Investigation regarding various modes for business expansion

This report investigates the various modes for business expansion at international level, focusing on 4Com Plc's expansion into Romania. It explores the benefits, challenges, and growth strategies for the company.

Entrepreneurial
Research and Proposal

Title: Investigation regarding various modes for business expansion
Introduction
In the present competitive environment, it becomes essential for each and every business
entity to expand their business operations at international marketplace so they will be able to
grab ample number of opportunities. Along with this, by doing business expansion at global level
company will be able to enhance their market share and leads towards rise in profitability and
revenue of the organization at competitive marketplace. There are different types of entry mode
which assist in doing business expansion at international market place in an effective and
appropriate manner. In the present report, 4Com plc is chosen as the base organization. 4Com
was founded in the year 1999 with a main aim of enhancing the communications system of UK’s
SME market. At the initial stage company was based in Salisbury and the current Headquarters
of the company is located in Bournemouth, Dorset. Managers of the company decide to do
business expansion at new marketplace which is Romania. For this, a market research is required
to be conducted by the higher authorities related to the entry modes, growth strategies along with
external market analysis. This will assist them to examine the suitable entry mode which can be
used by the management team. At the end of this report, suitable recommendations are going to
be given by the researcher to management team of the company.
Research Aim:
To analyze effective models and theories for expanding business operations at global level. A
study on 4Com plc in UK
Research objectives:
 To identify the ways for expanding business operations at international level.
 To determine the benefits of expanding business operations at global level i.e. Romania.
 To determine the challenges present at global level i.e. Romania in context of business
expansion for 4Com Plc.
 To investigate best growth strategy for 4Com Plc in expansion of its business operations
at Romania.
Research Questions:

 What are the major ways for expanding business operations at international level?
 What are the benefits of expanding business operations at global level i.e. Romania?
 What challenges are present at global level i.e. Romania in context of business expansion
for 4Com Plc?
 What are the best growth strategy for 4Com Plc in expansion of its business operations at
Romania?
LITERATURE REVIEW
Ways for expanding business operations at international level.
As per the view point of Chintalapati, 2020it has been said that for doing business
expansion at international market place requires ample number of methods or ways. In the
present era where there is huge competition level available at the marketplace, it becomes
essential for companies to expand their business functions across the world so they can maintain
their sustainability for a longer period of time. These ways provide assistance to the higher
authorities to examine best and most suitable method for them to do business expansion at
international market place. Some of these methods includes franchising, licensing, exporting,
foreign direct investment, acquisitions and many more which provides platform for the
organization to expand their functions at international market. These are the methods which
requires some specific amount of investment as well as consist some sort of risk which might
affect the whole functionality in a negative manner if these methods are not implemented in an
appropriate manner. It has been identified that a firm adopt method for business expansion
according to their requirements and comfort which will assist them to grow at global level in a
positive manner. Each and every company have their own policies and operating business at their
own level which aid them to adopt entry mode as per their understanding and knowledge. For
instance, 4Com plc is an organization who wants to expand their business functions at the
marketplace of Romania and for this they wants to adopt one of the most effective expansion
method. After examining various methods, higher authorities of the company decides to adopt
franchising method for expanding their business functions at global level. It is a method where a
company can enter into new marketplace in a quick manner and have low risk rate.

Benefits of expanding business operations at global level.
According to the thoughts shared by Agwu, 2020it is said that there are ample number of
advantages and benefits gain by the business entity by doing business expansion at the new and
international marketplace. In the present environment situation there is a huge competition at the
marketplace which affects the profit margin and market share of the company in an adverse
manner. It has also been identified that if a business organization decides to expand their
business functions at international marketplace it will leads towards the attainment of ample
number of benefits and advantages. One of the biggest advantage for various companies while
doing international business expansion is that it offers an opportunity to the business entity to
conquer new market area and reach more and more number of people towards them. This as a
result increases the overall market share and sales of the company.
In addition to this, business expansion provides business growth to the organization as
entering into the new marketplace at global level provides growth opportunities to the companies
and help them in order to capture huge market share. Another benefits which is gain by business
organization by doing business expansion at international market place is that they will be able to
attract new and fresh talent towards them which assist them to produce high quality products and
services. This will help them to grab attention of large number of customers and enhance their
sales and profitability at the competitive marketplace. Furthermore, another benefit gain by a
company while doing business expansion at global level is that they gain competitive advantage.
There is a policy of first come first gain where an organization who comes first at the
marketplace gain opportunities to attract customers towards them. Therefore, by doing expansion
of business functions at international marketplace help in getting huge advantages which
increases their overall revenue and sales.
Challenges present at global level.
On the basis of opinion of Lobo and et. Al., 2020it has been said that apart from benefits and
advantages there are some challenges which needs to be faced by the management team while
expanding business functions at international marketplace. These challenges might influence the
whole business operations and performance in an adverse manner at the competitive
marketplace. One of the biggest challenge faced by an organization while expanding their
business functions at the new marketplace is barrier related to language and culture. Each and

every country have their own language, culture, norms and faith which are different from other
nation. It is essential for the management team of a business entity to consider all these elements
before expanding their business functions so they will be able to gain more positive response. In
addition to this, another major challenge is local competition due to which company face huge
threat which affects their overall functioning. It is said that because of rise in competition level
due to local competitors, an organization who is going to operate their business functions their,
face some challenges and issues which affect whole operation in an adverse manner. Another
major challenge which is going to be faced by the management team of an organization while
doing business expansion at global market is laws and regulations. Every country have their own
rules, regulations, legal policies and legislations which are totally different from other countries.
Therefore, it is necessary to consider the legal policies of a country before starting business
operations at the international market place. Changes in laws are required to be considered by the
higher authorities so that they can easily perform their operational functions at the marketplace
without any hurdles. It is required by the management team to consider all the essential elements
which have their influence on the performance of business organization so that they can gain
positive outcomes rather than any kind of negative issues.
Best growth strategy for 4Com Plc in expansion of its business operations.
According to the views of Marinov and et. Al., 2020it has been examined that doing
business expansion at global level help in getting growth and development opportunities at the
competitive marketplace. It is said that for doing business expansion there are ample number of
methods which can assist them in growing and getting success at the market. In addition to this,
there are various growth strategies which can help an organization to grab growth opportunities
if implemented in an effective manner. With the assistance of Ansoff growth matrix, it is said
that an organization will be able to select best growth strategy after examining the market
situation and requirements of the business entity. There are mainly four types of growth strategy
which includes product development, market development, diversification and market
penetration. These strategies help in getting success at the competitive marketplace. In the
present context of 4Com plc, it has been identified that the manages of the business entity needs
to adopt market development strategy where they enter into the new marketplace by launching
their existing products and services. This strategy will help them in grabbing attention of large
number of people towards them at the marketplace of Romania which increases their customers

base and market share. Along with this, by introducing new product at new marketplace,
company can also grab opportunities with the help of diversification strategy. But as compared to
market development, diversification is one of the risky and costly approach which leads towards
the attainment of success and growth at the competitive marketplace.
DATA COLLECTION
Research methodology is considered as a specific process that is help in assessing, choosing as
well as processing and identifying the information regarding the research. It helps the
investigator in collecting the reliable as well as authentic information which is useful for
collecting a particular research in given period of time. Research methodology is considered as a
significant element of research which offers support to investigators that helps in gathering as
well as identifying and also assists in understanding the information in relation to particular field.
These kinds of research are useful for researcher to collect both qualitative and quantitative data
in relation to particular area (Wiek and Lang, 2016). There are various kinds of methods that are
determined by using research methodology that is going to be mentioned below:
Research philosophy
It is significant part in relation to research methodology in which there are different types
of research philosophies like interpreter. In organizing the current research, it is necessary to use
philosophy in relation to positive research that is adopted by researcher for gathering and
analyzing quantitative information. It helps in increasing growth as well as opportunities in
future period of time. In addition to this the interpretation which is used in research methodology
are not adopted by organization because it is time consuming as well as they do not offer the
authentic as well as validate conclusion.
Research approach
It is considered as the critically important processes that are adopted for assessing the
quantitative as well as qualitative information (Hickson, 2016). There are two kinds of
approaches which are used in research approach like deductive as well as inductive. The
Detective approach is adopted by organization that is completely depending upon quantitative
research. On the other hand quantitative research method is used for increasing growth as well as
development in future period of time. The main purpose of adopting detective research is that it

is useful in assessing as well as understanding of quantitative data within pre-decided period of
time.
Research Choice
There are three kinds which are involved in the research choice like mixed method,
multi- method as well as memo method. Therefore from the current Investigation or research, it
assists the investigator in collecting or assessing the information which is qualitative as well as
quantitative. Therefore the organization adopts the quantitative research for investigator so that it
helps in collecting necessary data in stipulated period of time. The qualitative method is not
considered as an appropriate for organizing the current research because it is time consuming and
it does not offer reliable as well as authentic information which will be useful for company in
future period of time.
Research strategy
In a research strategy is considered as a plan of action that provides direction to efforts
that help in organizing a particular research in systematic manner. The research strategy also
provide a schedule that help in improving the result of quality as well as provide explain
reporting that is helpful in conducting appropriate research. In this research strategy, this is a
kind of process that is used for collecting the necessary information by using different strategy
within a given period of time. For organizing the current investigation, it is necessary for
conducting a survey in an appropriate manner for gathering necessary information which will be
used for particular research. Therefore the questionnaire method is used for collecting necessary
information that is a part of primary source. The organization adopts systematic literature review
for gathering the secondary data information which helps in completing the gap among research
in appropriate manner.
Data Collection
Data Collection is considered as a Process that helps in collecting or analyzing the
information which is useful for achieving a favorable outcome (Daniel, 2018). It is also
necessary for getting a necessary data in order to complete a research in given period of time.
Data Collection is considered as a method that is used by the investigator to gather the data as
well as information in order to achieve favorable outcomes or result in an appropriate manner. It

has been analyzed that there are two point of method of Data Collection which is considered as a
primary as well as secondary. Therefore, primary data is used for gathering fresh or first- hand
data that is not collected by any other researcher. They collect those data which is fresh by using
different kind of methods such as observation, survey as well as questionnaire and so on. In case
of secondary data they gathered those data as well as information which are not already used by
any other researcher. In other words secondary data are those data which is collected by any
other investigator and also published by them. There are various sources which are used for by
organization for collecting secondary data like online article, books as well as journal and so on.
In present investigation, research investigator use both secondary as well as primary data method
for gathering necessary information which is needed for completing a particular research.
Population and Sampling
It is considered as a process which is adopted by investigator or researcher for selecting
participant from the population. For collecting sample size there are two kinds of sampling
methods such as random and non random sampling. Therefore, in present research investigator
adopts random sampling method for selecting respondent for current research in order to find
authentic conclusion. The conclusion is helpful in completing a particular research within a given
period of time.
Data analysis
It helps in collecting the different kind of information in various forms in order to achieve
goal as well as objective in given period of time. There are two kinds of method which is used
for data analysis is qualitative as well as Quantitative approach (Silverman, 2016). Therefore is it
is talk to regarding Quantitative approach than it is considered as a method in which the data or
information is collected that is in term of numeric, figures as well as fact and many more. In
context of qualitative research all the data as well as information involves depth information. In
current study, researcher use Quantitative approach method which will be advantages and
achieve favorable benefits. It is necessary to assess the data which is collected by the researcher
in order to conduct the research in an appropriate manner.

ANALYTICAL FRAMEWORKS
Organization Situation Analysis
In order to do an organizational situation analysis it is said that managers of a business
entity need to adopt SWOT analysis framework which assist in understanding the internal
strength and external threats. In relation to 4Com Plc, SWOT analysis of the company are as
follows:
SWOT ANALYSIS
Strength Weakness
 One of the main strength of 4Com
Plc is their customers as well as their
employees
 Another strength of 4com PLC
company the is their market share
which will assist customer to
understand their financial position.
 Company rewards every staff
member as per their performance
which assist them to retain their
potential candidates for a long
duration.
 Biggest weakness of the company is
that they uses old technology which
affect their overall performance in a
negative way.
 Another weakness of 4Com Plc is that
they do not have staff members who
have effective communication skills.
Opportunities Threats
 There are ample number of
opportunities for the business firm
where they can introduce new range
of services to their customers.
 4Com Plc can also expand their
business functions through online
platforms with the help of which they
can attract large number of customers
towards them.
 New technologies up gradation is one
of the biggest threat for the business
organizations.
 Another threat for the management
team of 4Com Plc is that they do not
have skilled and talented staff
members.

External Market Analysis
For each and every business organization it is very essential to identify the external
environment so they can know their actual place at the competitive marketplace. For this, Porters
five force model is used by the management team of 4Com Plc which are help in understanding
the actual position of the company are going to be discussed as follows:
Competition in the industry: This is one of the factor where competition level at the
marketplace is the main aspect. In reference to the present investigation conducted for 4Com Plc
it has been identified that competition level at the market for the company is quite high. It has
also been said that there are ample number of organizations available at the marketplace which
rises the competition level for the company.
Potential of new entrants into the industry: The second force of porter’s five force model
is the new entrants potential at the competitive marketplace. It is said that 4Com Plc company
mainly deals in providing telephonic communication to their customers through which they can
enhance their business functions. In this context, the threat for new entrants at the marketplace
for 4Com Plc is quite low as it requires lot of contacts and skilled workforce to start such
business venture. Therefore, it can easily be understood that threat for the business entity related
to new entrants are quite low.
Bargaining power of suppliers: This is the force where suppliers power are being examined
so that they can mold their strategies as per the needs and requirements of the organization. In
reference to the present investigation where 4Com Plc is chosen as the base entity, it is said that
the power of suppliers in this context are high as they have various options available for them
and at the same time bargaining power of the business entity are low as they have limited options
available for them . Therefore, it is required by the higher authorities to retain their suppliers for
a longer duration so they can easily perform their functions in an appropriate manner.
Bargaining power of customers: Apart from bargaining power of suppliers there is the
another most essential and crucial factor which is bargaining power of customers. In relation to
4Com Plc it is said that bargaining power of customers are high as they have ample number of

options available at the marketplace. If 4Com Plc will not be able to fulfil all the requirements of
their customers and if there are substitutes available then customers will switch to the other
entity. In relation to the 4Com Plc, it is said that bargaining power of customers are high as there
are large number of substitutes available at the competitive marketplace.
Threat of substitute products: The last element of this framework is threat of substitute
goods and services which are high in case of 4Com Plc. There are large number of substitute
organization available at the marketplace which creates competition to the business entity. In
order to gain positive response at the marketplace, it is said that managers need to innovate new
elements in their offerings. This will assist them to retain their potential customers for longer
duration of time and raise their profitability and sales.
Growth Strategies
A marketing strategy refers to the strategy in which a business entity seeks to identify what
goods and services a consumer want and then develop those products by modifying their
strategies and policies. It is usually based on high level of marketing research with the assistance
of which a business entity can easily grab attention of their customers. It has been said that a
market-led marketing strategy is all about what do consumers want from the company? How can
a business organization satisfy their needs and want? It has been analyzed that one of the most
effective growth strategy is product led approach. On the other hand a Product-led growth (PLG)
refers to a business methodology where the user or the business entity uses acquisition, business
expansion, conversion as well as retention all primarily by product itself. In this method usually
products are the base for growth and expansion of the business entity. It develops business entity
wide alignment all over the teams—from engineering to the human resources to sales and to the
marketing.
It has been identified that Business growth strategy is one of the most effective strategy
which needs to be adopt by the higher authorities after considering each and every aspect in an
effective manner. For this product led approach is the growth strategy which is adopted by the
higher authorities in order to grow at the competitive marketplace. In addition to this, by
adopting this growth strategy it can easily be said that management team of the business entity
can easily develop and grow at the international market place. In the present context of 4Com
Plc, it is said that higher authorities of the company adopt product led approach so they can

easily grow at the marketplace and grab competitive advantages which will assist them in a
positive manner.
Market entry option
For bring the product as well as services in global market there are various strategies
which are used by the organization. It is necessary to take entrance in the Global market for
increasing success as well as growth and future period of time. It helps in increasing profit
margin as well as sales in upcoming time period. It also helpful for organization to use
innovative as well as unique product as well as services as per their needs so that increases the
experience level during the particular phase of time period. There are various kinds of mode
which is used for taking entry in foreign markets such as licensing and franchising, Greenfield
venturing, exporting as well as many more (Best and Kahn, 2017). Some of them are discussed
below:
Licensing is considered as a correct strategy in relation to taking entrance in the market.
Herein it includes the organization granting or providing the permission to the other organization
to adopts its intellectual property rights for pre -decided period of time. In context of 4com PLC
they focus on supplying the phone system from the twenty years. Therefore licensing is
considered as the best strategy which is used by the company in order to provide permission to
another company for using its right for pre -decided period of time.
Franchising is considered as a contractual mode of taking entrance within market place
in which the business organization taking entrance in the foreign market in quick manner with
low level of risk as well as commitment in relation to resources . Therefore, it is useful for a
company to use a franchising as an entry mode option in the foreign market (Padgett, 2016).
With the assistance of above stated information it has been said that franchising is a
method which is adapted by the management team of the company so that they can easily expand
their business functions at the competitive marketplace and gain positive results.
Risk Assessment
For every business entity it is very necessary for the organization to assess the risk which
might affect the overall performance of the company in an adverse way. There are ample number
of risk associated with a business entity which have their both positive and negative influence

over the growth and development of the business organization. It has also been said that risk
assessment define as a thorough look or analysis of the workplace with the aim of identifying all
those things, elements, situations, procedure and many more which might cause harm to people
as well as business surroundings. Once the overall analysis can be done, it can easily be
understood that the impact of risk will be high or low. In the present situation where COVID19
hit the whole world says that every business entity face some sort of risk which have their
negative impact. Due to lockdown it is said that whole world face downfall in their economy
which leads towards recession and unemployment at the marketplace. This is one of the major
risk for the whole world as because of shutting down everything organization need to cut down
their cost and for this they need to fire some of their staff who are not productive. This as a result
leads towards unemployment within the country which reduces the purchasing power of the
individuals. This is the current environment risk which needs to be considered by the higher
authorities while expanding the business operations at Romania.
DISCUSSION
With the assistance of above stated all the information on the topic Investigation
regarding various modes for business expansion, it has been concluded that there are ample
number of modes with the help of which a business entity can easily adopt. The section of
literature review defines ample number of ways through which a business entity can easily
expand their operations at the new and international marketplace. It has been identified that there
are ample number of methods by which business expansion can be done but at the same time it
includes some challenges as well as benefits. In addition to this, it has been identified that some
of these ways are licensing, joint ventures, partnership and so on. These methods help in doing
business expansion in a systematic and accurate manner which provides benefits to the
organization.
In addition to this, it has also been discussed above that there are some challenges faced
during business expansion which influences the whole performance of the company in an
adverse way. Such as language barrier, culture barrier and many more barrier are the challenges
which creates negative influence on the business expansion of the company at new or
international marketplace. Therefore, It becomes essential for each and every business entity to
understand the challenges and take effective measures to reduce their negative impact which as a

result leads towards increment of profitability and sales of the organization. Along with this, it
has also been said that each and every nation and country have their language, culture, norms,
value as well as faith which are quite different from every country. For this, it is important for
the top management authorities of the business entity that they must consider every elements
before doing business expansion of their functions so they will be able to gain more positive
response. Apart from this, it has been identified that by adopting effective growth strategy a
business entity can easily expand their operations at international marketplace. Therefore, it is
essential to consider each and every aspect of growth strategy before adopting them for the
organization. This as a result leads towards the attainment of organizational goals and objectives
which is set by the higher authorities at the time of business expansion of the company at
international marketplace.
RECOMMENDATION & CONCLUSION
Recommendations
After doing investigation about the ways and methods for doing business expansion at the
international market place, various recommendations are given by the researchers so that the
higher authorities of 4Com plc can adopt and consider these suggestions while doing business
expansion at global level. There are various recommendations which are suggested by the
investigator needs to be adopted by the management team while doing business expansion are
mentioned below:
 4com PLC adopts innovative technology in order to provide telephonic services to its
customer in order to satisfy them. It helps them in increasing the profit margin as well as
experience level of customer in particular period of time.
 Furthermore it is necessary for organization to bring innovation in order to cope up with
the change in market Trend and fashion. Therefore they focus on satisfying the customer
by providing them goods as well as services as per their needs. For this, while doing
expansions of operation at the international market place, it is required by the higher
authorities to consider the market trends and requirements of customers so they will be
able to produce products accordingly and satisfy the requirements of customers.
 The company also focuses on providing online services to its customers that help in
attracting large number of customers during the particular phase of time period. They also

focus on innovative or unique product or services in order to increase profit margin. They
also make appropriate strategy that help in achieving competitive advantage over rival
firm at Marketplace.
Conclusion
With the help of above mentioned information, it has been concluded that business
expansion is one of the key requirements of each and every business organization. With the help
of expanding business functions at the new marketplace, company will be able to gain huge
profitability and goodwill which increases their overall revenue and sales. It has also been
identified that there are various benefits which can be gain by a business organization by doing
business expansion at international market place. But on the other hand there are some
challenges which creates negative impact on the overall performance of the company. High level
of competition, market trends, well established organizations and many more are some
challenges which have the capability to influence the whole functionality in an adverse manner.
Apart from this, licensing, franchising are some types of entry mode which can be used by
management team of the company in order to enter at the competitive marketplace effectively.

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