dimanche 19 juin 2011

Foreign Market Analysis

Bettys and Taylors of Harrogate Limited is a family business that has been around for numerous years. Having its headquarter in the heart of  North Yorkshire, Bettys and Taylors of Harrogate Limited deals specifically in things like handmade cakes, chocolates and cafes selling teas and coffees. For all the years the company has been in business, it has demonstrated great care for communities with which it trades. Similarly, the company is keen at developing its human resource to achieve their maximum capacity and offers cooking classes besides selling its confections online. The teas and coffees sold by this company are branded as Yorkshire Tea and Taylors of Harrogate (International Directory of Company Histories, 2005).
Basically, the business can be divided into three main parts: tea rooms, bakeries a coffee and tea blending factory. The teas and coffees are imported from all over the world so as to be blended in the factories owned by the company. The business was started in 1919 by Frederick Belmont in Harrogate, Yorkshire. Due to the instant success Belmont, was forced to open other branches of the business in Northallerton, Yorkshire, Ilkley, and York throughout the 1920s and 1930s. He also built bakery in Harrogate which was charged with the responsibility of baking all the breads, cakes, pastries and making chocolates all of which were used in all the company's branches.
The business continued to grow locally opening more branches within the geographical limits of Harrogate and its environs throughout the 1940s and 1950s (Kotler & Keller, 2006). In 1962 the company was able to purchase its main competitor C.E. Taylor & Co.  C.E. Taylor & Co was owned by Charles Taylor. Taylor started his career in business in the last quarter of 19th century at the southwest England. He concentrated more in the buying and blending teas that most grocers were able to pack and market as their own brands. Indeed, Taylor had finesse in blending tea that was best suited for the local waters and as such was in constant pursuit for new tea blends. Taylor was fired having made one huge and risky purchase of tea as a result of his flair for new blends of tea. Llewellyn Taylor, a brother to Charles and Charles himself went out after Charles' sacking on their own tea and coffee merchants thus finding their own company, C.E. Taylor & Co., in 1886 in Leeds. The business continued to grow once the two brothers opened numerous branches of coffee kiosks where they roasted their distinct coffee which was mainly exotic blend. This company posed serious competition to Bettys Café Tea. However, following the death of Charles, Bettys Café Tea purchased .E. Taylor & Co. hence leading to the birth of Bettys and Taylors of Harrogate (Mead, 1998).
By 2004 the company had six outlets in the entire Yorkshire with a turnover of more than £50 million it had a workforce of more than 900 workers. Besides the company blending coffee and tea for the use in its outlets, it started to export its major blends, Yorkshire Tea and Taylors of Harrogate to a number of countries. China joined the list of these countries in 2004. The company shipped more than30, 000 pounds of the specially blended teas and coffees to China mainly through its distributor in Taiwan. This was also just about the time the company held an extensive fundraising aimed at funding the charities such as research and healthcare run by the company. As a result, the workers in the company held raffles and other events to raise the money required. The amount helped the company progress in its corporate social responsibility. For instance, in 2004 the company was able to launch its Fairtrade Organic line of coffees. These coffees came from Nicaragua where the company did a great job in building a health clinic and develop environmentally friendly stoves used in homes (Judge, 2003).
The company has since continued to expand the list of the companies to which it exports its coffee and tea brands besides its main outlets where it serves the specially branded coffees and teas to its customers. The question that remains is whether the company can export its entire business of serving the teas, coffees, cakes, pastries etc to its customers in its outlets? Can the company start its extensive business practices in China? This paper seeks to evaluate the Chinese business environment for the company. The environment is analyzed in terms of the social, economic, political, legal and technological aspects of the Chinese potential market

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