International Business and Globalisation Impact on Avro Energy: Opportunities and Threats

International Business
and Globalisation-
EDF UK

Table of Contents
INTRODUCTION ..........................................................................................................................2
TASK ..............................................................................................................................................3
Avro Energy Ltd. Overview:..................................................................................................3
The Global Energy Indusry:...................................................................................................3
Importance of Global trade:....................................................................................................4
International drivers:..............................................................................................................5
Expansion opportunities in Europe:.......................................................................................5
Russia overview-...........................................................................................................6
France Overview-..........................................................................................................7
External environment PESTLE:.............................................................................................8
PESTLE analysis - .......................................................................................................8
Entry into Russian Market:...................................................................................................10
PORTER'S Five forces Model:............................................................................................11
Porter's generic forces:.........................................................................................................12
Ansoff matrix:......................................................................................................................13
Entry mode and Market Selection:.......................................................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................14
INTRODUCTION
Globalization forces are not only not affecting and influencing our daily lives but they are
also evidently visible in the sphere of international business. The rapid economic liberalisation in
the fields of carrying out trade and investments has been a driving force behind the process of
globalization. Markets are now flooded with global industrial goods due to the ease in the import
and export that is carried out between the countries. Integration of the markets has also led to

mobility of people when they travel internationally. This is driven by the global reach of satellite
channels and the increased use of internet which has helped the world to become a global village.
Globalization not only poses great challenges for business entities but also provides and opens
new opportunities for them. International business has helped them understand the global needs
and requirements of the customers. UK now has a global market where its business ventures can
carry out trade deals(Kharat, 2019). This report will analyse in detail the international business
and globalization impact with respect to Avro energy company. It shall also study the
opportunities it has and the external factors that pose threat to the company.
TASK
Avro Energy Ltd. Overview:
Avro energy Ltd. Is a company of Britain which carries out its operations with respect to
supply of energy. The company was founded and launched in the year 2015 to challenge the
existent big energy supplier company by the name of Big Six that was dominant in the energy
market. The managing director of Avro energy is Jake Brown. The company is currently located
in Brighton, United Kingdom. The energy company is regarded as the part of the Metal and
Mineral Merchants Wholesaler industry. The company thus operates as a supplier of gas and
electricity. The company generates around $ 490 million in its sales that it carries out in UK.
But the company ceased to trade in september due to which Ofgem appointed Octopus
Energy to take on the supply of Avro energy's domestic customers (Rugman, 2019).
The Global Energy Indusry:
According to IEA research, the global demand for energy is expected to increase by around
4.6% in the year 2021 which has pushed the demand for about 0.5% above the 2019 levels
that were recorded. From the overall projected increase around 70% of global energy
demand is expected to be in the markets that are emerging and in the developing
economies of the world. Whereas with respect to the advanced economies the energy use
there will be 3% below the levels that were in the pre covid period.
With respect to the demand for natural gas it is set to increase and grow in 2021 by
around 3.2%. Around three fourth of the growth in the global demand in 2021 is from the sectors
that are in the industry and buildings area while with respect to the generation of electricity from

the area of natural gas it remains below the levels that were in 2019. Moreover the demand of
electricity was due to grow and increase in 2021 by around 4.5%. and the 80% demand in this
from the emerging markets and developing economies (Global Energy Review, 2021).
Importance of Global trade:
Global trade helps the wealthy and elite countries to make the usage of their reasources
like technological advancements, labour force, capital in a more efficient manner. The countries
which have the advantage of producing the same kind of good in an efficient manner with low
cost, they may sell the good in a cheaper manner than the other countries. And those countries
who do not have the resources to produce such goods they may obtain those goods from another
country through international or global trade. It is thus regarded as global trade (Gorynia, 2019).
Thus, global trade among the different nations an essential factor which is helping to
raise standard of living, providing opportunities in employment and helping consumers to enjoy
unique types of goods. International trade has become very important due to its increasing share
in the GDP that is due to the high exchange in imports and Exports.
It is visible from the above graph that the world exports role in the percentage share of
GDP has increased due to it.
Global trade helps in making use of the abundant raw materials that are available with
some countries like oil and metals from Qatar, etc. Without trade it is impossible for these