Global Business Aspects: Drivers, Advantages, Barriers, WTO, Trading Blocs, Entry Strategies, and Global Strategy for New London Cafe

This report discusses the various global factors that can influence business activities, with a focus on New London Cafe. It covers topics such as drivers behind globalisation, advantages and barriers to internationalisation of business, role of WTO in international business, effects of trading blocs, entry strategies in international markets, and appropriate global strategy for New London Cafe.

Global Business
Aspects

Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
TASK 1 ...........................................................................................................................................1
Explain the different drivers behind globalisation ................................................................1
The advantages and barriers to internationalisation of business. ..........................................2
What is the differences between domestic and international business...................................2
What is the role of WTO in international business ..............................................................3
The effects of trading blocs in international business. ..........................................................3
TASK 2 ...........................................................................................................................................4
About the company and its market ........................................................................................4
Protecting Intellectual Property Rights in a globalised economy..........................................4
Managing business functions in an international context.......................................................5
The impact of national cultures in international markets.......................................................5
An assessment of entry strategies in international markets....................................................6
An assessment of appropriate global strategy for the local company....................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
It is very important for an business organisation to consider the various global factors
which can influence over the business activities. The global business aspects includes the various
considerations in order to be effective and efficient. There are various external drivers which can
influence the organisation. The external environment is related to the forces which can impact
the working of the business enterprise. It is very important for the organisation to expand its
market and keep in mind the several external factors. The organisation chosen for this report is
New London cafe. This is the cafe which is located in United Kingdom. (Hampden-Turner,
Trompenaars, and Hampden-Turner, 2020). This report will include various topic such as about
the local company, various market entry strategies, global strategy, impact of national cultures,
MAIN BODY
TASK 1
Explain the different drivers behind globalisation
There are different drivers behind the globalisation which are discussed below;
 Decline in the trade barriers- As it is identified that there is the observe ration of the
increase in the foreign direct investment which has lead to the globalisation and this has
impacted in the several driver which is behind the globalisation. The decline in the trade
barrier has lead to globalisation and this has lead to changes in the various aspect in order
to conduct the business in the international market.
 Decline in investment barriers- this is also another driver which is being the
globalisation where there is decline in the investment barrier. In the today world the
glocalisation is becoming easy and the investment is required because of the
telecommunication which has lead to the globalisation. (Routh, K. and Pal, T., 2018)
 Role of technological changes- It is identified that the telecommunications is creating a
global audience. This is creating the several opportunities for the business organisation
which is leading to the change in the organisation and adopting to the global presence of
the companies. The technology is bringing the globalisation and the companies need to
adopt the new technologies in order to conduct their businesses.
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The advantages and barriers to internationalisation of business.
Barriers
There are various barriers to the internationalisation of the business which need to be
considered by the New London cafe which are discussed below;
 it is observed that there can be shortage of the working capital to finance the exports for
the business organisation in the international market.
 The marketers not having the proper knowledge of the international market can also be
the barrier for the internationalisation of the organisation.
 The lack of the managerial time, skill and knowledge is the another barrier for the New
London cafe which need to be considered. (Yang, 2019)
Advantages
there are various advantages to the business organisation if it is focusing on the
international presence of the business enterprise. Some of the benefits of the are discussed
below:
 the organisation have a benefits to expand its business and earn the higher profits and
revenue.
 The another benefit for the business enterprise to to expand its market share and have a
new customer base.
 The organization also can build the brand loyalty by its international presence.
 This will also benefit the organisation in adopting the new culture and benefit in the
expansion and growth of the organisation. (Kastay, 2020)
What is the differences between domestic and international business
There are the various differences between the domestic and internation business where
the domestic business involves with the economic transaction which take place within the
geographical boundaries of the country whereas the international business involves the various
activities and the economic transactions which take place outside the geographical areas of a
specific country. In the domestic business the both buyers and sellers belong to the same country
where the international business the buyer and seller belong to the different countries. The
domestic businesses deal within the same country whereas the international businesses deal in
the different countries in order to expand the market. The geographical boundaries limit the
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selling of the products in this type of business where in case of the international business the
boundaries are not set which lead to the grater expansion of the organisation in the other
countries as well. In the domestic businesses the capital investment is low as compared to the
international businesses where they require the huge amount of capital in order to export the
product in the other countries.
What is the role of WTO in international business
The WTO is defined as World Trade Organisations which it has a major role play in the
international business. This is defined as the most powerful institution in order to reduce the
trade related barriers between the different countries and opening in to the new market for the
several business organisation. This is the only international governing body which take care of
the several aspect and the companies who are involves in the internationalisations and
globalisation. The main purpose of the world trade organisation is to provide a fair platform for
its members countries in order to help in the various services such as import, export, and so that
te company is able to conduct the business in a effective and peaceful manner. The WTO plays a
major role in reducing the trade barriers and lower the cost of trade for the organisations who has
a presence in the international market. As in context of the New London cafe if its is deciding to
expand its business sin the international market it is very important for the organisation to
analyse the market in order to gain the competitive advantage.
The effects of trading blocs in international business.
Trading blocs are typically collection of nations declared locales that oversee and
progression exchange exercises. Transaction coalitions lead to exchange promotion (the
deliberating of exchange from advocator measures and exchange creation between individuals,
since they are dealt with well in opposition with non-individuals.
The World Trade Organization (WTO) allows the existence of exchanging alliances, given that
they bring about lower security against outside nations than existed before the placement of the
dealings coalition. Exchange redirection is a component of a nation choosing to join a traditions
association for example a region where there is deregulation inside the traditions association yet
in addition a typical outer duty.
At the point when a nation joins a traditions association it could at first be exchanging openly
with a minimal expense provider in an outsider country.
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When inside a traditions association, the nation should now take on a typical outside tax which
will then expand the expense of bringing in from the outsider country.
These more exorbitant costs could influence shoppers straightforwardly for example greater
costs for food. Or on the other hand they could influence buyers by implication since makers
presently need to pay something else for their imports from the third party Trade redirection is an
element of a nation choosing to join a traditions association for example a region where there is
streamlined commerce inside the traditions association yet in addition a typical outside levy. At
the point when a nation joins a traditions association it could at first be exchanging uninhibitedly
with a minimal expense provider in an outsider country.(Di Vaio, and et.al., 2020)
TASK 2
About the company and its market
The company which is chosen for this report is the local cafe named as the New London
Cafe situated in the streets of the London. This is the cafe which is famous for the beverages and
the food products. The company offers the variety of he products such as coffee, pizza, burger,
sandwiches, pasta etc. it is very important for the cafe to expand its business in the international
market in order to increase the profits and revenue. This is cafe which is famous for the coffee.
Protecting Intellectual Property Rights in a globalised economy
Protected innovation relies on data, which has
Publicly greatness in two different but important ways. First, it's non-competitive:
One person's utilization of it does not diminish another's utilization. consider a new
Creation method, melodic composition, brand name or PC program. All of which may be used or
appreciated by countless people. exist
In this particular case, it would be ideal from a static point of view to allow broad acceptance of
protected innovations. To be sure, the public interest is outrageous for giving another outline,
floppy, or tape to one for a negligible fee. Additional customers may be low or zero. Subsequent
trademarks are licensed innovations that may become non-exclusive by means of secrecy: pre-
emption may not be conceivable. Unauthorised use of data by others. Assuming that academic
endeavours may be important but effectively replicated or exploited by others,
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The second comer will ride for free. Therefore, there may not be Incentives leading to licensing
innovation fees. society has Move away from the strong interest in this result by conferring
characteristic property liberties in the data. Sometimes confidential components, for example,
market lead times, difficulties in replicating or imitating certain developments, and advertising
procedures for manufacturing and Use data. Likewise, the intensity of this powerful argument
Because the guarantee depends on the conditions of market structure and mechanical complexity.
Managing business functions in an international context
there are various important aspect in which the company need to manage its business
function in order to expand in the international market. There are various aspect which need to
be considered by the company so that they can conduct the business operations.
 Marketing team- the company will require the marketing team in order to promote the
cafe in the international market. This is the most important function for the organisation
in order to expand the business in the other market.
 HR function- this is the another function of the human resource manager where the
company need to focus on the training and development of the employees in order to gain
the competitive advantage.
 Operations team- this is the another essential function for the new London cafe which
need to be performed in order to gain competitive advantage. It is very important that the
management focus on the operational activities and perform the task in an effective and
efficient manner. (Banerjee, 2021)
The impact of national cultures in international markets
It is identified that there is the wide range of variety of differences which can impact the
organisation because of the different cultures which is been followed by the people. As in
context of the internation aspect the company need to focus on the various aspect and the culture
difference which can impact the organisation. It is necessary for the marketer to analyse that the
culture of the national country might differ from the international market. As if it is compared
that the difference in the cultures because of the nation can impact the the preferences and
choices of the customers in order to purchase the product or service from an organisation. As in
context of the international market and the global aspect it is necessary the different culture over
the world wide and the impact of the culture of the international market can impact the
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organisation in numerous ways. It is very essential for the marketer to understand the different
perspective of the people because of the culture which is followed within the specific country.
Partition of social issues from monetary and political is perplexing as every one of the
three elements connect to impact perspectives and convictions. Characterizing the level of
contrasts between societies isn't direct on the grounds that acknowledgement of contrasts is an
emotional issue. As the degree of global exchange and travel increments societies become
progressively related and the social dissemination might change the meaning of public societies.
(Franceschelli, Santoro, and Candelo, 2018)
An assessment of entry strategies in international markets
There are a variety of manner In which a business can enter a foreign market. No one
market entry strategy operates in for all global nations. Straight exporting may be the most
accurate planning in one market during in other they may required to set up a joint
company and in other they may required well licence for production basis. There will be
amount of elements that will attracts their choice of strategy, consisting no limit to tariffs
rates, the degrees of implementations of there goods needed marketing and transportation
values. It is expected the raised in sales will offset these prices. The following planning are
the major entry options to businesses-
 Direct exporting - it is selling directly into the market they have selected utilising
in the first instance they own resources. Various companies once they have introduce
a sales program turn to agents and or serving to viewers.
 Licensing - it is close sophisticated structure where a company transfers the rights
to utilise the goods and services to another company. It is specifically used strategy if
the buyers of the license has a closely having huge market share in the
marketplace they want to be . (Crespo, N. and Simoes, N. eds., 2021)
 Franchising – It is operates well for business that have a similar business model that
can be simply change into another market. They are required when consisting utilising
the franchise model. Initially is business model must either be very specific or
have powerful brand recognition that can be used globally and secondary they may
be making future rivalry in their business.
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An assessment of appropriate global strategy for the local company
there are different global strategies for the local company in order to external in the
international market. It is suggested that if the New Landon cafe focus on adopting the global
strategy in order to increase its market share then it can focus on expanding the market by
increasing the products and into the product development so that the company can focus the
global strategy. (Bogatyreva,and et.al., , 2019)
CONCLUSION
From the above report it has been concluded that there are various aspect which need to
be considered by the organisation in order to expand its market in the international countries.
There are various market entry strategies which can be adopted by the New London cafe which
they can focus in order to increase the market share. In order to expand in the international
market the company should be aware of the culture of the country so that they can focus on
producing according to the perspective of the customers. There are various functions which need
to be performed by the cafe ion order to be gain the competitive advantage and increase its
market share.
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REFERENCES
Books and Journals
Hampden-Turner, C., Trompenaars, F. and Hampden-Turner, C., 2020. Riding the waves of
culture: Understanding diversity in global business. Hachette UK.
Routh, K. and Pal, T., 2018, February. A survey on technological, business and societal aspects
of Internet of Things by Q3, 2017. In 2018 3rd International Conference On Internet of
Things: Smart Innovation and Usages (IoT-SIU) (pp. 1-4). IEEE.
Yang, J., 2019. Contract Law Aspects of Sustainable Companies’ Certification in the Global
Value Chain. European Review of Contract Law, 15(1), pp.31-52.
Kastay, D.K., 2020. INFORMATION ASPECTS AND ACTUAL PROBLEMS OF GLOBAL
JOURNALISM. In EUROPEAN RESEARCH: INNOVATION IN SCIENCE,
EDUCATION AND TECHNOLOGY (pp. 96-100).
Di Vaio, and et.al., 2020. Artificial intelligence and business models in the sustainable
development goals perspective: A systematic literature review. Journal of Business
Research, 121, pp.283-314.
Banerjee, P., 2021. Elementary aspects of the political: Histories from the Global South. Duke
University Press.
Franceschelli, M.V., Santoro, G. and Candelo, E., 2018. Business model innovation for
sustainability: a food start-up case study. British Food Journal.
Crespo, N. and Simoes, N. eds., 2021. Handbook of Research on the Empirical Aspects of
Strategic Trade Negotiations and Management. IGI Global.
Bogatyreva,and et.al., , 2019. When do entrepreneurial intentions lead to actions? The role of
national culture. Journal of Business Research, 96, pp.309-321.
Winarso, W., Untari, D.T., Djuita, P., AR, E. and Halin, H., 2021. Development of an Online
Clothing line Business Strategy in Bekasi; Aspects of Marketing, Human Resources and
Finance. Review of International Geographical Education Online, 11(9).
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