Global Expansion: Marshfield Bakery's Opportunities & Issues in China

This presentation explores the opportunities and issues for Marshfield Bakery when expanding to China, considering the global business environment. It highlights the booming Chinese economy and large consumer base as opportunities, while government intervention, cultural differences, and higher tax rates pose challenges. The presentation concludes that market development is the most effective strategic option, enabling the company to expand its international presence, leverage its distribution network, and enhance its global leadership while facing competition by diversifying revenue sources and strengthening its international position. Access more solved assignments on Desklib.

Global Business Environment

Table of Contents
 Introduction
 Opportunities for Marshfield Bakery when expanding to China
 Issues for Marshfield Bakery when expanding to China
 Conclusion
 References

INTRODUCTION
 The global business environment is filled with challenges and uncertainty because it si governed b variety of
factors such as economic stability and government regulations.
 National expansion of businesses isn't uncertain entrepreneurial endeavor because it involves engaging with
variety of unknown factors to achieve success in a new foreign market.
 International expansion provides businesses both opportunities and raises issues for their successful expansion in
the new country.
 It is important that small and medium sized enterprises who are willing to expand to developing countries
understand that drastically different environment present in such countries in order to achieve successful results.

Opportunities for Marshfield Bakery when expanding to China
 Booming Economy: The Chinese economy has
quickly recovered from the pandemic which is
beneficial for international businesses who wish to
expand to end economic environment which is most
stable.
 Large number of consumers: The Chinese population
offer international businesses opportunity for getting
higher revenue to a larger population and a
consumerist culture.

Issues for Marshfield Bakery when expanding to China
 Government Intervention: The Chinese government is
authoritarian with many regulations to protect local
enterprises and stop expansion of foreign enterprises in
the country.
 Drastically different culture: The cultural
environment of China is completely different from UK
which can create problems for businesses.
 Higher Tax rate: China has tax rate of 25% for
corporates which is higher than normal businesses.

CONCLUSION
 From the above presentation it is determined that most effective strategic option for Marshfield Bakery is market
development. this is because it will help the company expand international presence and exploit the strength of
strong distribution network to maintain global leadership. the company will also be able to face competition by
increasing sources of revenue and international strength.

REFRENCES
• Miao, C., Qian, S. and Humphrey, R., 2020. Successful Aging in Small Enterprises: Entrepreneurship, Job
Demands-Resources, and Health. Journal of Innovation Management, 8(2), pp.11-15.
• Porfírio, J. A., Felício, J. A. and Carrilho, T., 2020. Family business succession: Analysis of the drivers of success
based on entrepreneurship theory. Journal of Business Research. 115. pp.250-257.
• Robinson, C., 2020. Social enterprise and social entrepreneurship: developing the evidence base using the UK
Small Business Survey. In Handbook of Quantitative Research Methods in Entrepreneurship. Edward Elgar
Publishing.
• Si, S., Ahlstrom, D., Wei, J. and Cullen, J., 2020. Business, entrepreneurship and innovation toward poverty
reduction.