Analysis of Meadow Food Ltd's Internationalization Strategy in China

Desklib provides past papers and solved assignments for students. This report analyzes Meadow Food Ltd.'s international business expansion.

International business
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Executive summary
The International business in the UK and China is gradually increasing in the event of building
up good relations in business as well as exploring the business at the global level. Meadow food
is the SME in the UK using their key features to expand the business at the global level.
Moreover, the management of Meadow food is hiring international business consultants to
introduce business in other countries. The main objective of internationalization of this business
of UHT milk is to identify the business in another national border with the best proposal plan. If
the communities and stakeholders will accept the plan prepared by the international business
consultant than the relation with China will increase in terms of business and other factors.
Basically, the children in China between the ages of 3-11 required UHT milk for better nutrition.
Therefore, Meadow food limited has taken a step to supply the milk.
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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
LO1 Debate key contemporary issues relating to organizations involved in international
business........................................................................................................................................5
LO2 Identify and evaluate the global context within which international business must
function in the twenty-first century..............................................................................................6
LO3 Appraise alternative methods of entry into foreign markets...............................................8
LO4 Explain why companies may decide to internationalize and alternative theories of
internationalization.......................................................................................................................9
LO5 Discuss the impact of multinationals on both the home and host nations.........................10
LO6 Select analyze and evaluate data on country markets........................................................11
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction
The international market is subjected to dealing with the products and services in several
countries. It is the systematic activity to globalize the business with an efficient proposal with the
help of management of the particular company. In the changing world of business, there is a
company of UK which took a step forward to expand and globalize the business across other
national borders.
Meadow food ltd company is the active food delivery company which is basically providing
their food products & services in the UK. This company was founded in 1992 based in Chester,
United Kingdom and they mainly deal in liquid milk and ice-cream products. The main objective
of this study is to identify how Meadow food ltd designs their proposal for supplying the dairy
products in other national borders. Meadow food ltd is one of the best SME's from the UK set up
a plan to supply UHT milk in China for the children under ages of 3-11.
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LO1 Debate key contemporary issues relating to organizations involved in international
business.
The main key contemporary issues outline the concept of international business (Aydiner, et.al.,
2019). It is the process of identifying trade theories and key business drivers that help to uplift
the performance of the business in other countries. The key business drivers and trade theories
are required to administrate in order to set up an appropriate driver of internationalization.
1. Pestle analysis of Meadow food ltd to identify the key business drivers
Political factor: The growing networks of food industries are gradually bringing up their service
and products according to the trend. Therefore, Meadow food ltd is also adding healthier features
in the working pattern and styles. Healthier factor policies in their food push for the lower
synthetic food ingredients in their products. For example, health menu choice act introduced by
the government which makes good effects in purchasing and selling of food items in term of
export and import.
Economic factor: This factor includes the cost-effective strategy and employment in the country
with the help of alternatives to price changing strategy (Cao, et.al., 2018). This factor allows the
organization for the greater expansion of their food items. In order to expand the business,
meadow Food ltd introduces several prospectuses at discount rates and also organized
promotional events.
Social factors: Meadow Food Ltd concentrates on the taste and preferences of customer that
what they want. As mentioned throughout the analysis of this study that UHT milk was required
to supply in China so they did the market orientation and identified their rivals and then prepared
the best proposal to supply the UHT milk in China.
Technological Factor: Another factor of identifying key business driver is technology. The
utilization of new technologies helps to incur the low cost and higher productivity (Xiao, et.al.,
2013). It is very important in food industries to create good packaging and food labelling. The
showcasing of products in an effective manner is a sign of effective profitability.
Legal factor: Meadow Food Ltd is known in the UK as a bestselling dairy food item in order to
maintain consistency and stability. They serve the best quality food across the country in order to
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maintain their reputation. The legal requirement is must be followed by any food company in
order to display the sufficient calories gain by their products.
Environmental studies: Inspection of food by food inspecting forces is a regular activity
everywhere because monitoring the food participation of management of the company is
necessary that how the food is grown (Wang, 2014). It helps to get rid of the risk of using
synthetic materials and pesticides in the food served to their customers.
2. Highlight significant business drivers for internationalization
Organizational structure: The decision of setting the central headquarter or a decentralized
organization for its long term stability in necessary or either the combination of is the best
alternative.
Financial resources: According to the study of several economical institutes the organizations
with high-quality capital are more powerful and abroad than others. The welcoming of
stakeholders and shareholders is the main objects of the organization in order to get uplifted and
introduce the business the global level.
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LO2 Identify and evaluate the global context within which international business must
function in the twenty-first century.
New global economic context of the international business of the twenty-first century has been
transformed in economic, social and political landscapes in an ineradicable manner (Leibovici
and Waugh, 2019). The international business in the industry of food across national borders has
become free trade centre. The dealing of products and services as well as all the licensing and
franchising system has been abolished from all the unnecessary rules & restrictions in order get
sought the industry. The roles and functions of Meadow food ltd have been transformed into the
new global economy in order to add significance and compounded challenges. The global
context of international business also itemize the abilities of meadow food ltd for the
competencies and perspectives that are important characteristics to get succeed in the new global
context of international business in the twenty-first century.
1. The highlight at least 3 trade barriers in the given context
Tariff & quotas: In simple word, the tariff means tax. Whenever somebody imports or export
something they are liable to pay taxes according to the trade policies that any country can
endorse (Leibovici and Waugh, 2019). These tariff charges are collected by the customs
authority of any specific country whoever dealing in products and services from outside the
country. Infant industries are always get protected by the trade policies in order to establish new
economics but also the existing industries in order to advance their economy. The only main
reason to add tariff as trade barriers is that the customs authority imposes unwanted trade charges
for the benefit of local communities and central government.
Regulations: Another biggest trade barrier is unnecessary regulation and restriction from the
licensing system of international trade (Meyer and Peng, 2016). The government of any specific
industry has bounded with tariff restriction and quantitative restriction in the importing and
exporting system. This is the biggest threat of Meadow food ltd in order to export their dairy
items in China. In the event of globalizing the business with the economy of China, Meadow
Food Ltd is integrating its economy and also has a set of limitations to export the food products
in China.
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Cross-cultural preference or taste: Preferences and taste of culture always vary in the
international market in order to identify the quality of food, products, quality levels and even
brands. Product's shape, size, color and other iconic specifications of the products and services
matters in context of customer’s preferences (Meyer and Peng, 2016). While having looked into
the other market the orientation of market is the most essential activity that a company is
required to perform because with identifying the need of the customer it is waste to introduce
new products by entering it.
2. What possible consequences may occur if these are ignored by the SME?
The major effects will get to see if Meadow Food ltd ignores trade barriers in every sense. The
main effect will get to see on its technologies and environments of the business. There is no use
of technologies and innovation if they can't showcase it properly. There are many aspects of the
business which get affected by not facing the trade barriers such as the current volume of
customers, speed of production and reaching of new customers (Malhotra and Hinings, 2010).
By eliminating the trade barriers, Meadow Food Ltd will lose the opportunities to introduce their
different catalogues to the international market and not able to uphold the sustainability and
retention in the international trade market.
3. Demonstrate the business uncertainties and opportunities created by the trade
policies of the national government of China.
The uncertainties and opportunities created by the trade policies are very general because of
measuring the designs to compete with the foreign industries (Malhotra and Hinings, 2010). The
government of China often provides subsidiaries in direct and indirect form to help the foreign
industries who are interested in delivering their products and services in China. The policies of
China are very critical in term of looking into the global outlooks, the fiscal trends and stances
are more neutral and slightly tighter. In between, the other side of the Chinese government, they
also showcase the improved business productivity. The government of China allows foreign
business in order to increase employment as well as acceptance of best proposal plans offered by
companies like Meadow Food Ltd.
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LO3 Appraise alternative methods of entry into foreign markets
The involvement of a massive amount of capital can make the entry of a new firm into the
international trade market is much easier. The small business enterprises like Meadow Food ltd
taking forward step to grow the channels of business with different methods of entry into the
international market. The entrance is not the only factor because while entering into the market
Meadow Food Ltd is becoming the most nimble and resources full company which uses their
funding and manpower effectively to enter into international market without any obstacle
(Pellegrino and McNaughton, 2017). There are several methods to enter into the international
market such as internet sales, exporting, franchising & licensing, joint ventures and acquisitions.
Ethical and social issues to be considered by the UK SME
1. Highlight the importance of corporate social responsibilities when operating
internationally in the given context.
Corporate social responsibilities are one of the most effective standard practices of the time when
the entry of a new firm or enterprise was not so difficult. The commitment of new firms to
corporate social responsibilities allows them to maintain their overall reputation. The
implementation of corporate social responsibilities allows the management of the business to
establish crucial components of the business in order to maintain sustainability. This means
having policies and procedures in the place of various factors such as social, environmental,
ethical, human rights and consumer concern into business processes and deep strategies
(Pellegrino and McNaughton, 2017).
For Meadow Food ltd the overall objective is to achieve massive success and positive impacts of
their business activities on the society during the time of maximizing the return on investment
and creation of shared value of the stakeholders, shareholders, owners, the board of directors,
investors, contractors and proposed directors. A study was done in London by Kenexa High
Performance, the found that organizations who commit the maintenance sustainability of
corporate social responsibilities generally do not follow their commitments. This study has also
found that the companies who are oriented with the corporate social responsibility have the
highest number of employee engagement as well as are more likely to provide high-quality
customer services.
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LO4 Explain why companies may decide to internationalize and alternative theories of
internationalization.
In today's business world all types of business organizations want to establish their operations in
international markets (Picciotto, 2017). The main reason is to create the international
environment is integrating the economy with the world economy as well as exploring the market
with their products & services. Similarly, Meadow Food Ltd is also internationalizing their key
business drivers in the international market in such forms as like new market, diversification,
competitive advantages, foreign investments and access to talent. Critiques of the Uppsala model
is the alternative theory internationalization where the industry can control the planning by its
environment because this theory is deterministic. This theory helps to administrate the
competitive advantages on the basis of the stored amount of resources and research carried out in
foreign countries before entering.
Culture preference to be considered by the business
A. Highlight the significance of culture within various activities associated with
international business in the Chinese market.
In order to globalize or collaborates the business with the Chinese market, China has become an
attractive market (Picciotto, 2017). Foreign investor and entrepreneurs are more likely to
globalize their business in China. The SME's are gradually taking participation in the Chinese
market for expanding their business, to increase the higher productivity, uplifting reputation of
the brand and welcoming new stakeholder. Similarly, Meadow Food Ltd is also an SME which is
internationalizing their business in the Chinese market in the area of food delivering services of
UHT milk to the children between the ages of 3-11. To be successful it is decisive to understand
the respect the values and morale of the Chinese market. There are several key areas which gets
stumble upon companies while doing business in China.
LO5 Discuss the impact of multinationals on both the home and host nations.
While acquiring the approaches and key business drivers, there are benefits than the risk is also
there (Picciotto, 2017). As bigger the organization the satiation will become riskier, this is one of
the critical statements that every entrepreneur or infant industry must keep in mind, therefore, the
decision making of the organization is required to be very strong & clear. The effects of
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multinationals on homing and hosting the nations that they improve the balance of payments,
providing employment to unemployed, sources of tax revenues, technologies transfer, increasing
choices and national reputation. There are bad impacts also faced by the industries while homing
and hosting the multinationals such as environmental effects, uncertainty, competition, greater
than before, pressure from political influences, price transferring, stumpy trained employment,
health & safety, profit exports and cultural & social crashes.
Expansion methods to be chosen by the company
 Identify the range of potential internationalization methods
Entry of firms in the international market is more meaningful but the existence is the main key
factor and that matters in this market (Picciotto, 2017). The identification of work potential is
very necessary for the business organization to become stable in this market because the
competitors in this market are very much active in attacking the strategies of infant industries to
defeat them. It is basically a process of involving the business in this market; this process is
studied by some superior expertise and economists.
Internationalization has become one of the markets where the firm can reduce its cost of
production after entering it. The internationalization has become the most effective landscape for
the industries which make the place most dynamic so that industries can create or establish
aspects or catalogues of their products and services in this market. Likewise, Meadow Food ltd
did the same activity after entering in it (Reuber, et.al., 2018). This organization was working so
well in the UK but the main reason for going international is the domestic market is very limited
and inadequate because of their sale and higher quality of the products. Most of the businessmen
or SME's will try the different market places after getting huge success in their locality; exactly
Meadow Food did the same.
 An identification of the most suitable option available to the SME supported
relevant strategy.
The marketing plan is the map of the overall business plan because the retention and
productivity only depend upon the marketing plan (Reuber, et.al., 2018). Solid marketing
strategy is a high-quality framework of the marketing plan. In the context of Meadow Food Ltd,
the management hires the international marketing consultant to identify the relevant strategy with
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the most suitable option for Meadow Food Ltd. The marketing process of preparing the strategic
plan in order to implement is the market and environment study, setting up marketing aims,
fixing marketing strategy, marketing mix, market controlling activities. After following such
marketing activities, detailed plans and marketing programs will take place to administrate them.
There are different relevant aspects that control the business like price segmentation, market
segmentation, cost-effective strategies, promotional events, and appropriate proposals of
products and services.
LO6 Select analyze and evaluate data on country markets.
This study of evaluating the data of entering into the market of different countries is very
purposeful to understand the market segmentation (Yao, 2019). The international marketing
evaluation process is identified by the international market consultants so that they could take a
step forward toward the Chinese market. The process entering in other national borders as
follows:
 Country identification
 Preliminary screening
 In-depth screening
 Final selection
 Direct experience
These are the five steps taken by Meadow Food Ltd in order to fix up their obstacles in entering
the Chinese market. The existence and retention in the market of other national border is a very
critical phase for any business organization. Business organizations will only go further into
other markets when they get succeed in their area (Yao, 2019). Hence this study of international
marketing on Meadow Food Ltd is a successful example for the infant industries.
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