Global Business in Context

This report explores the concept of global business and its impact on the textile industry. It focuses on the expansion plans of British Millerain, a leading UK manufacturing company, in Sweden. The report includes a PESTLE analysis of the UK and EU market, entry mode analysis, and recommendations for operational strategies.

Global Business in
Context

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE of the chosen UK Organisation...............................................................................4
Detail PESTLE analysis of EU country where the company is expanding............................6
Entry mode analysis...............................................................................................................8
Recommendations................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global Business is the term defining the nature and size of an organisation which is
operating in the market with their respective products and services. A company or a business are
of different types and styles offering unique products and services to customers according to
their respective industries and business environment. These companies differs on the basis of
their size and their working areas. Global Business organisations are those have been moved out
of their domestic borders and are conducting businesses in different International markets and
fulfilling the needs of people across borders (Bidault and et. al., 2018). The present report is
based on and British manufacturing company dealing in textile industry which is known as
British Millerain. The company was founded in 1880’s and located in Lancashire the heart of
United Kingdom in regards to textile industry. The report covers two major aspects of expansion
that is first in the report PESTLE analysis of the company in regards to United Kingdom is
conducted. Moving along the external business environment and the factors are evaluated on the
basis of the country in which the organisation is planning to expand. Moreover, the entry mode
for the business in order to move all the operations in thee chosen European union country is
assessed. Lastly, according to the evaluation and analysis in the entire report few
recommendations are provided to the business in regards to their operational strategy and
expansion criteria’s.
MAIN BODY
Introduction to company.
British Millerain is leading Organisation in manufacturing industry since its origin in
1880’s. The company is innovating and sustaining in the market from more than a century by
using unique skills of their workers like hand work and others which are passed through their
ancestors from more than 6 generations of Miller family (Hampden-Turner and Trompenaars,
2020).
British Millerain is located in Lancashire and has known as the original manufacturer of
wax cotton for outerwear. The company is on the lead position in regards to waxed cotton fabrics
and place on higher position in the fashion industry. There are several of different operational
strategies that are used by the organisation that has partnership with other leading brands in the

industry. The main reason behind their long term relationship with their suppliers is the
commitment and quality offered by British Millerain.
The organisation is known as a globally respected manufacturer of waxed fabric for outer
wears. A huge strength of the organisation is its waxed fabrics which enabled it to gain its
pioneering reputation in the world. The company’s strength is developed through it’s valuable
and consistent investments made in research and development segment in order to remain the
market leader of The Heritage textile industry (Adekola and Sergi, 2016). British Millerain is
been working in United Kingdom since a very long time. The company now is planning to
expand its operations in Sweden by the end of June 2022. To choose in European country for
expansion by British Millerain is Sweden a beautiful Nordic country in Northern Europe. The
country is boarded with Norway to the west and north Finland to the East and connected with
Denmark in the Southwest.
PESTLE of the chosen UK Organisation.
PESTLE analysis is a tool or a framework which is used for analysis and understanding
the business environment in which a respective organisation is operating and serving their
offerings. PESTLE represents six factors that are most significant and influencing when it comes
to businesses and their deficiencies in the respective market.
British Millerain is dealing in textile industry and famous for its best quality materials as
well as fabrics made of waxed cotton. The company has status of leading Organisation in textile
sector in United Kingdom. Therefore there are number of external factors which influence and
affects the operations of the entity. Thus, PESTLE analysis is used in the respective manor to
identify the impacts of the environment on British Millerain (Keivanpour, Ait Kadi and Mascle,
2017).
 Political aspect is the first factor of the framework which represents the governmental
influences and interferences in business operations and functioning. In United Kingdom
the political environment is stable enough for businesses to gain a value adding support
and run their operations successively. British Millerain is being running their operations
in the country from past centuries as the business is being passed on from generations.
The political environment renders reorganisation in a stability and successiveness that I
do not impose much negative impact on its operations.

 Economic factors are those which are concerned with inflation rate, country’s GDP,
growth rate and many other related aspects. United Kingdom is a country which has bin
famous for its supported economic environment in regards to different industries and
businesses. Hence, British Millerain do not need to be concerned in regards to economic
factors as the country has a stable and supportive environment for the same. Recently
brexit took place which has shaken up the things a little bit causing several uncertainties
in economic environment (Dahlberg and Lagstedt, 2018).
 Social/ Cultural sector of the framework focuses on the demographic characteristics and
trends that are flourishing in the industry of specific market. The social or environment of
United Kingdom is dynamic and fluctuating. This leads to regular changes taking place in
market trends and textile industry causing a little bit of trouble for businesses to develop
their strategies and accordingly work in a respective direction. On the other hand one
positive aspect of the social environment of United Kingdom is the customer loyalty
towards the respective brands which are there in the market from very long time and
serving according to their needs and requirements.
 Technological factor of the external environment talks about the technological
advancement and development taking place in regards to their respective industry in
which organisation operates and its impacts on the operations of business. British
Millerain is not only famous for its legacy and quality of products that is been carried
from generation to generation. But the company is also known for its innovation and
development in regards to offering something new and authentic to customers. In textile
industry technology plays a very significant role nowadays. As with new and updated
technologies the company has the best mix of their designs, skilled labours with unique
creative learnings and better resources to complete their worked in the given time frame
by offering largest number of units produced and orders completed (Okhrimenko and
Ergunova, 2019).
 Legal aspects is part of the extended framework of PESTLE which talks about and
explorers most prominent and direct influences placed by the legal laws and regulations
developed by governments on specific industry and company. Textile industry is dynamic
and changing so as the law in the industry for smooth functioning and effective
implementation of each regulation in the market. Hence British Millerain do have to look

over different laws and regulations very specifically in order to be safe from unnecessary
charges and legal fee such as while exporting goods and importing materials.
 Environmental aspect is recently added to the list of external Business factors which
concentrate on making affective processes and suitable practices by the company in
regards to reducing their harmful impacts on the world and society. Textile industry is
one of the leading sector in concerned with carbon footprints and pollution. Therefore, in
favour of environmental aspect Government have imposed severe practices and critical
laws to be followed by businesses like British Millerain in order to reduce their impacts
on the society and over all natural ecosystem of the world (Adewale, 2016).
Detail PESTLE analysis of EU country where the company is expanding.
European union which is also denoted as EU is an administrative body which involves 27
member states and are political and economic union that are placed or located in Europe. United
Kingdom have recently exited the European union in January 2020. The brexit deal was executed
on 31st of January 2020 when United Kingdom officially exited the membership of the union.
The European union has developed an integral an internal market by imposing and
practicing standardized system and laws which are applicable to all the members and agreed by
all the member states. The major objective which is served by development of European union
and integration of 27 member states together is to establish a more balanced and agreeable trade
policies and work structures benefiting all the members in conducting domestic as well as
International businesses.
British Millerain is bin running its business in United Kingdom from past centuries and
now with changing market conditions the company is also implementing change in its working
strategies and operational activities. The result of the change introduced is expansion plan of the
organisation being introduced to move its operations in Sweden a European union member
(Tung, 2016).
Sweden is one of those 27 member states of European union which has a huge textile
industry. The company is planning to expand in Sweden by June 2022 therefore it is important
for the organisation to conduct the external environmental analysis by using the PESTLE
framework.
 Political government structure of Sweden is of a limited constitutional monarchy with a
parliamentary system. According to the political structure of Sweden on power comes

from the people and it is the foundation of the parliamentary democracy of Sweden.
Everyone in the region has same power and rights as well as say. Hence, according to the
political environment of Sweden British Millerain will be having more flexibility and
power in regards to their operations.
 Economic factors and aspects of the whole world are misbalanced and unknown because
of the covid-19 pandemic recently took place and still going on. The world is suffering
and the economics are highly affected due to the pandemic. Along with it United
Kingdom have recently left European union which have also developed several economic
changes in operational aspect of businesses. The server impact which will be faced by
British Millerain is making balance in economic activities of both United Kingdom and
European union territories.
 Social/ Cultural in regards to Global Business context is a serious factor to look over by
the businesses as with area number of factors like demographic and other cultural aspects
changes. Hence, the result is British Millerain have to be very careful and other about the
social requirements and needs of people in Sweden while entering and offering them their
respective products and services (Leong, Ping and Muthuveloo, 2017). Moreover, the
company is new to the region which imposes a negative impact as the entity has to make
more concise and larger investment in their research and development operations for
understanding the culture of the environment they are dealing in secondly to gain more
appropriate knowledge about the expectations of the people from such authentic brand
with such skilled and valuable products and services.
 Technological factor which talks about the advancement and availability of updated
instruments as well as technologies to the businesses in the respective region. The
technological factor is divided into two parts that is changes taking place in the IT world
and changes taking place in the specific industry. Technology is constantly developing
and evaluating itself from past decade. Thus, it do have significant impact on the market
as well as separate industries like textile. While moving in Swedish market British
Millerain has to have atomist knowledge of the available technological resources in order
to to understand their abilities and strengths. with the help of different technological
resources available to them and their effective research and development strategies the

company can easily lead towards effective placement in the market and getting popular
amongst people or targeted audiences.
 Legal environment and the factor talks about more specific concerns in regards to laws
regulations and smooth functioning of businesses in respective sector and country.
European union is an administration of 27 member states which works and develops
systematic operational loss and strategies for businesses to work on common grounds and
engage in fair trade practices. Sweden is part of European union but recently United
Kingdom have left the union. This can cause a little problem for British Millerain
organisation is originally from United Kingdom and by moving its operation to Sweden it
can face certain legal challenges. The first major concerning factor is the need for the
company to comply with legal requirements of both European union and United
Kingdom. This over engagement of legal laws can develop a challenging situation and
work environment for the organisation and also can affect its operation in regards to
following on legal aspects and leading them towards unnecessary legal fee due to certain
misconduct (Yu, Chen and Yang, 2017).
 Environmental element is last but not the least, environmental law and requirements of
different region belongs to the decisions made by the ruling parties in regards to keeping
the environment as well as societal balance by keeping track of performances of
businesses and their operational practices for knowing their impacts on the ecological
balance of the region. Sweden is a new please and market for British Millerain which
makes it automatically a concerning factor for the business to cope up with the CSR that
is corporate social responsibility which company holds towards society and the people
amongst whom they are planning to establish their operations. In regards to
environmental element the company has to go through all the requirements and a
essentials of environmental policies developed by administrations in Sweden for
businesses to follow and work accordingly. The environmental factor will not only enable
the entity to work in ethical manner and support the society by contributing certain part to
them for using the resources but also offers a unique power and goodwill to the business.
For a new business in the region holding a strong CSR and less environmental damage
will automatically attract people and enable the organisation to establish a strong
significant position in the textile industry of Sweden.

Entry mode analysis.
Entry mode refers to or defines the route entity will be taking for expanding and entering
the new market place and the region identified strong enough for their operations. British
Millerain is an organisation belonging to textile industry which is known to be a competitive and
cost consuming business area. In concern and regards to entry of the organisation in Swedish
market with its products and services and a unique skilled workforce the company needs to have
a strong entry mode adding more value to its market presence and popularity.
A most suitable and successive entry mod for British Millerain for expanding its
operations in Sweden is partnership. This is one form of business ownership which is highly
beneficial and value-adding to the organisations and business owners adopting it. In partnership
the company will be joining hands with other parties one or more who have the common goal
and objective to attain.
Partnership is an agreement made in two or more parties for accomplishing their common
goal and representing their respective profit and loss share according to the investment in
establishing the operations and running them smoothly. In regards to the partnership concern
British Millerain can look over a domestic party to partner with while entering Sweden
(Brennan, Canning and McDowell, 2020).
Advantage and benefits f engaging in Partnership agreement for British Millerain:
 The first and most effective advantage which will be enjoyed by the organisation while
expanding their business in Sweden through partnership is increased market knowledge.
In order to enjoy this benefit the company have to make sure that the partner is a
domestic party belonging to Sweden and working in textile sector. British Millerain is
new to Swedish market but the domestic partner with whom the entity is being engaged
in an agreement is a domestic company who already have appropriate knowledge about
the market and requirement of people. This is a huge advantage for the organisation
because the entity can develop a competitive edge through using the market knowledge
and learning of the partner as well as other resources for entering the market and
flourishing their operations in an effective manner.
 Another advantage of of entering into the new business environment through partnership
agreements and practices is of dividing the burden among all the partners rather than
being burdened itself. British Millerain is a new company for Swedish market the

chances of their success and failure are 50-50. Therefore when the company enters into
the market through a partnership agreement the risks, losses and other potential expenses
of the organisations divides amongst all the partner. Hence, it acts as a huge benefit
because the organisation will not be burdened and will be enjoying the balance created in
the financial expenses as well as contributions made towards company’s capital
resources.
Recommendations
From the evaluation and analysis conducted in above segment of the report in regards to
studying the external environment of the organisation in United Kingdom as well as of Sweden a
member of European union where the entity is expanding the company is using partnership
strategy to enter the market (Szűcsné Rádai, 2018).
According to the evaluation partnership is a strong and valuable route to enter a new
market place. But another suggestion for the organisation to be considered as their entry channel
is is mergers and acquisition. The benefits associated with partnership are also associated with
merger and acquisition concept. Along with it there are other benefits which can be enjoyed by
British Millerain while using the merger and acquisition tool to enter Sweden textile industry.
The first major benefit of acquisition in merger is reduced risk of closure of business decision
making is intact with fewer people and with top level management of the company rather than
getting divided in number of partners associated.
CONCLUSION
From the above report and discussion made it can be concluded that Global Business
context have to be discussed and evaluated thoroughly for developing strong strategies and
policies to enter respective marketplaces and effectively working in global environment. In this
report PESTLE analysis is conducted in regards to the organisation and then to the country in
rich the company is expanding for understanding the impacts of external environment and
developing re knowledge. Moreover entry route of the organisation is also evaluated for seeking
its efficiency and productivity for the entity.

REFERENCES
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