International Business Strategy: UHT Milk Market Expansion in China

This report provides an overview of international business, focusing on the expansion of a UK SME, specifically dealing with UHT milk, into the Chinese market. It examines business drivers, trade barriers, social and ethical considerations, cultural preferences, and expansion methods, using the A...Read More

International business

EXECUTIVE SUMMARY
International business is basically involves and effective way for maintaining the way of
the goods and as well as services across to the country. The following project include the
fundamental way of trading when the business will expand the functions and services for their
effective manner of growth and advancement as effectively. The following project with also
demonstrate the manner of sector in an effective and suitable wave with gathering of different
manner of process by that the way of supplying higher term of the goods that are utilised by
customer. Food product have a wider term of opportunities for organisations to manage their
dealings in the business of management. As the different terms of business that have original
terms of responsibility in business. The following also covers the dealing with the UHT milk in
the chinese market in the chinese market sector as according to the way of the mil that are
consumed by respective. They also cover the way of global, semi skimmed and as well skimmed
and the section.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
TASK...............................................................................................................................................4
Business drivers that helps in the expansion of the company.....................................................4
Trade Barriers..............................................................................................................................7
Social issues and Ethical issues which should be considered by the SME of UK......................8
Cultural preferences of the company...........................................................................................9
Expansion Methods used by the company Ansoff matrix:..........................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
International business is commonly refers to the transaction of services as well as
products around the nation at the time when the firm scales there business operation across the
different nations in the world then it is called as the international business. If the business
profession requires to enhance their demand in the marketplace, then this is more importantly
required for the organization to enhance their market share. Arla within Chinese market sells the
organic mail to their consumer its profit as well as demand is more in the industry (Berns,
Gondo, and Sellar, 2021). The following organization was founded in the year 2003 and it is
having it is headquarter in Leeds United Kingdom. In addition to this, There are other
competitors in the industry that offers the similar product of the company but in the market area
demand of Arla within Chinese market products is more and because of this higher demand
management of Arla within Chinese market have decided to enhance its market share around the
nation so that more and more revenue can be generated through it. Moreover do this the
following report will cover about the business drivers, barriers in trade, cultural preference and
methods of expansion, ethical as well as social problems in the business operations. In the
following report this will also be monitored that how the organization will develop their market
share with the help of its services across the nation in order to enhance more income.
TASK
Business drivers that helps in the expansion of the company
The actions as well as inputs which drives the company’s finances as well as performance
which is based on operations is refers to as the business drivers. Sales people, Goods that are
sold, online reach, production unit and number of Stores Company have and many other are
some of the examples of it. Firms major drivers need to be evaluated and any of that under its
observation need to be enhanced (Brandl, , and et.al., 2021). In the area of management, Arla
within Chinese market Foods will have the major influence on the fundamental component of the
characteristics which have a way of extending the increased set of goals with having you set of
the consumers in the market. In order to evaluate the external environment of the Arla within
Chinese market framework crystal message has been utilised and it is mentioned below in brief.

 Political factors: The several components of the fiscal laws, policies regarding tax, trade
tariffs as well as other elements are involved in this factor. Political components can
affect the cost of management as well as it will also have the major influence on the
success as well as development of the company in the market. Since there are a number
of political elements which are based on democratic as well as organisational for like
chances of having armed conflicts in the country, political stability, laws regarding the
industry and several more in context to the Arla within Chinese market Foods it has been
evaluated that the nation is having the political system which is more stable (Campra,
Paolo, and Brescia, 2021). Moreover to this management of Arla within Chinese market
food can create several techniques and strategies which are based on the political
environment of the country that is stable so that income and revenue making of the
organization can be enhanced in the market.
 Economic factors - Increase in the rate of inflation of any nation’s economy can impact
the commercial organization in there method of pricing of their products or services in
the market that can influence the power of purchasing of the consumer and it can also
alter the chain of supply and demand of the organization because of this management can
encounter several losses. In relation to the company Arla within Chinese market Foods,
management will have the effect on the common set of Establish tendency which have
influence the way of enhancing and setting the major goals and objectives with targeting
new set off customer in the industry. Apart from this, such type of characteristics will
enhance the chances of employment rate and it will also help in setting such tactics of the
organization in a way which will have the implementation of all the strategies in order to
recruit the skilled as well as experienced people in the operations of the business (Choi,
and Cho, 2021). Moreover to this, it will provide a major site of adequate terms in the
aspect of the items of the food as well as the services in reference of the company’s
market share in the industry while enhancing or maximising the regular slow in order to
compare the transactions in the area of the manufacturing of the goods as well as other
product industries.
 Social factors: This elements includes the analytics of the population, preference, trends,
culture and many more. For instance trends of purchasing in the European nations like
England, at the time when the demand is enhanced throughout the season of holiday. The

culture of the China as well as England are majorly not similar in which rate of savings is
far below around 15% in the United States as well as about 30% in China. Unless the
management of the business does not create their vital terms in the area of manufacturing
the major number of goods as well as services in accordance to the need of the company
then it may have the influence on the overall operations of the management in the market.
In context of the company Arla within Chinese market Foods, management will perform
ethnographic survey in order to understand and learn about the attitude and behaviour of
the consumers in accordance to their needs and wants.
 Technological factors: This factor of PESTLE analysis involves innovation development
which can impact the operations of the Company as if the management will take several
utilization of the automation in the business in order to assemble their product and place
it into the market area then it will assist in scaling the demand of the company for the
long term (Chung, Dahms, and Kao, 2021). Apart from this, the appropriate role of the
opportunities which are connected to the organizational way will set the method of
innovation of growth in the business management supporting the company with the
proper elements of gaining the high field of development on the fundamental area of the
nature of the business in the industry of the market by taking it into the consideration of
the consumers will be assisted by the development and advancement in the operations.
The businessman giant may provide the broad collection of Product and services with the
several technological methods as in order to increase the income and revenue effectively
as well as efficiently
 Environmental factors: This component that involves every element which are
examined by the environmental atmosphere. Organization need to make products that are
more of the eco-friendly so that it will not harm the environment because of the
operations. The management of Arla within Chinese market Foods will decline the
reducing of the carbon footprint in their management as well as they will try to minimise
the industrial waste which is harmful for the environment. By stopped the safe and
healthy environment may be given to the company as to if the environment it’s not safe
then it can create several problems for the organization in order to smoothly run their
operation for the long term as it will harm the success of the company as well.

 Legal factors: This factor involves all the laws, rules and regulations imposed by the
legal bodies or the government which can have the direct or indirect effect on the
working of the company (Cuypers, and et.al., 2021). All the organizations need to follow
these laws in order to smoothly run their operations and these laws can be consumer laws,
employee’s laws, health as well as safety and several more. The company needs to work
with and manage the segments with greater aspects of the measures as there are various
organizational laws and the way in which they differ from the local area at the time of
tapping into the Newmarket for the greater set of operations in the company which is it to
be legal so that the organization can create appropriate as well as healthy conditions and
can offer save working atmosphere to their workers in the company. The government of
China regulate the agriculture sector and also the organization that operates in the food
and beverages industry and also the pharmacy sector (Dharmasiri, 2021)
(Ermasova, 2021). In addition to this Chinese government tried to integrate the idea with the
department of Food and Drug of the China in the year 2003 during the existing set of periods.
Trade Barriers
Trade barrier are effectively the approaches that are made by the government body that
offers limitation on the multinational trade. Trade barrier develop highly expensively trade in
tough manner that can have an impact on the presentation of the management in the field of
market place to develop the advantages of the management in market exchanging which is
differently important. There are some of the trade barrier that are as follows -
 Quotas – Is effectively limited place on the imports of the products and facilities.
 Subsidies – It is domestic subsidy that offers the domestic management a competitive
benefit that is presented by the administrative body.
 Embargo – It is generally a ban on import from the nation. For example embargo with us
and Cuba (Funk, Treviño, and Oriaifo, 2021). In China there are some trade barrier that
will have an impact on the operations of the management in the field of market that are
presented below.
Tariff trade barriers in china - It is generally a beauty that have been given on particular
amount of export and import. It is compulsory against the China for their facilities in European
union that are declared its plan in 2016 January, European union stated such plan to charge level

on imports of China certainly in the solar or steel sector as well. On import product China is
charging higher text from 0% to 100%
Non - Tariff Barriers - It include particular laws and obligation that can make dealing mode of
for instance if management of the multinational marketplace will follow difficult trade rules then
it can become tough for the management to deal.
Tariff Barriers - They maximize the cost of imported products and as well as facility that makes
import low competitive in the field of marketplace. Such as taxes on particular import.
Voluntary Export Restraint - It was utilised by the United State to import Japanese cars in the
market please as per to the quotas, it follows the nation that accepts the manner of import.
Non-tariff trade barriers in china - Quotas are effectively and import that are linked to the
trade barrel of China and impose restriction on the goods and facilities to secure the local
management. Quotas are generally voluntary by the local nation to another nation that can be
barrier for multinational management (Georgallis, Albino-Pimentel, and Kondratenko, 2021).
Anti-dumping duties - It is effectively a technique that will enable by the WTO as a security by
which low cost import can be negative that can be risky for the business. As there are several
nation that impose anti-dumping obligation in support of China.
Voluntary exports restraints - It is effectively the edge that is imposed by the administrative
body on the products and facilities that can be exported to another nation in a certain period of
time. The fundamental purpose to eliminate such section are import that are inexpensive. Such
restraints termed to the trade negotiation term that framed among Nations.
Social issues and Ethical issues which should be considered by the SME of UK
Corporate social responsibility is commonly the obligation of the company which is self-
governing that assist them to be socially conscious regarding the environment, society, public as
well as its stakeholders. Additionally this is also known as the corporate citizenship, accompany
can be conscious of the several type of the effects which they are possessing on the economic,
social as well as environmental. In addition to this this will assist in increasing the interest of the
business in the way of commercial gaining. Organizations that works and adopt the programs of
corporate social responsibilities have enhance their operations in the market so that company can
return back something to the community (Hannan, and Liu, 2021). The following strategy which
is corporate social responsibility is basically the technique for the big firms in order to support
the society and attain more goodwill which can be beneficial for them for the long term goals

and success. In context to the company Arla within Chinese market Foods management gives
several unique quality of the merchandise to their consumers at the very reasonable prices so that
people can conveniently utilise the services of the respective firm. Company also focuses in
doing several charity programs, providing donations as well as the food package to the
underprivileged children. This company provides healthy food items with having the appropriate
packaging due to it if the packaging of the merchandise will not be safe then it can harm the
health of the people in the market that can be act as the limitation for the organization.
Cultural preferences of the company
For enhancing the income in the market area which is new by evaluating the culture of
the nation is very essential as it assist in evaluating the requirements of the buyers that will
supports in improving the operations of the company. Additionally, culture means to the ideas,
behaviour, attitude which is dynamic in the nature of the consumers of the new market area.
Moreover, to this, in the global nation consumers have several preferences which basically
depends on the their needs and wants so that company needs to innovate their operations in such
a manner in order to satisfy them and management also need to also work on understanding the
dynamic behaviour of the consumers as it can impact the growth of the company in the long term
perspective (Jones, 2021). In context to the Arla within Chinese market Foods consumers in the
China are not basically conscious about the ingredients they are basically more into taste and
nutrition. Furthermore, daily meals of the China basically consist of several groups of food
which is grain, fruits, vegetables and meat. Show the company need to focus on targeting the
consumers in accordance to this as well as management need to provide better services to the
customers which can help them in gaining more consumer base and goodwill. Basically, Chinese
culture is bit of the different from other nation as the people of other countries are more into
quantity then nutrition or taste if the management needs to enhance their revenue making then
they need to concentrate on taste as well as nutrition’s in the items as it will help them in gaining
the trust of more potential buyers as it will impact the operations of the business in the market
effectively. In addition to this business need to have the immediate survey of the culture so that
culture can be appropriately adopted by the company that will help them in fostering there
economy.

Expansion Methods used by the company Ansoff matrix:
 Market penetration: It concentrates on increasing the demand or sale of the current
products in the existing market area of the company. Management focuses on the several
different techniques in order to enhance the sale of their current good in the mark it as it
gives the several offers add discount coupons to the consumers so that they can get more
into the buying the products that the company is offering in the industry (Lemieux, Jand
et.al., 2021). Moreover to this, management of the company offers for sale services as
well as also give the top quality products to their consumers. In relation to the company
Arla within Chinese market Foods management offers the services and products which
are consist of the health related items that will assist in increasing the demand of the
product which are offered by the organization in the market.
 Product development: It concentrate on creating a product or modifying the existing
product and selling it into the existing market of the company by evaluating several needs
of the buyers (Oliveira, and Johanson, 2021). Development of product expects the more
revenue in the company as it scales the interest of the management on satisfying the
needs and requirements and assisting the consumers with providing in top quality product
which can assist them in increasing more goodwill as it will lead to enhanced sales. This
strategy is one of the best strategies for attaining success for a long term in the
marketplace. In context to the order foods management can develop several segments in
the drink which are totally healthy and tasty so that it will be beneficial for the health of
the consumer. Moreover to this management of Arla within Chinese market food is
focusing in developing the food item that will gives more protein to the children so that
those children cannot encounter any type of health problems. These innovation in the
food items of the Arla within Chinese market foods can help the company enhancing the
consumer ways which will lead to their long term success and profitability in the
marketplace.
 Market development: This concentrates on typing the new market area with the products
which are currently sold by the organization. In context to the Arla within Chinese
market Foods management wants to tap into the market of the China so for this
organization need to make several strategies in accordance to the attainment of the
demands and Want of the people of China that will assist the company in selling only

such products which are more utilised by them. Company need to focus on researching
about the needs of Chinese people as it will help them in becoming more successful in the
new market area (Schmid, and Roedder, 2021). The products that are being sold by the
company in the new market area will help in the energy and health of the children then it
will help them increasing their revenue making and success for the long term.
 Diversification: It concentrate on producing the new product and selling it into the new
market area. If the company requires to scale their business operation in China then
organization need to produce their services in accordance to the demand of the Chinese
people. By offering them the appropriate services will help them in attaining goodwill
and if company will not improve their product by studying the demand of the consumer
then it can impact badly to the company (Tekin, Ramadani, and Dana, 2021). In order to
overcome this organization need to set the department of research and development in
which they will examine the interest of their consumers show that development of the
product can be done which will help the firm in scaling the operations in the Chinese
market and expand the profitability of the business
Arla within Chinese market Foods organization, it have several advantages of scaling
their business operation in China due to the milk products are more in need and demand there
because of the children. As due to this innovating the goods by specifically Targeting the kids of
the China as it will assist in enhancing the profitability as well as sales revenue of the
organization (Yang, and Ai, 2021). This will assist in boosting the energy level of the children
and will increase their immunity level in order to minimize the health issues so this innovative
product will assist the organization gaining more goodwill and brand awareness in the market of
China. By enhancing as well as managing the area of market it will be the suitable for the
workers to minimize the several external and miscellaneous costs which are linked to the training
and development as this will majorly supports the appropriate way of focusing on the core
competencies of the company.
CONCLUSION
From the above report it has been concluded that global strategies bill support the business in
increasing their brand recognition and success as well as in order to manage the working and

methods in the market area management need to conduct several research programs in order to
understand the needs of the consumers in new marketplace. This will majorly enhance the
productivity as well as revenue making of the company in relation to the attainment of the
success for the long period of time. Moreover to this by evaluating the several site of culture it
will be convenient for the organization to maintain the culture with other countries as well that
has the crucial part in making effectual decision. As the respective organization will make their
goods in accordance to the betterment and growth in the society which will help them in
fulfilling the obligation of corporate social responsibility as well.

REFERENCES
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