You are appointed as an international business consultant for an upcoming high-profile UK SME based in
London. One of the company’s key objectives for 2020 and 2021 is to enter into the Chinese market for their
“UHT milk for kids aged between 3 to 11 years old”.
The company has to focus on specific target audiences (inside the Chinese market) that will see UHT milk
produced in the UK as a healthier proposition compared to the existing Chinese local selection. During the
approach to international suppliers, the business must use the UK’s reputation as a land of quality, reliability,
and transparency. Young aged children and upwards are ideal to be ambassadors for these products because
of their comprehension and transparency about what they like and what they dislike. On the other hand,
needs to be clear that the parents are the key influences of their children.
STRUCTURE OF THE REPORT:
1. Executive Summary (MAX 200 Words)
UHT Milk Industry background in China and the UK, everything must be supported by appropriate
facts and figures. (UK strengths should match the Chinese opportunities)
3. Business drivers of the company’s expansion into the Chinese market.
You are expected to conduct PESTEL and Five Forces analyses in order to identify key business drivers
(Insert in the report only the relevant part of the analyses, there is no need to cover P, E, S, T, E, L if
(For example, you can choose the business drivers by Political and Economic from Pestel and Supplier
Bargaining power from Five Forces).
Choose 4 or 5 Business Drivers between the two analyses.
You have to specify the factors under appropriate sub-headings and support the content with
|||Size of market|
4. Trade Barriers
Identify the trade barriers between the UK and China.
Highlight 5 to 7 trade barriers in the specified context. You must establish the business uncertainties
and opportunities generated by the trade policies of the national government of the target market
5. Ethical and social issues to be considered by the UK SME.
You have to focus on the importance of CSR when operating internationally in this particular context
and highlight the significant ethical and social issues.
|Children abuse in marketing strategies.
Ethical dilemma on UHT milk
6. Cultural preferences to be considered by UK SME
Highlight the significance of culture within various activities associated with international Business
in the Chinese market — for example, social factors, branding, communications, local flavour, design.
|Apply HOFSTEDE MODEL
Highlight the significant cultural difference between the UK and China.
7. Expansion Methods to be chosen by the business.
Identify which is the most suitable internationalisation method for the UK SME in the given contest.
Support your choice with appropriate strategic evaluations.
|||Focus on LOCALISATION and use DIFFERENTIATION strategy for expansion. (how to adapt
to the local market)
Choose one of these expansion methods:
Highlight the most relevant factors where the SME should focus in order to have a successful
expansion in the future.
GENERAL IMPORTANT POINTS:
|Research what UHT milk is and the Chinese problem in 2008.
Look at the black market after the UHT Milk crisis of 2008.
The parents are the key influences on the children.
Take into consideration the Forex Exchange fluctuations on costs in order to understand if the
target market should be the RURAL or URBAN population due to the local infrastructure.
See Chinese awareness of Lactose and Lactose products.
Depending on the market decide in which part of China the SME will focus its business.
Take into account International Suppliers.
Take into account regulations on Import and Export between UK and China.
Take into consideration the risks related to this operation of internationalisation.
Use reliable references.