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This is a master level question about international business of a Malaysia company wanted to expand its business overseas. The countries under selection is either UK, US or Australia.

So, a PEST (political/legal, economy, social and technological) analysis on all 3 countries would be needed related to the products i.e. canned coffee drink. The analysis shall be specific on the products itself, for instance, in political/legal point of view, we should mention about tariff, patent, import rules and etc for canned coffee beverages. Other 3 factors shall focus on the products too.

Academic references would be needed in Harvard Referencing method.

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Solution Summary

The response address the queries posted in 1216 words with references.

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The response address the queries posted in 1216 words with references.
//According to the given directions, you are required to make PEST analysis of UK, US & Australia for Canned Coffee Drink, Malaysia. Prior to writing for this query, you should be aware of the concept of 'PEST Analysis'. I would like to assist you on this topic for enhancing your knowledge. See the text below: //

PEST analysis on UK
Political Analysis: In UK, it is essential to label the drinks as high caffeine content, if they contain more than 150mg of caffeine per liter. No upper limit has been set regarding amount of caffeine. It is not required to bear the warnings concerning the potential risks related with the overdose of caffeine. Warning has been made by the Anti-drugs advisory group that school children are getting highly reliant on energy drinks so as to improve their performance. The taxes and the duties levied on the import of coffee are very high. Prior to the World War I, import duties levied on the coffee was 10 -15 cents per pond and before the World War II, it became around 3 cents (Doctors call for warnings on energy drinks to prevent caffeine overdose 2008).
Economic Analysis: Because of its sound economic stability, it is capable of taking the advantage of numerous opportunities, but it must take care of the potential risks. Two biggest issues related with the growth of business include Foreign exchange and increasing overseas costs. UK is characterized by the presence of Formalized foreign exchange policy. The currency of the UK is pound Sterling and it possesses maximum value in the world and at present, it is very stable (Pattinson 1990).
Social Analysis: The younger generation of the UK shows greater interest towards the coffee drink. The presence of convenient stores and other shops inside the universities forms the part of major places for students from where they get an easy access over the canned coffee beverages. In order to succeed in this market, Advertising and taste are the supreme factors which should be given due consideration (Pratten, 2003).
Technological Analysis: Emphasis given on the installation of the Coffee Machines has formed the part of comprehensive evaluation in the market of UK. The implementation of bag and box packaging system has lead to the ...

Solution provided by:
Ashish Sharma, MBA (IP)
Education
  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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