International Business and Globalization: A Case Study of Bristol Energy's Expansion into Sweden

This report discusses Bristol Energy's expansion into Sweden and the importance of international business and globalization in the energy industry. It includes an analysis of the external environment using PESTLE and Porter's 5 forces model. The report also provides an overview of the energy industry in the UK, the prevailing drivers of international business, and the internal and external environment of Norway and Sweden. The report concludes that Sweden is the best market for Bristol Energy's expansion.

International Business
and Globalization

EXECUTIVE SUMMARY
The basic aim of this report is to highlight the various decisions and considerations that
are in play when a country decides to expand it's business concerns and facilities overseas. The
file was done in the operational context of Bristol energy and the role and importance of
international trade and energy sector was mentioned to make an positive case to justify it's
reasons for expansion. Various models like PESTLE and Porters five forces were used to
compare and contrast between regions of Sweden and Norway for purpose of expansion and
ultimately, Sweden was chosen as the penultimate option.

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Company Overview....................................................................................................................4
The global energy industry..........................................................................................................5
The importance of global trading................................................................................................5
International drivers of trade.......................................................................................................6
Overview of Sweden...................................................................................................................6
Overview of Norway...................................................................................................................7
External environment analysis using PESTLE...........................................................................8
Entry into Sweden.......................................................................................................................9
Competitive Forces ..................................................................................................................11
Porters generic strategy and the Ansoff matrix.........................................................................12
Entry Mode and Market Selection............................................................................................13
CONCLUSION .............................................................................................................................14
REFERENCES..............................................................................................................................16
APPENDICES...............................................................................................................................17

INTRODUCTION
The modern business landscape has changed considerably in the last few decades and the
lucrativeness and ease of conducting trade on an international level has never been more easier.
The countries and international borders have been blurred as the world has become one giant
connected business hub thanks to the process of Globalization which has made the international
movement of products, services, technologies and manpower seamless (Ansari, Akram, and
Haider, 2022).
This report will highlight the importance and impact of global trade along with a brief
overview of the energy industry in the UK and the prevailing drivers of international business
which can influence and help Bristol Energy expand it's operations by tapping into new markets
in foreign lands. This report will analyse the internal and external environment of Norway and
Sweden and suggest best method of entry into the country which is best suited for Bristol energy
to expand and conduct energy operations in.
MAIN BODY
Company Overview
The energy industry in UK is quite big in operational scope as according to the UK trade
association, this sector employs approximately 738,000 people and receives consistent yearly
investment from the government close to 13 Billion pounds to provide power and energy to more
than 25 million households which is why it is a hot market segment full of competition and
major players (Menon, 2022).
One of these major players include Bristol Energy which is a municipality company
owned by Bristol city council and was found in 2015 and it deals with the supply of energy to
various businesses and households in UK. The company had posted healthy revenue figures
close to 76 million pounds as of 2019 and approximate net income of 10 million pounds before it
was bought and became an energy supplying brand working under Together energy in 2020.
The company is prime for expansion abroad as energy industry is one of the most
valuable sectors in international trade economy and futuristic clean energy options will shape the

way people lead lives and companies conduct business going forward which makes an
investment to become a trusted multinational supplier of energy will prove to be a lucrative offer
for Bristol energy going forward as post Brexit UK is no longer sufficient and big enough for all
energy companies to function and be profitable together.
The global energy industry
As the world is slowly recovering from the COVID-19 pandemic and we are in the
second year of the virus plunging global trade in it's wake, the growth and demand for energy is
slowly stabilizing and future is not looking grim any more. After a disappointing 2020, the mass
scale vaccine roll-out in many countries and all the economic solutions injected in the domestic
economies to combat the pandemic has made the energy sector rebound and it has displayed
major spikes in profit and consumption (Palit, 2022).
By closely analysing the distribution of renewable energy consumption around the world,
the picture is once again dominated by China however Sweden turns out to be an outlier as for a
country of it's size and stature, it has made major strides in the field of clean and green energy.
The importance of global trading
Thanks to the rampant effects of globalization, cross border trade has enabled many
people to get quality employment, has raised the standard of living globally and it has also been
the reason due to which entrepreneurship is booming and there is an abundance of million dollar
businesses in every major region. Global trade has various advantages listed herein.
 Cross border trading allows a country to make use of the extra natural resources that are
abundant in it's domestic territories and gain profitability and regional significance. For
example Sweden for it's timber and iron ore and Norway for it's mineral fuels.
 Global growth and fiscal development is thoroughly facilitated through international
business as the balance between the imports and exports of a country determine it's
strength of economy (Ikechi, Chinedum, and Nwokoro, 2022).
 Countries and companies are able to tap into new and developing markets worldwide to
attain greater reach and revenue and benefit from economies of scale and specialization
which Bristol energy aims to do.

International drivers of trade
There are many important considerations and driving forces which Bristol Energy has to
carefully navigate around and keep in mind while planning about expanding it's global
operations such as:
 Cost considerations – Bristol energy will benefit very well from the increased scale of
energy production and distribution globally as there is much more demand in other
countries for clean solutions and the cost of production is cheaper than UK in Sweden
and Norway.
 Level of competition – UK's energy industry is quite robust and saturated and the market
has many major players which have sucked the profits dry as no one is really innovating
after Brexit. Other foreign markets where Bristol can enter are much brighter prospects.
 Market prospects – Entering new territories in the EU after Brexit will be a chance for
Bristol Energy to better relations with neighbouring countries and increase their stature as
a energy supplier in UK.
 Government regulations – The suggested countries where Bristol energy can expand
into are all governed and subject to their own political rule which will be duly complied
and considered before the target market is tapped for business.
Overview of Sweden
Sweden is a Nordic country in northern Europe is a part of the European Union which is
a international block of 28 countries situation in the broad region of Europe and despite it's
relatively small size and minimal impact on the trade region and blocks in Europe and globally,
it is a relatively rich country, ranking in at the 16th most wealthiest country and has a robust GDP
of $612 billion as of 2021. It has an approximate labour population of 5,500,000 and an
employment rate of 82% which are remarkable conditions for a small country (Gola, and
Noussia, 2022).
For Bristol energy, Sweden can be a very lucrative market for expansion as the country
ranks fairly high at 10th position at the ease of doing business scale and has an untapped but
highly productive energy industry which benefits from the country being highly educated and a
hub for innovation.

Illustration 1: Financial freedom of Sweden, 2022
Overview of Norway
Norway is also a Nordic country in northern Europe and despite being in close relation
with rest of the countries in the European union, it is not an official part of the block but the
country is an important part of the global economy and the European region as it is highly
productive and on a per capita income basis, it ranks 4th in the entire world. It's GDP figures are
also quite robust clocking in at $ 366 billion as of 2020 and it ranks super high on the human
development index.
Norway is a natural fit for Bristol Energy when it comes to global expansions as the
country is a hub for intelligent and creative methods of production and when it comes to the
energy industry, it has huge natural reserves for petroleum and natural gases and it is the world's
largest producer of oil and natural gas which is perfect for Bristol's fuel mix energy services.
Illustration 2: Financial freedom of norway, 2022

External environment analysis using PESTLE
The external environment that persists in both Sweden and Norway are to be closely
analysed and contrasted together with the help of a PESTLE framework which is an important
management tool which helps thoroughly research the various dimensions of business
environment to find the best market ripe for expansion of Bristol energy. The detailed PESTLE
analysis of both countries are stated herein.
 Political – The constraints and policies placed by local authorities and governments on
businesses can affect their expansion plans and the rate at which they grow their business
after establishing their new base of operations (Kamarudheen,and Bhaskara Rao,2022).
Norway is behind Sweden in many important government metrics as Sweden ranks much
higher in ease of doing business and trade friendly surveys and indexes.
 Economical – The prevailing economic conditions in both countries will play a major
role in making Bristol Energy decide where to enter with priority as a robust economic
and fiscal conditions and high disposable income helps firm grow faster and obtain
economies of scale (Li, 2022). Sweden is once again much higher than Norway in terms
of GDP, per capita income and national debt percentage of 35.1 as compared to 41.4.
 Social – The cultural change has been embraced in a much healthier and modern manner
by the population of Sweden as it maintains one of the highest life expectancies in the
world for both genders and it a very socially rich nation and tolerant nation due to it's
super high rate of literacy and it also has an efficient and better healthcare system than
Norway (Termkolli, Erdenberger, and Heupel, 2022). Norway is also in a similar boat
but the Nordic culture and customers are followed much more rigidly there.
 Technological – The existing industrial technology in use also forms a big factor as the
energy operations of Bristol Energy are fully sustainable and clean and it requires
technologically advance countries to grow to their potential. Sweden is one of the world's
leaders in clean energy solutions and it has more consumption demands of energy than
it's neighbours like Norway which focuses on traditional fuels instead.
 Legal – The existing labour laws and legal ramifications of business operations has to
carefully considered by Bristol energy as the sector in which it operates directly affects
the lives of people and is strictly regulated as a result. The laws of Norway are stricter in

comparison and focus on worker productivity while Sweden prioritizes the relationship
between the workers and their union and management.
 Environmental - Bristol Energy is unique in it's energy solutions as it is 100%
sustainable and focuses on going fully green in it's energy production and distribution
routines and Sweden matches this vision perfectly as it the world leader at clean energy
consumption and 54% of it's energy comes from clean sources. Norway on the other hand
focuses on specialising in petroleum and natural gases because of their abundance which
is effective but very harmful to environment (Ekman, Dahlin, and Keller, 2022).
Entry into Sweden
By carefully analysing the above done PESTLE analysis and grading both the countries
according to the contrast present in their respective business environment dimensions, Sweden
proves to be a much better and lucrative market rich with opportunities for expansion by a
company like Bristol Energy for the following reasons:
 Despite it's size, the economy of Sweden is much more robust than Norway or any
untapped and small European market as the standard of living and disposable income is
more than enough for Bristol energy to prosper.
 Sweden has a massive appetite for clean energy solutions and environmentally friendly
services which is the USP of Bristol Energy as the entire energy distributed by it is
completely renewable and it can satisfy the great demands of the people of Sweden.
 The ease of doing business in Sweden is much higher than Norway and the government is
much more lenient to multinational companies and it has been steadily improving in this
regard over the recent years as it has not slipped in multiple global ranks like Norway.

Illustration 3: GDP of Sweden 2022
Illustration 4: GDP of Norway 2022
Competitive Forces
Before entering any new market or a business venture, it is very important to understand
the prevailing conditions in that industry and evaluating the current developments of business
parties operating in a particular region like Bristol needs to do in Sweden with the help of
Porter's 5 forces model. This model was developed by Michael Porter and is a widely used
analytical tool which helps in determining the amount of competition and freedom that a
business can have in a region and industry (Martek, 2022). This model has been applied below
in relation to Bristol Energy and Sweden.

The threats of:
 New Entrants is low as the energy sector demands large amount of investment and
Sweden is technically advanced and developing a edge in the market is not easy.
 Available substitutes is moderate as despite Sweden having quite a few players in the
energy industry, clean solutions are not being distributed properly by everyone.
 Buyer power is moderate as clean energy solutions are mostly priced with a fair profit
margin but due to high rate of literacy, businesses cannot get away with differentiation in
pricing and high electricity rates.
 Supplier Power is high as developing clean and sustainable energy is a complex task
requiring procurement of a lot of technically advanced materials and Bristol Energy will
need to partner up and establish a brand new supplier network for distribution processes.
 Existing competition is high as there many competent companies working towards
making Sweden and it's energy needs renewable and affordable such as Biond and
Swedish Biofuels.
Porters generic strategy and the Ansoff matrix
Porter's Generic strategy
 Cost leadership- This applies all the effective cost management in the work and the
company through general market and industry. As this can be enhanced through
enhancing the profits and also by managing the average industry prices.
 Differentiation- This involves all the unique ideas and the innovation with which the
dimensions in the market and the product and market can be made. It helps in perceiving
the positions thorough which the new variety of products are introduced in all the
premium pricing.
 Focus- This provides all the competitive scape in the company where the cost focus
manages all the advantages of cost through different target segments and the
differentiation focus provides the uniqueness in the target segments. Both attributes to
apply various segments in the company and also to maintain the growth in the variable
nature and areas (Filstad, 2022).

Bristol energy in order to manage the expansion globally in Sweden can opt the cost
leadership strategy with which they can manage the command over their pricing on the industry
average and be able to maintain their performance.
Ansoff Matrix
 Market Penetration-It involves all the increase in the sales of the products in the
existing areas of the market and also by managing with the same products and services
 Product Development- In this strategy the company can manage the effective growth
through development of new products by the organisation in all the existing market areas.
 Market development- This use to focus on manning the expansion or entry in all the
new market or can also be said as the global expansion in the foreign market with same
products and services given over there. In order to gain more productivity.
 Diversification- This involves all the new market with their general introduction in the
new market segments. This provides all the highest risk feature through which all the
market is applied with all introduction of new products.
From all these above strategies their can be seen that Bristol in order to expand in
Sweden can apply the market development strategy though which all the growth in the new
market areas and their expansion can be farmed and managed.
Entry Mode and Market Selection
Internationalisation involves all the adaptive strategy for management of global
integration in which their applied the sustainable advancement and the functional manufacturing.
This is the important concept in which all the gaps in the countries and their effective culture are
affixed. It provides all the international cultures and their methods through which the company
can make their further expansion and can also opt some strategies through which growth and the
advancement can be gained. As in context to Bristol Energy some of the main modes which can
be opted are like: Licensing- This is mainly a business arrangements in which the company y in ordered to
mange their expansion mandates and authorize their access temporarily to the other
company or market segments. It provides temporary availability of the rights of
intellectual property which complies all the brand name, manufacturing process,
trademark, copyrights and many more. In order to manage the affective business

functioning their requires to have the issuance of the licences in all the intellectual
property right. This gives all the intangible assets and the business alliance. Majorly all
the overseas company manages the licensing agreement though their specifies areas and
the working time in which they follow all the international expansion and also effective
commercialisation with optimised new technology. Bristol energy in order to expand in
Norway and Sweden by giving the major authority and the license to be managed over
the other areas for particular time period. Joint Venture-The arrangements of setting the business altogether in order to manage all
the resources and also in accompanying all the task. This implicates the subsequent
setting up of any business to be managed altogether with their general legal structure.
This is majorly being used in order to expand any business in the foreign markets. It is
majorly a corporation with general business entities so as to mange the corporation and
the combination of all the small, large and other projects. All those business which
complies the main strategies in which they maintain the liability and the ways through
which the expansion are framed. Bristol energy can eventually maintain all the laws and
the subsequent method in which they can opt too be the part of any joint venture with
which they can easily opt and manage to enter in the foreign market.
 Franchising-This is the framework in which effective marketing strategies are opted
though which all the distribution and the running of the business is laid by the group of
people. In this the rights is been given to the people to run the business and also to
manage the trademark, branding and also to make the agreement through which
engagement of the business function is expansed and grown. Bristol can give their
franchisee to any individuals in order to m manage the functioning to be framed in proper
manner (Elsayed, and et. al., 2022).
It is recommended that the Bristol energy in order to opt and manage the growth in
Norway and Sweden can eventually apply the licensable in order to manage growth and further
expansion as by drawing and giving the access for the temporary time period in order to gain
growth of the company. This will helps to make the expansion globally with all the revenue
generation and advancement.

CONCLUSION
The above concluded report went into detail regarding the various ins and outs of global
business expansion and the rigorous and complex process of international business proceedings.
Bristol Energy, a UK clean energy company was thoroughly analysed along with a brief outlook
on the global energy industry and it's scope for expansion. The importance of global business for
companies an countries alike was also discussed along with the various drivers of international
trade that influence a company's decisions to expand it's operations abroad. Norway and Sweden
were chosen as two countries to expand into and their market conditions were contrasted using a
PESTLE analysis and Sweden was chosen as a much better option. Methods of entry into the
market and various models were used to chose the best possible course of action for expansion.

REFERENCES
Books and Journals
Ansari, M.A., Akram, V. and Haider, S., 2022. A link between productivity, globalisation and
carbon emissions: evidence from emissions by coal, oil and gas. Environmental Science
and Pollution Research, pp.1-18.
Ekman, P., Dahlin, P. and Keller, C., 2022. Management and Information Technology After
Digital Transformation. Routledge.
Elsayed, and et. al., 2022. Dependence structure and dynamic connectedness between green
bonds and financial markets: fresh insights from time-frequency analysis before and
during COVID-19 pandemic. Energy Economics, p.105842.
Filstad, C., 2022. Police Leadership as Practice. Routledge.
Gola, S. and Noussia, K., 2022. From CO2 sources to sinks: Regulatory challenges for trans-
boundary trade, shipment and storage. Resources, Conservation and Recycling, 179,
p.106039.
Ikechi, K.S., Chinedum, A.H. and Nwokoro, N.A., 2022. Trade Relations and Trade Openness
amongst the ECOWAS Member Nations. International Journal of Management Science
and Business Administration, 8(2), pp.33-47.
Kamarudheen, N. and Bhaskara Rao, K.V., 2022. Isolation of Actinobacteria from Sponges. In
Methods in Actinobacteriology (pp. 23-26). Humana, New York, NY.
Li, H., 2022. Rapid Isolation of Functional Synaptic Vesicles from Tissues Through
Cryogrinding, Ultracentrifugation, and Size Exclusion Chromatography. In Synaptic
Vesicles (pp. 121-130). Humana, New York, NY.
Martek, I., 2022. International Construction Management: How the Global Industry Reshapes the
World. Routledge.
Menon, J., 2022. Multilateralising Regionalism: The ASEAN Experience. In Globalisation
Impacts (pp. 145-158). Springer, Singapore.
Palit, A., 2022. Revisiting Globalization: A Post-COVID19 Perspective. In Globalisation
Impacts (pp. 25-42). Springer, Singapore.
Termkolli, A., Erdenberger, C. and Heupel, T., 2022. Chancen und Risiken der E-Mobilität für
den Einsatz von Nutzfahrzeugen in der Entsorgungswirtschaft. In Bioökonomie (pp.
365-381). Springer Gabler, Wiesbaden.

APPENDICES
 Financial Freedom
 GDP
Illustration 5: financial freedom of sweden, 2022
Illustration 6: financial freedom of norway, 2022

Illustration 7: GDP of Sweden, 2022
Illustration 8: GDP of norway, 2022