Introduction to International Business for Political Factors

Question: Discuss about theIntroduction to International Business for Political Factors. Answer: Market Analysis There are mainly six components that can create an impact on the Cendol iced sweet dessert. These components include the Geographic factors, demographic factors, socio-cultural factors, legal factors, economic factors, and political factors (Gustafsson, Herrmann, and Huber, 2013). These factors create an opportunity and challenge for the new product of the company which is discussed below:- Geographic factors Climate- One of the factors that can affect the expansion and the opportunity for the company is climate; the climate can bring the challenges for the company. Talking about the climate of UK, there are warm summers and the cool winters, in summers the temperature rises more than 320C and in winters it not much lower than the 0o There is the opportunity of the iced sweet dessert in the summers and the company can make the revenue easily but at the time of winters, the company faces the downfall in the sales (Clifford, Cope, Gillespie, and French, 2016). In winters the demand for the iced sweet dessert will reduce and then the company might face the challenge. Location- Location is another geographic factor that can lead to the challenges or the opportunity for the company. The company needs to select the best and the popular market for the product so that they can attract more and more customers towards the product. It also helps to make the product accessible to the customers. The popular market of the UK consists of Norwich Market, Oxford Covered market, Beverley Saturday market in the East Yorkshire Riding, and many other markets (Lee, Zhang, Brecke, Pei, 2015). Each and every company search for the prime markets for their product because this generates the awareness about the product among the customers. The prime location helps the company in enhancing the sales of the product. Demographic factors Age Structure- Desert is available for all the people, the expansion of the Cendol iced sweet dessert product doesn't need any particular age structure. The target audience for the product considering the people having the age of 5 years to 65+ years. The iced sweet dessert is unique which can be enjoyed by many peoples in the UK. This dessert is liked by the people who enjoy the dessert and looking for the unique dessert. The age structure is becoming the opportunity for the product expansion in the UK. Population Size- The current population of the UK consists of 66,323,974 on 11th November 2017. The population of the UK is equal to the 0.88% of world's total population. The Rank of the UK population is in 21st The population of the country indicated that there are other countries that rank good and have more population as compared to UK (Lanfear, Kokko, and Eyre-Walker, 2014). The expansion of the product can lead to the challenges for the future expansion of the outlet in the UK at that time the company needs to think of the other countries where they can expand the business. Legal factors Product safety inspection- The product that is introduced by the company in the market should have fulfilled the entire requirement related to the product safety. The product should be passed from the Food Standards Agency; this agency is responsible for the food hygiene and safety across the UK. The company needs to make sure that they are fulfilling the legal factors because non-fulfillment of these factors leads to the challenges for the company (Casey, 2015). The product offered by the company to its customer needs to be hygiene and safety, quality assurance to the customers leads to the opportunity to create the brand value and customer satisfaction. If the company is able to achieve the customer satisfaction through product then they can think for the expansion of the outlets in the UK. Enforcement of contracts- The Company needs to fulfill the contract for the expansion of the product in the UK. It is must to maintain the contract to prevent the restrictions on future opportunities and the challenges. The breach of the contract leads to the problem for the company. It is must check all the necessary legal formalities which are required to be fulfilled from the company side before the introduction of the product into a new market (McKendrick, 2014). References Casey, D., 2015. The changing landscape of food governance: Public and private encounters. Edward Elgar Publishing. Clifford, N., Cope, M., Gillespie, T. and French, S. eds., 2016. Key methods in geography. Sage. Gustafsson, A., Herrmann, A. and Huber, F. eds., 2013. Conjoint measurement: Methods and applications. Springer Science Business Media. Lanfear, R., Kokko, H. and Eyre-Walker, A., 2014. Population size and the rate of evolution. Trends in ecology evolution, 29(1), pp.33-41. Lee, H.F., Zhang, D.D., Brecke, P. and Pei, Q., 2015. Regional geographic factors mediate the climate-war relationship in Europe. British Journal of Interdisciplinary Studies. McKendrick, E., 2014. Contract law: text, cases, and materials. Oxford University Press (UK).