M-U4A

M-U4A: Global Marketing Environment Paper Student’s Name Institution Course # and Name Professor’s Name Submission Date Organizational leaders with an interest in scaling up their operations to global markets must evaluate the external business environment. The same understanding of environmental factors affecting domestic companies can also be applied to understand the external environment in overseas jurisdictions. As the owner of Perigord Bakery, I have realized that the U.S. domestic market is highly saturated, and thus, I am considering licensing or franchising my concept in overseas jurisdictions. Understanding the host country's business environment can solve competitive advantage and help the business grow and sustain. This paper evaluates the external business environment in the host country to establish the viability of the expansion decision. Cultural Factors The market for Perigord Bakery in the United States is saturated, hence the need to explore foreign markets in Asia, specifically the Chinese population. Numerous cultural factors in China will favor the success of Perigord Bakery's ideas. First, the Chinese are known for their appreciation of spices, aroma, and taste (Commisceo Global Consulting, 2020). This allows Perigord Bakery to research and integrate Chinese preferences into their recipe. Globalization and technological advancements in the past decades have allowed the Chinese to travel and appreciate Western cuisine. Information about Chinese preferences in baking can be accessed and assessed, and relevant adjustments can be implemented easily. The bakery can also take advantage of Chinese baking experts who reside in the United States to gain a smooth entry into the Chinese market. These individuals have valuable information and details that can be used to command a significant presence in their homeland. Moreover, the Chinese people are raised in a collective society and value time spent in street food stalls in big cities. The Perigord Bakery can explore the Chinese market by funding the building of public stalls to market its products and provide a friendly environment for citizens to spend their leisure time. Eating out is very common in China; thousands of food stalls offer different dishes to their clientele (Commisceo Global Consulting, 2020). The marketing strategy for Perigord Bakery will account for this familiar concept in the Chinese community. However, the Chinese market is sensitive to high-fat and sugar foods. This is a key characteristic of many Western cuisines and will be unacceptable in the Chinese market. On the other hand, the Chinese foods are mainly vegetables and grains. The Perigord Bakery must disclose the ingredients in the packaging used to gain this foreign market's trust. Bread predominantly consists of grains, which is an advantage for Perigord Bakery. Political/Legal Factors China is positioned 31st in the "Ease of Doing Business" index, achieving a DB score of 77.9. This ranking reflects the country's well-established en...