Global Business in Context

This report discusses the factors affecting global business environment and compares the UK and Botswana. It also provides an analysis of the most suitable entry mode for expanding into Botswana.

Global business in
Context

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Company Overview....................................................................................................................3
Comparison of UK and Borswana based on the factors affecting global business environment
.....................................................................................................................................................4
Entry Mode Analysis ..................................................................................................................7
RECOMMENDATION...................................................................................................................9
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Global Business environment is a broad area of consideration for businesses and
organisation dealing in multinational locations. The business environment is highly affected and
influenced by number of factors that are divided amongst internal and external terms. The
surroundings of an entity are significantly affected by interferences made by those business
factors existing (Bag, 2018). Thus, it is an essential task for businesses who are working in
global locations or are planning to move internationally with the objective of growth, expansion
and development. The present reports is carried on Rowlinson Knitwear a SME which was
founded in 1935 in United Kingdom and dealing in clothing industry offering school wear,
uniforms and related clothings for students. The present report is conducting discussion over the
company its global context, where the analysis of the business environment is placed in regards
to expansion of the organisation in BOTSWANA. At first a overview of the company is provided
with the reason why company is willing to move and expand to Botswana. Then different
external factors like Culture, Political etc. of the chosen country and UK are evaluated in relation
to Rowlinson Knitwear. Lastly, at the end few entry modes for Rowlinson Knitwear will be
evaluated for finding out the most suitable source of entry into Southern Africa market.
MAIN BODY
Company Overview
The Rowlinson Knitwear company is an medium sized organisation which deals in the
durable school and corporate uniforms. The company started its operation in 1935, located at
Stockport with employee size of 61. The company produces quality and efficient garments and
sells to independent retailers. Rowlinson has its values which defines and guides its operation.
The company's motto is trust, care and be better at the roles they play as an employer, partner
and manufacturer. The Rowlinson has been certified with various awards such as Best Employer
of the year, Workplace well being national awarded by StockPort in 2014 and 2015
consecutively. The Rowlinson is part of registered B-corp association. The B-Corp association is
provides the social and environmental certification to the profit organisations. This association
works on the standard for promoting transparency and accountable actions of business registered
under this. The companies who want to get registered under this have to pass and get the set

score limit to be certified under this. Rowlinson has greatly jumped from being an small sized to
medium sized business. The company has own the trust base of people and successfully carried
the business its current operation area. The journey of rising from being an small size to medium
sized helped in gaining the large share of customers trust. Being awarded consecutively has
raised the company motivation and success level (Gong and Kim, 2018). With reference to these
points Rowlinson decided to expand the operations internationally in Botswana, Southern Africa.
As Botswana, has largest young and working age population so it will be efficient to expand
footprints in this country.
Comparison of UK and Borswana based on the factors affecting global business environment
There are various macro environment factors that affect the international business
majorly. The thorough analysis of the macro factors should be done in order to achieve
effectiveness and efficiency in achieving organisational objectives. The detailed comparison of
UK and Borswana macro factors are as following. The analysis of macro factors of UK are as
follows;
Cultural : The UK is represented by the most working population and most educated population.
The Rowlinson is affected positively with the cultural and social factor of UK. As Rowlinson,
manufactures the uniforms for schools and corporate world (Chatterjee, 2017). The developed
and educated economy represents vast opportunities for Rowlinson. Rowlinson success is
because of majorly developed corporate and education sector. The consumers spending is also an
important factor in consideration of company operation. The UK Great GDP is representative of
the strong spending patterns of people. The Rowlinson profitability is result of UK strong
cultural and social factors. The UK invest majorly in health, education and research. The
invested amount in health is that the company working age population is huge which
complements to Rowlinson. The discipline in the corporate world of UK is majorly appreciable.
This discipline requires people to follow proper code of conduct and wear the proper dress which
is beneficial to the Rowlinson operations. Amid Coronavirus the spending pattern of people
changed majorly, and rising inflation also targetted the Rowlinson operation majorly.
Economic : The economic environment of any economy affects to an large extent. Based on UK
it is remarked by the high GDP, and diverse economy the provable foreign direct investment.
The Rowlinson affected with halt in Foreign investment. With increase in FDI's the avenues for

new option increases more and it affected the Rowlinson performance. The rising inflation and
unemployment with the spread of pandemic for around year affected the Rowlinson operations.
As the company was in due hard course to pay the wages and with every thing closed and online
education and travel and leisure industry closed affected the demand of uniforms largely. With
the change in work from home policy also affected the process of Rowlinson. This was tough
phase for Rowlinson to survive. The deceased tax rate is an advantage for the company to pay
tax and continue with increased savings. The import and export policy, visa issues taken by the
Trump government affect the production of Rowlinson(Jones and et. al., 2017). With Boris
Johnson Government and issue of vaccine everything needs to be on track soon for company
also.
Political : The political stability is very much necessary of any economy. The UK is being
remarked for the great political and strongest political stability. It has the modern parliamentary
and monarch system across every country. The Rowlinson is greatly bestowed to be in UK. The
positive impact to Rowlinson operations is the the stability in the rules of government. The great
allies of countries with other countries also has impacts the company positively. With the Brexit
the uncertainty in air is been created and Rowlinson production is also impacted as the supply is
made from Europe also. With the tension between both governments of UK and China also
halted the operations of Rowlinson. As the supply of labour and material is been affected by the
trade practices and agreements.
Legal : The Employment Act 1996 and Equality act 2010 guides the legal framework related to
the minimum pay, maternity leave, sick pay etc. The equality act structures the no discrimination
policy to be followed in the company. The Rowlinson follows the legal structure as laid down by
the government. The company employers being choice awards, workplace well being award
awarded by Stockport for continuous years. denotes the fair practices adopted in work practices
of company. The company is stringent to follow no discrimination and priories the employee
safety utmost (Kasemsap, 2016).
Technological : The UK is being topping chart always with its technological inventions. The
country invest hugely into the innovation and development field. The Rowlinson has an impact
of these operations. The company is being pace with the new developments in technology that
makes it work easy and hassle free. But the cost of automation affects the company operations

and processes. The company to be an effective in its operations and processes have to be in eye
for country's development only. The import cost of technology is being saved by the Rowlinson
by taking birth in hi tech and innovation economy (Nair and Salleh, 2017).
Whenever the company go for an expansion overseas the analysis of the macro factors
pertaining to that place must be done thoroughly as it helps in analysing the opportunities and
threats in international environment. As in option of Rowlinson is taking an decision to expand
its market globally in Botswana, Borswana. The analysis of macro factors pertaining to
Borswana is as follows;
Cultural : The Botswana poverty has reduced dramatically and rise in purchasing power shows
the strong social and cultural impact on people. The people in Borswana has the high
enterprising attitude. This may affect impact negatively the Rowlinson. The Borswana people
will be preferred to enter market freely than UK based. The amid depends on the relations of UK
government with Borswana government.
Economic : The rise of Botswana from an only to an developed economy is path lead by their
economic efforts. The country's agenda to become high income country by 2036 shows its
commitment of efforts towards development. The Botswana is known by the flourished diamond
and metal industry. With such strong economy the Botswana is making up market for other
industries also that will add to their success also. With the COVID pandemic the global demand
of diamonds fell which will open the doors of other industries and jobs. With this the success
path of Rowlinson process can be built (Nielsen, 2018). As the focus of government will be on
other industries and tax rates will be eased in order to attract the diverse industries.
Political : The Botswana has the democratic government base. The Botswana enjoys the
accreditation status of the anti corruption free country and improving ranks in the ease of doing
business suggests the fairness of country in continuing the business. Botswana have risen from
an desert to an developed economy suggest its strong and supportive political environment. But
with Brexit, the EU and UK relations have triggered and Borswana being the second preference
in terms of trade for UK can grab the opportunity and use to increase their trade base. The
Rowlinson can have the operations of stability and corruption free government (Ratten, Dana and
Ramadani, 2017).

Legal : The legal framework of UK and Borswana remains same largely. The practice of doing
business has VAT in their law. The Rowlinson may be benefited with the same legal structure.
As the stability in the operations can be continued with same legal framework. The
understanding of legal structure in global environment is necessary to carry the operations
efficiently.
Technological : The Botswana has the low technological innovations and budget. The
government there spends more on the development of existing industries and less on
technological advancements (Seyedghorban, Matanda and LaPlaca, 2016). The Rowlinson will
have great impact negatively of this factor as the technological advances makes the work easy
and efficient. The operations of the company will hamper if the due technology is not being
provided with. The expenses in importing have to beared out in up gradation of technology.
The Rowlinson can be benefited by expanding its business into Botswana. The Rowlinson have
to be cautious of the technology and political factors in order to be successful. As the legal,
economic and social factors are favourable enough. The company can even have the advantage
of decreased tax rates of Botswana. The Rowlinson can contribute majorly in making the
Botswana GDP. The incentives and subsidies of Botswana Government can be availed by
efficiently proving on those success points (Shankar and Datta, 2018). The Rowlinson can take
the advantage of Brexit and can help in increasing the trade majorly with that of UK. The
company can have access to ease in economies of scale by providing employment and other
facilitates to the residents of Botswana. The company can help the Botswana in reaching to its
motto of high upper class economy. The Rowlinson can even set up the manufacturing and
research hub that will help in development of company also and country also simultaneously.
Entry Mode Analysis
The entry mode analysis is a method of expanding the business internationally. There are
various modes of expansion overseas. The most suitable and profitable mode of entry for
expanding into Botswana for Rowlinson is as follows;
Partnerships and Strategic Alliances

While expansion in the international operations it is suitable to go for the partnership option. As
the strategic alliance so created with local firm helps in leveraging the efficient operations with
its proficient knowledge of domestic culture and market opportunities. Advantage : By creating partnership the Rowlinson can be benefited by sharing the
reduced risk and synergy will be created out of alliances so created. Disadvantages : The Rowlinson may face the problem of integrating two different culture
resulting out of alliances. The partnership may affect negatively if the partners motive
differed in between.
Green Field Venture
The Green field venture is an method in which the the company open new wholly owned
subsidiary. It is just like the foreign direct investment in other country with scratch the operations
are set up in the former country of expansion (Sharma, Gupta and Acharya, 2020). Advantages : The Rowlinson can be befitted by owing the control of operation solely.
The great advantage is that the company can even have the advantage of economies of
scale by operating in the other country. The company will have greater advantage by
providing employment to the locals. Disadvantages : Rowlinson have to incur the large cost in setting up from scratch. The
trade restrictions are also high in this case. The success of operations is related with the
duration taken to set up the operations.
Licensing and Franchising
The Licensing is an agreement in which the company gives the access to its trademarks,
patents, copyrights and technology etc. for fee to other person. Franchising is an agreement
where the company allows the other party to continue operation by using its brand name and
logo. But under franchising the quality of products and services have to be met to that of
franchisor. Advantages : In licensing and franchising the Rowlinson can be benefited financially to
an large extent. The amount of investment required is low as compared to any other from

of expansion. The risk factor attached with mode is also low as compared to any other
form.
 Disadvantage : This is an great threat in the form when the licensee or franchisee turns
into rival. There is fear of leaking out the secret of the company. Rowlinson can be in
threat if there secret turns against them only.
Thus, Rowlinson as an mode of expansion can go for the Partnership and licensing and
franchising option. Through partnership option the core competencies can be combined to form
the synergy in efforts. The Rowlinson needs to be cautious while selecting partner that the
alliance so selected should add value to the organisational capabilities and capacities. The partner
selection should be on the basis of the same industry or the same value chain, that will
complement to the functions of an organisation. If alliance so created if no value is added to
other partner they may break it. The partner with same motive and interest will add value in
efficiency. By expanding through licensing and franchising will also prove beneficial to
Rowlinson. As, in licensing and franchising the risk factor and cost of investment is very low as
compared to any other form of expansion. The licensing and franchising will also give the
advantage of degree of control and flexibility to control the operations efficiently. By this option,
the owner can concentrate effectively on the operations as the mode of success to make
international subsidy effective lies majorly in hands of licensee and franchisee (Sullivan, 2018).
RECOMMENDATION
In regards to the discussion, evaluation and findings in the report in the above section,
Rowlinson Knitwear can improvise and develop further. In regards to the same some
recommendations or suggestions to the business while moving to new market are presented
below.
The Rowlinson Knitwear should focus on providing training to employees to handle the
operation's effectively. The company can hire the host country nationals also that will help them
with their diverse knowledge of local environment. The company needs to have develop the
strong value chain that can help them in their efficient production process. The Rowlinson needs
to have the strong marketing department that will help in promoting the business aggressively in
initial phase to flourish. The company needs to be an active towards the environmental role that

will help in gaining the support of public and government at large. The keen and accountable
actions will help the company to grow at large pace and efficiently.
CONCLUSION
The presented report above conducts discussion over the surroundings of an organisation
in relation to influence and emphasis on global aspect which concludes the productiveness and
support provide to organisation by taking over the dissect. At first in the assignment the reason
behind the company is expanding to new EU location is found out and elaborated which is the
company is willing to move further as in recent years it has been attaining huge success and now
it wish to be more recognise and expand its operations for growth. Moving along external factors
are analysed for both the countries that is UK and EU for seeking pre knowledge and also getting
to some basis favourable as well as unfavourable elements which will be affecting the entity in
its plans.

REFERENCES
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Shankar, A. and Datta, B., 2018. Factors affecting mobile payment adoption intention: An Indian
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Sharma, M., Gupta, R. and Acharya, P., 2020. Prioritizing the critical factors of cloud computing
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Online Source
Rowlinson Knitwear, 2020 [Online] Available through<
https://www.greatplacetowork.co.uk/workplace/item/2635/Rowlinson+Knitwear/>
Rowlinson, 2020 [Online] Available through <https://www.rowlinson-knitwear.com/>