HML's International Business Strategy

This assignment analyzes the effectiveness of HML's international business strategies, specifically focusing on its joint venture approach to expand its sales in the United Kingdom. The report evaluates the company's logistics strategies and their contribution to cost reduction and supply chain management. Additionally, it explores the influence of international trade on HML's profitability within foreign markets.

EXPORT STRATEGIES

Table of Contents
INTRODUCTION................................................................................................................................3
International trade theory:................................................................................................................3
Approaches used by firms to adhere of trade protection or to benefit from trade promotion ........3
Types of export-related strategies....................................................................................................4
Accessing market opportunities, entry strategy and cross-border collaboration and risk analysis 4
Logistics, modes of transport and information technology.............................................................4
Incorporating ethical issues in strategic decision-making...............................................................5
Recommendations to improve future strategy.................................................................................5
Demonstrate understanding and capability to elaborate an articulated export strategy..................5
Describing main trade and investment promotion tools.................................................................5
Critically analyse and evaluate the trade exchanges at both quantitative and qualitative level......5
Explaining complex nature of international trade, its main actors, the legal frameworks and
institutions and their major issues....................................................................................................6
Conclusion............................................................................................................................................6

INTRODUCTION
Export strategy can be defined as approach to move goods and services from one country to
another. It is necessary for organisation to achieve its goals and objectives in the international
market. Hero Motocorp Limited (HML) is a auto mobile organisation which sells two wheeler
vehicles to its consumers in the Asian market. The present file describes about export strategies of
organisation to manage business operations in the United Kingdom. It defines mode of transport as
well as information technology of HML organization. In addition to this, it represents incorporating
ethical issues in strategic decision-making for corporation.
Hero Motocorp Limited (HML) here India requires adopting and implementing best export
strategy so that they can maintain their sales.
International trade theory:
Majority of firms nowadays are engaging into international trade just to reach new markets
and enhance their sales. India can successful expand its business within European Union countries
by selecting best exporter strategy. Here, international trade theory presents those theories which
explain international trade.
Firms nowadays are engaged with the international trade just to enhance their revenue and
develop a strong position into market. It enables the cited firm to grow, compete and serve a large
customer base. At the time of trading internationally company requires to increase the potential of
its clients as well as suppliers (Peters and et.al., 2011). Different firms are engaging with
international trade with the help of exporting its business internationally in different countries
where they do not have existing presence. One of the best trade theories of Mercantilism, presents
that a nation should have a trade surplus and maximizes their business through subsidies. It holds a
significant importance that nation should accumulate the financial wealth. Here, London is one of
the fastest growing countries all over the world. Expanding business in this country helps more
specifically to grow and develop to cite firm.
Approaches used by firms to adhere of trade protection or to benefit from trade promotion
There are various approaches used by firms in order to adhere of trade protection. They must
adhere to all the European Union policies as well as their trade policies. By following Bilateral,
import, export policies they can go through the secure trading without facing any complexities
beyond borders. With the help of better trade Promotion Company can easily enhance its consumer
base in the other countries (Rendell, Fogarty and Laland, 2011). It also helps in further improving
their sales as well as profit margin in the international market. Clients Company should go through
the better and more comprehensive approach to improve trade promotion effectiveness. The most
common and successful factors for the same are better coordinated transformation from the top,

actionable targets tied to incentives as well as diligently track the value captured.
Types of export-related strategies
There are various export related strategies which should be followed by company such as:
Effective market action plan: In order to implement export marketing correctly it is highly
essential to do it in correct stages to ensure export sales growth.
Selection of appropriate market entry strategy: At the time of exporting into any other and
new developing country selection of market entry strategy is required (Piercy, 2014). It is also a
type of export related strategy where company can effectively enter into any new market. It also
covers direct as well as indirect market entry strategy. In direct marketing direct relationship with
customers can be made. On the other hand, indirect marketing can be done through an intermediary
such as trading house, an agent and representative.
Pricing strategy: It is another most important strategy of export which refers to changes in
prices of products (Gao, Murray and Lu, 2010). At the time of export marketing it is highly essential
to include various strategies such as discounts, promotions, pricing and bundle pricing.
Accessing market opportunities, entry strategy and cross-border collaboration and risk analysis
Market opportunities of United Kingdom is effective because education, social sector and
income are growing as comparison of previous years. They can provide better chance for HML firm
to earn better income in the British market.
Management of HML can choose joint venture strategies to expand their business in UK
markets. This entry strategy can help organization to reduce international trades barriers and tariffs.
It can provide better reliability to use resources other company to spread its business (Piercy,
2014).
Cross-border collaboration and risk analysis can be typical for HML organisation.
Management of firm can face global trades, tariffs, material of spare parts issues and product related
risk in the UK market (Gao, Murray and Lu, 2010).
Logistics, modes of transport and information technology
Management of HML can select various modes of transport like road, sea as well as air
modes to move its material into one place to another. As per suggestion, organisation can select road
transportation services to transfer the material one destination to another in the UK.
In addition to this, HML can use Enterprises Resources Planning (ERP) and Consumer
Relationship (CRM) Management to manage its company operations. These approaches can provide
huge reliability to manage its organisational operations in a appropriate manner. They can help the

organisation to understand needs and requirements of consumers (Hultman, Katsikeas and Robson,
2011).
Incorporating ethical issues in strategic decision-making
There many issues which can be faced by management of HML because health and safety,
employment policies as well as material related issues are different in two countries. They can
create complexities for employees of organisation to take strategic decision making. Further, they
can also oblige the corporation to develop new policies to manage its business activities as per rules
and regulation of United Kingdom. So these type of ethical issues can produce problem to sale the
product and services of HML in the market (Darbouche, 2011).
Recommendations to improve future strategy
There are many recommendations to improve future strategy of corporation in the foreign
market. Organisation should follow rules and regulation of European zones which provide effective
flexibility to develop business policies. This process can help the HML to decrease legal obligation
in the auto mobile industry of United Kingdom.
Management of organisation should perform market research to identify needs and
requirements of consumers. Corporation can develop its products and services as per desire the
customer which can help to its increase their sales of two wheeler bikes in the market (Golovko and
Valentini, 2011).
Demonstrate understanding and capability to elaborate an articulated export strategy
As per suggestion, Management of organisation can joint venture strategies which can help
to expand their business in the foreign markets. This strategy is useful because HML can use
network of company to increase sales of its products. In addition to this, it can provide effective
knowledge to know the domestic market of UK which can help the firm to enhance the its revenues
(Eaton, Kortum and Kramarz, 2011).
Further, HML firm can also face many issues in joint venture with other corporation in the
United Kingdom. Organisation can suffer with decision making issues which can affect its
marketing strategies. This process can create constraints for enterprise to take competitive
advantages in the auto mobile market of UK (Li, Lu and Su, 2010).
Describing main trade and investment promotion tools
There can be many promotion tools for HML organisation to promote its product in the
market. Further, organisation can consider social media, television, radio, newspapers and
magazines to promote its two wheeler bikes. These promotional tools can contribute effective role
for corporation to increase sales of product and services. In addition to this, they can also help the

HML to enhance its brand image and value in the market. They can aid the firm to increase market
share of company in the United Kingdom (Feenstra, 2015).
Critically analyse and evaluate the trade exchanges at both quantitative and qualitative level
According to Golovko and Valentini (2011), there are mainly two different types of trade
exchange which are quantitative and qualitative. Among these levels, quantitative is some thing in
which organization provides all the information regarding the amount of product which has be
provided during export (Golovko and Valentini, 2011). For example, when a firm delivers cars,
then in quantitative level organization will provide the exact number of cars which will be exported
to other country. On the other hand, in qualitative, organization will only provide the information
related to the product which has to be exported (Gao,Murray and Lu, 2010). For example, a car
manufacturing company will provide information regarding the product, its cost, etc.
Explaining complex nature of international trade, its main factors, the legal frameworks and
institutions and their major issues
Complex nature of international trade and legal frameworks create major issues for HML
organisation. Trades, tariffs, VAT, income tax, employees and health and safety policies affect the
performance of organisation in the market of UK. Further, these international trades are changed
every as per suitability of government which also oblige HML to changes its global policies (Ruane
and Byrne, 2014). It create issues for organisation to manage its international business operations in
the foreign markets
Conclusion
From the report, it is found that joint venture strategy contribute effective role for HML to
increase its sales in the United Kingdom. Logistics strategies of organisation also helps to decrease
its expenditure and manage its supply chain operations in better way. It can be concluded that
international trades also affect the profit of HML in the foreign markets.

REFERENCES
Books and Journals
Piercy, N., 2014. Export Strategy: Markets and Competition (RLE Marketing). Routledge.
Gao, G. Y., Murray, J. Y. and Lu, J., 2010. A “strategy tripod” perspective on export behaviors:
Evidence from domestic and foreign firms based in an emerging economy. Journal of
International Business Studies. 41(3). pp.377-396.
Hultman, M., Katsikeas, C. S. and Robson, M.J., 2011. Export promotion strategy and performance:
the role of international experience. Journal of international marketing. 19(4). pp.17-39.
Darbouche, H., 2011. Algeria's Shifting Gas Export Strategy: Between Policy and Market
Constraints. Oxford Institute for Energy Studies.
Golovko, E. and Valentini, G., 2011. Exploring the complementarity between innovation and export
for SMEs’ growth. Journal of international business Studies. 42(3). pp.362-380.
Li, J., Lu, L. and Su, W., 2010. A new strategy for the synthesis of benzoxanthenes catalyzed by
proline triflate in water. Tetrahedron Letters. 51(18). pp.2434-2437.
Feenstra, R. C., 2015. Advanced international trade: theory and evidence. Princeton university
press.
Eaton, J., Kortum, S. and Kramarz, F., 2011. An anatomy of international trade: Evidence from
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Peters, G.P. and et.al., 2011. Growth in emission transfers via international trade from 1990 to 2008.
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Rendell, L., Fogarty, L. and Laland, K. N., 2011. Cognitive culture: theoretical and empirical
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Ruane, S. and Byrne, D., 2014. The political economy of taxation in the 21st-century UK. Social
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