Global Business in Context

This document discusses the concept of global business and the factors to consider when expanding operations in a new country. It focuses on Bloomsbury Coffee House's plan to expand in Ireland and compares various factors in the UK and Ireland. The document also provides an entry mode analysis for expanding businesses.

GLOBAL BUSINESS IN
CONTEXT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
OUTLINE OF THE COMPANY................................................................................................3
Comparison of various factors in UK and Ireland.......................................................................4
Entry mode Analysis....................................................................................................................7
Recommendation.........................................................................................................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
Global business refers have to be present in the trading factor so that the company is
going to find it easier for the organization to be able to expand themselves effectively.
Businesses in the market have to make the right decisions and planning to be able to do so which
is highly beneficial for having a long run. Good financing and other factors have to be present so
that there is good exchange of working and the company is going to have higher operations and
systematic working which is present. Bloomsbury Coffee House is in London and is operating
near British Museum and because of its location the company is being able to have a good
working which is very important. The report is going to consist of working and functioning so
that the company is going to have a good working and functioning for a long run and the
economic factor as well as the portfolio is going to be stronger.
OUTLINE OF THE COMPANY
Bloomsbury Coffee House is a Small and Medium sized coffee house in London which
deals in products like cakes & pastries, lunch, brunch etc. It is located near Russell Square where
the people are in search of a friendly and cheap priced cafe or coffee house. The major speciality
of the company is that all the food provided by the company is homemade which is made by
thoughtfully sourced ingredients. The free range eggs used by the company us from the
Havensfield happy hens and organic milk. The fruits and vegetables used for making maximum
products are completely fresh and are grown on the London’s doorstep in Kent (Bloomsbury
Coffee House London, 2021). Not only this, the company also have its own garden which also
gives production depending on the season which is considered to be a fun and welcome addition
to the menus. The company is a daytime basement cafe which provides free Wi-Fi to all its
customers and employees along with becoming the characterful and cheap place for eating. This
is owned by a young couple. The fair prices and the discounts are the centre of attraction for the
guests and the customers (Bloomsbury Coffee House London, 2021). BCH not only provides
flavoursome coffee and tea but also buns, pastries, soups, sandwiches, salads etc. The company
got top rating for Hygiene from the Agency of Food Standards.
The company won the award of “Best Coffee Place” in 2018 and the company gives the credit of
the same to its lovely customers who voted for it in the Time Out Love London Awards 2018.
The company got the same in 2015 also because of the great coffee friendly vibe and the
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cinnamon buns. In summers, the company provides special products like iced latte shake and
milkshake all in one. The company is not ashamed to express that they use the cups and straws
made of plastic because of stock excess but they are trying to finish this up soon and shift their
products to the products completely made of paper whether it is cup or straws.
Furthermore, Bloomsbury also serves ALLPRESS COFFEE which is fully flavoured and
expertly made. The baristas of the company are brilliant who always strives hard to
accommodate the coffee requests of the customers to make a perfect cup. The company is not
only special for coffee but for serving many blends of Affogato, Teapigs, pressed juices and iced
drinks. Along with the delicious and special food and drinks, BCH also deals in displaying the
fantastic pieces which are from the charitable initiative Cafe Art. The work is not only available
for display but the customers can even buy some piece of Art which can help the homeless and
disadvantaged people who made the artworks (Bloomsbury Coffee House, 2021).
The company is gaining rapid success in UK but is planning to expand its products and services
in Ireland also. The company has chosen Ireland because among all the European countries, the
Ireland has shown a lively growth on the basis of coffee consumption. The people of Ireland
consider coffee not only as consumption but a way of life. This was also observed that 56% of
the Irish Adults consumes coffee for at least once in a day and that also in a coffee house or in a
cafe. Bloomsbury Coffee House predicts a rapid success and profitability in Ireland (Orestano,
2020). The company plan to expand its products and services made from homemade, healthy and
fresh raw materials in Ireland to face a rapid success and to make aware of the Irish Adults about
its delicious food, drinks and also unique art. It plans to compete with all the existing players in
Ireland and lead them by gaining high competitive advantage (Wageman, 2017).
Comparison of various factors in UK and Ireland
Bloomsbury Coffee House is planning to expand its operations in Ireland which is why it
is must to analyse the environmental factors of Ireland and compare them with UK because the
company need to make many changes for smooth functioning of the company in the new place
with the new population and customers (Brown and et.al., 2018). UK and Ireland both are large
countries with optimal population but the population and the area of UK is much greater as
compared to Ireland. There are various factors which need to be kept in mind of Bloomsbury
while expanding itself to a new and developing country like Ireland.
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Political: The coffee business is dependent on the international trade and one of the biggest
coffee producers is located in UK. Trade relationships between the countries which consume and
produce coffee, play a major role to determine the final price tag of coffee and beverage which
affect the overall sales. There are various uncertain trade circumstances in UK and Europe which
affects the overall operations of the company. The political decisions taken are different in UK
and Ireland. Bloomsbury Coffee House now adheres to the rules set by the government of UK
and is familiar with the taxes as well as political restrictions by the UK government on specific
things (Barak, 2017). After expanding in Ireland, The BCH needs to follow the rules and
political restrictions set by the government of Ireland which can be completely different with that
of UK. The government of UK is business friendly which is why the corporate tax is also less.
Also, there are fewer restrictions on performing the operations of the business which is why the
young couple who are the owners of BCH got the license to open up the coffee house in UK
easily. But the government of Ireland is not much government friendly which is why the
company will face many restrictions in opening up the coffee house in Ireland but because of the
success and profit which is predicted by the company is higher so the company will face and
overcome the challenges. The labour in UK is also cheap which is why the company has kept its
prices low for luring more customers but comparatively this will be more in Ireland so BCH
needs to keep its prices such that it can gain significant profits and can increase the customer
base as well.
Economic: The economic stability of the country plays a major role in deciding the profitability
of the companies which are depended solely on the customers (Ellis, 2018). In UK, the
reputation and the goodwill of the company is already established and made which does not
restricts the company to increase the prices but as the company is expanding to the new area, the
centre of attraction for the customers will be the lower prices which can shift them from other
companies to BCH. The income of the people in UK is rising and same in case of Ireland, but the
company needs to keep its prices lower in order to attract majority of the customers and can
increase little bit prices in UK as the customers became loyal and cannot shift to other
companies.
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Cultural: The culture of UK is shifting towards dietary and organic food which helped BCH to
promote its products and services. The culture and the preferences in UK and Ireland are
completely different. The people of Ireland prefer eating honey with most of the cuisines which
is not in case of people of UK. This is why, for smooth functioning of the company in Ireland,
BCH needs to add honey in its dishes and beverages. This makes the taste and preferences of the
people of both the countries different. The people of UK and Ireland both are becoming health
conscious so BCH will get an amazing opportunity to promote its drinks and dishes which are
made from healthy raw materials.
Technological: BCH is not much technologically advanced in UK but in order to make aware
most of the people in Ireland the company needs to spend a lot in this cut throat competition
world for remaining competitive. The company make use of technology in various HR processes
in UK but the major use of advanced technological tools will be in the process of marketing
which will help in reaching to most of the customers (Steel and et.al., 2018). The BSH must also
join hands with other companies for launching reusable cup with integrated payment technology
which is contact-less which will help the customers in Ireland for paying with the wave of their
cup. The processes in the coffee house must be integrated with technology so that the people of
Ireland can be easily attracted with the good and services of the coffee house.
Legal: This is must for the company to work under the legal framework which is set by the
government and judicial bodies of the country. The laws of UK and Ireland are completely
different. Bloomsbury Coffee House adheres to major laws of UK in order to function smoothly
but after expanding in Ireland, the company needs to follow the laws of Ireland so that there can
be no legal restrictions and the company can be legally safe (Shan and Haitao, 2020). There are
various laws in Ireland regarding the working conditions for the employees and also related to
their payment. The minimum wage which must be given to the employees is different in UK and
that in Ireland. The working hours for the people are also different in both the countries.
Therefore, it is must for BCH to adhere to the new laws of Ireland and change their way of
working which was in UK.
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Environmental: The climate is changing day by day which increases the awareness of the
people towards the environment and the sustainability. This becomes the foremost responsibility
of the company to provide the sustainable products and services. The Bloomsbury coffee house
is trying to become completely sustainable but BCH is not sustainable completely in UK as it
serves the coffee and food in plastic cups with plastic straws. The people in Ireland shows more
concern towards the environment so from starting, the company must make use of all the
sustainable practices and processes (Fry and et.al., 2017). BCH must also try to recycle the cups
and the dishes in which coffee and food is served. The company must also analyse measures
taken by the other competitors in order to impact the environment positively. This will give a
benchmark to the company so that it can gain competitive advantage and lead the competitors.
BCH must also ensure zero waste to landfill for reducing the energy consumption which will
help in increasing the goodwill of the company in the expanded country (Osano, 2019).
Entry mode Analysis
There are a lot of entry modes which can be used by Bloomsbury Coffee House to adapt
and make sure that the company is being able to have a good base in the market. Competition in
the market is very high and it is important to make sure that they take the right measure so that
the risk factor is going to reduce and make higher functioning and improvement. Foreign direct
investment, franchising, licensing, partnership, piggybacking, etc. which are existing in the
market for small businesses to be able to find the right channel to expand themselves so that
there are higher operations and working which is going to be there (Almond, 2017). Exporting
and licensing factors have to be existing so that the company is going to invest low and make
sure that there are right working and functioning which are taking place. Methods of working has
to be higher and make sure that expenses of working is going to be higher so that the company is
going to have the right working which is very important (Gorączkowska, 2020).
Alliances have other reducing and other risks are present so that there are higher problem
solving and problems to be existing so that there is going to be better competitors which are
present. Slow entry modes have to be present so that there is going to be better issues and
working which is going to be existing. Entity and local working has to be present so that the
employees are going to be better functioning (Gunawardena, Masudin and Jie, 2018). Maximum
control has to be existing negative working so that there is going to be higher regulatory.
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Operations and functioning needs to be existing so that there would be higher knowledge and
culture which the company would be able to gain. Home office is also a very important factor
which the company has to have so that there is going to be better operations. Production and
operations have to match the standards and demands of the clients so that there are higher
operations which is going to be present and that is going to make sure that there are right
operations which is present (Pisani and et.al., 2017). Decisions have to be match effective so that
the company is going to make sure the right skills and other factors are going to be existing for
the company to be able to expand in Iceland effectively.
Partnership is a great method which is going to be used by the company so that there are
higher functioning and improvement which the company is going to have so that the organization
would be able to have a good branding. Portfolio of the company is going to be stable and make
sure that there are right working and experience which can be implemented in it so that the
company would be able to have a stable working and performance which is a very important
aspect. International working is very important for the organization to have so that there is going
to be higher functioning (Sivarajah and et.al., 2020). Two heads of an organization are going to
get in confusion for the employees but this factor has to be improved so that the company would
be able to have the right working and functioning. Right capital and other factors have to be
present and borrowing of economic factor is not going to be a risk since the exchange of
knowledge is going to make sure that there are right working and functioning which is going to
be existing (Cassel, 2019).
Recommendation
Bloomsbury Coffee House is having a good working portfolio and value of the cafe is
present so that there are going to be higher functioning. Control and monitoring of the cafe on
the employees is present so that the company is going to have a stable working and functioning
which the company is going to have. Technology of the company has to be present so that the
company is going to have effective working and the company is going to make sure that they are
having stable customer base as well and good economic factor which the company is going to
have (Ahworegba, 2017). The company is expanding themselves in Iceland so that the company
is going to have a good placing and the customers are also going to be aware of the brand
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effective. The brand does not want to lose their importance and value in the market which has to
be well balanced so that the company is going to find it easier to be able to work effectively.
Control and foreign working is very important for the company to have so that there are
going to be effective working. Motivation in the employees has to be existing so that there is
going to be better functioning. Services and products of the company has to be well maintained
so that there are higher functioning and improvement so that there is going to be higher
operations. Workplace of Bloomsbury Coffee House is very well maintained so that there are
going to be higher operations and working which is going to be present. Company has to work
together and as one to make sure that there are right working and functioning which is present so
that the company is going to find it easier to be able to make the right comfort and working place
for all the workforce of the company have a stable working (Braslauskas, 2020). Profit margins
of the company have to be improved and make sure that they are running effectively so that the
company is going to find it cost friendly and have right investment factors as well so that there
are higher operations and expand easily in Iceland and further to different countries.
CONCLUSION
The competition in the market for cafes are increasing therefore the company has to
expand themselves and make a stronger branding for themselves which is going to be make sure
that there are going to be better functioning. From the above report it can also be analysed that
the company has to improve according to the trends and competition in the market is essential so
that the company is going to be having a good working. The company has to make sure that they
are having a good impression and customer base in the country so that they would be able to
expand and come in the competition with large businesses which already exist in the market. It is
important to make sure that there are right actions and improvements which are being taken so
that there are right working which is present.
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REFERENCES
Books and Journals
Ahworegba, A.H., 2017. The role of local context in headquarters–subsidiaries relationships: A
global analysis of the literature. Journal of East-West Business. 23(1). pp.71-103.
Almond, P., 2017. The persistence of, and challenges to, societal effects in the context of global
competition. In Making work more equal. Manchester University Press.
Barak, O., 2017. State expansion and conflict: In and between Israel/Palestine and Lebanon.
Cambridge University Press.
Braslauskas, J., 2020. Effective creative intercultural communication in the context of business
interaction: theoretical and practical aspects. Creativity studies. 13(1). pp.199-215.
Brown, K.F. and et.al., 2018. The fraction of cancer attributable to modifiable risk factors in
England, Wales, Scotland, Northern Ireland, and the United Kingdom in 2015. British
journal of cancer. 118(8). pp.1130-1141.
Cassel, D., 2019. Building a Treaty on Business and Human Rights: Context and Contours ed.
by Surya Deva & David Bilchitz. Human Rights Quarterly. 41(2). pp.497-508.
Ellis, M., 2018. Coffeehouse Sociability, Science and Public Life in John Hill’s ‘The Inspector’.
In Fame and Fortune (pp. 195-217). Palgrave Macmillan, London.
Fry, A. and et.al., 2017. Comparison of sociodemographic and health-related characteristics of
UK Biobank participants with those of the general population. American journal of
epidemiology. 186(9). pp.1026-1034.
Gorączkowska, J., 2020. Enterprise innovation in technology incubators and university business
incubators in the context of Polish industry. Oeconomia Copernicana. 11(4). pp.799-
817.
Gunawardena, T.D.V., Masudin, I. and Jie, F., 2018. Corporate social responsibility in supply
chains: the impact in the context of global supply chains. International Journal of
Business and Society. 19(3). pp.678-698.
Orestano, F., 2020. David Finkelstein, ed, The Edinburgh History of the British and Irish Press,
Volume 2. Expansion and Evolution, 1800–1900. Edinburgh, Edinburgh University
Press, 2020. Cahiers victoriens et édouardiens, (92 Automme).
Osano, H.M., 2019. Global expansion of SMEs: role of global market strategy for Kenyan
SMEs. Journal of Innovation and Entrepreneurship. 8(1). pp.1-31.
Pisani, N and et.al., 2017. How global is international CSR research? Insights and
recommendations from a systematic review. Journal of World Business. 52(5). pp.591-
614.
Shan, T. and Haitao, J., 2020. British colonial expansion through the Indian diaspora: the pattern
of Indian overseas migration. Cappadocia Journal of Area Studies. 2(1). pp.56-81.
Sivarajah, U and et.al., 2020. Role of big data and social media analytics for business to business
sustainability: A participatory web context. Industrial Marketing Management. 86.
pp.163-179.
Steel, N. and et.al., 2018. Changes in health in the countries of the UK and 150 English Local
Authority areas 1990–2016: a systematic analysis for the Global Burden of Disease
Study 2016. The Lancet. 392(10158). pp.1647-1661.
Wageman, S.B.F., 2017. Plowshares Coffee House: People, Music and Community (Doctoral
dissertation).
Online
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Bloomsbury Coffee House London, 2021. [ONLINE]. Available through: <
https://www.squaremeal.co.uk/restaurants/bloomsbury-coffee-house_4157 >
Bloomsbury Coffee House, 2021. [ONLINE]. Available through :<
https://www.bloomsburycoffeehouse.co.uk/>
The culture Trip, 2021. [ONLINE]. Available through :<
https://theculturetrip.com/europe/united-kingdom/england/london/articles/top-ten-
coffee-shops-in-bloomsbury/>
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