International Business: Analysis and Discussion for Airdri's Global Expansion

This report analyses and discusses Airdri's global expansion in the international business market. It provides an overview of the organisation, rationale for going international, recommended country, typical barriers, and implementation approach. Airdri is a UK-based company that designs and produces hand dryers and has decided to expand its business internationally in the US market.

International Business

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
ANALYSIS AND DISCUSSION...................................................................................................2
Provide a brief overview of the chosen organisation and the rationale for going international.
................................................................................................................................................2
Critically discuss which country you would recommend them to enter and the rationale behind
the decision.............................................................................................................................3
Discuss typical barriers that will be faced as the organisation expands internationally........4
Based on your analysis, critically evaluate a relevant implementation approach for the
internationalisation process for the specified target market...................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
International business is also called globalisation. This also helps firm enhances competition
into domestic marketplace as well as introduces new opportunities to global markets. Also,
international competition motivates firms for becoming more innovation and officious into its
usages of resources. For all organisations it is important to move towards international business
as it has various benefits mainly for manufacturing or production entity such as Market
Expansion, Brings Foreign Exchange, Spreading of Business Risks and so on. Furthermore,
exploring the business globally means opening new chances for its firm like being competent for
reaching out to new competent customers as well as enhancing their profitability. Still with all
new opportunities for development, new barrier, difficulties emerges as well. This is so because
all countries have their own norms, languages, government, currency, cultures, inflation rate and
many others.
INTRODUCTION
International business is undertaken as the trade of products, services, capital, technology
and understanding across domestic border as well as at international or transactional scale.
Moreover, this incorporates cross border transactions of product & services among two or more
countries. In addition to this, international business is also called globalisation. This also helps
firm enhances competition into domestic marketplace as well as introduces new opportunities to
global markets (Aguilera and Grøgaard, 2019). Also, international competition motivates firms
for becoming more innovation and officious into its usages of resources. For completing this
report, Airdri is chosen. It was developed in Oxfordshire, United Kingdom within year 1974
through business partners Peter Allen and Philipps. Both of them are experienced as well as
entrepreneurial engineers. The topics which are going to be analysed and discussed in this report
are overview of selected firm, effective for going globalisation, explanation related to country in
which chosen entity enter and rationale behind the decision. Moreover, typical barriers which
would be faced as firm explores internationally is also explained. Apart from this, critical
evaluation of implementation approaches for globalisation process to particular targeted
marketplace is also described in this report.
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ANALYSIS AND DISCUSSION
Provide a brief overview of the chosen organisation and the rationale for going international.
Airdri was developed in Oxfordshire, United Kingdom within year 1974 through business
partners Peter Allen and Philipps. Both of them are experienced as well as entrepreneurial
engineers. For over 45 years Airdri have been producing as well as designing world growing
hand dryers. Moreover, it is a United Kingdom based engineers tem has formed a range of seven
hand dryers which excel into reliability as well as quality. In addition to this, respective firm are
leaders into championing developed goods durability, sustainability as well as hygiene within
washrooms all over the world (Backus, Kehoe and Kydtand, 2021). During effective
advancement into hand drying sector they determined that there was a gap into marketplace for
much higher reliable, energy effectively and wonderful designed hand dryers for suiting each
washrooms as well as it initial spark of imagination is realized within their ever developing hand
dryer ranges.
Over the period, Airdri group has developed. Though hand dryers would always be its core
business, in- house engineering specialised have drive us towards exploring new areas of
development. Since in 1980, under the brand formula system, they has been at forefront of
elevator technology sectors with formation of their patented system of elevator doors and speech
units. Also, within early year 2020, respective firm introduced Stera Space- best into class air &
surface sanitizers which are proven o efficiently obviates about 99.6% of harmful viruses as well
as bacteria (Overview of Airdri, 2021).
Rationale for going international
For all organisations it is important to move towards international business as it has
various benefits mainly for manufacturing or production entity. Moreover, with local markets
being saturated, several firms think of expanding their business internationally such as Airdri.
So, some rationale for going international are discussed below in respect of Airdri:
Market Expansion
International businesses are opened for performing operations within several countries all
over the world. Moreover, these enterprises keep upon exploring their practices as well as
expand new marketplace to sell much goods and services. Additionally, it is also helpful in
gaining higher amount of profitability that assists them to expand their market share. (Buckley
and Casson, 2019).
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Brings Foreign Exchange
The global business obtain huge amount of foreign exchange through selling their goods
within several countries. In addition to this, whole payments are received in respect of foreign
currencies that are utilized through their domestic nation for payment of imports. Additionally,
the foreign exchange gained through these ventures that aids into whole economical growth of
country.
Spreading Of Business Risks
International business presence across the world aids in spreading their risk. In case, there
is any loss occurred through this business into any one of the nation's then this may be adjustable
in simple way with profitability gained into other countries (Buckley, 2019). In addition to this,
this is also helpful for firm like Airdri Ltd. To transfer it's surplus products or resources into one
nation to other that aids them in minimizing its risk.
Economies of Scale
The international businesses are become competent for enjoying economies of scale
because of its huge scale of manufacturing. Moreover, they generates huge among of products
for selling within several nations (Collinson, 2020). In addition to this, with the enhancement
into amount of manufacturing, per unit cost of producing products reduces that aids them in
gaining more profitability.
Critically discuss which country you would recommend them to enter and the rationale behind
the decision.
As for over 45 years Airdri have been producing as well as designing world growing hand
dryers. Moreover, it is a United Kingdom based engineers tem has formed a range of seven hand
dryers which excel into reliability as well as quality. Over the period, Airdri group has
developed. Though hand dryers would always be its core business, in- house engineering
specialised have drive us towards exploring new areas of development. So, now they decided to
expand their business international within U.S.A. As after analysing the U.S. hand dryer market,
it has been analysed that U.S. is known to be the key contributor to international high speed hand
dryer market. Also, the respective market development may attribute towards higher standards of
living as well as maximised concentration upon developing commercial spaces. In addition to
this, the maximising demand for developing and building sustainable infrastructure incorporating
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railway station, hospital and hotels is undertaken to be the major aspects that are accountable for
U.S. high speed hand dryer market growth. Additionally, hotels within country are concentrated
upon adapting eco-friendly activities, therefore, the marketplace have witnessed a preferences for
dryers over paper dispensers. However, higher returns upon investments are main factors of
particular shift into preferences. However, US nation has become much acutely known about
sanitizations that has drives towards higher demand for hand sanitizers within nations. Beside all
this, the other factors driving sale of hand hygiene in US is outbreak of bacterial as well as viral
infections like COVID-19, so hand hygiene goods viability has enhanced at cars, shopping
malls, offices, homes and many more. Furthermore, undertaking the hand dryers market, vendors
may undertake an enhancement raise because of infrastructure growth of environment friendly
surroundings (U.S. High-Speed Hand Dryer Market - Industry Outlook and Forecast 2020-2025,
2021).
Discuss typical barriers that will be faced as the organisation expands internationally.
International business is considered as the manufacturing and sale of products & services
among nations. Moreover, there are various manners a business may be global:
 This manufactures products nationally as well as sells into domestic and international
market.
 It generates products into various countries but sells nationally.
 This manufactures commodities within several nation and also sells it into both national
and international market.
Furthermore, exploring the business globally means opening new chances for its firm like
being competent for reaching out to new competent customers as well as enhancing their
profitability. Still with all new opportunities for development, new barrier, difficulties emerges
as well. This is so because all countries have their own norms, languages, government, currency,
cultures, inflation rate and many others (Dörrenbächer and Gammelgaard, 2019). So, as Airdri is
going internationally, they would also have to face various barriers some of them are highlighted
below:
Cultural barriers:
As all know that every country has their own particular culture or blend of cultures.
Moreover, culture incorporates of traditions, holidays, social norms, foods and arts obeyed
through specific group of individuals. Additionally, this is essential as well as enriching to know
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regarding specific country’s culture in which fir would like to operate their business. In respect
of Airdri, while managing a teams into their US offices, selling goods to global retailer or
competent consumers, or performing an overseas manufacturing facilities, explaining that they
would have to takes some time for understanding respective country cultures as it could project
the regards as well as emotional intelligence that are essential for performing the business in
successful manner.
One illustration of cultural differences among USA and is working hours. As within US,
it is generally from 9 a.m. to 5 p. m where as in UK however working hours are mainly 9 a.m. to
1: 30 p.m. and 4: 30 to 8 p.m. The breaks in between working days permit for siesta that is a rest
undertaken after lunch into various European countries.
Managing international teams
The other key barrier of international business that firm may faces is managing staff who
lives across the world. When focusing to perform as a group, this may be tough to account for
cultural differences, language barriers, time zones and changing technological level access. For
instances, for maintaining as well as building a stronger work relations with their international
team, firm may provide continuous check ins, preferably utilising a video conferencing platform
so they may interact into real time (Eden, Nielsen and Verbeke, 2020).
According to the research by Gallup, it has been viewed that staff who have continuous
check- ins with its administrative are 3 times much more likely to be involved at work in
comparison to workers who do not. In addition to this, when distance separate teams, as this has
for various at the time of corona virus (COVID-19) pandemic, communication is key to assures
all feels valued as well as involved.
Currency exchange and inflation rates
The dollar value is not always equal to similar amount with other nation currency, nor
would the currency consistently be valuable the same amount of products and services. So, this
would be also the barriers of going international business (Ferraro, 2021). For instance, it is
essential for entity like Airdri who plan to expand their business internationally have to familiar
with currency exchange rates among its nation as well as those in which it plan to perform
business. Additionally, the exchange rate is much relative value among two country’s currencies.
For it, the present exchange rate from Canadian dollar to United States dollar is 0.77 which
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means that Canadian dollar is equal to 77 cents into United States currency. Along with this,
develop it a point foreseeing exchange rates much closely as it may vary.
Furthermore, this is vital for monitoring the inflation rates that are the rates which
common level of price into economy enhances year over year that expressed as a percentage.
Also, inflation rates fluctuate all over countries as well as may affect materials and cost of
labours and pricing of products. So, acknowledging as well as closely following those two rates
may facilitate essential information related to value of firm’s goods into several areas over period
(Ghauri, Strange and Cooke, 2021).
Nuances of Foreign policy, politics and relations
Business does not exist into vacuum – this is influenced through norms, law, politics as
well as relations among nations. As those relations may be extremely nuance, this is vital that
they closely obey new associated to nations in which they perform the business. Moreover, the
decision formed by political leaders may affects labour laws, taxes, cost of raw material,
infrastructure, transportation, system of education and many others (Nambisan, Zahra and Luo,
2019).
So, one hypothetical illustration Reinhardt represents into international business is that in
case the government of China decided to subsidize Chinese dairy farms, this could affect dairy
farmers into whole surrounding nations. It is so, with additional funding, Chinese dairy farms
could manufacture a dairy products surplus that causes them to explore its market to
neighbouring nations. So, they are both exciting as well as intimidation that global norms,
relationships and politics nuances may affect their business. Stay informed and develops
strategic decision as new information arises.
Based on your analysis, critically evaluate a relevant implementation approach for the
internationalisation process for the specified target market.
As per the above analysis, there may be various implementation approaches that a business
may use with their practices in effective and reliable manner. Additionally, this is essential for
Airdri to research as well as evaluate each techniques focal points like as weaknesses.
Additionally, this analysis would assist them to understand several forms of advertisements
techniques easy to get to as an alternative. In addition to this, the key portions as well as
continuous promoting methods which would be utilised by Airdri are Merchandising,
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Franchising, exports and many more. So, some implementation approach for internationalisation
process for particular targeted market is discussed below:
 Export: It is considered to be an implementation approach for internationalisation in
which the firm’s enters into new market by expanding their business activities or enter
new around line region of market. Moreover, Airdri would have an opportunity to
develop their business just as their contribution deal. In addition to this, sending out is an
aspects that categorize the process to offer products manufactured to new market region.
Additionally, respective company would have the chance to trade their goods and
services within international marketplace by various strategies (Shenkar and et. al.,
2020). Also, it would have their own extended network team for developing business into
targeted countries.
 Licensing: Licensing alludes for dealing with the prospects that where venture required
being experiences legal norms as well as allows their products or business to perform
business activities in simple way internationally. Moreover, this is permitted through
individual government or authority. In addition to this, Airdri also may undertake
permission for their activities and operations across boundaries from respective country
government. Along with this, it would concede them with rights for selling or using their
properties, products and management within targeted international marketplace.
 Franchising: Franchising is considered as acknowledging entered among two innovative
firms for performing their business activities all over the world through sharing the assets
or brand through franchisor with taking franchisee. As for it franchisor charges a
particular expenditures or sovereignty from franchisee rather than it additionally obtains
specific offers within their revenue (Verbeke and Yuan, 2021).
Therefore, from the above, it has been determined that Airdri which is known to be the UK
based hand dryer manufacturer firm but for expanding its business into internationally licensing
is the best implementation approach. As it is not so costly while contrasted with various
country’s systems. Moreover, this would also aids respective firm to obtain information about
targeted countries economic situation as well as proceed with business.
CONCLUSION
As per the above report, it has been concluded that this is essential for entity to go
globalisation. Additionally, International business is undertaken as the trade of products,
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services, capital, technology and understanding across domestic border as well as at international
or transactional scale. Moreover, this incorporates cross border transactions of product &
services among two or more countries. This also helps firm enhances competition into domestic
marketplace as well as introduces new opportunities to global markets. Also, international
competition motivates firms for becoming more innovation and officious into its usages of
resources. In addition to this, exploring the business globally means opening new chances for its
firm like being competent for reaching out to new competent customers as well as enhancing
their profitability. Still with all new opportunities for development, new barrier, difficulties
emerges as well. This is so because all countries have their own norms, languages, government,
currency, cultures, inflation rate and many others.
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REFERENCES
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Barmeyer, C., Mayrhofer, U. and Würfl, K., 2019. Informal information flows in organizations:
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Online
Overview of Airdri, 2021. [Online]. Available through:< https://airdri.com/about-us/>.
U.S. High-Speed Hand Dryer Market - Industry Outlook and Forecast 2020-2025, 2021.
[Online]. Available through:< https://www.researchandmarkets.com/reports/5137056/u-s-high-
speed-hand-dryer-market-industry>
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