Internationalization of Business and Entrepreneurial Orientation

The assignment discusses the importance of internationalization in business and its relationship with entrepreneurial orientation. It highlights the need for organizations to develop a better understanding between employees from different socio-cultural backgrounds to achieve operational capability and meet targeted goals. The document references various studies on international business, entrepreneurship, and management to support its arguments.

International Business

Executive summary
The report will lay a very deep impact on the overall operations that are been performed
by the firm which will support a good rise in capability of enterprise. This will support a good
handling of the activities and will facilitate the proper meeting of goals that are been set by the
firm to enter in a foreign market. This report will cover the different range of activities that will
help the business entity to gain a good position in international market. Apart from this, the firm
will analyse the different external business environmental activities that will help in suitable rise
in the customer satisfaction level,
The firm will also look after the vivid operations to mitigate the risk factors that are
associated with the different elements like HR, operational activities, marketing in foreign
country and PR of the organisation, that will help in suitable rise of its productivity and revenue
generation. Other than this proper recommendation steps and measures are been suggested to the
digital banking entity that will help the enterprise to have a good market share and mitigate the
risk factors during the entry mode and engagement of the firm.

Table of Contents
INTRODUCTION...........................................................................................................................1
Literature Review...................................................................................................................1
Discussion and Analysis.........................................................................................................3
4 evalute use of releveant tools and techniques to identify the opportunities........................3
5 Analyse any actual or potential risks in the foreign market selected. ................................4
6 evaluate the mode of entry for the firm...............................................................................4
7 Critical analysis of relevant management responses that are been under taken by Revolut
Ltd to gain good access to the opportunities offered by the market in Europe......................5
CONCLUSION................................................................................................................................6
RECOMMENDATION..........................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
A wide range of tools and techniques have been used that will help an organisation like Revolut
Ltd that will help in suitable handling of its business operations. A good penetration of functions
and adoption of different tools and techniques will help an organisation to handle business
activities of company in a better way. This will also help in suitable rise in compatibility and will
help in gaining a good market share in foreign country (Boddewyn, 2015). To enter in a foreign
market, a company has to make strategic changes and adopt certain innovative and advance tools
and measures that will help in suitable rise in compatibility and adaptability of operations that
will help in good increase in market share of the organisation. The research will lead to the
assessment of the different practical, international and cross-cultural risk factors that prevails for
an organisation while entering in a foreign market.
Other than this, proper opportunities has been analysed for the firm that exist in a foreign
market and will help in good enhancement in compatibility of the organisation. In addition,
proper engagement measures have been analysed that will help in effective adaption of
preventive measures to sustain in the market (Hull and Basu., 2016).
Literature Review
In accordance with the views of Knight, 2015, the international market conditions have
been changing in a very crucial and significant manner that will help in suitable rise in the
operational capacity of the organisation, trying to penetrate in foreign market. They will help in
effective handling of the operations and will intake the necessary measures that will help the firm
to sustain in market. Industrialisation depends on elements that have been taken in thought
process by the company. Other than this, the environmental conditions play a deep role in
maintaining of the operations. A supportive external environment factors will help the firm to
grow and develop its operations and business in a foreign country, while on the other hand, an
adverse business surrounding will cause the functions undertaken by an enterprise to fail
miserably, that will cause the loss of resources and customer base. This will also impact the
market share of business organisation in host country that will impact the overall operations and
meeting of targeted goals in a better way. The actions that will be placed by the company during
the entering and engaging phase of the foreign market penetration that will help in good
generation of the revenue that is followed by the firm. Other than this, as per views of Dai and
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et.al., 2014, innovation, risk taking, pro activeness and entrepreneurial approaches are the major
factors that impact growth and development of a business to enter into the foreign market and
gain a good share for the company. To enter and engage in the new country, the firm has to see
through better adoption and development of operations that will cause good growth and
functioning of organisation like Revolut Ltd. The engaging of the start-ups and their expansion
strategy has caused the competition on international market lay for the local business firms and
SME's the newly started and growing start-ups owners or entrepreneurs plan to grow and expand
their business on a multinational level. Thus, this will provide an organisation like Revolut Ltd to
provide proper findings and develop good quality products and services that will help in suitable
rise in operations capability of the business enterprise Other than this, the latest technological
innovations can be used to expand their business operations. This will improve their work
efficiency and handling of various functions that will help in good increase in operational
capability of organisation. The acceptance of adoption will help in good management of business
activities that will help in good growth in operational capability of firm. It will also help in
improving the awareness of potential customer base in foreign country that will help in nice
improvement in revenue and productivity.
Apart from this, Penrose, 2017, stated that foreign investment will help in gaining a good
customer base in abroad market and mitigate the risk factors associated with market entry to a
greater extent. The growth in a international environment can be risky and difficult hence the
firm has to look after effective measures that will help in better growth in operational capability
of the company. Other than this, it will help in suitable rise in capability and meeting of the
targeted goals that are been set by enterprise. The FDI will provide the firm with essential
financial support that helps in a good improvement in sustainability of the firm. This will also act
as support from foreign government for a company to establish its business and meet targeted
operations which will support a better increase in compatibility of the organisation. This will also
help the company to get initial support to kick-start its business activities. The more a company
will get the investment from foreign, the higher will be its scope to grow and develop in a very
sustainable manner in foreign market. This will also include effective involvement of
operations that will help in good growth of the company. However, on the other hand, Fillat and
Garetto, 2015, stated that higher the risk factor a company will face, more are the chance it will
back off with foreign investment and expansion plan. The government as well as the firm has to
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see through better handling of operations which will support a good market penetration approach
for the company. This will also help in suitable management of activities that will support a good
handling of actions and achieving the targeted goals. The economy of the company will also play
an influence and will cause gaining a good control of operations that will support a better hike in
overall operations of the company or an enterprise.
Apart from this, as per ideas of Goetz, Laeven and Levine, 2016, the international;
expansion will help in suitable growth and development of firm that will help in effective
handling of operations that will support a good growth in compatibility of organisation. The
expansion of the banking business organisations like Revolut Ltd will help in a good growth and
development of organisation. Besides this, the expansion of and enterprise on the geographical
basis will help the firm to improve its functionality and meeting of the targeted goals in a better
way. For the international expansion, the organisation swill look after the developing of high
quality and better strategies that will cause the firm to grow and meet the targeted goals of the
company. Besides this, it will support a good rise in operational capability of the organisation.
Although it will not completely mitigate and control the risk factors that are prevailing in the
organisation, this approach will help in controlling these treat factors that will help in good rise
in sustainability of the organisation. Besides this, scholars like Laufs and Schwens, 2014, states
that foreign market entry mode is a quite risky and exhausting process that will cause the firm to
slow down. Before entering in foreign business market, the firm is required to analyse the risk
factors thoroughly and develop a good global agenda, that will cause the firm to handle the
operations of the company in a better way.
Discussion and Analysis
4 evalute use of releveant tools and techniques to identify the opportunities.
Revolut ltd. expanded in European market by evaluating the some international tools and
frameworks. It helped Revolut ltd. to successfully enter in this market. The tool used was SWOT
analysis :-
Strengths the services offered by Revolut ltd. are very effective. They provide easy exchange of
foreign currency and other services. Moreover, Revolut ltd. is having a strong market share in
London (Bartlett and Beamish, 2018). Their brand image is
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Weakness – Due to recent cases of frauds with Revolut ltd. Customer. This has lead to decline in
profits and customer satisfaction. It is not having a strong database that can store data of large
number of people (Fillat and Garetto, 2015).
Opportunities- Revolut ltd. is having vast opportunities to expand their operations in European
market. There is no other competitor of Revolut ltd. that provided those services. Due to
evolution of internet more people are attracted towards doing financial transactions online.
Investment in foreign exchange has increased. This has created platform for companies to enter
in this field (Hitt, Li and Xu, 2016).
Threats – The major threat for Revolut ltd. can be related to financial frauds. Hacker can use
sensitive data of people while doing financial transactions. Besides this, insecurity of data and
information can lead to fraud (Penrose, 2017).
Thus, by using this tool Revolut ltd. was able to enter in European market. It enabled
them to grow and develop. By this Revolut ltd. evaluated its internal environment.
5 Analyse any actual or potential risks in the foreign market selected.
The market in which in Revolut ltd. operates contains a lot of risk that can affect its
growth. Also, it will affect other companies that are operating in this sector. The major risk that
Revolut ltd. can face is change in policies related to banking transactions (Goetz, Laeven and
Levine, 2016). Besides this, due to continuous technological advancement Revolut ltd. Have to
face issues regrading online exchange of currency. This will force company to make changes in
their systems or develop strategies appropriate measures can be taken to minimise risk. Along
with this, there is risk of cyber crime attacks that can affect growth of Revolut ltd. this is a major
risk that company can face. People can hack data of customer will deal in financial transactions.
There are chances of having fraud with people. It means if card are delivered to wrong people it
can be used wrong means. In the app if customers wants to block card or cancel the order they
can not do it because company doesn't allow it. Due to bad security app may be unable to protect
data from theft (Johanson and Mattsson, 2015).
6 evaluate the mode of entry for the firm.
Revolut ltd. can grab the opportunities that will help them to grow in European market.
They can enter in market by implementing strategy of market penetration (Love and Roper,
2015). In this company enters in new market with new product. Revolut ltd. is also introducing
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new product in European market. It is a golden opportunity for Revolut ltd. to grow as no other
company is providing services similar to Revolut ltd. it will help Revolut ltd. to attract large
number of people. By this they can earn more profits and gain market share.
Revolut ltd. can overcome risk by taking appropriate measures. They can develop strong
policies and procedures for delivering cards to right people. Also, Revolut ltd. can implement
firewalls and security measures so that it can reduce the chance of fraud. Moreover, Revolut ltd.
can expand it Europe by developing a centralised transportation system that will help in tracking
of card. This will be easy for company as well customers to know in how much time card will be
delivered (Dai and et.al., 2014).
7 Critical analysis of relevant management responses that are been under taken by Revolut Ltd to
gain good access to the opportunities offered by the market in Europe.
Various measures are been taken in the consideration by the digital banking firm that will
help in suitable rise in compatibility that has impacted the business operations of the company on
a larger level (Laufs and Schwens, 2014). Various issues have occurred on the operational front
of the company and thus, vivid measures are been taken by the organisation that will help in
suitable operations that will support a good rise in operational capability of the organisation.
Some major factors that are been taken in consideration are:
 Human resource: with the foreign penetration of the market, the firm has to see through
the effective management of operations that will cause the firm to carry out its operations
in a better way. But on the initial stage, the HR department of the firm has to face the
problems related to the language, training methods, working principles and socio cultural
issues that have impacted the performance of the firm. The firm mitigated and covered
this approach by the means of different operations like providing the suitable training to
the employee's, getting an interpreter to facilitate the effective and better communication
between the employee's and the management of the banking firm.
 Operational functions: this factor is based on the working environment of the company
that will help in suitable rise in the operations that will cause the firm to gain a good
productivity and meeting of targeted goals of the cited business organisation. The various
drawbacks in the system of the working of organisation were identified and are removed
or controlled to improve the firm's efficiency and gaining of the cited business goals and
objectives in a foreign market (Knight, 2015).
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 Marketing: the firm, has to opt and implement a good and innovative approach of
marketing that will help in suitable rise in functional capability of the organisations and
thus will see through the better growth of potential customer base of the company. A
good marketing strategy will help the organisation that will support Revolut Ltd to
identify and meet their potential customer's needs and demands and generate a reasonable
amount of revenue.
 Cross cultural issues: different cross cultural glitches are been identified by the firm that
will impact the operational capability of the firm. As the company is moving into the new
market, the firm has to see through the better management of the business actions and
their rectifications to meet the functional capabilities of Revolut Ltd. As the company's
work culture will be different from that of the target foreign country, this will impact the
operations that will cause the firm to slow down. Thus, the digital banking firm will look
after it and handle the business operations in a better way(Laufs and Schwens, 2014).
CONCLUSION
Thus, this can be said that the proper measures are required to be taken by the business
operations that will help the organisation to effectively enter into the market and meet the
operational requirements of the organisation. To penetrate in a foreign market, certain factors are
meant to be analysed that will help in suitable rise in operational capability of the organisation.
The banking firm like Revolut Ltd will see through the better rise in operational capability.
Various measures will be taken by the firm that will cause the business organisation to grow and
develop and meet the functional capability of the organisation that will support good rise in
functional capability and meeting of targeted goals and operations by the firm.
The effective measures that are been adopted by the firm will support a good rise in
functionality of the operations that are been taken in the organisation for a good entry mode in
foreign market. The organisation will see through the good range of preventive measures to
utilize the available opportunities and handle a wide range of actions to meet the functional
capability of the firm. Other than this, a good range of operations will be taken by the
organisation that will support a good rise of functional capacity of cited digital banking firm.
Other than this, the assessment of the different elements like human resource, marketing,
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organisational activities and cross cultural activities that are been followed by the firm to
effectively penetrate in foreign market.
RECOMMENDATION
Proper recommendations are been taken by the firm that will help in suitable
management of the operations that will support an effective growth of the operations. These
recommendations will support a better rise in the operational functioning of the organisation and
will support its sustainability on a foreign market place (Altbach, 2015.). Other than this, the
using of these measures will support a good rise in the productions and revenue generation of the
firm that will facilitate a good rise in actions and business activities of Revolut Ltd. Some major
recommendatory actions or measures that are been taken in consideration by the firm are:
 Adoption of the activities that will support a good communication with the work force
will support better rise in operational capability of the organisation. An effective and
interactive interaction process will help in suitable growth and development of the digital
banking organisation. It will also help in good rise and improvement of the actions and
handle the entry mode measures in a much effective and better way.
 Proper training and skill improvement measures will be taken by the firm that will not
only help in good management of the operations, but will also help in increasing
efficiency of the firm. To meet the needs and demands of customers in foreign market,
company will require a skilled labour force that will help the firm to meet the needs and
requirements of the users in a better way. Other than this, it will support a good
improvement of customer satisfaction level in foreign market.
 Advance technologies and marketing strategies can be drafted by the firm that will
facilitate a good foreign market penetration and engagement of the activities that will
help in suitable rise in operational capability of the organisation. The utilization of
advance technologies will help in proper rise in functional capability of business
enterprise and thus will see through fulfilling the requirements of the customers in a more
innovative manner by meeting the requirements of the business organisation as well as its
customers in European market (Tuschke, Sanders and Hernandez, 2014). Other than this,
the adoption of the latest tools and measures will improve effectiveness of the operations
performed by Revolut Ltd.
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 The HR department of firm can look after the proper interaction and team development
approaches that will facilitate a good handling of business activities and develop a better
understanding between the employee's from different socio cultural background that will
help in suitable rise in operational capability of the organisation and efficient meeting of
targeted goals and objectives of the firm (Dunning, 2015).
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REFERENCES
Books and Journals
Knight, J., 2015. Internationalization brings important benefits as well as risks. International
Higher Education, (46).
Dai, L. and et.al., 2014. Entrepreneurial orientation and international scope: The differential
roles of innovativeness, proactiveness, and risk-taking. Journal of Business
Venturing, 29(4), pp.511-524.
Johanson, J. and Mattsson, L.G., 2015. Internationalisation in industrial systems—a network
approach. In Knowledge, Networks and Power (pp. 111-132). Palgrave Macmillan,
London.
Penrose, E.T., 2017. Foreign Investment and the Growth of the Firm 1. In International
Business (pp. 33-48). Routledge.
Fillat, J.L. and Garetto, S., 2015. Risk, returns, and multinational production. The Quarterly
Journal of Economics, 130(4), pp.2027-2073.
Bartlett, C.A. and Beamish, P.W., 2018. Transnational management. Cambridge University
Press.
Hull, J.C. and Basu, S., 2016. Options, futures, and other derivatives. Pearson Education India.
Boddewyn, J.J., 2015. Political aspects of MNE theory. In The Eclectic Paradigm (pp. 85-110).
Palgrave Macmillan, London.
Hitt, M.A., Li, D. and Xu, K., 2016. International strategy: From local to global and
beyond. Journal of World Business, 51(1), pp.58-73.
Goetz, M.R., Laeven, L. and Levine, R., 2016. Does the geographic expansion of banks reduce
risk?. Journal of Financial Economics, 120(2), pp.346-362.
Love, J.H. and Roper, S., 2015. SME innovation, exporting and growth: A review of existing
evidence. International small business journal, 33(1), pp.28-48.
Laufs, K. and Schwens, C., 2014. Foreign market entry mode choice of small and medium-sized
enterprises: A systematic review and future research agenda. International Business
Review, 23(6), pp.1109-1126.
Altbach, P., 2015. Knowledge and education as international commodities. International higher
education, (28).
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Tuschke, A., Sanders, W.M. and Hernandez, E., 2014. Whose experience matters in the
boardroom? The effects of experiential and vicarious learning on emerging market
entry. Strategic Management Journal, 35(3), pp.398-418.
Dunning, J.H., 2015. Reappraising the eclectic paradigm in an age of alliance capitalism. In The
Eclectic Paradigm (pp. 111-142). Palgrave Macmillan, London.
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