This document provides an analysis of the macro environment for exporting Scottish confectionery products to France. Politically, the Scottish and French governments support food exports. Economically, France is Scotland's top export market and enjoys Scottish food. Socially, France and Scotland have good historical ties and similar demographics. Technologically, online grocery sales are growing in France. Legally, all exported products must meet EU safety standards. The micro analysis examines Mrs. Tilly's value chain, including online sales, supply chain, marketing, and factory operations.

2. Summary
• Introduction
• Overview of Mrs Tilly’s
• Overview of Cluster of Target Countries
• Macro and Meso Analysis
• Micro Analysis
• Country Screening
• Channel Strategy and Target of the Channel Partners
• Questions

3. Political • UK and China agree £14 billion of trade and investment deals in 2014
Economic • China is the world’s 2nd largest economy and its economy has continually
increase.
• Scottish exports to China are now worth nearly ₤1.3bn and has significant
increase.
• a vast and fast-growing consumer market has emerged in China.
Social • "guanxi" is a crucial part of doing business in China . Most business deals are
sealed outside of working hours.
• Most Chinese are unenthusiastic about Western food, and prefer Chinese food.
• Hot Spots cities such as Beijing,Shanghai is high cost of real estate and labour.
• Chinese middle to high-end consumers are becoming increasingly sophisticated
and demanding.
Technology • The world's second-large e-tailing market such as Taobao, Tmall, and Paipai in
China and e-tailing sales totaled $120billion.
• E-tailing provided a powerful opportunities for Chinese SME.
Environment • Parts of northern China have suffered Heavy fog and air pollution.
• Officials in China is confident green technology will help overcome the country's
notoriously polluted air.
Legal • Chinese company law and regulation are extremely restricted by Wholly Foreign
Owned Enterprises(100 per cent owned by a foreign organizations) .
Macro -PESTEL Analysis

4. Political • The Scottish Government ,Scottish Development ,Scotland Food & Drink fully
support Scottish food products international export.
• France has strong political, commercial and transport links to EU countries.
Economic • French enjoy Scottish food and drink and there is a 50% increase from 2007 to
2013.
• France is Scotland’s top overseas country to export market for food.
• Scottish government has planned to invest in activities to drive forward Scotland’s
food and drink exports over a five year period.
• France is a member of the EU and WTO.
• France is the world’s fifth largest economy. It has the second largest consumer
market in Europe.
Social • France and Scotland have good historical relationships. Also, large, open and
diversified market in France and similar demographics and status to Scotland.
• France has invented the world's largest range of sweets and candies.
Technology • The online-grocery market is significant growth in France and over 67 percent of
consumers who have bought grocery online.
Environment • The Scottish Government set National Food Policy that increasingly focus on
environmental food products.
Legal • Legal considerations of Suppliers of products and services must ensure products
are safe. They should meet relevant EU safety standards.
Macro -PESTEL Analysis

5. Bargaining Power
of Customers
+
Decreased demand for
traditional sweet
Low switched costs
between brands.
Competitive Rivals
-
British well-known
confectionery industry have
into international market
eg Mr Stanleys
Threat of New Entrants
+
Small medium enterprise
Family business(hand made)
Low investment cost
low price ,various choice , high quality
Bargaining Power of
Suppliers:
+
Major supply chain
Well-known retailers in UK
Tesco
Scottish Co-op
Asda
Threat of Substitutes
+
Various types of sweets
Similar types of products
e.g snack bars, bakery
and confectionery products
Meso environment-Porter’s 5 Forces

6. Technology Development
• Web-site set up on-line shop and customer service
Procurement
• Major supply chain
-Tesco stores in Scotland and North of England
-100 Scottish Co-op stores
-Supply all 1337 RS McColl stores in Scotland
- Sainsbury's
- Whole food market
Marketing and Sales
• On-line sales in on-line shop
engage with website
and Amazon
• Using social media-
• Facebook,Twitter,Pintest and
YouTube
• attend UK's largest food & drink
event in London
After-Sales
• on-line shop and
support and
customer service
Operations Management
• build new factory and
visitor center in 2010.
• 60-cover cafe
• factory viewing platform
be able to watch products
being made.
Micro environment-Value Chain