International Business Expansion of Davison Canners: Strategies and Barriers

This report discusses the international business expansion of Davison Canners, a UK-based fruit products manufacturer, and the strategies and barriers involved. It includes an overview of the organization, the chosen country for expansion, relevant theories and models, barriers faced, and execution methods for internationalization.

International
Business

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of chosen organization and rationale for going international......................................1
Chosen country to recommend the business to enter...................................................................1
Relevant theories or models linked with process of international market selection and an entry
strategies........................................................................................................................................
......................................................................................................................................................1
Barriers faced by organization to expand business internationally.............................................1
Relevant execution methods for an internationalization process for the target market...............1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
An international business can mainly defined as the trade of services, goods, technologies
as well as the knowledge within the national borders and across the globe or it can be on a
international scale as well. It can include the cross-border transactions of services and goods
among two or more countries. The international business generally have various aims and
objectives and each of the objectives can enable the organization to effectively enhance its
productivity (Cerar, Nell, and Reiche, 2021). The Davison family generally grew and harvested
their first crop of the Irish Bramley Apples. In this, from 40 years and with having 120 acres of
an orchards as well as are most currently celebrating the opening of the brand with having a new
grade AA BRC accredited facilities in the factory in year 2014. The Davison has generally
grown as well as flourished among one of the leading fruit creators as well as the innovators
across UK. In this report, there is a discussion about an organization such as Davison Canners
which is located at UK and involving the fruit products such as jams, fruit compotes, curds, jams,
syrups, processed apple Products as well as various desserts as well.
The report can involve a test model of the country's choice, an assessment of the two or
more countries as well as in additional the tips when it comes to the choice of US. It can involve
the political harms which can make influence the lifestyle, ethics and so on. In addition to this, it
can involve evaluation of various frameworks such as the PESTLE analysis and Porter's five
forces. In addition to this, it can involve several input methods which can be used by the
enterprise for its internationalization approaches to better understand.
MAIN BODY
Overview of chosen organization and rationale for going international.
Above 40 years ago, the Davison family generally grew as well as are harvested their
very first crop of Irish Bramley apples. With several years, having above 120 acres of an
orchards as well as the brand new grades AA BRC specifically accredited factory can
specifically facilitate on the websites (Christofi and et. al.. 2021). In this, the family firm has
mainly grown into one of the leading most creator more specifically within fruits, jams, fruit
compotes and the bakery fillings within United Kingdom. Additionally, earlier several years, the
Davison has grown to meet the altering requirements of the consumers as well as are wide-
ranging to stay ahead of the food trends as well. In addition to this, while being founded
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organization, it will still remain one of the most innovative within the enterprises. Though, the
roots can be in an apple enhancing as well as processing, the business has generally categorized
out within a various exciting regions with having the range of the product can be extending the
years after the years to meet the needs of the consumers. The products can involve the products
such as jam, sauces, fruit compotes, fillings, processed apple products as well as the variety of
desserts. And when it can comes towards the tasty and creative ideas and innovations, the
organization in specifically packed with various effective notions. Furthermore, the team of the
company is mainly aim to provide their consumers with the great sweet and a savoury creations
as well (Fainshmidt et. al.. 2020).
Enhancing the demand: In this, within an enhancement in the services, the availability
of the products as well as the consumer demand within the market across globe, there are
generally various opportunities among an international marketplace. The administration can
round the free trade guidelines across world to encourage the commercial business, can
communicate as well as the effective lifestyle internationally have mainly expanded the various
consumers across the nation (Hult, Gonzalez-Perez and Lagerström, 2020). It is because of the
unavailability of the products and services in the areas. The Davison Canners has specifically
observed the approaches to effectively boom its presence within an extraordinary countries
around the region.
Chosen country to recommend the business to enter.
Within the United States, there are generally a lot of the chances for an organization such
as Davison Canners to enhance its products and services such as the UK based makers of
compotes and jams, generally has been launched a dessert variety after receiving the financing
from HSBC to upgrade its premises. In this, the country which is being chosen for the expansion
of Davison Canners is generally the USA which can give an enhanced opportunities in order to
raise the huge numbers of its consumer (Lundan, 2018). The country is generally chosen because
it is mainly a form of an active global control which can evaluate the contributions towards
several performance attributes and can invest in an enhanced appearing food markets across
global. In addition to this, when it comes towards the selection of the United States, the analysis
can include several risks consisting the ethics, sub-culture and many more.
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Relevant theories or models linked with process of international market selection and an entry
strategies.
In this, an analysis of an international market can be done with the aid of the following
effective frameworks and are as mentioned below:
PESTLE Analysis:
PESTLE Analysis is generally an effective strategic tool which can aid to research the
workers macro environment components. The framework generally can represent the social,
political, monetary, environmental, as well as a technical factor that generally have a high
influence over the enterprise's macro environment. In addition to this, the specific adjustments
within the macro-environmental components generally involve a huge influence over the
company, but it can also impact over the various competitors within the organization as well as
the several products produced by these such competitors. In addition to this, the macro-
environmental components specifically make influence the five powers which can assist to form
an aggressive landscape the business of the Davison Canners and are such as:
Political Factor: In this, the political elements can specifically perform an essential
function in evaluating the components that can make an influence at the viability for a longer
duration within a marketplace across country (Luo, 2020). In this, there are various factors can
encompass the possible threats to the products and services of Davison Canners such as the
safety of intellectual property, trade limitation and many other.
Economic Factor: In this, it can carry out the components for simply for consolidating
the funding as well as the demands within an economy, collaboratively with having an
interesting prices, saving rates, business cycles, inflation over products and services and many
more. In this, various factors involving of competitive needs and inflation generally have a
distributed influence over the benefits of Davison Canners organization (McWilliam and et. al..
2020).
Social Factor: In this, the work and subculture of the worker has a substantial influence
over the environment of an organization in terms of demographics, public, work attitude and
various others.
Technology Factor: In this, the concept of technology which can alter more swiftly as
well as can make a huge influence at the manager of the organization. It can involve the pricing
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of the adoption of technology for product manufacturer, influence of technology on the transport
of product as well.
Legal Factor: In this, among USA, the legal frameworks and its establishment are
generally not adequate to defend a particular rights of a business's intellectual belongings. In this,
various factors can involve the protection of products, regulation of labour as well as its well-
being regulation. In context with Davison Canners, the manager of the company must adhere the
rules and regulations that are implemented by the country's administration.
Environmental Factor: In this, the environmental factors such as the distinctive market
generally have one of the kind standards as well as needs which can make a high influence over
the worker's benefit. In this, the possible environmental factors which can influence the Davison
Canners such as issues in packaging, using inadequate amounts of nutritional values within the
apple based products and many more.
Entry strategies
There are various entry strategies which Davison Canners use to expand their business in
USA or international market to meet their goals and objectives. They can adopt the most suitable
option and strategies after evaluating all effectively in order to increase their sale and revenue for
future development. The various entry strategies in context to Davison Canners are shown
below-
Joint Venture- It is the most effective method in which two or more companies work
together by bringing their resources together to conduct their business activities effectively.
Management of Davison Canners can use this by expanding their business operations in USA by
Joint venturing with another organisation with same product line which also seek to this explore
their business in order to meet their objectives or future growth.
Acquisition-This is a expansion strategy in which a company buy the shares and assets of
another company which offer same product and services to increase sale in new market or
country (Nambisan, Zahra and Luo, 2019). Entrepreneur of Davison Canners can use this entry
strategy by purchasing share of another company in USA who are ready to sell which helps the
company to stable their business by the name of it and achieve the goals effectively
Franchising- In this entry strategy two companies are agreed to conduct their work and
utilise their resources together to gain competitive advantage and maximise profitability. As
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Davison Canners can use this strategy by making agreement with another food company who
wants to expand their business operations in international market. This strategy helps both the
company to increase their market share by using strengths of each other and generating new
innovation in new market.
Licensing- It is most effective entry method in new market in this organisation have to
fulfil all legal process and formalities to take licence to operate their business operations from
government in particular country (Sharma and et. al.. 2020). Also they can take licence and
permission of another company In order to use their brand name, intellectual property rights and
trademark for their expansion. It helps the Davison Canners to operate their business under
proper guidance and attract large number of customers which already develop their trust for that
particular company.
As per above presented discussion, it has been concluded that Joint Venture is most
effective entry strategy for Davison Canners in which they find a company of USA which is
ready to collaborate with them to expand their business operations and work together by using
resources effectively in order to achieve the goals of both companies. It helps them to attract
large number of customers as other company has loyal customers base and use new ideas or
technology of Davison Canners to increase their profitability and market share.
Barriers faced by organization to expand business internationally.
There are various barriers have to be faced by Davison Canners to expand their business
internationally. These can be related to the legal aspect, trade, cultural issues, environmental and
other which impacted their business operations and productivity. Management of Davison
Canners have to conduct research about it and determine it before to handle all these barrier
effectively. All these have negative impact on the organisations which can be the reason of their
failure and affected their image in international market also. The various barriers in context to
Davison Canners are as follows-
Legal issues- It is most impactful barriers as every country has different rules,
regulations, tax policy, environmental law and many others which create problems for new entry
and Davison Canners to conduct their business in right manner (Shenkar and et. al.. 2020). As
management need to conduct research about various law such as employment law, food and
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safety law, consumer rights and other and conduct their practices according it in order to achieve
success in new market. Also they have to pay tax as per the policy of particular country in to
protect their image and business form legal case and other government penalties.
Cultural issues- This issues is related to the taste, preferences, market conditions, trends,
needs, demand and expectations of public of that country in which Davison Canners want to
expand their food business. It impacted the profitability and sales of company because of
difference in beliefs, culture, tradition, likes and dislikes of people in USA from UK so it make
difficulties to sell their same product in new market. It is huge possibilities for company as they
suffer form loss and failure because customers are not satisfied with the product, services,
marketing and other. Some time they did not understand customer needs because of language
and culture different which create problems for company to survive in new market.
Regulations, Tariffs and export fees– To operate business in new market, there is huge
requirement to full fill all legal process, registration process, and other which takes huge time
and cost. As management have to listed their company in another country market and registered
it in business law of particular country. Davison Canners, management have to pay tariffs and
export fees to sell their food product and services in new market which increases their cost and
reduces their profit margin. The exchange and inflation rate of a country is affected the
profitability and cash flow of company.
Relevant execution methods for an internationalization process for the target market.
To expand business in international market management of Davison Canners can use
STP model to set their target market in order to make effective marketing and business strategies.
STP is stands for segmentation, targeting and positioning which helps them to attract large
number of customers to meet their objectives that are as follows-
Segmentation- it is first stage in which management of company decided to set their
target customers on the basis of their age, gender, location , behaviour and other to increase their
experience (Verbeke and Ciravegna, 2018). The most perfect target segment for Davison
Canners to expand their business in USA. As they target people who belong to age group of 18
to 60 specially women and youth to provide their better quality product and services.
Targeting- Target segment for Davison Canners is decided first then they make plan to
chose perfect place, strategy pricing policy of their product so every customer can reach or buy
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food product at affordable price. It helps the company to make better connection with customers
which increase their profitability and customer base for long term.
Positioning- In positioning professionals of Davison Canners have to improve the
quality of their product and services as well as modified it as per customer demands in particular
country to increase their experience and achieve their goals as they can use digital marketing for
promotion and better quality of raw material for product to add value for customers.
 By using various innovative approaches for the international process Davison Canners
can expand their business in other country successfully.
 As they can modify their way of working and introduce their business online by
developing their website and app so people can buy their products at home. They can also
implement online payment system in their website so people can attract towards them and
purchase their products which leads to increase in their profitability and brand value in
international market (Witt, 2019).
 By using advance digital marketing tools for promotion they can spread awareness about
their new online business and payment services globally which helps them to gain
competitive advantage over competitors.
CONCLUSION
As per above presented information, it has been concluded that a company can expand
their business in international market to increase their sales and profit. There are various entry
strategies which the company can use such as joint venture, licensing, franchising and other to
expand their business international. They have to faced many barriers such as legal issues,
cultural issues and export cost while expanding their business in new market and country. The
most effective approach to expand business internationally is they can use digital technology and
online business platform to meet desired result.
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REFERENCES
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466.
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Shenkar and et. al.. 2020. National culture and international business: A path forward. Journal of
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Verbeke. A. and Ciravegna. L.. 2018. International entrepreneurship research versus
international business research: A false dichotomy?. Journal of International Business
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