UK-SME targets China: UHT Milk Report

International Business Report for UK-SME: Targeting Chinese Market with UHT Milk

Industry background of the dairy industry in UK and China

You have been appointed as an international business consultant for an upcoming high-profile UK SME based in London. One of their key objectives for 2021-22 is to tap into the Chinese market for their “UHT milk for children aged from (3-11 years)”.

The company is expected to focus on specific target audiences (within Chinese market) that would see UHT milk from UK as a better proposition comparted to the current local options.

Having access to international suppliers, the business fully intends to make use of the UK´s reputation as a land of quality, reliability, and transparency.

Pre-school aged children and upwards are the ideal age to be ambassadors for the producers due to their comprehension of what they like and dislike.

Font: Arial
Font size :12
Front colour: Black only
Headings: Size 14 Bold and underlined

Sub-headings: size12 and Bold

The final International Business report should contain:

Title page
Executive summary
Table of contents

1. Industry background (give the dairy industry trends in the UK and China)

UHT milk demand in UK market. UHT producers in UK
UHT milk demand in Chinese market. UHT producers in China.
Briefly discuss China´s economy and the contribution from dairy industry.
These should be supported with relevant facts and figures.
Exporting UHT milk to China at least for 1 year if is good

Business drivers behind UK-SME expansion into Chinese market.

1. Highlight the significant business drivers for internationalisation.

Competitors
Financial resources

2. Indicate the PESTLE (Very good PESTLE discuss political situation on China, PESTLE for UK) and competitors’ analysis with a relevant trade theory that would lead the SME to identify key business drivers. (Risk and Benefit for UK-SME, also PESTLE for China and the impact on UK-SME)

Trade theories could be selected from the following:

Factors of production
Comparative advantage
Absolute advantage

Marks would be awarded for productively applying the chosen models / frameworks.

UHT producers in China:

Mengniu
Yili
Guangning

Adverts in China:

Bai-Du
Wechat
QQ
Tik Tok

Distribution online : Ali baba and Jing Dang wich is more convenient for UK

1. Highlight at least 3 trade barriers in the given context.

You may choose from the following:

tariffs, quotas
regulations
ethical issues
legal issues
cross cultural/societal preferences or tastes
competitors, Germany is one of the competitors you must find the other one.

You must talk about Brexit

2. What possible consequences may occur if these are ignored by the SME?

3. Demonstrate the business uncertainties (e.g., US China trade war, Brexit) and opportunities (e.g., UK as most favoured nation) created by the trade policies of the national government of China.

Give fact and figures.

Ethical and social issues to be considered by the UK SME

1. Highlight the importance of corporate social responsibility when operating internationally in the given context. Give facts.

2. Discuss a relevant theory on ethics and link it to the ethical issues in China. Such as Bribery, corruption, labour issues, environmental issues etc. How China looks at UK´s ethical practices.

Cultural Preferences to be considered by the business

a. Highlight the significance of culture within various activities associated with international business in the Chinese market. Give examples
b. How would Chinese culture impact the UK SME, based on e.g., customer perception of UK products, language barriers packaging & labelling, advertising distribution (online shopping) etc.

Expansion Methods chosen by company