Home Solutions • LO1 Debate key contemporary issues relating to organisations involved in international business.
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Learning outcomes covered by the Assessment
Overview of the company:
You have been appointed as an international Business consultant for an upcoming high profile UK SME based in London. One of their key objective for 2017-18 is to tap into the Chinese market for their “Kids Breakfast range (4-12 years)” especially in promoting two products (Oat Porridge and Oat Breakfast Biscuits). The business turnover has increased from £350K to over £1.4M in just two years, with a profit increase of 35%. Their estimated turnover for 2017 is £5.4M and £7.2M for 2018.
The company carefully selects new markets and focuses on areas that would benefit from their healthier generations approach. They aim to re-educate a population by showing them that there are alternative ways via their all-natural products. The falling value of the pound sterling has created the perfect storm for British companies, to take advantage of sales in dollar currency markets. The business fully intends to make use of the UK`s reputation as a land of quality, reliability, and transparency. British companies are renowned for offering excellent food and drink products, and this has facilitated the penetration of new territories.
The business and its products have won numerous awards to date, including The FSB Business Awards, The World Juice Awards, and The Loved By Parents Awards. With a global presence in 27+ countries across all the main continents, the company is well on its way to achieving its vision of being the number one choice of brands for Healthier Generations.
Pre-school aged children and upwards are the ideal age to be ambassadors for the products due to their comprehension of what they like and dislike. The business has the ambitions to make further ranges to suit an even broader spectrum of customers while using their logo as a beacon for parents who want to purchase something better for their family including healthy breakfast range.
You are required to submit business report constituting the elements mentioned below,
1) Business drivers behind company’s expansion into China (350 words)
Students should indicate the factors under relevant sub-headings and supported by necessary references
2) Trade protectionism (400 words)
Students should highlight at least four economic and non-economic barriers. Students should also demonstrate the
business uncertainties and opportunities created by Chinese governmental trade policies.
3) Ethical and social issues to be considered by company (350 words)
Discuss the importance of social responsibility when operating internationally.
4) Cultural preferences to be Considered by the business (400 words)
Students should highlight the significance of culture within various activities associated with international Business.
5) Expansion Methods to be chosen by company (500 words)
Students should identify the range of potential internationalisation methods. This should be followed by an identification
of the most suitable options available to the SME supported by relevant strategic evaluation frameworks