Exportation of Lucero Olive Oil to China Company Discussion As part of the Business in Global Environments course, the students are assigned to create a research paper that explores how an American company undergoes international trade. This first paper presents an American company looking to expand its product internationally to a particular country. In my particular case, Lucero Olive Oil will be exporting its olive oil to China. Lucero is an olive and olive oil producer in Northern California. Its olive production has been prominent for 27 years, starting in Corning California. In 2005, Lucero Olive Oil began marketing olive oil and quickly became a prominent extra virgin olive oil supplier in America. In this short time, Lucero has been awarded over 206 metals for its extra virgin oil, making it the most awarded extra virgin olive oil line in California. In addition to its production of extra virgin olive oil, the company crafts several brands of flavored olive oils, many of which have been 2013 Gold Award Winners in the Yolo County Fair Competition (Lucero Olive Oil, 2013). Lucero Olive Oil was chosen for its ability to supply the olives needed for the production of its multiple olive oil types. Its possession of the olive supply and the required olive oil production machinery grants a well established in-house production chain. Combined with the internal supply chain, Lucero's connection with local fruit and produce growers allows for a wide variety of specialty flavored olive oil products. In terms of quality, its Miller's Blend Certified Extra Virgin Olive Oil was rated the one of the top five best US made olive oils by the Wall Street Journal. Alongside their diverse production line, the Lucero possesses an organiz... ... middle of paper ... ...or Lucero's olive oil. In the Chinese olive oil market, China imports about 99% of its olive oil. 60 percent of this product is produced by Spanish firms, which constitutes are major competition. Currently, there are no domestic Chinese olive oil companies that pose as a significant competitor, due to a lack of olive trees in China (numbering only 82,000 acres) (Hall and Stewart, 2014). In conclusion, Chinese economic variables display help Lucero analyze the nation's future economic growth and future consumer purchasing power. These two subunits constitute the essential components to determine the benefits of entering the Chinese olive oil market. Due to a lack of domestic competition and a growing consumer base, this market is ripe for our grand entry. However, due to failing environmental conditions, Lucero must be cautious of producing any olive oil in China.
Ocampo, Sally Anne, Interview with Supplier for: Pro Organics Distributors. Conducted on November 22nd, 2005.
As it becomes a successful market in Brazil, the supply is increasing as new companies join the market. The shifts have caused the market equilibrium of both the price and quantity to increase; between 2000 and 2009 the price increased up to 6000% (task sheet figure). The market has grown drastically, the supply increasing from 104 874 tonne in 2005 to 115 947 tonne in 2009 (IBGE, 2008, 2010). This market is efficient and is generating a gross net income without any intervention from the Government. However as the acai berry is exported, the local consumers have to compete with higher prices.
The ending of the economic embargo of Vietnam in 1994 opened a new panorama over international marketing. A new high potential market, with more than 70 millions of people was avaiable for the companies: the next great frontier.
The picture in China during the recession had been quite different than in the U.S., as demand for steel to build cars, bridges, and appliances helped prop up global steel prices. However, demand in China has slowed and brought fears of China exporting ...
Aveda carries all organic and sustainable skin, hair and make-up products. Aveda also participates in the fair trade agreement to purchase extracted ingredients at a fair price for labor that is outsourced. Aveda outsources their organic ingredients from countries such as Brazil, South Africa, Bulgaria, Australia, and Peru. Aveda also takes part in ensuring that the communities and environment where these organic ingredients are coming from are protected and not mistreated. Aveda makes sure the traditions and rituals of these people’s communities are respected.
Academic Consortium on International Trade (2000) Letter to Presidents of Universities and Colleges. Available at: http://www.spp.umich.edu/rsie/acit/ [Accessed 1 April 2014]
Castor oil is one of the most versatile plant oils. The various grades of the oil and its derivatives are currently used in over a dozen diverse industries. In future, with the rising environmental concerns and the need for bio-based products to replace synthetic feedstocks, castor oil and castor oil oleochemicals have the potential to be used in many newer industries,
Many business owners and entrepreneurs are doubtful about the global opportunities available to their business. In other words, business owners don’t give consideration to the world markets, instead they tend think locally in terms of gaining customers. This doubt however is unfounded. The international trade commission reported that 70% of the world’s purchasing power and 95% of the world’s consumers are located outside of the United States, which means that there is a massive market that is currently untapped by 99% of business in America. In addition to doubt, there is the uncertainty about exporting to other countries, this uncertainty may stem from lack of knowledge about foreign trade and the international laws. A business owner may be uncertain about how, when, where, and to whom it is legal to ship their products. Although, this uncertainty is understandable it is not required for businesses that are conducting business legally within the United States, business owners should remain mindful of this so that they can push their uncertainties aside. The last factor that deters businesses from international trade is Fear. Fear that there will be unforeseen and uncontrollable issues with transporting goods such as: theft, loss, damages, diversions, and/or regulatory penalties that may be imposed on the business. Although, there is a
There were fierce competitions among the producers that have scale and scope of operations which were similar to each other. For instance, the Pepsi Co. and Coca Cola companies have developed the strategy and infrastructure, which are hard for the local sellers to complete with them. However, there were still many producers including new entrants that try to access the market and compete seriously with low price and differentiation- strategies among rival...
From the 1970s, there has been a wave of liberalization in China, which was introduced by Deng Xiaoping. This is one of the key reasons to the rise of China to be one of the economic giants in the world. In the last 25 years of the century, the Chinese economy has had massive economic growth, which has been 9.5 percent on a yearly basis. This has been of great significance of the country since it quadrupled the gross domestic product (GDP) of the country thus leading to saving of 400 million of their citizens from the threats of poverty. In the late 1970s, China was ranked twentieth in terms of trade volumes in the whole world as well as being predicted to be the world’s top nation concerning trading activities (Kaplan, 53). This further predicted the country to record the highest GDP growth in the whole world.
"Marketing Reforms, Market Development and Agricultural Production in China." Agricultural Economics 17 (December 1997): 95-114.
...st and stand in the world. It is predicted that China will one day be the largest economy growing country in world. They continually growing and rebalancing their world to be the best. The growth of economy will depend on the Chinese government comprehensive economic reforms that more quickly accelerate in China transition to a free market economy. The consumer demand, rather than exporting the main engine of economic growth; boost productivity and innovation; address growing income disparities; and enhance environmental. (Morrison, 2014,para2)
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.
Stonehouse, G., Campbell, D., Hamill, J. & Purdie, T. (2004). Global and Transnational Business (2nd ed.). Chichester: John Wiley & Sons.