models...............................................................................................................................6
Challenges.............................................................................................................................................7
Recommendations.................................................................................................................................8
Conclusion.............................................................................................................................................8
References...........................................................................................................................................10

Management 3
Introduction
The management is the process of dealing or controlling administration. It has a role in the
organized life. It helps in attaining objectives along with managing an organization. It also
leads to the operational and efficient use of the resources in the pursuit of the goals. This
report comprises the business customs, cultures, political, legal and economic background
concerning sustainable issues. The report includes the background of Marlyn which is an
Australian based company. Marlyn is a food and drink company having headquartered in
Sydney. The Pestle analysis of China is provided in concern to the company. The report also
includes the sustainability of the company along with the issues faced in the country. The
sustainability models are discussed for the activities of the company conducted in China. The
challenges are defined which are faced in China while conducting operations. At last, the
recommendations are given to the Marlyn regarding the issues faced in China.
Background of the company
Marlyn is the leading food and beverage company of Australia. It has a presence in milk and
nutrition along with the beverages and confectionery segments. Marlyn is engaged in the food
business. The company have more than two thousand brands and has existed in various
countries. The purpose of the Marlyn is to enhance the quality of life contributing to a
healthier future. The way the company contributes to the society ensures long term success.
The values of the company reflected in the way of doing business legally and honestly.
Marlyn takes initiatives time on time to upgrade technology for the infant nutrition products.
The company has recently extended its range of the products by introducing yogurt and
Greek-style curd.
Country profile
China is a prominent and rising economy. The country has a robust economy and having
several numbers of industries in all segments. The legal improvements in the country make
business easy and quick. The foreign companies are more likely to invest capital in China as
the size of the marketplace is continuously expanding and has a low cost of labor. The growth
prospective in the country is becoming an appealing part of the world.

Management 4
Pestle analysis
Political factors: China has a robust political system which is obliging in boosting the local
economy of the country. The regulations passed in the China help economy to become
stronger (Stevens, Xie, and Peng, 2016). The country has even maintained the operative
policy for prospective investors to advance the amount in several industrial sectors. The
government of China also focuses on the expansion of e-commerce. The government has a
strong pledge in order to boost the business and enhance production of the items. The
industrial segment has also attained robust and inspiring political sustenance which boosts the
economies. Add on, the regulations implemented by the country help to keep on the accurate
path of progress and success (Gu, Hasan and Zhu, 2019).
Economic factors: The economy of China has attained an outstanding growth rate in GDP.
The country also continues to its speed on the expansion. There are several factors in China
which contribute to success in China like an incredible rate of savings, a huge sum of skilled
workers and extensive export business. The economic development of China leads to the
potential urban growth. The GDP rate has a role in enhancing the purchasing power of the
consumer. The foreign companies get boosts due to the availability of the cheap labor cost.
The growth rate is outstanding in China but some latent trends cause’ high inflation rate
along with the high property prices. The interest rate is also leading and the capitals of the
banks are also higher (Tang, Hao and Huang, 2016).
Social factors: The overpopulation plays a noteworthy role in the social and cultural aspects
of the country. The growth rate of the population has great potential of changing the social
and cultural trends and values. The size of the family has also contributed along with social
behavior. It has an effect on the several social factors like religion, education, lifestyle, and
emigration. The literacy rate has a significant role in the economic progress of China as the
country has attained 90% of the literacy rate. The internet is used extensively and the urban
and rural cities have improved access to the internet. The latest and innovative technology is
used in the country to shop online. E-Commerce has even transformed the way of consumers
doing shopping. Whereas there are some people in the country who like to do physical
shopping and like to have face to face contact (Tsai and Men, 2017).
Technological factors: The technological factors have a role in the development of the new
products, mechanism, technology and in the mechanism of distribution. China faces
difficulties due to not maintaining a safe online payment system. The consumers face a

Management 5
higher level of uncertainty along with the long term orientation. It is also considered that the
market in China has quite low credit card penetration in China which is used as an effective
and fast payment system. The payment system can effectively support online credit card
transaction but it is used least. It is considered by the businesses in China that online credit
card system for the well-timed payment is fewer (Wardana, 2018). It has low convention and
does not breach in the Chinese industry.
Environmental factors: The environmental factor has an immense influence as the people are
conscious about the environmental practices. The occurrence of technological developments
in China has made everything informal and speedy. The trend of the products selling online
has helped to upsurge the practice of the e-commerce website. The e-commerce platform has
promoted selling products online than visiting stores. When the less number of vehicles are
used then there is going to be less pollution in the air. This emission damages the
environment and pollutes the thermosphere (Smil, 2016). China is the striking market for the
companies only which can comprehend the macro environment of the country.
Legal factor: e-commerce is booming and the government in China has started functioning on
the origination of the lawful background for the e-commerce. The country is functioning on
the drafting of the e-commerce regulation on the various features like rational property rights
protection and tax. But there are no guidelines designed in the country to support
confidentiality, identify digital signatures, authentication of the electronic contracts and for
defending consumer rights. The active legislation is required to advance e-commerce and
avert online chatting in China (Wu, et al. 2018). It is a great concern to work on the
betterment of the industry. The legal factors have a significant role in offering latest and
admirable products at the moderately inexpensive rates.
Sustainability
Marlyn believes in enhancing the quality of life with healthy and nutritious food. The
company produces products in the caring and responsible manner so that the environment is
preserved for future generations. In order to understand the performance of the products, the
life cycle approach is executed (Bai, Sarkis, and Dou, 2015). It analytically assesses the
product categories along the whole value chain. The approach of the Marlyn’s towards
sustainability can be understood from the following ways:

Management 6
Packaging and environment: Marlyn strive to reduce the impact on the environment by the
way of packaging products effectively. The company ensures that the packaging protects the
products effectually. The company is even systematically reducing the load of the packaging.
Marlyn promotes recovery and recycling by making use of recycled materials possible. The
materials are chosen which have a lower impact on the environment.
Product labeling: Along with providing science-based information, the company also
addresses the environmental information regarding products and activities. The product
lifecycle is considered along with the supply chain comprising usage of the products along
with the end of life treatment. The international harmonized methodology is also supported
by the international standard organization (Heberer, 2017). The company is also committed to
using a range of communication methods to engage customers on the environmental
concerns.
Issues
The issue faced by the company in China is over population. The concern of over population
is on the rise in recent years. The country has the highest population in the world. The
overpopulation is the outcome of the number of people in a region is being much higher than
the country’s available resources. The situation of over population is faced in China as a hope
to bring more money into the country, construct a better army and produce more food (Zhou,
Liu, and Kwan, 2016).
The over population is linked with the negative environmental and economic outcomes. The
social responsibility of the companies also rises due to the negative impact causes by the over
population. There are some sustainability challenges linked with the over population. These
challenges can be faced in the form of farming impacts, deforestation, eutrophication, loss of
fresh water and global warming (Kim, 2018). The policies are required to be embraced in
China which encourages family planning, gender equality, education and other measures
which are helpful in slowing the growth of the population. It also helps in reducing the
impact on the environment.
Sustainable models
The sustainability models are given below:

Management 7
Three-legged stool model: This model is used to demonstrate the three dimensions of
sustainability like economic, environmental and social. This model reinforces the dimensions
which are necessitating enjoying a high quality of life. The fourth leg dimension is also added
which is identified as a culture. The culture affects the whole issues and actions of the
society. It has a role in identifying, preserving and cultivating traditions (Liu, Zhou and Wu,
2015).
Three overlapping circles model: The overlapping circles as a model of sustainability
confesses the connection of economic, environmental and social factors. As per this model,
the companies re-shape the circles to indicate that one factor is further prevalent than the
other two circles. For instance, some business leaders desire to show the economy as the
leading circle because it is more significant to the success and makes the world go around.
The society is considered the second leading economy as the customers and rest important
stakeholders reside there (Zhang, Xu, Oosterveer and Mol, 2016). The environment is
considered smallest as it is external to the standard business metrics.
Three nested dependencies model: This model has a significant role in demonstrating co-
dependent authenticity. It shows that human society is an entirely possessed subsidiary of the
environment without clean water, fresh water, food and rest natural possessions (Ong and
Djajadikerta, 2018).
Challenges
The challenges faced by the Marlyn while conducting operations in China are:
Human resources: The Human Resources is one of the leading challenges faced by
companies in conducting business in China. The western employees in China tend to envoy
accountability and have flexible lines of specialist. The Chinese workers are habituated to the
more graded structure in which a person has a pre-defined role. Such differences cause to the
tensions between the managers and the employees (Friedman and Kuruvilla, 2015).
Consumer preference: There is a sizeable class shift in China in the last few years due to the
over population. The preference of the consumers is quite diverse than once it was. The
preferences exclusively detach from the markets of the rest world (Ren, et al. 2015). It is the
leading challenge and also the reason behind the failure of the foreign companies in China.

Management 8
Government challenges: The transparency of the government regulations is the feature
companies like to make entry into the market of China. The decisions of the government
serve the interest of the customers but it increases the risks for the party leaders. It is
considered as a clinging to power in to enhance them. The foreign procedure for the
companies impacts to the petition of the China (Scarborough, 2016).
Recommendations
Marlyn is recommended to undertake the preference of the customers. The customers in
China have different consumer preferences from Australia. Due to the over population, the
customers have quite preference in the country. There are a great number of youngsters then
the children and old age people. SO, Marlyn is required to produce products which are
majorly consumed by the youngsters of the country. This way the company can generate
greater revenues.
Marlyn is even required to consider regulatory issues of China. The government regulations
in the various industries are required to be considered at the time of making entry into the
Chinese market. The government has made regulations kept in mind the number of the public
in the country. The cooperation with the government and demonstration of the goodwill has
great assistance for the companies entering in China.
Marlyn is recommended to understand the market of China along with the culture. The
country has quite a different culture from the western countries. The customers here have
quite different needs and desires, understanding this can help in blooming in China. The
company can even use reviews of the customers regarding the products and services (Yin and
Jamali, 2016).
Marlyn can even pick the appropriate local partner in China. The local partner can help in
attaining the existing customers along with the new ones. The competing services offered by
the local companies can be a positive aspect for the company. It ignores the conflict of
interest. It is equally helpful to the company in attaining low labor costs. Marlyn is
recommended to research in a wide manner on the economy of China. It can help the
company to save time along with the money.

Management 9
Conclusion
Marlyn has efficient management which can be understood from its operations in Australia.
The political stable conditions of China are suitable for the company. The GDP rate of the
country also ensures the growth of Marlyn. The local government also offers incentives for
the technological advancements in China. The legal and environmental factors also define the
favorable conditions of the company. Marlyn sustains in the society by accomplishing social
responsibility. The issue of over population is faced by the company in China. The
sustainability models are suggested to overcome this issue. The challenges are also faced by
Marlyn in China such as human resources, consumer preferences, and government
regulations. Finally, the recommendations are given to overcome such challenges. The
company is recommended to understand the preferences of local consumers. It is also
companied by the extensive research on the economy of China.

Management 10
References
Bai, C., Sarkis, J. and Dou, Y., 2015. Corporate sustainability development in China: review
and analysis. Industrial Management & Data Systems, 115(1), pp.5-40.
Friedman, E. and Kuruvilla, S., 2015. Experimentation and decentralization in China’s labor
relations. Human Relations, 68(2), pp.181-195.
Gu, X., Hasan, I. and Zhu, Y., 2019. Political influence and financial flexibility: Evidence
from China. Journal of Banking & Finance, 99, pp.142-156.
Heberer, T., 2017. China and Its National Minorities: Autonomy or Assimilation: Autonomy
or Assimilation. Routledge.
Kim, S.S., 2018. Chinese foreign policy in theory and practice. In China and the World (pp.
3-33). Routledge.
Liu, Y., Zhou, Y. and Wu, W., 2015. Assessing the impact of population, income and
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Ong, T. and Djajadikerta, H.G., 2018. Corporate governance and sustainability reporting in
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963.

Management 11
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