Global Business: Factors Affecting Small and Medium Enterprises in Expanding at International Level

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REPORT
REPORT

Abstract
The report brings out the problems associated with new and emerging companies. Moreover,
it is important for the SMEs (small and medium sizes enterprises) to consider its CSR
activities and other entrepreneurial framework to carry out its approach to move towards
global market. The report is based on the given case study and also applies VRIO analysis to
give a particular criteria that it is far better to apply for building and preparing the company
to move towards international market. For the report, I have chosen two SMEs to decide how
entrepreneurial framework and CSR (corporate social responsibility) plays an important role
while executing a process of getting international value.
Introduction
Global business refers to international trade which states that the company doing the business
at the international level by exchanging goods and services (Lindgren, Sirobi, and
Bandsholm, 2016). The companies can expand the business at the international level by
exchange the goods and services across the world. For expanding the business the company
requires the large amount of capital to invest in the business (Jones, and Kierzkowski, 2018).
The investors and the stakeholders help the company in expanding the business at the
international level. In this report, the discussion is made on the global business. The
discussion is based in the report format to analyse the factors which affect the company in
expanding the small and medium size firms at the international level (Cheng, Ioannou, and
Serafeim, 2014).
In the beginning of the report, the stakeholder’s view of the firm will be discussed. After that,
VRIO framework is used to analyse the internal environment of the organisation in the
context of its resources. The factors will be discussed that affect the strategic decision of the

medium and small size firms. In the last section of the report, the key drivers will be
discussed which helps to sustain an advantage over time. The use of the company will also be
discussed to maintain the organisation structure (Aguilera, Judge, and Terjesen, 2015).
SMEs have attracted attention while recognising their crucial role in country`s economy and
its contribution to growth. A properly constructed organisational structure has become
necessary to manage the foreign activities. Organisations select several modes to enter
foreign market such as exporting, joint venturing, establishing a greenfield investment to
acquire a stake in existing company. Apart from thinking of financial resources available to
the organisation to expand in the international market. There are other several factors that an
organisation need to consider. Arguments for entrepreneurial framework that can considered
while thinking of internationaling the small or medium organisation-
Stakeholder view of the organisation
It is one of the most factor that gives an approval of setting up a venture at international one`s
the domestic stakeholders such as customers, suppliers, and shareholders are satisfied.
Although the concept of CSR has become very popular among the organisation as well as
stakeholders. The increasing awareness of social, political and scandal matters have
developed environmental obligation at a corporate level (Lim, and Greenwood, 2017). This
can be wrong statement to say that SME have less or no awareness of negative impact of the
operations and lack of interest in executing environmental obligations. Especially when the
core competency is CSR, it takes efforts on the part of both customInk and Hagerty. The
stakeholders of CustomInk undoubtedly remain very satisfied because it provides two time’s
free food and meal with addition to snacks. Hagerty remains an insurer which not only
insures client’s cars but also allow employees to collect outstanding points for gifts (Lim, and
Greenwood, 2017). Moreover, it is important to consider CSR concerns especially when firm